0001558370-23-013210.txt : 20230803 0001558370-23-013210.hdr.sgml : 20230803 20230803160652 ACCESSION NUMBER: 0001558370-23-013210 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 105 CONFORMED PERIOD OF REPORT: 20230630 FILED AS OF DATE: 20230803 DATE AS OF CHANGE: 20230803 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RB GLOBAL INC. CENTRAL INDEX KEY: 0001046102 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-BUSINESS SERVICES, NEC [7389] IRS NUMBER: 000000000 STATE OF INCORPORATION: A6 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-13425 FILM NUMBER: 231139900 BUSINESS ADDRESS: STREET 1: TWO WESTBROOK CORPORATE CENTER STREET 2: SUITE 500 CITY: WESTCHESTER STATE: IL ZIP: 60154 BUSINESS PHONE: 708-492-7000 MAIL ADDRESS: STREET 1: TWO WESTBROOK CORPORATE CENTER STREET 2: SUITE 500 CITY: WESTCHESTER STATE: IL ZIP: 60154 FORMER COMPANY: FORMER CONFORMED NAME: RITCHIE BROS AUCTIONEERS INC DATE OF NAME CHANGE: 19970912 10-Q 1 rba-20230630x10q.htm 10-Q
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to ______

Commission file number: 001-13425

Graphic

RB Global, Inc.

(Exact Name of Registrant as Specified in its Charter)

Canada

 

98-0626225

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification No.)

 

Two Westbrook Corporate Center, Suite 500,

 

 

Westchester, Illinois, USA

 

60154

(Address of Principal Executive Offices)

 

(Zip Code)

(708) 492-7000

(Registrant’s Telephone Number, including Area Code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common shares

RBA

New York Stock Exchange

Common Share Purchase Rights

N/A

New York Stock Exchange

Indicate by checkmark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer 

Accelerated filer 

Non-accelerated filer 

Smaller reporting company 

Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act):

Yes No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practical date: 182,140,903 common shares, without par value, outstanding as of August 2, 2023.

PART I – FINANCIAL INFORMATION

ITEM 1:           CONSOLIDATED FINANCIAL STATEMENTS

Condensed Consolidated Income Statements

(Expressed in millions of U.S. dollars, except share and per share data)

(Unaudited)

Three months ended

Six months ended

June 30, 

June 30, 

    

2023

    

2022

    

2023

    

2022

Revenue:

  

  

  

  

Service revenue

$

806.1

$

286.5

$

1,149.6

$

531.4

Inventory sales revenue

 

300.4

 

198.0

 

469.3

 

347.1

Total revenue

 

1,106.5

 

484.5

 

1,618.9

 

878.5

Operating expenses:

 

  

 

  

 

  

 

  

Costs of services

 

287.3

 

45.0

 

363.7

 

84.1

Cost of inventory sold

 

291.9

 

176.2

 

443.4

 

307.8

Selling, general and administrative

 

194.5

 

144.3

 

342.7

 

270.9

Acquisition-related and integration costs

 

46.3

 

3.4

 

172.5

 

13.0

Depreciation and amortization

 

109.6

 

24.3

 

145.8

 

48.5

Total operating expenses

 

929.6

 

393.2

 

1,468.1

 

724.3

Gain on disposition of property, plant and equipment

 

2.7

 

0.3

3.9

170.2

Operating income

 

179.6

 

91.6

 

154.7

 

324.4

Interest expense

 

(65.0)

 

(18.5)

 

(85.9)

 

(39.1)

Interest income

5.0

0.9

11.3

1.4

Change in fair value of derivatives, net

 

 

 

 

1.3

Other income, net

 

0.2

 

0.8

 

2.6

 

1.1

Foreign exchange (loss) gain

(0.4)

0.2

(0.7)

0.3

Income before income taxes

 

119.4

 

75.0

 

82.0

 

289.4

Income tax expense

32.6

21.6

23.4

57.9

Net income

$

86.8

$

53.4

$

58.6

$

231.5

Net income attributable to:

 

  

 

  

 

  

 

  

Controlling interests

$

86.9

$

53.4

$

58.8

$

231.5

Non-controlling interests

 

 

 

 

Redeemable non-controlling interests

 

(0.1)

 

(0.2)

Net income

$

86.8

$

53.4

$

58.6

$

231.5

Net income attributable to controlling interests

86.9

53.4

58.8

231.5

Cumulative dividends on Series A Senior Preferred Shares

 

(6.7)

 

 

(10.9)

 

Allocated earnings to Series A Senior Preferred Shares

(2.8)

(3.7)

Net income available to common stockholders

$

77.4

$

53.4

$

44.2

$

231.5

Earnings per share available to common stockholders:

 

  

 

  

 

  

 

  

Basic

$

0.43

$

0.48

$

0.29

$

2.09

Diluted

$

0.42

$

0.48

$

0.29

$

2.07

Weighted average number of shares outstanding:

 

  

 

  

 

  

 

  

Basic

 

181,860,026

 

110,760,339

 

151,343,397

 

110,705,182

Diluted

 

182,810,399

 

111,705,102

 

152,404,830

 

111,681,644

RB Global, Inc.

1

See accompanying notes to the condensed consolidated financial statements.

Condensed Consolidated Statements of Comprehensive Income

(Expressed in millions of U.S. dollars)

(Unaudited)

Three months ended

Six months ended

    

June 30, 

June 30, 

2023

    

2022

    

2023

    

2022

Net income

$

86.8

$

53.4

$

58.6

$

231.5

Other comprehensive income, net of income tax:

 

 

  

 

  

 

  

Foreign currency translation adjustment

 

17.9

 

(22.8)

 

33.0

 

(23.9)

Total comprehensive income

$

104.7

$

30.6

$

91.6

$

207.6

Total comprehensive income attributable to:

 

  

 

  

 

  

 

  

Controlling interests

$

104.8

$

30.6

$

91.8

$

207.6

Non-controlling interests

 

 

 

 

Redeemable non-controlling interests

(0.1)

(0.2)

Total comprehensive income

$

104.7

$

30.6

$

91.6

$

207.6

See accompanying notes to the condensed consolidated financial statements.

RB Global, Inc.

2

Condensed Consolidated Balance Sheets

(Expressed in millions of U.S. dollars, except share data)

(Unaudited)

June 30, 

December 31,

    

2023

    

2022

Assets

Cash and cash equivalents

$

432.9

$

494.3

Restricted cash

 

140.4

 

131.6

Trade and other receivables

 

899.2

 

186.5

Less: allowance for credit losses

(4.5)

(3.3)

Prepaid consigned vehicle charges

56.0

Inventory

 

179.9

 

103.1

Other current assets

 

84.3

 

48.3

Income taxes receivable

 

44.1

 

2.6

Total current assets

 

1,832.3

 

963.1

Property, plant and equipment

 

1,137.9

 

459.1

Operating lease right-of-use assets

1,411.3

123.0

Other non-current assets

 

81.2

 

40.4

Intangible assets

 

2,734.6

 

322.7

Goodwill

 

4,705.2

 

948.8

Deferred tax assets

 

8.9

 

6.6

Total assets

$

11,911.4

$

2,863.7

Liabilities, Temporary Equity and Equity

 

  

 

  

Auction proceeds payable

$

633.7

$

449.0

Trade and other liabilities

 

609.1

 

258.7

Current operating lease liabilities

98.8

12.7

Income taxes payable

 

6.5

 

41.3

Short-term debt

 

17.2

 

29.1

Current portion of long-term debt

 

18.6

 

4.4

Total current liabilities

 

1,383.9

 

795.2

Long-term operating lease liabilities

1,285.0

111.9

Long-term debt

 

3,104.8

 

577.1

Other non-current liabilities

 

56.3

 

35.4

Deferred tax liabilities

 

668.6

 

54.0

Total liabilities

 

6,498.6

 

1,573.6

Temporary equity:

Series A Senior Preferred Shares; no par value, shares authorized, issued and outstanding: 485,000,000 (December 31, 2022: nil)

482.0

Redeemable non-controlling interest

8.7

Stockholders' equity:

 

  

 

  

Share capital:

 

  

 

  

Common stock; no par value, unlimited shares authorized, issued and outstanding shares: 181,983,976 (December 31, 2022: 110,881,363)

 

3,995.1

 

246.3

Additional paid-in capital

 

89.7

 

85.3

Retained earnings

 

887.1

 

1,043.2

Accumulated other comprehensive loss

 

(52.1)

 

(85.1)

Stockholders' equity

 

4,919.8

 

1,289.6

Non-controlling interests

 

2.3

 

0.5

Total stockholders' equity

 

4,922.1

 

1,290.1

Total liabilities, temporary equity and equity

$

11,911.4

$

2,863.7

See accompanying notes to the condensed consolidated financial statements.

RB Global, Inc.

3

Condensed Consolidated Statements of Changes in Temporary Equity and Equity

(Expressed in millions of U.S. dollars, except where noted)

(Unaudited)

Attributable to common stockholders

Redeemable

Additional

Accumulated

Non-

Senior A Senior Preferred Shares

non-

Common stock

paid-In

other

controlling

Number of

controlling

Number of

capital

Retained

comprehensive

interest

Total

Three months ended June 30, 2023

   

shares

   

Amount

   

interest

   

shares

   

Amount

   

("APIC")

   

earnings

   

loss

   

("NCI")

   

equity

Balance, March 31, 2023

485,000,000

$

482.0

$

8.8

181,788,431

$

3,984.5

$

88.8

$

858.2

$

(70.0)

$

2.3

$

4,863.8

Net income

 

 

 

(0.1)

 

 

 

86.9

 

 

 

86.9

Other comprehensive income

 

 

 

 

 

 

 

17.9

 

 

17.9

 

 

 

(0.1)

 

 

 

86.9

 

17.9

 

 

104.8

Stock option exercises

 

 

 

81,797

4.0

 

(0.8)

 

 

 

 

3.2

Issuance of common stock related to vesting of share units

 

 

 

113,748

6.3

 

(11.1)

 

 

 

 

(4.8)

Share-based continuing employment costs related to business combinations

 

 

 

0.3

 

0.5

 

 

 

 

0.8

Stock option compensation expense

2.0

2.0

Equity-classified share units expense

9.9

 

 

 

9.9

Equity-classified share units dividend equivalents

0.4

(0.4)

 

 

 

Participating dividends on Series A Senior Preferred Shares

(1.8)

 

(1.8)

Cumulative 5.5% dividends on Series A Senior Preferred Shares

(6.7)

 

(6.7)

Dividends paid to common stockholders

 

 

 

 

 

 

(49.1)

 

 

 

(49.1)

Balance, June 30, 2023

485,000,000

$

482.0

$

8.7

181,983,976

$

3,995.1

$

89.7

$

887.1

$

(52.1)

$

2.3

$

4,922.1

Three months ended June 30, 2022

 

  

 

  

 

  

  

 

  

 

  

 

  

 

  

 

  

 

  

Balance, March 31, 2022

$

$

110,735,243

$

231.1

$

61.1

$

989.9

$

(57.1)

$

0.4

$

1,225.4

Net income

 

 

 

 

 

 

 

 

53.4

 

 

 

53.4

Other comprehensive loss

 

 

 

 

 

 

 

 

 

(22.8)

 

 

(22.8)

 

 

 

 

 

 

 

 

53.4

 

(22.8)

 

 

30.6

Stock option exercises

 

 

 

 

 

55,935

 

2.3

 

(0.5)

 

 

1.8

Issuance of common stock related to vesting of share units

 

 

 

 

 

610

 

0.0

 

 

 

0.0

Share-based continuing employment costs related to business combinations

 

1.8

 

0.3

 

 

2.1

Stock option compensation expense

3.0

 

 

3.0

Equity-classified share units expense

 

 

 

 

 

8.8

 

 

8.8

Equity-classified share units dividend equivalents

 

 

 

 

 

0.3

(0.3)

 

 

 

Dividends paid to common stockholders

 

 

 

 

 

 

 

 

(27.7)

 

(27.7)

Balance, June 30, 2022

 

 

$

$

110,791,788

$

235.2

$

73.0

$

1,015.3

$

(79.9)

$

0.4

$

1,244.1

RB Global, Inc.

4

Attributable to stockholders

    

Redeemable

Additional

Accumulated

Non-

Senior A Senior Preferred Shares

non-

Common stock

paid-In

other

controlling

Number of

controlling

Number of

capital

Retained

comprehensive

interest

Total

Six months ended June 30, 2023

   

shares

   

Amount

   

interest

   

shares

    

Amount

    

("APIC")

    

earnings

    

loss

    

("NCI")

    

equity

Balance, December 31, 2022

$

$

110,881,363

$

246.3

$

85.3

$

1,043.2

$

(85.1)

$

0.5

$

1,290.1

Net income

 

 

 

(0.2)

 

 

 

58.8

 

 

 

58.8

Other comprehensive income

 

 

 

 

 

 

 

33.0

 

 

33.0

 

 

 

(0.2)

 

 

 

58.8

 

33.0

 

 

91.8

Stock option exercises

 

 

 

101,074

 

4.9

 

(0.9)

 

 

 

 

4.0

Issuance of common stock related to vesting of share units

 

 

 

410,653

 

15.1

 

(32.3)

 

 

 

 

(17.2)

Issuance of common stock related to business combination

70,339,723

3,713.2

3,713.2

Share-based continuing employment costs related to business combinations

 

 

 

0.6

1.0

 

 

1.6

Replacement of share-based awards in business combination

 

 

 

13.1

 

 

13.1

Stock option compensation expense

4.7

 

 

4.7

Equity-classified share units expense

 

 

17.9

 

 

 

 

17.9

Equity-classified share units dividend equivalents

 

 

0.9

 

(0.9)