Segmented Information

9 Months Ended

Sep. 30, 2016

Segmented Information [Abstract]

Segmented Information

5.  Segmented information

The Company’s principal business activity is the sale of industrial equipment and other assets at auctions. The Company’s operations are comprised of one reportable segment and other business activities that are not reportable as follows:

· Core Auction segment, a network of auction locations that conduct live, unreserved auctions with both on-site and online bidding; and

· Other includes the results of the Company’s EquipmentOne and Mascus online services, which are not material to the Company’s consolidated financial statements. On February 19, 2016, the Company acquired Mascus and updated its segment reporting such that the results of EquipmentOne and Mascus (subsequent to acquisition) are reported as “Other.”

5.  Segmented information (continued)

The Chief Operating Decision Maker evaluates segment performance based on earnings (loss) from operations, which is calculated as revenues less costs of services, selling, general and administrative (“SG&A”) expenses, depreciation and amortization expenses, and impairment loss. The significant non-cash items included in segment earnings (loss) from operations are depreciation and amortization expenses and impairment loss.

		Three months ended						Nine months ended
		September 30, 2016						September 30, 2016
	Core						Core
	Auction		Other			Consolidated	Auction		Other			Consolidated
Revenues	$	122,789	$	6,087	$	128,876	$	402,671	$	16,955	$	419,626
Costs of services, excluding
depreciation and amortization		(14,131)		(619)		(14,750)		(48,354)		(1,467)		(49,821)
SG&A expenses		(63,998)		(5,002)		(69,000)		(197,222)		(13,931)		(211,153)
Depreciation and amortization expenses		(9,259)		(937)		(10,196)		(27,960)		(2,600)		(30,560)
Impairment loss		-		(28,243)		(28,243)		-		(28,243)		(28,243)
	$	35,401	$	(28,714)	$	6,687	$	129,135	$	(29,286)	$	99,849
Acquisition-related costs						(4,691)						(5,440)
Gain on disposition of property,
plant and equipment						570						1,017
Foreign exchange loss						(281)						(332)
Operating income					$	2,285					$	95,094
Equity income						213						1,209
Other and income tax expenses						(7,498)						(30,718)
Net income (loss)					$	(5,000)					$	65,585

		Three months ended						Nine months ended
	September 30, 2015							September 30, 2015
		Core						Core
	Auction		Other			Consolidated	Auction		Other			Consolidated
Revenues	$	105,421	$	3,897	$	109,318	$	369,711	$	10,702	$	380,413
Costs of services, excluding
depreciation and amortization		(12,045)		-		(12,045)		(40,681)		-		(40,681)
SG&A expenses		(54,797)		(3,373)		(58,170)		(177,196)		(9,969)		(187,165)
Depreciation and amortization expenses		(9,357)		(660)		(10,017)		(29,025)		(2,377)		(31,402)
	$	29,222	$	(136)	$	29,086	$	122,809	$	(1,644)	$	121,165
Gain on disposition of property,
plant and equipment						234						1,200
Foreign exchange gain (loss)						(718)						2,051
Operating income					$	28,602					$	124,416
Equity income						363						769
Other and income tax expenses						(7,718)						(33,982)
Net income					$	21,247					$	91,203