Segmented Information

3 Months Ended

Mar. 31, 2019

4. Segmented 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, 2019
	A&M		Other		Consolidated
Service revenue	$	143,437	$	28,935	$	172,372
Inventory sales revenue		131,057		-		131,057
Total revenue	$	274,494	$	28,935	$	303,429
Costs of services		20,817		15,252		36,069
Cost of inventory sold		120,475		-		120,475
SG&A expenses		89,182		6,002		95,184
Segment profit	$	44,020	$	7,681	$	51,701
Acquisition-related costs						669
Depreciation and amortization
expenses ("D&A")						17,115
Gain on disposition of property, plant
and equipment ("PPE")						(149)
Foreign exchange loss						478
Operating income					$	33,588
Interest expense						(10,816)
Other income, net						2,039
Income tax expense						(6,639)
Net income					$	18,172

4. Segmented information (continued)



		Three months ended March 31, 2018
	A&M		Other		Consolidated
Service revenue	$	148,405	$	27,611	$	176,016
Inventory sales revenue		84,162		-		84,162
Total revenue	$	232,567	$	27,611		260,178
Costs of services		21,448		15,209		36,657
Cost of inventory sold		75,791				75,791
SG&A expenses		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 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

The Company‘s geographic breakdown of total revenue as determined by the revenue and location of assets, which represents property, plant and equipment is as follows:



		United States		Canada		Europe		Other		Consolidated
Total revenue for the three months ended:
March 31, 2019	$	183,573	$	31,531	$	54,785	$	33,540	$	303,429
March 31, 2018		135,563		65,809		34,574		24,232		260,178