WESTCHESTER, Ill., Feb. 23, 2024 /PRNewswire/ – RB Global, Inc. (NYSE:RBA) & (TSX:RBA), the “Company”, “RB Global”, “we”, “us”, “their”, or “our”) reported the following results for the three months and year ended December 31, 2023.
“All of our sectors contributed to solid GTV growth, fueled by our team’s dedication to consistently over deliver on the commitments we make to our customers,” said Jim Kessler, CEO of RB Global. “I am proud of the steady operational improvement in our automotive sector, and the momentum from our efforts to integrate IAA is fueling a broader focus on operational excellence across the entire organization.”
Commenting on the results, Eric J. Guerin, Chief Financial Officer, said, “We capped off the year with strong financial performance and a notable reduction in leverage, a testament to the Company’s sound strategy and execution.”
Fourth Quarter Financial Highlights123:
GTV increased 160% year-over-year to $4.0 billion, which includes $2.2 billion from the impact of the acquisition of IAA, Inc. (“IAA”).
Total revenue increased 134% year-over-year to $1.0 billion, which includes $559.2 million from the impact of the acquisition of IAA.
Service revenue increased 197% year-over-year to $809.1 million, which includes $488.0 million from the impact of the acquisition of IAA.
Inventory sales revenue increased 35% year-over-year to $231.8 million, which includes $71.2 million from the impact of the acquisition of IAA.
Net income available to common stockholders increased 65% year-over-year to $74.8 million.
Diluted earnings per share available to common stockholders increased 2% to $0.41 per share.
Diluted adjusted earnings per share available to common stockholders increased 21% year-over-year to $0.82 per share.
Adjusted EBITDA increased 153% year-over-year to $307.5 million.
2024 Financial Outlook
The table below outlines the Company’s outlook for select full-year 2024 financial data:
Year ended December 31,
2024
(in U.S. dollars in millions, except percentages)
Low-End
High-End
GTV growth4
1 %
4 %
Adjusted EBITDA
$1,170
$1,230
Full year 2024 tax rate (GAAP and Adjusted)
25 %
28 %
Capital Expenditures5
$275
$325
The Company has not provided a reconciliation of Adjusted EBITDA outlook for fiscal 2024 to GAAP net income, the most directly comparable GAAP financial measure, because without unreasonable efforts, it is unable to predict with reasonable certainty the amount or timing of non-GAAP adjustments that are used to calculate Adjusted EBITDA, including but not limited to: (a) advisory, legal and restructuring expenses, (b) the net loss or gain on the sale of property plant & equipment or other assets (c) acquisition-related or integration costs relating to our M&A activity, including severance costs (d) share-based payments compensation expense which value is directly impacted by the fluctuations in our share price and other variables and, (e) other expenses that we do not believe are indicative of our ongoing operations. These adjustments are uncertain, depend on various factors that are beyond our control and could have a material impact on net income for fiscal 2024.
_____________________________________
1
For information regarding RB Global’s use and definition of certain measures, see “Key Operating Metrics” and “Non-GAAP Measures” sections in this press release.
2
All figures are presented in U.S. dollars.
3
For the fourth quarter of 2023 as compared to the fourth quarter of 2022.
4
Compared to pro forma combined 2023 results
5
Capital expenditures is defined as property, plant and equipment, net of proceeds on disposals, plus intangible asset additions
Additional Financial and Operational Highlights
(Unaudited)
Three months ended December 31,
Year ended December 31,
% Change
% Change
(in U.S. dollars in millions, except EPS and percentages)
2023
2022
2023 over 2022
2023
2022
2023 over 2022
GTV
$ 4,012.0
$ 1,544.3
160 %
$ 13,930.6
$ 6,025.9
131 %
Service revenue
809.1
272.6
197 %
2,732.5
1,050.6
160 %
Service revenue take rate
20.2 %
17.7 %
250bps
19.6 %
17.4 %
220bps
Inventory sales revenue
$ 231.8
$ 171.3
35 %
$ 947.1
$ 683.2
39 %
Inventory return
11.6
17.8
(35) %
53.5
74.6
(28) %
Inventory rate
5.0 %
10.4 %
(540)bps
5.6 %
10.9 %
(530)bps
Net income
$ 84.2
$ 45.4
85 %
$ 206.0
$ 319.8
(36) %
Net income available to common stockholders
74.8
45.3
65 %
174.9
319.7
(45) %
Adjusted EBITDA
307.5
121.5
153 %
1,032.8
465.2
122 %
Diluted earnings per share available to common stockholders
$ 0.41
$ 0.40
2 %
$ 1.04
$ 2.86
(64) %
Diluted adjusted earnings per share available to common stockholders
$ 0.82
$ 0.68
21 %
$ 2.99
$ 2.41
24 %
GTV by Geography
Three months ended December 31,
Year ended December 31,
% Change
% Change
(in U.S. dollars in millions, except percentages)
2023
2022
2023 over 2022
2023
2022
2023 over 2022
United States
$ 2,906.1
$ 853.4
241 %
$ 10,266.1
$ 3,432.4
199 %
Canada
737.8
456.1
62 %
2,460.8
1,707.1
44 %
International
368.1
234.8
57 %
1,203.7
886.4
36 %
Total GTV
$ 4,012.0
$ 1,544.3
160 %
$ 13,930.6
$ 6,025.9
131 %
GTV by Sector
Three months ended December 31,
Year ended December 31,
% Change
% Change
(in U.S. dollars in millions, except percentages)
2023
2022
2023 over 2022
2023
2022
2023 over 2022
Automotive
$ 2,053.1
$ 48.0
4,177 %
$ 6,551.2
$ 186.0
3,422 %
Commercial construction and transportation
1,423.9
1,069.7
33 %
5,449.8
4,252.9
28 %
Other
535.0
426.6
25 %
1,929.6
1,587.0
22 %
Total GTV
$ 4,012.0
$ 1,544.3
160 %
$ 13,930.6
$ 6,025.9
131 %
Lots Sold by Sector
Three months ended December 31,
Year ended December 31,
% Change
% Change
(in ‘000’s of lots sold, except percentages)
2023
2022
2023 over 2022
2023
2022
2023 over 2022
Automotive
573.2
5.8
9,783 %
1,790.1
21.0
8,424 %
Commercial construction and transportation
86.9
48.9
78 %
314.5
181.5
73 %
Other
126.7
116.6
9 %
500.2
415.3
20 %
Total Lots
786.8
171.3
359 %
2,604.8
617.8
322 %
The following table presents the selected unaudited results from Ritchie Bros. and IAA:
Three months ended December 31, 2023
Year ended December 31, 2023
(in U.S. dollars in millions)
Ritchie Bros.
IAA
Total
Ritchie Bros.
IAA *
Total
Commissions
$ 143.0
$ 90.5
$ 233.5
$ 536.5
$ 275.9
$ 812.4
Buyer fees
99.7
369.0
468.7
382.3
1,144.4
1,526.7
Marketplace services revenue
78.4
28.5
106.9
303.7
89.7
393.4
Total service revenue
321.1
488.0
809.1
1,222.5
1,510.0
2,732.5
Inventory sales revenue
160.6
71.2
231.8
700.2
246.9
947.1
Total revenue
$ 481.7
$ 559.2
$ 1,040.9
$ 1,922.7
$ 1,756.9
$ 3,679.6
Service GTV
$ 1,637.5
$ 2,142.7
$ 3,780.2
$ 6,256.8
$ 6,726.7
$ 12,983.5
Inventory GTV
160.6
71.2
231.8
700.2
246.9
947.1
Total GTV
$ 1,798.1
2,213.9
$ 4,012.0
$ 6,957.0
6,973.6
$ 13,930.6
Total service revenue take rate
17.9 %
22.0 %
20.2 %
17.6 %
21.7 %
19.6 %
* Includes financial results of IAA in our consolidated financial statements for the year ended December 31, 2023 since its acquisition on March 20, 2023.
Supplemental Pro Forma Revenue Related Highlights1
(Unaudited)
Three months ended December 31,
Year ended December 31, 2023
% Change
% Change
(in U.S. dollars in millions, except percentages)
2023
2022
2023 over 2022
2023
2022
2023 over 2022
GTV
$ 4,012.0
$ 3,548.0
13 %
$ 15,753.4
$ 14,360.0
10 %
Service revenue
809.1
709.0
14 %
3,134.0
2,736.0
15 %
Service revenue take rate
20.2 %
20.0 %
20 bps
19.9 %
19.1 %
80 bps
Inventory sales revenue
$ 231.8
$ 258.0
(10) %
$ 1,022.2
$ 1,096.0
(7) %
Inventory return
11.6
29.0
(60) %
60.1
118.0
(49) %
Inventory rate
5.0 %
11.2 %
(620) bps
5.9 %
10.8 %
(490) bps
Supplemental Pro Forma GTV by Sector1
Three months ended December 31,
Year ended December 31,
% Change
% Change
(in U.S. dollars in millions, except percentages)
2023
2022
2023 over 2022
2023
2022
2023 over 2022
Automotive
$ 2,053.1
$ 1,868.5
10 %
$ 8,207.2
$ 7,828.4
5 %
Commercial construction and transportation
1,423.9
1,186.9
20 %
5,562.1
4,740.7
17 %
Other
535.0
492.6
9 %
1,983.7
1,790.7
11 %
Total GTV
$ 4,012.0
$ 3,548.0
13 %
$ 15,753.0
$ 14,359.8
10 %
Supplemental Pro Forma Lots Sold by Sector1
Three months ended December 31,
Year ended December 31,
% Change
% Change
(in ‘000’s of lots sold, except percentages)
2023
2022
2023 over 2022
2023
2022
2023 over 2022
Automotive
573.2
534.6
7 %
2,271.0
2,182.4
4 %
Commercial construction and transportation
86.9
67.7
28 %
331.6
251.0
32 %
Other
126.7
137.0
(8 %)
514.1
478.5
7 %
Total Lots
786.8
739.3
6 %
3,116.7
2,911.9
7 %
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1
The tables include quarterly pro forma information that presents the combined results of operations in 2022 and Q1 2023 as if the acquisition of IAA occurred January 1, 2022.
Reconciliation of Operating Expenses
(Unaudited)
The below table reconciles as reported operating expenses by line item to adjusted operating expenses to exclude the impact of adjustments as defined in our Non-GAAP Measures.
For the three months ended December 31, 2023
Cost of services
Cost of inventory sold
Selling, general and
administrative expenses
Acquisition- related and
integration costs
Depreciation and
amortization
Total operating
expenses
(in U.S. dollars in millions)
As reported (unaudited)
$ 327.1
$ 220.2
$ 197.5
$ 20.5
$ 105.3
$ 870.6
Share-based payments expense
—
—
(13.8)
—
—
(13.8)
Acquisition- related and integration costs
—
—
—
(20.5)
—
(20.5)
Amortization of acquired intangible assets
—
—
—
—
(69.6)
(69.6)
(Loss) on disposition of property, plant and
equipment and related costs
—
—
(0.7)
—
—
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