Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 06, 2016 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Ritchie Bros Auctioneers Inc | |
Entity Central Index Key | 1,046,102 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 106,101,974 |
Condensed Consolidated Income S
Condensed Consolidated Income Statements - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Condensed Consolidated Income Statements [Abstract] | ||
Revenues (note 6) | $ 131,945 | $ 115,618 |
Costs of services, excluding depreciation and amortization (note 7) | 15,313 | 11,609 |
Gross revenue, net of expenses | 116,632 | 104,009 |
Selling, general and administrative expenses (note 7) | 68,307 | 63,756 |
Depreciation and amortization expenses (note 7) | 10,080 | 10,616 |
Gain on disposition of property, plant and equipment | (246) | (175) |
Foreign exchange gain | (683) | (3,207) |
Operating income | 39,174 | 33,019 |
Interest income | 498 | 847 |
Interest expense | (1,363) | (1,269) |
Equity income (note 18) | 519 | 233 |
Other, net | 698 | 713 |
Other income (expense) | 352 | 524 |
Income before income taxes | 39,526 | 33,543 |
Income tax expense (recovery) (note 8): | ||
Current | 10,009 | 10,713 |
Deferred | (477) | (1,280) |
Income tax expense | 9,532 | 9,433 |
Net income | 29,994 | 24,110 |
Net income attributable to: | ||
Stockholders | 29,406 | 23,777 |
Non-controlling interests | $ 588 | $ 333 |
Earnings per share attributable to stockholders (note 10): | ||
Basic | $ 0.28 | $ 0.22 |
Diluted | $ 0.27 | $ 0.22 |
Weighted average number of shares outstanding (note 10): | ||
Basic | 106,917,280 | 107,484,944 |
Diluted | 107,159,010 | 107,807,948 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Condensed Consolidated Statements of Comprehensive Income [Abstract] | ||
Net income | $ 29,994 | $ 24,110 |
Other comprehensive income (loss), net of income tax: | ||
Foreign currency translation adjustment | 12,195 | (28,298) |
Total comprehensive income (loss) | 42,189 | (4,188) |
Total comprehensive income (loss) attributable to: | ||
Stockholders | 41,434 | (4,335) |
Non-controlling interests | $ 755 | $ 147 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 294,074 | $ 210,148 |
Restricted cash | 117,944 | 83,098 |
Trade and other receivables | 131,098 | 59,412 |
Inventory (note 13) | 29,452 | 58,463 |
Advances against auction contracts | 3,750 | 4,797 |
Prepaid expenses and deposits | 11,692 | 11,057 |
Assets held for sale (note 14) | 631 | 629 |
Income taxes receivable | 8,592 | 2,495 |
Total Current Assets | 597,233 | 430,099 |
Property, plant and equipment (note 15) | 535,864 | 528,591 |
Equity-accounted investments (note 18) | 7,081 | 6,487 |
Other non-current assets | 3,556 | 3,369 |
Intangible assets (note 16) | 65,400 | 46,973 |
Goodwill (note 17) | 111,569 | 91,234 |
Deferred tax assets | 14,815 | 13,362 |
Total Assets | 1,335,518 | 1,120,115 |
Current liabilities: | ||
Auction proceeds payable | 289,103 | 101,215 |
Trade and other payables | 130,368 | 120,042 |
Income taxes payable | 1,190 | 13,011 |
Short-term debt (note 19) | 42,504 | 12,350 |
Current portion of long-term debt (note 19) | 46,132 | 43,348 |
Total Current Liabilities | 509,297 | 289,966 |
Long-term debt (note 19) | 56,143 | 54,567 |
Share unit liabilities | 3,188 | 5,633 |
Other non-current liabilities | 8,803 | 6,735 |
Deferred tax liabilities | 35,392 | 31,070 |
Total Liabilities | $ 612,823 | $ 387,971 |
Contingencies (note 22) | ||
Contingently redeemable non-controlling interest (note 9) | $ 41,444 | $ 24,785 |
Share capital: | ||
Common shares; no par value, unlimited shares authorized, issued and outstanding shares: 105,885,660 (December 31, 2015: 107,200,470) | 98,613 | 131,530 |
Additional paid-in capital | 27,969 | 27,728 |
Retained earnings | 594,986 | 601,051 |
Accumulated other comprehensive income | (45,105) | (57,133) |
Shareholders' equity | 676,463 | 703,176 |
Non-controlling interest | 4,788 | 4,183 |
Total Equity | 681,251 | 707,359 |
Total Liabilities and Equity | $ 1,335,518 | $ 1,120,115 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
Condensed Consolidated Balance Sheets [Abstract] | ||
Common shares, no par value | ||
Common shares, issued shares | 105,885,660 | 107,200,470 |
Common shares, outstanding shares | 105,885,660 | 107,200,470 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Changes in Equity - 3 months ended Mar. 31, 2016 - USD ($) $ in Thousands | Common stock [Member] | Additional paid-In capital [Member] | Retained earnings [Member] | Accumulated other comprehensive income (loss) [Member] | Non-controlling interest [Member] | Total |
Balance at Dec. 31, 2015 | $ 131,530 | $ 27,728 | $ 601,051 | $ (57,133) | $ 4,183 | $ 707,359 |
Balance, shares at Dec. 31, 2015 | 107,200,470 | |||||
Net income | 29,406 | 117 | 29,523 | |||
Other comprehensive income | 12,028 | 12,028 | ||||
Comprehensive income | 29,406 | 12,028 | 117 | 41,551 | ||
Change in value of redeemable non-controlling interest | (18,317) | (18,317) | ||||
Stock option exercises | $ 3,809 | (778) | 3,031 | |||
Stock option exercises, shares | 145,190 | |||||
Stock option tax adjustment | (51) | (51) | ||||
Stock option compensation expense (note 21) | 1,070 | 1,070 | ||||
Non-controlling interest acquired in a business combination (note 23) | 488 | 488 | ||||
Shares repurchased (note 20) | $ (36,726) | (36,726) | ||||
Shares repurchased, shares | (1,460,000) | |||||
Cash dividends paid (note 20) | (17,154) | (17,154) | ||||
Balance at Mar. 31, 2016 | $ 98,613 | $ 27,969 | $ 594,986 | $ (45,105) | $ 4,788 | 681,251 |
Balance, shares at Mar. 31, 2016 | 105,885,660 | |||||
Contingently redeemable non-controlling interest, Balance at Dec. 31, 2015 | 24,785 | |||||
Net income | 471 | |||||
Other comprehensive income | 167 | |||||
Comprehensive Income attributable redeemable non-controlling interests | 638 | |||||
Change in value of contingently redeemable non-controlling interest | 18,317 | |||||
Cash dividends paid (note 20) | (2,296) | |||||
Contingently redeemable non-controlling interest, Balance at Mar. 31, 2016 | $ 41,444 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating activities: | ||
Net income | $ 29,994 | $ 24,110 |
Adjustments for items not affecting cash: | ||
Depreciation and amortization expenses | 10,080 | 10,616 |
Inventory write down (note 13) | 60 | |
Stock option compensation expense (note 21) | 1,070 | 723 |
Deferred income tax recovery | (477) | (1,280) |
Equity income less dividends received | (519) | (233) |
Unrealized foreign exchange gain | (621) | (996) |
Gain on disposition of property, plant and equipment | (246) | (175) |
Net changes in operating assets and liabilities (note 11) | 94,733 | 77,409 |
Net cash provided by operating activities | 134,014 | 110,234 |
Investing activities: | ||
Acquisition of Mascus (note 23) | (27,812) | |
Property, plant and equipment additions | (2,444) | (3,327) |
Intangible asset additions | (3,711) | (2,419) |
Proceeds on disposition of property, plant and equipment | 824 | 773 |
Other, net | (173) | |
Net cash used in investing activities | (33,316) | (4,973) |
Financing activities: | ||
Issuances of share capital | 3,031 | 4,421 |
Share repurchase (note 20) | (36,726) | (47,489) |
Dividends paid to stockholders (note 20) | (17,154) | (15,089) |
Dividends paid to contingently redeemable non-controlling interests | (2,296) | (1,340) |
Proceeds from short-term debt | 30,179 | |
Repayment of short-term debt | (2,283) | (185) |
Repayment of finance lease obligations | (493) | (532) |
Other, net | 32 | (105) |
Net cash used in financing activities | (25,710) | (60,319) |
Effect of changes in foreign currency rates on cash and cash equivalents | 8,938 | (8,497) |
Increase in cash and cash equivalents | 83,926 | 36,445 |
Cash and cash equivalents, beginning of year | 210,148 | 139,815 |
Cash and cash equivalents, end of year | $ 294,074 | $ 176,260 |
General Information
General Information | 3 Months Ended |
Mar. 31, 2016 | |
General Information [Abstract] | |
General Information | 1. General information Ritchie Bros. Auctioneers Incorporated and its subsidiaries (collectively referred to as the “Company”) provide asset management and disposition services for the construction, agricultural, transportation, energy, mining, forestry, material handling, marine and real estate industries through its unreserved auctions, online marketplace services, value-added services and listing and software services. Ritchie Bros. Auctioneers Incorporated is a company incorporated in Canada under the Canada Business Corporations Act, whose shares are publicly traded on the Toronto Stock Exchange (“TSX”) and the New York Stock Exchange (“NYSE”) . |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant accounting policies (a) Basis of preparation These unaudited condensed consolidated interim financial statements have been prepared in accordance with United States generally accepted accounting principles (“US GAAP”). They include the accounts of Ritchie Bros. Auctioneers Incorporated and its subsidiaries (collectively referred to as the “Company”) from their respective dates of formation or acquisition. All significant intercompany balances and transactions have been eliminated. Certain information and footnote disclosure required by US GAAP for complete annual financial statements have been omitted and, therefore, these condensed consolidated interim financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2015, included in the Company’s Annual Report on Form 10-K, filed with the Securities Exchange Commission (“SEC”). A selection of the accounting policies for which there has been a change since the annual consolidated financial statements are set out below. In the opinion of management, these unaudited condensed consolidated interim financial statements reflect all adjustments, consisting of normal recurring adjustments, which are necessary to present fairly, in all material respects, the Company’s consolidated financial position, results of operations, cash flows and changes in equity for the interim periods presented. The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Previously, the Company prepared its consolidated financial statements under International Financial Reporting Standards (“IFRS”) as permitted by securities regulators in Canada, as well as in the United States under the status of a Foreign Private Issuer as defined by the United States SEC. At the end of the second quarter of 2015, the Company determined that it no longer qualified as a Foreign Private Issuer under the SEC rules. As a result, beginning January 1, 2016 the Company was required to report with the SEC on domestic forms and comply with domestic company rules in the United States. The transition to US GAAP was made retrospectively for all periods from the Company’s inception. (b) Revenue recognition Revenues are comprised of: · commissions earned at our auctions through the Company acting as an agent for consignors of equipment and other assets, as well as commissions on online marketplace sales, and · fees earned in the process of conducting auctions through all our auction channels and from value-added services, as well as subscription revenues from our listing and software services. · 2. Significant accounting policies (continued) (b) Revenue recognition (continued) The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable, and collectability is reasonably assured. For auction or online marketplace sales, revenue is recognized when the auction or online marketplace sale is complete and the Company has determined that the sale proceeds are collectible. Revenue is measured at the fair value of the consideration received or receivable and is shown net of value-added tax and duties. Commissions from sales at our auctions represent the percentage earned by the Company on the gross auction proceeds from equipment and other assets sold at auction. The majority of commissions are earned as a pre-negotiated fixed rate of the gross selling price. Other commissions from sales at our auctions are earned from underwritten commission contracts, when the Company guarantees a certain level of proceeds to a consignor or purchases inventory to be sold at auction. Commissions also include those earned on online marketplace sales. Commissions from sales at auction The Company accepts equipment and other assets on consignment or takes title for a short period of time prior to auction, stimulates buyer interest through professional marketing techniques, and matches sellers (also known as consignors) to buyers through the auction or private sale process. In its role as auctioneer, the Company matches buyers to sellers of equipment on consignment, as well as to inventory held by the Company, through the auction process. Following the auction, the Company invoices the buyer for the purchase price of the property, collects payment from the buyer, and where applicable, remits to the consignor the net sale proceeds after deducting its commissions, expenses and applicable taxes. Commissions are calculated as a percentage of the hammer price of the property sold at auction. On the fall of the auctioneer’s hammer, the highest bidder becomes legally obligated to pay the full purchase price, which is the hammer price of the property purchased and the seller is legally obligated to relinquish the property in exchange for the hammer price less any seller’s commissions. Commission revenue is recognized on the date of the auction sale upon the fall of the auctioneer’s hammer, which is the point in time when the Company has substantially accomplished what it must do to be entitled to the benefits represented by the commission revenue. Subsequent to the date of the auction sale, the Company’s remaining obligations for its auction services relate only to the collection of the purchase price from the buyer and the remittance of the net sale proceeds to the seller. Under the standard terms and conditions of its auction sales, the Company is not obligated to pay a consignor for property that has not been paid for by the buyer, provided that the property has not been released to the buyer. In the rare event where a buyer refuses to take title of the property, the sale is cancelled in the period in which the determination is made, and the property is returned to the consignor. Historically, cancelled sales have not been material in relation to the aggregate hammer price of property sold at auction. Commission revenues are recorded net of commissions owed to third parties, which are principally the result of situations when the commission is shared with a consignor or with the counterparty in an auction guarantee risk and reward sharing arrangement. Additionally, in certain situations, commissions are shared with third parties who introduce the Company to consignors who sell property at auction. 2. Significant accounting policies (continued) (b) Revenue recognition (continued) Underwritten commission contracts can take the form of guarantee or inventory contracts. Guarantee contracts typically include a pre-negotiated percentage of the guaranteed gross proceeds plus a percentage of proceeds in excess of the guaranteed amount. If actual auction proceeds are less than the guaranteed amount, commission is reduced; if proceeds are sufficiently lower, the Company can incur a loss on the sale. Losses, if any, resulting from guarantee contracts are recorded in the period in which the relevant auction is completed. If a loss relating to a guarantee contract held at the period end to be sold after the period end is known or is probable and estimable at the financial statement reporting date, the loss is accrued in the financial statements for that period. The Company’s exposure from these guarantee contracts fluctuates over time (note 22). Revenues related to inventory contracts are recognized in the period in which the sale is completed, title to the property passes to the purchaser and the Company has fulfilled any other obligations that may be relevant to the transaction, including, but not limited to, delivery of the property. Revenue from inventory sales is presented net of costs within revenues on the income statement, as the Company takes title only for a short period of time and the risks and rewards of ownership are not substantially different than the Company’s other underwritten commission contracts. Fees Fees earned in the process of conducting our auctions include administrative, documentation, and advertising fees. Fees from value-added services include financing and technology service fees. Fees also subscription revenues from our listing and software services, as well as amounts paid by buyers (a “buyer’s premium”) on online marketplace sales. Fees are recognized in the period in which the service is provided to the customer. (c) Costs of s ervices, excluding depreciation and amortization expenses Costs of services are comprised of expenses incurred in direct relation to conducting auctions (“direct expenses”), earning online marketplace revenues, and earning other fee revenues. Direct expenses include direct labour, buildings and facilities charges, and travel, advertising and promotion costs. Costs of services incurred to earn online marketplace revenues include i nventory m anagement, referral, inspection, sampling, and appraisal fees . Costs of services incurred in earning other fee revenues include direct labour (including commissions on sales), software maintenance fees, and materials. Costs of services exclude depreciation and amortization expenses. In comparative periods, costs of services consisted entirely of direct expenses. As a result of the Xcira LLC (“Xcira”) and Mascus International Holdings BV (“Mascus”) acquisitions, significant other costs of services are now incurred in earning our revenues (note 23) . (d) N ew and amended accounting standards (i) Effective January 1, 2016, the Company adopted Accounting Standards Update (“ASU”) 2015-16, Business Combinations (Topic 805), Simplifying the Accounting for Measurement-Period Adjustments , which requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The adoption of this standard did not have an impact on the Company’s consolidated financial statements with respect to the acquisition of Xcira (note 23(b)) as no adjustments to provisional amounts were identified during the measurement period. With respect to the Mascus a cquisition (note 23(a)), the Company is still in the measurement period, and has not yet identified any adjustments to provisional amounts. 2. Significant accounting policies (continued) (d) New and amended accounting standards (continued) (ii) Effective January 1, 2016, the Company adopted A SU 2015-05 , Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) , Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement , which provide s clarity around a customer’s accounting for fees paid i n a cloud computing arrangement . The amendments in ASU 2015-05 add guidance to assist customers in determining whether a cloud c omputing arrangement includes a software license. Software license elements of cloud computing arrangements are accounted for consistent with the acquisition of other intangible asset licenses. Where there is no software license element, the cloud computing arrangement is accounted for as a service contract. The standard was applied prospectively and did not have an impact on the Company’s consolidated financial statements. (iii) Effective January 1, 2016, the Company adopted A SU 2015-02 , Consolidation (Topic 810), Amendments to the Consolidation Analysis , which changes the evaluation of whether limited partnerships and similar legal entities are variable interest entities (“VIEs”), and eliminates the presumption that a general partner should consolidate a limited partnership that is a voting interest entity. The new guidance also alters the analysis for determining when fees paid to a decision maker or service provider represent a variable interest in a VIE and how interests of related parties affect the primary beneficiary determination. The adoption of this standard did not have an impact on the Company’s consolidated financial statements. (iv) Effective January 1, 2016, the Company adopted A SU 2014-12 , Compensation – Stock Compensation (Topic 718), Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period , which requires that a performance target that (1) affects vesting of an award, and (2) could be achieved after the requisite service period of the employee be treated as a performance condition. The adoption of this standard did not have an impact on the Company’s consolidated financial statements. (e) Recent accounting standards not yet adopted (i) In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which requires lessees to recognize almost all leases, including operating leases, on the balance sheet through a right-of-use asset and a corresponding lease liability. For short-term leases, defined as those with a term of 12 months or less, the lessee is permitted to make an accounting policy election not to recognize the lease assets and liabilit ies, and instead recognize the lease expense generally on a straight-line basis over the lease term. The accounting treatment under this election is consistent with current operating lease accounting. No extensive amendments were made to lessor accounting, but amendments of note include changes to the definition of initial direct costs and accounting for collectability uncertainties in a lease. ASU 2016-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. Both lessees and lessors must apply ASU 2016-02 using a “modified retrospective transition”, which reflects the new guidance from the beginning of the earliest period presented in the financial statements. However, lessees and lessors can elect to apply certain practical expedients on transition. The Company is evaluating the new guidance to determine the impact it will have on its consolidated financial statements. (ii) In January 2016 , the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities , the f irst of three standards related to financial instrument accounting. The amendments of ASU 2016-01 require equity method investments (except for equity-method accounted investments and those resulting in consolidation of the investee) to be measured at fair value with changes recognized in net income. For equity investments that do not have readily determinable fair values, the entity may elect to measure the investmen t at cost less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer . 2. Significant accounting policies (continued) ( e ) Recent accounting standards not yet adopted (continued) The Company is evaluating the new guidance to determine the impact it will have on its consolidated financial statements. The amendments also: · Simplify the impairment assessment of equity investments that do not have readily determinable fair values, by requiring a qualitative assessment to identify impairment. The entity is only required to measure the investment at fair value if the qualitative assessment indicates that impairment exists. · Eliminate the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. · Require the exit price notion to be used when measuring the fair value of financial instruments for disclosure purposes. · Require separate presentation of financial assets and liabilities by measurement category and form of financial asset (i.e. securities or loans & receivables) on the balance sheet or the accompanying notes to the financial statements. ASU 2016-01 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is only permitted for the provisions under ASU 2016-01 related to the recognition of changes in fair value of financial liabilities. The Company is evaluating the new guidance to determine the impact it will have on its consolidated financial statements. (iii) In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In particular, it moves away from the current industry and transaction specific requirements. ASU 2014-09 creates a five-step model that requires entities to exercise judgment when considering the terms of the contract(s) which inclu d e: 1. Identifying the contract(s) with the customer, 2. Identifying the separate performance obligations in the contract, 3. Determining the transaction price, 4. Allocating the transaction price to the separate performance obligations, and 5. Recognizing revenue as each performance obligation is satisfied. The amendments also contain extensive disclosure requirements designed to enable users of the financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In July 2015, the FASB delayed the effective date of ASU 2014-09 by one year so that ASU 2014-09 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company is evaluating the new guidance to determine the impact it will have on its consolidated financial statements. 2. Significant accounting policies (continued) ( e ) Recent accounting standards not yet adopted (continued) (iv) In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606), Principal versus Agent Considerations (Reporting Revenue Gross versus Net . The amendments in ASU 2016-08 clarify the implementation guidance on principal versus agent considerations, focusing on whether an entity controls a specified good or service before that good or service is transferred to a customer. Where such control exists – i.e. where the entity is required to provide the specified good or service itself – the entity is a ‘principal’. Where the entity is required to arrange for another party to provide the good or service, it is an agent. The effective date and transition requirements of ASU 2016-08 are the same as for ASU 2014-09, which is for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company is evaluating the new guidance to determine the impact it will have on its consolidated financial statements. (v) In March 2016, the FASB issued ASU No. 2016-09, "Compensation—Stock Compensation (Topic 718)." This standard makes several modifications to Topic 718 related to the accounting for forfeitures, employer tax withholding on share-based compensation and the financial statement presentation of excess tax benefits or deficiencies. ASU 2016-09 also clarifies the statement of cash flows presentation for certain components of share-based awards. The standard is effective for interim and annual reporting periods beginning after December 15, 2016, although early adoption is permitted. The Company is evaluating how the adoption of this stan dard will impact its c onsolidated f inancial s tatements |
Significant Judgments, Estimate
Significant Judgments, Estimates and Assumptions | 3 Months Ended |
Mar. 31, 2016 | |
Significant Judgments, Estimates and Assumptions [Abstract] | |
Significant Judgments, Estimates and Assumptions | 3. Significant judgments, estimates and assumptions The preparation of financial statements in conformity with US GAAP requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Future differences arising between actual results and the judgments, estimates and assumptions made by the Company at the reporting date, or future changes to estimates and assumptions, could necessitate adjustments to the underlying reported amounts of assets, liabilities, revenues and expenses in future reporting periods. Judgments, estimates and underlying assumptions are evaluated on an ongoing basis by management, and are based on historical experience and other factors including expectations of future events that are believed to be reasonable under the circumstances. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstance and such changes are reflected in the assumptions when they occur. Significant estimates include the estimated useful lives of long-lived assets, as well as valuation of goodwill, underwritten commission contracts, contingently redeemable non-controlling interest and share-based compensation. |
Seasonality of Operations
Seasonality of Operations | 3 Months Ended |
Mar. 31, 2016 | |
Seasonality of Operations [Abstract] | |
Seasonality of Operations | 4. Seasonality of operations The Company's operations are both seasonal and event driven. Revenues tend to be highest during the second and fourth calendar quarters. The Company generally conducts more auctions during these quarters than during the first and third calendar quarters. Late December through mid-February and mid-July through August are traditionally less active periods. |
Segmented Information
Segmented Information | 3 Months Ended |
Mar. 31, 2016 | |
Segmented Information [Abstract] | |
Segmented Information | 5 . Segment ed i nformation The Company’s principal business activity is the sale of industrial equipment and other assets at auctions. The Company’s operations are comprised of one reportable segment and other business activities that are not reportable as follows: · Core Auction segment, a network of auction locations that conduct live, unreserved auctions with both on-site and online bidding; and · Other includes the results of the Company’s EquipmentOne and Mascus online services, which are not material to the Company’s consolidated financial statements. During the three months ended March 31, 201 6, the Company acquired Mascus and has updated its segment reporting such that the results of EquipmentOne and Mascus (subsequent to acquisition in February 2016) are reported as “Other.” The C hief Operating Decision Maker evaluates segment performance based on earnings (loss) from operations. The significant non-cash item included in segment earnings (loss) from operations is depreciation and amortization. Core Three months ended March 31, 2016 Auction Other Consolidated Revenues $ 127,340 $ 4,605 $ 131,945 Costs of services, excluding depreciation and amortization (14,785) (528) (15,313) Selling, general and administrative expenses (64,820) (3,487) (68,307) Depreciation and amortization expenses (9,304) (776) (10,080) 38,431 $ (186) $ 38,245 Gain on disposition of property, plant and equipment 246 Foreign exchange gain 683 Operating income $ 39,174 Equity income 519 Other and income tax expenses (9,699) Net income $ 29,994 Core Three months ended March 31, 2015 Auction Other Consolidated Revenues $ 112,645 $ 2,973 $ 115,618 Costs of services, excluding depreciation and amortization (11,609) - (11,609) Selling, general and administrative expenses (60,598) (3,158) (63,756) Depreciation and amortization expenses (9,696) (920) (10,616) $ 30,742 $ (1,105) $ 29,637 Gain on disposition of property, plant and equipment 175 Foreign exchange gain 3,207 Operating income $ 33,019 Equity income 233 Other and income tax expenses (9,142) Net income $ 24,110 |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2016 | |
Revenues [Abstract] | |
Revenues | 6 . Revenues The Company’s revenue from the rendering of services is as follows: Three months ended March 31, 2016 2015 Commissions $ 99,793 $ 93,140 Fees 32,152 22,478 $ 131,945 $ 115,618 Net profits on inventory sales included in commissions are: Three months ended March 31, 2016 2015 Revenue from inventory sales $ 124,557 $ 153,281 Cost of inventory sold (111,536) (138,578) $ 13,021 $ 14,703 |
Operating Expenses
Operating Expenses | 3 Months Ended |
Mar. 31, 2016 | |
Operating Expenses [Abstract] | |
Operating Expenses | 7 . Operating expenses Costs of services, excluding depreciation and amortization Three months ended March 31, 2016 2015 Employee compensation expenses $ 6,258 $ 4,598 Buildings, facilities and technology expenses 2,295 1,614 Travel, advertising and promotion expenses 5,937 4,154 Other costs of services 823 1,243 $ 15,313 $ 11,609 Selling, general and administrative (“SG&A”) ex penses Three months ended March 31, 2016 2015 Employee compensation expenses $ 44,490 $ 41,729 Buildings, facilities and technology expenses 11,236 10,046 Travel, advertising and promotion expenses 5,562 6,081 Professional fees 3,452 3,100 Other SG&A expenses 3,567 2,800 $ 68,307 $ 63,756 Depreciation and amortization expenses Three months ended March 31, 2016 2015 Depreciation expense $ 7,783 $ 9,280 Amortization expense 2,297 1,336 $ 10,080 $ 10,616 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | 8 . Income taxes At the end of each interim period, the Company estimate s the effective tax rate expected to be applicable for the full fiscal year. The estimate reflects, among other items, our best estimate of operating results. It does not include the estimated impact of foreign exchange rates or unusual and/or infrequent items, which may cause significant variations in the customary relationship between income tax expense and income before income taxes. The C ompany’s consolidated effective tax rate in respect of operations for the three mont hs ended March 31, 2016 was 24.1% (2015: 28.1% ). |
Contingently Redeemable Non-con
Contingently Redeemable Non-controlling Interest in Ritchie Bros. Financial Services | 3 Months Ended |
Mar. 31, 2016 | |
Contingently Redeemable Non-controlling Interest in Ritchie Bros. Financial Services [Abstract] | |
Contingently Redeemable Non-controlling Interest in Ritchie Bros. Financial Services | 9 . Contingently redeemable non-controlling interest in Ritchie Bros. Financial Services The Company holds a 51% interest in Ritchie Bros. Financial Services (”RBFS”), an entity that provides loan origination services to enable the Company’s auction customers to obtain financing from third party lenders. As a result of the Company’s involvement with RBFS, the Company is exposed to risks related to the recovery of the net assets of RBFS as well as liquidit y risks associated with the put option discussed below. The Company has determined RBFS is a variable interest entity because the Company provides subordinated financial support to RBFS and because the Company’s voting interest is disproportionately low in relation to its economic interest in RBFS while substantially all the activities of RBFS involve or are conducted on behalf of the Company. The Company has determined it is the primary beneficiary of RBFS as it is part of a related party group that has the power to direct the activities that most significantly impact RBFS’s economic performance, and although no individual member of that group has such power, the Company represents the member of the related party group that is most closely associated with RBFS . The Company and the non-controlling interest (“NCI”) holders each hold options pursuant to which the Company may acquire, or be required to acquire, the NCI holders’ 49% interest in RBFS. These call and put options became exercisable on April 6, 2016. As a result of the existence of the put option, the NCI is accounted for as a contingently redeemable equity instrument (the “contingently redeemable NCI”). At all reporting periods presented , the Company determined that redemption was probable and measured the carrying value of the contingently redeemable NCI at its estimated redemption value. The NCI can be redeemed at a purchase price to be determined through an independent appraisal process conducted in accordance with the terms of the agreement, or at a negotiated price (the “redemption value”) and therefore, the redemption value on exercise may materially differ from the redemption value as at March 31, 2016 . The Company has the option to elect to pay the purchase price in either cash or shares of the Company, subject to the Company obtaining all relevant security exchange and regulatory consents and approvals. The redemption value of the contingently redeemable NCI was estimated to be $41,444,000 at March 31, 2016. During the first quarter of 2016, the Company commenced price negotiations with the NCI holders , which are still in progress. As a result, the Company has recorded the contingently redeemable NCI at the estimated redemption value based on the status of these negotiations. The estimation of redemption value required management to make significant judgments, estimates, and assumptions as of the reporting date. |
Earnings Per Share Attributable
Earnings Per Share Attributable to Stockholders | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share Attributable to Stockholders [Abstract] | |
Earnings Per Share Attributable to Stockholders | 10 . E arnings per shar e attributable to stockholders Net income attributable Per share Three months ended March 31, 2016 to stockholders Shares amount Basic $ 29,406 106,917,280 $ 0.28 Effect of dilutive securities: Stock options - 241,730 (0.01) Diluted $ 29,406 107,159,010 $ 0.27 Net income attributable Per share Three months ended March 31, 2015 to stockholders Shares amount Basic $ 23,777 107,484,944 $ 0.22 Effect of dilutive securities: Stock options - 323,004 - Diluted $ 23,777 107,807,948 $ 0.22 For the q uarter ended March 31, 2016 , stock options to purchase 2,980,470 common shares were outstanding but were excluded from the calculation of diluted earnings per share as they were anti-dilutive ( 2015 : 438,358 ). |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | 11. Supplemental cash flow information Three months ended March 31, 2016 2015 Restricted cash $ (31,661) $ (35,335) Trade and other receivables (67,653) (51,577) Inventory 30,476 13,839 Advances against auction contracts 1,048 18,301 Prepaid expenses and deposits 278 (823) Income taxes receivable (6,097) (431) Auction proceeds payable 184,437 149,813 Trade and other payables 4,113 (15,001) Income taxes payable (12,305) (4,910) Share unit liabilities (2,358) 741 Other (5,545) 2,792 Net changes in operating assets and liabilities $ 94,733 $ 77,409 11. Supplemental cash flow information (continued) Three months ended March 31, 2016 2015 Interest paid, net of interest capitalized $ 1,393 $ 1,302 Interest received 498 847 Net income taxes paid 27,172 15,551 Non-cash transactions: Non-cash purchase of property, plant and equipment under capital lease 361 - |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Measurement [Abstract] | |
Fair Value Measurement | 1 2 . Fair value measurement A ll assets and liabilities for which fair value is measured or disclosed in the condensed consolidated financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement or disclosure: ● Level 1: U nadjusted quoted prices in active markets for identical assets or liabilities that the entity can access at measurement date; ● Level 2: I nputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly; and ● Level 3: U nobservable inputs for the asset or liability. March 31, 2016 December 31, 2015 Category Carrying amount Fair value Carrying amount Fair value Fair vales disclosed, recurring: Cash and cash equivalents Level 1 $ 294,074 $ 294,074 $ 210,148 $ 210,148 Restricted cash Level 1 117,944 117,944 83,098 83,098 Short-term debt (note 19) Level 2 42,504 42,504 12,350 12,350 Current portion of long- term debt (note 19) Level 2 46,132 46,132 43,348 43,348 Long-term debt (note 19) Level 2 56,143 58,318 54,567 56,126 The carrying value of the Company‘s cash and cash equivalents, restricted cash, trade and other current receivables, advances against auction contracts, auction proceeds payable, trade and other payables, and current borrowings approximate their fair values due to their short terms to maturity. The fair values of non-current borrowings are determined through the calculation of each liability‘s present value using market rates of interest at period close . |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2016 | |
Inventory [Abstract] | |
Inventory | 13 . Inventory At each period end , inventory is reviewed to ensure that it is recorded at the lower of cost and net realizable value. No write down was recorded d uring the three months ended March 31, 2016 ( 2015 : $60,000 ). Of inventory held at March 31, 2016 , 94% is expected to be sold prior to the end of July 2016 , with the remainder to be sold by the end of October 2016 ( December 31, 2015 : 91% sold by the end of March 2016 with the remainder to be sold by the end of June 2016). |
Assets Held For Sale
Assets Held For Sale | 3 Months Ended |
Mar. 31, 2016 | |
Assets Held For Sale [Abstract] | |
Assets Held For Sale | 14 . Assets held for sale Balance, December 31, 2015 $ 629 Other 2 Balance, March 31, 2016 $ 631 As at March 31, 2016 , the Company’s assets held for sale consisted of land located in Denver, United States, and Orlando, United States, representing excess auction site acreage. Management made the strategic decision to sell this excess acreage to maximize the Company’s return on invested capital. T he properties are being actively marketed for sale through an independent real estate broker, and management expects the sales to be completed within 12 months of March 31, 2016 . These land assets belong to the Core Auction reportable segment. |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 15 . Property, plant and equipment As at March 31, 2016 Cost Accumulated depreciation Net book value Land and improvements $ 366,245 $ (57,091) $ 309,154 Buildings 260,840 (86,215) 174,625 Yard and automotive equipment 60,222 (39,401) 20,821 Computer software and equipment 64,900 (55,458) 9,442 Office equipment 23,204 (16,457) 6,747 Leasehold improvements 21,731 (12,870) 8,861 Assets under development 6,214 - 6,214 $ 803,356 $ (267,492) $ 535,864 As at December 31, 2015 Cost Accumulated depreciation Net book value Land and improvements $ 356,905 $ (54,551) $ 302,354 Buildings 254,760 (82,100) 172,660 Yard and automotive equipment 59,957 (38,848) 21,109 Computer software and equipment 60,586 (50,754) 9,832 Office equipment 22,432 (15,660) 6,772 Leasehold improvements 20,893 (12,160) 8,733 Assets under development 7,131 - 7,131 $ 782,664 $ (254,073) $ 528,591 |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 1 6 . Intangible assets As at March 31, 2016 Cost Accumulated amortization Net book value Trade names and trademarks $ 5,011 $ - $ 5,011 Customer relationships 32,929 (7,724) 25,205 Software 29,555 (7,898) 21,657 Software under development 13,527 - 13,527 $ 81,022 $ (15,622) $ 65,400 As at December 31, 2015 Cost Accumulated amortization Net book value Trade names and trademarks $ 800 $ - $ 800 Customer relationships 22,800 (7,097) 15,703 Software 23,269 (5,848) 17,421 Software under development 13,049 - 13,049 $ 59,918 $ (12,945) $ 46,973 During the three months ended March 31, 2016 , interest of $80,000 (2015: $301,000 ) was capitalized to the cost of software under development. These interest costs relating to qualifying assets are capitalized at a weighted average rate of 6.39% ( 2015 : 6.39% ). |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | 17 . Goodwill Balance, December 31, 2015 $ 91,234 Additions (note 23) 19,321 Foreign exchange movement 1,014 Balance, March 31, 2016 $ 111,569 |
Equity-Accounted Investments
Equity-Accounted Investments | 3 Months Ended |
Mar. 31, 2016 | |
Equity-Accounted Investments [Abstract] | |
Equity-Accounted Investments | 18. Equity-accounted investments The Company holds a 48% share interest in a group of companies detailed below (together, the Cura Classis entities ), which have common ownership . The Cura Classis entities provide dedicated fleet management services in three jurisdictions to a common customer unrelated to the Company. The Company has determined the Cura Classis entities are variable interest entities and the Company is not the primary beneficiary, as it does not have the power to make any decisions that significantly affect the economic results of the Cura Classis entities. Accordingly, the Company accounts for its investments in the Cura Classis entities following the equity method. 18. Equity accounted investments (continued) A condensed summary of the Company's investments in and advances to equity -accounted investees are as follows (in thousands of U.S. dollars, except percentages): Ownership March 31, December percentage 2016 2015 Cura Classis entities 48% $ 4,081 $ 3,487 Other equity investments 32% 3,000 3,000 7,081 6,487 As a result of the Company’s investments, the Company is exposed to risks associated with the results of operations of the Cura Classis entities. The Company has no other business relationships with the Cura Classis entities. The Company’s maximum risk of loss associated with these entities is the investment carrying amount. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2016 | |
Debt [Abstract] | |
Debt | 1 9 . Debt Carrying value March 31, December 31, 2016 2015 Short-term debt $ 42,504 $ 12,350 Long-term debt: Term loan, denominated in Canadian dollars, unsecured, bearing interest at 4.225% , due in quarterly installments of interest only, with the full amount of the principal due in May 2022 . 26,143 24,567 Term loan, denominated in United States dollars, unsecured, bearing interest at 3.59% , due in quarterly installments of interest only, with the full amount of the principal due in May 2022 . 30,000 30,000 Term loan, denominated in Canadian dollars, unsecured, bearing interest at 6.385% , due in quarterly installments of interest only, with the full amount of the principal due in May 2016 . 46,132 43,348 102,275 97,915 Total debt $ 144,779 $ 110,265 Total long-term debt: Current portion $ 46,132 $ 43,348 Non-current portion 56,143 54,567 $ 102,275 $ 97,915 At March 31, 2016 , the current portion of long-term debt consisted of a Canadian dollar 60,000,000 term loan under the Company’s uncommitted, revolving credit facility. The Company refinanced this term loan on a long-term basis when it fell due on May 4, 2016 by drawing on its committed, revolving credit facility. 19. Debt (continued) Short -term debt at March 31, 2016 is comprised of drawings in different currencies on the Company’s commit ted revolving credit facilities of $314,019,000 ( December 31, 2015 : $312,693,000 ), and have a weight ed average interest rate of 2.00% ( December 31, 2015 : 1.82 % ). |
Equity and Dividends
Equity and Dividends | 3 Months Ended |
Mar. 31, 2016 | |
Equity and Dividends [Abstract] | |
Equity and Dividends | 20 . Equity and dividends Share capital Preferred stock Unlimited number of senior preferred shares, without par value, issuable in series. Unlimited number of junior preferred shares, without par value, issuable in series. All issued shares are fully paid. No preferred shares have been issued. Share repurchase During March 2016, 1,460,000 common shares (2015: 1,900,000 ) were repurchased at a weighted average share price of $25.16 (2015: $24.98 ) per common share. The repurchased shares were cancelled on March 15, 2016 (2015: March 26, 2015). Dividends Declared and paid The Company declared and paid the following dividends during the three months ended March 31, 2016 and 2015 : Declaration date Dividend per share Record date Total dividends Payment date Fourth quarter 2015 January 15, 2016 $ 0.1600 February 12, 2016 $ 17,154 March 4, 2016 Fourth quarter 2014 January 12, 2015 $ 0.1400 February 13, 2015 $ 15,089 March 6, 2015 Declared and undistributed Subsequent to March 31, 2016, the Company’s Board of Directors declared a quarterly dividend of $ 0.16 cents per common share, payable on June 14, 2016 to stockholders of record on May 24, 2016 . This dividend payable has not been recognized as a liability in the financial statements. The payment of this dividend will not have any tax consequence for the Company. Foreign currency translation reserve Foreign currency translation adjustments for the three months ended March 31, 2016 include intra-entity foreign currency transactions that are of a long-term investment nature which generated gains of $8,882,000 (2015: losses of $14,453,000 ) |
Share-Based Payments
Share-Based Payments | 3 Months Ended |
Mar. 31, 2016 | |
Share-Based Payments [Abstract] | |
Share-Based Payments | 21 Share-based payments Share-based payments consist of the following compensation costs recognized in selling, general and administrative expenses: Three months ended March 31, 2016 2015 Stock option compensation expense $ 1,070 $ 723 Share unit expense 1,272 1,017 Employee share purchase plan - employer contributions 353 308 $ 2,695 $ 2,048 21. Share-based Payments (continued) Stock option plan The Company has a stock option plan that provides for the award of stock options to selected employees, directors and officers of the Company. Stock option activity for the three months ended March 31, 2016, and the year ended December 31, 2015 is presented below: Weighted Weighted average Common average remaining Aggregate shares under exercise contractual intrinsic option price life (in years) value Outstanding, December 31, 2014 3,897,791 22.09 Granted 880,706 25.50 Exercised (1,412,535) 21.11 $ 9,426 Forfeited (89,884) 23.10 Outstanding, December 31, 2015 3,276,078 23.40 Granted 1,208,121 24.07 Exercised (145,190) 20.88 $ 632 Forfeited (47,968) 24.49 Outstanding, March 31, 2016 4,291,041 $ 23.67 7.7 $ 14,985 Exercisable, March 31, 2016 2,077,964 $ 22.74 5.8 $ 9,028 The fair value of the stock option grants was estimated on the date of the grant using the Black-Scholes option pricing model with the following assumptions: 2016 2015 Risk free interest rate 1.2% 1.8% Expected dividend yield 2.68% 2.21% Expected lives of the stock options 5 years 5 years Expected volatility 26.5% 25.9% Risk free interest rate is the US Treasury Department five year treasury yield curve rate on the date of the grant. Expected dividend yield assumes a continuation of the most recent quarterly dividend payments. Expected life of options is based on the age of the options on the exercise date over the past five years. Expected volatility is based on the historical common share price volatility over the past five years. The compensation expense arising from option grants is amortized over the relevant vesting periods of the underlying options. As at March 31, 2016 , the unrecognized stock-based compensation cost related to the non-vested stock options was $8,107,000 , which is expected to be recognized over a weighted average period of 2.9 years. 21. Share-based Payments (continued) Share unit plans The Company has two performance share unit (“PSU”) plans, a senior executive PSU plan and an employee PSU plan. Under the plans, the number of PSUs that vest is conditional upon specified market and non-market vesting conditions being met. The Company also has restricted share units (“RSUs”) and deferred share units (“DSUs”) plans which are not subject to market vesting conditions. RSU and DSU fair values are estimated using the 20 -day volume weighted average price of the Company’s common shares listed on the New York Stock Exchange. DSUs are granted under the DSU plan to members of the Board of Directors. Share units activity for the three months ended March 31, 2016, and the year ended December 31, 2015 is presented below: Performance share units Restricted share units Deferred share units WA grant WA grant WA grant date fair date fair date fair Number value Number value Number value Outstanding, December 31, 2014 238,573 $ 23.38 403,587 $ 22.32 42,289 $ 22.33 Granted 218,699 24.57 20,528 26.38 29,072 26.07 Vested and settled (6,870) 22.22 (28,887) 22.53 (13,365) 22.34 Forfeited (28,817) 23.23 (62,274) 21.56 - - Outstanding, December 31, 2015 421,585 24.03 332,954 22.70 57,996 24.21 Granted 244,536 23.19 2,214 23.33 5,749 23.40 Vested and settled (28,543) 22.20 (124,226) 22.11 - - Forfeited (28,691) 22.52 (8,127) 22.58 - - Outstanding, March 31, 2016 608,887 $ 23.85 202,815 $ 23.07 63,745 $ 24.14 These PSUs are subject to market vesting conditions and their fair value at grant date was estimated using a binomial model with the following assumptions: 2016 2015 Risk free interest rate 1.2% 1.3% Expected dividend yield 2.49% 2.17% Expected lives of the PSUs 3 years 3 years Expected volatility 29.9% 29.4% Average expected volatility of comparable companies 37.0% 32.8% Employee share purchase plan The Company has an employee share purchase plan that allows all employees that have completed 60 days of service to contribute funds to purchase common shares at the current market value at the time of share purchase. Employees may contribute up to 4% of their salary. The Company will match between 50% and 100% of the employee‘s contributions, depending on the employee‘s length of service with the Company. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Contingencies [Abstract] | |
Contingencies | 22 . Contingencies Legal and other claims The Company is subject to legal and other claims that arise in the ordinary course of its business. The Company does not believe that the results of these claims will have a material effect on the Company’s balance sheet or income statement. Guarantee contracts In the normal course of business, the Company will in certain situations guarantee to a consignor a minimum level of proceeds in connection with the sale at auction of that consignor’s equipment. At March 31, 2016 there was $85,128,000 of industrial assets guaranteed under contract, of which 100% is expected to be sold p rior to the end July 2016 ( December 31, 2015 : $25,267,000 of which 100% is expected to be s old prior to the end of May 2016 ). At March 31, 2016 there was $34,241,000 of agricultural assets guaranteed under contract, of which 100% is expected to be sold prior to the end of August 2016 ( December 31, 2015 : $30,509,000 of which 100% is expected to be sold prior to the end of August 2016 ). The outstanding guarantee amounts are undiscounted and before estimated proceeds from sale at auction. |
Business Combination
Business Combination | 3 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combination | 23 . Business combination (a) Mascus acquisition On February 19, 2016 (the “Mascus Acquisition Date”), the Company acquired 100% of the issued and outstanding shares of Mascus International Holdings BV (“Mascus”), for cash consideration of €26,569,000 (US $29,597,000 ). In addition to cash consideration, €3,080,000 (US $3,432,000 ) is consideration contingent on Mascus achieving certain operating performance targets over next three-year period following the acquisition. Mascus is based in Amsterdam and provides an online equipment listing service for used heavy machines and trucks. The acquisition expands the breadth and depth of equipment disposition and management solutions the Company can offer its customers. The acquisition was accounted for in accordance wit h ASC 805. The assets acquired and liabilities assumed were recorded at their estimated fair values at the Mascus Acquisit ion Date. G oodwill of $19,321,000 was calculated as the fair value of consideration over the estimated fair value of the net assets acquired. 23. Business combination (continued) (a) Mascus acquisition (continued) Mascus provisional purchase price allocation February 19, 2016 Purchase price $ 29,597 Fair value of contingent consideration 3,432 Non-controlling interest (1) 488 Total fair value at Mascus Acquisition Date 33,517 Fair value of assets acquired: Cash and cash equivalents $ 1,785 Trade and other receivables 1,290 Prepaid expenses 453 Property, plant and equipment 104 Intangible assets (2) 14,817 Fair value of liabilities assumed: Trade and other payables 1,533 Other non-current liabilities 37 Deferred tax liabilities 2,683 Fair value of identifiable net assets acquired 14,196 Goodwill acquired on acquisition $ 19,321 (1) The Company acquired 100% of Mascus and within the Mascus group of entit ies there are two subsidiaries that are not wholly-owned. As such, the Company acquired non-controlling interests . The fair value of the non-controlling interest was determined using an income approach based on entity cash flows attributable to non-controlling interest. (2) Intangible assets consist of customers relationships with an amortization period of 17 years and trade names with indefinite lives. The amounts included in the Mascus provisional purchase price allocation are preliminary in nature and are subject to adjustment as additional information is obtained about the facts and circumstances that existed as of the Mascus Acquisition Date. The final determination of the fair values of certain assets and liabilities will be completed within the measurement period of up to one year from the Mascus Acquisition Date. Adjustments to the preliminary values during the measurement period will be recor d ed in the operating results of the period in which the adjustments are determined. Changes to the amounts recorded as assets and liabilities will result in a corresponding adjustment to goodwill. 23. Business combination (continued) (a) Mascus acquisition (continued) Goodwill Goodwill has been allocated entirely to the Mascus reporting unit based on an analysis of the fair value of assets acquired. The main drivers generating goodwill are the anticipated synergies from (1) the Company's core auction expertise and transactional capabilities to Mascus' existing customer base, and (2) Mascus' providing existing technology to the Company's current customer base. Other factors generating goodwill include the acquisition of Mascus' assembled work force and their associated technical expertise. Contributed revenue and net income The results of Mascus’ operations are included in these condensed consolidated financial statements from Mascus’ Acquisition Date. For the period from Fe b ruary 19, 2016 to March 31, 2016 Mascus’ contribution to the Company’s revenues was $1,268,000 . Mascus’ contribution to net income from February 19, 2016 to March 31, 2016 was insignificant . Pro forma results of operations have not been presented as such pro forma financial information would not be materially different from historical results. Contingent Consideration The Company may pay an additional amount not exceeding €3,080,000 (US$3,432,000) contingent upon the achievement of certain operating performance targets over the next three-year period. The Company has recognized a liability equal to the estimated fair value of the contingent payments the Company expects to make as of the acquisition date. The Company will re-measure this liability each reporting period and record changes in the fair value in the consolidated income statement. Transactions recognized separately from the acquisition of assets and assumptions of liabilities Acquisition-related costs Expenses totalling $717,500 for legal and other acquisition-related costs are included in the consolidated income statement for the period ended March 31, 2016. Employee compensation in exchange for continued services The Company may pay additional amounts not exceeding €1,625,000 ( US$1,849,000 ) over three-year periods based on key employees’ continuing employment with Mascus . (b) Xcira acquisition On November 4, 2015 (the “Xcira Acquisition Date”), the Company acquired 75% of the issued and outstanding shares of Xcira LLC (“Xcira”) for cash consideration of $12,359,000 . The remaining 25% interests remain with the two founders of Xcira. Xcira is a Florida-based company, incorporated in the United States and its principal activity is the provision of software and technology solutions to auction companies. By acquiring Xcira, the Company acquired information technology capability and platform to build on its strong online bidding customer experience, and further differentiate itself from other industrial auction companies. The Company has the option to buy out the remaining interest of the Xcira sellers subject to the terms of the Xcira Purchase Agreement. The acquisition was accounted for in accordance with ASC 805. The assets acquired, liabilities assumed, and the non-controlling interest were recorded at their estimated fair values at the Xcira Acquisit ion Date. Full goodwill of $10,659,000 was calculated as the fair value of consideration over the estimated fair value of the net assets acquired. 23. Business combination (continued) (b) Xcira acquisition (continued) Xcira final purchase price allocation November 4, 2015 Purchase price $ 12,359 Non-controlling interest 4,119 Total fair value at Xcira acquisition date 16,478 Assets acquired: Cash and cash equivalents $ 252 Trade and other receivables 1,382 Prepaid expenses 62 Property, plant and equipment 314 Other non-current assets 11 Intangible assets ~ 4,300 Liabilities assumed: Trade and other payables 502 Fair value of identifiable net assets acquired 5,819 Goodwill acquired on acquisition $ 10,659 ~ Consists of existing technology and customer relationships with an amortization life of five and 20 years, respectively There was no contingent consideration under the terms of the acquisition, and as such no acquisition provisions were created. Assets acquired and liabilities assumed At the date of acquisition, the carrying values of the assets and liabilities acquired approximated their fair values, excep t intangible assets, whose fair values were determined using appropriate valuation techniques. Goodwill Goodwill has been allocated entirely to the Company’s Core Auction segment and based on an analysis of the fair value of assets acquired. The main drivers generating goodwill are the Company’s ability to utilize Xcira’s experience to differentiate the Company’s online bidding service from other industrial auction companies, as well as to secure Xcira’s bidding technology. Online bidding represents a significant and growing portion of all bidding conducted at the Company’s auctions. Non-controlling interests The fair value of the 25% non-controlling i nterest in Xcira is estimated to be $4,119,000 . Contributed revenue and net loss The results of Xcira’s operations are included in these condensed consolidated financial statements from the date of acquisition. For the three months ended March 31, 2016, Xcira’s contribution to the Company’s revenues and n et income were $1,251,000 and $469,000 , respectively. Pro forma results of operations have not been presented as such pro forma financial information would not be materially different from historical results. 23. Business combination (continued) (b) Xcira acquisition (continued) Future development of internally-generated software The Company may pay an additional amount not exceeding $2,700,000 over a two -year period upon achievement of certain conditions related to the delivery of an upgrade to its existing technology. Employee compensation in exchange for continued services The Company may pay an additional amount not exceeding $2,000,000 over a three -year period based on the Founder’s continuing employment with Xcira . |
Significant Accounting Polici31
Significant Accounting Policies (Policy) | 3 Months Ended |
Mar. 31, 2016 | |
Significant Accounting Policies [Abstract] | |
Basis of Preparation | (a) Basis of preparation These unaudited condensed consolidated interim financial statements have been prepared in accordance with United States generally accepted accounting principles (“US GAAP”). They include the accounts of Ritchie Bros. Auctioneers Incorporated and its subsidiaries (collectively referred to as the “Company”) from their respective dates of formation or acquisition. All significant intercompany balances and transactions have been eliminated. Certain information and footnote disclosure required by US GAAP for complete annual financial statements have been omitted and, therefore, these condensed consolidated interim financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2015, included in the Company’s Annual Report on Form 10-K, filed with the Securities Exchange Commission (“SEC”). A selection of the accounting policies for which there has been a change since the annual consolidated financial statements are set out below. In the opinion of management, these unaudited condensed consolidated interim financial statements reflect all adjustments, consisting of normal recurring adjustments, which are necessary to present fairly, in all material respects, the Company’s consolidated financial position, results of operations, cash flows and changes in equity for the interim periods presented. The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Previously, the Company prepared its consolidated financial statements under International Financial Reporting Standards (“IFRS”) as permitted by securities regulators in Canada, as well as in the United States under the status of a Foreign Private Issuer as defined by the United States SEC. At the end of the second quarter of 2015, the Company determined that it no longer qualified as a Foreign Private Issuer under the SEC rules. As a result, beginning January 1, 2016 the Company was required to report with the SEC on domestic forms and comply with domestic company rules in the United States. The transition to US GAAP was made retrospectively for all periods from the Company’s inception. |
Revenue Recognition | (b) Revenue recognition Revenues are comprised of: · commissions earned at our auctions through the Company acting as an agent for consignors of equipment and other assets, as well as commissions on online marketplace sales, and · fees earned in the process of conducting auctions through all our auction channels and from value-added services, as well as subscription revenues from our listing and software services. · 2. Significant accounting policies (continued) (b) Revenue recognition (continued) The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable, and collectability is reasonably assured. For auction or online marketplace sales, revenue is recognized when the auction or online marketplace sale is complete and the Company has determined that the sale proceeds are collectible. Revenue is measured at the fair value of the consideration received or receivable and is shown net of value-added tax and duties. Commissions from sales at our auctions represent the percentage earned by the Company on the gross auction proceeds from equipment and other assets sold at auction. The majority of commissions are earned as a pre-negotiated fixed rate of the gross selling price. Other commissions from sales at our auctions are earned from underwritten commission contracts, when the Company guarantees a certain level of proceeds to a consignor or purchases inventory to be sold at auction. Commissions also include those earned on online marketplace sales. Commissions from sales at auction The Company accepts equipment and other assets on consignment or takes title for a short period of time prior to auction, stimulates buyer interest through professional marketing techniques, and matches sellers (also known as consignors) to buyers through the auction or private sale process. In its role as auctioneer, the Company matches buyers to sellers of equipment on consignment, as well as to inventory held by the Company, through the auction process. Following the auction, the Company invoices the buyer for the purchase price of the property, collects payment from the buyer, and where applicable, remits to the consignor the net sale proceeds after deducting its commissions, expenses and applicable taxes. Commissions are calculated as a percentage of the hammer price of the property sold at auction. On the fall of the auctioneer’s hammer, the highest bidder becomes legally obligated to pay the full purchase price, which is the hammer price of the property purchased and the seller is legally obligated to relinquish the property in exchange for the hammer price less any seller’s commissions. Commission revenue is recognized on the date of the auction sale upon the fall of the auctioneer’s hammer, which is the point in time when the Company has substantially accomplished what it must do to be entitled to the benefits represented by the commission revenue. Subsequent to the date of the auction sale, the Company’s remaining obligations for its auction services relate only to the collection of the purchase price from the buyer and the remittance of the net sale proceeds to the seller. Under the standard terms and conditions of its auction sales, the Company is not obligated to pay a consignor for property that has not been paid for by the buyer, provided that the property has not been released to the buyer. In the rare event where a buyer refuses to take title of the property, the sale is cancelled in the period in which the determination is made, and the property is returned to the consignor. Historically, cancelled sales have not been material in relation to the aggregate hammer price of property sold at auction. Commission revenues are recorded net of commissions owed to third parties, which are principally the result of situations when the commission is shared with a consignor or with the counterparty in an auction guarantee risk and reward sharing arrangement. Additionally, in certain situations, commissions are shared with third parties who introduce the Company to consignors who sell property at auction. 2. Significant accounting policies (continued) (b) Revenue recognition (continued) Underwritten commission contracts can take the form of guarantee or inventory contracts. Guarantee contracts typically include a pre-negotiated percentage of the guaranteed gross proceeds plus a percentage of proceeds in excess of the guaranteed amount. If actual auction proceeds are less than the guaranteed amount, commission is reduced; if proceeds are sufficiently lower, the Company can incur a loss on the sale. Losses, if any, resulting from guarantee contracts are recorded in the period in which the relevant auction is completed. If a loss relating to a guarantee contract held at the period end to be sold after the period end is known or is probable and estimable at the financial statement reporting date, the loss is accrued in the financial statements for that period. The Company’s exposure from these guarantee contracts fluctuates over time (note 22). Revenues related to inventory contracts are recognized in the period in which the sale is completed, title to the property passes to the purchaser and the Company has fulfilled any other obligations that may be relevant to the transaction, including, but not limited to, delivery of the property. Revenue from inventory sales is presented net of costs within revenues on the income statement, as the Company takes title only for a short period of time and the risks and rewards of ownership are not substantially different than the Company’s other underwritten commission contracts. Fees Fees earned in the process of conducting our auctions include administrative, documentation, and advertising fees. Fees from value-added services include financing and technology service fees. Fees also subscription revenues from our listing and software services, as well as amounts paid by buyers (a “buyer’s premium”) on online marketplace sales. Fees are recognized in the period in which the service is provided to the customer. |
Costs of Services, Excluding Depreciation and Amortization Expenses | (c) Costs of s ervices, excluding depreciation and amortization expenses Costs of services are comprised of expenses incurred in direct relation to conducting auctions (“direct expenses”), earning online marketplace revenues, and earning other fee revenues. Direct expenses include direct labour, buildings and facilities charges, and travel, advertising and promotion costs. Costs of services incurred to earn online marketplace revenues include i nventory m anagement, referral, inspection, sampling, and appraisal fees . Costs of services incurred in earning other fee revenues include direct labour (including commissions on sales), software maintenance fees, and materials. Costs of services exclude depreciation and amortization expenses. In comparative periods, costs of services consisted entirely of direct expenses. As a result of the Xcira LLC (“Xcira”) and Mascus International Holdings BV (“Mascus”) acquisitions, significant other costs of services are now incurred in earning our revenues (note 23) . |
New and Amended Accounting Standards | (d) N ew and amended accounting standards (i) Effective January 1, 2016, the Company adopted Accounting Standards Update (“ASU”) 2015-16, Business Combinations (Topic 805), Simplifying the Accounting for Measurement-Period Adjustments , which requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The adoption of this standard did not have an impact on the Company’s consolidated financial statements with respect to the acquisition of Xcira (note 23(b)) as no adjustments to provisional amounts were identified during the measurement period. With respect to the Mascus a cquisition (note 23(a)), the Company is still in the measurement period, and has not yet identified any adjustments to provisional amounts. 2. Significant accounting policies (continued) (d) New and amended accounting standards (continued) (ii) Effective January 1, 2016, the Company adopted A SU 2015-05 , Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) , Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement , which provide s clarity around a customer’s accounting for fees paid i n a cloud computing arrangement . The amendments in ASU 2015-05 add guidance to assist customers in determining whether a cloud c omputing arrangement includes a software license. Software license elements of cloud computing arrangements are accounted for consistent with the acquisition of other intangible asset licenses. Where there is no software license element, the cloud computing arrangement is accounted for as a service contract. The standard was applied prospectively and did not have an impact on the Company’s consolidated financial statements. (iii) Effective January 1, 2016, the Company adopted A SU 2015-02 , Consolidation (Topic 810), Amendments to the Consolidation Analysis , which changes the evaluation of whether limited partnerships and similar legal entities are variable interest entities (“VIEs”), and eliminates the presumption that a general partner should consolidate a limited partnership that is a voting interest entity. The new guidance also alters the analysis for determining when fees paid to a decision maker or service provider represent a variable interest in a VIE and how interests of related parties affect the primary beneficiary determination. The adoption of this standard did not have an impact on the Company’s consolidated financial statements. (iv) Effective January 1, 2016, the Company adopted A SU 2014-12 , Compensation – Stock Compensation (Topic 718), Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period , which requires that a performance target that (1) affects vesting of an award, and (2) could be achieved after the requisite service period of the employee be treated as a performance condition. The adoption of this standard did not have an impact on the Company’s consolidated financial statements. |
Recent Accounting Standards Not Yet Adopted | (e) Recent accounting standards not yet adopted (i) In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which requires lessees to recognize almost all leases, including operating leases, on the balance sheet through a right-of-use asset and a corresponding lease liability. For short-term leases, defined as those with a term of 12 months or less, the lessee is permitted to make an accounting policy election not to recognize the lease assets and liabilit ies, and instead recognize the lease expense generally on a straight-line basis over the lease term. The accounting treatment under this election is consistent with current operating lease accounting. No extensive amendments were made to lessor accounting, but amendments of note include changes to the definition of initial direct costs and accounting for collectability uncertainties in a lease. ASU 2016-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. Both lessees and lessors must apply ASU 2016-02 using a “modified retrospective transition”, which reflects the new guidance from the beginning of the earliest period presented in the financial statements. However, lessees and lessors can elect to apply certain practical expedients on transition. The Company is evaluating the new guidance to determine the impact it will have on its consolidated financial statements. (ii) In January 2016 , the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities , the f irst of three standards related to financial instrument accounting. The amendments of ASU 2016-01 require equity method investments (except for equity-method accounted investments and those resulting in consolidation of the investee) to be measured at fair value with changes recognized in net income. For equity investments that do not have readily determinable fair values, the entity may elect to measure the investmen t at cost less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer . 2. Significant accounting policies (continued) ( e ) Recent accounting standards not yet adopted (continued) The Company is evaluating the new guidance to determine the impact it will have on its consolidated financial statements. The amendments also: · Simplify the impairment assessment of equity investments that do not have readily determinable fair values, by requiring a qualitative assessment to identify impairment. The entity is only required to measure the investment at fair value if the qualitative assessment indicates that impairment exists. · Eliminate the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. · Require the exit price notion to be used when measuring the fair value of financial instruments for disclosure purposes. · Require separate presentation of financial assets and liabilities by measurement category and form of financial asset (i.e. securities or loans & receivables) on the balance sheet or the accompanying notes to the financial statements. ASU 2016-01 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is only permitted for the provisions under ASU 2016-01 related to the recognition of changes in fair value of financial liabilities. The Company is evaluating the new guidance to determine the impact it will have on its consolidated financial statements. (iii) In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In particular, it moves away from the current industry and transaction specific requirements. ASU 2014-09 creates a five-step model that requires entities to exercise judgment when considering the terms of the contract(s) which inclu d e: 1. Identifying the contract(s) with the customer, 2. Identifying the separate performance obligations in the contract, 3. Determining the transaction price, 4. Allocating the transaction price to the separate performance obligations, and 5. Recognizing revenue as each performance obligation is satisfied. The amendments also contain extensive disclosure requirements designed to enable users of the financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In July 2015, the FASB delayed the effective date of ASU 2014-09 by one year so that ASU 2014-09 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company is evaluating the new guidance to determine the impact it will have on its consolidated financial statements. 2. Significant accounting policies (continued) ( e ) Recent accounting standards not yet adopted (continued) (iv) In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606), Principal versus Agent Considerations (Reporting Revenue Gross versus Net . The amendments in ASU 2016-08 clarify the implementation guidance on principal versus agent considerations, focusing on whether an entity controls a specified good or service before that good or service is transferred to a customer. Where such control exists – i.e. where the entity is required to provide the specified good or service itself – the entity is a ‘principal’. Where the entity is required to arrange for another party to provide the good or service, it is an agent. The effective date and transition requirements of ASU 2016-08 are the same as for ASU 2014-09, which is for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company is evaluating the new guidance to determine the impact it will have on its consolidated financial statements. (v) In March 2016, the FASB issued ASU No. 2016-09, "Compensation—Stock Compensation (Topic 718)." This standard makes several modifications to Topic 718 related to the accounting for forfeitures, employer tax withholding on share-based compensation and the financial statement presentation of excess tax benefits or deficiencies. ASU 2016-09 also clarifies the statement of cash flows presentation for certain components of share-based awards. The standard is effective for interim and annual reporting periods beginning after December 15, 2016, although early adoption is permitted. The Company is evaluating how the adoption of this stan dard will impact its c onsolidated f inancial s tatements |
Segmented Information (Tables)
Segmented Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segmented Information [Abstract] | |
Schedule of Revenue and (Loss) Income Before Taxes by Segment | Core Three months ended March 31, 2016 Auction Other Consolidated Revenues $ 127,340 $ 4,605 $ 131,945 Costs of services, excluding depreciation and amortization (14,785) (528) (15,313) Selling, general and administrative expenses (64,820) (3,487) (68,307) Depreciation and amortization expenses (9,304) (776) (10,080) 38,431 $ (186) $ 38,245 Gain on disposition of property, plant and equipment 246 Foreign exchange gain 683 Operating income $ 39,174 Equity income 519 Other and income tax expenses (9,699) Net income $ 29,994 Core Three months ended March 31, 2015 Auction Other Consolidated Revenues $ 112,645 $ 2,973 $ 115,618 Costs of services, excluding depreciation and amortization (11,609) - (11,609) Selling, general and administrative expenses (60,598) (3,158) (63,756) Depreciation and amortization expenses (9,696) (920) (10,616) $ 30,742 $ (1,105) $ 29,637 Gain on disposition of property, plant and equipment 175 Foreign exchange gain 3,207 Operating income $ 33,019 Equity income 233 Other and income tax expenses (9,142) Net income $ 24,110 |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Revenues [Abstract] | |
Revenue from the Rendering of Services | Three months ended March 31, 2016 2015 Commissions $ 99,793 $ 93,140 Fees 32,152 22,478 $ 131,945 $ 115,618 |
Net Profits on Inventory Sales Included in Commissions | Three months ended March 31, 2016 2015 Revenue from inventory sales $ 124,557 $ 153,281 Cost of inventory sold (111,536) (138,578) $ 13,021 $ 14,703 |
Operating Expenses (Tables)
Operating Expenses (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Operating Expenses [Abstract] | |
Schedule of Direct Operating Expenses | Three months ended March 31, 2016 2015 Employee compensation expenses $ 6,258 $ 4,598 Buildings, facilities and technology expenses 2,295 1,614 Travel, advertising and promotion expenses 5,937 4,154 Other costs of services 823 1,243 $ 15,313 $ 11,609 |
Schedule of Selling, General and Administrative Expenses | Three months ended March 31, 2016 2015 Employee compensation expenses $ 44,490 $ 41,729 Buildings, facilities and technology expenses 11,236 10,046 Travel, advertising and promotion expenses 5,562 6,081 Professional fees 3,452 3,100 Other SG&A expenses 3,567 2,800 $ 68,307 $ 63,756 |
Schedule of Depreciation and Amortization Expenses | Three months ended March 31, 2016 2015 Depreciation expense $ 7,783 $ 9,280 Amortization expense 2,297 1,336 $ 10,080 $ 10,616 |
Earnings Per Share Attributab35
Earnings Per Share Attributable to Stockholders (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share Attributable to Stockholders [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | Net income attributable Per share Three months ended March 31, 2016 to stockholders Shares amount Basic $ 29,406 106,917,280 $ 0.28 Effect of dilutive securities: Stock options - 241,730 (0.01) Diluted $ 29,406 107,159,010 $ 0.27 Net income attributable Per share Three months ended March 31, 2015 to stockholders Shares amount Basic $ 23,777 107,484,944 $ 0.22 Effect of dilutive securities: Stock options - 323,004 - Diluted $ 23,777 107,807,948 $ 0.22 |
Supplemental Cash Flow Inform36
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Net Changes in Operating Assets and Liabilities | Three months ended March 31, 2016 2015 Restricted cash $ (31,661) $ (35,335) Trade and other receivables (67,653) (51,577) Inventory 30,476 13,839 Advances against auction contracts 1,048 18,301 Prepaid expenses and deposits 278 (823) Income taxes receivable (6,097) (431) Auction proceeds payable 184,437 149,813 Trade and other payables 4,113 (15,001) Income taxes payable (12,305) (4,910) Share unit liabilities (2,358) 741 Other (5,545) 2,792 Net changes in operating assets and liabilities $ 94,733 $ 77,409 |
Schedule of Supplemental Cash Flow | Three months ended March 31, 2016 2015 Interest paid, net of interest capitalized $ 1,393 $ 1,302 Interest received 498 847 Net income taxes paid 27,172 15,551 Non-cash transactions: Non-cash purchase of property, plant and equipment under capital lease 361 - |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Measurement [Abstract] | |
Fair Value Assets Recurring and Nonrecurring | March 31, 2016 December 31, 2015 Category Carrying amount Fair value Carrying amount Fair value Fair vales disclosed, recurring: Cash and cash equivalents Level 1 $ 294,074 $ 294,074 $ 210,148 $ 210,148 Restricted cash Level 1 117,944 117,944 83,098 83,098 Short-term debt (note 19) Level 2 42,504 42,504 12,350 12,350 Current portion of long- term debt (note 19) Level 2 46,132 46,132 43,348 43,348 Long-term debt (note 19) Level 2 56,143 58,318 54,567 56,126 |
Assets Held For Sale (Tables)
Assets Held For Sale (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Assets Held For Sale [Abstract] | |
Summary of Assets Held For Sale | Balance, December 31, 2015 $ 629 Other 2 Balance, March 31, 2016 $ 631 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | As at March 31, 2016 Cost Accumulated depreciation Net book value Land and improvements $ 366,245 $ (57,091) $ 309,154 Buildings 260,840 (86,215) 174,625 Yard and automotive equipment 60,222 (39,401) 20,821 Computer software and equipment 64,900 (55,458) 9,442 Office equipment 23,204 (16,457) 6,747 Leasehold improvements 21,731 (12,870) 8,861 Assets under development 6,214 - 6,214 $ 803,356 $ (267,492) $ 535,864 As at December 31, 2015 Cost Accumulated depreciation Net book value Land and improvements $ 356,905 $ (54,551) $ 302,354 Buildings 254,760 (82,100) 172,660 Yard and automotive equipment 59,957 (38,848) 21,109 Computer software and equipment 60,586 (50,754) 9,832 Office equipment 22,432 (15,660) 6,772 Leasehold improvements 20,893 (12,160) 8,733 Assets under development 7,131 - 7,131 $ 782,664 $ (254,073) $ 528,591 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Indefinite-Lived and Definite-Lived Intangible Assets | As at March 31, 2016 Cost Accumulated amortization Net book value Trade names and trademarks $ 5,011 $ - $ 5,011 Customer relationships 32,929 (7,724) 25,205 Software 29,555 (7,898) 21,657 Software under development 13,527 - 13,527 $ 81,022 $ (15,622) $ 65,400 As at December 31, 2015 Cost Accumulated amortization Net book value Trade names and trademarks $ 800 $ - $ 800 Customer relationships 22,800 (7,097) 15,703 Software 23,269 (5,848) 17,421 Software under development 13,049 - 13,049 $ 59,918 $ (12,945) $ 46,973 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Balance, December 31, 2015 $ 91,234 Additions (note 23) 19,321 Foreign exchange movement 1,014 Balance, March 31, 2016 $ 111,569 |
Equity-Accounted Investments (T
Equity-Accounted Investments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Equity-Accounted Investments [Abstract] | |
Summary of Investments | Ownership March 31, December percentage 2016 2015 Cura Classis entities 48% $ 4,081 $ 3,487 Other equity investments 32% 3,000 3,000 7,081 6,487 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt [Abstract] | |
Schedule of Debt | Carrying value March 31, December 31, 2016 2015 Short-term debt $ 42,504 $ 12,350 Long-term debt: Term loan, denominated in Canadian dollars, unsecured, bearing interest at 4.225% , due in quarterly installments of interest only, with the full amount of the principal due in May 2022 . 26,143 24,567 Term loan, denominated in United States dollars, unsecured, bearing interest at 3.59% , due in quarterly installments of interest only, with the full amount of the principal due in May 2022 . 30,000 30,000 Term loan, denominated in Canadian dollars, unsecured, bearing interest at 6.385% , due in quarterly installments of interest only, with the full amount of the principal due in May 2016 . 46,132 43,348 102,275 97,915 Total debt $ 144,779 $ 110,265 Total long-term debt: Current portion $ 46,132 $ 43,348 Non-current portion 56,143 54,567 $ 102,275 $ 97,915 |
Equity and Dividends (Tables)
Equity and Dividends (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Equity and Dividends [Abstract] | |
Schedule of Quarterly Dividends Declared and Paid | Declaration date Dividend per share Record date Total dividends Payment date Fourth quarter 2015 January 15, 2016 $ 0.1600 February 12, 2016 $ 17,154 March 4, 2016 Fourth quarter 2014 January 12, 2015 $ 0.1400 February 13, 2015 $ 15,089 March 6, 2015 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation Costs Related to Share-Based Payments | Three months ended March 31, 2016 2015 Stock option compensation expense $ 1,070 $ 723 Share unit expense 1,272 1,017 Employee share purchase plan - employer contributions 353 308 $ 2,695 $ 2,048 |
Summary of Stock Option Activity | Weighted Weighted average Common average remaining Aggregate shares under exercise contractual intrinsic option price life (in years) value Outstanding, December 31, 2014 3,897,791 22.09 Granted 880,706 25.50 Exercised (1,412,535) 21.11 $ 9,426 Forfeited (89,884) 23.10 Outstanding, December 31, 2015 3,276,078 23.40 Granted 1,208,121 24.07 Exercised (145,190) 20.88 $ 632 Forfeited (47,968) 24.49 Outstanding, March 31, 2016 4,291,041 $ 23.67 7.7 $ 14,985 Exercisable, March 31, 2016 2,077,964 $ 22.74 5.8 $ 9,028 |
Summary of Share Unit Activity | Performance share units Restricted share units Deferred share units WA grant WA grant WA grant date fair date fair date fair Number value Number value Number value Outstanding, December 31, 2014 238,573 $ 23.38 403,587 $ 22.32 42,289 $ 22.33 Granted 218,699 24.57 20,528 26.38 29,072 26.07 Vested and settled (6,870) 22.22 (28,887) 22.53 (13,365) 22.34 Forfeited (28,817) 23.23 (62,274) 21.56 - - Outstanding, December 31, 2015 421,585 24.03 332,954 22.70 57,996 24.21 Granted 244,536 23.19 2,214 23.33 5,749 23.40 Vested and settled (28,543) 22.20 (124,226) 22.11 - - Forfeited (28,691) 22.52 (8,127) 22.58 - - Outstanding, March 31, 2016 608,887 $ 23.85 202,815 $ 23.07 63,745 $ 24.14 |
Stock Option Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Stock Option and Performance Share Unit Pricing Assumptions | 2016 2015 Risk free interest rate 1.2% 1.8% Expected dividend yield 2.68% 2.21% Expected lives of the stock options 5 years 5 years Expected volatility 26.5% 25.9% |
Performance Share Unit Plans [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Stock Option and Performance Share Unit Pricing Assumptions | 2016 2015 Risk free interest rate 1.2% 1.3% Expected dividend yield 2.49% 2.17% Expected lives of the PSUs 3 years 3 years Expected volatility 29.9% 29.4% Average expected volatility of comparable companies 37.0% 32.8% |
Business Combination (Tables)
Business Combination (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Mascus International Holdings BV [Member] | |
Schedule of Assets Acquired and Liabilities Assumed | February 19, 2016 Purchase price $ 29,597 Fair value of contingent consideration 3,432 Non-controlling interest (1) 488 Total fair value at Mascus Acquisition Date 33,517 Fair value of assets acquired: Cash and cash equivalents $ 1,785 Trade and other receivables 1,290 Prepaid expenses 453 Property, plant and equipment 104 Intangible assets (2) 14,817 Fair value of liabilities assumed: Trade and other payables 1,533 Other non-current liabilities 37 Deferred tax liabilities 2,683 Fair value of identifiable net assets acquired 14,196 Goodwill acquired on acquisition $ 19,321 (1) The Company acquired 100% of Mascus and within the Mascus group of entit ies there are two subsidiaries that are not wholly-owned. As such, the Company acquired non-controlling interests . The fair value of the non-controlling interest was determined using an income approach based on entity cash flows attributable to non-controlling interest. (2) Intangible assets consist of customers relationships with an amortization period of 17 years and trade names with indefinite lives. |
Xcira LLC [Member] | |
Schedule of Assets Acquired and Liabilities Assumed | November 4, 2015 Purchase price $ 12,359 Non-controlling interest 4,119 Total fair value at Xcira acquisition date 16,478 Assets acquired: Cash and cash equivalents $ 252 Trade and other receivables 1,382 Prepaid expenses 62 Property, plant and equipment 314 Other non-current assets 11 Intangible assets ~ 4,300 Liabilities assumed: Trade and other payables 502 Fair value of identifiable net assets acquired 5,819 Goodwill acquired on acquisition $ 10,659 |
Segmented Information (Narrativ
Segmented Information (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2016segment | |
Segmented Information [Abstract] | |
Number of reportable segments | 1 |
Segmented Information (Schedule
Segmented Information (Schedule of Revenue and (Loss) Income Before Taxes by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting [Line Items] | ||
Revenues | $ 131,945 | $ 115,618 |
Costs of services, excluding depreciation and amortization | (15,313) | (11,609) |
Selling, general and administrative expenses | (68,307) | (63,756) |
Depreciation and amortization expenses | (10,080) | (10,616) |
Gain on disposition of property, plant and equipment | 246 | 175 |
Foreign exchange gain | 683 | 3,207 |
Operating income | 39,174 | 33,019 |
Equity income | 519 | 233 |
Other and income tax expense | (9,699) | (9,142) |
Net income | 29,994 | 24,110 |
Operating Segments [Member] | ||
Segment Reporting [Line Items] | ||
Revenues | 131,945 | 115,618 |
Costs of services, excluding depreciation and amortization | (15,313) | (11,609) |
Selling, general and administrative expenses | (68,307) | (63,756) |
Depreciation and amortization expenses | (10,080) | (10,616) |
Operating income | 38,245 | 29,637 |
Segment Reconciling Items [Member] | ||
Segment Reporting [Line Items] | ||
Gain on disposition of property, plant and equipment | 246 | 175 |
Foreign exchange gain | 683 | 3,207 |
Core Auction [Member] | Operating Segments [Member] | ||
Segment Reporting [Line Items] | ||
Revenues | 127,340 | 112,645 |
Costs of services, excluding depreciation and amortization | (14,785) | (11,609) |
Selling, general and administrative expenses | (64,820) | (60,598) |
Depreciation and amortization expenses | (9,304) | (9,696) |
Operating income | 38,431 | 30,742 |
Other Reporting Unit [Member] | Operating Segments [Member] | ||
Segment Reporting [Line Items] | ||
Revenues | 4,605 | 2,973 |
Costs of services, excluding depreciation and amortization | (528) | |
Selling, general and administrative expenses | (3,487) | (3,158) |
Depreciation and amortization expenses | (776) | (920) |
Operating income | $ (186) | $ (1,105) |
Revenues (Revenue from the Rend
Revenues (Revenue from the Rendering of Services) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues [Abstract] | ||
Commissions | $ 99,793 | $ 93,140 |
Fees | 32,152 | 22,478 |
Total revenues | $ 131,945 | $ 115,618 |
Revenues (Net Profits on Invent
Revenues (Net Profits on Inventory Sales Included in Commissions) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues [Abstract] | ||
Revenue from inventory sales | $ 124,557 | $ 153,281 |
Cost of inventory sold | (111,536) | (138,578) |
Net profits on inventory | $ 13,021 | $ 14,703 |
Operating Expenses (Schedule of
Operating Expenses (Schedule of Direct Operating Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating Expenses [Abstract] | ||
Employee compensation expenses | $ 6,258 | $ 4,598 |
Buildings, facilities and technology expenses | 2,295 | 1,614 |
Travel, advertising and promotion expenses | 5,937 | 4,154 |
Other costs of services | 823 | 1,243 |
Cost of Services, Total | $ 15,313 | $ 11,609 |
Operating Expenses (Schedule 52
Operating Expenses (Schedule of Selling, General and Administrative Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating Expenses [Abstract] | ||
Employee compensation expenses | $ 44,490 | $ 41,729 |
Buildings, facilities and technology expenses | 11,236 | 10,046 |
Travel, advertising and promotion expense | 5,562 | 6,081 |
Professional fees | 3,452 | 3,100 |
Other SG&A expenses | 3,567 | 2,800 |
Total selling, general and administrative expenses | $ 68,307 | $ 63,756 |
Operating Expenses (Schedule 53
Operating Expenses (Schedule of Depreciation and Amortization Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating Expenses [Abstract] | ||
Depreciation expense | $ 7,783 | $ 9,280 |
Amortization expense | 2,297 | 1,336 |
Total depreciation and amortization expenses | $ 10,080 | $ 10,616 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Taxes [Abstract] | ||
Effective income tax rate | 24.10% | 28.10% |
Contingently Redeemable Non-c55
Contingently Redeemable Non-controlling Interest in Ritchie Bros. Financial Services (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Redeemable Noncontrolling Interest [Line Items] | ||
Redemption value of the contingently redeemable NCI | $ 41,444 | $ 24,785 |
Ritchie Bros. Financial Services [Member] | ||
Redeemable Noncontrolling Interest [Line Items] | ||
Percentage of ownership interest | 51.00% | |
Percentage ownership by non-controlling interest holders | 49.00% |
Earnings Per Share Attributab56
Earnings Per Share Attributable to Stockholders (Narrative) (Details) - shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share Attributable to Stockholders [Abstract] | ||
Potential common share excluded from computation of diluted earnings per share (shares) | 2,980,470 | 438,358 |
Earnings Per Share Attributab57
Earnings Per Share Attributable to Stockholders (Computation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share Attributable to Stockholders [Abstract] | ||
Basic, Net income attributable to stockholders | $ 29,406 | $ 23,777 |
Diluted, Net income attributable to stockholders | $ 29,406 | $ 23,777 |
Basic, shares | 106,917,280 | 107,484,944 |
Effect of dilutive securities: Stock options, shares | 241,730 | 323,004 |
Diluted, shares | 107,159,010 | 107,807,948 |
Basic, Per share amount | $ 0.28 | $ 0.22 |
Effect of dilutive securities: Stock options, Per share amount | (0.01) | |
Diluted, Per share amount | $ 0.27 | $ 0.22 |
Supplemental Cash Flow Inform58
Supplemental Cash Flow Information (Schedule of Net Changes In Operating Assets and Liabilities) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Supplemental Cash Flow Information [Abstract] | ||
Restricted cash | $ (31,661) | $ (35,335) |
Trade and other receivables | (67,653) | (51,577) |
Inventory | 30,476 | 13,839 |
Advances against auction contracts | 1,048 | 18,301 |
Prepaid expenses and deposits | 278 | (823) |
Income taxes receivable | (6,097) | (431) |
Auction proceeds payable | 184,437 | 149,813 |
Trade and other payables | 4,113 | (15,001) |
Income taxes payable | (12,305) | (4,910) |
Share unit liabilities | (2,358) | 741 |
Other | (5,545) | 2,792 |
Net changes in operating assets and liabilities | $ 94,733 | $ 77,409 |
Supplemental Cash Flow Inform59
Supplemental Cash Flow Information (Schedule of Supplemental Cash Flow) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Supplemental Cash Flow Information [Abstract] | ||
Interest paid, net of interest capitalized | $ 1,393 | $ 1,302 |
Interest received | 498 | 847 |
Net income taxes paid | 27,172 | $ 15,551 |
Non-cash purchase of property, plant and equipment under capital lease | $ 361 |
Fair Value Measurement (Fair Va
Fair Value Measurement (Fair Value Assets Recurring and Nonrecurring) (Details) - Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Carrying Amount [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 294,074 | $ 210,148 |
Restricted Cash | 117,944 | 83,098 |
Fair Value [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 294,074 | 210,148 |
Restricted Cash | 117,944 | 83,098 |
Short-term Debt [Member] | Carrying Amount [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument | 42,504 | 12,350 |
Short-term Debt [Member] | Fair Value [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument | 42,504 | 12,350 |
Long Term Debt, Current [Member] | Carrying Amount [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument | 46,132 | 43,348 |
Long Term Debt, Current [Member] | Fair Value [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument | 46,132 | 43,348 |
Long-term Debt [Member] | Carrying Amount [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument | 56,143 | 54,567 |
Long-term Debt [Member] | Fair Value [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument | $ 58,318 | $ 56,126 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2016 | Dec. 31, 2015 | |
Inventory [Abstract] | |||
Inventory write down | $ 60 | ||
Percentage of inventory held and is expected to be sold | 94.00% | 91.00% |
Assets Held For Sale (Narrative
Assets Held For Sale (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2016 | |
Assets Held For Sale [Abstract] | |
Timing of sale | 12 months |
Assets Held For Sale (Summary o
Assets Held For Sale (Summary of Assets Held For Sale) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Assets Held For Sale [Abstract] | |
Beginning balance | $ 629 |
Other | 2 |
Ending balance | $ 631 |
Property, Plant And Equipment64
Property, Plant And Equipment (Schedule of Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Cost | $ 803,356 | $ 782,664 |
Accumulated depreciation | (267,492) | (254,073) |
Net book value | 535,864 | 528,591 |
Land and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 366,245 | 356,905 |
Accumulated depreciation | (57,091) | (54,551) |
Net book value | 309,154 | 302,354 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 260,840 | 254,760 |
Accumulated depreciation | (86,215) | (82,100) |
Net book value | 174,625 | 172,660 |
Yard and Automotive Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 60,222 | 59,957 |
Accumulated depreciation | (39,401) | (38,848) |
Net book value | 20,821 | 21,109 |
Computer Software and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 64,900 | 60,586 |
Accumulated depreciation | (55,458) | (50,754) |
Net book value | 9,442 | 9,832 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 23,204 | 22,432 |
Accumulated depreciation | (16,457) | (15,660) |
Net book value | 6,747 | 6,772 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 21,731 | 20,893 |
Accumulated depreciation | (12,870) | (12,160) |
Net book value | 8,861 | 8,733 |
Assets under Development [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 6,214 | 7,131 |
Net book value | $ 6,214 | $ 7,131 |
Intangible Assets (Narrative) (
Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Interest costs, weighted average rate | 6.39% | 6.39% |
Capitalized cost of software under development | $ 80 | $ 301 |
Intangible Assets (Schedule Of
Intangible Assets (Schedule Of Indefinite-Lived And Definite-Lived Intangible Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Indefinite-Lived and Finite-Lived Intangible Assets By Major Class [Line Items] | ||
Cost | $ 81,022 | $ 59,918 |
Accumulated amortization | (15,622) | (12,945) |
Net book value | 65,400 | 46,973 |
Trade Names and Trademarks [Member] | ||
Indefinite-Lived and Finite-Lived Intangible Assets By Major Class [Line Items] | ||
Cost | 5,011 | 800 |
Net book value | 5,011 | 800 |
Software Under Development [Member] | ||
Indefinite-Lived and Finite-Lived Intangible Assets By Major Class [Line Items] | ||
Cost | 13,527 | 13,049 |
Net book value | 13,527 | 13,049 |
Customer Relationships [Member] | ||
Indefinite-Lived and Finite-Lived Intangible Assets By Major Class [Line Items] | ||
Cost | 32,929 | 22,800 |
Accumulated amortization | (7,724) | (7,097) |
Net book value | 25,205 | 15,703 |
Software [Member] | ||
Indefinite-Lived and Finite-Lived Intangible Assets By Major Class [Line Items] | ||
Cost | 29,555 | 23,269 |
Accumulated amortization | (7,898) | (5,848) |
Net book value | $ 21,657 | $ 17,421 |
Goodwill (Schedule Of Goodwill)
Goodwill (Schedule Of Goodwill) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Balance | $ 91,234 |
Additions (note 23) | 19,321 |
Foreign exchange movement | 1,014 |
Goodwill, Balance | $ 111,569 |
Equity-Accounted Investments (S
Equity-Accounted Investments (Summary of Investments) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Equity Method Investments [Line Items] | ||
Equity-accounted investments | $ 7,081 | $ 6,487 |
Cura Classis Entities [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 48.00% | |
Equity-accounted investments | $ 4,081 | 3,487 |
Other Equity Investments [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 32.00% | |
Equity-accounted investments | $ 3,000 | $ 3,000 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) $ in Thousands, CAD in Millions | Mar. 31, 2016CAD | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Debt [Line Items] | |||
Short-term debt weighted averate interest rate | 2.00% | 2.00% | 1.82% |
Maximum borrowing capacity | $ | $ 314,019 | $ 312,693 | |
Uncommitted Credit Facilities [Member] | |||
Debt [Line Items] | |||
Line of credit facility, current amount | CAD | CAD 60 |
Debt (Summary of Debt) (Details
Debt (Summary of Debt) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Debt [Line Items] | ||
Short-term debt | $ 42,504 | $ 12,350 |
Long-term Debt, Total | 102,275 | 97,915 |
Total debt | 144,779 | 110,265 |
Current portion | 46,132 | 43,348 |
Non-current portion | 56,143 | 54,567 |
4.225% Term Loan, Due May 2022 [Member] | ||
Debt [Line Items] | ||
Long-term Debt, Total | $ 26,143 | 24,567 |
Interest rate | 4.225% | |
Maturity date of term loan unsecured debt | May 1, 2022 | |
3.59% Term Loan, Due May 2022 [Member] | ||
Debt [Line Items] | ||
Long-term Debt, Total | $ 30,000 | 30,000 |
Interest rate | 3.59% | |
Maturity date of term loan unsecured debt | May 1, 2022 | |
6.385% Term Loan, Due May 2016 [Member] | ||
Debt [Line Items] | ||
Long-term Debt, Total | $ 46,132 | $ 43,348 |
Interest rate | 6.385% | |
Maturity date of term loan unsecured debt | May 1, 2016 |
Equity and Dividends (Narrative
Equity and Dividends (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | |||
May. 06, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Dividends Payable [Line Items] | |||||
Preferred shares issued | 0 | 0 | |||
Stock repurchased during period, shares | 1,460,000 | 1,900,000 | |||
Stock repurchased during period, per share | $ 25.16 | $ 24.98 | |||
Intra-entity foreign currency transactions | $ 8,882 | $ (14,453) | |||
Subsequent Event [Member] | |||||
Dividends Payable [Line Items] | |||||
Dividends declared (usd per share) | $ 0.16 | ||||
Payment date | Jun. 14, 2016 | ||||
Record date | May 24, 2016 |
Equity and Dividends (Schedule
Equity and Dividends (Schedule of Quarterly Dividends Declared and Paid) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Fourth Quarter 2015 [Member] | ||
Dividends Payable [Line Items] | ||
Declaration date | Jan. 15, 2016 | |
Dividends declared (usd per share) | $ 0.1600 | |
Record date | Feb. 12, 2016 | |
Total dividends | $ 17,154 | |
Payment date | Mar. 4, 2016 | |
Fourth Quarter 2014 [Member] | ||
Dividends Payable [Line Items] | ||
Declaration date | Jan. 12, 2015 | |
Dividends declared (usd per share) | $ 0.1400 | |
Record date | Feb. 13, 2015 | |
Total dividends | $ 15,089 | |
Payment date | Mar. 6, 2015 |
Share-Based Payments (Narrative
Share-Based Payments (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2016USD ($)item | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employee service period | 60 days |
Maximum employee contribution, percentage | 4.00% |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employer matching contribution, percentage | 50.00% |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employer matching contribution, percentage | 100.00% |
Stock Option Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk free interest rate measurement period | 5 years |
Expected life measurement period | 5 years |
Expected volatility measurement period | 5 years |
Unrecognized compensation costs | $ | $ 8,107,000 |
Unrecognized compensation costs, period for recognition | 2 years 10 months 24 days |
Performance Share Unit Plans [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of plans | item | 2 |
Restricted Share Units and Deferred Share Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Estimated weighted average price period | 20 days |
Share-Based Payments (Compensat
Share-Based Payments (Compensation Costs Related To Share-Based Payments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-Based Payments [Abstract] | ||
Stock option compensation expense | $ 1,070 | $ 723 |
Share unit expense | 1,272 | 1,017 |
Employee share purchase plan - employer contributions | 353 | 308 |
Total comensation costs related to share based payments | $ 2,695 | $ 2,048 |
Share-Based Payments (Summary o
Share-Based Payments (Summary of Stock Option Activity) (Details) - Stock Option Plan [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding beginning balance, Common shares under option | 3,276,078 | 3,897,791 |
Granted, Common shares under option | 1,208,121 | 880,706 |
Exercised, Common shares under option | (145,190) | (1,412,535) |
Forfeited, Common shares under option | (47,968) | (89,884) |
Outstanding ending balance, Common shares under option | 4,291,041 | 3,276,078 |
Exercisable, Common shares under option | 2,077,964 | |
Outstanding beginning balance, Weighted average exercise price (per share) | $ 23.40 | $ 22.09 |
Granted, Weighted average exercise price (per share) | 24.07 | 25.50 |
Exercised, Weighted average exercise price (per share) | 20.88 | 21.11 |
Forfeited, Weighted average exercise price (per share) | 24.49 | 23.10 |
Outstanding ending balance, Weighted average exercise price (per share) | 23.67 | $ 23.40 |
Exercisable, Weighted average exercise price (per share) | $ 22.74 | |
Outstanding, Weighted average remaining contractual life (in years) | 7 years 8 months 12 days | |
Exercisable, Weighted average remaining contractual life (in years) | 5 years 9 months 18 days | |
Exercised, Aggregate intrinsic value | $ 632 | $ 9,426 |
Outstanding, Aggregate intrinsic value | 14,985 | |
Exercisable, Aggregate intrinsic value | $ 9,028 |
Share-Based Payments (Summary76
Share-Based Payments (Summary of Stock Option and Performance Share Unit Pricing Assumptions) (Details) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Stock Options [Member] | Stock Option Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk free interest rate | 1.20% | 1.80% |
Expected dividend yield | 2.68% | 2.21% |
Expected term | 5 years | 5 years |
Expected volatility | 26.50% | 25.90% |
Performance Share Units [Member] | Performance Share Unit Plans [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk free interest rate | 1.20% | 1.30% |
Expected dividend yield | 2.49% | 2.17% |
Expected term | 3 years | 3 years |
Expected volatility | 29.90% | 29.40% |
Average expected volatility of comparable companies | 37.00% | 32.80% |
Share-Based Payments (Summary77
Share-Based Payments (Summary of Share Unit Activity) (Details) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Performance Share Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding beginning balance, Number of units | 421,585 | 238,573 |
Granted, Number of units | 244,536 | 218,699 |
Vested and settled, Number of units | (28,543) | (6,870) |
Forfeited, Number of units | (28,691) | (28,817) |
Outstanding ending balance, Number of units | 608,887 | 421,585 |
Outstanding beginning balance, Weighted average grant date fair value (per share) | $ 24.03 | $ 23.38 |
Granted, Weighted average grant date fair falue (per share) | 23.19 | 24.57 |
Vested and settled, Weighted average grant date fair value (per share) | 22.20 | 22.22 |
Forfeited, Weighted average grant date fair value (per share) | 22.52 | 23.23 |
Outstanding ending balance, Weighted average grant date fair value (per share) | $ 23.85 | $ 24.03 |
Restricted Share Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding beginning balance, Number of units | 332,954 | 403,587 |
Granted, Number of units | 2,214 | 20,528 |
Vested and settled, Number of units | (124,226) | (28,887) |
Forfeited, Number of units | (8,127) | (62,274) |
Outstanding ending balance, Number of units | 202,815 | 332,954 |
Outstanding beginning balance, Weighted average grant date fair value (per share) | $ 22.70 | $ 22.32 |
Granted, Weighted average grant date fair falue (per share) | 23.33 | 26.38 |
Vested and settled, Weighted average grant date fair value (per share) | 22.11 | 22.53 |
Forfeited, Weighted average grant date fair value (per share) | 22.58 | 21.56 |
Outstanding ending balance, Weighted average grant date fair value (per share) | $ 23.07 | $ 22.70 |
Deferred Share Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding beginning balance, Number of units | 57,996 | 42,289 |
Granted, Number of units | 5,749 | 29,072 |
Vested and settled, Number of units | (13,365) | |
Forfeited, Number of units | ||
Outstanding ending balance, Number of units | 63,745 | 57,996 |
Outstanding beginning balance, Weighted average grant date fair value (per share) | $ 24.21 | $ 22.33 |
Granted, Weighted average grant date fair falue (per share) | $ 23.40 | 26.07 |
Vested and settled, Weighted average grant date fair value (per share) | $ 22.34 | |
Forfeited, Weighted average grant date fair value (per share) | ||
Outstanding ending balance, Weighted average grant date fair value (per share) | $ 24.14 | $ 24.21 |
Contingencies (Details)
Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Industrial Assets Guaranteed Under Contract [Member] | ||
Guarantor Obligations [Line Items] | ||
Assets guaranteed under contract | $ 85,128 | $ 25,267 |
Percentage of assets expected to be sold | 100.00% | 100.00% |
Agricultural Assets Guaranteed Under Contract [Member] | ||
Guarantor Obligations [Line Items] | ||
Assets guaranteed under contract | $ 34,241 | $ 30,509 |
Percentage of assets expected to be sold | 100.00% | 100.00% |
Business Combination (Narrative
Business Combination (Narrative) (Details) € in Thousands | Feb. 19, 2016EUR (€) | Feb. 19, 2016USD ($) | Nov. 04, 2015USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Mar. 31, 2016EUR (€) | Mar. 31, 2016USD ($) | Feb. 19, 2016USD ($) | Dec. 31, 2015USD ($) |
Business Acquisition [Line Items] | ||||||||||
Goodwill | $ 111,569,000 | $ 91,234,000 | ||||||||
Net income | $ 29,406,000 | $ 23,777,000 | ||||||||
Revenues | 131,945,000 | $ 115,618,000 | ||||||||
Mascus International Holdings BV [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash consideration | € 26,569 | $ 29,597,000 | ||||||||
Voting equity interests acquired, percentage | 100.00% | 100.00% | ||||||||
Contingent consideration | € 3,080 | $ 3,432,000 | ||||||||
Goodwill | $ 19,321,000 | |||||||||
Revenue of since acquisition date | $ 1,268,000 | |||||||||
Legal and other acquisition-related costs | 717,500 | |||||||||
Obligation to pay additional amount | € 1,625 | 1,849,000 | ||||||||
Xcira LLC [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash consideration | $ 12,359,000 | |||||||||
Voting equity interests acquired, percentage | 75.00% | |||||||||
Percentage ownership by non-controlling interest holders | 25.00% | |||||||||
Contingent consideration | $ 0 | |||||||||
Goodwill | 10,659,000 | |||||||||
Fair value of the non-controlling interest | $ 4,119,000 | |||||||||
Net income | 469,000 | |||||||||
Revenues | $ 1,251,000 | |||||||||
Xcira LLC [Member] | Xcira Founder [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Obligation to pay additional amount | 2,000,000 | |||||||||
Period to make additional amount of obligation upon achievement of certain condition | 3 years | |||||||||
Future Software Development [Member] | Xcira LLC [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Obligation to pay additional amount | $ 2,700,000 | |||||||||
Period to make additional amount of obligation upon achievement of certain condition | 2 years |
Business Combination (Schedule
Business Combination (Schedule of Assets Acquired and Liabilities Assumed) (Details) € in Thousands, $ in Thousands | Feb. 19, 2016EUR (€) | Feb. 19, 2016USD ($) | Nov. 04, 2015USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Business Acquisition [Line Items] | ||||||
Goodwill acquired on acquisition | $ 111,569 | $ 91,234 | ||||
Mascus International Holdings BV [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price | € 26,569 | $ 29,597 | ||||
Fair value of contingent consideration | 3,432 | |||||
Non-controlling Interest | [1] | 488 | ||||
Total fair value at Xcira acquisition date | 33,517 | |||||
Cash and cash equivalents | 1,785 | |||||
Trade and other receivables | 1,290 | |||||
Prepaid expenses | 453 | |||||
Property, plant and equipment | 104 | |||||
Intangible assets | [2] | 14,817 | ||||
Trade and other payables | 1,533 | |||||
Other non-current liabilities | 37 | |||||
Deferred tax liabilities | 2,683 | |||||
Fair value of identifiable net assets acquired | 14,196 | |||||
Goodwill acquired on acquisition | $ 19,321 | |||||
Mascus International Holdings BV [Member] | Customer Relationships [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Amortization life | 17 years | 17 years | ||||
Xcira LLC [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price | $ 12,359 | |||||
Non-controlling Interest | 4,119 | |||||
Total fair value at Xcira acquisition date | 16,478 | |||||
Cash and cash equivalents | 252 | |||||
Trade and other receivables | 1,382 | |||||
Prepaid expenses | 62 | |||||
Property, plant and equipment | 314 | |||||
Other non-current assets | 11 | |||||
Intangible assets | [3] | 4,300 | ||||
Trade and other payables | 502 | |||||
Fair value of identifiable net assets acquired | 5,819 | |||||
Goodwill acquired on acquisition | $ 10,659 | |||||
Xcira LLC [Member] | Technology [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Amortization life | 5 years | |||||
Xcira LLC [Member] | Customer Relationships [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Amortization life | 20 years | |||||
[1] | The Company acquired 100% of Mascus and within the Mascus group of entities there are two subsidiaries that are not wholly-owned. As such, the Company acquired non-controlling interests. The fair value of the non-controlling interest was determined using an income approach based on entity cash flows attributable to non-controlling interest. | |||||
[2] | Intangible assets consist of customers relationships with an amortization period of 17 years and trade names with indefinite lives. | |||||
[3] | Consists of existing technology and customer relationships with an amortization life of five and 20 years, respectively |