XML 20 R10.htm IDEA: XBRL DOCUMENT
v3.22.2

Note 2 - Business Combination | 6 Months Ended
--- | ---
Jun. 30, 2022
Notes to Financial Statements |
Business Combination Disclosure [Text Block] |
2. | Business Combination
On October 5, 2021, the Company completed the acquisition of 100% of Park Environmental Equipment, LLC for a purchase price of approximately $88.4 million in cash, subject to a post-closing adjustment based on changes in net working capital, and is included in the Precast segment for all periods following the acquisition date. ParkUSA is a precast concrete and steel fabrication-based company that develops and manufactures water, wastewater, and environmental solutions. Operations continue with ParkUSA’s previous management and workforce at its three Texas manufacturing facilities located in Houston, Dallas, and San Antonio. The following table summarizes the purchase consideration and fair value of the assets acquired and liabilities assumed as of October 5, 2021 (in thousands):
Assets |  |  |  |
Cash and cash equivalents |  | $ | 278 |
Trade and other receivables |  |  | 11,034 |
Inventories |  |  | 12,773 |
Prepaid expenses and other |  |  | 293 |
Property and equipment |  |  | 8,076 |
Operating lease right-of-use assets |  |  | 58,301 |
Intangible assets |  |  | 31,000 |
Deferred income taxes |  |  | 347 |
Total assets acquired |  |  | 122,102 |
Liabilities |  |  |  |
Accounts payable |  |  | 2,029 |
Accrued liabilities |  |  | 4,067 |
Operating lease liabilities |  |  | 58,301 |
Total liabilities assumed |  |  | 64,397 |
Goodwill |  |  | 30,699 |
Total purchase consideration |  | $ | 88,404 |
The tangible and intangible assets acquired and liabilities assumed were recognized based on their estimated fair values on the acquisition date, with the excess purchase consideration recorded as goodwill. The asset and liability fair value measurements primarily related to inventories, identifiable intangible assets, deferred income taxes, accrued liabilities, and goodwill, are preliminary and subject to change as additional information is obtained. The acquisition accounting will be finalized as soon as practicable within the measurement period, but not later than one year following the acquisition date. The following table summarizes the components of the intangible assets acquired and their estimated useful lives:
|  | Estimated Useful L ife |  |  | Fair Value |
|  | (In years) |  |  | (In thousands) |
Customer relationships |  |  | 10.0 |  |  | $ | 19,800 |
Trade names and trademarks |  |  | 10.0 |  |  |  | 9,600 |
Patents |  |  | 21.0 |  |  |  | 1,300 |
Backlog |  |  | 0.6 |  |  |  | 300 |
Total intangible assets |  |  | 10.2 |  |  | $ | 31,000 |
Goodwill arose from the acquisition of an assembled workforce, expansion of product offerings, and management’s industry know-how, and is expected to be deductible for tax purposes. The Company incurred transaction costs associated with this acquisition of $0.1 million during the three and six months ended June 30, 2022 and $0.1 million and $0.2 million during the three and six months ended June 30, 2021, respectively. These transaction costs are included in Selling, general, and administrative expense in the Condensed Consolidated Statements of Operations. Unaudited Pro Forma Disclosures The following unaudited pro forma summary presents the consolidated results of the Company as if the acquisition of ParkUSA had occurred on January 1 of the year prior to the acquisition (in thousands):
|  | Three Months E nded |  |  | Six Months E nded |
|  | June 30, 2021 |  |  | June 30, 2021 |
Net sales |  | $ | 92,130 |  |  | $ | 177,660 |
Net income |  |  | 5,798 |  |  |  | 9,770 |
This unaudited pro forma consolidated financial data is included only for the purpose of illustration and does not necessarily indicate what the operating results would have been if the acquisition of ParkUSA had occurred on January 1 of the year prior to the acquisition. Moreover, this information is not indicative of what the Company’s future operating results will be. The information prior to the acquisition is included based on prior accounting records maintained by ParkUSA. The pro forma amounts have been calculated after applying the Company’s accounting policies and adjusting the results of ParkUSA to reflect the additional depreciation and amortization that would have been charged assuming the fair value adjustments to property and equipment and intangible assets had been applied on January 1 of the year prior to the acquisition. Adjustments also include an increase of interest expense as if the Company’s debt obtained in connection with the acquisition of ParkUSA had been outstanding since January 1 of the year prior to the acquisition. The provision for income taxes has also been adjusted for all periods, based upon the foregoing adjustments to historical results.

X
- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI https://asc.fasb.org/topic&trid=2303972 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 5 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=128092470&loc=d3e4946-128472 + Details
Name: | us-gaap_BusinessCombinationDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration