Richie Bros. Auctioneers Inc. reported net earnings and adjusted net earnings of $30 million for the second quarter ended June 20, 2013, a 4 percent decrease in net earnings and a 7 percent decrese in adjusted net earnings from the same period in 2012.
Auction revenues totaled $128.3 million, up 1 percent from the second-quarter 2012 total of $127.2 million.
For the six months ended June 30, 2013, net earnings and adjusted net earnings were $44.1 million, compares to net earnings of $49.3 million and adjusted net earnings of $50.5 million for the six months ended June 30, 2012, an 11 percent decrease in adjusted net earnings. The company's auction revenues during the first six months of 2013 grew 1 percent to $230.4 million compared to $228.5 million for the same period in 2012.
During the second quarter of 2013, the company conducted 72 unreserved industrial auctions in 14 countries throughout North America, Central America, Europe, the Middle East and Australia.
Gross Auction Proceeds were $1.1 billion during the second quarter of 2013, a 10% decrease compared to the same period in 2012. This decline is primarily attributable to the increased average age of items sold at auctions, largely as a result of the OEM production decrease during the recent recession, which has reduced the supply of lesser-aged equipment.
EquipmentOne and other online marketplaces contributed Gross Auction Proceeds of $26.8 million in the second quarter of 2013 compared to $16.9 million in the same period of 2012.
For the six months ended June 30, 2013, Gross Auction Proceeds was $1.9 billion which is 7% lower than in the first half of 2012. EquipmentOne and other online marketplaces contributed Gross Auction Proceeds of $45.5 million in the six months ended June 30, 2013 compared to $16.9 million in the same period of 2012.
The Company also announced a 6% increase in its quarterly cash dividend. The quarterly cash dividend increases to $0.1300 per common share payable on Sept.13, 2013 to shareholders of record on Aug. 23, 2013.
"While we were pleased with our strong revenue rate performance in the quarter, our Gross Auction Proceeds are down year over year as our business continues to contend with a reduced supply of used equipment within the three to five year age bracket—a traditionally strong segment of our auction business,” said Peter Blake, CEO of Ritchie Bros. “We expect this supply shortage will dissipate in the future as larger inventories of newer machinery become available for resale. Although this macro challenge has created headwinds for our business, we are focusing on what we can control and executing strategies to drive our growth."