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v3.19.3.a.u2

Business Combinations (Tables) | 12 Months Ended
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Dec. 31, 2019
Business Combinations [Abstract] |
Schedule of Business Combinations | For the year ended December 31, 2019 (in thousands):
2019 Acquisitions |  | Date |  |  | Acquisition Type |  |  | Cash Paid |  |  | Seller Obligations |  |  | Total Purchase Price |  |  | Revenue |  |  | Net Income ( Loss ) |
1st State Insulation |  |  | 3/18/2019 |  |  |  | Asset |  |  | $ | 5,125 |  |  | $ | 1,355 |  |  | $ | 6,480 |  |  | $ | 9,828 |  |  | $ | 476 |
Expert Insulation |  |  | 6/24/2019 |  |  |  | Asset |  |  |  | 16,165 |  |  |  | 1,993 |  |  |  | 18,158 |  |  |  | 6,484 |  |  |  | 155 |
Premier |  |  | 11/18/2019 |  |  |  | Share |  |  |  | 25,000 |  |  |  | 2,765 |  |  |  | 27,765 |  |  |  | 2,161 |  |  |  | (62 | )
Other |  |  | Various |  |  |  | Asset |  |  |  | 5,750 |  |  |  | 1,430 |  |  |  | 7,180 |  |  |  | 3,339 |  |  |  | 23 |
Total |  |  |  |  |  |  |  |  |  | $ | 52,040 |  |  | $ | 7,543 |  |  | $ | 59,583 |  |  | $ | 21,812 |  |  | $ | 592 |
For the year ended December 31, 2018 (in thousands):
Name |  | Date |  | Acquisition Type |  | Cash Paid |  |  | Seller Obligations |  |  | Total Purchase Price |  |  | Revenue |  |  | Net Income (Loss) |
CDG |  | 3/19/2018 |  | Asset |  | $ | 9,440 |  |  | $ | 1,973 |  |  | $ | 11,413 |  |  | $ | 11,466 |  |  | $ | 531 |
AFT |  | 10/31/2018 |  | Asset |  |  | 19,707 |  |  |  | 1,510 |  |  |  | 21,217 |  |  |  | 3,530 |  |  |  | (13 | )
Other |  | Various |  | Shares/Asset |  |  | 28,593 |  |  |  | 4,057 |  |  |  | 32,650 |  |  |  | 24,329 |  |  |  | 639 |
Total |  |  |  |  |  | $ | 57,740 |  |  | $ | 7,540 |  |  | $ | 65,280 |  |  | $ | 39,325 |  |  | $ | 1,157 |
For the year ended December 31, 2017 (in thousands):
Name |  | Date |  | Acquisition Type |  |  | Cash Paid |  |  | Seller Obligations |  |  | Fair Value of Common Stock Issued |  |  | Total Purchase Price |  |  | Revenue |  |  | Net (Loss) Income |
Alpha (1) |  |  | 1/5/2017 |  |  | Share |  |  | $ | 103,810 |  |  | $ | 2,002 |  |  | $ | 10,859 |  |  | $ | 116,671 |  |  | $ | 116,070 |  |  | $ | (1,148 | )
Columbia |  |  | 6/26/2017 |  |  | Asset |  |  |  | 8,768 |  |  |  | 225 |  |  |  | — |  |  |  | 8,993 |  |  |  | 6,046 |  |  |  | 86 |
Astro |  |  | 9/18/2017 |  |  | Asset |  |  |  | 9,144 |  |  |  | 482 |  |  |  | — |  |  |  | 9,626 |  |  |  | 1,829 |  |  |  | 11 |
Other |  |  | Various |  |  | Asset |  |  |  | 15,645 |  |  |  | 2,419 |  |  |  | — |  |  |  | 18,064 |  |  |  | 20,457 |  |  |  | 573 |
Total |  |  |  |  |  |  |  |  | $ | 137,367 |  |  | $ | 5,128 |  |  | $ | 10,859 |  |  | $ | 153,354 |  |  | $ | 144,402 |  |  | $ | (478 | )
(1) | The cash paid included $21.7 million in contingent consideration to satisfy purchase price adjustments related to cash and net working capital requirements, earnout consideration based on Alpha’s change in EBITDA from 2015 and a customary holdback. These payments were based on fair value of each contingent payment at the time of acquisition and subsequently adjusted during the measurement period. We issued 282,577 shares of our common stock with a fair value of $10.9 million.
Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed | The estimated fair values of the assets acquired and liabilities assumed for the acquisitions, as well as total purchase prices and cash paid, approximated the following (in thousands):
|  | 2019 |
|  | 1st State |  |  | Expert |  |  | Premier |  |  | Other |  |  | Total |
Estimated fair values: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash |  | $ | — |  |  | $ | — |  |  | $ | 334 |  |  | $ | — |  |  | $ | 334 |
Accounts receivable |  |  | — |  |  |  | 1,796 |  |  |  | 2,930 |  |  |  | 479 |  |  |  | 5,205 |
Inventories |  |  | 291 |  |  |  | 723 |  |  |  | 1,242 |  |  |  | 410 |  |  |  | 2,666 |
Other current assets |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3 |  |  |  | 3 |
Property and equipment |  |  | 989 |  |  |  | 235 |  |  |  | 876 |  |  |  | 887 |  |  |  | 2,987 |
Intangibles |  |  | 3,382 |  |  |  | 6,740 |  |  |  | 14,300 |  |  |  | 3,619 |  |  |  | 28,041 |
Goodwill |  |  | 1,857 |  |  |  | 8,545 |  |  |  | 10,238 |  |  |  | 1,765 |  |  |  | 22,405 |
Other non-current assets |  |  | — |  |  |  | 161 |  |  |  | 329 |  |  |  | 41 |  |  |  | 531 |
Accounts payable and other current liabilities |  |  | (39 | ) |  |  | (42 | ) |  |  | (2,484 | ) |  |  | (24 | ) |  |  | (2,589 | )
Fair value of assets acquired and purchase price |  |  | 6,480 |  |  |  | 18,158 |  |  |  | 27,765 |  |  |  | 7,180 |  |  |  | 59,583 |
Less seller obligations |  |  | 1,355 |  |  |  | 1,993 |  |  |  | 2,765 |  |  |  | 1,430 |  |  |  | 7,543 |
Cash paid |  | $ | 5,125 |  |  | $ | 16,165 |  |  | $ | 25,000 |  |  | $ | 5,750 |  |  | $ | 52,040 |
|  | 2018 |
|  | CDG |  |  | AFT |  |  | Other |  |  | Total |
Estimated fair values: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable |  | $ | 1,731 |  |  | $ | — |  |  | $ | 4,104 |  |  | $ | 5,835 |
Inventories |  |  | 514 |  |  |  | 565 |  |  |  | 1,136 |  |  |  | 2,215 |
Other current assets |  |  | 28 |  |  |  | — |  |  |  | 918 |  |  |  | 946 |
Property and equipment |  |  | 933 |  |  |  | 2,882 |  |  |  | 2,169 |  |  |  | 5,984 |
Intangibles |  |  | 3,711 |  |  |  | 13,470 |  |  |  | 18,904 |  |  |  | 36,085 |
Goodwill |  |  | 4,898 |  |  |  | 4,415 |  |  |  | 7,766 |  |  |  | 17,079 |
Other non-current assets |  |  | 36 |  |  |  | 13 |  |  |  | 82 |  |  |  | 131 |
Accounts payable and other current liabilities |  |  | (438 | ) |  |  | (128 | ) |  |  | (2,429 | ) |  |  | (2,995 | )
Fair value of assets acquired and purchase price |  |  | 11,413 |  |  |  | 21,217 |  |  |  | 32,650 |  |  |  | 65,280 |
Less fair value of common stock issued |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Less seller obligations |  |  | 1,973 |  |  |  | 1,510 |  |  |  | 4,057 |  |  |  | 7,540 |
Cash paid |  | $ | 9,440 |  |  | $ | 19,707 |  |  | $ | 28,593 |  |  | $ | 57,740 |
|  | 2017 |
|  | Alpha |  |  | Columbia |  |  | Astro |  |  | Other |  |  | Total |
Estimated fair values: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash |  | $ | 247 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 247 |
Accounts receivable |  |  | 29,851 |  |  |  | 989 |  |  |  | 924 |  |  |  | 3,157 |  |  |  | 34,921 |
Inventories |  |  | 1,852 |  |  |  | 704 |  |  |  | 296 |  |  |  | 1,544 |  |  |  | 4,396 |
Other current assets |  |  | 4,500 |  |  |  | 8 |  |  |  | 36 |  |  |  | 96 |  |  |  | 4,640 |
Property and equipment |  |  | 1,528 |  |  |  | 659 |  |  |  | 640 |  |  |  | 1,820 |  |  |  | 4,647 |
Intangibles |  |  | 57,200 |  |  |  | 4,760 |  |  |  | 5,168 |  |  |  | 9,688 |  |  |  | 76,816 |
Goodwill |  |  | 38,511 |  |  |  | 2,209 |  |  |  | 2,932 |  |  |  | 4,190 |  |  |  | 47,842 |
Other non-current assets |  |  | 383 |  |  |  | 36 |  |  |  | — |  |  |  | 219 |  |  |  | 638 |
Accounts payable and other current liabilities |  |  | (17,401 | ) |  |  | (372 | ) |  |  | (370 | ) |  |  | (2,650 | ) |  |  | (20,793 | )
Fair value of assets acquired |  |  | 116,671 |  |  |  | 8,993 |  |  |  | 9,626 |  |  |  | 18,064 |  |  |  | 153,354 |
Less fair value of common stock issued |  |  | 10,859 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 10,859 |
Less seller obligations |  |  | 2,002 |  |  |  | 225 |  |  |  | 482 |  |  |  | 2,419 |  |  |  | 5,128 |
Cash paid |  | $ | 103,810 |  |  | $ | 8,768 |  |  | $ | 9,144 |  |  | $ | 15,645 |  |  | $ | 137,367 |
Estimates of Acquired Intangible Assets | Estimates of acquired intangible assets related to the acquisitions are as follows (dollars in thousands):
|  | 2019 |  |  | 2018 |  |  | 2017 |
Acquired intangibles assets |  | Estimated Fair Value |  |  | Weighted Average Estimated Useful Life (yrs) |  |  | Estimated Fair Value |  |  | Weighted Average Estimated Useful Life (yrs) |  |  | Estimated Fair Value |  |  | Weighted Average Estimated Useful Life (yrs) |
Customer relationships |  | $ | 20,659 |  |  |  | 8 |  |  | $ | 27,149 |  |  |  | 8 |  |  | $ | 39,922 |  |  |  | 8 |
Trademarks and trade names |  |  | 5,286 |  |  |  | 15 |  |  |  | 6,075 |  |  |  | 15 |  |  |  | 20,667 |  |  |  | 15 |
Non-competition agreements |  |  | 2,096 |  |  |  | 5 |  |  |  | 2,401 |  |  |  | 5 |  |  |  | 2,628 |  |  |  | 5 |
Backlog |  |  | — |  |  |  | — |  |  |  | 460 |  |  |  | 2 |  |  |  | 13,600 |  |  |  | 1.5 |
Pro Forma Results of Operations | The unaudited pro forma information has been prepared as if the 2019 acquisitions had taken place on January 1, 2018, the 2018 acquisitions had taken place on January 1, 2017 and the 2017 acquisitions had taken place on January 1, 2016. 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, 2018, 2017 and 2016 and the unaudited pro forma information does not purport to be indicative of future financial operating results (in thousands, except for per share data).
|  | Unaudited Pro Forma for the years ended December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
Net revenue |  | $ | 1,549,797 |  |  | $ | 1,436,713 |  |  | $ | 1,246,017 |
Net income |  |  | 70,389 |  |  |  | 61,148 |  |  |  | 48,016 |
Basic net income per share |  |  | 2.37 |  |  |  | 1.97 |  |  |  | 1.52 |
Diluted net income per share |  |  | 2.36 |  |  |  | 1.96 |  |  |  | 1.51 |

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