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Business Combinations | 9 Months Ended
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Sep. 30, 2014
Business Combinations [Abstract] |
Business Combinations | NOTE 11 – BUSINESS COMBINATIONS As part of our ongoing strategy to increase market share in certain markets, we completed one business combination during the nine months ended September 30, 2013 and two business combinations during the nine months ended September 30, 2014. The entities acquired during the nine months ended September 30, 2014 were individually insignificant to our consolidated financial statements. The goodwill to be recognized in conjunction with these business combinations is attributable to expected synergies. Goodwill resulting from each acquisition is not expected to be deductible for tax purposes. 2013 On March 16, 2013, we acquired 100% of the membership interests of Ace Insulation Contractors, Inc. (“Ace”). The purchase price of Ace consisted of cash of $687 and a seller obligation for $300. We combined Ace with an existing branch upon acquisition and as such, we are unable to differentiate the results of operations between Ace and the existing branch for the three and nine months ended September 30, 2014 and September 30, 2013. 2014 On March 24, 2014, we acquired 100% of the common stock of U.S. Insulation Corp. (“U.S. Insulation”) and on August 11, 2014, we acquired 100% of the common stock of Marv’s Insulation, Inc. (“Marv’s Insulation”). The purchase price of our 2014 acquisitions, in aggregate, consisted of cash of $3,366 and seller obligations of $454. Revenue and net income, in aggregate, of these two entities since their dates of acquisition included in our Condensed Consolidated Statement of Operations for the three months ended September 30, 2014 were $3,990 and $462, respectively. Revenue and net income of these two entities since their dates of acquisition included in our Condensed Consolidated Statement of Operations for the nine months ended September 30, 2014 were $6,936 and $604, respectively. The estimated fair values of the assets acquired and liabilities assumed for the acquisitions approximated the following:
|  | 2014 |  |  | 2013 |
Cash |  | $ | 53 |  |  | $ | — |
Accounts receivable |  |  | 1,496 |  |  |  | 213 |
Inventory |  |  | 262 |  |  |  | 14 |
Other current assets |  |  | 123 |  |  |  | — |
Property and equipment |  |  | 554 |  |  |  | 263 |
Intangibles |  |  | 1,561 |  |  |  | 1,106 |
Goodwill |  |  | 1,958 |  |  |  | — |
Accounts payable and accrued expenses |  |  | (1,727 | ) |  |  | (609 | )
Deferred tax liability |  |  | (460 | ) |  |  | — |
Total purchase price |  | $ | 3,820 |  |  | $ | 987 |
Seller obligations |  | $ | 454 |  |  | $ | 300 |
Cash paid |  |  | 3,366 |  |  |  | 687 |
Total purchase price |  | $ | 3,820 |  |  | $ | 987 |
Estimates of acquired intangible assets related to the acquisitions are as follows:
|  | 2014 |  |  | 2013 |
Acquired intangibles assets |  | Estimated Fair Value |  |  | Weighted Average Estimated Useful Life (yrs) |  |  | Estimated Fair Value |  |  | Weighted Average Estimated Useful Life (yrs) |
Customer relationships |  | $ | 1,007 |  |  |  | 10 |  |  | $ | 826 |  |  |  | 10 |
Trademarks and trade names |  |  | 399 |  |  |  | 15 |  |  |  | 280 |  |  |  | 15 |
Non-competition agreements |  |  | 155 |  |  |  | 5 |  |  |  | 0 |  |  |  | 0 |
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 acquisition 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 |  |  | Pro forma for the nine |
|  | months ended September 30, |  |  | months ended September 30, |
|  | 2014 |  |  | 2013 |  |  | 2014 |  |  | 2013 |
Net revenue |  | $ | 140,856 |  |  | $ | 118,821 |  |  | $ | 376,725 |  |  | $ | 321,382 |
Net income |  |  | 5,898 |  |  |  | 2,851 |  |  |  | 8,685 |  |  |  | 3,541 |
Net income (loss) attributable to common stockholders |  |  | 5,898 |  |  |  | 1,273 |  |  |  | (11,212 | ) |  |  | (1,056 | )
Net income (loss) per share attributable to common stockholders (basic and diluted) |  |  | 0.19 |  |  |  | 0.06 |  |  |  | (0.38 | ) |  |  | (0.05 | )
Unaudited pro forma net income has been calculated after adjusting the combined results of the Company to reflect additional intangible asset amortization expense of $8 and $40 for the three months ended September 30, 2014 and 2013, respectively, and $66 and $144 for the nine months ended September 30, 2014 and 2013, respectively.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1383-128463 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6996-128479 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=39739317&loc=d3e4922-128472 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=39739317&loc=d3e4934-128472 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=39739317&loc=d3e4926-128472 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7000-128479 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1392-128463 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1486-128463 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6927-128479 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1497-128463 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1490-128463 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7008-128479 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=39739317&loc=d3e4845-128472 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1500-128463 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1524-128463 + Details
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