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v3.23.3

Business Combinations (Tables) | 9 Months Ended
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Sep. 30, 2023
Business Combination and Asset Acquisition [Abstract] |
Schedule of Business Combinations | For the three and nine months ended September 30, 2023 (in thousands):
|  |  |  |  |  |  |  |  |  |  |  | Three months ended September 30, 2023 |  | Nine months ended September 30, 2023
2023 Acquisitions |  | Date |  | Acquisition Type |  | Cash Paid |  | Seller Obligations |  | Total Purchase Price |  | Revenue |  | Net Income |  | Revenue |  | Net Income
Anchor |  | 3/12/2023 |  | Share |  | $ | 35,928 |  |  | $ | 2,756 |  |  | $ | 38,684 |  |  | $ | 9,288 |  |  | $ | 321 |  |  | $ | 20,805 |  |  | $ | 818 |
Other |  | Various |  | Asset |  | 8,927 |  |  | 615 |  |  | 9,542 |  |  | 2,711 |  |  | 225 |  |  | 4,591 |  |  | 212 |
|  |  |  |  |  | $ | 44,855 |  |  | $ | 3,371 |  |  | $ | 48,226 |  |  | $ | 11,999 |  |  | $ | 546 |  |  | $ | 25,396 |  |  | $ | 1,030 |
For the three and nine months ended September 30, 2022 (in thousands):
|  |  |  |  |  |  |  |  |  |  |  | Three months ended September 30, 2022 |  | Nine months ended September 30, 2022
2022 Acquisitions |  | Date |  | Acquisition Type |  | Cash Paid |  | Seller Obligations |  | Total Purchase Price |  | Revenue |  | Net Income (Loss) |  | Revenue |  | Net Income (Loss)
CAS |  | 4/11/2022 |  | Share |  | $ | 55,150 |  |  | $ | 27,335 |  |  | $ | 82,485 |  |  | $ | 13,404 |  |  | $ | (1,048) |  |  | $ | 26,128 |  |  | $ | (805) |
Other |  | Various |  | Share/Asset |  | 20,959 |  |  | 2,607 |  |  | 23,566 |  |  | 6,945 |  |  | 204 |  |  | 12,249 |  |  | 418 |
|  |  |  |  |  | $ | 76,109 |  |  | $ | 29,942 |  |  | $ | 106,051 |  |  | $ | 20,349 |  |  | $ | (844) |  |  | $ | 38,377 |  |  | $ | (387) |
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):
| Nine months ended September 30, 2023 |  |
| Anchor |  |  |  |  |  | Other |  | Total |  |
Estimated fair values: |  |  |  |  |  |  |  |  |  |  |
Cash | $ | 10 |  |  |  |  |  |  | $ | — |  |  | $ | 10 |  |  |
Accounts receivable | 5,000 |  |  |  |  |  |  | 473 |  |  | 5,473 |  |  |
Inventories | 1,613 |  |  |  |  |  |  | 490 |  |  | 2,103 |  |  |
Other current assets | 1,862 |  |  |  |  |  |  | — |  |  | 1,862 |  |  |
Property and equipment | 2,309 |  |  |  |  |  |  | 1,250 |  |  | 3,559 |  |  |
Operating lease right-of-use asset | — |  |  |  |  |  |  | 182 |  |  | 182 |  |  |
Intangibles | 16,420 |  |  |  |  |  |  | 5,114 |  |  | 21,534 |  |  |
Goodwill | 13,364 |  |  |  |  |  |  | 2,496 |  |  | 15,860 |  |  |
Other non-current assets | 184 |  |  |  |  |  |  | 50 |  |  | 234 |  |  |
Accounts payable and other current liabilities | (2,078) |  |  |  |  |  |  | (398) |  |  | (2,476) |  |  |
Other long-term liabilities | — |  |  |  |  |  |  | (115) |  |  | (115) |  |  |
Fair value of assets acquired and purchase price | 38,684 |  |  |  |  |  |  | 9,542 |  |  | 48,226 |  |  |
Less seller obligations | 2,756 |  |  |  |  |  |  | 615 |  |  | 3,371 |  |  |
Cash paid | $ | 35,928 |  |  |  |  |  |  | $ | 8,927 |  |  | $ | 44,855 |  |  |
| Nine months ended September 30, 2022
| CAS |  |  |  |  |  | Other |  | Total
Estimated fair values: |  |  |  |  |  |  |  |  |
Cash | $ | 243 |  |  |  |  |  |  | $ | 87 |  |  | $ | 330 |
Accounts receivable | 3,502 |  |  |  |  |  |  | 3,595 |  |  | 7,097 |
Inventories | 13,443 |  |  |  |  |  |  | 1,729 |  |  | 15,172 |
Other current assets | 53 |  |  |  |  |  |  | 23 |  |  | 76 |
Property and equipment | 2,590 |  |  |  |  |  |  | 2,489 |  |  | 5,079 |
Operating lease right-of-use asset | 844 |  |  |  |  |  |  | 66 |  |  | 910 |
Intangibles | 34,900 |  |  |  |  |  |  | 9,500 |  |  | 44,400 |
Goodwill | 32,867 |  |  |  |  |  |  | 6,330 |  |  | 39,197 |
Other non-current assets | — |  |  |  |  |  |  | 56 |  |  | 56 |
Accounts payable and other current liabilities | (5,388) |  |  |  |  |  |  | (287) |  |  | (5,675) |
Other long-term liabilities | (569) |  |  |  |  |  |  | (22) |  |  | (591) |
Fair value of assets acquired and purchase price | 82,485 |  |  |  |  |  |  | 23,566 |  |  | 106,051 |
Less seller obligations | 27,335 |  |  |  |  |  |  | 2,607 |  |  | 29,942 |
Cash paid | $ | 55,150 |  |  |  |  |  |  | $ | 20,959 |  |  | $ | 76,109 |
Estimates of Acquired Intangible Assets | Estimates of acquired intangible assets related to the acquisitions are as follows (in thousands):
| For the nine months ended September 30,
| 2023 |  | 2022
Acquired intangibles assets | Estimated Fair Value |  | Weighted Average Estimated Useful Life (yrs.) |  | Estimated Fair Value |  | Weighted Average Estimated Useful Life (yrs.)
Customer relationships | $ | 13,755 |  |  | 12 |  | $ | 29,606 |  |  | 12
Trademarks and tradenames | 6,442 |  |  | 15 |  | 13,228 |  |  | 15
Non-competition agreements | 517 |  |  | 5 |  | 1,566 |  |  | 5
Backlog | 820 |  |  | 1 |  | — |  |  | 0
Pro Forma Results of Operations | 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, 2022 and 2021, 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 September 30, |  | Unaudited pro forma for the nine months ended September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Net revenue | $ | 707,482 |  |  | $ | 748,325 |  |  | $ | 2,073,593 |  |  | $ | 2,080,848 |
Net income | 68,098 |  |  | 63,169 |  |  | 179,759 |  |  | 159,782 |
Basic net income per share | 2.41 |  |  | 2.22 |  |  | 6.39 |  |  | 5.54 |
Diluted net income per share | 2.40 |  |  | 2.21 |  |  | 6.35 |  |  | 5.51 |

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