Ms. Ann Fandozzi reports

RITCHIE BROS. REPORTS FIRST QUARTER 2023 RESULTS

Ritchie Bros. Auctioneers Inc. has released its results for the three months ended March 31, 2023. All figures are presented in United States dollars.

"We believe Ritchie Bros.' excellent first quarter is a testament to our team's hard work, unwavering focus on driving results and the strength of our marketplace platforms," said Ann Fandozzi, Ritchie Bros. chief executive officer. "The IAA integration is off to a positive start, reinforcing the compelling value creation opportunities that our combined platforms can create."

Eric Jacobs, chief financial officer of Ritchie Bros., added: "We remain pleased with our financial performance. gross transaction value (GTV) growth exceeded our outlook due to accelerated fleet realignment by customers in the latter part of the quarter. The pro forma full quarter results of IAA were in line with our expectations. We remain confident in our ability to build on our combined momentum to deliver profitable growth as we integrate our businesses."

First quarter financial and business metric highlights:

• GTV increased 32 per cent year-over-year to $1.9-billion, which includes $314.8-million from the impact of the acquisition of IAA Inc., and increased 34 per cent when excluding the impact of foreign exchange.
• Total revenue increased 30 per cent year-over-year to $512.4-million, which includes $80-million from the impact of the acquisition of IAA:
  • Service revenue increased 40 per cent year-over-year to $343.6-million, which includes $67.1-million from the impact of the acquisition of IAA.
  • Inventory sales revenue increased 13 per cent year-over-year to $168.8-million, which includes $12.8-million from the impact of the acquisition of IAA.
• Net income decreased to a loss of $28.2-million.
• Diluted (loss) earnings per share available to common stockholders decreased to a loss of 28 cents per share.
• Diluted adjusted earnings per share available to common stockholders increased 24 per cent year-over-year to 57 cents per share.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) increased 26 per cent year-over-year to $132.6-million.

The associated table presents the selected results from RBA and IAA.

For the first quarter:

• GTV increased 32 per cent year-over-year to $1.9-billion, primarily from the inclusion of $314.8-million GTV from IAA. Excluding the impact of the IAA acquisition, GTV increased 10 per cent year-over-year, driven by a continued and significant rebound in lot volumes, partially offset by lower prices, unfavourable asset mixes, and the unfavourable impact of foreign exchange.
• Service revenue increased 40 per cent year-over-year to $343.6-million, primarily from the inclusion of IAA and higher marketplace services revenue, which was driven by increased activity in ancillary service businesses and activities, as well as higher buyer fees.
• Inventory sales revenue increased 13 per cent year-over-year mainly due to the inclusion of IAA. Inventory rate was 10.2 per cent.
• Net income available to common stockholders decreased to a loss of $34.2-million, mainly due to higher acquisition-related and integration costs, and the non-repeat of the sale of the Bolton property in the prior year.
• Adjusted EBITDA increased 26 per cent year-over-year, mainly driven by the inclusion of IAA and higher revenue, partially offset by higher event-related costs, continued investments in the company's sales teams and other growth initiatives.
• Debt/net income was 28.6 times at and for the 12 months ended March 31, 2023.
• Adjusted net debt/adjusted EBITDA was 5.4 times at and for the 12 months ended March 31, 2023.

Dividend information

Quarterly dividend

On May 9, 2023, the company declared a quarterly cash dividend of 27 cents per common share, payable on June 20, 2023, to shareholders of record on May 30, 2023.

First quarter 2023 earnings conference call

Ritchie Bros. is hosting a conference call to discuss its financial results for the quarter ended March 31, 2023, at 2 p.m. PT (5 p.m. ET, 10 p.m. GMT) on May 10, 2023. The replay of the webcast will be available through June 1, 2023.

Conference call and webcast details are available on-line.

About Ritchie Bros. Auctioneers Inc.

Ritchie Bros. is a trusted global marketplace for insights, services and transaction solutions for commercial assets and vehicles. The company's selling channels include Ritchie Bros. Auctioneers, the world's largest auctioneer of commercial assets and vehicles offering on-line bidding; IronPlanet, an on-line marketplace with weekly featured auctions and providing the exclusive IronClad Assurance equipment condition certification; Marketplace-E, a controlled marketplace offering multiple price and timing options. Ritchie List, a self-serve listing service for North America; and Mascus, a leading European on-line equipment listing service. The company's suite of solutions also includes Ritchie Bros. Asset Solutions and Rouse Services LLC, which together provide a complete end-to-end asset management, data-driven intelligence and performance benchmarking system; SmartEquip, an innovative technology platform that supports customers' management of the equipment life cycle, and integrates parts procurement with both OEMs (original equipment manufacturers) and dealers; plus equipment financing and leasing through Ritchie Bros. Financial Services. Additionally, leveraging leading-edge technology and focusing on innovation, IAA's unique platform facilitates the marketing and sale of total-loss, damaged and low-value vehicles. IAA serves a global buyer base -- located throughout over 170 countries -- and a full spectrum of sellers, including insurers, dealerships, fleet lease and rental car companies, and charitable organizations. Buyers have access to multiple digital bidding and buying channels, innovative vehicle merchandising, and efficient evaluation services, enhancing the overall purchasing experience. IAA offers sellers a comprehensive suite of services aimed at maximizing vehicle value, reducing administrative costs, shortening selling cycle time and delivering the highest economic returns.

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