Rb Global, Inc. · TSX:RBA
Rb Global — Q3 2023 Earnings Presentation
17 slides from Rb Global's earnings presentation, Nov 9, 2023
Slide 1: Third Quarter 2023 Financial Results
Third Quarter 2023 Financial Results © 2023 RB Global, Inc. | All Rights Reserved 1
Slide 2: Forward Looking Statements
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”), including, in particular, statements regarding future financial and
Slide 3: Key Messages
Key Messages Focus on execution drove strong flow through to Adjusted EBITDA from GTV growth Launched three foundational values to the company: ▪ One Team - All In ▪ All About the Customer ▪ Easy to Do Business With Taking decisive steps to improve consistency in our automotive sector © 2023 RB Glob
Slide 4: Significant Progress on Integrations
Significant Progress on Integrations Cost Synergies Land Strategy Realized $12 million cost synergies in Strategically and opportunistically the third quarter purchasing property in regions susceptible to catastrophes or where Actioned $51 million in annualized the market opportunity makes strong ru
Slide 5: Gross Transaction Value
Gross Transaction Value Sector Growth* 40% 28% 22% 17% 11% 10% 7% 7% Automotive Commerical Construction & Transportation Other Total Lot volume GTV * Reported gross transaction value in the current period compared to pro forma combined gross transaction value in the year-ago period • 17% YoY increas
Slide 6: Service Revenue and Take Rate
Service Revenue and Take Rate Service Revenue Service Revenue Take Rate $774 M 19.4% 20.0% $645 M $105 M $82 M $458 M $373 M $190 M $211 M 3Q 22* 3Q 23 3Q 22* 3Q 23 Commissions Buyer Fees Marketplace Services * Pro forma combined • Service revenue increased 20% YoY on a pro forma combined basis on h
Slide 7: Inventory Sales Revenue, Return and Rate
Inventory Sales Revenue, Return and Rate Inventory Sales Revenue Inventory Return and Rate $264 M $246 M $25 M $23 M 30.0% 25.0% $20 M $16 M 20.0% $15 M 15.0% $10 M 8.7% 10.0% 6.5% $5 M 5.0% $0 M 0.0% 3Q 22* 3Q 23 3Q 22* 3Q 23 Return Rate * Pro forma combined • Inventory sales revenue decreased 7% Y
Slide 8: Adjusted EBITDA and Adjusted Diluted EPS
Adjusted EBITDA and Adjusted Diluted EPS Adjusted EBITDA Adjusted Earnings Per Share $0.72 $0.53 3Q 22 3Q 23 Adjusted EBITDA increased 32% YoY when compared to the combined Adjusted EBITDA of IAA and Adjusted EBITDA Ritchie Bros. for the year-ago period, on strong flow through Adjusted EPS increased
Slide 9: Balance Sheet & Liquidity
Balance Sheet & Liquidity Targeting to 2.0x by the end of the first quarter of 2025 17.7x 3.2x 2.4x 2.0x Debt / Net income Adjusted Net Debt Adjusted Net Debt 24 Month Post Close Target / TTM Adjusted EBITDA / TTM Combined Adjusted EBITDA • Expect interest expense to be between $65 million to $69 mi
Slide 10: Key Thoughts As We Look Ahead
Key Thoughts As We Look Ahead Currently expecting growth of high single-digit to Gross Transaction Value low teens in the fourth quarter of 2023 on a pro forma combined basis Selling, General and Currently expecting SG&A, exclusive of share base payments and other adjusting items, to be Administrati
Slide 11: Appendix
Appendix • Gross Transaction Value Overview • Revenue Overview • Expense Categories • How to Compute EPS Under Two-Class Method - Illustrative • Reconciliation of IAA’s Reported Adjusted EBITDA to RB Global Definition of Adjusted EBTIDA © 2023 RB Global, Inc. | All Rights Reserved 11
Slide 12: Gross Transaction Value Overview
Gross Transaction Value Overview Automotive Includes consumer automotive vehicles Commercial Construction and Transportation Includes heavy equipment such as excavators, dozers, lift and material handling, vocational and commercial trucks and trailers Other Includes agriculture, oil and gas, and gov
Slide 13: Revenue Overview
Revenue Overview Historically, Ritchie Bros. was about: Fee collected on services GTV from the Seller Commissions seller for acting as an agent for 60% Commissions, 40% Buyer Fees consigned assets IAA was about: 20% Commissions, 80% Buyer Fees Service Buyer Fees Fee collected from the buyer as part
Slide 14: Expense Categories
Expense Categories Costs of Services • Includes yards that support weekly auctions, such as the IAA’s yards and Ritchie Bros.’ GovPlanet locations • Costs of services also includes any direct costs incurred to earn auction revenue or marketplace services • Includes the cost of our inspectors for auc
Slide 15: How to Compute EPS Under Two-Class Method - Illustrative
How to Compute EPS Under Two-Class Method - Illustrative Illustrative Quarter 20XX Notes Numerator: Net income attributable to controlling interests XX Less: Dividends on Preferred Shares $6,668,750 Quarterly 5.5% dividend on $485 million of Preferred Shares (assuming o/s for full quarter) Less: All
Slide 16: Reconciliation of IAA's Reported Adjusted EBITDA to RB Global Definition
Reconciliation of IAA’s Reported Adjusted EBITDA to RB Global Definition of Adjusted EBITDA (in U.S. dollars in millions) Quarter ended October 2, 2022 Net income $ 50.3 Add: income taxes 17.4 Add: interest expense, net 13.3 Add: depreciation & amortization 25.2 EBITDA 106.2 Add back non-GAAP adjust
Slide 17: Reserved 17
© 2023 © 2023 RB Global, RB Global, Inc.Rights Inc. | All | All Rights Reserved 17 Reserved