Segmented information

9 Months Ended

Sep. 30, 2020

Segmented information

Segmented information

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 September 30, 2020						Nine months ended September 30, 2020
	A&M		Other		Consolidated		A&M		Other		Consolidated
Service revenue	$	188,949	$	33,730	$	222,679	$	543,340	$	96,601	$	639,941
Inventory sales revenue		108,863		—		108,863		353,906		—		353,906
Total revenue	$	297,812	$	33,730	$	331,542	$	897,246	$	96,601	$	993,847
Costs of services		21,733		17,490		39,223		69,018		49,008		118,026
Cost of inventory sold		96,253		—		96,253		320,972		—		320,972
Selling, general and administrative expenses ("SG&A")		103,933		6,253		110,186		290,077		19,126		309,203
Segment profit	$	75,893	$	9,987	$	85,880	$	217,179	$	28,467	$	245,646
Depreciation and amortization expenses ("D&A")						18,436						55,586
Gain on disposition of property, plant and equipment ("PPE")						(276)						(1,536)
Foreign exchange loss						336						1,330
Operating income					$	67,384					$	190,266
Interest expense						(8,737)						(26,801)
Other income, net						2,280						6,714
Income tax expense						(15,437)						(48,741)
Net income					$	45,490					$	121,438

4.    Segmented information (continued)

	Three months ended September 30, 2019						Nine months ended September 30, 2019
	A&M		Other		Consolidated		A&M		Other		Consolidated
Service revenue	$	150,093	$	28,484	$	178,577	$	494,580	$	90,975	$	585,555
Inventory sales revenue		111,219		—		111,219		400,892		—		400,892
Total revenue		261,312		28,484		289,796	$	895,472	$	90,975	$	986,447
Costs of services		21,431		14,951		36,382		74,799		47,920		122,719
Cost of inventory sold		102,410		—		102,410		372,703		—		372,703
SG&A expenses		88,138		5,553		93,691		268,786		17,803		286,589
Segment profit	$	49,333		7,980		57,313	$	179,184	$	25,252	$	204,436
Acquisition-related costs						45						752
D&A expenses						17,692						51,919
Gain on disposition of PPE						(821)						(1,071)
Foreign exchange loss						237						1,118
Operating income						40,160					$	151,718
Interest expense						(10,090)						(31,023)
Other income, net						1,962						5,680
Income tax expense						(6,760)						(28,800)
Net income						25,272					$	97,575

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

	United
	States		Canada		Europe		Other		Consolidated
Total revenue for the three months ended:
September 30, 2020	$	177,883	$	58,059	$	41,891	$	53,709	$	331,542
September 30, 2019		156,380		56,129		34,522		42,765		289,796
Total revenue for the nine months ended:
September 30, 2020	$	573,001	$	191,692	$	115,659	$	113,495	$	993,847
September 30, 2019		552,186		178,069		136,590		119,602		986,447