XML 32 R11.htm IDEA: XBRL DOCUMENT v3.24.2.u1
BUSINESS COMBINATIONS
 6 Months Ended
Jun. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
BUSINESS COMBINATIONS BUSINESS COMBINATIONS
Subsequent to June 30, 2024, we completed four acquisitions, three of which are in our Mid-Atlantic region, including Whitetail Disposal, Inc. and LMR Disposal, LLC, which together include collection operations in eastern Pennsylvania and western New Jersey.
In the six months ended June 30, 2024, we acquired one business, a tuck-in solid waste collection businesses in our Eastern region. In the six months ended June 30, 2023, we acquired two businesses: the equity interests of four wholly owned subsidiaries of GFL Environmental Inc., which included solid waste collection, transfer and recycling operations in Pennsylvania, Maryland and Delaware (“GFL Acquisition”); and a solid waste business in our Western region.
The operating results of the business acquired prior to June 30, 2024 have been included in the accompanying unaudited consolidated statements of operations from each date of acquisition, and the purchase price has been allocated to the net assets acquired based on fair values at the date of acquisition with the residual amounts recorded as goodwill. Purchase price allocations are based on information existing at the acquisition dates or upon closing the transactions. Acquired intangible assets other than goodwill that are subject to amortization may include customer relationships, trade names and covenants not-to-compete. Such assets are amortized over a two-year to ten-year period from the date of acquisition.
Goodwill acquired is primarily associated with the value of projected discounted cash flows, based on the current and anticipated operating performance of the business, in excess of the specific values allocated to other assets, new growth opportunities arising from the acquisitions, and expected synergies from combining the acquired businesses with our existing operations and implementing our operating strategies. Substantially all amounts recorded to goodwill are expected to be deductible for tax purposes.
A summary of the purchase price and the purchase price allocation for acquisitions follows:
 Six Months Ended
June 30,
 20242023
Purchase Price:
Cash used in acquisitions, net of cash acquired$748 $544,359 
Holdbacks
— 1,900 
Total consideration$748 $546,259 
Allocated as follows:
Current assets$— $15,364 
Property, plant and equipment:
Land— 2,213 
Buildings and improvements— 8,666 
Machinery and equipment282 90,276 
Operating lease right-of-use assets— 11,260 
Intangible assets:
Covenants not-to-compete75 10,550 
Customer relationships38 93,000 
Deferred tax liability— (5,160)
Current liabilities(2)(15,195)
Operating lease liabilities, less current portion— (9,887)
Fair value of assets acquired and liabilities assumed393 201,087 
Excess purchase price allocated to goodwill$355 $345,172 
Purchase price allocations are preliminary and subject to revision upon finalization of third-party valuations over each respective one-year measurement period. Accordingly, the purchase price allocations for the six months ended June 30, 2024 are subject to change. Amounts in the six months ended June 30, 2023 were preliminary as disclosed based on information existing at the acquisition dates or upon closing the transaction and have since been updated based upon the finalization of third-party valuations, including the value of certain tangible and intangible assets acquired.
Unaudited pro forma combined operational results prepared as though each acquisition completed since the beginning of the prior fiscal year had occurred as of January 1, 2023 is as follows:
 Three Months Ended
June 30,		Six Months Ended
June 30,
 2024202320242023
Revenues$377,199 $365,644 $718,315 $706,384 
Operating income$23,028 $26,792 $29,894 $41,353 
Net income$7,012 $7,133 $2,913 $12,391 
Basic earnings per share attributable to common stockholders:
Weighted average common shares outstanding58,109 52,885 58,070 52,331 
Basic earnings per common share$0.12 $0.13 $0.05 $0.24 
Diluted earnings per share attributable to common stockholders:
Weighted average common shares outstanding58,199 52,980 58,161 52,427 
Diluted earnings per common share$0.12 $0.13 $0.05 $0.24 
The unaudited pro forma results set forth in the table above have been prepared for comparative purposes only and are not necessarily indicative of the actual results of operations had the acquisitions occurred as of January 1, 2023 or of the results of our future operations. Furthermore, the unaudited pro forma results do not give effect to all cost savings or incremental costs that may occur as the result of the integration and consolidation of the completed acquisitions.