UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the quarterly period ended | |
OR | |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from ______ to ______ |
Commission file number:
(Exact Name of Registrant as Specified in its Charter)
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(State or other jurisdiction of incorporation or organization) |
| (I.R.S. Employer Identification No.) |
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(Address of Principal Executive Offices) |
| (Zip Code) |
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(Registrant’s Telephone Number, including Area Code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Share Purchase Rights | N/A | New York Stock Exchange |
Indicate by checkmark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | |
Smaller reporting company | Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act):
Yes
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practical date:
RITCHIE BROS. AUCTIONEERS INCORPORATED
FORM 10-Q
For the quarter ended September 30, 2022
INDEX
1 | ||
Management’s Discussion and Analysis of Financial Condition and Results of Operations | 28 | |
57 | ||
57 | ||
58 | ||
58 | ||
60 | ||
60 | ||
60 | ||
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61 | ||
62 |
PART I – FINANCIAL INFORMATION
ITEM 1: CONSOLIDATED FINANCIAL STATEMENTS
Condensed Consolidated Income Statements
(Expressed in thousands of U.S. dollars, except share and per share data)
(Unaudited)
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | ||||||||||||
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Revenue: |
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Service revenue | $ | | $ | | $ | | $ | | |||||
Inventory sales revenue |
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Total revenue |
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Operating expenses: |
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Costs of services |
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Cost of inventory sold |
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Selling, general and administrative |
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Acquisition-related costs |
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Depreciation and amortization |
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Foreign exchange (gain) loss |
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Total operating expenses |
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Gain on disposition of property, plant and equipment |
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Operating income |
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Interest expense |
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Change in fair value of derivatives, net |
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Other income, net |
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Income before income taxes |
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Income tax expense | | | | | |||||||||
Net income | $ | | $ | | $ | | $ | | |||||
Net income attributable to: |
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Stockholders | $ | | $ | | $ | | $ | | |||||
Non-controlling interests |
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Net income | $ | | $ | | $ | | $ | | |||||
Earnings per share attributable to stockholders: |
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Basic | $ | | $ | | $ | | $ | | |||||
Diluted | $ | | $ | | $ | | $ | | |||||
Weighted average number of shares outstanding: |
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Basic |
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Diluted |
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See accompanying notes to the condensed consolidated financial statements.
Condensed Consolidated Statements of Comprehensive Income
(Expressed in thousands of U.S. dollars)
(Unaudited)
Three months ended | Nine months ended | ||||||||||||
| September 30, | September 30, | |||||||||||
2022 |
| 2021 |
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Net income | $ | | $ | | $ | | $ | | |||||
Other comprehensive income (loss), net of income tax: |
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Foreign currency translation adjustment |
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Total comprehensive income | $ | | $ | | $ | | $ | | |||||
Total comprehensive income (loss) attributable to: |
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Stockholders | $ | | $ | | $ | | $ | | |||||
Non-controlling interests |
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$ | | $ | | $ | | $ | |
See accompanying notes to the condensed consolidated financial statements.
Ritchie Bros. | 2 |
Condensed Consolidated Balance Sheets
(Expressed in thousands of U.S. dollars, except share data)
(Unaudited)
September 30, | December 31, | |||||
| 2022 |
| 2021 | |||
Assets | ||||||
Cash and cash equivalents | $ | | $ | | ||
Restricted cash |
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Trade and other receivables |
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Less: allowance for credit losses | ( | ( | ||||
Inventory |
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Other current assets |
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Income taxes receivable |
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Total current assets |
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Restricted cash | — | | ||||
Property, plant and equipment |
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Other non-current assets |
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Intangible assets |
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Goodwill |
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Deferred tax assets |
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Total assets | $ | | $ | | ||
Liabilities and Equity |
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Auction proceeds payable | $ | | $ | | ||
Trade and other liabilities |
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Income taxes payable |
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Short-term debt |
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Current portion of long-term debt |
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Total current liabilities |
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Long-term debt |
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Other non-current liabilities |
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Deferred tax liabilities |
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Total liabilities |
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Commitments and Contingencies (Note 22 and Note 23 respectively) |
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Stockholders' equity: |
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Share capital: |
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Common stock; |
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Additional paid-in capital |
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Retained earnings |
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Accumulated other comprehensive loss |
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Stockholders' equity |
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Non-controlling interest |
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Total stockholders' equity |
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Total liabilities and equity | $ | | $ | |
See accompanying notes to the condensed consolidated financial statements.
Ritchie Bros. | 3 |
Condensed Consolidated Statements of Changes in Equity
(Expressed in thousands of U.S. dollars, except where noted)
(Unaudited)
Attributable to stockholders |
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Additional | Accumulated | Non- | |||||||||||||||||||
Common stock | paid-In | other | controlling | ||||||||||||||||||
Number of | capital | Retained | comprehensive | interest | Total | ||||||||||||||||
Three months ended September 30, 2022 |
| shares |
| Amount |
| ("APIC") |
| earnings |
| loss |
| ("NCI") |
| equity |
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Balance, June 30, 2022 | | $ | | $ | | $ | | $ | ( | $ | | $ | | ||||||||
Net income | — |
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Other comprehensive loss | — |
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— |
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Stock option exercises | |
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Issuance of common stock related to vesting of share units | |
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Share-based continuing employment costs related to business combinations | — |
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Stock option compensation expense | — | | | ||||||||||||||||||
Equity-classified share units expense | — | — | | — |
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Equity-classified share units divided equivalents | — | — | | ( |
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Cash dividends paid | — |
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Balance, September 30, 2022 | | $ | | $ | | $ | | $ | ( | $ | | $ | | ||||||||
Three months ended September 30, 2021 |
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Balance, June 30, 2021 | | $ | | $ | | $ | | $ | ( | $ | | $ | | ||||||||
Net income |
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Other comprehensive loss |
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Stock option exercises |
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Issuance of common stock related to vesting of share units |
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Acquisition of remaining interest in NCI |
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Share-based continuing employment costs related to business combinations | — | — | | — | — | — |
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Stock option compensation expense | — |
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Equity-classified share units expense |
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Equity-classified share units dividend equivalents |
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Cash dividends paid |
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Balance, September 30, 2021 |
| | $ | | $ | | $ | | $ | ( | $ | | $ | |
Ritchie Bros. | 4 |
| Attributable to stockholders |
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Additional | Accumulated | Non- | |||||||||||||||||||
Common stock | paid-In | other | controlling | ||||||||||||||||||
Number of | capital | Retained | comprehensive | interest | Total | ||||||||||||||||
Nine months ended September 30, 2022 |
| shares |
| Amount |
| ("APIC") |
| earnings |
| loss |
| ("NCI") |
| equity |
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Balance, December 31, 2021 | | $ | | $ | | $ | | $ | ( | $ | | $ | | ||||||||
Net income | — |
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Other comprehensive loss | — |
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— |
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Stock option exercises | |
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Issuance of common stock related to vesting of share units | |
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Share-based continuing employment costs related to business combinations | | | — |
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Stock option compensation expense | — | | — |
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Equity-classified share units expense | — |
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Equity-classified share units dividend equivalents | — |
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Cash dividends paid | — |
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Balance, September 30, 2022 | | $ | | $ | | $ | | $ | ( | $ | | $ | | ||||||||
Nine months ended September 30, 2021 |
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Balance, December 31, 2020 |
| | $ | | $ | | $ | | $ | ( | $ | | $ | | |||||||
Net income |
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Other comprehensive loss |
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Stock option exercises |
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Issuance of common stock related to vesting of share units |
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Acquisition of remaining interest in NCI |
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| ( |
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Share-based continuing employment costs related to business combinations |
| ( | — | | — | — | — |
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Stock option compensation expense |
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