RB Global, Inc.

Thank you for standing by. My name is Janine and I will be your conference operator for today. At this time, I would like to welcome everyone to the RB Global Third Quarter Earnings Call. All lines have been placed on mute to prevent any background noise. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star followed by the number one on your touchdown phone. To withdraw your question, please press star followed by the number one again. I would now like to turn the conference over to Sameer Rathod, Vice President of Investor Relations and Markets Intelligence. Please go ahead.

Hello and good morning. Thank you for joining us today to discuss our third quarter results. Jim Kessler, our Chief Executive Officer, and Eric Guerin, our Chief Financial Officer, are with me on the call. The following discussion will include forward-looking statements which can be identified by such words as expect, believe, estimate, anticipate, plan, intend, opportunity, and similar expressions. Comments that are not a statement of fact, including but not limited to projections of future earnings, revenue, gross transaction value, debt, potential partnerships, and other items, and business and market trends, are considered forward-looking and involve risk and uncertainties. The risk and uncertainties that could cause actual results to differ significantly from such forward-looking statements are detailed in our news release issued this morning, as well as our most recent quarterly report and annual report on Form 10-K, which are available on the Investor Relations website and EDGAR and CEDAR. On this call, we will also discuss certain non-GAAP financial measures, including forward-looking non-GAAP financial measures for the identification non-GAAP financial measures, the most directly comparable GAAP financial measures, and the applicable reconciliation of the two, see our news release, Form 10-K, Form 10-Q, posted on our website. We are unable to present quantitative reconciliation of forward-looking non-GAAP financial measures as management cannot predict all necessary components. Investors are cautioned not to place undue reliance on forward-looking non-GAAP financial measures. At this time, I'd like to turn the call over to Jim Kessler. Tim?

Thanks, Samir, and good morning to everyone joining the call. I want to begin by expressing my gratitude to our exceptional team for consistently over-delivering on our commitments and delivering outstanding results to our partners and customers. RB Global's third quarter highlights our commitment to disciplined execution. with adjusted EBITDA decline in less than 1% in the face of a 7% decline in gross transactional value. As previously discussed, GTV was driven by challenging comps in our commercial construction and transportation sector and the impacts of previously announced customer loss in our automotive sector. Let's first discuss the commercial construction and transportation sector. As mentioned in prior quarters, Partners and customers continue to evaluate business conditions in the face of macro uncertainty and have adopted a wait-and-see approach to their equipment disposition needs. Historically, these wait-and-see moments are brief. However, they do cause headwinds in our marketplace for the supply of higher ASP assets. The current environment combined with the elevated volumes and prices we experienced last year due to the lingering impacts from COVID has created difficult year-on-year comparisons that mask the underlying progress of our growth initiatives. We believe the best view of the business trajectory is to compare to 2022 or a two-year stack, with construction and transportation GPD increase in approximately 10% in this timeframe. Typically, the wait and see periods are short in nature, given that the market either accepts the slowdown and partners execute a deep leading strategy or partners gain confidence that there will be a reacceleration and start purchasing new equipment, which stimulates the trading cycle and drives decisions on aged equipment. In either scenario, we are the ideal partner to help our customers navigate their fleet management needs. We continue to focus on driving sustainable growth and have expanded our North American sales organization by approximately 10% year-over-year on a net basis. As productivity continues to ramp up these investments, we believe we'll be in a solid position to capitalize when the broader macro environment resolves lower or higher. We understand our partners' challenges and are dedicated to supporting them through these complex times. Now let's move to the automotive sector. Our teammates' year-round dedication to CAT preparedness ensured a rapid and seamless response to the recent hurricanes. Our thoughts are with those affected by these devastating storms, and as a proud member of these communities, RB Global remains dedicated to helping where we live and work. We supported local charities in the most impacted areas, providing relief to those most affected. Additionally, Ritchie Brothers played a critical role in aiding Duke Energy's power restoration efforts in Florida by providing space for over 4,000 line workers and their equipment at our Orlando yard. The strategic location allowed for quick mobilization to restore power to Central Florida once the hurricanes passed. We are grateful for the heroic efforts of everyone involved in helping bring these communities back. I was incredibly proud to witness our team's dedication firsthand during my recent visit to Florida. Through our Trust and Transparency program, we have collaborated closely with our partners, working side by side and communicating in real time during these CAT events. I have personally received several emails from our partners, and they were very pleased with our agility and excellence in execution. IAA has several strategic advantages in responding to cat events, ensuring we can over-deliver our commitments. One advantage lies in our one-team, all-in culture that enables a flexible and adaptable response from our teammates. For these hurricanes, approximately 15% of our response team comprise Ritchie Brothers team members, supporting recovery and vehicle inspection efforts. Additionally, we have the strategic option to utilize our Ritchie Brothers Orlando yard as additional capacity. However, thanks to our ample existing cat capacity in the region, we confidently managed operations without needing to exercise this option. Our carrier partners are also harnessing the power of our IAA inspection services to accelerate total loss decision making. At the core of this service is our exclusive IAA vehicle score, a cutting-edge machine vision AI that analyzes vehicle images to quantify damage, a capability unmatched in a salvage industry. Complementing this is IAA Vehicle Value, an AI-driven tool that enables vehicle value estimates, all hydrated by our large and growing data set. Our technology further assesses flood damage vehicles capturing critical details like waterline levels and matte wetness. Our mission is to streamline the virtual adjustment process, making it faster, more straightforward, and more accurate. Thanks to our investment in technology and innovation, our partners have significantly reduced upstream assignment cycle times by over a week during Hurricane Helene. We continue to drive premium price performance for our partners by continuously improving our process and technology. In the third quarter, we continue to make progress in attracting new international buyers to our marketplace, achieving a record high percentage of vehicles sold to international buyers in the automotive sector. Our efforts resulted in average selling prices of salvaged U.S. insurance vehicles increasing by 1% year over year. which continues to be an industry-leading outcome. Our exceptional performance and commitment to trust and transparency is resonating with our partners. We believe we are gaining salvaged market share here in the fourth quarter. A key element of our international automotive salvage growth strategy is to enter new markets with partners that provide immediate scale. We're excited to announce that we have been selected by some core group a leading insurance provider in the Australian market as their sole salvage provider. We expect to execute a multi-year contract and start supporting our partner in the late first quarter or early second quarter of 2025. After we finalize contract terms and Suncorp Group obtains final approval of those terms from its board, we anticipated that this partnership could provide up to 65,000 units annually once we are fully operational we plan to accommodate this volume by strategically blending new greenfield locations and utilizing existing richie brothers locations and third-party yards we were selected for this partnership for three key reasons first the richie brothers strong existing and expanding presence in australia along with our strong brand reputation served as the cornerstone in earning our partners' confidence and our ability to over-deliver on our commitments. Second, IAA is widely recognized as a premier global brand in salvage solutions. And third, IAA's cutting-edge, industry-leading digital technology for processing vehicles, combined with our unmatched suite of auxiliary services, set us apart. I will now pass the call to Eric to review our financial performance and outlook.