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BUSINESS COMBINATIONS
 3 Months Ended
Mar. 31, 2014
Business Combinations [Abstract]  
BUSINESS COMBINATIONS

NOTE 11 – BUSINESS COMBINATIONS

As part of our ongoing strategy to increase market share in certain markets, we acquired Ace Insulation Contractors, Inc. (“Ace”) during the three months ended March 31, 2013 and U.S. Insulation during the three months ended March 31, 2014.

Ace

On March 16, 2013, we acquired 100% of the membership interests of Ace. The purchase price consisted of cash of $687 and a seller obligation for $300. Ace was combined with another existing branch and as such, we are unable to differentiate the results of operations between Ace and the existing branch for the three months ended March 31, 2014 or 2013.

U.S. Insulation

On March 24, 2014 we acquired 100% of the common stock of U.S. Insulation. The purchase price consisted of cash of $2,006 and a seller obligation for $279. Since the closing date was close to the end of the current period, revenue and expenses included in our Condensed Consolidated Statement of Operations for the three months ended March 31, 2014 were not significant. The table below summarizes the fair values of the assets acquired and the liabilities assumed.

The estimated fair values of the assets acquired and liabilities assumed for the acquisitions approximated the following:

 

     Ace     U.S. Insulation  

Accounts receivable

      $            213        $         1,122   

Inventory

      14        234   

Other current assets

      —          105   

Property and equipment

      263        520   

Intangibles

      1,106        846   

Goodwill

      —          1,217   

Accounts payable and accrued expenses

      (609 )      (1,362 ) 

Deferred tax liability

      —          (397 ) 
  

 

 

    

 

 

  

Total purchase price

      $ 987        $ 2,285   
  

 

 

    

 

 

  

Seller obligations

      $ 300        $ 279   

Cash paid

      687        2,006   
  

 

 

    

 

 

  

Total purchase price

      $ 987        $ 2,285   
  

 

 

    

 

 

  

 

Estimates of acquired intangible assets related to the acquisitions are as follows:

 

     Ace      U.S. Insulation  

Acquired intangibles assets

    Estimated
Fair
Value		      Weighted
Average
Estimated
Useful
Life (yrs)		      Estimated
Fair Value		      Weighted
Average
Estimated
Useful
Life (yrs)		  

Customer relationships

    $ 826         10       $ 546         10   

Trademarks and trade names

      280         15         216         15   

Non-competition agreements

      —           —           84         5   

Pro Forma Information

The unaudited pro forma information has been prepared as if the 2014 acquisitions had taken place on January 1, 2013 and the 2013 acquisitions had taken place on January 1, 2012. The unaudited pro forma information is not necessarily indicative of the results that we would have achieved had the transactions actually taken place on January 1, 2013 and 2012, and the unaudited pro forma information does not purport to be indicative of future financial operating results.

 

     Pro forma for the three
months ended March 31,		  
     2014     2013  

Net revenue

      $       107,989        $         94,621   

Net income (loss)

      518        (606 ) 

Net loss attributable to common stockholders

      (19,379 )      (2,093 ) 

Net loss per share attributable to common stockholders (basic and diluted)

      (0.75 )      (0.09 ) 

Unaudited pro forma net income has been calculated after adjusting the combined results of the Company to reflect additional intangible asset amortization expense of $21 and $47 for the three months ended March 31, 2014 and 2013, respectively.