NYSE$RBA

RB Global INC · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

RB Global reported strong financial results, marked by substantial revenue and GTV growth primarily driven by the acquisition of IAA, while also navigating the integration process and addressing customer shifts.

RB Global's Q3 2023 results showcase significant growth, largely attributed to the acquisition of IAA. GTV increased by 185% to $3.9 billion, and total revenue rose by 148% to $1.0 billion. The company is focused on integrating IAA and managing a shift in assignment volume from one of IAA's customers.

  • GTV increased by 185% year-over-year to $3.9 billion, including $2.2 billion from the IAA acquisition.
  • Total revenue increased by 148% year-over-year to $1.0 billion, with $557.4 million from IAA.
  • Service revenue increased by 214% year-over-year to $773.8 million, including $478.3 million from IAA.
  • Diluted adjusted earnings per share available to common stockholders increased 36% year-over-year to $0.72 per share.

Headline financials

Total Revenue

$1.02B

Previous: $411M+147.8%
EPS (adj)

$0.72

Previous: $0.53+35.8%
Total lots sold

767.3K

No prior period
Capital Expenditures

-$154M

Previous: -$26.3M-484.5%
Free Cash Flow

-$90.2M

Previous: $16.6M-642.4%
Net Income

$63.4M

Previous: $42.9M+47.8%
Operating Income

$146M

Previous: $64M+128.0%
Gross Profit

$1.02B

Previous: $411M+147.8%
Cash & Equivalents

$428M

Previous: $439M-2.4%
Total Assets

$12B

Previous: $2.82B+325.6%
Stock-Based Comp

$14.9M

Previous: $9.87M+51.0%

Revenue & EPS history

RB Global · Revenue · Quarterly

$1.02B

Q3 2023+147.8%vs Q3 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

RB Global · $1.11B total across 2 segments · Q2 2023

  • Service revenue
    $806M
  • Inventory sales revenue
    $300M

Forward guidance

RB Global is set to manage the relocation, refurbishment, and sale of Yellow Corporation's assets, while also addressing an expected assignment volume shift away from IAA.

Tailwinds

  • Expansive footprint to manage Yellow Corporation's transportation assets.
  • Multi-faceted sales strategy including private treaty, strategic bulk sales, live and digital formats.
  • Focus on operational excellence to drive profitable growth.
  • Advancing integration of IAA.
  • Quarterly cash dividend of $0.27 per common share declared.

Headwinds

  • Notice received from an IAA customer to shift assignment volume away from IAA, expected to impact revenues beginning in Q1 2024.
  • Anticipated decline in inventory rate due to prices declining faster than anticipated.
  • Higher effective tax rate.
  • Higher net interest expense.
  • Allocated earnings to Series A Senior Preferred shareholders.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+0.8%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+1.6%

Avg return

30 days after

52%

33 / 64 earnings

Positive

+15.5%

Q2 2020

Best reaction

-19.1%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.2%-1.7%+0.3%
Q4 2025+3.3%-5.5%-8.7%
Q3 2025+4.3%+6.0%+3.6%
Q1 2025+2.4%+2.4%+2.8%
Q4 2024+8.5%+6.5%+2.5%
Q3 2024+4.9%+2.0%+8.4%
Q2 2024+7.7%+10.0%+16.7%
Q1 2024+6.2%+5.9%+1.0%
Q4 2023+12.8%+11.4%+12.5%
Q3 2023-9.4%-9.4%-5.3%
Q2 2023-4.2%-9.9%-3.9%
Q1 2023-5.6%-7.7%-4.3%
Q4 2022-2.3%-3.3%-13.4%
Q3 2022-19.1%-12.0%-11.0%
Q2 2022-5.8%-2.7%-2.2%
Q1 2022+9.1%+18.2%+15.3%
Q4 2021-11.6%-10.7%+3.8%
Q3 2021+9.5%+3.9%+0.8%
Q2 2021-0.2%+1.7%+7.7%
Q1 2021-2.5%-5.8%-14.1%
Q4 2020-7.4%-7.7%-1.1%
Q3 2020+12.2%+0.5%+3.3%
Q2 2020+15.5%+19.1%+18.5%
Q1 2020+5.6%-0.3%+3.6%
Q4 2019-4.2%-3.0%-20.7%
Q3 2019-0.5%+1.0%+4.7%
Q2 2019+6.1%+9.1%+11.2%
Q1 2019-3.0%-3.9%-0.9%
Q4 2018-1.2%-7.3%-9.0%
Q3 2018+6.0%+5.4%-0.2%
Q2 2018+9.0%+9.2%+7.9%
Q1 2018-1.8%-2.5%+5.0%
Q4 2017+1.7%+0.5%-3.3%
Q3 2017-9.9%-11.1%+1.7%
Q2 2017+2.2%-0.7%+8.8%
Q1 2017-4.7%-3.4%-2.6%
Q4 2016+9.9%+9.8%+3.8%
Q3 2016+7.2%+7.5%+13.3%
Q2 2016-10.5%-14.5%+7.1%
Q1 2016+5.6%
Q4 2015+2.6%
Q3 2015+5.0%
Q2 2015+5.1%
Q1 2015+7.3%
Q4 2014-3.2%
Q3 2014-0.4%
Q2 2014-0.8%
Q1 2014-5.7%
Q4 2013+1.2%
Q3 2013-5.0%
Q2 2013-0.9%
Q1 2013-1.5%
Q4 2012+1.7%
Q3 2012+0.8%
Q2 2012+2.6%
Q1 2012-0.6%
Q4 2011-1.0%
Q3 2011-5.4%
Q2 2011+3.1%
Q1 2011+1.8%
Q4 2010-1.9%
Q3 2010+5.7%
Q2 2010-1.5%
Q1 2010+1.2%

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