RB Global (RBA) 23 Feb 242023 Q4 Earnings call transcript

Good morning. My name is Joanna, and I will be your conference operator today. At this time, I would like to welcome everyone to the Ritchie Bros. Auctioneers Fourth Quarter Conference Call. [Operator Instructions] I will now turn the call over to Mr. of call. and President open Intelligence, Vice conference the Rathod, Investor Market Relations to Sameer Mr. may your you Rathod, begin conference.

Hello, and discuss results. to joining us good morning. Thank our you fourth for today quarter

and Kessler, Chief Jim Financial are today our Chief me Executive Joining Officer; Eric Guerin, Officer. our

transaction uncertainties differ results report will similar statements, which and quarterly are discussion most of are Relations a measures. expressions. cause such IAA, projections certain involved annual this forward-looking release value, and are measures, and to, not Comments statements identified anticipated our of items, can also uncertainties. The on that expectations significantly plan, revenue, gross cost and discuss in such anticipate, fact, as risks and future forward-looking believe, statement business expect, forward-looking to debt available non-GAAP which that as our estimate, limited EDGAR market news include including, morning are call, intend, will regarding recent this following financial earnings, other be the including synergies, by and trends, The forward-looking integration considered words detailed issued opportunity risks non-GAAP of but and and not actual report SEDAR. On from as including website could the we well XX-K, Investor financial Form on and and the

our the the see the on comparable and financial GAAP posted website. X, the release, Form measures, reconciliation directly non-GAAP most our the financial of of presentation For identification measures and Form investor applicable XX-Q news XX-K,

Jim. management time, like cannot non-GAAP reliance components to the quantitative financial reconciliation are place to forward-looking of undue We Jim? to call non-GAAP of measures. At cautioned are measures Investors necessary forward-looking present all over the would this unable as not financial turn I predict on such measures. to

solid contributed quarter combined transaction we and on All make to to Sameer, over-deliver dedication commitments sectors pro customers. to strong our by growth forma a morning growth, year basis. gross fueled our of GTV value you, team's with the to We consistently good everyone. the finished fourth XX% on Thank

on focus to EBITDA teammates growth. Investing efficiencies driving strategy. incremental people remains core the in continued our Our and through organization operational a strong experience resulted our excellence best-in-class adjusted in across

One All-In Great and prestigious was term. long Place with increased Our in Work our solidifying underscores as all progress recently teammates, benefits The a recognized to our recognition highly This our ongoing culture workplace. Team teams the our the attractive RB our engagement Certification. to integrating Global customers in translates productivity and which with stakeholders and

about our sector. commercial and me construction by talking Let transportation start

of remains through We be customers as that aged continue equipment partner The owners to the as we supportive choice our consignment are said, the pandemic. That resting not needs. during disposition on we has ramped environment on up, them were allowing production for to laurels. act OEM our fleets their guide

excellence and We our top to we force, better sales in North providing America. partner within remaining market point are reinforcing winning solidifying sales more recruiting our our capture commitment in customers, talent strategy markets coverage investing to percentage satisfied translates choice. Every certain share by of the and

automotive the to Moving sector.

us. to improvement, that our customers impacts vehicles prior acceleration performance costs our steady deploying process transaction hand improved am car cost, costs rental and team implementing after closing. strategically overdeliver quickly by assets and net pleased with performance auxiliary agreements. optimizing to of and operational and savings level the internal total other our We dramatically and say continued storage returns. I combined up total for towards proud stops significantly our compared levels. efficiently hand have our efficiencies against operational enhanced service processes in to Customer for Picking prioritize why the excellence go we That's

substantial a was compliance, approximately of fourth measure improvement year-over-year. Our internal performance, total our in an pickup quarter, XX% the

have More importantly, of in consistently several high the been for we compliance months. XXs

processes on returns are strategically to technology leveraging customers. for our maximize gross We and streamlining focused volume

again our buyers Interact with merchandising IAA while platform. results in with descriptions for technology vehicles data trim implementation selling unparalleled prime recent measurable quarter, VIN of is J.D. yielded our deployment efforts year-over-year. A Power in of automotive level for industry-leading our and gives an the Our example average This marketplace additional value unlocking our industry-leading prices on sellers. X.X% insights ChromeData climbing our

incredible We real-time on impacting price realization market's of incremental launched auctions, unlock Sales our the This variables further gives our our are feedback recently Decision getting the micro transparency optimize them phenomenal and also structure Center. system value. their into allowing to sellers

our efficiencies organization. continue insurance a to ahead our entire from partners to program with an momentum broader turn. The our efforts creating The our to that continuous aggregated week, we're road of provide committed is will our launch program partners, and performance commitment with our customer expectations excellence all level of next and operational discuss integrate we As across industry-leading excellence we transparency. paved on will operational and improvement, to every the IAA is a exceeding fueling focus SLO to

cost $XX run million rate synergies since cost synergies have in quarter actioned the close million realized and in a the annual in actual the have of We $XX transactions. total of

synergy target confident, We timetable previously the to communicated. the are our plans all on in with achieve place, we cost

overall more costs, to importantly, Our cost not and manage just deliver overall synergies, results. responsibility is

entire our line longer is accommodate exceeding valued service continually additional market manage or or quarterly. By top agreements efficiently margin surplus winning opportunities excellence, strong of partners, discussions growth meeting across level our ways exploring And our we to organization. a progress share. drive operational focused operational We maintain of will our cost will asset land reporting not capacity will expansion which value. In on land ownership be the synergies requirements the our cost across keenly to we allowing us easily. through shareholder are for necessary classes, enable therefore, business on We with no flow-through, and our

financial and to us property customers. investments. In the make will of and opportunistically space acquire to have needs in opportunity the regions As to we purchase makes we service for strategically will these last we acceptable where our proactively certain to CATs quarter, to indicated better sense strong markets, continue continue market

Before passing the introduce mind. we in our to criteria new When seeking I'd like critical to call had him X CFO, Eric, formally.

Firstly, the closely teams. someone sales and enhance who wanted collaborating we by with operational excellence could operational

Secondly, a people-oriented with Team who seamlessly aligned leader our One culture. All-In

immediate allowed deep Lastly, company. someone and of Eric a with his and all to in customer-centric qualities a automotive understanding experience dive ecosystem him the make these within impact. embodies has

pass financial the for me discuss to call and XXXX. fourth Eric? quarter Eric results Let for the our outlook to our

to the RB entire joining to and here at right me for feel I thank team want you, be so call. home. I'm wanted my making to thrilled and at add to everyone Thank Jim. the welcome welcome

GTV increases loss increased Before period price. higher of is loss total prior GTV compared note sold ASPs pro loss environment XX%, asset loss and continue Part the a CCC Recall vehicles refer we lot with a at while of comparison for year a total jump to sectors. are to growth as remain the consider benefiting car and customer costs ratio accident. GTV that salvage was earthmoving the customers as year-over-year the ratio construction salvaged accidents. Used increased assets. year. trend industry unit declines by existing transportation growth increased unit approximately higher due where total price strength selling productive increased elevated, to XX.X%, a to intrinsically comparisons total fourth traditional in by portfolio Bros. by revenue Automotive estimated year-over-year, benefit volumes sector in mix the the in that deemed the asset offset creating lot lot drove decline please continues combined in per automotive into the same that quarter, last volume lot volumes, volumes to rebound and after of the commercial from ratio. In from values the driven percentage price to for The to number a in in in and across per average by a GTV period. Total average compared IAA results lower the prices to to came lower partially all repair the rental average XX%, transportation of a an XX% as the forma the details, from and Ritchie XX%, sold.

to GTV in our on note basis. yellow apples-to-apples an also quarter. the want Additionally, impact I fourth negligible declines we that to year-over-year on observe a the in price corporation continue dispersal had

and Moving average take increased was revenue a approximately revenue to XX.X%. GTV revenue by construction commission average expanding average a by rate. and higher strategic in rate XX%, marketplace to in driven The our take commission assets a rate service revenue. and Service with by service services was increase rate higher mix a service primarily to rate. from our the take rate mix XX in increased driven growth fee due lower points revenue Service of average automotive-related buyer a of growth transportation lower higher The average GTV revenue, partially higher offset accounts. and basis

inventory. data between can of date sold to Inventory from Inventory decline approximately transportation and to prices and our an transportation for rate the year-over-year construction revenue sector. and cost faster inventory the in basis than be and with and increase purchase sale points vehicles anticipated automotive the contracted and declined X%. declining lower quarter commercial sectors. revenue in the our in the attributed automotive to sector, Moving of in year-over-year contributions XX%, construction rate and commercial The the XXX inventory

As expect environment remain transportation the we in our and sector. competitive noted, previously construction to deals commercial at-risk for

adjusted Growth expense higher XX% to adjusted combined end pro was quarter, of adjusted service Bros. for forma X.Xx, the IAA by share fourth quarter. A period. the compared combined offset Adjusted Xx performance approximately ago share IAA XXXX. to X.Xx. debt revenue Turning was per last the remain trailing the full was and of of with and quarter inclusion, EBITDA end and in interest XX preferred and the count, first line Xx months to adjusted XX% on our compared quarter GTV strong shares. At higher impact the increased of the to turn in year net deleveraging to approximately a adjusted by months Series of growth. Adjusted debt of trailing partially EBITDA Adjusted EBITDA focused Ritchie down We approximately to EBITDA XX on net earnings the of net earnings. senior operational the increased our impact EBITDA

our on initial to outlook. We thoughts the provide XXXX. to wanted Moving

We to of X% transaction value growth compared gross transaction between the and X% in year-over-year combined pro expect forma gross XXXX. value XXXX,

our from adjusted growth, XXXX, in program, EBITDA investment in $X.XX growth excellence expect $X.XX reflecting billion to billion continued commitment to initiatives. operational We prudent and

XXXX GAAP and full XX% rate We be adjusted tax our XX%. expect between and year to

for PP&E, assets, to intangible expenditures, to $XXX questions. and million. We to net currently and additions of proceeds expect year call With be Moving open CapEx. $XXX capital which full that, on let's between the disposals include million

First Instructions] comes [Operator from Doumet Michael question from Scotiabank.

Eric. And an about midpoint, quarters. looking basis last to Welcome, of quarter. XXXX like pro GTV with But in XX% At X% start the for I'd that EBITDA X basis like to pro about on forma. you're guidance. Super forma a looks growth, the to close the on compares EBITDA growth it X.X%

customer slowdown. as is well? what So I some and know market the what within legacy guide, trend loss explained But contemplated wondering IAA the perspectives else for the partly of and

you the at in much. it of or I down, goes dynamic the out you are pricing history industrial part we up, from up you it knows And where what of up it look units then the in thank customer units to in who big think of of the Michael, pricing, and so half price are the over right, is and year, drop we going also does. going right happens got where going and Look, as loss. that unit years side today do they first, years back a where and down changing percent see what and look

gave. X the biggest of we reflection guidance those So that are the things

the Got to cost. you. And then maybe just turning

Now like starting is the to operating click it really leverage here. looks

like working also on businesses. some there's still you're Jim. targeting bunch it well, You're between the efficiencies a And X synergies as sounds of

some SG&A into on should of how expand the for and SG&A we drivers more about broadly? maybe think 'XX major So

how that in in different that Think get just looking do looking Rouse, get have each we're SG&A, the at the our at the matter Yes. process have, get a organization, as a provide, look that management activity that how better. efficient, constantly how we businesses Look, think or what constantly do we taking at team, And efficient. we're businesses all philosophy have general, I of do portfolios we no more our it. of about SmartEquip, all services you we're you more and we we

at how as this. lose to efficient, is we're along are we want don't drive we everyone the thing value do But I with for sight getting one doing looking of long-term

look, most keep us want support. we what how both day, to classes we're to We're the So comes of at, business team. and mind drive efficient things always a that the viable it's long in matter no we it invest look as to is, in that year, of going be to we're what the everyone's all what term sense what going of management that quarter, looking combination at when do for make out efficiency the asset the and the

about right Eric I think we capital, look, So drive. I we culture for efficient. companies we just mind what committed management And what we stop of it. just have how to reason we're of the But continue you're place team we're in this think good the they going in do what this diligent get to every all a now, to try want become And and help in brought we we're we philosophy a to it's never dollar It's seeing big be return why want on more very trying to drive; spend have to it. the us of that pace. to

from from comes James. Steve Raymond question next The Hansen

metrics impressive. XXXX the some you've might, parlaying and performance additional the high being described priority, about service customer into like of share you additional that just in through the ultimately on business. in described do feel side? gains like color XXs quite are you but the reception the how part being deck you winning as that's that, I Look, market IAA in know now your if those reflected feel new on you and some How

I we our not sure any make anything, make us. it going believe on or I the that we're confidence know I the base, segment is asset and commitment else's. appreciating commitment, decision over we Yes. on I trust they're automotive, class it's the QBRs, consistently, the of or how each the deliver consistent that winning X do out out do And we do this to we're we're that and can going my commitment. what who construction the industrial the when that day it. the include our build make day they're branch the because customer down in their savings Steve, about day making it can when the I difference for ag transparent with to do in of about And have, I'm seeing feel quarterly at, accountable working when about to just there's is them, biggest hear always business months we're I cost is trust week month-over-month we matter part, hard someone you now I down only realistic day, the on, to SLAs in level when and U-shape making. that value deliver, feel to and can driving partners totally Because build quarter, they day, on deliver that and what we're last like What no right? Because and right? again, for industry side, Because how experience, And customers' the in we as the as a our driving you that get the I'm to talk their automotive is by main on to very focused on to SLA players business, very some a where we we way what need over over look control I that to showing operationally, of that behind that, basis. I at think trust you difference. But viable then thing for going and customers do it where with good week. being our really comes we're And when type of and end add we're we're our we're you space, at competitor, in in the side, this, the when progress create a a you it is you're

decision about someone really happens, don't it I when to it. make But get we're the chance the of So confident decision. else's that's again,

No, in current the units, I specific current follow-up particularly seeing And on that's suggest about of framework time moderating that quarter, that. that's you to expect evident, in current earlier where starting the one in you're auto Is is sector. that's or or your the back story like fair, frame, just the to already in a that half? something anything there maybe comments appreciate growth,

give in to as Yes, in of we this happens. and cycles Sameer? second. a think see look it's we going But I'm history what what Yes. at more again, the Sameer trends I

Yes.

automotive So quarter Steve, with customer reflects discussed in the the last loss. growth what we moderating

So think loss. impact full a run fourth get first about in customer. impact we a quarter quarter. And the probably second customer for rate the quarter, then you'll if get this a the half full you the without had We'll still quarter, the

So what that that's reflects.

Steve, comment make more sure we're was side, to on just clear. industrial the my

I appreciate and Understood, that.

Craig question Kennison next comes at Baird. from The

have auto the where to I issue, side competitive wanted dynamic ask know there on been has an been on the questions construction but I about the share side.

I'm the clearly auto competitor there, share could leader in an competitive threaten just space. has dynamic that that an but the update You're over made if acquisition market on the could wondering you construction share time. your

No, Yes. happy do to so.

I'm customers customers. building days in But spent competitor not X with last are to taking to granted, with confidence. actually our the market, before, our not it constantly side. industrial having So have of where make building we're in Like we're and that for sure relationships the for mentioned in. our and invested us, Orlando granite are actively we you managers markets We're and that of mentioned entering we've are we're in going our we position the on where take the relationships territory we're building conversations. today

And with approaches? on Yes. call philosophy versus today strategy centers a and manager comment, the as is in marketing share just evolved of and I what has and a you'd us your manager how if maybe other territory territory your follow-up go-to-market of role that the wonder importance terms

doing we're Look, time. both at Yes. the same

I think one it's for the on appreciate bit $XXX,XXX, both and work of the the customers But with industrial self-service, inside on that's have dynamic you programs they little trust that they're you're have about have the a an sales going not that equipment change to in to a immediate. we -- think -- relationship, self $XXX,XXX, that we know wanting we be want when tail. But when that our and of where long thing people sure, is especially dealing dynamics behind especially what piece that that completely personal relationship unreserved auction. doing

commitment, that going is want they trust someone So that deliver. that to

evolve So in and that we transform, the see help. we're that capabilities building team marketplace we're going is have sales self-service as we through the inside in-person our we're with sure still an managers making to territory we value realize, and still to having it. going look, relationship But and world

But go over dramatically both the this we from away next will going. not have in-person relationship is term, So years, the in today. X short what it

Gary The next comes question from at Barrington Research. Prestopino

been the a versus in of again. in ask decentralized that Eric, salvage sites Has IAA reacquainted centralized and all you, of to get issue centralized there's at to of implemented Jim, fruit low-hanging particular, glad this lot at point? to with issue from at decentralized moving Jim decision-making. the wanted I and,

Yes.

at we're be what mentioned, So our better ways customers, to efficient more decentralized, So get right? what tough as centralized. looking works because, should always and question what it's a for I

manager have is right? this a to the and January you the Using the and back there's bonus and a of that forth. But program process centralized I the sometimes starting of best manage, off branch, manager of it. is possible. branch both, And But culture things we to decentralized, to be going the what stuff ownership SLA branch feeling to new confident feel support your and mixture always implemented the the low-hanging of And manager the for owns my X, of branch branch what's the then what tell as can bonuses the efficient we've constantly SLAs, so the fruit the mechanism evaluate ownership for we're be the and culture of the that branch. to is really in should how as support shifted I

Okay.

list the you to insurance what is like their IAA talked that people, improve So service see levels? to implement would vehicles, your they companies, some to, to as of the or talk consignors of wish

Yes.

stop tier diverse you a our all and they a what are keep ASPs, bureaus, depreciation a then at insurance things all way the are we as car, going diverse different X, low -- do when of it's looking and drives partners, we're how that your the And have make quickly so is inspection right? have auction different of the you make constantly possible as possible of and them business right then salvaged. and look I'll take as we When way for such our is you quickly such larger a like So we the as at that down them, right? do and charges do how all possession we background say regional of running the So getting when insurance first a how through categorize that we it. what partners sure it's our drive the farm how important. But platform images what's to work how look, advanced the data truly ultimately, call for as we and Then do services we as possible, we if as that. carriers, title stop we're it's they

have So right? we integrations, APIs So have think but software important, on everyone about a and is at forth. return, and the you of we philosophy net ultimately, things, going the different business But how with we're going but returns is they go how things of how you looking they manage and best very about best how stuff all you has then partners, the and then that I get buckets drive to integrate the what key go you when them. under different want X net those net like data constantly partners back for buckets where take we're we how various do we're able and believe get down X of to it a they major ASPs. And with do lot it and return, flexible they're those

from comes question John from next Healy Northcoast Research. The

Jim, I prepared make little if just get for your in others a just auto on what you that bit the wanted what program about side. to it what that about thoughts you? you about will look have? the competitively and transparency remarks mentioned a you Can talk think How something the is, difference that feel it's

see what's And then general that opportunity secondly, share when process in that before a it a to states, pilot? couple of guys we you side do chance to the win, just some kind might business, the would and get to prove how can unfold X typically Do you they these of of come a yourself? months win how thought of if last contributing Are will if of the online? love on get Just see kind you your business.

and at, way performing. and I typically your model because it hitting that said space you the they're you're how your from it. competitors there's collision many and No, is you're inside very B, the where SLAs I insurance Yes. right, that And think be any going ways, -- measure you to through date came the right? of so of So C But, at A, And where a and you as those have peer transparent everything in more John, came had end, collision. you where from you're you of could get, a this very is D world, this, transparent you're carriers. look, that this okay,

in do we're own themselves. of it the space, model partners, it And that players for the analytics they which transparency. to And is capability that different do have with smaller do salvage, this comparison, great. in accounts, their just X don't and at really other don't some With get being you level

indication giving them both an on happening. dependent us they're of So of what's

world, share with in and confident I'm have event So the partners, performing is actually we're performing our quarter with is, team. in performance plan where to with my My them. getting top the with week, industry we're so our next we categories every how

So We're we're what how we're to they tell to saying, them our out going and anymore are guess metrics doing. doing. to competitors our don't have what hand them

space. our drive operational consistently we're decide that them want excellence do in going confident to drive just monthly or I want we show we on that competitors to we're have my to that's Now reviews to share the of going have. And for them. of an specifically that's happy share can will I'm level and and at. share performing. And we're going that then do. transparency data what they we're them, it whatever and to data with with But confidence numbers industry QBRs are the side we're so I'm our And what how these to where our after But to them they commitment quarterly our doing, with

thoughts of you any spending indications you calls, I sort right mentioned that's in hold No, for And in in is any I'm performing for down the now. you're earlier helpful. what industry there? Great. of guys? because time hopping of looking terms between kind year this of then don't early ground how Orlando be if Orlando mentioned And on just might the by but you know it

did speak number just about selling. where we press had a this. It from as our historical And was we're a talked the I we more biggest I'll lots think release to through going that turnout that customers. we're of we've Yes. customer event the

just seeing be in have going I to the Orlando, and we've with relationship the Orlando to with which trust and year. with So what it everyone's built out think our customers, our the -- get And down turned customers. turnout, think they're what are this got, here I how was very happy back we to but I great that that gets happy

question The comes next Maria from from Larry De William Blair.

years? Just that think the Is that point, give rate there? next run color how from CapEx, what's is grow of Is starting us the million the you few -- I first that $XXX about over or -- then plus. Can good just and to question that? a some kind think, the on

Eric. It's Yes.

$XXX to to just in wouldn't XXXX. PP&E On this range But our to we'll at time. invest $XXX your the CapEx, long-term continue build Obviously, point. into providing guidance for model this is XXXX as I'm I million that million specifically required. platforms, at digital our

me presentation any are can finer of Okay. that know besides IAA SLAs few a but other big a lead maybe And and assuming 'XX some here market are that's change, year? there. execution -- levers the the the that, and obviously, to any you've follow this the And know I profits the way the way share that there not needle shifts? price or possibility, move preview tenders think could this bulk but share is on in correct discussed mean excluding this more And and fees I buyer and one to I the likely comments, in kind already, prior on gains. point, the your we're say, times then on you then wrong, I'm share a to of GTV, U-shape in if loss? noted to put Is to it up the I flattish the safe

how side. we're we laser we make results. comes Look, what's we we're always choose course, there's fun they for type move, again, then come logically in, on X with a all that contracts decides our But the some from, move, drive it's to know, on up of look, out salvage can our when decision environment do the who that of people that, don't is we're conversation that having players in when sense viable share just stuff. control, focused and in hope that And rational Of to because get right? market those all the of tough final type industry know of the makes we the

sensitivity some share up Okay. can Well, that year it pick I appreciate flat But we share? and going around we're to actually a excluding IAA that we're for losses? safe assuming think to say Or it. is the

lost. built specifics on the we've by of say Okay. I Yes. We're itself. not going the to would the on what guidance, automotive carrier that give in But impact we

that built is QX, off in. will earlier, roll in described Sameer As QX through that

comes The National question from Financial. Sytchev Maxim next from Bank

it's equipment small to kind I like services, we've to kind half I just legacy back Are or probability was of perspective? repairs see that's past already that field from a on normalize, a in on in has this more additional mean pricing of as circle what things whether there's possible dynamic it's starting of painting, the the sort attaching to I of a if wanted started seen and side. think we mean, your of high like the that. you back

little start I price is -- more in environment the an of think our a to we're Our We environment. saw of units as a environments. Transportation as change, through right? economic becomes different. kind them, of all this in that changes, look to And services different have think and opportunity. different financial I your We it's type look, definitely, in profile correct. Yes. But mind, looks services half going bit think it our I year. back And a point of as Orlando different

at part look refurbishment and it's certain paint bit small act half. more So we business. no them but complete a what think again, little differently environments, of in how services look in a could and we But environment, matter of do some we our differently drive back constantly the do

part business, the of and stand now? dynamics talking Yes, think improvements? us bit tools just sure. a IAA's sort if by -- where as is mean, in in paint for can journey, X little your of you you're those to the about Do adopting you of, then of we I now path driven mind sort capability, that right legacy right we processes trying you maybe the it have high-grade And as technology terms the about

due of team process we right? branch on Who's it's understanding lot ASPs going And how just over made at needed they a think I they I'm with, it? thing think, the one Yes. IAA investment impressed flood drive think though an industrial bringing even year, have to salvage different technologies, when year. impressed as in efficient But side. And accountable we team, I Vehicle some of The the is who's is it? do everything, didn't right? saw the a operational what, complete IAA this unbelievable, then get, this of the we Score season ideas flexible, pickup of Whose we the built, with completely creating I've of been impressed an diligence, the level, that their had amazing with. And a small some for responsibility to is we've been do then CATs the completely construction and the clarity. and that in and AI this what on lot does I and a they has happens, built, Look, side a of process, and business what the cars

do financial And bonuses for making -- the we to the the where waiting there the ELT to was we are central who's "Am we lot I thing that made this, we this said, tied responsible sure of drive or to goes people's analytics do we it? decentralize, down results okay, very branch no and mentioned, responsible for standpoint, I time like took are Where we a who's So spend problems? same we of all then a our clear it." -- So for sure have that drive do and a to what. And from the to want. thing were tied from

to our a over-deliver. And being company things were the the everything at commitment And lot the commitment, problems, our I the and at we bring there's So right? I as it. our has But it salvage to our you SLAs, visibility on it. technology else, our And able the problems, as on think mentioned, for like our customers, side, we're do costs against look level, going driven. technology that we then going was making to those that helped this and results manage they Yes, what ASPs really deliver train up more the quarter have drive branch I SLAs, to being think then sure is where help. is we're of and we clarity that

a of think combination both. it's So I

terms in And do the Right. of have of you Or of see... -- legacy level as kind at have branch what you kind some turnover you seen compensation a of delinked structure? any

it. it and to not one appreciate I'm in I it. get And maybe to drive a and get know the it's know know right? get maybe just missing Where to to, think because -- go bonus, go before they was it, where I No. get they know, okay, what left tool in my The I can't and thing didn't past, they and don't. what how they now after they're like this control they right? it is, okay, funny I accountable it's

in they're now very of appreciative it's their Now through completely business the the it. going we're very of appreciative and they're of what it. clarity driving, as control think think I I they're And of

I'm to But very of IAA on meet comes excited. X I'm think all So and X be changes what going excited be I next we're of is spending, I Global over we've and sure this them, side they're made far. part to that met And culture so think of different the the to getting of the the I've be this is team together really branch chance excited to through. that branch months. actually regions, the making the team the is some manager deliver but to is in managers -- every RB appreciative my we're from going salvage trying

one, Okay. if one Maybe just may. I last

of car, would terms any In side whole great. be update on that

we us our all our the just it's talking just asset for say part whole believe growing all And share and this clarity, teams share. commissions we of share. you about. of how and created matter salvage business. of one which the thing what after part another to big the classes, to strategy, So want And like same we go opportunity after I'll We no go sales across car branch growing level. do a and go And at for is after, right? grow So probably did of we're bonus programs

of but get side last getting it's go and all and the whole the this think we and it too had it and this we're the that that building business, a like the go that So in XXXX But after bit takes X growth everything, to started, like with in confidence, I the of proud very after car to business it. asset we've team share, kickoff over just their invest little is the so they're and is of going we're quarters. business. But do to relationships time we excited, with grow look, believe in classes really

from RBC [Operator Instructions] Markets. Next question Capital Khan comes from Sabahat

years the give leverage trending Can question it's looks a sale capital on side a Presumably think maybe well. on, cash like a X just disposition X on maybe flow maybe maybe you CapEx Just X of little capital on moderate. side. the not to I an bit helps you Leverage yellow and allocation the said just maybe allocation. could potentially in then maybe out earlier years bit color CapEx, and maybe question, out?

Just return capital, just that what Maybe as are through on few we years think walk CapEx the other us things other about of focused a initiatives? looks out. what moderate? you'd like be Would

Yes.

has Eric to only been just be fair, think here I for X.X months.

fair to Eric and but it all So team Eric work in your that and in through I'll detail the think as Eric But second, don't it give a comments. to I pass pass it's few yet to I'll questions. a I it's think don't fair. I much detail for management

by say would commitment the I is to is of What -- net debt Yes. we're our to focused. XXXX QX the EBITDA Xx where adjusted

So well platform we'll to while continue digital level leverage invest in that to get to continuing our PP&E. as as

feel we really are So good against I commitment. about our where

Jim's still looking you allocation. prepared QX our X.Xx hit QX As my by noted target debt on 'XX. To and of remarks, to point, capital in net trajectory at at we're through a

at opportunities that the up things brought the the look business. we I think structure of obviously optimal capital for are we some as you get to will

spend commitment that of get the And that of any a having proper our on to down sure it to we in the that here, this a it. of one to instilled conversation for Eric management make to think gets and our CFO, be really team Yes. sure things our aligned return reiterate, Eric as any to as make I a on return to dollar team, for the biggest was spend. time I all we just organization spending that as get general, want with we're departments And each leadership it. through to we just lot in going commitment in we're a of the us of working across want capital commitment come And taking of

I maybe of And forward. But helps. to then of in look Jim, along, you spot, the to terms guess, back if you maybe maybe That maybe going just want understanding get put just synergy details you into side, ahead don't in the the kind as XXXX are an what you're period, are update that of going here? kind be the remaining through about kind to think on the sources of you And the the kind of bigger completely what integration with. synergies bigger just buckets of done

got one, funny the Look, transition, the here. when becoming the all right? combined can go CFO fruit that imagine, company, first is departments. through thing like happens. as low-hanging easy Unfortunately, And they're just procurement you Yes. we So companies, Eric we a every had you

as many of process we what of possible. a constantly the right? right, the every you XX, this as at. as in just sure people never a going and and the you just And management look think team of a going top at stop, new bottom efficiently operating always be you to and for have we're and every future. But that laser-focused on have right organization place. as like people, person of in always so looking about team, makes an area most to going he'll making It's So them. sales sense There's And is organization middle coming into organization, kind having the your we're XX, think people to the be his about look, are you're the

evolve going this. through to going always we're that's So as

they all different decisions. Are we're constantly seeing, going all that to make on have. looking living we what the that areas, expected? we're And portfolio to we at the want? we're return they up So the Are companies based

great with opportunity a the the efficiently place we're all thing term We're like cost X operates term, We're because our sound the I business get this hate not. had short look in and this. running want together we how don't think and organizations same long synergies of efficiently to because that putting the the plans do time. focused I on at the run just that to business at I just we coming we're in the the focused on is our -- using to companies

both. all And So why work. organization point, done I we've this doing the that's at we're think

to other the We to to as we're have possible push But efficient to make possible. through we company, to some through as that as commitment, sure never we're executing up each of, done grow want going which And plans going place our we in we're get to we against. stop want live are to as we and we as want go stay the flow because this efficient bottom to we line. to expand to margins,

strategy. questions you're our in a about strategy, There's you deck Is a see kind today. thinking just also how more If any progress? of ownership want you we lot one slide and like. of evolving will is this of eventually land could that around sort an I just that what quick on you'll ourselves got a view in comment on to one. look how of on, squeeze the Great. definitive your what directional look do view have like? Just Or look, things land sort Obviously, this

we think don't have decision think I in say we Yes. care What or it's general, land. make. profile other, lease what think to be If don't don't this versus to the just I share -- we right? financial I that's our gain partners in owning I'll able to way one a business, have

this our do have, cash? think right? use And best we with what's the we do of that cash the decision, financial a truly what is I

cash? So use own leaseback think get do for lease economic hit but interest own we SLA, is, the I in component the we a future. Land's to it financial don't and do business, capital environment, sale decisions we to land today, the or rates best do you what's you or think this our us land? of the is, I really are mean of high, if on then and, might make dependent a

organization through financial organization. as we that the lease And is right? making us best really This business. with how thing what invest important in I for good that, hitting we decision and big own financial partners the into of is our the decision. with right That's an financial with we clear if partners a really can decision have. our team support the or very dictated being conversations want part And back Eric to isn't it's his we're feel we're SLAs, our we're the that a But so what's most the

turn no at over Jim Kessler are the comments. further There time. back this closing I to for will call questions

class. thank time with asset Global. classes. everyone I What our for not Again, And we're classes team to Global. I and much RB is, This growing multiple asset one the is about am just impressed again, we're asset with, taking managing our just so RB to and this is story each wanted the listening of

part just I taking So for as you so the talk everyone soon. thanking end RB Global. we'll much. you to wanted time, team all And Thank of your their to work for thank hard being and

disconnect today. you Ladies conference and please We and ask for that we you gentlemen, this your call for lines. your concludes participating, thank