IronPlanet Closes Third Quarter with Solid Performance

IronPlanet (www.ironplanet.com), the world’s leading online auction company for used construction and agricultural equipment, recorded a strong performance in the third quarter of 2008, with gross auction sales of $76.4 million — an increase of nearly 60 percent over the third quarter of 2007. Gross auction sales for the nine months ended Sept. 30 were $245.4 million, a 66 percent increase over the same period in 2007.

During the third quarter of 2008, IronPlanet featured auctions drew an average of 14,000 global participants per auction, an increase of 40 percent over the same period in 2007. IronPlanet’s global buyer participation continued to increase in the third quarter of 2008, with 29 percent of equipment shipped to buyers outside the U.S., versus 21 percent in the third quarter of 2007.

IronPlanet’s relationships with OEM partners, equipment dealers, rental companies and contractors have continued to strengthen in 2008, with more than 13,000 lots of equipment sold in the first nine months of 2008 — an increase of 77 percent over the same period in 2007. In addition, IronPlanet sold equipment from approximately 800 consignors, an increase of 82 percent over the first nine months of 2007.

“Our third quarter performance and year-over-year sales increase are a testament to our growth strategy, business investments and our proven auction model,” said Gregory J. Owens, IronPlanet chairman and CEO. “When I talk with customers, they are impressed with the fair market value price performance we are delivering for equipment sold through our auctions. Our ability to attract a global audience of over 14,000 potential buyers to our auctions clearly sets IronPlanet apart and enables us to deliver fair market value pricing that is closer to a retail price and higher than wholesale pricing.”
 
Third quarter 2008 highlights:

• IronPlanet appointed Michael O’Donnell as senior vice president and chief financial officer. O’Donnell brings more than 25 years of financial and business management experience to IronPlanet. Previously, O’Donnell served as chief financial officer and chief operating officer for Procuri Inc., a leading on-demand supply management software company.
• IronPlanet announced a new service for John Deere dealers. The agreement provides John Deere dealers the capability to sell inventory from their private dealer-to-dealer Web site (UsedExpress.com), and their public used equipment Web site (machinefinder.com) through IronPlanet’s online marketplace.
• List & Clark Construction sold $3.9 million through IronPlanet. IronPlanet liquidated $3.9 million of used equipment for List & Clark Construction of Lenexa, Kan., USA, achieving $400,000 more than its initial price target. The July 11 auction drew a global audience of more than 10,000 visitors and generated an average of 29 bids per item.
• IronPlanet conducted its first absolute real estate auction. IronPlanet Real Estate successfully completed its first commercial property sale — a $1.7 million unreserved auction held on July 18.