XML 34 R21.htm IDEA: XBRL DOCUMENT v3.22.4
Segment Information
3 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment Information
14.
Segment Information

The Company provides operating results in four reportable segments: GovDeals, Retail Supply Chain Group (RSCG), Capital Asset Group (CAG), and Machinio. Descriptions of our reportable segments are as follows:

The GovDeals reportable segment provides self-directed service solutions that enable federal, state, and local government entities including city, county and state agencies located in the United States and Canada, to sell surplus, salvage and real estate assets through the GovDeals and Bid4Assets marketplaces.
The RSCG reportable segment consists of marketplaces that enable corporations located in the United States and Canada to sell surplus and salvage consumer goods. RSCG also offers a suite of services that includes returns management, asset recovery, and e-commerce services. This segment uses the Liquidation.com, Secondipity and AllSurplus marketplaces.
The CAG reportable segment provides managed and self-directed service solutions to sellers and consists of marketplaces that enable commercial businesses to sell surplus and idle assets. CAG also offers a suite of services that includes surplus management, asset valuation, asset sales and marketing. Commercial seller assets are located across the Americas, Europe, Australia, Asia, and Africa. This segment uses the AllSurplus and GoIndustry DoveBid marketplaces.
The Machinio reportable segment operates a global search engine platform for listing used equipment for sale in the construction, machine tool, transportation, printing and agriculture sectors. Machinio also offers the Machinio System service that provides equipment sellers with a set of online marketing tools that includes website hosting, email marketing, and inventory management.

We also report results for Corporate & Other, including elimination adjustments.

Decisions concerning the allocation of the Company’s resources are made by the Company’s Chief Operating Decision Maker (CODM), which is the Company's Chief Executive Officer, with oversight by the Board of Directors. The Company reports reportable segment information based on the internal performance measures used by the CODM to assess the performance of each operating segment in a given period. In connection with this assessment, the CODM uses direct profit to evaluate the performance of each segment. Segment direct profit, previously referred to as segment gross profit, continues to be calculated as total revenue less cost of goods sold (excluding depreciation and amortization).

The following table sets forth certain financial information for the Company's reportable segments:

 

 

 

 

Three Months Ended December 31,

 

(in thousands)

2022

 

 

2021

 

GovDeals:

 

 

 

 

 

 

 

 

Purchase revenue

 

$

 

 

$

 

 

Consignment and other fee revenues

 

 

13,607

 

 

 

13,984

 

 

Total revenue

 

 

13,607

 

 

 

13,984

 

 

Segment direct profit

 

$

12,892

 

 

$

13,295

 

 

 

 

 

 

 

 

RSCG:

 

 

 

 

 

 

Purchase revenue

$

35,870

 

 

$

32,083

 

 

Consignment and other fee revenues

 

10,145

 

 

 

6,601

 

 

Total revenue

 

46,015

 

 

 

38,684

 

 

Segment direct profit

$

16,011

 

 

$

14,257

 

 

 

 

 

 

 

 

CAG:

 

 

 

 

 

 

Purchase revenue

$

2,763

 

 

$

4,134

 

 

Consignment and other fee revenues

 

6,629

 

 

 

7,073

 

 

Total revenue

 

9,393

 

 

 

11,207

 

 

Segment direct profit

$

8,502

 

 

$

8,719

 

 

 

 

 

 

 

 

Machinio:

 

 

 

 

 

 

Purchase revenue

$

 

 

$

 

 

Consignment and other fee revenues

 

3,267

 

 

 

2,832

 

 

Total revenue

 

3,267

 

 

 

2,832

 

 

Segment direct profit

$

3,105

 

 

$

2,674

 

 

 

 

 

 

 

 

Corporate & Other, including elimination adjustments:

 

 

 

 

 

 

Purchase revenue

$

 

 

$

 

 

Consignment and other fee revenues

 

 

 

 

 

 

Total revenue

 

 

 

 

 

 

Segment direct profit

$

 

 

$

 

 

 

 

 

 

 

 

Consolidated:

 

 

 

 

 

 

Purchase revenue

$

38,634

 

 

$

36,217

 

 

Consignment and other fee revenues

 

33,648

 

 

 

30,490

 

 

Total revenue

 

72,282

 

 

 

66,707

 

 

Total Segment direct profit

$

40,509

 

 

$

38,945

 

 

The following table reconciles segment direct profit used in the reportable segments to the Company's consolidated results:

 



Three Months Ended December 31,

 

(in thousands)

2022

 

 

2021

 

Reconciliation:



 

 



 

Total segment direct profit

$

40,509

 

 

$

38,945

 

Other costs and expenses from operations (1)

 

35,643

 

 

 

34,494

 

Interest and other income, net

 

(249

)

 

 

(163

)

Income before provision for income taxes

$

5,116

 

 

$

4,614

 

 

(1)
Other costs and expenses from operations is defined as Total costs and expenses from operations per the Condensed Consolidated Statements of Operations, less Cost of goods sold (which is included in the calculation of Segment direct profit).

 

The percent of our revenues that came from transactions conducted outside of the United States for the three months ended December 31, 2022, and 2021 was 13.5% and 13.5%, respectively.