Rb Global, Inc. · TSX:RBA
Rb Global — Ritchie Bros. Auctioneers — Q3 2018 Earnings Presentation
24 slides from Rb Global's earnings presentation, Nov 9, 2018
Slide 1: Q3 2018 Earnings Conference Call
February 27, 2018
Slide 2: Forward looking statements and non-GAAP measures
Forward looking statements and non-GAAP measures Caution Regarding Forward-Looking Statements This presentation contains forward-looking statements and forward-looking information within the meaning of applicable US and Canadian securities legislation (collectively, “forward-looking statements”), in
Slide 3: Opening Remarks & Review of the Quarter
Opening Remarks & Review of the Quarter Ravi Saligram, Chief Executive Officer
Slide 4: Third Quarter Summary
Third Quarter Summary GTV Total Revenues Agency Proceeds Diluted EPS (Non-GAAP) Reported Adjusted (Non-GAAP) +2% +8% +13% +133% +100% Q3 Highlights ▪ Online auction momentum; 16% GTV growth ▪ Tight supply conditions continue to persist ▪ Strong Inventory sales performance in Europe ▪ Live on site GT
Slide 5: Third Quarter Auction Highlights
Third Quarter Auction Highlights 60% of live industrial auctions posted year-on- year growth comps across major geographies 16% Online Marketplaces GTV growth Los Angeles, CA Edmonton, Alberta Moerdijk, NLD US$23 million 85% growth US$60 million 5% growth (In CAD$) US$39 million 16% growth Denver, C
Slide 6: Q3 2018 Business & Financial Review
Q3 2018 Business & Financial Review Sharon Driscoll, Chief Financial Officer 6
Slide 7: Q3 Consolidated Financial Performance Overview
Q3 Consolidated Financial Performance Overview ▪ All figures unadjusted unless otherwise noted. (In $US Millions except EPS) GROSS TRANSACTION TOTAL AGENCY ADJUSTED DILUTED VALUE REVENUES PROCEEDS OPERATING ADJUSTED (GTV) (non-GAAP) INCOME EPS (non-GAAP) (non-GAAP) 3Q18 3Q17 3Q18 3Q17 3Q18 3Q17 3Q18
Slide 8: Auctions and Marketplaces Segment – Agency Proceeds
Auctions and Marketplaces Segment – Agency Proceeds ▪ Auctions and Marketplaces Agency Proceeds rate (non-GAAP) increased 110 basis points to 13.9% due to continued strength in pricing and contributions from partial fee harmonization A&M Agency Proceeds A&M Agency Proceeds Rate % In US$,(000) 13.9%
Slide 9: Other Services
Other Services ▪ Overall other services Revenues improved 8%, other agency proceeds improved 40% ▪ RBFS Revenues delivered 40% growth in the quarter ▪ RBFS Funded Volume improved 32% ▪ Mascus delivered revenue growth of 15% RBFS RBFS Mascus Revenue Funded Volume Revenue In Millions USD In Millions U
Slide 10: Costs of Services / SG&A
Costs of Services / SG&A ▪ Total Revenue growth of 8% / Agency Proceeds growth of 13% outpacing SG&A growth of 4% ▪ 3Q18 SG&A leverage – roughly 500 basis point rate improvement (SG&A as a % of Agency Proceeds) vs. 3Q17 ▪ Costs of Services decreased 1% primarily due to fewer live auctions in the qua
Slide 11: Balance Sheet & Liquidity Metrics
Balance Sheet & Liquidity Metrics 3Q 2018 Balance sheet and liquidity metrics (all unadjusted unless otherwise noted) TTM Agency Adjusted Net Operating Proceeds Capex Debt/ TTM Return On Free Cash Flow Rate Adjusted EBITDA Invested Capital (non-GAAP) (non-GAAP) (non-GAAP) (non-GAAP) 3Q18 3Q17 3Q18 3
Slide 12: Strategic & Operational Update
Strategic & Operational Update Ravi Saligram, Chief Executive Officer 12
Slide 13: Third Quarter Operational Update
Third Quarter Operational Update Executing our multi-channel strategy ▪ Full operation of non- ▪ Double-digit Q3 growth ▪ ▪ Q3 online GTV growth; Global CAT alliance volume rolling stock and Tuesday up in Q3 continuing momentum ▪ Driving new customer online auction for General ▪ Clear focus on drivi
Slide 14: Moving Upstream – Introducing RB Asset Solutions
Moving Upstream – Introducing RB Asset Solutions ▪ Full service asset disposition solution for OEM, OEM Dealers and other large enterprises ▪ RBAS provides SaaS-based software, data and dedicated services to help customers optimize their disposition process ▪ Fulfilling our mission to become a trust
Slide 15: Q4 Focus
Q4 Focus ▪ Leverage large loyalty customer base and drive new customer acquisition Cumulative 2013 – 2017 RBA Live Auction Customer GTV Mix Give us a try, and get 50% off our commission. Right now, Loyalty Acquisition for a limited time, first-time sellers receive 50% off our commission. That’s up t
Slide 16: Q&A Members of the RBA Management Team
Q&A Members of the RBA Management Team 16
Slide 17: Appendix
Appendix DELIVERING CHOICE
Slide 18: Agency proceeds and adjusted operating income
The following table presents our agency proceeds (non-GAAP measure) and agency proceeds adjusted operating income rate (non-GAAP measure) results for the three and nine months ended September 30, 2018 and 2017, as well as reconciles those metrics to total revenues and operating income margin, which
Slide 19: Adjusted net income attributable to stockholders
The following table presents our adjusted net income attributable to stockholders (non-GAAP measure) and diluted adjusted EPS attributable to stockholders (non-GAAP measure) results for the three and nine months ended September 30, 2018. and 2017. as well as reconciles those metrics to net income at
Slide 20: Adjusted EBITDA and agency proceeds adjusted EBITDA rate
The following table presents our adjusted EBITDA (non-GAAP measure) and agency proceeds adjusted EBITDA rate (non-GAAP measure) results for the three and nine months ended September 30, 2018 and 2017. as well as reconciles those metrics to net income and net income margin. which are the most directl
Slide 21: Adjusted EBITDA and adjusted net debt/adjusted EBITDA
The following table presents our adjusted EBITDA (non-GAAP measure) and adjusted net debt/adjusted EBITDA (non-GAAP measure) results as at and for the 12 months ended September 30, 2018 and 2017. as well as reconciles those metrics to debt. cash and cash equivalents, net income. and debt as a multip
Slide 22: A&M agency proceeds and agency proceeds rate
The following table presents our A&M agency proceeds (non-GAAP measure) and A&M agency proceeds rate (non-GAAP measure) results for the three and nine months ended September 30, 2018. and 2017. as well as reconciles those metrics to A&M total revenues and A&M revenue rate, which are the most directl
Slide 23: Adjusted net income and adjusted dividend payout ratio
The following table presents our adjusted net income attributable to stockholders (non-GAAP measure) and adjusted dividend payout ratio (non-GAAP measure) on a trailing 12-month basis ended September 30. 2018 and September 30. 2017. and reconciles those metrics to net income attributable to stockhol
Slide 24: Adjusted net income and ROIC
The table on the following page presents our adjusted net income attributable to stockholders (non-GAAP measure) and ROIC (non-GAAP measure) results as at and for the 12-month period ended September 30. 2018 and 2017. and reconciles those metrics to net income attributable to stockholders. long-term
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