Segmented Information

6 Months Ended

Jun. 30, 2017

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 IronPlanet, EquipmentOne, and Mascus online services. On May 31, 2017, the Company acquired IronPlanet (note 22) and updated its segment reporting such that the results of IronPlanet, EquipmentOne and Mascus are reported as “Other”. The Company is currently considering changes to the structure of its organization that may cause future changes to its reportable segments.

5. Segmented information (continued)



		Three months ended						Six months ended
		June 30, 2017						June 30, 2017
	Core						Core
	Auction		Other			Consolidated	Auction		Other			Consolidated
Revenues	$	148,028	$	18,158	$	166,186	$	265,800	$	24,885	$	290,685
Costs of services, excluding
depreciation and amortization		(17,981)		(3,610)		(21,591)		(30,019)		(4,385)		(34,404)
Selling, general, and administrative
("SG&A") expenses		(64,763)		(9,614)		(74,377)		(130,333)		(14,619)		(144,952)
Depreciation and amortization expenses		(9,440)		(2,432)		(11,872)		(18,894)		(3,316)		(22,210)
Impairment loss		(3,444)		(5,467)		(8,911)		(3,444)		(5,467)		(8,911)
	$	52,400	$	(2,965)	$	49,435	$	83,110	$	(2,902)	$	80,208
Acquisition-related costs						(22,948)						(31,575)
Gain on disposition of property,
plant and equipment						308						1,029
Foreign exchange gain						93						823
Operating income					$	26,888					$	50,485
Equity income (loss)						4						(49)
Other and income tax expenses						(9,179)						(22,290)
Net income					$	17,713					$	28,146



		Three months ended						Six months ended
	June 30, 2016							June 30, 2016
		Core						Core
	Auction		Other			Consolidated	Auction		Other			Consolidated
Revenues	$	152,542	$	6,263	$	158,805	$	279,882	$	10,868	$	290,750
Costs of services, excluding
depreciation and amortization		(19,438)		(320)		(19,758)		(34,223)		(848)		(35,071)
SG&A expenses		(68,848)		(5,144)		(73,992)		(133,362)		(7,740)		(141,102)
Depreciation and amortization expenses		(9,397)		(887)		(10,284)		(18,701)		(1,663)		(20,364)
	$	54,859	$	(88)	$	54,771	$	93,596	$	617	$	94,213
Acquisition-related costs						(603)						(1,800)
Gain on disposition of property,
plant and equipment						201						447
Foreign exchange loss						(734)						(51)
Operating income					$	53,635					$	92,809
Equity income						477						996
Other and income tax expenses						(13,521)						(23,220)
Net income					$	40,591					$	70,585