Ritchie Bros. Sets Company Records in 2015 | Construction News

Ritchie Bros. Auctioneers Inc. reportedly sold approximately $4.25 billion of equipment through 345 unreserved auctions and its online equipment marketplace during 2015. This is a new annual record for the company, and it represents a 1% increase in gross auction proceeds (GAP) compared to 2014. GAP growth from Ritchie Bros.' international operations was muted by the depreciation of local currencies against the U.S. dollar. On an organic basis, using foreign exchange rates consistent with comparable periods last year to remove the negative translational impact of reporting in US dollars, GAP grew 8% in 2015 compared to 2014.

According to the company, much of the growth can be attributed to its success in Canada, where GAP grew 14% in local currency, and the US, where GAP grew 7%. In the fourth quarter, the company said pricing softness affected the used equipment market, as well as GAP performance, but it expects there will be growth opportunities in 2016.

In 2015, Ritchie Bros further integrated EquipmentOne into its sales and marketing initiatives and built a stronger platform to grow its business through both organic growth initiatives and acquisitions. "We see many opportunities to acquire companies that could expand the breadth of our services and scale of our operations," the company said in a press release.

During the fourth quarter of 2015, the Ritchie Bros. generated gross auction proceeds of $1.1 billion, a decrease of 9% compared to the record fourth quarter GAP achieved last year. On an organic basis, GAP declined 1% during the fourth quarter of 2015 compared to the fourth quarter of 2014. Market values of used equipment declined during the quarter, which contributed to the decline in GAP.

Ritchie Bros. conducted its final unreserved auctions of 2015 on Dec. 18 in Los Angeles and Kansas City, Mo. The company plans to release its full audited financial results for 2015 after market close on February 25, 2015.  

Key growth sectors for Ritchie Bros. in 2015 were transportation and agricultural industries. GAP from transportation sector assets increased 23% from 2014 to US$797+ million in 2015. During the year, Ritchie Bros. sold more than 17,300+ transport trucks (truck tractors), a 36% increase in lots from last year, for US$426+ million, a 37% increase in GAP from 2014.

During 2015, Ritchie Bros. held 116 agricultural auctions in Canada and the United States. GAP from agricultural and related real estate assets decreased 5% from 2014, to US$414+ million in 2015.Lots sold from the agricultural sector increased 6% globally during 2015, relative to 2014, demonstrating volume growth from this important sector.  Foreign exchange translation had a disproportionate impact on reported GAP from this sector, as the majority of Ritchie Bros. agricultural auctions occur in Canada.  In Canada, GAP from the agricultural sector increased 11% on a local currency basis.

Ritchie Bros. sold more than US$2.1 billion of equipment and trucks in the United States during 2015 – a 7% increase from 2014, and a new record for the company's US operations. GAP growth was generated by strong performance from many regions across the US, including:

  • A 61% increase in GAP sold in Colorado
  • A 62% increase in GAP sold in Ohio
  • A 65% increase in GAP sold in Utah
  • A 66% increase in GAP sold in New Hampshire

A number of company records were broken in the United States in 2015, including:

  • 10,500+ items sold (a company record) at the Orlando, Florida auction on February 16 – 20, 2015, for US$179 million. 
  • The largest single-consignor auction in Ritchie Bros. history, in Casper, Wyoming on March 25, 2015, where US$54 million of cranes, trucks, trailers and other equipment was sold in one day at an offsite auction.
  • The most productive year ever for Ritchie Bros.' Houston and Fort Worth, TX, auction sites.  The Houston site sold more than 19,700 lots during 2015, generating US$238+ million in GAP.  The Fort Worth auction site sold more than 18,800+ lots during 2015, generating US$280+ million in GAP.
  • The following auction sites all achieved their largest-ever auctions during 2015:  Salt Lake City, UT (March 17, 2015); Denver, CO (June 11 – 12, 2015); Fort Worth, TX (September 23 – 24, 2015); St. Louis, MO (December 16, 2015)

Ritchie Bros. sold more than CA$1.6 billion (US$1.3+ billion) of equipment and trucks in Canada during 2015 – a 14% increase from 2014, and a new record for the company's Canadian operations. A number of other company records were broken in Canada this year, including:

  • Ritchie Bros.' Edmonton, AB auction site sold 38,250+ equipment items during the year for CA$731+ million (US$576+ million) during the year, representing an 18% increase in lots sold and a 28% increase in GAP sold in Edmonton compared to 2014.
  • The company held its largest Canadian auction ever, in Edmonton on April 28 – May 1, 2015. More than 7,700 assets were sold at the auction, for total GAP of CA$215 million (US$177 million).  Approximately CA$105+ million of the auction sales were sold to online bidders (a new company-wide record), representing 49% of sales.  The auction also attracted 14,000 bidders from more than 55 countries – another company-wide record.
  • Ritchie Bros.' Montreal, QC auction site achieved its largest auction ever, at its March 18-19, 2015 event. More than 2,700 equipment items sold for CA$44+ million (US$34+ million).  The auction also achieved new site records for online sales (CA$20+ million), and total bidders (5,800+).
  • Ritchie Bros. also held its largest ever auctions in Lethbridge, AB (November 17) and Toronto, ON (December 7-8) in 2015.

During 2015, approximately 16% of GAP was generated by international buyers (successful bidders located outside the country of the sale). The proportion of international buyers declined slightly, from 19% in 2014, as a result of foreign exchange changes and the relative purchasing power of international buyers at some auctions, primarily sales in the United States. Approximately 10% of GAP generated in the United States was generated by international buyers, a decline from 14% in 2014 when the US dollar had not yet strengthened significantly relative to other currencies. Within the United States, Ritchie Bros. also witnessed stronger demand from local bidders, with 38% of winning bidders residing within the state of the auction, an increase from 34% in 2014.

Ritchie Bros. attracted record online bidder registrations and sold approximately $1.9 billion of equipment, trucks and other assets to online buyers at Ritchie Bros. auctions and EquipmentOne customers in 2015, a 6% increase over 2014 and the highest amount ever sold online by the company in one year.

EquipmentOne, thecompany's online equipment marketplace, has generated more than US$116 million in Gross Transaction Value (GTV) so far in 2015, representing 9%+ growth over last year.  The business achieved profitability on an annual basis during 2015, demonstrating the growth potential of this important sales channel. 

Ritchie Bros. Financial Services (RBFS) provided over US$220 million of financing to equipment buyers so far this year, a new record for this growing business and a 30% increase in financing activity compared to 2014.  RBFS works with select lending partners to find financing solutions for customers purchasing equipment, including loans and lease-to-own programs. RBFS does not utilize Company capital in its financing activities. During 2015, Ritchie Bros. Financial Services also expanded the services it offers customers, by offering equipment leases and structured finance solutions.


Upcoming auctions
There are currently 94 unreserved auctions on the 2016 Ritchie Bros. auction calendar, including:

Ocana, Spain on January 28, 2016
Las Vegas, Nevada on February 5, 2016
Phoenix, Arizona on February 9, 2016
Houston, Texas on February 10 – 11 , 2015
Tipton, California on February 12, 2016
Orlando, Florida (a five-day auction) on February 15 – 19, 2016
Donington Park, United Kingdom on February 23, 2016
Edmonton, Alberta on February 24 – 25, 2016
Hamilton, New Zealand on February 25, 2016
Moerdijk, The Netherlands on February 25 – 26, 2016