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VANCOUVER, BRITISH COLUMBIA -- Ritchie Bros. Auctioneers
Incorporated (NYSE:RBA) today announced several planned
changes to its senior management team and an expansion of
its operations in Northern Alberta.
Management Changes
C. Russell Cmolik, President and Chief Operating Officer
of Ritchie Bros. will be retiring from the Company on August
31, 2002. In announcing his plans to employees and the Company's
Board of Directors, Russ noted: "During my 29 years
with Ritchie Bros. we have enjoyed continuous growth and
have built a great organization. In the past 5 years alone
we have doubled the size of the Company, dramatically expanded
our network of offices and auction sites around the world,
and launched Internet initiatives that have placed us at
the forefront of technology in the used equipment world.
I am extremely proud to have been a part of these accomplishments."
David E. Ritchie, Chairman and CEO of the Company commented:
"Russ has done a tremendous job of managing our operations;
and he has built a management team that is ready to step
up to the plate and take this company forward." According
to Russ, "I have always viewed the development of our
young managers as my number one responsibility. Watching
them grow into leaders has been the best part of my job.
The team that will be running the Company has an incredible
depth of talent and experience. My retiring from the Company
at this time will result in a smooth transition and that
is the most valuable way for me to contribute to the long
term success of Ritchie Bros. The Company has never been
in better hands." Russ remains a member of the Board
of Directors and intends to maintain a significant ownership
position in the Company.
According to Dave Ritchie, "On behalf of all Ritchie
Bros. employees and customers, I want to thank Russ for
his many years of dedication, leadership and plain old hard
work. The Ritchie Bros. of 2002 is a very different company
than the one we were running 30 years ago and Russ deserves
much of the credit. We have never been better positioned
to take advantage of the numerous opportunities in front
of us. Russ' legacy will undoubtedly be the management bench
strength he developed and I am firmly committed to working
with this team as we take the Company to the next level."
Russ added: "The other members of our management team
are ready, willing and able to lead this Company. I have
enjoyed more than my fair share of accomplishments - it's
time to let the rest of the guys have some of the fun."
Several members of Ritchie Bros. current senior management
team will assume new responsibilities. David E. Ritchie
remains Chairman and CEO. Dave has been with the Company
since founding it with his brothers in the 1950s. On behalf
of the Board of Directors, Dave is pleased to announce the
following management appointments, effective July 1, 2002:
Randall J. Wall will assume the position of President and
Chief Operating Officer and will report to Dave Ritchie.
Randy, age 42, has been with Ritchie Bros. for 14 years
and has held numerous head office and field management positions
with the Company, including Manager of Auction Site Development,
Manager of Training, Territory Manager (front line sales
representative), and three years based in Europe as Managing
Director of European and Middle Eastern Operations. He is
currently Senior Vice President responsible for the Company's
operations in Europe, the Middle East, Africa and the Eastern
half of North America. Randy is a Chartered Accountant and
worked with predecessor firms of KPMG before joining Ritchie
Bros. in 1988.
Peter J. Blake, age 40, will be promoted to Senior Vice
President and will retain his position as Chief Financial
Officer. He will report to Randy Wall. Peter, a Chartered
Accountant, has been with Ritchie Bros. for 11 years and
has been a Director of the Company for the past 4 years.
Robert K. Mackay, currently Senior Vice President responsible
for the Company's operations in Asia, Australia, South America
and the Western half of North America, will be promoted
to the position of Executive Vice President and will report
to Randy Wall. Rob is 46 years old and has been with Ritchie
Bros. for 17 years.
Roger W. Rummel, currently Vice President - Southwest US
and Mexico Divisions, will be promoted to Senior Vice President
and will report to Rob Mackay. Roger, age 54, was one of
the partners of Ritchie Bros. prior to the Company's initial
public offering and has been with the Company for 20 years.
He is based at the Company's Phoenix, AZ auction facility.
Robert K. Whitsit, currently Vice President - Southeast
US Division, will be promoted to Senior Vice President and
will report to Randy Wall. Rob was President of Forke Brothers
prior to the acquisition of that auction company by Ritchie
Bros. in 1999. His combined experience in the industrial
auction business spans 24 years. Rob is age 57 and is based
at the Company's Atlanta, GA auction facility.
The depth of experience of these managers is extensive
- as a group, they have over 125 years of experience in
the industrial auction business. Together, these six senior
managers will form the Ritchie Bros. Executive Committee.
Alberta Expansion
In an unrelated development, the Company is announcing
an initiative designed to bolster its presence in the used
equipment market in Northern Alberta. Ritchie Bros. and
All Peace Auctions (a Grande Prairie, Alberta based auctioneer
of industrial and agricultural equipment) have signed a
Letter of Understanding and are now working towards a definitive
agreement that will see the All Peace operations becoming
part of the Ritchie Bros. organization. According to Dave
Ritchie, "expanding our presence in Northern Alberta
is important for Ritchie Bros. because of the increasing
amount of equipment being deployed in that region. Adding
the All Peace team and their Grande Prairie auction facility
will allow us to take better advantage of the growth opportunities
in Northern Alberta. In addition, All Peace has a successful
on-site farm auction division that fits with our strategy
to increase sales of agricultural equipment but which services
a very different market than the ones on which we have been
concentrating. By adding this division, we will be gaining
a new revenue stream and a new opportunity for expansion."
Kevin Tink, President of All Peace Auctions, and Dennis
Tink, Agricultural Sales Manager, will be assuming management
positions with Ritchie Bros. According to Kevin Tink, "We
are extremely proud of the strong customer relationships
we have developed in the industrial and agricultural auction
businesses. By concentrating on providing the highest level
of customer service, we have been able to build our company
from a small family operation into one of the most respected
auction companies in Canada. In order to take our business
to a higher level and expand our operations to the fullest
extent possible, we have decided to join the Ritchie Bros.
team. Having access to the Ritchie Bros. network of people
and facilities will allow us to offer a broader array of
services to our customers. The Ritchie Bros. people share
our commitment to customer service so we know that our customers
and employees will feel right at home."
Terms of the transaction were not released.
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
the Company's planned management changes, planned All Peace
transaction and the Company's future operating results.
These risks and uncertainties include: the Company's ability
to source equipment for its auctions; 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 the
construction or development of auction sites; actions of
competitors; the ability of the Company to execute its Internet
strategy; the ability to consummate the All Peace transaction;
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.
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For further information, please contact:
Bob Armstrong
VP - Investor Relations
Phone: +1.604.273.2101
Fax: +1.604.273.2405
Email: barmstrong@rbauction.com
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