Mr. Jim Kessler reports

RB GLOBAL REPORTS FOURTH QUARTER AND FULL YEAR 2023 RESULTS

RB Global Inc. has released the following results for the three months and year ended Dec. 31, 2023.

"All of our sectors contributed to solid GTV [gross transaction volume] growth, fuelled by our team's dedication to consistently overdeliver on the commitments we make to our customers," said Jim Kessler, chief executive officer 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 fuelling 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 highlights:

• GTV increased 160 per cent year over year to $4-billion, which includes $2.2-billion from the impact of the acquisition of IAA Inc.
• Total revenue increased 134 per cent year over year to $1-billion, which includes $559.2-million from the impact of the acquisition of IAA:
  • Service revenue increased 197 per cent year over year to $809.1-million, which includes $488-million from the impact of the acquisition of IAA.
  • Inventory sales revenue increased 35 per cent 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 per cent year over year to $74.8-million.
• Diluted earnings per share available to common stockholders increased 2 per cent to 41 cents per share.
• Diluted adjusted earnings per share available to common stockholders increased 21 per cent year over year to 82 cents per share.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) increased 153 per cent year over year to $307.5-million.

2024 financial outlook

An attached table outlines the company's outlook for select full-year 2024 financial data.

For the fourth quarter:

• GTV increased 160 per cent year over year to $4-billion, primarily from the inclusion of $2.2-billion GTV from IAA. GTV increased 13 per cent year over year on a pro forma combined basis, with strength across all sectors.
• Service revenue increased 197 per cent year over year to $809.1-million, primarily from the inclusion of $488-million of service revenue from IAA. Service revenue increased 14 per cent year over year on a pro forma combined basis on higher GTV and a higher average service revenue take rate. The service revenue take rate expanded 20 basis points on a pro forma combined basis year over year to 20.2 per cent, driven by growth in marketplace services revenue and a higher average buyer fee rate, partially offset by a lower average commission rate. Growth in marketplace services revenue was driven by higher ancillary revenue and a higher auction-related fee structure in the commercial construction and transportation sector.
• Inventory sales revenue increased 35 per cent year over year, mainly due to the inclusion of $71.2-million of inventory sales revenue from IAA. Inventory sales revenue decreased 10 per cent year over year on a pro forma combined basis on lower automotive and commercial construction and transportation related revenue. Inventory rate declined 620 basis points year over year on a pro forma combined basis to 5.0 per cent. The decline in inventory rate year over year can be attributed to prices declining faster than anticipated between the purchase date and date of sale of inventory in the company's commercial construction and transportation sector and an increase in the average cost of vehicles sold in the company's automotive sector.
• Net income available to common stockholders increased to $74.8-million, mainly due to an increase in operating income, partially offset by higher net interest expense, higher effective tax rate and allocated earnings to Series A senior preferred shareholders.
• Adjusted EBITDA increased 153 per cent year over year, mainly driven by the inclusion of IAA.

Quarterly dividend

On Jan. 19, 2024, the company declared a quarterly cash dividend of 27 cents per common share, payable on March 1, 2024, to shareholders of record on Feb. 9, 2024.

Fourth quarter and full-year 2023 earnings conference call

RB Global is hosting a conference call to discuss its financial results for the quarter ended Dec. 31, 2023, at 8:30 a.m. ET on Feb. 23, 2024. The replay of the webcast will be available through March 23, 2024.

Conference call and webcast details are available on RB Global's website.

About RB Global Inc.

RB Global is a leading omnichannel marketplace that provides value-added insights, services and transaction solutions for buyers and sellers of commercial assets and vehicles worldwide. Through its auction sites and digital platform, RB Global has a wide global presence and serves customers across a variety of asset classes, including automotive, commercial transportation, construction, government surplus, lifting and material handling, energy, mining, and agriculture. The company's marketplace brands include Ritchie Bros., the world's largest auctioneer of commercial assets and vehicles offering on-line bidding; and IAA, a leading global digital marketplace connecting vehicle buyers and sellers. The company's portfolio of brands also includes Rouse Services, which provides a complete end-to-end asset management, data-driven intelligence and performance benchmarking system; SmartEquip Inc., an innovative technology platform that supports customers' management of the equipment life cycle and integrates part procurement with both OEMs (original equipment manufacturers) and dealers; and VeriTread LLC, an on-line marketplace for heavy haul transport.

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