Ritchie Bros. Auctioneers posted net earnings of $79.5 million for the full year of 2012, or $0.74 per diluted share, compared to net earnings of $76.6 million or $0.72 per diluted share for 2011. The company’s auction revenues for 2012 were $438 million compared to $396.1 million for the same period in 2011, an 11-percent increase.
For the fourth quarter, adjusted net earnings were $22.4 million compared to $26.8 million the previous year, a decline of 16 percent.
For the full year, gross auction proceeds were a record $3.9 billion, a 5-percent year-over-year hike. The company’s auction revenue rate — auction revenues as a percentage of gross auction proceeds — was 11.21 percent for the full year, compared to 10.66 percent in 2011.
“2012 was another year of volatility in the used equipment market,” said Peter Blake, Ritchie Bros. CEO. “During the year, we saw competition remain strong, used equipment prices rise then flatten, and ultimately the supply and demand for used equipment became more balanced. Our at-risk business experienced wide variations in performance but, for the year, it performed within our expectations. We reached some great milestones during the year, beyond achieving the highest ever gross auction proceeds of $3.9 billion, which included significant gains in our online presence with over 5 million unique visitors to our website, $1.3 billion in sales to internet bidders at our auctions and over $1 billion of volume at our Canada auctions. These all contributed to another growth year in gross auction proceeds. We felt 2012, even with adjusted net earnings growth of 17 percent excluding costs associated with Asset Nation, was not an optimal year. If we had executed we would have had an even stronger year. This has focused us on executing specific strategies in 2013.”
Ritchie Bros. also launched a new online equipment marketplace called Ritchie Bros. Equipment One. Complementary to the flagship auction business, EquipmentOne is a secure online marketplace for equipment and materials. Buyers and sellers can use RBEO to negotiate, complete and settle their transactions in a safe and transparent environment. Core marketplace functionality has been released and enhancements are being made on an ongoing basis. The next major release and full commercial launch is scheduled for the second quarter of 2013.
Ritchie Bros. Auctioneers is headquartered in Vancouver, B.C., Canada.