Ritchie Bros. Auctioneers generated $128.9 million of revenue in the third quarter compared to $109.3 million in the third quarter of 2016, an 18-percent increase. During the first nine months of 2016, Ritchie Bros. generated $419.6 million in revenue compared to $380.4 million for the first nine months of 2015, a 10.3-percent hike.
In an eventful quarter, Ritchie Bros. acquired IronPlanet for $758.5 million, and entered into a strategic alliance with Caterpillar to become Caterpillar’s global partner for live onsite and online auctions with respect to used Caterpillar equipment and will complement the manufacturer’s existing dealer channels. During the third quarter, Ritchie Bros. conducted 53 unreserved industrial auctions in 13 countries in North America, Central America, Europe, the Middle East, Australia and Asia.
Also, Ritchie Bros. EquipmentOne arm sold more than $42.1 million of equipment and other assets on behalf of customers, a 5-percent year-over-year hike.
“We were pleased with the overall growth of the company in Q3 2016, with GAP (gross auction proceeds) up 12 percent and revenues up 18 percent versus the same quarter last year,” said Ravi Saligram, CEO of Ritchie Bros. “The company continues to be a strong cash generator and has delivered $163 million in operating cash flow during the first nine months of the year. Core auction performance was strong this quarter due to double digit GAP growth, stabilized pricing, excellent performance of underwritten contracts and record auctions in both the U.S. and Canada.
“With our strong core auction business and the acquisition of IronPlanet, we are excited about our journey to becoming a unique multi-channel equipment disposition company, providing unprecedented choice to customers through both onsite and online sales solutions.”
Saligram added the company has filed its anti-trust submission with the Department of Justice in connection with the acquisition and is beginning integration planning “in earnest.”