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Sep 30, 2023
RB Global Q3 2023 Earnings Report
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.
Key Takeaways
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.
Revenue by Segment
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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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