Segmented information

9 Months Ended

Sep. 30, 2022

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 onsite auctions, its online auctions and marketplaces, and its brokerage service;

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

	Three months ended September 30, 2022						Nine months ended September 30, 2022
	A&M		Other		Consolidated		A&M		Other		Consolidated
Service revenue:
Commissions	$	108,238	$	—	$	108,238	$	361,016	$	—	$	361,016
Fees		85,689		52,769		138,458		268,906		148,137		417,043
Total service revenue		193,927		52,769		246,696		629,922		148,137		778,059
Inventory sales revenue		164,783		—		164,783		511,887		—		511,887
Total revenue	$	358,710	$	52,769	$	411,479	$	1,141,809	$	148,137	$	1,289,946
Costs of services		24,601		16,920		41,521		79,160		46,415		125,575
Cost of inventory sold		147,253		—		147,253		455,006		—		455,006
Selling, general and administrative		116,337		16,856		133,193		350,684		53,393		404,077
Segment profit	$	70,519	$	18,993	$	89,512	$	256,959	$	48,329	$	305,288
Acquisition-related costs						2,031						15,067
Depreciation and amortization						24,290						72,813
Foreign exchange gain						(430)						(752)
Total operating expenses					$	347,858					$	1,071,786
Gain on disposition of property, plant and equipment						333						170,499
Operating income					$	63,954					$	388,659
Interest expense						(9,199)						(48,348)
Change in fair value of derivatives						—						1,263
Other income, net						2,866						5,426
Income tax expense						(14,697)						(72,564)
Net income					$	42,924					$	274,436

	Three months ended September 30, 2021						Nine months ended September 30, 2021
	A&M		Other		Consolidated		A&M		Other		Consolidated
Service revenue:
Commissions	$	110,275	$	—	$	110,275	$	343,584	$	—	$	343,584
Fees		68,607		35,311		103,918		220,037		109,350		329,387
Total service revenue		178,882		35,311		214,193		563,621		109,350		672,971
Inventory sales revenue		115,489		—		115,489		384,627		—		384,627
Total revenue	$	294,371	$	35,311	$	329,682	$	948,248	$	109,350	$	1,057,598
Costs of services		22,728		12,380		35,108		72,208		42,067		114,275
Cost of inventory sold		102,993		—		102,993		344,763		—		344,763
Selling, general and administrative		94,203		12,305		106,508		296,199		34,108		330,307
Segment profit	$	74,447	$	10,626	$	85,073	$	235,078	$	33,175	$	268,253
Acquisition-related costs						10,255						16,226
Depreciation and amortization						21,907						64,912
Foreign exchange loss						360						788
Total operating expenses					$	277,131					$	871,271
Gain on disposition of property, plant and equipment						1,068						1,311
Operating income					$	53,619					$	187,638
Interest expense						(8,807)						(26,620)
Other income, net						602						2,800
Income tax expense						(13,057)						(42,541)
Net income					$	32,357					$	121,277

6.    Segmented information (continued)

The Chief Operating Decision Maker 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.

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

	United
Total revenue for the three months ended:	States		Canada		Australia		Europe		Other		Consolidated
September 30, 2022	$	258,117	$	74,866	$	37,225	$	27,149	$	14,122	$	411,479
September 30, 2021		173,137		55,925		46,488		40,620		13,512		329,682
Total revenue for the nine months ended:
September 30, 2022	$	721,533	$	283,565	$	138,034	$	101,958	$	44,856	$	1,289,946
September 30, 2021		563,942		203,093		110,565		143,263		36,735		1,057,598