Ritchie Bros. Reports Third Quarter 2016 Results | Construction News

During the third quarter of 2016, Ritchie Bros. Auctioneers reports it generated $128.9 million of revenue, an 18% increase compared to revenues of $109.3 million in the third quarter last year, and net loss attributable to stockholders for the third quarter of $5.1 million, a 125% decrease compared to $20.8 million in the same period last year. This quarter's results were impacted by a $28.2 million non-cash impairment charge related to the company's EquipmentOne reporting unit goodwill and customer relationships.

During the first nine months of 2016, the company generated $419.6 million of revenue, a 10% increase compared to revenues of $380.4 million in the first nine months of 2015. Net income attributable to stockholders for the first nine months was $64 million, a 29% decrease from $89.7 million in the same period last year. Adjusted net income attributable to stockholders (non-GAAP measure) for the first nine months, which excludes the impact of the EquipmentOne impairment, was $90.4 million, a 1% increase from the same period last year.  Diluted EPS during the first nine months was $0.60, a 28% decrease from $0.83 in the comparable period last year. Diluted adjusted EPS attributable to stockholders (non-GAAP measure) for the first nine months, which excludes the impact of the EquipmentOne impairment, was $0.84, a 1% increase from the first nine months last year.

"We were pleased with the overall growth of the company in Q3 2016, with GAP up 12% and revenues up 18% versus the same quarter last year," said Ravi Saligram, CEO of Ritchie Bros. "The company continues to be a strong cash generator and has delivered $163 million in operating cash flow during the first nine months of the year. Core auction performance was strong this quarter due to double digit GAP growth, stabilized pricing, excellent performance of underwritten contracts and record auctions in both the U.S. and Canada."

"With our strong core auction business and the acquisition of IronPlanet, we are excited about our journey to becoming a unique multi-channel equipment disposition company, providing unprecedented choice to customers through both on site and online sales solutions," Saligram said. "We have already filed our HSR submission with the Department of Justice in connection with this acquisition and have started integration planning in earnest."