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Ritchie Bros. Doubles 3Q Net Earnings

Ritchie Bros. Auctioneers reported third-quarter 2013 net earnings of  $16.4 million, a 101 percent increase from 3Q 2012’s total of $8.2 million.

November 05, 2013

Ritchie Bros. Auctioneers reported third-quarter 2013 net earnings of  $16.4 million, a 101 percent increase from 3Q 2012’s total of $8.2 million.

Adjusted third-quarter net earnings totaled $16 million, compared to adjusted net earnings of $9.7 million in the same period in 2012. This represents a 65 percent increase. Revenues grew 15 percent, to $105.8 million compared to $92.3 million in 2012.

For the nine months ended Sept. 30, 2013 net earnings were $60.5 million, and adjusted net earnings were $60.1 million. This compares to net earnings of $57.4 million, and adjusted net earnings of $60.2 million for the same period in 2012. This represents a 1 percent decrease in adjusted net earnings. The company's auction revenues during the nine months ended Sept. 30, 2013 grew 5 percent to $336.2 million compared to $320.8 million for the same period in 2012.

During the third quarter of 2013, Ritchie Bros. conducted 58 unreserved industrial auctions in 15 countries throughout North America, Central America, Europe, the Middle East, Asia and Australia.

Gross Auction Proceeds were $789.6 million during the third quarter of 2013, a 7 percent decrease compared to the same period in 2012. This decline was due primarily to the timing of auctions and a large one-time consignment that occurred in the comparable period last year. EquipmentOne and other online marketplaces contributed $20.1 million to Gross Auction Proceeds in the third quarter of 2013 compared to $20.5 million in the same period of 2012.

For the first nine months of 2013, Gross Auction Proceeds was $2.7 billion, a 7 decrease from the same period of 2012. EquipmentOne and other online marketplaces contributed $65.6 million to Gross Auction Proceeds in the nine months ended Sept. 30, 2013 compared to $37.4 million in the same period of 2012.

Ritchie Bros. sold more than $987 million of equipment, trucks and other assets to online buyers during the first nine months of 2013, representing 36 percent of Gross Auction Proceeds. Internet bidders continued to comprise over 50 percent of the total bidder registrations at Ritchie Bros. industrial auctions in the third quarter of 2013.

"I am proud of our third quarter results and the great work of our teams worldwide. Our focus remains squarely on growing revenue,” said Peter Blake, CEO of Ritchie Bros. "The strong performance of our underwritten business helped to bolster our Auction Revenue Rate to its highest level ever, driving meaningful revenue and earnings growth this quarter. We're also pleased with the progress of our new Territory Managers, who have been aided by ongoing training and new sales support tools. These developments, along with signals of a stronger market and supply environment reinforce our belief that the company is very well positioned for growth."

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