2022 Q4 Form 10-Q Financial Statement

#000155837022016513 Filed on November 07, 2022

View on sec.gov

Income Statement

Concept 2022 Q4 2022 Q3
Revenue $443.9M $411.5M
YoY Change 23.51% 24.81%
Cost Of Revenue $196.1M $188.8M
YoY Change 38.2% 38.77%
Gross Profit $247.7M $222.7M
YoY Change 13.93% 15.0%
Gross Profit Margin 55.82% 54.12%
Selling, General & Admin $135.9M $133.2M
YoY Change 6.03% 22.67%
% of Gross Profit 54.84% 59.81%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $24.34M $24.29M
YoY Change 5.94% 10.88%
% of Gross Profit 9.83% 10.91%
Operating Expenses $160.2M $133.2M
YoY Change 6.02% 22.67%
Operating Profit $87.54M $63.95M
YoY Change 31.92% 19.27%
Interest Expense -$2.359M $9.199M
YoY Change -79.71% 4.45%
% of Operating Profit -2.69% 14.38%
Other Income/Expense, Net -$4.337M $2.866M
YoY Change -924.52% 376.08%
Pretax Income $58.99M $57.62M
YoY Change 42.43% 26.88%
Income Tax $13.67M $14.70M
% Of Pretax Income 23.17% 25.51%
Net Earnings $45.29M $42.91M
YoY Change 48.03% 32.7%
Net Earnings / Revenue 10.2% 10.43%
Basic Earnings Per Share $0.39
Diluted Earnings Per Share $0.40 $0.38
COMMON SHARES
Basic Shares Outstanding 110.9M 110.8M
Diluted Shares Outstanding 112.2M

Balance Sheet

Concept 2022 Q4 2022 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $494.3M $438.8M
YoY Change 51.58% 21.0%
Cash & Equivalents $494.3M $438.8M
Short-Term Investments
Other Short-Term Assets $48.34M $27.51M
YoY Change -24.87% -13.47%
Inventory $103.1M $101.3M
Prepaid Expenses $0.00
Receivables $186.4M $303.4M
Other Receivables $2.600M $6.523M
Total Short-Term Assets $963.1M $953.9M
YoY Change 26.36% 15.56%
LONG-TERM ASSETS
Property, Plant & Equipment $459.1M $444.5M
YoY Change 2.24% -4.64%
Goodwill $948.8M $946.8M
YoY Change 0.12% 13.02%
Intangibles $322.7M $323.2M
YoY Change -7.95% 13.35%
Long-Term Investments
YoY Change
Other Assets $163.4M $147.9M
YoY Change 14.65% -1.28%
Total Long-Term Assets $1.901B $1.869B
YoY Change -32.86% 6.73%
TOTAL ASSETS
Total Short-Term Assets $963.1M $953.9M
Total Long-Term Assets $1.901B $1.869B
Total Assets $2.864B $2.823B
YoY Change -20.3% 9.56%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $294.8M $266.1M
YoY Change 5.16% 16.25%
Accrued Expenses $141.4M
YoY Change 21.22%
Deferred Revenue $10.50M
YoY Change
Short-Term Debt $29.12M $1.630M
YoY Change 373.69% -91.18%
Long-Term Debt Due $4.386M $4.296M
YoY Change 25.39% 266.55%
Total Short-Term Liabilities $795.3M $752.2M
YoY Change 35.16% 10.26%
LONG-TERM LIABILITIES
Long-Term Debt $577.1M $633.0M
YoY Change -66.72% 0.08%
Other Long-Term Liabilities $147.3M $137.2M
YoY Change 0.02% -10.64%
Total Long-Term Liabilities $724.4M $770.3M
YoY Change -61.49% -2.01%
TOTAL LIABILITIES
Total Short-Term Liabilities $795.3M $752.2M
Total Long-Term Liabilities $724.4M $770.3M
Total Liabilities $1.574B $1.583B
YoY Change -37.6% 4.58%
SHAREHOLDERS EQUITY
Retained Earnings $1.043B $1.028B
YoY Change 24.24% 22.87%
Common Stock $331.5M $321.1M
YoY Change 15.5% 15.83%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $1.290B $1.239B
YoY Change
Total Liabilities & Shareholders Equity $2.864B $2.823B
YoY Change -20.3% 9.56%

Cashflow Statement

Concept 2022 Q4 2022 Q3
OPERATING ACTIVITIES
Net Income $45.29M $42.91M
YoY Change 48.03% 32.7%
Depreciation, Depletion And Amortization $24.34M $24.29M
YoY Change 5.94% 10.88%
Cash From Operating Activities $199.1M $65.88M
YoY Change 1378.68% -28.96%
INVESTING ACTIVITIES
Capital Expenditures $17.43M -$34.25M
YoY Change -259.91% 222.89%
Acquisitions
YoY Change
Other Investing Activities -$13.57M $2.314M
YoY Change -92.05% 50.75%
Cash From Investing Activities -$31.01M -$31.94M
YoY Change -82.93% 252.01%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -64.12M -37.68M
YoY Change -106.03% -28.08%
NET CHANGE
Cash From Operating Activities 199.1M 65.88M
Cash From Investing Activities -31.01M -31.94M
Cash From Financing Activities -64.12M -37.68M
Net Change In Cash 104.0M -3.739M
YoY Change -88.39% -111.96%
FREE CASH FLOW
Cash From Operating Activities $199.1M $65.88M
Capital Expenditures $17.43M -$34.25M
Free Cash Flow $181.7M $100.1M
YoY Change 645.65% -3.1%

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<p style="font-family:'Times New Roman','Times','serif';font-size:10pt;font-weight:bold;margin:0pt 0pt 7pt 0pt;">1.    General information</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;">Ritchie Bros. Auctioneers Incorporated and its subsidiaries (collectively referred to as the “Company”, “Ritchie Bros.”, “we”, “us”, or “our”) provide a marketplace for insights, services and transaction solutions for commercial assets. The Company offers its customers end-to-end transaction solutions for used commercial and other durable assets through its omnichannel platform, which includes auctions, online marketplaces, listing services, and private brokerage services. The Company also offers a wide array of value-added services connected to commercial assets as well as asset management software and data as a service solutions to help customers make more accurate and reliable business decisions. Ritchie Bros. Auctioneers Incorporated is a company incorporated in Canada under the Canada Business Corporations Act, whose shares are publicly traded on the New York Stock Exchange (“NYSE”) and the Toronto Stock Exchange (“TSX”).</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="margin-bottom:12pt;visibility:hidden;">​</span></p>
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<p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt 0pt 5pt 0pt;"><b style="font-weight:bold;">3.    Significant judgments, estimates and assumptions</b></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt 0pt 5pt 0pt;">The preparation of financial statements in conformity with US GAAP requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt 0pt 5pt 0pt;">Future differences arising between actual results and the judgments, estimates and assumptions made by the Company at the reporting date, or future changes to estimates and assumptions, could necessitate adjustments to the underlying reported amounts of assets, liabilities, revenues and expenses in future reporting periods.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt 0pt 5pt 0pt;">Judgments, estimates and underlying assumptions are evaluated on an ongoing basis by management and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. However, existing circumstances and assumptions about future developments may change due to market changes or circumstances and such changes are reflected in the assumptions when they occur. </p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt 0pt 5pt 0pt;">Significant items subject to estimates and judgments during the nine months ended September 30, 2022 were made in accounting for the completed sale and leaseback transaction of our Bolton property (Note 15 &amp; Note 21). The Company determined the following estimates in calculating the gain on sale: the present value of market rental payments of the Bolton property sold, the expected lease term in the leaseback arrangement and the Company’s incremental borrowing rate based on information available at the commencement date of the lease. </p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt 0pt 5pt 0pt;"><span style="margin-bottom:12pt;visibility:hidden;">​</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="margin-bottom:12pt;visibility:hidden;">​</span></p>
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