Displaying items by tag: bill ruprecht

One of the harshest battles between an activist investor and a company came to an end on Monday, when Sotheby’s announced it had reached a deal with hedge fund billionaire Dan Loeb.  Third Point, run by Loeb, won a partial victory, securing three board spots and the removal of a poison pill that will allow it to raise its stake in the company to 15%, yet he didn’t manage to force embattled CEO Bill Ruprecht to ease his grip on the company, as he’s manage to hold on to his job while remaining president and chairman of the board of directors.

The international auction house Sotheby’s reported that their second-quarter profits rose 7 percent, thanks in part to a $6.8 million net income tax benefit recognized by the company. Sotheby’s said that second-quarter profits reached $91.7 million, or $1.33 a share, up from last year’s profit of $85.4 million, or $1.24 a share. Expenses rose 2 percent to $171.6 million for the auction house.

Bill Ruprecht, Chairman, President and CEO of Sotheby’s, said, “Our business and the market for quality art at the high end continue to be strong. We saw significant sales growth in Impressionist, Modern and Contemporary Art and posted the best results in the market in the vast majority of key sales this spring. We continue to see fierce competition for high-end consignments and as a result, lower auction commission margins.”

Sotheby’s announced its financial results for the first quarter of 2013, which ended March 31. The auction house’s first quarter total revenues were $101.7 million, a $3.2 million decrease from 2012. The decline was mainly caused by a reduction in auction commission margin from 18.1% to 15%. However, the quarter’s net auction sales increased 23% compared to last year’s first quarter.

High-grossing categories, including Impressionism as well a Modern and Contemporary Art, remained highly competitive. In an effort to enhance revenue and strengthen auction commission margins, Sotheby’s changed its buyer’s premiums structure rate on March 15, 2013. Buyers now pay 25% on the first $100,000 of a work’s selling price; 20% on the portion of the price above $100,000 but under $2 million; and 12% on any remaining amount about $2 million. Since most sales for the first quarter of 2013 took place before this shift occurred, it did not have a substantial impact on Sotheby’s results for the first quarter of 2013.

Due to the nature of the auction seasons, first and third quarters tend to bring in lower revenues than the second and fourth quarters. Typically, first quarter results are not an accurate gauge of expected full year results. Sotheby’s Chairman, President and CEO Bill Ruprecht said, “The first quarter showed a solid increase in auction sales compared to the prior year, but the results illustrate how competitive the market is for the highest value consignments. That competition resulted in lower commission margins, which is reflected on the bottom line.”

While Sotheby's did report record breaking sales during their second quarter and first half that ended June 30, 2012, their overall revenues have decreased from the previous year. "Our operating results reflect some tremendous successes, but also reflect the challenging global economy, a tough comparison to the best quarter in Sotheby's history a year ago," said Bill Ruprecht, Sotheby's President and Chief Executive Officer.

Sotheby's report stated that their second quarter net income was $85.4 million, a 33% decrease from 2011 and total revenues hit $303.9 million, down 18% from last year. For the six months that ended June 30th, Sotheby's reported a net income of $74.8 million, a decrease of 42%, and total revenues came in at $408.9 million, down 16% from 2011. Although there has been a slowdown in the Asian market, Ruprecht says, "art appears to remain an attracting asset for collectors and out consignment pipeline for the Autumn season is very active at the moment."

A testament to that hunch is the world record-breaking sale of Edvard Munch's The Scream. Sold for $119.9 million at the Impressionist and Modern Evening Sale in New York in May, the Evening Sale totaled $330.6 million, Sotheby's highest ever total for an Impressionist and Modern Art Worldwide Sale. It was the second highest total for a Sotheby's auction in any category.

Other big sales included one of Andy Warhol's last self-portraits and Flowers, both of which sold from the collection of the late photographer, Gunter Sachs, for $8.5 million and $5.9 million, respectively, in a May auction London. Joan Miro's Peinture (Etoile Bleue) sold for $36.9 million, a record for the artist at auction, at Sotheby's June London sale. Also highlighting the Impressionist and Modern Art sales was Pablo Picasso's late portrait, Homme Assis, which brought in $9.7 million. The June London Contemporary Art series also fared well, bringing in a total of $129.7 million. The top lot was Jean-Michel Basquiat's Warrior which sold for $8.7 million, nearly double the amount it acheived at auction five years ago.