In 2013, Sotheby's reported record Consolidated Sales* of
"Our record results in 2013 and a remarkable start to this year, with auction sales up significantly to date in 2014, show Sotheby's is in an extremely strong position today," said Chairman, President and Chief Executive Officer
The improvement in full year net income is primarily attributable to a
The improvement in revenues is partially offset by a higher level of operating expenses due to the cost of strategic investments, as well as inflationary pressures across most expense categories. Management recently announced the results of its cost structure review, with an estimated $22 million** in savings in professional fees, other general and administrative costs, agency direct costs and marketing expenses expected in 2014.
The comparison to the prior year is also favorably impacted by a bond redemption loss of
Management last month announced the results of its Capital Allocation and Financial Policies Review, which was highlighted by the return of
Also, Sotheby's anticipates efforts in two other areas over the next 12 to 24 months to unlock significant value for shareholders: additional debt-financing of the Sotheby's Financial Services loan portfolio, which could result in the return of an additional
Chief Financial Officer
"Today's art collectors have a remarkable understanding not only of quality, but also of value. The key to our success for nearly 300 years has been matching our clients' discerning taste with the right combination of fresh, unique and exquisite artwork and responsible estimates. In 2013, we saw a tremendous surge in interest, with half of our major clients transacting, representing more than a 20% increase in business from this client group. And the number of first time buyers represented 30% of all bidders during 2013 as new audiences engaged with exquisite artwork and with Sotheby's," concluded Ruprecht.
Sotheby's continues to invest in its digital media strategy via the sothebys.com website and its iPad and Android applications to facilitate Sotheby's accessibility to clients on mobile platforms. The website and BIDnow live auction bidding platform were both redesigned in 2013 to enable each to work across all tablet and mobile platforms, resulting in a significant increase in client usage, including a 45% increase in online bidding, a 50% increase in Asian client traffic, and a 25% increase in time spent on mobile devices. In addition, clients in the Sotheby's Preferred client loyalty program have doubled their visits to sothebys.com over the past year, illustrating both the reach of mobile technology and the impact of a more engaging online experience with multi-lingual (e.g., Chinese) content.
Year to Date 2014
Sotheby's annual New York Old Masters Week auctions in late January brought a total of
Sotheby's February sales of Impressionist, Modern and Contemporary Art in
Sotheby's Hong Kong Spring sales will take place between 4 and
*Defined as the sum of Aggregate Auction Sales, Private Sales and Principal revenues. Aggregate Auction Sales represent the hammer price of property sold at auction plus buyer's premium and Private Sales represent the total purchase price of property sold in private sales brokered by Sotheby's.
Note: Estimates do not include buyer's premium and prices achieved include the hammer price plus buyer's premium.
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Sotheby's will host a conference call at
The conference call will also be accessible via webcast on the Investor Relations section of the Sotheby's web site at http://investor.shareholder.com/bid/events.cfm.
This release contains certain "forward-looking statements" (as such term is defined in the Securities and Exchange Act of 1934, as amended) relating to future events and the financial performance of the Company. Such statements are only predictions and involve risks and uncertainties, resulting in the possibility that the actual events or performances will differ materially from such predictions. Major factors, which the Company believes could cause the actual results to differ materially from the predicted results in the "forward-looking statements" include, but are not limited to, the overall strength of the international economy and financial markets, political conditions in various nations, competition with other auctioneers and art dealers, the success of our risk reduction and margin improvement efforts, the amount of quality property being consigned to art auction houses and the marketability at auction of such property. Please refer to our most recently filed Form 10-Q (and/or 10-K) for a complete list of Risk Factors.
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Sotheby's has been uniting collectors with world-class works of art since 1744. Sotheby's became the first international auction house when it expanded from
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|CONSOLIDATED INCOME STATEMENTS|
|(Thousands of dollars, except per share data)|
|Three Months Ended||Twelve Months Ended|
|Agency||$ 327,592||$ 269,959||$ 793,639||$ 717,231|
|Agency direct costs||37,606||26,741||84,594||65,665|
|Cost of Principal revenues||3,192||9,494||30,307||21,118|
|Salaries and related||93,519||78,724||297,450||273,273|
|General and administrative||47,872||41,467||176,830||158,220|
|Depreciation and amortization||5,193||4,698||19,435||17,942|
|Restructuring charges, net||--||--||--||(2)|
|Extinguishment of debt||--||(15,020)||--||(15,020)|
|Income before taxes||136,846||96,855||185,693||159,436|
|Equity in (losses) earnings of investees, net of taxes||(4)||57||15||251|
|Income tax expense||46,089||30,821||55,702||51,395|
|Net income||$ 90,753||$ 66,091||$ 130,006||$ 108,292|
|Basic earnings per share - Sotheby's common shareholders||$ 1.32||$ 0.97||$ 1.90||$ 1.59|
|Diluted earnings per share - Sotheby's common shareholders||$ 1.30||$ 0.96||$ 1.88||$ 1.57|
|Cash dividends paid per common share||$ 0.10||$ 0.28||$ 0.20||$ 0.52|