Segmented information

6 Months Ended

Jun. 30, 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 June 30, 2021						Six months ended June 30, 2021
	A&M		Other		Consolidated		A&M		Other		Consolidated
Service revenue	$	211,475	$	41,273	$	252,748	$	382,230	$	76,548	$	458,778
Inventory sales revenue		143,613		—		143,613		269,138		—		269,138
Total revenue	$	355,088	$	41,273	$	396,361	$	651,368	$	76,548	$	727,916
Costs of services		21,985		17,057		39,042		43,575		31,494		75,069
Cost of inventory sold		131,023		—		131,023		241,770		—		241,770
Selling, general and administrative expenses ("SG&A")		101,417		10,402		111,819		205,762		22,135		227,897
Segment profit	$	100,663	$	13,814	$	114,477	$	160,261	$	22,919	$	183,180
Acquisition-related costs						3,049						5,971
Depreciation and amortization expenses ("D&A")						21,935						43,005
Gain on disposition of property, plant and equipment ("PPE")						(175)						(243)
Foreign exchange loss						151						428
Operating income					$	89,517					$	134,019
Interest expense						(8,867)						(17,813)
Other income, net						1,196						2,198
Income tax expense						(21,065)						(29,484)
Net income					$	60,781					$	88,920

	Three months ended June 30, 2020						Six months ended June 30, 2020
	A&M		Other		Consolidated		A&M		Other		Consolidated
Service revenue	$	199,648	$	34,491	$	234,139	$	354,391	$	62,871	$	417,262
Inventory sales revenue		154,911		—		154,911		245,043		—		245,043
Total revenue	$	354,559	$	34,491	$	389,050	$	599,434	$	62,871	$	662,305
Costs of services		22,190		17,258		39,448		47,285		31,518		78,803
Cost of inventory sold		143,134		—		143,134		224,719		—		224,719
SG&A expenses		94,559		6,073		100,632		186,144		12,873		199,017
Segment profit	$	94,676	$	11,160	$	105,836	$	141,286	$	18,480	$	159,766
D&A expenses						17,857						37,150
Gain on disposition of PPE						(1,213)						(1,260)
Foreign exchange loss						392						994
Operating income					$	88,800					$	122,882
Interest expense						(8,882)						(18,064)
Other income, net						857						4,434
Income tax expense						(27,656)						(33,304)
Net income					$	53,119					$	75,948

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:
June 30, 2021	$	183,391	$	98,690	$	55,467	$	58,813	$	396,361
June 30, 2020		204,588		97,990		47,430		39,042		389,050
Total revenue for the six months ended:
June 30, 2021	$	390,805		147,168	$	102,643	$	87,300	$	727,916
June 30, 2020		395,118		133,633		73,768		59,786		662,305