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
2019 Acquisitions	Date		Acquisition Type		Cash Paid		Seller Obligations		Total Purchase Price		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

Acquisition-related costs recorded within administrative expenses on the Condensed Consolidated Statements of Operations and Comprehensive Income amounted to $0.5 million and $1.2 million for the three and six months ended June 30, 2020 respectively, and $0.5 million and $1.1 million for the three and six months ended June 30, 2019, respectively. The goodwill recognized in conjunction with these business combinations represents the excess cost of the acquired entity over the net amount assigned to assets acquired and liabilities assumed. We expect to deduct approximately $4.5 million of goodwill for tax purposes as a result of 2020 acquisitions.

Purchase Price Allocations

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

Contingent consideration is included as “seller obligations” in the above table or within “fair value of assets acquired” if subsequently paid during the period presented. These contingent payments consist primarily of earnouts based on performance that are recorded at fair value at the time of acquisition, and/or

non-complete

agreements and amounts based on working capital calculations. When these payments are expected to be made over one year from the acquisition date, the contingent consideration is discounted to net present value using our weighted average cost of capital (WACC), when appropriate.

Further adjustments to the allocation for each acquisition still under its measurement period are expected as third-party or internal valuations are finalized, certain tax aspects of the transaction are completed, contingent consideration is settled and customary post-closing reviews are concluded during the measurement period attributable to each individual business combination. As a result, insignificant adjustments to the fair value of assets acquired, and in some cases total purchase price, have been made to certain business combinations since the date of acquisition and future adjustments may be made through the end of each measurement period. Goodwill and intangibles per the above table may not agree to the total gross increases of these assets as shown in Note 6, Goodwill and Intangibles, during each of the six months ended June 30, 2020 and 2019 due to minor adjustments to goodwill for the allocation of certain acquisitions still under measurement as well as other immaterial intangible assets added during the ordinary course of business. In addition, goodwill and intangibles increased during the six months ended June 30, 2019 due to small

tuck-in

acquisitions merged into existing operations that do not appear in the above table as discussed above.

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 Information

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

Unaudited pro forma net income reflects additional intangible asset amortization expense of $0.1 million and $0.3 million for the three and six months ended June 30, 2020, respectively, and $1.0 million and $2.1 million for the three and six months ended June 30, 2019, respectively, as well as additional income tax expense of $35 thousand and $0.1 million for the three and six months ended June 30, 2020 and $0.3 million and $0.6 million for the three and six months ended June 30, 2019, respectively, that would have been recorded had the 2020 acquisitions taken place on January 1, 2019 and the 2019 acquisitions taken place on January 1, 2018.