Quarterly report pursuant to Section 13 or 15(d)

Business Combinations (Tables)

v3.7.0.1
Business Combinations (Tables)
6 Months Ended
Jun. 30, 2017
Business Combinations  
Schedule of revenue and operating profit since acquisition date included in the Condensed Consolidated Statements of Operations

Revenue and net income since the acquisition date included in our Condensed Consolidated Statements of Operations were as follows, in thousands:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2017

 

Six Months Ended June 30, 2017

 

 

Net Sales

 

Net Income

 

Net Sales

 

Net Income

Midwest

 

$

4,940

 

$

231

 

$

8,208

 

$

140

EcoFoam

 

$

6,848

 

$

134

 

$

9,237

 

$

225

Superior

 

$

2,866

 

$

337

 

$

2,866

 

$

337

Canyon

 

$

1,733

 

$

221

 

$

1,733

 

$

221

All others

 

$

2,745

 

$

355

 

$

2,941

 

$

377

 

Schedule of pro forma results

Our pro forma results are presented below, in thousands:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pro forma for the three months ended June 30,

 

Pro forma for the six months ended June 30,

 

 

2017

 

 

2016

 

2017

 

 

2016

Net sales

 

$

485,299

 

$

456,173

 

$

940,334

 

$

890,158

Net income

 

$

24,113

 

$

17,212

 

$

23,804

 

$

29,227

 

Schedule of additional expense included in the pro forma operating profit and net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pro forma for the three months ended June 30,

 

Pro forma for the six months ended June 30,

 

 

2017

 

 

2016

 

2017

 

 

2016

Net sales

 

$

485,299

 

$

456,173

 

$

940,334

 

$

890,158

Net income

 

$

24,113

 

$

17,212

 

$

23,804

 

$

29,227

 

The following table details the additional expense included in the unaudited pro forma net income that would have been recorded had the acquisitions taken place on January 1, 2016, in thousands:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pro forma for the three months ended June 30,

 

Pro forma for the six months ended June 30,

 

 

2017

 

2016

 

2017

 

2016

Amortization of intangible assets

 

$

216

 

$

751

 

$

830

 

$

1,503

Income tax expense (using normalized 38% ETR)

 

$

400

 

$

979

 

$

1,260

 

$

1,530

 

Schedule of estimated fair values of the assets acquired and liabilities assumed for the acquisitions

 

The estimated fair values of the assets acquired and liabilities assumed for the acquisitions, as well as total consideration paid, approximated the following as of June 30, in thousands:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

 

Midwest

 

EcoFoam

 

Superior

 

Canyon

 

All others

 

Total

Estimated fair values:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

$

6,690

 

$

3,762

 

$

2,012

 

$

8,222

 

$

678

 

$

21,364

Inventories

 

 

75

 

 

1,119

 

 

321

 

 

529

 

 

141

 

 

2,185

Prepaid and other assets

 

 

 —

 

 

27

 

 

 1

 

 

 —

 

 

 6

 

 

34

Property and equipment

 

 

655

 

 

1,544

 

 

361

 

 

475

 

 

357

 

 

3,392

Intangible assets

 

 

2,660

 

 

6,650

 

 

5,270

 

 

8,450

 

 

3,540

 

 

26,570

Goodwill

 

 

3,504

 

 

11,588

 

 

3,657

 

 

16,889

 

 

4,137

 

 

39,775

Accounts payable

 

 

(1,359)

 

 

(2,093)

 

 

(681)

 

 

(163)

 

 

(26)

 

 

(4,322)

Accrued liabilities

 

 

 —

 

 

(302)

 

 

(4)

 

 

 —

 

 

 —

 

 

(306)

Net assets acquired

 

$

12,225

 

$

22,295

 

$

10,937

 

$

34,402

 

$

8,833

 

$

88,692

 

Schedule of fair value of consideration transferred

The following table details the fair value of consideration transferred as of June 30, in thousands:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

 

Midwest

 

EcoFoam

 

Superior

 

Canyon

 

All others

 

Total

Fair value of consideration:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

$

12,225

 

$

20,185

 

$

10,937

 

$

31,752

 

$

8,833

 

$

83,932

Deferred consideration

 

 

 —

 

 

 —

 

 

 —

 

 

2,650

 

 

 —

 

 

2,650

Contingent consideration

 

 

 —

 

 

2,110

 

 

 —

 

 

 —

 

 

 —

 

 

2,110

Total consideration transferred

 

$

12,225

 

$

22,295

 

$

10,937

 

$

34,402

 

$

8,833

 

$

88,692

 

Schedule of estimates of acquired intangible assets related to the acquisitions

Estimates of acquired intangible assets related to the acquisitions are as follows, as of June 30, dollars in thousands:

 

 

 

 

 

 

 

 

 

 

2017

 

 

Estimated Fair Value

 

Weighted Average Estimated Useful Life (Years)

Customer relationships

 

$

19,070

 

 

10

Trademarks and trade names

 

 

1,260

 

 

10

Non-competition agreements

 

 

6,240

 

 

 5

Total intangible assets

 

$

26,570

 

 

 9

 

Schedule of fair value of contingent consideration

.  The following table presents the fair value of contingent consideration as of June 30, 2017, in thousands:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value of Contingent Consideration Recognized at Acquisition Date

 

Settlement of Contingent Consideration

 

Adjustment to Contingent Consideration Charged to Expense

 

Liability Balance for Contingent Consideration

EcoFoam

 

$

2,110

 

$

 —

 

$

48

 

$

2,158