RBA.TO - Earnings call 4 2022

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Operator

Good morning. My name is Michelle, and I will be your conference operator today. At this time, I would like to welcome everyone to the Ritchie Bros. Auctioneers Fourth Quarter Conference Call.

[Operator Instructions] I will now turn the call over to Mr. of and President open Intelligence, Vice call. the Rathod, Investor Market Relations to Sameer Mr. begin your may you Rathod, conference.

Sameer Rathod

fourth XXXX hello everyone call our joining and on and Thanks, and our today good to results. afternoon to quarter full-year discuss

Joining Financial Bros. Eric Executive Ritchie Ann Chief the me Bros. Officer; Chief call on Ritchie are Fandozzi, today Jacobs, Officer. and

gross a plan, revenue, identified statement of that items, of as expect, such following and transaction, will forward-looking forward-looking include and words but and IAA, expressions. Comments trends including, debt with discussion cost transaction acquisition fact, anticipated are expectations considered future similar statements, the opportunities value, estimate, the of by intend, benefit, anticipate, not The are timing, and business projections and and not uncertainties. to which risks including can proposed be involve synergies to, opportunities believe, other regarding the limited and market respect earnings,

including the the information, potential include the factors be satisfaction discussing company including opportunities closing note conditions, call, will today's related and transaction. We These during combined IAA approval, we the for for of shareholder that not estimated potential future for to timelines. ranges amounts expectations for not targets, intended does guidance or and imply costs This information to such illustrative incorporate opportunities purposes. or achieve is specific for

and and reports quarterly XX-K, Investor Relations news issued recent our this release reports and uncertainties results on to well statements our in our are EDGAR SEDAR. differ annual cause most which risks that The actual on on forward-looking afternoon could detailed significantly website from available are such and as Form as

in including with Canadian with on the filings S-X registration securities filed the make proposed We regulatory also and will acquisition, the SEC have and SEC. with Form statement IAA applicable connection authorities important

are to those read materials urged carefully. You

discuss financial also financial non-GAAP measures. non-GAAP including On certain will measures, forward-looking we this call,

XX-K directly the two, and applicable our news the financial reconciliation non-GAAP Form identification comparable measures, release, see to website. posted most the our For the of of GAAP investor financial presentation measures and

as on We predict cautioned measures. forward-looking reconciliation necessary otherwise to reliance U.S. of are unless quantitative components measures cannot management today present financial are non-GAAP are all discussed unable measures. Investors place dollars a non-GAAP financial indicated. not to figures All undue of forward-looking such

remarks, the call to Following will we prepared the open questions.

to call to Executive Now I'd like over Bros. Officer, Chief the turn Ritchie Fandozzi. Ann

Ann Fandozzi

continued to you, financial good to record Thank Ritchie everyone and XXXX Sameer, with to phenomenal us be made you excited I'm joining and today. Bros. here We afternoon performance. discuss in our in delivered results continuing environment challenging technology and of inflationary headwinds, marketplace aggressive foreign competition, a initiatives, advancing significant tight to despite progress build supply, volatility. operating our growth exchange

service to Without Speaking best-in-class possible. entire leadership my our of delivering want I focus our to the have and of who would their our dedication on all express to shown employees, none time appreciation team, of again, and behalf sincere customers. this employees to be

appointed very a was in I assets stagnant. was had of was Ritchie XXXX, lot Bros. core cash, the CEO and generated talented business When but employees, profitable solid and

bold taken leaders, have strategic have model reinvigorate growth. recruited our and and new profitable partnerships through initiatives, acquisitions, to steps Since and then, organic we redefine we operating

result, by and we our services a transaction insight solutions, business we As marketplace global a in traditional for Bros. continued to a steps Ritchie XXXX. journey auction several trusted are and transforming important from taking

all-new easier make innovation customers an of This of record is it on our and self-serve technology solutions platform, our Bros. builds X.X, in us. further digital expands invoices process with checkout do marketplace settlements. business with for experience, to that the our Ritchie of and piloting ecosystem track

into can ecosystem. these satellite have We our locations continue attract to and customers test yard that learned new

of yards, has sales our in inside sellers, long with through sales team our new implemented coverage satellite tail have model tandem GTV working target whether a enabled that We growth, the to expand XX% sits across are in relationships. or to field the accelerated sales where the to ] our resources customer equipment put the verticals, more we [ making our venue investments of

continue as grow record solutions have SmartEquip, Rouse, performance. Management stand-alone Services Bros. our Ritchie Financial Inventory and System, to and all

are solutions so ahead greater digital the these far, we strategy opportunities performance about we excited of even While scales. marketplace our see as

over over listings records, of funded our speaking Ritchie talk transacted $X of $X [ And on billion platform, Financial List in let's ones we over annual on volume year, Ritchie some billion Bros. the Marketplace-E XX,XXX about set the active over past Services, million ]. GTV, by $XXX

organizations year-over-year per our of earnings December. was IMS a an end increased year-over-year the $X.XX. of in number activated record Total XX% to share at adjusted Also, up incredible XXX%

we've We milestones are XXXX. so the proud in achieved of

from me Clearly, we there the that are emerging. the expect past transition future. discussing themes few what for Let a discussing are to

First, remain are of still our projects there out there, a busy. and lot customers

some most so of scaling IAA customers our said, them acquisition their satellite they and equipment softening help us in critical to verticals. to complex the certain by one know many grow GTV excited excess IAA yards. while yard is we coming significantly and is capacity to to of to form Brothers are challenges. This the loosening this reasons our is using the navigate their is That markets. them customers, This with are our expect serve in the help new some basis beginning want What in a trend Ritchie we are that customers, for end for we see supply starting

acquisition mid-XXXX together have as identified Board for Bros. Directors, our in more and of potential possible a than with a a We year. IAA IAA for combination evaluated back of Ritchie

adjacent Bros., and operating growth believe we reach strategic adding combination accelerate IAA, into for an of our services this The vertical expertise. expand logic With expansion is by attractive our clear. Ritchie and drive margin we can

full potential shown economic well. IAA We attractive resilience which tailwinds. market player as and market, leading opportunity in a in strong fulfill and cycles. a has IAA's the vehicle is to IAA have solid throughout operates countercyclicality secular has this the

us stand-alone capacity. yard Ritchie IAA's XX% yards to are XXX IAA has approximately new already available allow that our an customers, complements expansive with Ritchie accelerate will strategy. yard footprint that Bros., Bros.

agility will we our is The us provide here expansion. And create allow customers' margin combining key locations higher needs network the better with will and together. footprint unlock levels and meet that all to that growth of of us the to a are

record we million recently more opportunities, identified clearly see in a and the EBITDA million to we $XXX the to knowledge achievable of and proven or cost that potential take acquiring and highlighted, companies. has Bros. of a our synergies. unlock to automotive growth $XXX million in $XXX expected knowing at extensive Investors including As should million team track $XXX in integrating Ritchie industry

integration started. already integration, the has speaking of And planning

IMO, operators executed experienced this ensure established integration leaders and We dedicated have is comprised Office, plan an Integration to or seamlessly. of Management

[ The ] IMO drive consultancy committee charters, to overseen by and KPIs firms by an milestones supported be will a steering will third-party have internal that accountability. leading further and

proposition structure we our further value announced a weeks we Bros. IAA shareholders. enhance both As just and few the transaction with terms IAA the to Ritchie ago, of for amended

We shareholders compelling are of new recognize and benefits the have the many existing pleased with the received feedback acquisition. who we from

our encourage ahead the fruition shareholders ] vote and the bring companies meeting together. transaction in to inherent us We of realize to bringing X this March value X help to [

about call to Eric some our the hand Jacobs results. information now me fourth additional highlight quarter financial Let to

Eric Jacobs

extraordinary with Like entire business. our did I'm thank joining job Ann. results. Thank our who's the Ann, afternoon. this to Welcome, and who pleased call everyone, focusing an team growing record would And our you, on like I

the impact our and increased the unfavorable to driven prices, exchange, actual a This Turning our volumes, foreign unfavorable year-over-year When deflating continued increased you X% foreign fourth $X.X the on of by to constant GTV In was negative mix asset in a currency X% of basis. exchange. results. quarter, offset lot by exclude billion. rebound GTV partially impact

fourth from by strategic customers. our a Breaking year-over-year, further, volumes down up little XX% quarter volumes this were lot account driven record

sold rental compression the XX% quarter However, lot the us, of of overall increase XXXX transportation lower-value and from used mix drives came This an versus unit comes was loosening much price [ some average ] assets. fourth per asset from and it supply. price for the volume also with as down

At exchange U.S. in international same our we GTV and from Geographically, regions offset the strong North solid foreign impact by masked growth our dollar. from time, impressive execution negative saw by strength Canadian was driven America, the a team. from

about the smallest the perspective. a thinking that GTV, you're seasonal recall to from If be tends first quarter modeling

pressure continue in to the unit higher offset of trend expect pricing, prices volumes, first selling continued average due category quarter. also on by the We and softer assets to

addition, note price were In unit supply. to we that due of is it important during first XXXX, average the experiencing low period to post-COVID highest quarter selling our

Ritchie model GTV as year-over-year rate. GTV the of foreign as and are Bros. IAA a well basis our in as close expect stand-alone grow Also, we recommending to that a the March. less currency, mid-single the general half account first digits low first growth into comment, quarter fourth to than we quarter in analysts investors expect we latter this and on quarter. Therefore, for all to Taking

the Total services. revenue. growth uplift driven service quarter as by the our the XX%, to as continued in marketplace fees in past during was that Turning year implemented buyer in revenue increased well fourth

contribution benefited to year. also full-quarter from a last We compared SmartEquip from the

of total service from SmartEquip increased impact revenue the Excluding both XX% periods, year-over-year.

the per EBITDA With Also, on $X.XX. adjusted regards share top adjusted to strong line. flow-through earnings, XX% increased earnings from our increased XX% to

and somewhat experience in headwind to lot and anticipated we a we manual EBITDA Therefore, these year margin are added flow-through as will support to likely office in volumes resources as in adjusted may XXXX the we operations through back navigating volumes. An our process our increase require still during processes.

impact the in Regarding U.S. the lower the expected changes reform. slightly due rate, estimate than lower was effective approximately XX.X% the rate last quarter, to than the fourth Tax of was tax the of year. the excluding of in XX.X%, items, fourth same quarter impact quarter taxes, tax in adjusted the we in

rate, XX% tax IAA to adjusted the the excluding XX% be expect for and impact the transaction, between and We the of first effective items quarter.

effective to impact rate due tax costs. the tax different be from GAAP acquisition rate of could Our much the

came our period. A&M our Auctions and the increase in prior-year driven quarter, was In to percentage take revenue a fees. XX.X% points robust A&M segment. Marketplaces rate, to primarily for the up at our XX%. A&M GTV of increased services This approximately compared buyer revenue an service by total uplift as basis a in XX Turning

to commissions our accounts, strategic revenue level that GTV typically GTV lower compared regional Note the of levels commission business. due higher percentage from to declined of sourced this which as realize our a quarter

commission lower into slightly trend We quarter rate of strategic first take momentum group continues. expect account to our the as this continue

Moving to inventory sales. A&M

sales and driven United strong by a preferences. the be inventory sales reminder, to the all As inventory are contributed particularly In fourth States. tend from lumpy quarter, with regions, increased year-over-year, XX% consignor growth

For performance the at is pricing higher at XX.X%, excellent our the inventory quarter, the by of in inventory came end reflects a environment ranges. rate This dynamic at-risk which rate in teams. historical

it where win GTV, we focus accelerating structuring our we at-risk to sense. on continue makes As will deals

Turning to expenses.

selling, general Our cost than X%. and plus expenses, X% were other as nonrecurring flow-through. exclusive administrative were approximately This the given and of end Selling, drive up at administrative of quarter, and our services revenue expenses general is helped well. the of which less up low charges, service growth, payments and total range, last share-based

selling, be charges. first exclusive For $XXX of general million million a basis, stand-alone quarter, $XXX expenses other nonrecurring the administrative Bros. share-based and we between expect to Ritchie and on and payments

Turning flow liquidity. to cash and

XXX% flow bolt-on remains million, income exclude adjusted XX-month very the free $XXX or cash proceeds. trailing sales cash property XXX% flow if of robust is our which Our operating non-GAAP of with net you

adjusted debt EBITDA million. non-GAAP fourth the trailing of quarter, At ratio net debt to net X.Xx. our adjusted was amount the $XXX was XX-month end Our

March transaction, IAA the financings. assuming quarter, marketing add financings. currently closing to our the first $XX will million expense We interest additional with million connection plan incremental to In close these mid note $XX a financings an estimate in we late for and to on

As $XX to a in be IAA first million interest result, the million, we inclusive the expect $XX fund contemplated acquisition. quarter and to of the expense between financings

X.X%. be total quarterly billion and interest of $X.X expect a to between starting $XX debt of of million X.X% IAA, we between purposes, blended $XX of and million to expected on quarter modeling for the an amount the Also expense rate and second XXXX, anticipated closing and subject based interest

on stated I've delevering be post quickly will we previously, closing. As focusing

have explaining I wanted was our how my on and both we to expect calculating issued adjusted. recently comments share, the to Starboard by preferred reported will equity and per to for convertible it earnings the end that account impact

numbers slide. on go through the will calculations not and I the all

dilutive. dilutive per U.S. However, earnings the accepted method, compute expecting detailed the method share amount. lower to Currently, if-converted us more accounting is two-class the on we the is more either using generally are two-class per share slide, be or require method, produces this principles which to whichever and earnings

an requirements. have our on method impact It's the will per adjusted note reporting share important to will impact specific It GAAP due to only the two-class that not our EBITDA. earnings

While we least dividend impact method $X.XX per basis, in per to forward. going the adjusted by preferred estimated on not two-class share EPS guidance, the full-quarter provide a $X.XX do at could an adjusted EPS quarter

my I here. again will back remarks time all your Ann. Thank today. to now for end you And

Ann Fandozzi

Ritchie Eric. supported we macroeconomic Thank continued continued XXXX, in faced a was growth our Overall, Bros. us our the our journey. continue allow you, the environment commitment customers and know transformation XXXX dynamic customers we environment I fallout help will from pandemic, very and Regardless of the them geopolitical uncertainty. vision to fluid as through to a year that strategic to our for best the decisions make economic

largest for our XXXX. any the and event not momentum, Orlando, the event, team that dictate even is strong into Orlando quarter. year, a off here Orlando we calendar as our of despite kicking in for does the with being auction transform Recall performance specific marketplace, one year this entire finished We

want by Ritchie close I years decades the Bros. are of for we close and excited that to by IAA saying come. benefits expected to and expected its to acquisition the

call open questions. the With for that, let's

Operator

Your first Michael Doumet of question Scotiabank. [Operator Instructions] from comes

Michael Doumet

results. of on these all, First great congrats

I wanted on ask to GTV. question, First

Another as is rise. really see the I guess, we'll expectation, number. good economy volume going forward, transactions the that slows,

for QX, about up talked being volumes So XX%. you

that And that despite upside you you why guess, in the way conditions trend a we're slower help there expect Is supply volumes us QX as Eric, seeing? to volume can growth quantify would GTV the lot I normalize?

Ann Fandozzi

I'll over Eric. it to then and here, turn Ann start, me let Michael,

So let they think your how we're words set and -- and me thank about GTV obviously, you exceptionally proud quarter, the kind stage. the we the When our team performed. for just about we're of

GTV, about in think you three keep actually things When there's mind. to

So mix. about obviously I'm for a also talk step obviously just volumes, right? pricing, There's there's a We as back second. lot. There's going to but them take

about us, all is so as business, our it really And important talk consider to and modeling consider we for when we three.

about kind there there, mix the fee And of there's the our obviously, product. the Even strategic the they're mix. we mix And regional product different of very seller in remarks preceded the accounts, they talk then Eric mix structures is then what when have customer also age business. is of about flavors if Meaning, Q&A. the product it's then the two and than is itself. even mix, that spoke large There of the

to volume and something let So on that I And me it's It's Eric caution. over not everybody with turn your that, just question. just specifically ask to price. it to speak

Eric Jacobs

Thanks, Ann.

things. So of Michael, a -- I couple

strategic talked in for rental, lower the those we So and assets to that's accounts, impact in assets, those going about particular, the price GTV. transportation, being that some

some expected estate had quarter I was we You Canada, last first have the had was high. that's as deals in some price year, lots. of repeat unique And in mentioned, also some real really agriculture XXXX. We not that -- to

performing they did those a year well. foreign are regions as international, then some differently still And last little slight And on headwinds you have currency. than

still will saw little a strong, overall but what we bit in why from that's GTV we QX. think relatively be So that down

Michael Doumet

maybe with IAA's the combined the side. well, from IAA outperformance of also or And the like EBITDA closer you think what most a basis? looks billion for just to tonight out maybe helpful. Can speak to maybe versus, I on the what $X go-forward think second XXXX That's outperform. Ritchie outperformance we comes the think, results we question, the $XXX and should million did and it's as

Ann Fandozzi

Yes.

and the proud we're for of team of proud yes, our Michael, the obviously delivering. and very headline thank IAA team think -- you, I

headline commitments, think execution here is the I right? and

set one very seen So fiercely. been that is things thing manage from we team, I years objectives, Bros. in think the you've we we learn, we we controlled very, here, test, are Ritchie certainly and the stretch, I've X obviously that the that

us from that You saw in XXXX.

saw team -- of did and exceptionally the the for You proud 'XX, has and kind done set in up we ourselves of work it success.

very Obviously, in they've together, we're getting saw been know acquisition for themselves bar. confident certainly quite tuning And this how on of all you come working both to a when and we've IAA, time proud and very some They're to on similar QX it together of driving cultures. that going other's control. we're that make in the their we're done. to better. And each we things only

add. Here's Eric to

Eric Jacobs

due the and fees relatively inventory to So rates. we simply performance line strong upfront had top stated, buyer

helped we that the performance line top as strong through well as to that in strong the bottom the -- quarter. flow had So long as containment cost line

that process that's volumes significant That to we we processes, efficient that some with. with to those of do still with on of caution -- able said, we to were amount and an more have our -- want that basis. we something expect manual -- -- So volume that's just deal

Michael Doumet

Amazing. Really to helpful, deal and for the luck best close. of

Ann Fandozzi

Thank you.

Operator

The of next from comes Bank Feniger question of Michael America.

Michael Feniger

follow to the lot on more recognize but coming and a than also you've there, impressive. quarter lot in was past. up labor I up the growth in that, of virtual more flow-through really been mean I Just you're is the there's

So think that increase of cost lower. would service I be your that,

trying unpack like, So XX% flow-through to just as comments how EBITDA leverage we to up on should year. or expect Eric, pickup work if next the well given the service is up to trying next framework be on around can XX%, for revenue get operating XX%? year, the volumes. the Just

Ann Fandozzi

me let Yes, the start at Michael, [ ]. so low

kind out of about news there been there's some this. So

SG&A earnings you're we to that so every increase. talk why continuing saving us virtual, more call, it's You're remind on costs. and I

be let's clear. So

the technology have of full we better. to we experience fully virtual, we video. quite that went bit XXX offset added but even now that so is a When customer ramping, We stopped

in not have the actually process the you the down. to they take equipment, if come cost a SG&A So look at

So Ritchie in savings saving the things, in spend obviously, kind SG&A GTV. get I dollars travel where are COVID, long where, know we salespeople a there's and because back as money kind travel those those we're ton came salespeople to this and was Bros. happy on of of of result the to our the really out during there entertainment as encourage

So facing been in cut bit another which ]. of have notable to same. was to that quite from satellite the actually kind basis than if of XXX the stayed kind labor requires check some a buyer from brass-tacks, put place, all offset bring technology, one to the just bucket [ just added you has the incremental of yards services cost for look the of cost to The It's which really only kind more if most a was We've of every in. ramping, value-added will. move kind of a you of fruition that by

the Those talk me in turn are it let But over kind asking. flow-through question to facts. Eric the to you're of about

Michael Doumet

Michael. Thanks, Yes.

we look, formal give quarter-to-quarter. don't guidance So

So term. had yes, some you the difficult of the let little is longer requests for just part request a talk me But the about that of us.

expect that efficiency flow-through, come frankly, some when will more we the processes launched in have office, you'll of But technology gains. do we seeing that way have. the is of that manual and marketplace start can we'll that back we And quite more some the in reduce, a

it stand-alone. talked you in that those more us will this our take about technology and quite IAA marketplace can investors we hand, on bit. allow each go Also, When analysts, Ann's acquisition the and scale our that to investments much to efficiently the their hand and the yard in talked than technology in businesses of investments a about we

see down So us significant that's come for we the that pipe. benefit a

Michael Feniger

big-picture business just core Great. for is well. of incredibly you. more And is this performing the Ann, a Simply, question

with all You 'XX. that accelerate indications just to in going actually grew XX%, growth is EBITDA

very outlook for when So is other a at and uncertain Ritchie's executing bright, the it's time majority of companies. is macro

the So now? is do a behind I this right why working? not do guess, to integration a feel put playbook time you Or definitely more capital that big why is

Ann Fandozzi

you Yes. for asking question. that Thank

this of know Ritchie the happening? the deal I mark not why literally case Bros.? Is -- any "Hey, it's business be core is from makes on, Nothing This further stronger. it the around were people both of Michael, in So there saying, truth." weakness early businesses is can question

this Ritchie it The makes answer is, better. stronger. Bros. It makes

what spoke own So just give few examples, to, right? me just Let exactly which efficiency. again, Eric means our a

manual. spoken length, our are We've at processes

invested story are. years those technology. back-office ago, of material not had a in a in that because processes yard accounting or have while, the specifically have We weakness we of Again, manual a any of been that how for actually painfully couple our

does IAA with that transactions the we fraction a of number of workforce. XXx do, the

efficiency, So from that you not better going get of are more kind going side. to get only you're flow-through to

excited our We've growth been drive spending marketplace them. technology, IAA done. We're rates, able we to and that on unleash resources attach our not has money can and so something be services to

huge us to a similarly growth We is of major So absorption a kind terms for can efficiency. our yards. advantage we're buying countercyclical of unlock unlock of business that strategic lever in and form ours. a cost satellite the We in

the there's somebody Please what's satellite being the what's not strategy. satellite to yard driven there out about that's some That's in confusion if excavator, an has yards. crane understand coming a not or

have you or crane an Ritchie's That's no great. of issue sites. you of excavator, it one miles trucking to have If a hundreds

largely to those we say, to just lots Bros. -- expect Those when of things get very very order the for sellers equipment. is What's footprint that core take transportation in you equipment, XXx to precluded coming Overnight, yards very, our the are take unlock. where to is the satellite to yards. and one we the transportation is as small Ritchie it

potential. excited. a So we're make And their side, better unlock that can we even the we business incredibly get IAA then profitable on and countercyclical

not So it a and, is this or an strategy. is

Operator

The next William question from De of comes Larry Blair. Maria

Lawrence De Maria

Quick questions.

comments. Ann, First on off, your intense noted you intro competition

on color more some that. us give Just

are it conversion that to? and some talk what have really referring secondly, about IMS, on that rates Is you seeing means? we you're is auctions are the XXX%. what doing business? We that new And ], Can

Ann Fandozzi

lot of background -- so a there's Larry, noise. could if Yes, you just

the was just IMS question. about your can if If one you you understand first and but restate restate first... XXX%, I just second the can

Lawrence De Maria

Sure.

in can The you're in Sorry. some initial competition intense just clarity of environment? give you the terms noted about comment, you there talking the what competitive to

Ann Fandozzi

Thank correct. it. restating for Yes, you

So function a of function competition what supply of is the of out the intense still is really that low I exists kind a there. stated,

kind Ritchie deal are Those you that Eric depressed. are not with about is a gimmes. speak why competition, at-risk Bros., of the So those of met bit quite heard of single every kind which

As of margin, those, lean those come we kind kind more at than lower that of a obviously, into core consignment business. regional

what So that to. that's refers competition

similarly, an And as impeditive That's similarly like obviously margin margin again, lower so strategic happening more the deals, but lower then than volume more why account But it, comes what's there. business and they're that's inventory at explanation we more for well. counteract.

Under XXX%. IMS, the

So to phase, is customers in the want right? much It way like gateway we still is into first to the launched. the that in. ecosystem is think for we're a bring the the business about marketplace, It because that gateway IMS we listings

-- they're really wants in a is the customer with IMS. IMS Bros., today, through consign So brought Ritchie if to

So really customers reflected system that then for you're them. team's seeing ability rate the to all in our so of transact into these the we XXX% can onboard growth

that be and is next of The the phase monetization is phase put marketplace we of the of to phase The obviously kind technology after their next KPIs pull of the through as next the really system, inventory set that forward. assets. will that And then nontransaction those next into clicks. phase the the is really

customers, kind think to is XXX% of critical of onboarding first the way gateway the step that incredibly is the the going about really, well. into So

Operator

comes [Operator question Instructions] The Gary next Prestopino from Barrington from Research.

Gary Prestopino

on XXXX, looking is that any really betterment -- In the not questions. looking you -- that on? GMV year business, assume in just as would just Or the for side? of as couple looking improvement A at I legacy goes supply you're of are at gradual you're or the

Ann Fandozzi

Yes, Gary.

it's yes, interesting. So

click mix but what So you're seeing down. clicks see don't the is guys you up, you're -- that lots seeing the

be So that's going why it's to gradual.

growth word be in why below come of interrelationship a kind cautioned are because, the increase. like I again, this which that starting QX, between to terms is you to of used QX lots, Eric is will there price, the that starting the which down; rate, and

why two. mix, which is But is click, offsets in then the game. lower-end stuff, We're coming the the period down. volumes primarily than starting where the crossover to the and That's gradual are more name the but this kind of the of it's pricing

kind so, that's through year. of the optimistic, the So we're why seeing build but and cautiously

Gary Prestopino

about more talking the like you're that items are fair... and like items not bigger trucks, vans, that, plentiful ticket when So as transportation like is things

Ann Fandozzi

of... Very low end kind smaller -- those And scissor well numbers for said. transact the low of that much things kind of end, the lifts, of kind instead

Gary Prestopino

give Okay. of now States? satellite And have the in worldwide then could you United idea us an how many yards and you

Ann Fandozzi

we -- that misspeak, We this then and quarter a States, have are opened I XX I to worldwide. but in quarter, were U.S. we want And where say have few. few dozen so want we in last -- We United largely the yes, last we don't to about a closed a are the in

So at at. were right net-net, about the same we we're level

Gary Prestopino

suffice is yards? satellite the the still going U.S. may yards IAA, add acquisition is is the plan of Or to forward satellite far in acquisition? with to to plan the done as have for The adding what going you as pre continue that

Ann Fandozzi

to only a just not satellite will the it's it core to Gary, a of deterrent suffice, decade's much. them huge is for a what yard it coming Bros. trucking too which things price, of Again, Ritchie because percentage almost transaction yards is a is final are literally worth for that as acceleration initiative.

transportation. primarily So

truck is -- happen. to Nobody at everybody, F-XXX, #X Ford for our truck. F-XXX Ford pickup SKU their going truck XXX and a our a miles, is selling reminder Again, that's single take actually XX-year-old going not to

our to yards. satellite X are about the -- lifts these are We're so transaction satellite why We acreage that's things that right? coming acres scissor small, are that is These those are These talking the yards. items. $X,XXX, required literally low-end

]. of they put name They're game already as close them of the the they is stacked And already exist, already can have the sellers, is that yard you capacity. The the as [ IAA to will idea go. they

every of as that incremental, incredible then goes unit literally, It's a obviously, those is as revenue the decade's and an worth So flow-through. just and model yards much to acceleration.

Operator

The from next Bryan James. of Raymond question comes Fast

Bryan Fast

Yes.

the you those for Just based other were of services some growth? discuss drivers Or on various key broad kind what revenue, can was of services? that it year-over-year across

Eric Jacobs

Eric. It's

the Rouse, can seeing doing we're businesses. over doing effectively. the well. all so whether basis, tightly it's RBFS, time, is all we the scale more And all more areas, they well stand-alone integrate those different stand-alone goal even marketplace built SmartEquip, into that -- growth across a as to So But the on

Ann Fandozzi

a follow-up being -- that come just that. and additional pure able to of on to same assets is which just that that technology And IAA, from then margin and offering the then unleash is

Bryan Fast

could sales, And then inventory those guess, of levels. the Maybe you end the margins just on of maybe about now the sustainability top the that realized range? I it's bit at talk a

Eric Jacobs

want over It's range. do blessings some to we the at my look great trend it's that the Look, there. from not mixed see we at And time, of perspective. to kind higher caution end of are the margins you high if those are -- of

points. to that we're But deals losing -- for we are get aggressively want not we couple sure also we're competing because trying to not of that basis last make business and

of volumes opportunity we there's the the want So as come, we go that part think That's after to it. a cost. huge

And is there. lot a then there out competition of

make to want everything we're doing we can. we So sure that

level you to at of that have just may but that's the if way least stay at say, in you're just it's data going a something think effectively, level not want as -- because look, -- is and we're let's -- more to we that say, to kind that -- to modeling tale cautionary to at we are of yes, future. future great we short-term of at look, the short-term model for don't don't a that just thinking So looking do compete

Operator

time. There further are at remarks. no questions with this Please continue closing

Ann Fandozzi

Wonderful. so much. Thank you take I'll here. it And from

are I'm end team, a all the auction, Bros. on to incredible going thanking joining in at to Orlando us, our things the you for knee always, heartfelt thank everybody whom deep As many really but Ritchie customer-related. currently with call of

of So huge to a you thank all you.

everything in value acquisition and and and we're accomplished. core acceleration upcoming has footing decades we to Ritchie that of and for come. the us -- very are let proud years IAA unlock excited the me team about it very, just that Bros. very literally putting can been say And very, a -- for that the And different the very and

all. you So thank

Operator

Ladies participation conclude thank and does for you that conference We your disconnect call gentlemen, the your you lines. today. for this ask and please

RB Global (RBA) 21 Feb 232022 Q4 Earnings call transcript