RB (RBA)

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摩根大通:汽车估值对比表
摩根· 2025-04-27 03:56
Investment Rating - The report assigns an "Overweight" (OW) rating to General Motors (GM) and Ford, while Tesla and Rivian are rated "Underweight" (UW) [6][7]. Core Insights - The automotive industry is experiencing varied performance metrics across different companies, with GM and Ford showing potential upside in their stock prices, while Tesla and Rivian face significant downside risks [6][7]. - The report highlights the importance of valuation metrics such as EV/EBITDA, P/E ratios, and sales growth projections for assessing investment opportunities within the automotive sector [6][22]. Global Auto OEMs Investment Comparables - General Motors (GM) has a current price of $44.57 with a market cap of $43.067 billion and a target price of $53.00, indicating a 19% upside potential [6]. - Ford (F) is priced at $9.63 with a market cap of $38.294 billion and a target price of $11.00, representing a 14% upside [6]. - Ferrari (RACE) is valued at $439.97 with a target price of $460.00, showing a 5% upside [6]. - Tesla (TSLA) is currently priced at $241.37 with a target price of $120.00, indicating a -50% downside [6]. - Rivian (RIVN) has a price of $11.60 with a target price of $11.00, reflecting a -5% downside [6]. Global Auto Parts Suppliers Valuation Metrics - The average EV/EBITDA for US auto parts suppliers is projected at 1.8x for 2024, with a corresponding EBITDA margin of 12% [22]. - Aptiv (APTV) is rated "Overweight" with a current price of $51.71 and a target price of $102, indicating a 97% upside [22]. - Borg Warner (BWA) is rated "Overweight" with a price of $26.45 and a target price of $46, representing a 74% upside [22]. - Lear Corp (LEA) is rated "Overweight" with a price of $79.42 and a target price of $140, indicating a 76% upside [22]. Performance Metrics - The report indicates that the average revenue CAGR for US auto parts suppliers is projected to be 2% from 2023 to 2025 [74]. - The EBITDA margin for US auto parts suppliers is expected to be around 12% in 2025, with some companies showing higher margins [74][83]. - The report also highlights the financial returns of various suppliers, with some companies achieving significant returns on invested capital (ROIC) [54][56].
RB (RBA) - 2024 Q4 - Annual Report
2025-02-26 21:44
Part I [Business Overview](index=10&type=section&id=Item%201%3A%20Business) RB Global operates a global marketplace for commercial assets and vehicles across 170 countries, focusing on automotive and CC&T sectors with a strategy to enhance price performance and expand customer relationships - RB Global operates a global marketplace for commercial assets and vehicles, with a presence in **14 countries** and serving customers in approximately **170 countries**[17](index=17&type=chunk) - The company's primary sectors are automotive and commercial, construction, and transportation (CC&T), serving customers like insurance companies, fleet owners, and OEMs[18](index=18&type=chunk) - Macroeconomic factors such as supply chain disruptions and interest rates have impacted customer transaction behavior, with CC&T markets normalizing in the **second half of 2024**, while the automotive salvage market sees growth due to the inflation spread between repair costs and used vehicle prices[21](index=21&type=chunk)[22](index=22&type=chunk) - The company's growth strategy is centered on **three pillars**: achieving premium price performance, growing the enterprise partner base (insurance companies, large fleets), and driving growth with regional CC&T customers[28](index=28&type=chunk)[31](index=31&type=chunk) - In the **third quarter of 2024**, the company updated its revenue disaggregation to better align with management's evaluation, reclassifying certain fees between marketplace services and transactional buyer/seller revenue[60](index=60&type=chunk)[62](index=62&type=chunk) [Risk Factors](index=21&type=section&id=Item%201A%3A%20Risk%20Factors) The company faces diverse risks including supplier dependence, intense competition, IT system vulnerabilities, substantial indebtedness, and complex regulatory and legal challenges - Business Risks: The company's operations could be adversely affected by the loss of significant suppliers, as the top three suppliers accounted for approximately **22%** of consolidated revenues in fiscal 2024. Other risks include competition, IT system performance, macroeconomic pressures like inflation, and reliance on subhaulers[12](index=12&type=chunk)[73](index=73&type=chunk) - Financial Risks: The company has substantial indebtedness (**$2.7 billion** as of Dec 31, 2024), which could adversely affect its financial condition. Restrictive covenants in debt instruments could limit financial flexibility[15](index=15&type=chunk)[156](index=156&type=chunk) - Cybersecurity and IT Risks: The availability and performance of IT systems are critical. The company faces risks from cybersecurity threats, including ransomware, and potential data breaches which could lead to reputational harm and financial impact[100](index=100&type=chunk)[107](index=107&type=chunk) - Regulatory and Legal Risks: The business is subject to extensive regulations governing auctions, environmental protection, and international trade. It also faces risks from litigation, such as an ongoing dispute with its former CEO, and a significant tax dispute with the Canada Revenue Agency (CRA)[112](index=112&type=chunk)[126](index=126&type=chunk)[142](index=142&type=chunk) - Organizational and Governance Risks: As a Canadian company, U.S. civil liabilities may not be enforceable against it or its directors. Provisions in its articles and by-laws could delay or prevent a change in control[15](index=15&type=chunk)[171](index=171&type=chunk)[175](index=175&type=chunk) [Unresolved Staff Comments](index=44&type=section&id=Item%201B%3A%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments - Not applicable[178](index=178&type=chunk) [Cybersecurity](index=44&type=section&id=Item%201C%3A%20Cybersecurity) RB Global manages cybersecurity risk through a comprehensive strategy overseen by its Enterprise Risk Management program and Board's Audit Committee, with no material incidents reported to date - The company's cybersecurity strategy focuses on threat prevention, defense, detection, and response, integrated into its Enterprise Risk Management program[179](index=179&type=chunk) - Oversight is provided by the Board's Audit Committee, which receives **quarterly briefings** from the CTO and CISO. Management-level oversight is handled by the CTO, CISO, and VP of Global Internal Audit, with support from the Security Steering Committee (SSC) and Data Privacy Committee (DPC)[180](index=180&type=chunk)[184](index=184&type=chunk)[185](index=185&type=chunk) - The company conducts mandatory onboarding and annual security awareness training for employees, including phishing simulations[182](index=182&type=chunk) - As of the report date, the company is not aware of any cybersecurity threats or incidents that have had a material effect on its business, operations, or financial condition[183](index=183&type=chunk) [Properties](index=47&type=section&id=Item%202%3A%20Properties) RB Global operates from 311 owned and leased properties globally, totaling 5,376 owned acres and 8,164 leased acres, with recent expansion in 2024 Owned and Leased Properties by Region (as of Dec 31, 2024) | Location | Number of Locations | Owned Acreage | Leased Acreage | | :--- | :--- | :--- | :--- | | United States | 246 | 3,704 | 7,377 | | Canada | 30 | 884 | 539 | | International | 35 | 788 | 248 | | **Total** | **311** | **5,376** | **8,164** | - The company is headquartered in a leased property in Westchester, Illinois, with the lease extending until **2027**[188](index=188&type=chunk) - During 2024, the company opened **5 new operating locations** in the US and Canada and converted **13 leased properties** to owned properties, primarily through lease buyouts[190](index=190&type=chunk) [Legal Proceedings](index=47&type=section&id=Item%203%3A%20Legal%20Proceedings) The company reports no material legal proceedings pending, other than ordinary routine litigation incidental to its business - There are no material legal proceedings pending, other than ordinary routine litigation incidental to the business[192](index=192&type=chunk) [Mine Safety Disclosures](index=47&type=section&id=Item%204%3A%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[193](index=193&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities](index=48&type=section&id=Item%205%3A%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) RB Global's common shares trade on the NYSE and TSX, paying a quarterly dividend of **$0.29** per share, with its stock outperforming key indices over five years - The company's common shares are listed on the New York Stock Exchange (NYSE) and the Toronto Stock Exchange (TSX) under the symbol 'RBA'[195](index=195&type=chunk) - The company currently pays a regular quarterly cash dividend of **$0.29** per common share. Future dividends are at the discretion of the Board of Directors[199](index=199&type=chunk) Comparison of Cumulative Five-Year Total Return | Company / Index | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | RBA (NYSE) | $100.0 | $164.6 | $147.1 | $141.4 | $169.9 | $232.3 | | Russell 2000 | $100.0 | $119.9 | $137.7 | $109.5 | $128.0 | $142.7 | | S&P/TSX | $100.0 | $105.6 | $132.2 | $124.6 | $139.3 | $169.5 | | DJIA | $100.0 | $109.7 | $132.7 | $123.6 | $143.6 | $165.1 | Securities Authorized for Issuance under Equity Compensation Plans (as of Dec 31, 2024) | Plan Category | Number of securities to be issued upon exercise (a) | Weighted average exercise price of outstanding options (b) | Number of securities remaining available for future issuance (c) | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 3,370,692 | $64.49 | 10,265,156 | | Equity compensation plans not approved by security holders | — | — | — | | **Total** | **3,370,692** | **$64.49** | **10,265,156** | [Reserved](index=51&type=section&id=Item%206%3A%20%5BReserved%5D) This item is reserved - [Reserved][220](index=220&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=52&type=section&id=Item%207%3A%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) RB Global achieved significant growth in FY2024, with GTV up **14%** to **$15.9 billion** and revenue up **16%** to **$4.3 billion**, driven by IAA integration and strong automotive sector performance, while maintaining robust liquidity [Performance Overview and Consolidated Results](index=53&type=section&id=7.1%20Performance%20Overview%20and%20Consolidated%20Results) RB Global reported strong FY2024 results with total GTV up **14%** to **$15.9 billion**, total revenue up **16%** to **$4.3 billion**, and net income doubling to **$412.8 million** FY2024 vs FY2023 Key Financial Metrics (in millions) | Metric | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | Total GTV | $15.9 billion | $13.9 billion | +14% | | Total Revenue | $4.3 billion | $3.7 billion | +16% | | Service Revenue | $3.4 billion | $2.7 billion | +23% | | Inventory Sales Revenue | $920.6 million | $947.1 million | -3% | | Net Income | $412.8 million | $206.0 million | +100% | | Diluted EPS | $2.01 | $1.04 | +93% | | Adjusted EBITDA | $1.3 billion | $1.0 billion | +26% | - Operational highlights in 2024 include the acquisition of Boom & Bucket, a digital fixed-price marketplace, and continued investment in a new digital payments platform[237](index=237&type=chunk) [Results of Operations](index=54&type=section&id=7.2%20Results%20of%20Operations) Total GTV increased **14%** to **$15.9 billion** in 2024, with total revenue growing **16%** to **$4.3 billion**, and operating income surging **62%** due to reduced acquisition costs GTV by Geography (in millions) | Geography | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | United States | $11,966.4 | $10,266.1 | +17% | | Canada | $2,688.1 | $2,460.8 | +9% | | International | $1,250.3 | $1,203.7 | +4% | | **Total GTV** | **$15,904.8** | **$13,930.6** | **+14%** | GTV by Sector (in millions) | Sector | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | Automotive | $8,277.6 | $6,531.2 | +27% | | CC&T | $5,805.8 | $5,446.5 | +7% | | Other | $1,821.4 | $1,952.9 | -7% | | **Total GTV** | **$15,904.8** | **$13,930.6** | **+14%** | - Total lots sold increased by **24%** to **3.35 million**, primarily due to the full inclusion of IAA operations[238](index=238&type=chunk) - Acquisition-related and integration costs decreased **87%** to **$29.0 million** from **$216.1 million** in 2023, as significant costs for the IAA acquisition were incurred in the prior year[250](index=250&type=chunk) [Liquidity and Capital Resources](index=60&type=section&id=7.3%20Liquidity%20and%20Capital%20Resources) Net cash from operations increased to **$932.0 million** in 2024, with the company repaying **$450.0 million** in debt and maintaining **$720.9 million** in unused credit capacity Cash Flow Summary (in millions) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $932.0 | $544.0 | | Net cash used in investing activities | $(301.6) | $(3,108.3) | | Net cash (used in) provided by financing activities | $(645.5) | $2,676.2 | - The company repaid **$450.0 million** of principal on its USD TLA Facility during 2024[260](index=260&type=chunk) - In February 2025, the company paid a deposit of **CA$39.5 million** (approx. **$27.6 million**) to the Canada Revenue Agency (CRA) to appeal a Notice of Assessment[267](index=267&type=chunk) - As of December 31, 2024, the company had **$720.9 million** of unused capacity under its revolving credit facilities[271](index=271&type=chunk) [Critical Accounting Policies, Judgments, Estimates and Assumptions](index=64&type=section&id=7.4%20Critical%20Accounting%20Policies%2C%20Judgments%2C%20Estimates%20and%20Assumptions) Critical accounting policies involve significant judgments, particularly in business combinations for intangible asset valuation, annual goodwill impairment testing, and assessing uncertain tax positions with the Canada Revenue Agency - Business Combinations: The valuation of intangible assets from the IAA acquisition required significant estimates for revenue growth, customer attrition, and discount rates[280](index=280&type=chunk)[281](index=281&type=chunk) - Goodwill: Goodwill is tested for impairment annually. In **Q4 2024**, the company reorganized its reporting units and performed impairment tests before and after, concluding no impairment existed. As of **December 31, 2024**, no reporting units are at material risk of impairment[282](index=282&type=chunk)[285](index=285&type=chunk)[286](index=286&type=chunk) - Income Taxes: Significant judgment was required to assess the uncertain tax position regarding the Notice of Assessment from the Canada Revenue Agency (CRA), concluding that it is more likely than not that the company's tax position will be sustained[287](index=287&type=chunk) [Non-GAAP Measures](index=65&type=section&id=7.5%20Non-GAAP%20Measures) The company utilizes non-GAAP measures like Adjusted Net Income (**$646.8 million**), Diluted Adjusted EPS (**$3.49**), and Adjusted EBITDA (**$1.3 billion**) to present a clearer view of operating performance Non-GAAP Performance Reconciliation (in millions, except per share data) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Net income available to common stockholders (GAAP) | $372.7 | $174.9 | | **Adjusted net income available to common stockholders (Non-GAAP)** | **$646.8** | **$502.2** | | Diluted EPS available to common stockholders (GAAP) | $2.01 | $1.04 | | **Diluted adjusted EPS available to common stockholders (Non-GAAP)** | **$3.49** | **$2.99** | Adjusted EBITDA Reconciliation (in millions) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Net income (GAAP) | $412.8 | $206.0 | | **Adjusted EBITDA (Non-GAAP)** | **$1,302.7** | **$1,032.8** | - The adjusted net debt to adjusted EBITDA ratio was **1.6x** for the year ended December 31, 2024, a decrease from **2.4x** in the prior year[302](index=302&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=74&type=section&id=Item%207A%3A%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks primarily from foreign currency fluctuations, with **27%** of 2024 revenues in non-USD currencies, and interest rate risk on **$1.3 billion** of floating-rate debt - Foreign Currency Risk: **27%** of 2024 revenues were denominated in currencies other than the U.S. dollar. A **10%** change in the Canadian dollar, GBP, and Euro against the U.S. dollar would result in a foreign currency translation adjustment of approximately **$113.0 million**[312](index=312&type=chunk)[313](index=313&type=chunk) - Interest Rate Risk: The company had **$1.3 billion** in floating-rate debt as of December 31, 2024. A **100 basis point (1%)** change in interest rates would result in an approximate **$13.3 million** change in annual pre-tax interest expense[315](index=315&type=chunk) - Fixed-rate debt from senior notes represents **51%** of the company's long-term debt, mitigating some interest rate volatility[316](index=316&type=chunk) [Financial Statements and Supplementary Data](index=75&type=section&id=Item%208%3A%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for FY2024 and FY2023, including income statements, balance sheets, cash flows, and detailed notes on accounting policies, acquisitions, debt, and contingencies [Report of Independent Registered Public Accounting Firm](index=75&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Ernst & Young LLP issued unqualified opinions on RB Global's FY2024 and FY2023 financial statements and internal controls, identifying the uncertain tax position with the CRA as a critical audit matter - The auditor, Ernst & Young LLP, issued an unqualified (clean) opinion on the financial statements and internal controls over financial reporting[318](index=318&type=chunk)[319](index=319&type=chunk) - A Critical Audit Matter was identified regarding the company's uncertain tax position with the Canada Revenue Agency (CRA), highlighting the complexity and significant judgment involved in assessing whether the company's tax position is more likely than not to be sustained[322](index=322&type=chunk)[326](index=326&type=chunk) [Consolidated Financial Statements](index=78&type=section&id=Consolidated%20Financial%20Statements) For FY2024, total revenues were **$4.28 billion**, net income **$412.8 million**, total assets **$11.81 billion**, and cash flow from operations **$932.0 million** Consolidated Income Statement Highlights (Year ended Dec 31, in millions) | Line Item | 2024 | 2023 | | :--- | :--- | :--- | | Total Revenue | $4,284.2 | $3,679.6 | | Operating Income | $761.2 | $471.3 | | Net Income | $412.8 | $206.0 | | Diluted EPS | $2.01 | $1.04 | Consolidated Balance Sheet Highlights (As of Dec 31, in millions) | Line Item | 2024 | 2023 | | :--- | :--- | :--- | | Total Current Assets | $1,714.8 | $1,814.0 | | Total Assets | $11,807.0 | $12,037.4 | | Total Current Liabilities | $1,331.3 | $1,342.7 | | Total Liabilities | $6,090.6 | $6,528.0 | | Total Stockholders' Equity | $5,226.3 | $5,019.0 | Consolidated Cash Flow Highlights (Year ended Dec 31, in millions) | Line Item | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $932.0 | $544.0 | | Net cash (used in) provided by investing activities | $(301.6) | $(3,108.3) | | Net cash (used in) provided by financing activities | $(645.5) | $2,676.2 | [Notes to the Consolidated Financial Statements](index=85&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) Notes detail accounting policies, including the **$3.55 billion** goodwill from the IAA acquisition, a **C$79.1 million** tax dispute with the CRA, and total debt of **$2.65 billion** - The acquisition of IAA was finalized with a total purchase price of approximately **$6.6 billion**, resulting in **$3.55 billion** of goodwill[429](index=429&type=chunk)[431](index=431&type=chunk) - The Canada Revenue Agency (CRA) issued a Notice of Assessment for **C$79.1 million** (approx. **$55.1 million**) for tax years **2010-2015**. The company is appealing and has not recorded a liability, concluding it is more likely than not that its position will be sustained. The CRA is also reviewing years **2016-2020** for the same matter[455](index=455&type=chunk)[458](index=458&type=chunk)[459](index=459&type=chunk) Debt Summary (as of Dec 31, 2024, in millions) | Debt Instrument | Principal Amount | | :--- | :--- | | Term Loan A Facility (CAD) | $72.5 | | Term Loan A Facility (USD) | $1,225.0 | | Senior Secured Notes (6.750% due 2028) | $550.0 | | Senior Unsecured Notes (7.750% due 2031) | $800.0 | | **Total Long-term Debt (Principal)** | **$2,647.5** | - The company is in an ongoing arbitration with its former CEO, Ann Fandozzi, regarding her departure. An expense of **$5.0 million** was recorded in 2024 related to changes in estimated fair value of certain share-based awards connected to the matter[525](index=525&type=chunk)[526](index=526&type=chunk) [Changes In and Disagreements With Accountants on Accounting and Financial Disclosure](index=134&type=section&id=Item%209%3A%20Changes%20In%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) This item is not applicable - Not applicable[532](index=532&type=chunk) [Controls and Procedures](index=134&type=section&id=Item%209A%3A%20Controls%20and%20Procedures) Management and independent auditors concluded that the company's disclosure controls and internal control over financial reporting were effective as of **December 31, 2024** - Management concluded that the company's disclosure controls and procedures were effective as of **December 31, 2024**[534](index=534&type=chunk) - Based on the **COSO framework**, management concluded that the company's internal control over financial reporting was effective as of **December 31, 2024**[538](index=538&type=chunk) - The independent auditor's attestation report expressed an unqualified opinion on the effectiveness of the company's internal control over financial reporting[541](index=541&type=chunk) [Other Information](index=135&type=section&id=Item%209B%3A%20Other%20Information) The company reports no other information for this item - None[547](index=547&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=137&type=section&id=Item%209C%3A%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) The company reports no information for this item - None[549](index=549&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=137&type=section&id=Item%2010%3A%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information for this item, including details on directors, executive officers, and corporate governance, is incorporated by reference from the company's definitive Proxy Statement for its 2025 Annual and Special Meeting of Shareholders - The required information is incorporated by reference to the company's 2025 Proxy Statement[551](index=551&type=chunk) [Executive Compensation](index=137&type=section&id=Item%2011%3A%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the company's definitive Proxy Statement for its 2025 Annual and Special Meeting of Shareholders - The required information is incorporated by reference to the company's 2025 Proxy Statement[554](index=554&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=137&type=section&id=Item%2012%3A%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership of certain beneficial owners, management, and related stockholder matters is incorporated by reference from the company's definitive Proxy Statement for its 2025 Annual and Special Meeting of Shareholders - The required information is incorporated by reference to the company's 2025 Proxy Statement[555](index=555&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=137&type=section&id=Item%2013%3A%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding certain relationships, related transactions, and director independence is incorporated by reference from the company's definitive Proxy Statement for its 2025 Annual and Special Meeting of Shareholders - The required information is incorporated by reference to the company's 2025 Proxy Statement[556](index=556&type=chunk) [Principal Accountant Fees and Services](index=137&type=section&id=Item%2014%3A%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the company's definitive Proxy Statement for its 2025 Annual and Special Meeting of Shareholders - The required information is incorporated by reference to the company's 2025 Proxy Statement[557](index=557&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=137&type=section&id=Item%2015%3A%20Exhibits%2C%20Financial%20Statement%20Schedules) This section details the documents filed as part of the Form 10-K, including financial statements and a comprehensive list of exhibits, with no financial statement schedules applicable - The financial statements listed under Item 8 are filed with this report[559](index=559&type=chunk)[560](index=560&type=chunk) - No financial statement schedules are filed with this report[561](index=561&type=chunk) - A comprehensive list of exhibits filed with the report is provided, including agreements, indentures, and compensatory plans[562](index=562&type=chunk) [Form 10-K Summary](index=141&type=section&id=Item%2016%3A%20Form%2010-K%20Summary) This item is not applicable - Not applicable[569](index=569&type=chunk)
RB (RBA) - 2024 Q4 - Earnings Call Transcript
2025-02-19 03:26
Financial Data and Key Metrics Changes - Fourth quarter adjusted EBITDA increased by 13% on a 2% increase in gross transactional value (GTV) [6][26] - Adjusted earnings per share rose by 16% due to higher operating income and lower net interest expense [27] - Adjusted EBITDA as a percentage of GTV increased to 8.4% compared to 7.7% in the prior year [26] Business Line Data and Key Metrics Changes - Automotive GTV increased by 4%, driven by a 7% increase in unit volumes, partially offset by a decline in average price per vehicle sold [22] - GTV in the commercial construction and transportation sector decreased by 1%, driven by a decline in average price per lot sold, despite an 18% increase in lot volumes [23] - Service revenue increased by 8% due to a higher service revenue take rate and higher GTV [25] Market Data and Key Metrics Changes - The total loss ratio in the salvage industry increased nearly 230 basis points to approximately 23.8% compared to 21.5% in the same period last year [19] - Average selling prices of salvage U.S. insurance vehicles declined less than 1%, and when excluding impacts from catastrophe events, declined approximately 2% year-over-year [20] Company Strategy and Development Direction - The company aims to solidify its position as a trusted global partner by focusing on operational efficiency and excellence [8] - Key strategic focuses include premium price performance, growing the enterprise partner base, and driving growth with regional customers [10][11][13] - The company plans to modernize technology capabilities and strategically deploy M&A to expand market reach [14][15] Management's Comments on Operating Environment and Future Outlook - The management described the current environment as "wait and see," with partners evaluating business conditions amid uncertainty [16] - The company expects full-year GTV to grow between 0% and 3% year-over-year, with a mid-single-digit decline expected in the first quarter of 2025 [28] - Management remains focused on operational excellence while investing in growth initiatives [29] Other Important Information - The company expects full-year capital expenditures to be between $350 million and $400 million, mainly due to investments in Greenfield expansion in Australia [30] Q&A Session Summary Question: Market share gains and expectations for 2025 - Management emphasized focusing on providing high service levels to partners and adding value to their P&L to gain market share [34][35] Question: Capital allocation priorities - Management stated that M&A opportunities are part of the strategy, alongside paying down debt and reinvesting in the business [38][39] Question: GTV growth outlook and sector performance - Management indicated confidence in automotive sector growth and discussed unique challenges in the commercial construction and transportation sector [44][46] Question: Impact of tariffs on the automotive side - Management noted that while tariffs are a concern, the marketplace's need for assets remains strong, and they will navigate these challenges with data and insights [52][70] Question: Efficiency and potential RFPs related to surplus assets - Management acknowledged seeing surplus items but did not identify any abnormal uptick in activity related to efficiency initiatives [62] Question: Performance metrics post-IAA transaction - Management expressed confidence in meeting or exceeding SLAs and emphasized transparency in performance reporting [66][91] Question: SG&A performance and cost management - Management highlighted a disciplined approach to managing operating efficiency while investing in business growth [99][101]
RB Global (RBA) Beats Q4 Earnings and Revenue Estimates
ZACKS· 2025-02-19 00:15
RB Global (RBA) came out with quarterly earnings of $0.95 per share, beating the Zacks Consensus Estimate of $0.80 per share. This compares to earnings of $0.82 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 18.75%. A quarter ago, it was expected that this heavy equipment auctioneer would post earnings of $0.62 per share when it actually produced earnings of $0.71, delivering a surprise of 14.52%.Over the last four quarters, ...
RB Global (RBA) is a Great Momentum Stock: Should You Buy?
ZACKS· 2024-11-26 18:01
Company Overview - RB Global (RBA) currently has a Momentum Style Score of B, indicating a positive momentum characteristic [2] - The company has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [3] Performance Metrics - Over the past week, RBA shares increased by 5.44%, outperforming the Zacks Financial Transaction Services industry, which rose by 2.37% [6] - In the last month, RBA's price change was 14.41%, significantly higher than the industry's 2.74% [6] - For longer-term performance, RBA shares rose by 14.36% over the past quarter and 55.04% over the last year, while the S&P 500 increased by 6.59% and 32.84%, respectively [7] Trading Volume - RBA's average 20-day trading volume is 859,414 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, 2 earnings estimates for RBA have been revised upwards, while 1 estimate was revised downwards, leading to an increase in the consensus estimate from $3.25 to $3.32 [10] - For the next fiscal year, 3 estimates have moved upwards with no downward revisions, indicating a positive earnings outlook [10] Conclusion - Given the positive momentum indicators and earnings outlook, RBA is positioned as a promising investment opportunity with a Momentum Score of B and a Zacks Rank of 2 (Buy) [11]
RB Global Inc. (RBA) Opens the Market
Newsfile· 2024-11-19 16:49
Company Overview - RB Global, Inc. is a leading omnichannel marketplace providing value-added insights, services, and transaction solutions for buyers and sellers of commercial assets and vehicles globally [2] - The company operates auction sites in 14 countries and serves customers in over 170 countries across various asset classes, including automotive, commercial transportation, construction, government surplus, lifting and material handling, energy, mining, and agriculture [2] Market Position - RB Global's marketplace brands include Ritchie Bros., the largest auctioneer of commercial assets and vehicles, and IAA, a leading global digital marketplace connecting vehicle buyers and sellers [2] - The company's portfolio also features Rouse Services, SmartEquip, Xcira, and VeriTread, which provide comprehensive asset management, technology support, live auction technologies, and online transport marketplace solutions respectively [2] Recent Developments - Jim Kessler, CEO of RB Global, celebrated the company's 20th year listing anniversary on the Toronto Stock Exchange (TSX) [1]
RB (RBA) - 2024 Q3 - Earnings Call Transcript
2024-11-08 20:05
Financial Data and Key Metrics Changes - Adjusted EBITDA declined less than 1% despite a 7% decline in gross transaction value (GTV) [7] - Total GTV decreased by 7%, with automotive GTV down by 1% and commercial construction and transportation GTV down by 10% [25][27] - Adjusted earnings per share decreased by 1% due to a slightly higher adjusted tax rate [32] - Adjusted EBITDA as a percentage of GTV increased to 7.8% from 7.4% in the prior year [31] Business Line Data and Key Metrics Changes - Automotive GTV decreased by 1%, driven by stable unit volume and a 1% drop in average price per vehicle sold [25] - Commercial construction and transportation GTV decreased by 10%, with a decline in average price per lot sold, partially offset by a 19% growth in lot volumes [27] - Service revenue increased by 1%, driven by an expansion in service revenue take rate to 21.5% [29] Market Data and Key Metrics Changes - The total loss ratio in the salvage industry increased nearly 180 basis points to approximately 21.7% compared to 19.9% in the same period last year [27] - Average selling prices of salvage U.S. insurance vehicles increased by 1% year-over-year [20] Company Strategy and Development Direction - The company is focused on driving sustainable growth and has expanded its North American sales organization by approximately 10% year-over-year [11] - A key element of the international automotive salvage growth strategy is entering new markets with partners that provide immediate scale, exemplified by the partnership with Suncorp Group in Australia [21][22] - The company is committed to operational efficiency and has launched a targeted discretionary cost reduction initiative [30] Management's Comments on Operating Environment and Future Outlook - Management noted that partners are cautious and adopting a wait-and-see approach due to macroeconomic uncertainty [8] - The company maintains its full-year GTV guidance range from 0% to 2%, expecting to be at the lower end of the range [33] - Management expressed confidence in the company's ability to gain market share in the salvage industry [26] Other Important Information - The company played a critical role in aiding power restoration efforts in Florida following recent hurricanes [13] - The strategic option to utilize the Orlando yard as additional capacity was not needed due to existing capacity management [16] Q&A Session Summary Question: Perspectives on commercial side trends into 2025 - Management indicated that they are focused on supporting partners regardless of economic conditions and are investing in organic growth initiatives [36][38] Question: Margin improvement journey and milestones - Management emphasized a continuous focus on growing the top line, expanding margins, and optimizing the business [39] Question: Core KPIs of the IAA business - Management reported strong performance in key KPIs and expressed confidence in driving value for partners [41] Question: Capital allocation thoughts for 2025 - The focus remains on paying down Term Loan A and exploring tuck-in M&A opportunities [43] Question: Decline in SG&A year-over-year - Management attributed the decline to operating efficiency initiatives and discretionary spending control [45][46] Question: New business with Suncorp in Australia - Management confirmed the contract was awarded through a normal RFP process, leveraging existing brand reputation [48] Question: Productivity of new territory managers - Management indicated that new hires typically become productive quickly, depending on the right fit [51][76] Question: Impact of cat events on guidance - Management noted that while cat events can boost top-line performance, they do not always translate to profitability [79] Question: CapEx guidance and allocation - Management stated that capital allocation decisions will be evaluated based on strategic needs, including technology and real estate [81]
RB (RBA) - 2024 Q3 - Quarterly Report
2024-11-08 12:35
[PART I – FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Condensed Consolidated Financial Statements](index=4&type=section&id=ITEM%201%3A%20Condensed%20Consolidated%20Financial%20Statements%3A) RB Global's Q3 2024 financial performance showed increased net income despite a revenue dip, with nine-month results significantly boosted by the IAA acquisition and strong operating cash flow [Condensed Consolidated Income Statements](index=4&type=section&id=Condensed%20Consolidated%20Income%20Statements) Despite a Q3 2024 revenue decrease, operating and net income improved, while nine-month results showed substantial growth in revenue and net income, largely due to the IAA acquisition Condensed Consolidated Income Statement Highlights (in millions, except per share data) | Metric | Q3 2024 | Q3 2023 | Nine Months 2024 | Nine Months 2023 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $981.8 | $1,019.8 | $3,142.6 | $2,638.7 | | **Operating Income** | $153.4 | $145.8 | $554.2 | $300.5 | | **Net Income** | $76.0 | $63.2 | $294.4 | $121.8 | | **Diluted EPS** | $0.36 | $0.30 | $1.43 | $0.61 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2024, total assets slightly decreased to $11.93 billion, while total liabilities reduced to $6.23 billion, primarily due to lower long-term debt, leading to an increase in stockholders' equity Condensed Consolidated Balance Sheet Highlights (in millions) | Metric | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $650.7 | $576.2 | | Goodwill | $4,537.1 | $4,537.0 | | **Total Assets** | **$11,932.0** | **$12,037.4** | | Long-term debt | $2,724.9 | $3,061.6 | | **Total Liabilities** | **$6,230.3** | **$6,528.0** | | **Total Stockholders' Equity** | **$5,211.5** | **$5,019.0** | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations significantly increased to $747.5 million for the nine months ended September 30, 2024, with reduced investing activities and financing cash primarily used for debt repayment Cash Flow Summary (Nine Months Ended Sep 30, in millions) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $747.5 | $206.7 | | Net cash used in investing activities | ($209.6) | ($3,002.3) | | Net cash (used in) provided by financing activities | ($491.6) | $2,728.8 | | **Net increase (decrease) in cash** | **$42.2** | **($66.7)** | [Notes to the Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail the IAA acquisition, updated revenue presentation, and significant contingencies including a tax dispute with the CRA and arbitration with the former CEO - The company completed its acquisition of IAA, Inc. on March 20, 2023, for a total purchase price of approximately **$6.6 billion**, creating a leading omnichannel marketplace for vehicles[21](index=21&type=chunk) - In Q3 2024, the company updated its presentation of disaggregated revenue to better align with how management evaluates performance, recasting prior year amounts, now broken down into transactional seller revenue, transactional buyer revenue, and marketplace services revenue[31](index=31&type=chunk)[32](index=32&type=chunk) - The company is in a dispute with the Canada Revenue Agency (CRA) over the tax residency of a former subsidiary for years 2010-2015, with a potential tax liability estimated at **$26.0 to $30.0 million**, plus interest and penalties, which the company believes is unlikely to be sustained and has not recorded a liability[42](index=42&type=chunk)[44](index=44&type=chunk) - The company is in arbitration with former CEO Ann Fandozzi regarding her departure, with an expense of **$3.3 million** recorded in the first nine months of 2024 related to changes in the estimated fair value of certain share-based awards[79](index=79&type=chunk)[80](index=80&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=ITEM%202%3A%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) RB Global's Q3 2024 saw a decline in GTV and revenue, primarily due to CC&T sector pressures, yet net income increased due to reduced acquisition and SG&A costs, with strategic debt repayment and positive trends in the automotive sector [Overview](index=30&type=section&id=Overview) RB Global operates as a global omnichannel marketplace for commercial assets and vehicles, facing macroeconomic headwinds in the CC&T sector while benefiting from increased total losses in the automotive sector - The Commercial Construction & Transportation (CC&T) sector is experiencing headwinds as customers delay asset disposition decisions amid macro uncertainty and higher interest rates, negatively impacting unit volume growth and asset prices[102](index=102&type=chunk) - In the automotive sector, the inflation spread between vehicle repair costs and used vehicle values is driving a higher percentage of accidents resulting in total losses, which in turn boosts industry salvage unit volume[103](index=103&type=chunk) Q3 2024 Performance Highlights vs. Q3 2023 | Metric | Q3 2024 | Change YoY | | :--- | :--- | :--- | | Total GTV | $3.6 billion | -7% | | Total Revenue | $981.8 million | -4% | | Net Income | $76.0 million | +20% | | Diluted EPS | $0.36 | +20% | | Adjusted EBITDA | $283.7 million | -1% | [Results of Operations](index=34&type=section&id=Results%20of%20Operations) Q3 2024 total revenue decreased 4% due to lower inventory sales and GTV decline in the CC&T sector, while operating income increased due to reduced SG&A and acquisition-related costs GTV by Sector (Q3 2024 vs Q3 2023, in millions) | Sector | Q3 2024 GTV | Change YoY | | :--- | :--- | :--- | | Automotive | $2,031.1 | -1% | | Commercial construction and transportation | $1,217.6 | -10% | | Other | $373.5 | -21% | | **Total GTV** | **$3,622.2** | **-7%** | - Service revenue increased **1%** in Q3 2024, driven by a **17%** increase in marketplace services revenue and a **2%** increase in transactional buyer revenue, which offset a **7%** decrease in transactional seller revenue[120](index=120&type=chunk) - SG&A expenses decreased **13%** to **$177.8 million** in Q3 2024, primarily due to lower short-term performance-based incentive compensation, reduced severance costs, and strategic cost reduction initiatives[132](index=132&type=chunk) - Acquisition-related and integration costs fell **74%** to **$6.0 million** in Q3 2024, as significant costs related to the IAA acquisition were incurred in the prior year[134](index=134&type=chunk) [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $747.5 million in operating cash flow and sufficient credit facilities, actively managing debt through repayments and remaining in compliance with all covenants Cash Flow Summary (Nine Months Ended Sep 30, in millions) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Operating activities | $747.5 | $206.7 | | Investing activities | ($209.6) | ($3,002.3) | | Financing activities | ($491.6) | $2,728.8 | - During the nine months ended September 30, 2024, the Company repaid **$350.0 million** of principal on the USD TLA Facility, with no further mandatory principal repayments on this facility until maturity[148](index=148&type=chunk) - The company was in compliance with all financial and other covenants applicable to its credit facilities at September 30, 2024[152](index=152&type=chunk) [Non-GAAP Measures](index=46&type=section&id=Non-GAAP%20Measures) Non-GAAP measures for Q3 2024 show slight decreases in Adjusted Net Income and Adjusted EBITDA, while the adjusted net debt/adjusted EBITDA ratio significantly improved to 1.7x Reconciliation of Net Income to Adjusted EBITDA (in millions) | | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Net income | $76.0 | $63.2 | | Add: D&A, interest, taxes | $188.4 | $183.4 | | EBITDA | $264.4 | $246.6 | | Adjustments | $19.3 | $39.2 | | **Adjusted EBITDA** | **$283.7** | **$285.8** | Reconciliation to Diluted Adjusted EPS | | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Net income available to common stockholders | $66.9M | $54.7M | | Adjustments (net of tax and allocation) | $63.9M | $78.0M | | **Adjusted net income available to common stockholders** | **$130.8M** | **$132.7M** | | Diluted weighted average shares outstanding | 185.5M | 183.6M | | **Diluted adjusted EPS** | **$0.71** | **$0.72** | - The adjusted net debt/adjusted EBITDA ratio for the trailing twelve months ended September 30, 2024, was **1.7x**, a significant improvement from **3.2x** in the prior-year period[182](index=182&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=53&type=section&id=ITEM%203%3A%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports that there have been no material changes to its market risk exposures from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2023 - There have been no material changes to the company's market risk during the three and nine months ended September 30, 2024, compared to the disclosures in the 2023 Form 10-K[190](index=190&type=chunk) [Controls and Procedures](index=53&type=section&id=ITEM%204%3A%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of September 30, 2024, with no material changes to internal control over financial reporting aside from IAA integration - The CEO and CFO concluded that as of September 30, 2024, the company's disclosure controls and procedures were effective at a reasonable assurance level[192](index=192&type=chunk) - No material changes to internal control over financial reporting occurred in Q3 2024, except as it relates to the continued integration of IAA[194](index=194&type=chunk) [PART II – OTHER INFORMATION](index=53&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Legal Proceedings](index=53&type=section&id=ITEM%201%3A%20Legal%20Proceedings) The company states that it has no material legal proceedings pending, other than ordinary routine litigation incidental to its business - The company reports no material legal proceedings pending, apart from ordinary routine litigation incidental to the business[195](index=195&type=chunk) [Risk Factors](index=54&type=section&id=ITEM%201A%3A%20Risk%20Factors) The company indicates that there have been no material changes to the risk factors disclosed in its Annual Report on Form 10-K for the year ended December 31, 2023 - As of the filing date, there have been no material changes to the risk factors discussed in the company's Annual Report on Form 10-K for the year ended December 31, 2023[196](index=196&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=54&type=section&id=ITEM%202%3A%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds for the period - The company reported 'None' for this item[197](index=197&type=chunk) [Other Information](index=54&type=section&id=ITEM%205%3A%20Other%20Information) During the third quarter of 2024, no directors or officers adopted, terminated, or modified a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - During Q3 2024, none of the company's directors or officers adopted, terminated, or modified a Rule 10b5-1 trading arrangement[197](index=197&type=chunk) [Exhibits](index=55&type=section&id=ITEM%206%3A%20Exhibits) This section lists the exhibits filed with the 10-Q report, which include new employment agreements for Michael (Steve) Lewis and Nancy King, as well as the required CEO and CFO certifications under the Sarbanes-Oxley Act - Filed exhibits include employment agreements for executives Michael (Steve) Lewis and Nancy King, CEO/CFO certifications, and Interactive Data Files (Inline XBRL)[198](index=198&type=chunk)[199](index=199&type=chunk)
RB Global (RBA) Reports Next Week: Wall Street Expects Earnings Growth
ZACKS· 2024-07-30 15:07
Group 1 - RB Global (RBA) is expected to report a year-over-year increase in earnings due to higher revenues for the quarter ended June 2024 [3] - The consensus EPS estimate for RB Global is $0.88 per share, reflecting a year-over-year change of +3.5% [13] - The Most Accurate Estimate for RB Global is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.51%, indicating a bearish outlook from analysts [7] Group 2 - RB Global has a history of beating consensus EPS estimates, having done so in the last four quarters [20] - The upcoming earnings report on August 6, 2024, could influence the stock price depending on whether the results meet or exceed expectations [12] - The consensus EPS estimate for Coinbase Global is $1.07 per share, indicating a significant year-over-year change of +354.8%, with expected revenues of $1.45 billion, up 104.9% from the previous year [24]
RB Global to Report Second Quarter 2024 Financial Results and Host Conference Call on August 6, 2024
Prnewswire· 2024-07-09 21:00
Company Overview - RB Global, Inc. is a leading omnichannel marketplace providing value-added insights, services, and transaction solutions for buyers and sellers of commercial assets and vehicles worldwide [4] - The company operates auction sites in 14 countries and serves customers in over 170 countries across various asset classes, including automotive, commercial transportation, construction, government surplus, lifting and material handling, energy, mining, and agriculture [4] - RB Global's marketplace brands include Ritchie Bros., the largest auctioneer of commercial assets and vehicles, and IAA, a leading global digital marketplace for vehicle transactions [4] Upcoming Financial Results - RB Global will release its second-quarter financial results before the market opens on August 6, 2024 [2] - A conference call to discuss these results will be hosted at 8:30 a.m. Eastern time on the same day [5] Investor Relations - Analysts and institutional investors can pre-register for the conference call through a provided link, and registered participants will receive an email with access details [1] - The live audio webcast and archived replay of the conference call will be available on the RB Global Investor Relations website [3]