Rb Global, Inc. · TSX:RBA
Rb Global — Ritchie Bros. Auctioneers — Q1 2019 Earnings Presentation
24 slides from Rb Global's earnings presentation, May 10, 2019
Slide 1: Q1 2019 Earnings Review and Update
Q1 2019 EARNINGS REVIEW AND UPDATE ESE RPA rl RITCHIE BROS.
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: Performance Highlights
Performance Highlights GROSS TRANSACTION DILUTED (TTM) FREE TOTAL REVENUE VALUE (in millions) EPS CASH FLOW Non-GAAP (in billions) (in millions) $1.17 +1.2% $303.4 +17% $0.17 +6% $117 +170% ▪ FX headwinds: on a constant currency basis, Gross Transaction Value +3% ▪ Live on site GTV flat ; Online GTV
Slide 5: Trailing quarter price inflation trends for Q1 '19 vary depending on the asset category
Trailing 4 quarter price inflation trends for Q1 ‘19 vary depending on the asset category ADT prices show annualized Excavator prices show zero Loader prices continue their inflation continuing in Q1 ’19 annualized inflation Q1 ‘19 declines begun in Q4 ’18 Positive Price Inflation Positive Price Inf
Slide 6: Age of Equipment Review
Age of Equipment Review • Overall, the age of equipment sold has 3-5 yrs. old: 24.7% of GTV increased over the last 3 years. 3-5 yrs. old: 25.3% of GTV Equipment aged 6+ years made up 58% of GTV in 2016 and has gone up to 66% in 2019 • In 2019, 24.7% of equipment is in the “sweet spot” which is down
Slide 7: Auction Highlights
Auction Highlights 2019 GTV Mix Live On site Auctions Online Marketplaces 17.3% 48% of live industrial 9% Online Marketplaces auctions posted year- 82.7% GTV growth led by MPE, on-year growth comps GOV growth Live Onsite Online Marketplaces Live Auction Performance Live Auction Notes Online Marketpl
Slide 8: Network Effects
Network Effects Our Channel Diversification Is Starting To Generate Tangible Network Effects ITEM DETAIL • Portable Car Crusher • Purchased on MPE on April 4, 2019 Example 1 • 7 offers; 10 watchers BUYER INFORMATION • Auto recycler located in Michigan • Registered on Ritchie Bros. on February 13, 20
Slide 9: Q1 2019 Financial Review
Q1 2019 Financial Review Sharon Driscoll, Chief Financial Officer 9
Slide 10: Consolidated Performance
Consolidated Performance All figures unadjusted unless otherwise noted. (In $US Millions except EPS) INVENTORY SERVICE TOTAL OPERATING NET SALES REVENUE REVENUE INCOME INCOME REVENUE $172.4 -2% $131.1 +56% $303.4 +17% $33.6 +2% $18.2 +6% • Total service • Total inventory sales • Increase driven by •
Slide 11: Service, Inventory and Total Revenue Growth
Service, Inventory and Total Revenue Growth In 1Q19 Inventory sales growth contributed entirely to Total revenue growth as Service revenue growth declined Reported Basis Like for Like 56% 43% 45% 34% 30% 24% 22% 22% 17% 18% 17% 11% 11% 8% 8% 5% 3% Pre-IronPlanet -1% -2% -6% -8% -22% -24% -28% -31% -
Slide 12: Auctions & Marketplaces – Service Revenue
Auctions & Marketplaces – Service Revenue ▪ The decline in service revenue resulted from a decrease in commissions 2019 by region revenue attributable to lower price realization on guarantee contracts $20,694 and a decrease in the volume of straight commission contracts. $19,768 ▪ Fee revenue increa
Slide 13: Auctions & Marketplaces – Inventory sales revenue
Auctions & Marketplaces – Inventory sales revenue 2019 by region A&M INVENTORY SALES REVENUE $200 15.0% 11.8% 11.2% $150 $59,328 7.3% 8.1% 10.0% 6.6% $100 $67,944 $158 $131 5.0% $50 $84 $94 $84 ▪ Inventory sales revenue $3,785 increased 56% primarily $- 0.0% US Canada Int'l 1Q18 2Q18 3Q18 4Q18 1Q19
Slide 14: Costs of Services / SG&A
Costs of Services / SG&A ▪ Costs of services declined 2%; favorable considering GTV and lot growth ▪ SG&A declined 2% driven by continued cost control discipline and lapping higher share unit expenses in 1Q2018, partially offset by continued investments to support growth priorities COSTS OF SERVICES
Slide 15: Balance Sheet & Liquidity Metrics
Balance Sheet & Liquidity Metrics 2019 Balance sheet and liquidity metrics (all unadjusted unless otherwise noted) Adjusted Net TTM Operating Debt/ TTM Return On Capex Spend Free Cash Flow Adjusted EBITDA Invested Capital (non-GAAP) (non-GAAP) (non-GAAP) 1Q19 1Q18 2019 Capex Range 1Q19 1Q18 1Q19 1Q1
Slide 16: Strategic & Operational Update
Strategic & Operational Update Ravi Saligram, Chief Executive Officer 16
Slide 17: Multi-channel Growth Strategy
Multi-channel Growth Strategy Protect, Penetrate, Partner ….not just auctions REVENUE GENERATION SEGMENTS UPSTREAM MIDSTREAM AUCTION Seller Segments OEM & Dealers / Rental / Brokerage / Private Sales End Users Strategic Accounts RBA Solutions D2D CAT Alliance Go-To- N.A. Strategic Accounts N.A. Stra
Slide 18: SAGE - Sales Activity Generation Engine
SAGE - Sales Activity Generation Engine ▪ Launching in 2H 2019, SAGE gives sales teams the tools CATALYSTS to succeed in a multi-channel environment, regardless of supply or market conditions ACTIVITIES PIPELINE ▪ Activity & behavior focused, correlating to improved outcomes ▪ Multi channel and cust
Slide 19: Key Takeaways
Key Takeaways Overall we operated well in the first quarter 1 - Continue to be confident about 2019 - 3 Value Creation 2 Q2 Focus on at-risk valuations 4 Platform driving tangible network effects 19
Slide 20: Q&A Members of the RBA Management Team
Q&A Members of the RBA Management Team 20
Slide 21: Appendix
Appendix DELIVERING CHOICE
Slide 22: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures 22
Slide 23: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures 23
Slide 24: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures 24
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