Segmented information

6 Months Ended

Jun. 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 June 30, 2022						Six months ended June 30, 2022
	A&M		Other		Consolidated		A&M		Other		Consolidated
Service revenue:
Commissions	$	136,403	$	—	$	136,403	$	252,778	$	—	$	252,778
Fees		98,588		51,511		150,099		183,217		95,368		278,585
Total service revenue		234,991		51,511		286,502		435,995		95,368		531,363
Inventory sales revenue		198,044		—		198,044		347,104		—		347,104
Total revenue	$	433,035	$	51,511	$	484,546	$	783,099	$	95,368	$	878,467
Costs of services		28,985		16,054		45,039		54,559		29,495		84,054
Cost of inventory sold		176,171		—		176,171		307,753		—		307,753
Selling, general and administrative		125,535		18,742		144,277		234,346		36,537		270,883
Segment profit	$	102,344	$	16,715	$	119,059	$	186,441	$	29,336	$	215,777
Acquisition-related costs						3,399						13,036
Depreciation and amortization						24,298						48,523
Foreign exchange gain						(158)						(322)
Total operating expenses					$	393,026						723,927
Gain on disposition of property, plant and equipment						347						170,167
Operating income					$	91,867					$	324,707
Interest expense						(18,463)						(39,149)
Change in fair value of derivatives						—						1,263
Other income, net						1,639						2,559
Income tax expense						(21,632)						(57,868)
Net income					$	53,411					$	231,512

	Three months ended June 30, 2021						Six months ended June 30, 2021
	A&M		Other		Consolidated		A&M		Other		Consolidated
Service revenue:
Commissions	$	129,334	$	—	$	129,334	$	233,309	$	—	$	233,309
Fees		83,334		40,080		123,414		151,430		74,039		225,469
Total service revenue		212,668		40,080		252,748		384,739		74,039		458,778
Inventory sales revenue		143,613		—		143,613		269,138		—		269,138
Total revenue	$	356,281	$	40,080	$	396,361	$	653,877	$	74,039	$	727,916
Costs of services		25,176		16,125		41,301		49,480		29,687		79,167
Cost of inventory sold		131,023		—		131,023		241,770		—		241,770
Selling, general and administrative		99,215		10,345		109,560		201,996		21,803		223,799
Segment profit	$	100,867	$	13,610	$	114,477	$	160,631	$	22,549	$	183,180
Acquisition-related costs						3,049						5,971
Depreciation and amortization						21,935						43,005
Foreign exchange loss						151						428
Total operating expenses					$	307,019						594,140
Gain on disposition of property, plant and equipment						175						243
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

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
June 30, 2022	$	215,466	$	143,466	$	71,734	$	36,989	$	16,891	$	484,546
June 30, 2021		183,391		98,690		44,514		55,467		14,299		396,361
Total revenue for the six months ended:
June 30, 2022	$	463,416	$	208,699	$	100,809	$	74,809	$	30,734	$	878,467
June 30, 2021		390,805		147,168		64,077		102,643		23,223		727,916