Ritchie Bros. Auctioneers Incorporated

Ritchie Bros. Auctioneers Incorporated

March 26, 2007 07:00 ET

First-Time Bidders Kick and Click During Busy Week at Ritchie Bros. Auctioneers

California's Reliable Trucking sold on full-service Ritchie Bros. auctions for fleet management

SACRAMENTO, CALIFORNIA--(CCNMatthews - March 26, 2007) - Ritchie Bros. Auctioneers (TSX:RBA)(NYSE:RBA), the world's largest auctioneer of industrial equipment, announces that it sold more than US$70 million worth of trucks and equipment during eight industrial and agricultural unreserved auctions held last week. The largest was a two-day auction in Sacramento, California, which generated gross auction sales of more than US$20 million. The Company continues to attract new buyers and sellers to its sales, which was particularly evident at its auction sale in California on March 19 and 20, 2007.

"We had more than 2,100 registered bidders for our two-day unreserved auction, and for a good number of them, it was their first time attending a Ritchie Bros. auction," says Ritchie Bros. Regional Manager Mike Johnston. "It has been very exciting for us to grow our business over the last many years and still show hundreds of new customers at each sale what we can do for them."

Mr. Johnston added that more than thirty per cent of the registered bidders were from outside California: "They came to our auction from all over, looking to buy trucks and equipment from good homes. We had a number of well-known companies selling their trucks and equipment in this sale, including some that were selling with Ritchie Bros. for the first time."

One such company was Concord, California-based Reliable Trucking. For years, Reliable Trucking has been selling their trucks when the warranty threshold drew near, but when the trucks still had good value. They have sold their trucks by many methods, including trade-ins and other auction companies. By trading in a truck while purchasing a new one, they were able to defer income taxes payable through a 1031 Like-Kind Exchange...not realizing they could have done the same thing with Ritchie Bros. because of their strategic relationship with Accruit, LLC, a 1031 Like-Kind Exchange service provider.

"We were very pleased with the auction last week," said Reliable Trucking Vice President, Ron Askham. "Ritchie Bros. has a draw that no other auction company has. The people who came to the auction were there to buy and Ritchie Bros. exposed our trucks to a global market with brochures, advertising and their internet site. We feel we got a higher return than we would have anywhere else, and we were also able to make use of Accruit's 1031 Like-Kind Exchange program, which is of such a great benefit. We have trucks on order, so we are able to defer taxes using this program. It's just a great service that more people in the trucking industry need to find out about. I'd sell with Ritchie Bros. again."

The Sacramento auction attracted more than 2,100 registered bidders from 23 countries, as well as from 39 U.S. states and 10 Canadian provinces and territories.

Over 600 of these bidders registered to use the Company's rbauctionBid-Live real-time bidding service, which allows people to participate in the auction live and in real-time over the internet. Internet participants purchased more than US$3 million worth of trucks and equipment at the Sacramento auction.

"As always, the internet is helpful for our customers around the world. But even more people came to our auction site in person to participate," said Mr. Johnston. "Bidders tell us they still like to come in person to inspect the trucks and equipment and 'kick the tires' themselves. Over 80% of sales still went to people who were here on site at our auction."

With the end of last week's auction, the local team is now gearing up for a Reno, Nevada unreserved auction on June 1st and their next Sacramento, California unreserved auction on June 5 and 6. Currently on the upcoming Ritchie Bros. auction calendar, there are over 33,000 truck and equipment items featured in 36 unreserved industrial auctions and 120 unreserved agricultural auctions. Details on all upcoming Ritchie Bros. auctions, including the Company's April grand opening auctions at their new Denver, CO and Columbus, OH permanent auction sites, are available on www.rbauction.com.

The Company also announces that it has acquired approximately 140 acres of land near Kansas City, MO, on which it intends to construct a new permanent auction site to replace the regional auction unit in that region. Although the Company expects to have regular auctions at the new location starting in 2007, they intend to commence construction of the auction buildings in 2007 with a view to a grand opening in 2008.

About Ritchie Bros.

Ritchie Bros. is the world's largest auctioneer of industrial equipment, operating through over 110 locations in more than 25 countries around the world. The Company sells, through unreserved public auctions, a broad range of used and unused industrial equipment including equipment and other assets utilized in the construction, transportation, material handling, mining, forestry, petroleum, marine, real estate, and agricultural industries. The Company maintains a website at www.rbauction.com.

Investors and potential investors should note that this information may not be indicative of the overall financial performance of the Company for this or any period.

Contact Information

  • Ritchie Bros. Auctioneers
    Kim Schulz
    Corporate Communications Manager
    1-800-663-8457 or (604) 273-7564
    Email: media@rbauction.com
    Ritchie Bros. Auctioneers
    Mike Johnston
    Regional Manager
    Sacramento Auction Site Tel: (530) 724-3900
    Website: www.rbauction.com