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VANCOUVER,
BRITISH COLUMBIA -- Ritchie Bros. Auctioneers Incorporated
(NYSE:RBA) achieved Gross Auction Proceeds of $179.3 million
at an auction revenue rate of 9.40% during the three months
ended September 30, 2001. The Company rescheduled three
auctions into the 4th quarter as a result of the tragic
events of September 11; however, the remaining 20 auctions
attracted over 21,000 bidders who competed for over 20,000
lots consigned by more than 3,100 consignors. According
to Dave Ritchie, Chairman and CEO of Ritchie Bros., "Prices
for most categories of equipment have remained stable as
the events of September 11 do not appear to have slowed
down the buyers of used equipment. Our customers have adopted
a "business as usual" approach and they continue
to travel to our sales as they have always done. They come
to the auctions to check out the equipment and then bid
on the pieces they need for their next job. These are not
discretionary purchases."
Gross
auction sales were $843.0 million for the nine months ended
September 30, 2001, generating auction revenues of $77.3
million, compared to Gross Auction Proceeds of $874.8 million
and auction revenues of $77.9 million for the nine months
ended September 30, 2000. Net income after tax for the first
nine months of 2001, excluding a one-time charge for withholding
taxes recorded in the second quarter, was $10.5 million
or $0.62 per diluted weighted average share, compared to
$11.2 million or $0.67 per diluted share in the comparable
2000 period.
As
a percentage of Gross Auction Proceeds, auction revenues during
the nine months ended September 30, 2001 were 9.17%, higher
than the rate of 8.90% experienced during the comparable
2000 period and higher than RBA's longer-term average.
The
lower than expected sales volumes during the third quarter
led to a loss of $0.06 per diluted share, compared to income
of $0.09 per diluted share during the third quarter of 2000.
Russell Cmolik, President and COO of Ritchie Bros. commented
that "the loss in the third quarter is attributable
to the unprecedented rescheduling of three auctions into
the fourth quarter. Our earnings outlook for the full year
has not changed. In fact, the current economic environment
is creating many opportunities for Ritchie Bros. and our
recent infrastructure investments have given us the capacity
and the tools to take advantage of these opportunities."
Commenting
on one of the Company's Internet initiatives, Mr. Ritchie
stated: "In September, we began using our new rbauctionBid-Live
service at selected auctions, allowing customers from around
the world to participate live and in real-time in our auctions
over the Internet. Response from customers has been excellent
and we plan to offer this service for more of our auctions
in the near future."
The
Company also announced that it would be implementing a small
lot administrative fee in 2002. The fee will recover costs involved
in handling the large number of labour-intensive but low
value lots sold by the Company. The 10% fee will be added
to the auction price of lots selling for 2,500 (in auction
sale currency) or less. Because the vast majority of its
sales relate to higher value items, the Company expects
that the fee will be applicable to about 3% of its gross
auction sales.
Ritchie
Bros. is the world's leading auctioneer of industrial equipment,
operating through over 80 locations throughout North, South
and Central America, Europe, Asia, Australia and the Middle
East. The Company sells, through unreserved public auctions,
a broad range of used industrial equipment including equipment
utilized in the construction, transportation, mining, forestry,
petroleum and agricultural industries. Ritchie Bros. is
a public company; its common shares trade on the New York
Stock Exchange under the ticker symbol RBA. It maintains
a web site at www.rbauction.com.
Gross
auction sales represent the aggregate selling prices of
all items sold at auction; auction revenues consist principally
of commissions earned and net profit on the sale of equipment
purchased and sold by RBA as principal. All amounts are
stated in US Dollars.
Please
note: Ritchie Bros. is hosting a conference call to discuss
its 2001 Q3 financial results at 8:00am Pacific (11:00am
Eastern) on Tuesday, November 6, 2001. To access a live
broadcast of the conference call, please go to the Ritchie
Bros. website http://www.rbauction.com, click on 'About
Ritchie Bros.' then click on 'Investor Information'. Please
go to the website at least fifteen minutes early to download
and install any necessary audio software. A replay will
be available on the website shortly after the call.
Safe
Harbor Statement under the Private Securities Litigation
Reform Act of 1995: The discussion in this press release
relating to future operating periods contains forward-looking
statements (as defined in Section 21E of the Securities
Exchange Act of 1934, as amended) that involve risks and
uncertainties, including, in particular, statements regarding
anticipated activities and results for the remainder of
2001 and future years. These risks and uncertainties include:
the many factors that impact on the supply of and demand
for used equipment; fluctuations in the market values of
used equipment; periodic and seasonal variations in operating
results; potential delays in construction or development
of auction sites; actions of competitors; and other risks
and uncertainties as detailed from time to time in the Company's
SEC reports. Actual results may differ materially. The Company
does not undertake any obligation to update the information
contained herein, which speaks only as of this date.
Contact:
Bob Armstrong, Investor Relations
Ritchie Bros. Auctioneers
Tel: (604) 273-7564 or 1-800-663-8457
Email: barmstrong@rbauction.com
| Consolidated
Statements of Income (USD thousands) |
|
|
9
mos ended
30/9/2001
|
9
mos ended
30/9/2000
|
| Gross
auction sales |
$
843,008
|
$
874,832
|
 |
|
|
|
| |
|
|
|
| Auction
revenues |
$
77,321
|
$
77,893
|
| Direct
expenses |
12,185
|
12,742
|
|
|
65,136
|
65,151
|
|
|
|
|
| Expenses
|
|
|
|
|
Depreciation
and amortization |
6,648
|
5,806
|
|
General
and administrative |
42,783
|
41,450
|
|
|
|
|
| Income
from operations |
15,705
|
17,895
|
|
|
|
|
| Other
income (expenses) |
|
|
|
Interest
expense |
(3,093)
|
(2,514)
|
|
Other
income |
957
|
1,010
|
|
|
|
|
| Income
before income taxes |
13,569
|
16,391
|
|
|
|
|
| Income
taxes |
3,111
|
5,170
|
| Withholding
taxes on intercompany dividend |
2,000
|
000
|
|
|
|
|
| Net
income |
$
8,458
|
$
11,221
|
|
|
|
|
| |
|
|
|
| Net
income per share |
$
0.50
|
$
0.67
|
|
|
|
|
| Net
income per share - diluted |
$
0.50
|
$
0.67
|
|
|
|
|
| Net
income (excluding one-time withholding tax) |
$
10,458
|
$
11,221
|
|
|
|
|
|
|
|
|
| Net
income per share (excluding one-time withhold tax) |
$
0.62
|
$
0.67
|
|
|
|
|
| Net
income per share - diluted (excluding one-time withhold
tax) |
$
0.62
|
$
0.67
|
|
|
|
|
| Weighted
average shares outstanding |
16,759,653
|
16,741,898
|
| Diluted
weighted average shares outstanding |
16,863,539
|
16,860,645
|
|
|
|
|
|
|
|
|
| Consolidated
Statements of Income (USD thousands) |
3
mos ended
30/9/2001
|
3
mos ended 30/9/2000
|
|
|
|
| Gross
auction sales |
$
179,294
|
$
231,550
|
|
|
|
|
| |
|
|
|
| Auction
revenues |
$
16,851
|
$
21,554
|
| Direct
expenses |
2,433
|
3,449
|
|
|
14,418
|
18,105
|
|
|
|
| Expenses
|
|
|
|
Depreciation
and amortization |
2,376
|
2,100
|
|
General
and administrative |
13,887
|
13,411
|
|
|
|
|
| Income
from operations |
(1,845)
|
2,594
|
|
|
|
|
| Other
income (expenses) |
|
|
|
Interest
expense |
(1,061)
|
(858)
|
|
Other
income |
345
|
425
|
|
|
|
|
| Income
(loss) before income taxes |
(2,561)
|
2,161
|
|
|
|
|
| Income
taxes (recovery) |
(1,606)
|
658
|
|
|
|
|
| Net
income (loss) |
$
(955)
|
$
1,503
|
|
|
|
|
| |
|
|
|
| Net
income (loss) per share |
$
(0.06)
|
$
0.09
|
| Net
income per share - diluted (US GAAP) |
$
(0.06)
|
$
0.09
|
|
|
|
|
| Weighted
average shares outstanding |
16,765,354
|
16,746,314
|
| Diluted
weighted average shares outstanding (US GAAP) |
16,872,613
|
16,858,074
|
|
|
|
|
|
|
|
|
| Selected
Balance Sheet Data (USD thousands) |
30/9/2001
|
30/9/2000
|
|
|
|
|
| Working
capital |
$ 20,946
|
$
16,378
|
| Total
assets |
327,536
|
326,725
|
| Long-term
debt |
61,926
|
46,712
|
| Total
shareholders' equity |
154,611
|
141,660
|
|
|
|
|
| Selected
Operating Data |
30/9/2001
|
30/9/2000
|
|
|
|
|
| Auction
revenues as percentage of Gross Auction Proceeds (9 mos)
|
9.17%
|
8.9%
|
| Number
of consignors (9 mos) |
13,146
|
12,778
|
| Number
of buyers (9 mos) |
30,483
|
29,159
|
| Number
of permanent auction sites |
21
|
20
|
| Number
of regional auction units |
5
|
5
|
| |
|
|
|
For
further information, please contact:
Contact:
Bob Armstrong, Investor Relations
Ritchie Bros. Auctioneers
Tel: +1.778.331.5500 or +1.800.663.8457
Email: barmstrong@rbauction.com
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