Investor Information Fact Sheet
Ritchie Bros. is the world’s largest auctioneer of industrial equipment, operating through over 110 locations in more than 25 countries around the world. The Company sells, through unreserved public auctions, a broad range of used and unused industrial assets, including equipment, trucks and other assets utilized in the construction, transportation, material handling, mining, forestry, petroleum, marine, and agricultural industries.
Average Ritchie Bros. Industrial Auction in 2008:
- Gross Auction Proceeds of US$17.7 million
- 189 Consignors
- Close to 1,300 Lots
- More than 1,400 Bidders (27% via the internet)
Value Proposition
Ritchie Bros. helps consignors get the highest net return on the sale of their trucks and equipment. We do this by attracting large bidding audiences comprised primarily of end users (as compared to re-sellers) and allowing them to compete in a transparent and fair bidding environment.
- We market the equipment to our extensive customer base (over 450,000 customers in 200 countries)
- All consigned equipment is listed on our high-traffic web site
- Over 60% of sales go to buyers from outside the region of the sale
- Internet bidders are buyer or runner-up bidder on over 30% of lots offered on-line
- Approximately 80% of sales go to end users of the equipment
By working with Ritchie Bros., an equipment owner is able to access the international market of retail equipment buyers and sell his equipment for the world market price.
Growth Potential
- The used truck and equipment market is huge
- Analysts estimate $100 billion in transactions annually
- The market is highly fragmented
- Ritchie Bros. sells more used trucks and equipment than any other organization in the world but we have only a small share of the total market
- Ritchie Bros. is enjoying considerable momentum and continues to attract an increasing number of buyers and sellers to its unreserved auctions
- Ritchie Bros. is focused on long-term growth
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Growth Strategies
Our long-term mission is to be the world's largest marketplace for industrial and commercial assets.
Our two main goals: (1) grow our earnings per share at a manageable pace over the long term; and (2) maintain and enhance our culture. To accomplish these goals, we focus simultaneously on three key components:
- People: the key driver of our growth - we intend to recruit, train and develop the best people and give them tools and training to be more productive.
- Places: Expand our presence in existing and new geographic markets and market segments.
- Near-term focus is U.S. and Europe.
Expand our international auction site network to accommodate the expected growth of our business.
- At least two new or replacement sites per year.
- Processes: Develop and refine our processes to improve efficiency and scalability, to allow revenues to grow faster than costs; use technology to facilitate our growth and enhance the quality of service for our customers
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Financial Highlights(USD)
| |
12 mos. to 12/31/08 |
12 mos. to 12/31/07 |
| Gross Auction Proceeds |
$3,570 mm |
$3,186 mm |
| Auction Revenues |
$354.8 mm |
$315.0 mm |
| Auction Revenues as % of GAP |
9.95% |
9.79% |
| # of Consignors |
36,595 |
34,931 |
| # of Buyers |
84,005 |
80,340 |
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Analyst Coverage
| BARRINGTON RESEARCH |
Gary Prestopino |
+1.312 634 6369 |
| BMO NESBITT BURNS |
Bert Powell |
+1.416 359 5301 |
| CIBC WORLD MARKETS |
Jacob Bout |
+1.416 956 6766 |
| GENUITY CAPITAL |
Neil Forster |
+1.416 687 5402 |
| JEFFERIES & CO. |
Yvonne Varano |
+1.212 284 2149 |
| KANSAS CITY CAPITAL ASSOCIATES |
Michael Smith |
+1.816 932 8080 |
| MACQUARIE CAPITAL MARKETS |
Avi Dalfen |
+1.416 628 3934 |
| MERRILL LYNCH |
Anna Kaminskaya |
+1.212 449 4651 |
| MORNING STAR |
Basili Alukos |
+1.312.384.4984 |
| PARADIGM CAPITAL |
Corey Hammill |
+1.416 361 0754 |
| RAYMOND JAMES |
Ben Cherniavsky |
+1.604 659 8244 |
| RBC CAPITAL MARKETS |
Jamie Sullivan |
+1.212 428 6465 |
| ROBERT W. BAIRD & CO. |
Craig Kennison |
+1.414 765 3870 |
| SCOTIA CAPITAL |
Cherilyn Radbourne |
+1.416 863 2899 |
| SIDOTI & COMPANY |
Scott Stember |
+1.212 297 0001 |
| STERNE AGEE |
Lawrence De Maria |
+1.212 338 4704 |
| THOMPSON RESEARCH GROUP |
David C. Wells, Jr. |
+1.615.891.6207 |
| WILLIAM BLAIR & CO. |
Nate Brochmann |
+1.312 364 5385 |
This fact sheet is not intended to be a comprehensive source of information for investors. Please refer to the company’s Annual Report and SEC filings for a complete discussion. Please also note that this fact sheet contains forward-looking information. Actual performance will vary. Please review the risk factors listed in the Company’s SEC filings.
Updated to September 2009
Investor Contact:
Jeremy Black
Vice President - Business Development & Corporate Secretary
Ritchie Bros. Auctioneers Incorporated
9500 Glenlyon Parkway, Burnaby, BC V5J 0C6
Phone: 1.778.331.5500
Fax: 1.778.331.4628
E-mail: ir@rbauction.com
Web: www.rbauction.com
