RB Global, Inc. - RBA STOCK NEWS

Ritchie Bros. released its September 2020 Market Trends report, providing insights into equipment pricing trends based on extensive transaction data. The report indicates a general decline in prices across various categories, with used heavy equipment prices down approximately 1% year-over-year in both the USA and Canada. Truck tractors saw a larger decline, with a 4% decrease in the USA. Despite these declines, the report suggests that most groups are experiencing moderating deflation or price parity. The company continues to emphasize its unique data analysis capabilities in the used equipment market.

Ritchie Bros. has obtained bankruptcy court approval to auction off hundreds of truck tractors belonging to BJ Services, North America’s largest pressure pumping services company. The assets will be featured in a significant sale at the Fort Worth auction scheduled for September 29-30, 2020. Ritchie Bros. anticipates high demand for these well-maintained vehicles, highlighting their expertise in asset management and diverse sales channels.

Ritchie Bros held a successful online auction in Houston, generating over US$57 million from the sale of more than 5,300 equipment items and trucks. This auction, conducted on August 25-26, 2020, set new site records for total gross transactional value and registered bidders, attracting 11,100+ participants from over 60 countries. U.S. buyers made up about 90% of purchases, with Texas buyers accounting for 40%. The auction featured a diverse array of equipment, including truck tractors and excavators, all sold without minimum bids or reserve prices.

Ritchie Bros. Auctioneers (NYSE: RBA) has received TSX approval for a Normal Course Issuer Bid (NCIB), enabling the repurchase of up to 5,441,249 common shares or an aggregate of $100 million to mitigate share dilution from options. The program will run from August 24, 2020, to August 23, 2021. Previous buybacks under a similar program saw 2,748,986 shares repurchased at an average price of $34.62. The company considers this strategy a beneficial use of funds, aiming to enhance shareholder value.

Ritchie Bros. Auctioneers (NYSE: RBA) has successfully amended and extended its credit facilities, totaling US$630 million. This includes US$530 million in revolving credit to enhance operational liquidity and a US$100 million delayed-draw term loan, primarily used to fund the IronPlanet acquisition in May 2017. The maturity date has been pushed to October 27, 2023. The credit facilities, secured by the company's assets, aim to strengthen financial flexibility amid current market uncertainties. The support from a syndicate of 13 banks highlights confidence in RBA's business.

In July, Ritchie Bros. achieved a record with 8,700 items sold through IronPlanet, generating over US$58 million. The company has surpassed US$1 billion in sales via online marketplaces from August 2019 to July 2020. Ritchie Bros. attracted 73 million visits to its platforms in H1 2020, leading to the sale of 308,000 items and over 6.1 million bids globally. CEO Ann Fandozzi emphasized the shift to online sales, stating that safety and buyer confidence are key, with services like IronClad Assurance enhancing the buying experience.

Ritchie Bros reported selling over 2,300 excavators in the US during the first half of 2020, generating more than $134 million. The company acknowledged that used equipment values remain lower compared to last year, but the rate of decline is moderating. The August Market Trends report, outlining pricing trends by industry, shows a year-over-year decline in used heavy equipment prices by approximately 2% in the US and 1% in Canada. Ritchie Bros provides valuable insights through its Market Trends module, a part of its Asset Solutions suite, enhancing understanding of asset classes for customers and investors.

Ritchie Bros. Auctioneers (NYSE: RBA, TSX: RBA) announced the appointment of Kevin Geisner as the new Chief Strategy Officer (CSO). He will focus on steering the company's corporate strategy, corporate development activities, and enhancing data analytics and market insights. Geisner, with 30 years of experience including leadership roles at Amazon and Microsoft, aims to drive sustainable growth and digital innovation at Ritchie Bros. Under CEO Ann Fandozzi, the company is poised to leverage its scale to improve customer experience and value creation.

Ritchie Bros. Auctioneers (NYSE: RBA) reported Q2 2020 results with a 2% dip in net income to $53.0 million, and flat diluted EPS at $0.49. Total revenue decreased 1% to $389.1 million, with service revenue remaining largely unchanged at $234.1 million. Operating income rose 14% to $88.8 million, while adjusted diluted EPS increased 10% to $0.54, excluding a $6.2 million tax expense. The company declared a quarterly cash dividend of $0.22 per share and authorized a $100 million share repurchase program. Cash on hand was $538 million at the end of Q2.