Ritchie Bros. reported net income attributable to stockholders decreased 2 percent to $53 million for the second quarter ended June 30, 2020, compared with $54 million in Q2 2019.
“I am proud to see the resilience, creativity and resolve demonstrated by our employees and customers. It is their perseverance and professionalism that has driven our strong second quarter results as we pivoted to 100 percent online auctions,” says Ritchie Bros. CEO Ann Fandozzi.
Total revenue in Q2 2020 decreased 1percent to $389.1 million as compared with Q2 2019. Operating income in Q2 2020 increased 14 percent to $88.8 million as compared with Q2 2019.
“We are encouraged by the strength of our business performance and the momentum we have exiting the second quarter. Our leading platform, global reach and the investments we’ve made in digital have served us well through these uncertain times,” Fandozzi says.
“Market conditions continue to be strong and we remain focused on our priorities of maintaining the health and safety of our employees and customers, providing our customer with exceptional service, and preserving our strong financial position to the benefit of our shareholders,” she says.
Service revenue in Q2 2020 was $234.1 million, flat compared with Q2 2019. Inventory sales revenue in Q2 2020 decreased 2 percent to $154.9 million as compared with the same period last year. Total selling, general and administrative expenses in Q2 2020 increased 3 percent to $100.6 million as compared with Q2 2019.
Regarding Ritchie Bros.’ auctions and marketplaces segment, the company reported gross transaction value (GTV) in Q2 2020 was flat at $1.5 billion compared with Q2 2019. GTV represents total proceeds from all items sold at the Company’s live on site auctions and online marketplaces.
Auction and marketplaces total revenue in Q2 2020 decreased 1 percent to $354.6 million as compared with Q2 2019. Service revenue in Q2 2020 decreased 1 percent to $199.6 million compared with last year and inventory sales revenue in Q2 2020 decreased 2 percent to $154.9 million, compared with the same period last year.
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