Ritchie Bros. announced net earnings of $38.6 million for the three months ended June 30, 2014. This is a 30% increase compared to net earnings of $29.8 million generated in the same quarter last year. The Company’s revenues for the second quarter of 2014 increased 11% to $141.8 million compared to $128.3 million for the same period in 2013, primarily as a result of an increase in gross auction proceeds (“GAP”). S
“Revenue and earnings growth was strong in the quarter and we fully demonstrated the leverage in the business model with our continued expense control,” said Rob McLeod, Chief Financial Officer. “Our record second quarter revenue was bolstered by strong auction activity across North America – especially in Canada. The mix and age of equipment sold at our auctions also continued to improve, enhancing the average price per lot.”
Ravi Saligram, Chief Executive Officer, added: “We’re pleased to see the level of growth in our auction business, which we believe continues to have significant growth prospects. Over the next several quarters, I look forward to focusing on how we can grow the Ritchie Bros. business and expand our market share by further penetrating our existing markets, with particular focus on the U.S. and Europe. I am also excited by our newly developed EquipmentOne solution, and plan to put a significant focus on evolving our strategy to achieve its full potential.”
During the second quarter of 2014, the Company conducted 68 unreserved industrial auctions in 14 countries throughout North America, Central America, Europe, the Middle East, Australia and Asia.
EquipmentOne, the Company’s online equipment marketplace, contributed $29.6 million of gross transaction value (“GTV”) to GAP in the second quarter of 2014 compared to $29.1 million in the second quarter of 2013. GTV is comprised of the value of the items sold on EquipmentOne and the fees earned through EquipmentOne’s buyers’ premiums.
Online bidding statistics - Ritchie Bros. sold approximately $840 million of equipment, trucks and other assets to online buyers during the first half of 2014, a 17% increase compared to the same period of 2013.