Ritchie Bros. reports first quarter 2018 results
VANCOUVER, May 10, 2018 /PRNewswire/ - Ritchie Bros. Auctioneers Incorporated (NYSE & TSX: RBA, the "Company" or "Ritchie Bros.") reported the following results for the three months ended March 31, 2018:
(All figures are presented in U.S. dollars)
Net income attributable to stockholders of $17.1 million improved 65% compared to $10.4 million for the same quarter in 2017. Diluted earnings per share ("EPS") attributable to stockholders increased 60% to $0.16 versus $0.10 in the first quarter of 2017. Other key first quarter highlights included:
Consolidated results:
- Total revenues, as presented under the new revenue standard, were $260.2 million; a 30% increase over the first quarter of 2017
- Total Company agency proceeds1 (non-GAAP measure) of $169.8 million increased 36% from $124.5 million in the first quarter of 2017
- Cash provided by operating activities of $67.2 million
- Repayment of $29.2 million in long-term debt in the first quarter of 2018
- Declared quarterly dividend of $0.17 per common share
Auctions & Marketplaces ("A&M") segment:
- Gross Transaction Value ("GTV")2 of $1.2 billion increased 29% from $0.9 billion in the first quarter of 2017
- Total revenues of $232.6 million increased 30% from $179.1 million in the first quarter of 2017
- A&M agency proceeds3 (non-GAAP measure) of $156.8 million increased 36% from $115.7 million in the first quarter of 2017
- A&M revenue rate improved 10 basis points ("bps") over the first quarter of 2017; and A&M agency proceeds rate4 (non-GAAP measure) improved 60 bps over the first quarter of 2017
"We achieved strong revenue and agency proceeds growth in the first quarter as our teams leveraged the capabilities of the combined company to win new business, tap into existing customers and drive multi-channel offerings despite supply constraints and fewer auctions and selling days. In the quarter, over 70% of our live industrial auctions posted strong year-on-year growth comps across major geographies through excellent price realization and improvement in rate," said Ravi Saligram, Chief Executive Officer.
Saligram continued, "we are encouraged to see early signs of recovery starting in Canada and growth momentum internationally but continue to navigate very tight supply conditions in the US market. RBFS, Mascus and the Government business performed extremely well and we are beginning to experience the benefits of the Caterpillar Alliance. Overall, we're off to a good start in the year and will continue to be focused on executing against our multi-channel initiatives."
Effective January 1, 2018, the Company adopted ASU 2014-09 Revenue from Contracts with Customers ("Topic 606"). Revenues on inventory sales and ancillary and logistical services are presented gross of the related expenses rather than net. Accordingly, in addition to total revenues, the Company has added a new metric to our disclosures called agency proceeds (non-GAAP measure), which presents revenues as previously reported and is calculated as total revenues under Topic 606 less the cost of inventory sold and ancillary and logistical service expenses.
| _____________________________ |
|
| 1 |
Agency proceeds is a non-GAAP financial measure calculated by subtracting the cost of inventory sold and ancillary and logistical service expenses from total revenues. Agency proceeds is an element of the performance criteria for certain annual short-term incentive awards we grant to our employees and officers. Agency proceeds is reconciled to the most directly comparable GAAP measure from the Company's consolidated financial statements under "Non-GAAP Measures". |
| 2 |
GTV represents total proceeds from all items sold at our live on site auctions and online marketplaces. GTV is not a measure of financial performance, liquidity, or revenue, and is not presented in our consolidated financial statements. |
| 3 |
A&M agency proceeds is a non-GAAP financial measure that provides useful information about the performance of our A&M contracts for different financial periods. A&M agency proceeds is calculated as A&M total revenues less cost of inventory sold and is reconciled to the most directly comparable GAAP measures in our consolidated financial statements under "Non-GAAP Measures". |
| 4 |
A&M agency proceeds rate is a non-GAAP financial measure that provides useful information about the performance of our operations by comparing the margins we earn on our contracts for different financial periods. A&M agency proceeds rate is calculated by dividing A&M agency proceeds (non-GAAP measure) by GTV. A&M agency proceeds rate is reconciled to the most directly comparable GAAP measures in our consolidated financial statements under "Non-GAAP Measures". |
Financial Overview
(Unaudited)
| Three months ended March 31, |
|||||||||
| $ Change |
% Change |
||||||||
| (in U.S. $000's, except EPS) |
2018 |
2017 |
2018 over 2017 |
2018 over 2017 |
|||||
| Service revenues |
$ |
176,016 |
$ |
123,379 |
$ |
52,637 |
43% |
||
| Revenue from inventory sales |
84,162 |
76,048 |
8,114 |
11% |
|||||
| Total revenues |
260,178 |
199,427 |
60,751 |
30% |
|||||
| Costs of services |
36,657 |
24,340 |
12,317 |
51% |
|||||
| Cost of inventory sold |
75,791 |
63,401 |
12,390 |
20% |
|||||
| Selling, general and administrative expenses |
97,470 |
70,575 |
26,895 |
38% |
|||||
| Acquisition-related costs |
1,633 |
8,627 |
(6,994) |
(81%) |
|||||
| Operating income |
32,873 |
23,597 |
9,276 |
39% |
|||||
| Net income attributable to stockholders |
17,138 |
10,377 |
6,761 |
65% |
|||||
|
Diluted earnings per share attributable to stockholders |
$ |
0.16 |
$ |
0.10 |
$ |
0.06 |
60% |
||
|
Diluted adjusted EPS attributable to stockholders (non-GAAP measure) |
$ |
0.16 |
$ |
0.12 |
$ |
0.04 |
33% |
||
| GTV |
$ |
1,160,712 |
$ |
899,410 |
$ |
261,302 |
29% |
||
| Agency proceeds (non-GAAP measure) |
$ |
169,807 |
$ |
124,499 |
$ |
45,308 |
36% |
||
| A&M revenue |
$ |
232,567 |
$ |
179,078 |
$ |
53,489 |
30% |
||
| A&M revenue rate |
20.0% |
19.9% |
n/a |
10 bps |
|||||
| A&M agency proceeds (non-GAAP measure) |
$ |
156,776 |
$ |
115,677 |
$ |
41,099 |
36% |
||
| A&M agency proceeds rate (non-GAAP measure) |
13.5% |
12.9% |
n/a |
60 bps |
|||||
Results of operations – first quarter update
For the three months ended March 31, 2018
Consolidated Performance Highlights
Total revenues increased 30% to $260.2 million in the first quarter. Total revenue growth driven by incremental volume from the acquisition of IronPlanet Holdings, Inc. (the "Acquisition"), live auction performance, an increase in the volume of inventory contracts in Canada and Europe and the partial fee harmonization implemented in the first quarter. Foreign exchange had a positive impact on total revenues in the first quarter of 2018.
Agency proceeds (non-GAAP measure) improved 36% to $169.8 million versus $124.5 million in the first quarter of 2017 driven by GTV and service revenues growth and higher fee revenues.
Cost of services increased 51% to $36.7 million in the first quarter. The increase was primarily due to the Acquisition and the costs associated with the inspection and appraisal activities that support our online channels. The increase is also due to an increase in GTV at our live on site auctions over the comparative period and the growth of our ancillary business.
Selling, general and administrative ("SG&A") expenses increased $26.9 million, or 38% in the first quarter of 2018 compared to the first quarter of 2017. This increase is primarily due to the Acquisition, investment in talent to support new businesses and initiatives, and $4.6 million in share unit expenses in the first quarter of 2018 compared to $0.6 million in the first quarter of 2017. The $4.0 million increase in share unit expenses was primarily due to mark-to-market costs driven by a growth in the Company's share price, as well as incremental compensation costs resulting from a performance share unit modification on March 1, 2018.
Operating income increased 39% during the first quarter of 2018 to $32.9 million, compared to the first quarter of 2017. This increase is primarily driven from higher total revenues and lower acquisition-related costs, partially offset by higher costs of services and SG&A expenses. There were no adjusting items impacting operating income results in the first quarter of 2018.
Net income attributable to stockholders increased $6.8 million, or 65%, in the first quarter of 2018 compared to the first quarter of 2017. This improvement is primarily due to operating income growth and lower income taxes partially offset by the increases in interest expense due to the increased indebtedness to fund the Acquisition.
Primarily for the same reasons noted above, diluted EPS attributable to stockholders improved 60% to $0.16 in the first quarter of 2018 compared to diluted EPS attributable to stockholders of $0.10 in the first quarter of 2017.
Auctions & Marketplaces Performance Highlights
GTV increased 29% to $1.2 billion in the first quarter compared to $0.9 billion in the first quarter of 2017. The increase is primarily attributable to the incremental volume from the Acquisition, together with the significant year over year growth from the Orlando auction in the quarter. The increase was partially offset by the continuing equipment supply constraints, as well as the reduction of live on site auctions and sale days over the comparative period.
Total revenues increased 30% to $232.6 million in the first quarter compared to $179.1 million in the first quarter of 2017. Total revenue growth driven by incremental volume from the Acquisition, live auction performance, an increase in the volume of inventory contracts in Canada and Europe and the partial fee harmonization implemented in the first quarter. A&M revenue rate, which the Company calculates as A&M total revenues divided by GTV, for first quarter was 20.0%, a 10-basis point increase over the same quarter last year.
A&M agency proceeds (non-GAAP measure) improved 36% to $156.8 million versus $115.7 million in the first quarter of 2017 driven by GTV and service revenues growth and higher fee revenues. The overall A&M agency proceeds rate (non-GAAP measure) improved 60 basis points to 13.5% from 12.9% in the first quarter of 2017.
New Accounting Standard
The Company adopted the new accounting standard related to revenue recognition effective January 1,2018. The prior periods presented here have been restated to reflect adoption of this new standard.
Dividend Information
Quarterly dividend
The Company declared on May 10, 2018, a quarterly cash dividend of $0.17 per common share payable on June 20, 2018 to shareholders of record on May 30, 2018.
Q1 2018 Earnings Conference Call
Ritchie Bros. is hosting a conference call to discuss its financial results for the quarter ended March 31, 2018, at 8am Pacific time / 11 am Eastern time / 4 pm GMT on May 11, 2018. The replay of the webcast will be available through June 11, 2018.
Conference call and webcast details are available at the following link:
https://investor.ritchiebros.com
About Ritchie Bros.
Established in 1958, Ritchie Bros. (NYSE and TSX: RBA) is a global asset management and disposition company, offering customers end-to-end solutions for buying and selling used heavy equipment, trucks and other assets. Operating in a multitude of sectors, including construction, transportation, agriculture, energy, oil and gas, mining, and forestry, the Company's selling channels include: Ritchie Bros. Auctioneers, the world's largest industrial auctioneer offering live on site auction events with online bidding; IronPlanet, an online marketplace with featured weekly auctions and providing its exclusive IronClad Assurance® equipment condition certification program; Marketplace-E, an online auction marketplace; Mascus, a leading European online equipment listing service; and Ritchie Bros. Private Treaty, offering privately negotiated sales. The Company also offers sector-specific solutions including GovPlanet, TruckPlanet, and Kruse Energy Auctioneers, plus equipment financing and leasing through Ritchie Bros. Financial Services. For more information about the unprecedented choice provided by Ritchie Bros., visit RitchieBros.com.
Forward-looking Statements
This news release contains forward-looking statements and forward-looking information within the meaning of applicable U.S. and Canadian securities legislation (collectively, "forward-looking statements"), including, in particular, statements regarding future financial and operational results, including growth prospects and payment of dividends. Forward-looking statements are statements that are not historical facts and are generally, although not always, identified by words such as "expect", "plan", "anticipate", "project", "target", "potential", "schedule", "forecast", "budget", "estimate", "intend" or "believe" and similar expressions or their negative connotations, or statements that events or conditions "will", "would", "may", "could", "should" or "might" occur. All such forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Forward-looking statements necessarily involve assumptions, risks and uncertainties, certain of which are beyond the Company's control, including the numerous factors that influence the supply of and demand for used equipment; economic and other conditions in local, regional and global sectors; the Company's ability to successfully integrate IronPlanet, and to receive the anticipated benefits of the Acquisition; and the risks and uncertainties set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 and which is available on the SEC, SEDAR, and Company websites. The foregoing list is not exhaustive of the factors that may affect the Company's forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, and actual results may differ materially from those expressed in, or implied by, these forward-looking statements. Forward looking statements are made as of the date of this news release and the Company does not undertake any obligation to update the information contained herein unless required by applicable securities legislation. For the reasons set forth above, you should not place undue reliance on forward looking statements.
Forward-looking statements are made as of the date of this news release and the Company does not undertake any obligation to update the information contained herein unless required by applicable securities legislation. For the reasons set forth above, you should not place undue reliance on forward-looking statements.
GTV and Selected Condensed Consolidated Financial Information
GTV and Condensed Consolidated Income Statements – First Quarter
(Expressed in thousands of United States dollars, except share and per share amounts)
(Unaudited)
| Three months ended March 31, |
2018 |
2017 |
|||
| GTV |
$ |
1,160,712 |
$ |
899,410 |
|
| Service revenues |
$ |
176,016 |
$ |
123,379 |
|
| Revenue from inventory sales |
84,162 |
76,048 |
|||
| Total revenues |
260,178 |
199,427 |
|||
| Cost of services |
36,657 |
24,340 |
|||
| Cost of inventory sold |
75,791 |
63,401 |
|||
| Selling, general and administrative expenses |
97,470 |
70,575 |
|||
| Acquisition-related costs |
1,633 |
8,627 |
|||
| Depreciation and amortization expenses |
16,191 |
10,338 |
|||
| Gain on disposition of property, plant and equipment |
(345) |
(721) |
|||
| Foreign exchange gain |
(92) |
(730) |
|||
| Total operating expenses |
227,305 |
175,830 |
|||
| Operating income |
32,873 |
23,597 |
|||
| Interest expense |
(11,310) |
(8,133) |
|||
| Other, net |
913 |
2,284 |
|||
| Income before income taxes |
22,476 |
17,748 |
|||
| Income tax expense |
5,269 |
7,315 |
|||
| Net income |
$ |
17,207 |
$ |
10,433 |
|
| Net income attributable to: |
|||||
| Stockholders |
17,138 |
10,377 |
|||
| Non-controlling interests |
69 |
56 |
|||
| $ |
17,207 |
$ |
10,433 |
||
| Earnings per share attributable |
|||||
| to stockholders: |
|||||
| Basic |
$ |
0.16 |
$ |
0.10 |
|
| Diluted |
$ |
0.16 |
$ |
0.10 |
|
| Weighted average number of share outstanding: |
|||||
| Basic |
107,355,381 |
106,851,595 |
|||
| Diluted |
108,643,897 |
107,788,949 |
|||
Condensed Consolidated Balance Sheets
(Expressed in thousands of United States dollars, except share data)
(Unaudited)
| March 31, |
December 31, |
||||||
| 2018 |
2017 |
||||||
| Assets |
|||||||
| Cash and cash equivalents |
$ |
278,944 |
$ |
267,910 |
|||
| Restricted cash |
62,414 |
63,206 |
|||||
| Trade and other receivables |
182,157 |
92,105 |
|||||
| Inventory |
34,350 |
38,238 |
|||||
| Other current assets |
30,657 |
27,026 |
|||||
| Assets held for sale |
251 |
584 |
|||||
| Income taxes receivable |
17,515 |
19,418 |
|||||
| Total current assets |
606,288 |
508,487 |
|||||
| Property, plant and equipment |
522,871 |
526,581 |
|||||
| Equity-accounted investments |
6,915 |
7,408 |
|||||
| Other non-current assets |
26,807 |
24,146 |
|||||
| Intangible assets |
259,052 |
261,094 |
|||||
| Goodwill |
674,097 |
670,922 |
|||||
| Deferred tax assets |
19,934 |
18,674 |
|||||
| Total assets |
$ |
2,115,964 |
$ |
2,017,312 |
|||
| Liabilities and Equity |
|||||||
| Auction proceeds payable |
$ |
303,416 |
$ |
199,245 |
|||
| Trade and other payables |
170,777 |
164,553 |
|||||
| Income taxes payable |
2,021 |
732 |
|||||
| Short-term debt |
5,861 |
7,018 |
|||||
| Current portion of long-term debt |
9,264 |
16,907 |
|||||
| Total current liabilities |
491,339 |
388,455 |
|||||
| Long-term debt |
771,030 |
795,985 |
|||||
| Other non-current liabilities |
44,857 |
46,773 |
|||||
| Deferred tax liabilities |
34,712 |
32,334 |
|||||
| Total liabilities |
1,341,938 |
1,263,547 |
|||||
| Contingencies |
|||||||
| Contingently redeemable performance |
|||||||
| share units |
16,576 |
9,014 |
|||||
| Stockholders' equity: |
|||||||
| Share capital: |
|||||||
| Common stock; no par value, unlimited shares |
|||||||
| authorized, issued and outstanding shares: |
|||||||
| 107,471,895 (December 31, 2017: 107,269,783) |
144,387 |
138,582 |
|||||
| Additional paid-in capital |
44,327 |
41,005 |
|||||
| Retained earnings |
601,205 |
602,609 |
|||||
| Accumulated other comprehensive loss |
(37,619) |
(42,514) |
|||||
| Stockholders' equity |
752,300 |
739,682 |
|||||
| Non-controlling interest |
5,150 |
5,069 |
|||||
| Total shareholders' equity |
757,450 |
744,751 |
|||||
| Total liabilities and equity |
$ |
2,115,964 |
$ |
2,017,312 |
|||
Condensed Consolidated Statements of Cash Flows
(Expressed in thousands of United States dollars)
(Unaudited)
| Three months ended March 31, |
2018 |
2017 |
|||||
| Cash provided by (used in): |
|||||||
| Operating activities: |
|||||||
| Net income |
$ |
17,207 |
$ |
10,433 |
|||
| Adjustments for items not affecting cash: |
|||||||
| Depreciation and amortization expenses |
16,191 |
10,338 |
|||||
| Stock option compensation expense |
2,343 |
1,311 |
|||||
| Equity-classified PSU expense |
3,035 |
1,012 |
|||||
| Amortization of debt issuance costs |
1,066 |
445 |
|||||
| Other, net |
2,131 |
(1,042) |
|||||
| Net changes in operating assets and liabilities |
25,265 |
112,045 |
|||||
| Net cash provided by operating activities |
67,238 |
134,542 |
|||||
| Investing activities: |
|||||||
| Property, plant and equipment additions |
(2,564) |
(1,863) |
|||||
| Intangible asset additions |
(7,034) |
(5,664) |
|||||
| Proceeds on disposition of property, plant and equipment |
1,066 |
1,505 |
|||||
| Other, net |
(4,674) |
- |
|||||
| Net cash used in investing activities |
(13,206) |
(6,022) |
|||||
| Financing activities: |
|||||||
| Dividends paid to stockholders |
(18,245) |
(18,160) |
|||||
| Dividends paid to NCI |
- |
(41) |
|||||
| Issuances of share capital |
4,313 |
3,412 |
|||||
| Proceeds from short-term debt |
308 |
1,219 |
|||||
| Repayment of short-term debt |
(1,754) |
(1,009) |
|||||
| Repayment of long-term debt |
(29,237) |
- |
|||||
| Repayment of finance lease obligations |
(802) |
(438) |
|||||
| Other, net |
- |
(48) |
|||||
| Net cash used in financing activities |
(45,417) |
(15,065) |
|||||
| Effect of changes in foreign currency rates on |
|||||||
| cash, cash equivalents, and restricted cash |
1,627 |
3,336 |
|||||
| Increase |
10,242 |
116,791 |
|||||
| Beginning of period |
331,116 |
758,089 |
|||||
| Cash, cash equivalents, and restricted cash, end of period |
$ |
341,358 |
$ |
874,880 |
|||
Segmented Information
(Expressed in thousands of United States dollars)
| Three months ended March 31, 2018 |
|||||||||
| A&M |
Other |
Consolidated |
|||||||
| Service revenues |
$ |
148,405 |
$ |
27,611 |
$ |
176,016 |
|||
| Revenue from inventory sales |
84,162 |
- |
84,162 |
||||||
| Total revenues |
232,567 |
27,611 |
260,178 |
||||||
| Costs of services |
21,448 |
15,209 |
36,657 |
||||||
| Cost of inventory sold |
75,791 |
- |
75,791 |
||||||
| Selling, general and administrative |
|||||||||
| expenses ("SG&A") |
93,002 |
4,468 |
97,470 |
||||||
| Segment profit |
$ |
42,326 |
$ |
7,934 |
$ |
50,260 |
|||
| Acquisition-related costs |
1,633 |
||||||||
| D&A expenses |
16,191 |
||||||||
| Gain on disposition of property, plant |
|||||||||
| and equipment ("PPE") |
(345) |
||||||||
| Foreign exchange gain |
(92) |
||||||||
| Operating income |
$ |
32,873 |
|||||||
| Interest expense |
(11,310) |
||||||||
| Other income, net |
913 |
||||||||
| Income tax expense |
(5,269) |
||||||||
| Net income |
$ |
17,207 |
|||||||
| Three months ended March 31, 2017 |
|||||||||
| A&M |
Other |
Consolidated |
|||||||
| Service revenues |
$ |
103,030 |
$ |
20,349 |
$ |
123,379 |
|||
| Revenue from inventory sales |
76,048 |
- |
76,048 |
||||||
| Total revenues |
179,078 |
20,349 |
199,427 |
||||||
| Costs of services |
12,587 |
11,753 |
24,340 |
||||||
| Cost of inventory sold |
63,401 |
- |
63,401 |
||||||
| SG&A expenses |
67,111 |
3,464 |
70,575 |
||||||
| Segment profit |
$ |
35,979 |
$ |
5,132 |
$ |
41,111 |
|||
| Acquisition-related costs |
8,627 |
||||||||
| D&A expenses |
10,338 |
||||||||
| Gain on disposition of PPE |
(721) |
||||||||
| Foreign exchange gain |
(730) |
||||||||
| Operating income |
$ |
23,597 |
|||||||
| Interest expense |
(8,133) |
||||||||
| Other income, net |
2,284 |
||||||||
| Income tax expense |
(7,315) |
||||||||
| Net income |
$ |
10,433 |
|||||||
Selected Data
(Unaudited)
| (in U.S. $000's) |
March 31, |
December 31, |
||
| 2018 |
2017 |
|||
| Current assets |
$ |
606,288 |
$ |
508,487 |
| Current liabilities |
491,339 |
388,455 |
||
| Working capital |
$ |
114,949 |
$ |
120,032 |
| Total assets |
$ |
2,115,964 |
$ |
2,017,312 |
| Long-term debt |
780,294 |
812,892 |
||
| Stockholders' equity |
752,300 |
739,682 |
||
| Selected operating data |
||||
| As at and for the three months ended March 31, |
2018 |
2017 |
||
| Number of consignments at industrial auctions |
10,750 |
11,350 |
||
| Number of bidder registrations at industrial auctions |
119,000 |
114,500 |
||
| Number of buyers at industrial auctions |
29,000 |
29,150 |
||
| Number of lots at industrial auctions |
81,000 |
84,000 |
||
| Number of permanent operational sites |
35 |
35 |
||
| Number of regional operational sites |
5 |
5 |
||
| Total auction sites |
40 |
40 |
||
| Number of industrial auctions |
35 |
41 |
||
| Average industrial auction data |
||||
| Three months ended March 31, |
2018 |
2017 |
||
| GTV |
$ |
15.9 million |
$ |
16.4 million |
| Bidder registrations |
2,405 |
2,319 |
||
| Consignors |
233 |
231 |
||
| Lots |
1,576 |
1,680 |
Non-GAAP Measures
This news release makes reference to various non-GAAP measures. These measures do not have a standardized meaning and are, therefore, unlikely to be comparable to similar measures presented by other companies. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation of, or as a substitute for, the financial information prepared and presented in accordance with generally accepted accounting principles.
The following table presents the Company's adjusted net income attributable to stockholders (non-GAAP measure) and diluted adjusted EPS attributable to stockholders (non-GAAP measure) results for the three months ended March 31, 2018, and 2017, as well as reconciles those metrics to net income attributable to stockholders and diluted EPS attributable to stockholders, which are the most directly comparable GAAP measures in the Company's consolidated income statements:
| (in U.S. $000's, except share and |
Three months ended March 31, |
||||||
| per share data) |
Change |
||||||
| 2018 |
2017 |
2018 over 2017 |
|||||
| Net income attributable to stockholders |
$ |
17,138 |
$ |
10,377 |
65% |
||
| Current income tax adjusting item: |
|||||||
| Change in uncertain tax provision |
- |
2,290 |
(100%) |
||||
| Adjusted net income attributable to stockholders (non-GAAP measure) |
|||||||
| $ |
17,138 |
$ |
12,667 |
35% |
|||
| Effect of dilutive securities |
$ |
- |
$ |
27 |
(100%) |
||
| Weighted average number of dilutive shares outstanding |
|||||||
| 108,643,897 |
107,788,949 |
1% |
|||||
| Diluted earnings per share attributable to stockholders |
|||||||
| $ |
0.16 |
$ |
0.10 |
60% |
|||
| Diluted adjusted EPS attributable to stockholders (non-GAAP measure) |
|||||||
| $ |
0.16 |
$ |
0.12 |
33% |
|||
There were no adjusting items for the three months ended March 31, 2018. The adjusting item for the three months ended March 31, 2017 was a $2.3 million (or $0.02 per diluted share) charge related to the change in uncertain tax provisions.
The following table presents the Company's agency proceeds (non-GAAP measure) results for the three months ended March 31, 2018 and 2017, as well as reconciles that metric to total revenues, which is the most directly comparable GAAP measures in the Company's consolidated income statements:
| (in U.S. $000's) |
Three months ended March 31, |
||||||||
| Change |
|||||||||
| 2018 |
2017 |
2018 over 2017 |
|||||||
| Total revenues |
$ |
260,178 |
$ |
199,427 |
30% |
||||
| Less: cost of inventory sold |
(75,791) |
(63,401) |
20% |
||||||
| Less: ancillary and logistical service |
|||||||||
| expenses |
(14,580) |
(11,527) |
26% |
||||||
| Agency proceeds (non-GAAP measure) |
$ |
169,807 |
$ |
124,499 |
36% |
||||
The following table presents the Company's A&M agency proceeds (non-GAAP measure) and A&M agency proceeds rate (non-GAAP measure) results for the three months ended March 31, 2018, and 2017, as well as reconciles those metrics to A&M total revenues and A&M revenue rate, which are the most directly comparable GAAP measures in the Company's consolidated financial statements:
| (in U.S. $000's) |
Three months ended March 31, |
|||||||
| Change |
||||||||
| 2018 |
2017 |
2018 over 2017 |
||||||
| A&M total revenues |
$ |
232,567 |
$ |
179,078 |
30% |
|||
| Less: cost of inventory sold |
(75,791) |
(63,401) |
20% |
|||||
| A&M agency proceeds (non-GAAP measure) |
$ |
156,776 |
$ |
115,677 |
36% |
|||
| GTV |
1,160,712 |
899,410 |
29% |
|||||
| A&M revenue rate |
20.0% |
19.9% |
10 bps |
|||||
| A&M agency proceeds rate |
||||||||
| (non-GAAP measure) |
13.5% |
12.9% |
60 bps |
|||||
SOURCE Ritchie Bros. Auctioneers
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