Segmented information

3 Months Ended

Mar. 31, 2021

Segmented information

Segmented information

6.    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 Rouse, 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 (“RB Logistics”).

	Three months ended March 31, 2021
	A&M		Other		Consolidated
Service revenue	$	170,755	$	35,275	$	206,030
Inventory sales revenue		125,525		—		125,525
Total revenue	$	296,280	$	35,275	$	331,555
Costs of services		21,590		14,437		36,027
Cost of inventory sold		110,747		—		110,747
Selling, general and administrative expenses ("SG&A")		104,345		11,733		116,078
Segment profit	$	59,598	$	9,105	$	68,703
Acquisition-related costs						2,922
Depreciation and amortization expenses ("D&A")						21,070
Gain on disposition of property, plant and equipment ("PPE")						(68)
Foreign exchange loss						277
Operating income					$	44,502
Interest expense						(8,946)
Other income, net						1,002
Income tax expense						(8,419)
Net income					$	28,139

	Three months ended March 31, 2020
	A&M		Other		Consolidated
Service revenue	$	154,743	$	28,380	$	183,123
Inventory sales revenue		90,132		—		90,132
Total revenue		244,875		28,380		273,255
Costs of services		25,095		14,260		39,355
Cost of inventory sold		81,585		—		81,585
SG&A expenses		91,585		6,800		98,385
Segment profit	$	46,610		7,320		53,930
Acquisition-related costs						—
D&A expenses						19,293
Gain on disposition of PPE						(47)
Foreign exchange loss						602
Operating income						34,082
Interest expense						(9,182)
Other income, net						3,577
Income tax expense						(5,648)
Net income						22,829

The Chief operating decision maker “CODM” does not evaluate the performance of the Company’s operating segments or assess allocation of resources based on segment assets and liabilities, nor does the Company classify liabilities on a segmented basis.

6.    Segmented information (continued)

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

	United
	States		Canada		Europe		Other		Consolidated
Total revenue for the three months ended:
March 31, 2021	$	207,414	$	48,478	$	47,176	$	28,487	$	331,555
March 31, 2020		190,530		35,643		26,338		20,744		273,255