Canada's Magazine for Financing & Leasing Executives

December 23, 2016

Ritchie Bros. completes final auctions of 2016

  • $4.3 billion of equipment was sold by Ritchie Bros. in 2016

  • $2.1 billion of equipment sold to online buyers, 49 per cent of total sales

  • 17 per cent+ growth in equipment sold through EquipmentOne – Ritchie Bros.' online marketplace

  • $107.2 million returned to shareholders through dividends and share repurchases during 2016

(All figures are presented in U.S. dollars, unless otherwise noted)

VANCOUVER -- Ritchie Bros. Auctioneers Incorporated, the world's largest industrial auctioneer, sold approximately $4.33 billion of equipment through 356 unreserved auctions and its online equipment marketplace during 2016. This is a new annual record for the Company, and represents a two per cent increase in gross auction proceeds (GAP) compared to 2015.

"During 2016 we made strategic investments and acquisitions to better position our business for future growth, including the addition of an equipment sales listing offering, obtaining full ownership of Ritchie Bros. Financial Services, key bolt-on acquisitions to bolster our strength in certain regions and sectors, and the announcement of our impending acquisition of IronPlanet. All of these initiatives have built a stronger platform for our customers and shareholders as we expand our service offering and the solutions we provide equipment sellers.

"Mr. Saligram continued: "The two percent GAP growth we recorded this year was negatively affected by lower equipment values relative to last year, though lot volume, buyers, consignors and registered bidders all grew substantially from 2015, indicating strong operational growth. Lot volumes grew nearly 13 per cent, the number of buyers and consignors grew by 12 per cent, and the number of registered bidders grew by eight per cent. Regionally, our Canadian business led growth, and achieved yet another record year."

During the fourth quarter of 2016, the Company generated gross auction proceeds of $1.0 billion, a decrease of nine per cent compared to the fourth quarter GAP achieved last year. On a constant currency¹ basis, GAP declined 8.5 per cent during the fourth quarter of 2016 compared to the fourth quarter of 2015. As previously discussed on Ritchie Bros.' Q3 2016 earnings call, auction timing differences did affect the quarter, with both the fall Montreal and Columbus auctions of 2016 occurring in the third quarter this year, rather than in the fourth quarter as they did in 2015.

Ritchie Bros. conducted its final unreserved auction of 2016 on Wednesday, December 21 in St. Louis, Missouri. The Company plans to release its full audited financial results for 2016 before market open on February 20, 2017.

Largest year ever in Canada

Ritchie Bros. sold more than CA$1.7 billion (US$1.3+ billion) of equipment and trucks in Canada during 2016 – a 6 per cent increase from 2015, and a new record for the Company's Canadian operations. A number of other Company records were broken in Canada this year, including:

  • On March 14 -15, 2016, Ritchie Bros. held its largest-ever Grande Prairie, Alberta auction, selling more than CA$62 million (US$46+ million) of equipment on behalf of 250+ consignors. The two-day auction attracted 7,150+ registered bidders, which was also a new site record.
  • On March 30, 2016, Ritchie Bros. held its largest-ever 'on-the-farm' offsite agricultural auction, selling more than CA$24 million (US$19+ million) of equipment and real estate from a consignor's farm in Bonanza, Alberta.
  • The first ever 5-day auction in Canada, held in Edmonton, AB, April 26 – 30, 2016. This massive CA$240+ million (US$191+ million) auction was Ritchie Bros.' largest auction ever held in Canada, and the second largest in the Company's history. The sale attracted more than 16,700 bidders from 55 countries, and sold over 10,200+ lots. 84 per cent of the assets sold in this auction went to Canadian buyers, including 46 per cent sold to buyers within the province of Alberta.
  • On July 21-22, 2016, Ritchie Bros. held its first two-day Lethbridge, AB auction, selling CA$24+ million (US$18+ million) of equipment and other assets – a new record for the site.
  • On September 28-29, 2016, Ritchie Bros. sold more than CA$39 million (US$30+ million) of equipment and other assets at its auction in Toronto, ON. This was largest auction ever held at the Toronto auction site, and the second time in 2016 the site set new sales records.



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