Ritchie Bros. Auctioneers Inc. reported the following results for the fourth quarter and full year ended Dec. 31, 2020.
Net income attributable to stockholders decreased 5 percent to $48.9 million, compared to $51.6 million in Q4 2019. Adjusted net income attributable to stockholders (non-GAAP measures), which excludes $5.2 million of acquisition-related costs ($3.9 million net of tax) related to the acquisition of Rouse Services LLC, and $1.5 million current income tax expense related to an unfavorable adjustment to reflect final regulations published regarding hybrid financing arrangements, increased 13 percent to $54.3 million as compared to $48.2 million in Q4 2019.
Diluted earnings per share (EPS) attributable to stockholders decreased 6 percent to $0.44 per share in Q4 2020 compared to $0.47 per share in Q4 2019. Diluted adjusted EPS attributable to stockholders (non-GAAP measures), which excludes adjusting items, increased 11 percent to $0.49 per share at Q4 2020 compared to $0.44 per share in Q4 2019.
Consolidated results:
- Total revenue in Q4 2020 increased 15 percent to $383.4 million as compared to Q4 2019. Service revenue in Q4 2020 increased 6 percent to $231.7 million as compared to Q4 2019. Inventory sales revenue in Q4 2020 increased 33 percent to $151.8 million as compared to Q4 2019
- Total selling, general and administrative expenses (SG&A) in Q4 2020 increased 13 percent to $108.3 million as compared to Q4 2019
- Operating income in Q4 2020 increased 2 percent to $72.9 million as compared to Q4 2019
- Adjusted operating income*(non-GAAP measures) in Q4 2020 increased 16 percent to $78.1 million as compared to Q4 2019
- Net income in Q4 2020 decreased 5 percent to $48.9 million as compared to Q4 2019
- Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization* (EBITDA) (non-GAAP measure) in Q4 2020 increased 12 percent to $98.5 million as compared to Q4 2019
- Cash provided by operating activities was $257.9 million for 2020
Auctions & Marketplaces segment results:
GTV in Q4 2020 increased 5 percent to $1.4 billion as compared to Q4 2019.
A&M total revenue in Q4 2020 increased 17 percent to $348.5 million as compared to Q4 2019. Service revenue in Q4 2020 increased 7 percent to $196.7 million as compared to Q4 2019, Inventory sales revenue in Q4 2020 increased 33 percent to $151.8 million as compared to Q4 2019
Other Services segment results:
- Other Services total revenue in Q4 2020 increased 2 percent to $35.0 million as compared to Q4 2019
- RBFS revenue in Q4 2020 increased 10 percent to $9.1 million as compared to Q4 2019
Other Company development
On December 8, 2020, the Company acquired Rouse, a privately held company that provides data intelligence and performance benchmarking solutions for a fair value of approximately $275 million
Full year highlights
Net income attributable to stockholders for 2020 increased 14 percent to $170.1 million compared to $149.0 million in 2019. Adjusted net income attributable to stockholders (non-GAAP measure), which excludes $7.8 million income tax expense related to an unfavorable adjustment to reflect final regulations published regarding hybrid financing arrangements, $5.2 million of acquisition-related costs ($3.9 million net of tax) related to the acquisition of Rouse, and $4.3 million ($3.2 million net of tax) of severance costs, increased 27 percent to $185.0 million in 2020 as compared to $145.6 million in 2019. Diluted EPS attributable to stockholders increased 13 percent to $1.54 from $1.36 per share. Diluted adjusted EPS attributable to stockholders* (non-GAAP measure), which excludes adjusting items, increased 26 percent to $1.68 per share in 2020 as compared to $1.33 per share in 2019.
Consolidated results:
- Total revenue increased 4 percent to $1.4 billion as compared to 2019. Service revenue increased 8 percent to $871.6 million as compared to 2019. Inventory sales revenue decreased 2 percent to $505.7 million as compared to 2019
- Total SG&A increased 9 percent to $417.5 million in 2020 as compared to 2019
- Operating income increased 18 percent to $263.2 million as compared to 2019
- Net income increased 14 percent to $170.4 million as compared to 2019
- Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)(non-GAAP measure) increased 20 percent to $353.5 million as compared to 2019
- Cash provided by operating activities was $257.9 million for the year ended December 31, 2020
Auctions & Marketplaces segment results:
- GTV increased 5 percent to $5.4 billion compared to 2019
- A&M total revenue increased 4 percent to $1.2 billion as compared to 2019. Service revenue increased 9 percent to $740.0 million as compared to 2019. Inventory sales revenue decreased 2 percent to $505.7 million as compared to 2019
Other Services segment results:
- Other Services total revenue increased 5 percent to $131.6 million as compared to 2019
- RBFS revenue increased 12 percent to $32.2 million as compared to 2019
“We delivered a solid fourth quarter with a 5 percent increase in GTV contributing to an 18 percent growth in operating income for the full year,” the company reports.
“2020 was an unprecedented year as the COVID-19 pandemic had a devastating impact on public health while creating global economic uncertainty. I am proud of the technology driven innovations our teams implemented to help customers leverage our omni-channel platform while keeping our health protocols a top priority,” says Ritchie Bros CEO Ann Fandozzi.
“Uncertainty in the fourth quarter, driven by new COVID shut-downs and turbulent U.S. election, resulted in consigners taking a wait and see approach. We continue to focus on things that drive long term value: innovating and leveraging technology to enhance customer experience, optimizing operating cost and driving execution against our strategic pillars,” Fandozzi says.
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