Good morning. My name is Melissa, and I will be your conference operator today. At this time, I would like to welcome everyone to the Ritchie Bros. Auctioneers Fourth Quarter and 2016 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Thank you. Ms. Jamie Kokoska, Director of Investor Relations, you may begin your conference.

Thank you, Melissa. Good morning, everyone, and thanks for joining us on our fiscal fourth quarter and 2016 full year results conference call. We are hosting our call today from Orlando, so we do apologize in advance if there is any background noise. Discussing Ritchie Bros. performance today are Ravi Saligram, Chief Executive Officer; and Sharon Driscoll, Chief Financial Officer. Joining them for the Q&A session following the formal remarks will be Jim Barr, Group President; Randy Wall, President, Canada; Rob Whitsit Senior Advisor to the CEO and Acting Chief Sales Officer in the U.S.; as well as Doug Olive, SVP of Valuations and Appraisals. The following discussion will include forward-looking statements as defined by SEC and Canadian rules and regulations. Comments that are not a statement of fact, including projections of future earnings, revenue, gross auction proceeds, and other items are considered forward-looking and involve risks and uncertainties. The risks and uncertainties that could cause our actual financial and operating results to differ significantly from our forward-looking statements are detailed in our SEC and Canadian securities filings, available on the SEC and SEDAR websites, as well as our Investor Relations website at investor.ritchiebros.com. Our definition of gross auction proceeds may differ from those used by other participants in our industry. It is not a measure of financial performance, liquidity or revenue, and is not presented in our statement of operations. Our fourth quarter and 2016 full year results were made available earlier this morning before market open. We encourage you to review our earnings release and Form 10-K annual report, which includes our MD&A and financial statements which are available on our website as well as EDGAR and SEDAR. On this call, we will discuss certain non-GAAP financial measures. For the identification of non-GAAP financial measures to the most directly comparable GAAP financial measures and a reconciliation between the two, please see our earnings release and Form 10-K. Presentation slides accompany our commentary today. These slides can be viewed through the live or recorded webcast or downloaded from our website. All figures discussed on today's call are in U.S. dollars unless otherwise indicated. And while we may use million or billion dollar figures for brevity in today's discussion, all percent changes have been calculated using full and rounded figures. And now I'll turn the call over to Ravi Saligram, Chief Executive Officer.

Thank you, Jamie, and a very good morning to everybody. Thank you to everyone for joining us on our earnings call. I'm going to focus my remarks on our annual 2016 results today, and let Sharon walk you through the fourth quarter specifically. I'll then provide an update on our operations, outlook for 2017, and how the IronPlanet acquisition is progressing. As we disclosed in January with our monthly auction metrics, gross auction proceeds for 2016 was $4.3 billion, a new record for Ritchie Bros. Reported growth for GAAP was 2%. While this was lower growth than we had targeted, it was still a meaningful achievement for our team, given the lower equipment pricing trends we saw in 2016 relative to 2015. Revenue for the year grew 10% to $566 million, another record for the company. I'm quite pleased to say that the health of our core business lines contributed meaningfully to revenue growth this year. In fact, revenue generated from our preexisting business lines, namely RBA, E1, and RBFS or those that were not acquired or started within the past five quarters, grew 5% in revenue versus 2015. Of all our preexisting business lines, Ritchie Bros. Financial Services saw the most significant growth with a 30% increase in revenue compared to what it generated in the year earlier. New business lines, channels, and services, including Mascus, Xcira, and Ritchie Bros. Private Treaty and tuck-in acquisitions contributed to just under half of the revenue growth or increase in 2016. So, it's evident, our diversification strategy is working and adding to revenue growth. While foreign exchange did have an impact on our performance early in 2016, for the full year, the impact was relatively insignificant. Removing the impact of foreign exchange fluctuations from our reported growth, both GAP and revenue would…

Thank you, Ravi, and good morning, everyone. During the fourth quarter, there were several noteworthy auctions including the CAD 129 million four-day auction that was held in Edmonton at the end of October. But it was several Private Treaty transactions that completed during the quarter that helped to drive this strong revenue rate. More than $38 million of assets were sold through our Private Treaty offering during the fourth quarter. As we called out on our third quarter earnings call, there were some significant auction timing differences that affected our reported GAP in both the third and fourth quarter of 2016. We reported just over $1 billion of GAP in the fourth quarter of 2016, down approximately 8% from $1.1 billion in the same quarter last year. Much of the year-over-year decline was due to the shifting of the Montreal and Columbus auctions that took place in the fourth quarter last year, being scheduled in the third quarter of this year. Together, these two auctions accounted for $53 million of GAP last year. If we were to move this GAP from the fourth quarter 2015 into the third quarter of 2015 to normalize the comp, GAP in the fourth quarter of 2016 would have declined only 3.8%. Used equipment pricing relative to the year-ago quarter was the other contributing factor for the lower GAP, as lot count did grow relative to the fourth quarter of 2015 even with fewer auctions held inside the quarter. Overall, used equipment pricing was down approximately 5% from the pricing we saw in the year-ago quarter. However, pricing was relatively stable for the third quarter to the fourth in 2016. Construction sector assets continue to meet or exceed our expectations, with excavators holding about 10% more value compared to what we saw at the dip…

Thank you, Sharon. We are announcing a few operational updates today, as outlined in our earnings release issued this morning. First, a few management changes will be occurring in the next several months, including the retirement of Randy Wall, our President of Canada Operations. Randy is a long-time executive for Ritchie Bros. and someone who's become an amazing and good friend. He's one of the few executives who built on his past experience and remained open-minded to new ideas and embraced the vision that I've articulated for the company. For example, Randy has done a tremendous job in growing our Private Treaty channel in Canada. While I'm sad that he has decided to retire, I'm so grateful that he agreed to come out of his earlier retirement three-and-a-half years ago to help lead our Canadian group. He's been an instrumental member of our executive team and someone that has shared great insight and experiences with many of us who are new to Ritchie Bros. Randy intends to retire during the second quarter, following a smooth transition of his leadership role to a successor. We're currently considering internal candidates for Randy's succession and we'll provide an update on future leadership appointments for the Canadian business once a decision has been made. Of course, I'll continue to try to persuade Randy to continue to extend, though I did promise him that I would officially announce this on the call today. And so if investors feel like calling Randy directly, you're welcome. He's an amazing executive. I'm also very pleased to announce that we have promoted Karl Werner to President, International, beginning on April 1, 2017. Karl's done an amazing job in the Middle East and so I'm really confident that in his new role, Karl will oversee all regions outside of North…

Thank you. Your first question comes from the line of Sara O'Brien from RBC. Your line is open.

Hi. Good morning. Ravi, can you comment on the changes in management recently in the U.S. and now in Canada and maybe what the impact is going forward on – or what you've seen so far in terms of employee response to this and response to the IronPlanet deal?

So, morning, Sara. Look, on the Canada thing, I wish Randy would stay forever, but he had retired once before and I've been sort of persuading, he wanted to only stay for six months, I've got him so far for three and a half years. So, I respect what he wants to do. He's been amazing. But one great legacy of a great leader is that he prepares successors and we have some incredible talent in Canada. So I think Randy – we've already been in the process of identifying both the structure and the right leader for Canada and I'm very confident that Randy's legacy will be preserved and continued, so I have no concerns at all about Canada. In the U.S., look, sometimes we – I think we put the right structure. You get to some – we have made some terrific hires and sometimes you don't get the right leadership in place and we made the right decision both for the individual and for the company. I think the team in the U.S. is absolutely pumped up. The fact that I've brought back Rob Whitsit out of retirement. Rob's an amazing leader. He is helping me a lot with the U.S. teams. I think the U.S. is just going to be – the team is very, very excited. They have a direction. They have clarity. I'm very involved with them, but Rob's been a tremendous help. I think the U.S. will be just fine. As far as IronPlanet acquisition, I've got to tell you, the chemistry between our two teams is terrific. We just have to keep reminding ourselves we are still competitors and we compete in the field. But I think this is – I have done many, many acquisition integrations; this, by far, is one of the very best I've seen in my entire career. We are just united by a passion for the customer. They have terrific talent. We have terrific talent. I have a very clear idea. All the organizational steps we are making are not sort of reactive, they're very planned, very deliberate. I have had a Phase I or Phase II, so I know exactly how this all going to come out and approved by the board. So I just think that part of it, I am – I can't tell you how excited I am about our people, our teams, and the acquisition going forward with IronPlanet. We think we have a very strong case with the DoJ and we just need to be patient and wait for the mechanisms to take their place.

Okay. Maybe just the follow-up, is it as enthusiastic in the Canadian operations as the U.S. in terms of the cross-selling necessity for the sales teams?

So in Canada, Sara, the IronPlanet is not a significant factor today. And so – but having said that, Randy has been part of the team and in the sales integration and so have Brian Glenn has been part of the sales integration. They're very excited because they see tremendous opportunity. Look, the whole point about IronPlanet was not about trying to – we didn't – this is all about expanding the market. This market is $300 billion – globally, $360 billion. How do we – our biggest competitor, frankly, is private sales, and how do we start. We now have tools that will allow us to really – because they're different customers with different needs. So I think it's very exciting. And Randy and his team are very excited about taking IronPlanet into the fold. Randy, do you want to say anything on that?

I sure would, Ravi. Thank you. I totally concur with what you just said. We see the addition of the IronPlanet and the different solutions that we can bring from their channels to our customer base and really expand the entire offering that we have to the customers at large and gaining market share, if you will, from other channels, private dealers and private sale. And the team is very excited to have the extra tools at their disposal and we see this as a wonderful positive for both organizations and groups.

Okay. Thank you.

Your next question comes from the line of Scott Schneeberger from Oppenheimer. Your line is open.

Scott, are you there? Let's try the next caller.

Your next question comes from the line of Joe Box from KeyBanc Capital Markets. Your line is open.

Hey. Good morning, everybody.

Hi, Joe.

So given the importance of the sales force, can you guys just talk about maybe why you decided to modify your strategy to now have a fully integrated sales force between Ritchie and IronPlanet? And maybe just how you see the consolidated sales department kind of selling the various channels?

Let me kick it off and then I'll have Rob also comment on it. First, you said modified our sales strategy. It's not a modification. We have just articulated. Now, this was for me – from the day we did the acquisition, this was very clear because what – the acquisition represents really being having multichannel offerings to provide a full set of solutions to customers based on their usage occasions, based on the type of customer, based on the psyche. So truly, this is about expanding what we can do. And really, for those customers who want a reserved option, you have both EquipmentOne and IronPlanet Daily Marketplace and those two brands will likely come together. Then you've got – if you don't want to move the equipment but want flow business, which is every week, the weekly unreserved option from IronPlanet, is great. And then when you want a event-driven live auction, which is unreserved, then we have got the Ritchie Bros.' traditional RBA. So I think you've got three and we want our sales people to really be trusted advisers who provide the optimum solution. So that is the whole intent here and that's why we're doing the integrated sales force. And, clearly, they'll be trained on each other's models. But we think there was not a single person in my management team who thought we should do it differently. Rob, do you have anything you want to comment?

No. I think that's absolutely right, Ravi. And it's exciting to see the enthusiasm from both sides and are anxious to get together and perform as one team. And that's the selling solution we have, is performing as one team. And adding on – it's not an acquisition to get rid of. It's an acquisition to increase our footprint in the marketplace today. And that's what our intention is and that what's driving the business.

Got it.

And I think from a customer perspective, they don't want multiple sales people calling on them...

No.

Joe, they want one face of Ritchie Bros.

I agree. All right. I'll leave it at that. Thanks, guys.

Thank you.

Your next question comes from the line of Ben Cherniavsky from Raymond James. Your line is open.

Good morning, guys.

Hello, Ben.

Good morning.

Just on the IronPlanet pro formas. In the customer equity incentives, you guys have eliminated those numbers in the pro forma statements. And I'm just curious if you can speak to – I mean, I understand that you would stop offering those incentives, but weren't those incentives linked to equipment that was coming into the yard and so does it affect your ability to still attract Iron and maybe you can just elaborate a little bit on how those incentives work?

Sure, Ben. It's Sharon. I think it's important to note that the reason those equity incentives were there, were results of an agreement on the purchase of Cat Auction Services. So, it was seen more as kind of an earn-out program for dealers. The reason it gets the presentation on the financials that it does is it was a program that was extended to all dealers; not just the dealers that had an ownership position in Cat Auction Services. That agreement also naturally expired at the end of December 2016. So, certainly, we did look at that particular element when we were in due diligence and we were satisfied that it had more to do with the acquisition of the company as opposed to driving the behavior. It's certainly – the value that I think the Cat dealers really get is the information in the data from IronPlanet and that's really what was driving the results. And so, that's why it's been eliminated.

So you expect the revenue to continue because of the data you're offering and not the incentives.

Yeah. It was a non-cash. They just were getting more shares in IronPlanet, so.

Yeah. Ben, I think, look, they had made that decision to eliminate that incentive even before we came into the picture. And we're pretty confident really as I've renegotiated the whole agreement for the combined company with Cat dealers, that we have a very – there are a lot of things in the agreement that make this alliance work and part of it is data sharing, part of it is telematics. We get different things from them. So I think this is going to be very attractive and so we didn't see any need. And since they'd already made the decision and even if they'd not, I don't know that they'd have continued it anyway. But I think they had made it, and so we don't see that as an issue going forward.

Okay. Thanks very much. That's my question.

Your next question comes from Scott Schneeberger from Oppenheimer. Your line is open. Scott Schneeberger - Oppenheimer & Co., Inc.: Thanks very much. Can you hear me this time?

Yes, Scott. Hi.

Yeah. Hi, Scott. Scott Schneeberger - Oppenheimer & Co., Inc.: Great. Sorry about that last time, technical difficulty. Ravi, question about the – outside of the Americas, the international strategy, obviously some things going on in China, Japan, and then I saw that you're working to bolster Germany and Australia. So, just how you're thinking about outside the Americas via the international development? Thank you.

So, Scott, just to clarify, you want me to amplify more on the international? Scott Schneeberger - Oppenheimer & Co., Inc.: That's right.

Okay. So yeah, I think, look, I am pretty familiar, as you know, with international markets, having lived in six countries and worked in about 50. So, the big thing for me for international business is not to go on a flags – on maps sort of a thing with a lot of breadth. It's depth that's quite important. So as we've looked at it, Europe has been sort of in the doldrums for the last several years because it's been very supply-constrained. We've got a terrific team under Jeroen there. And so the key is, how do we crack the code. And when Kieran was in Asia, I think we looked at Japan and I think I've said this before. I'm not sure – really Japan is not a place where – Japanese are not big on using second-hand cars or used equipment. They're more exporter. So they've got great OEMs. So we came to the conclusion. It's really best served as a source market as well as digital channels were better. In retrospect, maybe we should never have put the site there, but that's neither here, nor there. So we'll come to a view that, over time, we're going to exit the site once we get the right value for it. So, as we've been going through this process, China again, I think it's a long-term thing. You really have to say, where are we, where can we really drive revenues and profits. For me, Australia – and Kieran did some great work here, and I have spent a lot of time in Australia in my career, Australia is a lot like Canada, lot of natural resources, the home of mining. So, we've been doing some private equity deals – sorry, our Private Treaty deals. And so, I…

Your next question comes from the line of Sara O'Brien from RBC. Your line is open.

Hi. Just wanted to ask about the Shell agreement that was signed last week, and how material that can be? Maybe if you can comment on other such types of deals that might be in the pipeline?

So I will have Randy first comment on the Shell deal and then Jim Barr more about our whole ESS strategy on EquipmentOne because they are linked.

Thank you, Ravi. Thank you, Sara. On the – Shell is a great example of using the multiplatform solutions that we have for larger organizations. And we're developing an enterprise solution that first provides a platform for Shell to redeploy within their own divisions globally and then failing that to go to the external marketplace. And they want a simple solution that can handle all those things, and our products can do that. So we're already doing business with Shell even before that transaction both on Private Treaty as well as live auction and E1. And that will expand and focus on the enterprise or online solution. So, it's in the tens of millions a year and could be much larger than that, but it all depends on realization and in many cases, the assets are in challenged locations globally around the world. So we're being cautious in terms of our expectations, but it could also be a proving ground for us to be able to service the energy sector in a much, much larger way with these super nationals. And so we believe the upside can be fairly significant, Sara, but we're learning as we go in the beginning and here in building a platform that really works to service their needs. And as I've said, we've already been doing business with them to date, using our other channels without the special solution crafted just for them.

And I'll be just careful about taking any numbers and putting that into the model. This is really more indicative of the strategy and because we talked about asset management and disposition, this covers really as more to asset management side. And again, these things are lumpy. You never know when they'll come. But these are all the innovative things we're doing as a company and it shows the sea change that has occurred, because we keep bleating about multi-channel, but this is manifestation of what does that really mean. Jim, you want to add some color?

Sure. Yeah. I think it's been spoken about correctly so far. I mean, really what we're looking for is to really take another step in being trusted advisors to our customers and give them more alternatives and this one is very much in an asset management model where we get a good look at our customers' overall asset portfolio. And that puts us in a position to help with being a trusted advisor, helping them determine the best ways to dispose of equipment, the best time to dispose of equipment, the best channels to dispose of equipment and it's part of our overall strategy. We do it for companies like Shell, but we've also done it for dealers as well and dealer in OEM networks where we're able to get into the asset stream of dealer to dealer transfers which is another part of the $360 billion industry that we're after and a set of really revenue stream and an assistance to customers that we've not been able to do before. So we're getting deeper into our customers in order to give them more options and help them do more parts of their business and obviously that gives us great visibility into other ways we can help them.

Okay. Maybe just...

And this is really getting to the heart of strategic account customers and some of these maybe big on GAAP, but may actually with the dealer side maybe very small margins. But the important thing is, once you get in, you're really becoming part of their fabric. And so when the need arises for auctions or EquipmentOne or whatever, then you sort of become preferred in their mindset.

Okay. So it is sort of a graduated approach to commission versus just a fee-based kind of deal with the customers?

Well, it varies, right. The Shell thing is on a whole different platform versus what we do with dealers. We don't comment specifically on how we do these. I think the important thing to look at is, hey, we're – just with the multichannel offering, we're really becoming closer to our customers and offering them a variety of solutions which over time should help us – what I'm trying to do – the vision is how do we create models which are a little bit more predictable and add in addition to our lumpy businesses?

Okay. Thank you.

There are no further questions at this time. Mr. Saligram, I turn the call back over to you.

Great. Well, I think I'm very proud of what the team accomplished in 2016, and we look forward to 2017, and thank you all investors for your support, onwards and upwards.

This concludes today's conference call. You may now disconnect.