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Business Combinations (Tables) | 6 Months Ended
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Jun. 30, 2020
Business Combinations [Abstract] |
Schedule of Business Combinations | For the three and six months ended June 30, 2020 (in thousands):
2020 Acquisitions |  | Date |  |  | Acquisition Type |  |  | Cash Paid |  |  | Seller Obligations |  |  | Total Purchase Price |  |  | Three months ended June 30, 2020 |  |  | Six months ended June 30, 2020 |
| Revenue |  |  | Net Income (Loss) |  |  | Revenue |  |  | Net Income (Loss) |
Royals |  |  | 2/29/2020 |  |  |  | Asset |  |  | $ | 7,590 |  |  | $ | 2,500 |  |  | $ | 10,090 |  |  | $ | 3,023 |  |  | $ | 436 |  |  | $ | 3,807 |  |  | $ | 349 |
Other |  |  | Various |  |  |  | Asset |  |  |  | 5,035 |  |  |  | 1,537 |  |  |  | 6,572 |  |  |  | 538 |  |  |  | (18 | ) |  |  | 764 |  |  |  | (39 | )
|  |  |  |  |  |  |  |  |  | $ | 12,625 |  |  | $ | 4,037 |  |  | $ | 16,662 |  |  | $ | 3,561 |  |  | $ | 418 |  |  | $ | 4,571 |  |  | $ | 310 |
For the three and six months ended June 30, 2019 (in thousands):
2019 Acquisitions |  | Date |  |  | Acquisition Type |  |  | Cash Paid |  |  | Seller Obligations |  |  | Total Purchase Price |  |  | Three months ended June 30, 2019 |  |  | Six months ended June 30, 2019 |
| Revenue |  |  | Net Income (Loss) |  |  | Revenue |  |  | Net Income (Loss) |
1st State Insulation |  |  | 3/18/2019 |  |  |  | Asset |  |  | $ | 5,125 |  |  | $ | 1,355 |  |  | $ | 6,480 |  |  | $ | 2,942 |  |  | $ | 177 |  |  | $ | 3,430 |  |  | $ | 200 |
Expert Insulation |  |  | 6/24/2019 |  |  |  | Asset |  |  |  | 16,165 |  |  |  | 1,993 |  |  |  | 18,158 |  |  |  | 192 |  |  |  | (33 | ) |  |  | 192 |  |  |  | (33 | )
|  |  |  |  |  |  |  |  |  | $ | 21,290 |  |  | $ | 3,348 |  |  | $ | 24,638 |  |  | $ | 3,134 |  |  | $ | 144 |  |  | $ | 3,622 |  |  | $ | 167 |
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):
|  | As of June 30, 2020 |  |  | As of June 30, 2019 |
|  | Royals |  |  | Other |  |  | Total |  |  | 1st State |  |  | Expert |  |  | Total |
Estimated fair values: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable |  | $ | 2,848 |  |  | $ | 1,370 |  |  | $ | 4,218 |  |  | $ | — |  |  | $ | 1,796 |  |  | $ | 1,796 |
Inventories |  |  | 305 |  |  |  | 310 |  |  |  | 615 |  |  |  | 291 |  |  |  | 723 |  |  |  | 1,014 |
Other current assets |  |  | 430 |  |  |  | 145 |  |  |  | 575 |  |  |  | — |  |  |  | — |  |  |  | — |
Property and equipment |  |  | 598 |  |  |  | 351 |  |  |  | 949 |  |  |  | 989 |  |  |  | 235 |  |  |  | 1,224 |
Intangibles |  |  | 3,930 |  |  |  | 2,996 |  |  |  | 6,926 |  |  |  | 3,382 |  |  |  | 6,740 |  |  |  | 10,122 |
Goodwill |  |  | 3,015 |  |  |  | 1,718 |  |  |  | 4,733 |  |  |  | 1,857 |  |  |  | 8,545 |  |  |  | 10,402 |
Other non-current assets |  |  | 58 |  |  |  | 16 |  |  |  | 74 |  |  |  | — |  |  |  | 161 |  |  |  | 161 |
Accounts payable and other current liabilities |  |  | (1,059 | ) |  |  | (203 | ) |  |  | (1,262 | ) |  |  | (39 | ) |  |  | (42 | ) |  |  | (81 | )
Deferred income tax liabilities |  |  | (35 | ) |  |  | — |  |  |  | (35 | ) |  |  | — |  |  |  | — |  |  |  | — |
Other long-term liabilities |  |  | — |  |  |  | (131 | ) |  |  | (131 | ) |  |  | — |  |  |  | — |  |  |  | — |
Fair value of assets acquired and purchase price |  |  | 10,090 |  |  |  | 6,572 |  |  |  | 16,662 |  |  |  | 6,480 |  |  |  | 18,158 |  |  |  | 24,638 |
Less seller obligations |  |  | 2,500 |  |  |  | 1,537 |  |  |  | 4,037 |  |  |  | 1,355 |  |  |  | 1,993 |  |  |  | 3,348 |
Cash paid |  | $ | 7,590 |  |  | $ | 5,035 |  |  | $ | 12,625 |  |  | $ | 5,125 |  |  | $ | 16,165 |  |  | $ | 21,290 |
Estimates of Acquired Intangible Assets | Estimates of acquired intangible assets related to the acquisitions are as follows (in thousands):
|  | For the six months ended June 30, |
|  | 2020 |  |  | 2019 |
Acquired intangibles assets |  | Estimated Fair Value |  |  | Weighted Average Estimated Useful Life (yrs.) |  |  | Estimated Fair Value |  |  | Weighted Average Estimated Useful Life (yrs.) |
Customer relationships |  | $ | 3,781 |  |  |  | 8 |  |  | $ | 7,100 |  |  |  | 8 |
Trademarks and trade names |  |  | 1,796 |  |  |  | 15 |  |  |  | 1,999 |  |  |  | 15 |
Non-competition agreements |  |  | 426 |  |  |  | 5 |  |  |  | 1,023 |  |  |  | 5 |
Backlog |  |  | 923 |  |  |  | 1.5 |  |  |  | — |  |  |  | — |
Pro Forma Results of Operations | The unaudited pro forma information for the combined results of the Company has been prepared as if the 2020 acquisitions had taken place on January 1, 2019 and the 2019 acquisitions had taken place on January 1, 2018. 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, 2019 and 2018, respectively, and the unaudited pro forma information does not purport to be indicative of future financial operating results (in thousands, except per share data):
|  | Unaudited pro forma for the three months ended June 30, |  |  | Unaudited pro forma for the six months ended June 30, |
|  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Net revenue |  | $ | 395,437 |  |  | $ | 386,953 |  |  | $ | 796,021 |  |  | $ | 747,502 |
Net income |  |  | 25,434 |  |  |  | 19,781 |  |  |  | 41,622 |  |  |  | 29,416 |
Basic net income per share |  |  | 0.86 |  |  |  | 0.66 |  |  |  | 1.41 |  |  |  | 0.99 |
Diluted net income per share |  |  | 0.86 |  |  |  | 0.66 |  |  |  | 1.40 |  |  |  | 0.99 |

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