| Ritchie Bros. Auctioneers Incorporated | |||
| (www.rbauction.com) | |||
| Proposed Ticker: | RBA | 9200 Bridgeport Road | |
| Exchange: | New York Stock Exchange | Richmond, CANAD V6X 1S1 | |
| Industry: | Service (SIC Code 7389) | 6042737564 | |
| # of Employees: | 306 | ||
| Type of Shares: | Common Shares | Filing Date: | 9/26/97 | |
| U.S. Shares Filed: | 2,900,000 | Filing Range: | $14.00 - $16.00 | |
| Non-U.S. Shares Filed: | 0 | Offering Amount: | $43,500,000 | |
| Primary Shares: | 2,900,000 | Expenses: | $620,000 | |
| Secondary Shares: | 0 | Shares Out After: | 16,113,666 |
| Manager | Tier | Phone |
| Merrill Lynch & Co. | Lead Manager | (212) 449-4600 |
| Furman Selz Incorporated | Co-manager | (212) 309-8285 |
| Morgan Stanley Dean Witter Discover & Co. | Co-manager | (212) 761-5900 |
| Issuer's Law Firm: | Perkins Coie |
| Bank's Law Firm: | Shearman & Sterling |
| Auditor: | KPMG Peat Marwick |
| Registrar/Transfer Agent: | Montreal Trust Company of Canada |
Dollar amounts in U.S. millions except for per share data | |||||
| 3 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 4/30/97 | 7/31/97 | 7/31/96 | 7/31/97 | ||
| Revenue: | $72.19 | $22.89 | $17.16 | Assets: | $95.61 |
| Net Income: | $15.40 | -$4.26 | $4.48 | Curr Assets: | $70.05 |
| EPS: | $1.06 | -$0.29 | Liabilities: | $39.56 | |
| Prior EPS: | -$18.57 | -$33.44 | Curr Liabilities: | $33.81 | |
| Cash Flow/Oper: | $11.04 | -$14.68 | -$2.94 | Equity: | $56.05 |
| Cash Flow/Fin: | -$5.05 | Cash: | $44.02 | ||
| Cash Flow/Inv: | Working Cap: | $36.24 | |||
| Business Description |
| The company is the world's leading auctioneer of industrial equipment, operating through 50 locations in 13 countries in North America, Europe, Asia and Australia. The Company sells, through public auctions, a broad range of used industrial equipment, including equipment used in the construction, transportation, mining, forestry, petroleum and agricultural industries. The company conducts its auctions on an unreserved basis, with each and every item being sold to the highest bidder on the day of the auction, and no minimum prices or bidding permitted on behalf of consignors. The company attracts a broad international base of customers to its auctions through its worldwide marketing efforts and reputation for conducting auctions through a fair selling process. Many of the Company's customers are both consignors and buyers. Management believes that the Company's reputation and leading market position, as well as the breadth and international composition of the customers at the company's auctions, result in a greater volume of consigned equipment and higher gross auction sales than in other auction venues. |
| Competition |
| The international used equipment market and the industrial equipment auction market are highly fragmented. The Company competes for potential purchasers of industrial equipment with other auction companies and with indirect competitors, such as equipment manufacturers, distributors and dealers that sell new or used equipment, and equipment rental companies. The Company also competes for potential consignors with other auction companies and with indirect competitors, such as used equipment dealers. The Company believes that the principal competitive factors in the industrial equipment auction market are reputation, customer service, commission pricing and structure, and the ability to attract the bidders necessary to generate the best possible prices. Some of the Company's indirect competitors have significantly greater financial and marketing resources and name recognition than the Company. In calendar 1996, the Company's gross auction sales were more than three times the gross auction sales of its closest direct competitor in the industrial equipment auction market. In addition, based upon an industry resource that reports results for 35 of the largest companies in the construction segment of the industrial equipment auction market, in calendar 1996 the Company's reported gross auction sales in that segment exceeded the combined gross auction sales of the other 34 reported companies. |
| Business Plan |
| The company�s strategic objective is to continue its profitable growth by increasing income from operations in the Company's existing markets through developing new and upgrading existing permanent auction sites, and by expanding into new geographic markets. The Company is also assessing possible opportunities to expand its presence in market segments that the Company has not historically emphasized. The key elements of the company�s strategy are: (I) Increase Income from Operations in Existing Geographic Markets, (ii) Expand into New Geographic Markets and (iii) Expand into New Auction Market Segments. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to acquire and develop additional auction sites, to improve existing sites and for general corporate purposes. |
| Officer Name | Title | Age |
| David E. Ritchie | Chairman of the Board and ECEO | 61 |
| C. Russell Cmolik | Director, President and Chief Operating Officer | 51 |
| Pter J. Blake | Director, Vice President, Finance and Chief Financial Officer | 36 |
| John T. Wild | Vice President, Administration and Secretary | 61 |