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RB (RBA) - 2023 Q4 - Annual Results
RBARB (RBA)2024-02-23 12:30

Financial Performance - GTV increased 160% year-over-year to 4.0billion,including4.0 billion, including 2.2 billion from the acquisition of IAA, Inc. [4] - Total revenue rose 134% year-over-year to 1.0billion,with1.0 billion, with 559.2 million attributed to the IAA acquisition [4] - Service revenue surged 197% year-over-year to 809.1million,including809.1 million, including 488.0 million from IAA [4] - Adjusted EBITDA increased 153% year-over-year to 307.5million[4]−Netincomeavailabletocommonstockholdersgrew65307.5 million [4] - Net income available to common stockholders grew 65% year-over-year to 74.8 million [4] - Diluted adjusted earnings per share rose 21% year-over-year to 0.82pershare[4]−OperatingincomeforQ42023was0.82 per share [4] - Operating income for Q4 2023 was 170.8 million, a 160% increase from 65.7millioninQ42022;annualoperatingincomewas65.7 million in Q4 2022; annual operating income was 471.3 million, a slight increase of 4% from 453.5million[28]−NetincomeforQ42023was453.5 million [28] - Net income for Q4 2023 was 84.2 million, an 85% increase from 45.4millioninQ42022;fortheyear,netincomewas45.4 million in Q4 2022; for the year, net income was 206.0 million, down 36% from 319.8million[28]−AdjustednetincomeavailabletocommonstockholdersfortheyearendedDecember31,2023,was319.8 million [28] - Adjusted net income available to common stockholders for the year ended December 31, 2023, was 502.2 million, an 86% increase from 269.9millionin2022[40]−AdjustedEBITDAforQ42023was269.9 million in 2022 [40] - Adjusted EBITDA for Q4 2023 was 307.5 million, a 153% increase from 121.5millioninQ42022[42]GrowthProjections−Thecompanyprojectsfull−year2024GTVgrowthbetween1121.5 million in Q4 2022 [42] Growth Projections - The company projects full-year 2024 GTV growth between 1% and 4% [4] - The company anticipates continued growth opportunities following the acquisition of IAA, with a focus on integrating operations and realizing synergies [23] Revenue Breakdown - Automotive sector GTV for Q4 2023 reached 2.1 billion, a 4,177% increase year-over-year [7] - Total lots sold increased by 6% year-over-year to 786.8 thousand in Q4 2023, with automotive lots sold rising by 7% to 573.2 thousand [12] - Gross transaction value (GTV) surged 160% year-over-year to 4.0billion,primarilyduetotheinclusionof4.0 billion, primarily due to the inclusion of 2.2 billion GTV from IAA [18] - Service revenue rose 197% year-over-year to 809.1million,with809.1 million, with 488.0 million attributed to IAA, and a pro forma increase of 14% [18] - Inventory sales revenue grew by 35% year-over-year, largely due to 71.2millionfromIAA,butdecreasedby1071.2 million from IAA, but decreased by 10% on a pro forma basis [18] Expenses and Cash Flow - Operating expenses for Q4 2023 totaled 870.6 million, with adjusted operating expenses at 770.4million[15]−OperatingFreeCashFlow(OFCF)for2023was770.4 million [15] - Operating Free Cash Flow (OFCF) for 2023 was 230.4 million, a decrease of 59% compared to 556.6millionin2022[49]−Cashprovidedbyoperatingactivitiesincreasedto556.6 million in 2022 [49] - Cash provided by operating activities increased to 544.0 million in 2023, up 17% from 463.1millionin2022[49]−Netcapitalspendingin2023was463.1 million in 2022 [49] - Net capital spending in 2023 was (313.6) million, a significant increase from 93.5millionin2022,reflectinga43593.5 million in 2022, reflecting a 435% change [49] Assets and Liabilities - Cash and cash equivalents at the end of 2023 were 576.2 million, up from 494.3millionattheendof2022[29]−Totalassetsincreasedto494.3 million at the end of 2022 [29] - Total assets increased to 12,037.4 million in 2023 from 2,863.7millionin2022,drivenbysignificantacquisitionsandgrowthinintangibleassets[29]−Totaldebtincreasedto2,863.7 million in 2022, driven by significant acquisitions and growth in intangible assets [29] - Total debt increased to 3,089.5 million in 2023, a 406% increase from 610.6millionin2022[46]−Adjustednetdebtroseto610.6 million in 2022 [46] - Adjusted net debt rose to 2,513.3 million, a 2061% increase from 116.3millionin2022[46]ShareholderReturns−Thecompanydeclaredaquarterlycashdividendof116.3 million in 2022 [46] Shareholder Returns - The company declared a quarterly cash dividend of 0.27 per common share, payable on March 1, 2024 [20] - The company reported a basic earnings per share of 0.41forQ42023,unchangedfromQ42022,whiledilutedearningspershareincreasedby20.41 for Q4 2023, unchanged from Q4 2022, while diluted earnings per share increased by 2% to 0.41 [28] Acquisition Impact - The company completed the acquisition of IAA, impacting cash flows and resulting in a net cash used in investing activities of (3,108.3)millionfor2023[30]−Acquisition−relatedandintegrationcostsfortheyearincreasedsignificantlyto(3,108.3) million for 2023 [30] - Acquisition-related and integration costs for the year increased significantly to 216.1 million, a 479% rise from 37.3millionin2022[42]−Amortizationofacquiredintangibleassetsin2023was37.3 million in 2022 [42] - Amortization of acquired intangible assets in 2023 was 76.0 million, including 67.6millionfromIAA[55]−Acquisition−relatedandintegrationcostsfor2023totaled67.6 million from IAA [55] - Acquisition-related and integration costs for 2023 totaled 46.3 million, primarily related to the acquisition of IAA [55]