Segment Information

3 Months Ended

Mar. 31, 2018

4. Segment information

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

Auctions and Marketplaces – This is the Company’s only reportable segment, which consists of the Company’s live on site auctions, its online auctions and marketplaces, and its brokerage service;

Other includes the results of Ritchie Bros. Financial Services (“RBFS”), Mascus online services, and the results from various value-added services and make-ready activities, including the Company’s equipment refurbishment services, Asset Appraisal Services, and Ritchie Bros. Logistical Services.



		Three months ended March 31, 2018
	A&M		Other			Consolidated
Service revenues	$	148,405	$	27,611		$	176,016
Revenue from inventory sales		84,162		-			84,162
Total revenues		232,567		27,611	-		260,178
Costs of services		21,448		15,209			36,657
Cost of inventory sold		75,791		-			75,791
Selling, general and administrative
expenses ("SG&A")		93,002		4,468			97,470
Segment profit	$	42,326	$	7,934		$	50,260
Acquisition-related costs							1,633
D&A expenses							16,191
Gain on disposition of property, plant
and equipment ("PPE")							(345)
Foreign exchange gain							(92)
Operating income						$	32,873
Interest expense							(11,310)
Other income, net							913
Income tax expense							(5,269)
Net income						$	17,207

4. Segment information (continued)



		Three months ended March 31, 2017
	A&M		Other		Consolidated
Service revenues	$	103,030	$	20,349	$	123,379
Revenue from inventory sales		76,048		-		76,048
Total revenues		179,078		20,349		199,427
Costs of services		12,587		11,753		24,340
Cost of inventory sold		63,401		-		63,401
SG&A expenses		67,111		3,464		70,575
Segment profit	$	35,979	$	5,132	$	41,111
Acquisition-related costs						8,627
D&A expenses						10,338
Gain on disposition of PPE						(721)
Foreign exchange gain						(730)
Operating income					$	23,597
Interest expense						(8,133)
Other income, net						2,284
Income tax expense						(7,315)
Net income					$	10,433

The Company‘s geographic breakdown of total revenue is as follows:



		United States		Canada		Europe		Other		Consolidated
Total revenues for the three months ended:
March 31, 2018	$	135,563	$	65,809	$	34,574	$	24,232	$	260,178
March 31, 2017		112,083		41,492		18,267		27,585		199,427