Ritchie Bros. Auctioneers Incorporated (NYSE:RBA) Q3 2019 Earnings Conference Call - Final Transcript

Nov 08, 2019 • 11:00 am ET

Previous

Ritchie Bros. Auctioneers Incorporated (NYSE:RBA) Q3 2019 Earnings Conference Call - Final Transcript

Share
Close

Loading Event

Loading Transcript

Q & A
Analyst
Ben Cherniavsky

As the lots get smaller you start imposing fees that aren't imposed on larger lots. And that will drive some of that revenue growth?

Executive
Sharon R. Driscoll

I would put it a bit differently Ben. I think it's just because on small lots they don't hit the cap. So as a result the percentage of the GTV ends up higher on a rate basis even though the dollars may actually be small on small lots is that they're not -- they just haven't hit the cap level.

Analyst
Ben Cherniavsky

Right. Okay. And then you did make one reference to the evergreen targets but I realize you're in transition to some new leadership. And I don't know maybe those will be revisited. But -- and then I think I've asked this in past quarters ROIC improved but you're still roughly half of what your target is in two years? Do you still think that's achievable 15% in 2021?

Executive
Sharon R. Driscoll

So we do look at that. We've done our planning out. All our models indicate that evergreen target is still very much achievable through a combination of continued reduction in debt and earnings growth.

Analyst
Ben Cherniavsky

Okay, thanks very much as my question.

Operator
Operator

And that was our final question. I will now return the call to Mr. Mawani for final comments.

Executive
Zaheed Mawani

Thank you Chris and thank you to everyone for joining us on our third quarter call. And we look forward to speaking with you again on our fourth quarter call in New Year. Have a great day everyone. Bye-bye. That concludes our call.

Operator
Operator

[Operator Closing Remarks]