RB Global, Inc.

Good morning. My name is Pam, and I will be your operator today. At this time, I would like to welcome everyone to Ritchie Brothers Auctioneer's second quarter conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, then the number one on your telephone keypad. If you would like to withdraw your question, please press star, followed by two. Thank you. I would now like to turn the conference call over to Mr. Samir Rathod, Vice President of Investor Relations and Market Intelligence, to open up the conference call. Mr. Rathod, you may begin.

Hello and good morning, and thank you for joining us on today's call to discuss our second quarter 2022 results. Joining me today are Anne Fandozzi, our Chief Executive Officer, and Eric Jacobs, our new Chief Financial Officer. The following discussion will include forward-looking statements. Comments that are not a statement of fact, including projections of future performance, are considered forward-looking and involve risks and uncertainties. The risks and uncertainties that could cause our actual and operating results to differ significantly from our forward-looking statements are detailed in our SEC and Canadian securities filing, available at our investor relations website at investor.richardrose.com, as well as at Gurren Seder. For the identification of discussed non-GAAP financial measures, the most directly comparable GAAP financial measures, and a reconciliation between the two, see our presentation slides, earnings release, and Form 10-K, all available on our website. I would like to now introduce Anne Fanduzzi.

Thank you, Samir, and good morning to everyone joining our call today. I am delighted to introduce our new CFO, Eric Jacobs, who has hit the ground running in his role. I'll introduce Eric more formally when I turn the call over to him to discuss our financial results. So let's get started. We continue to execute and drive impressive results in the second quarter with 10% GTV growth, 13% service revenue growth, 11% adjusted EBITDA growth, and 10% adjusted EPS growth. The team is energized as we continue to build momentum on the top line and we believe our growth initiatives are working to help us drive these results. As a strong signal of our continued confidence, we are increasing our quarterly dividend approximately 8% from $0.25 to $0.27 per quarter. Our customers remain our true north, and we continue to focus our efforts on improving their experience by working on things that we control in this unprecedented macro environment. We are demonstrating that we can grow GTV and revenue in a tight supply environment, and regardless of whether we end up in a recession or not, our strategic efforts should position us to capitalize on that in a meaningful way. While we are still in early days in building our marketplace technology, we launched our first pilot to allow buyers to purchase an inspection on an asset. In the next phase of our thin wedge technology evolution approach, we will enable the purchase of an inventory asset through the Buy It Now functionality. The plan is to have a series of thin wedges completed between now and the end of the year, scaling functionality of the marketplace with each wedge. We also continue to learn from our investments in local yards and new sales coverage model. Both initiatives are working well, and we will continue to scale them through the remainder of 2022 and into 2023. After our success in Texas, we have plans to roll out the new coverage model in upwards of 10 markets around the globe, starting with California and North Carolina in the US. Like many other companies, however, we continue to face challenges in finding and onboarding new talent, which we are working through. Better sales coverage, local yards, and our marketplace technology are designed to reduce the friction for our customers and allow the flywheel to spin faster. All of this is to make it easier to do business with us and Ritchie Brothers to create shareholder value for you, regardless of what is happening in the macro environment. As most of you know, when times are good, Ritchie Brothers tends to do well as there is a lot of activity for our customers and equipment is naturally churning. Likewise, when times are tough, we also tend to benefit from increased supply, albeit at lower prices. COVID, however, has brought us an unprecedented environment because despite the robust end markets over the past several quarters, the supply chain has not been able to keep up. Customers have not been able to buy new equipment to replace their aging equipment, which has resulted in a tough equipment supply environment for us. Since we are seeing the pricing of used equipment come off their all-time highs set in February, we are hopeful that supply and demand may start to come back into balance. We will talk more about this later. What we expect for sure is that our customers will need us more than ever if we experience a downturn. When times are tough, people need liquidity, and they need it quickly. We expect Ritchie Brothers to be at or near the top of their list. We have an omni-channel platform that will cater to all different types of disposition needs our customers will have. Ultimately, this should allow us to highlight the historic counter-cyclicality of our business. Moving to our inventory management system, or IMS. We had another strong quarter with 50% sequential growth compared to the first quarter. We define an activation on IMS as an organization that has signed an annual contract to allow equipment to be workflowed digitally. What is critical here is that the annual contract dramatically reduces friction for our customers, as it eliminates the need to have contracts for each consignment throughout the year. The KPI we continue to focus on is the number of organizations. Think of organizations as the number of pipes being connected to our ecosystem. Right now, without the digital marketplace fully running, there is not a lot of water flowing through those pipes. We are fine with that. As the marketplace technology starts coming together through our thin wedge approach, we can quickly turn the tap on and ingest inventory at scale. This is why laying the pipes today with annual contracts is so important. Before I formally introduce our new Chief Financial Officer, Eric Jacobs, let me take a moment to thank our outgoing CFO, Sharon Driscoll. Over the past seven years, Sharon has been instrumental in the company's success and has been an excellent steward of capital. She provided Ritchie Brothers the financial flexibility to navigate not only large acquisitions, such as Iron Planet, but also the craziness of COVID. Although she is no longer in the CFO role, Sharon remains an executive vice president and a personal advisor to me. On behalf of the entire team here at Ritchie Brothers, the board of directors, and our shareholders. I want to thank Sharon for her contribution to Ritchie Brothers. Now, let me embarrass Eric for a minute. When Sharon came to me and said we should start planning for her retirement, she gave us the luxury of time, two years to ensure a smooth transition to find and recruit the perfect CFO for Ritchie Brothers. I had a purpose-built spec. I wanted a highly experienced public company CFO who had digital marketplace experience, someone who has helped scale businesses while transforming them from analog to digital, someone who wants to win, basically someone who has been there and done that. Oh, and jerks need not apply. When the recruiter called and said the search was over and I connected with Eric, I knew very quickly that he would be a phenomenal addition to our team. He will certainly accelerate our strategic vision to become the trusted global marketplace for insights, services, and transaction solutions for commercial assets. Let me hand it over to Eric, who will take a few minutes to introduce himself and then talk about our second quarter results. Eric, over to you.