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Business Combination (Notes) | 9 Months Ended
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Sep. 30, 2018
Business Combinations [Abstract] |
Business Combination Disclosure [Text Block] | On January 16, 2018, the Company entered into an Asset Purchase Agreement (the "Agreement") with Horizon Plastics International Inc., 1541689 Ontario Inc., 2551024 Ontario Inc. and Horizon Plastics de Mexico, S.A. de C.V. (collectively "Horizon Plastics"). Pursuant to the terms of the Agreement the Company acquired substantially all of the assets and assumed certain specified liabilities of Horizon Plastics for a cash purchase of $62,457,000, subject to a working capital closing adjustment and other customary holdbacks, which are still pending. The acquisition was funded through a combination of cash on hand and borrowings under the Amended and Restated Credit Agreement ("A/R Credit Agreement"), further described in Note 11, entered into with KeyBank National Association as administrative agent and various other financial institutions on January 16, 2018. The purpose of the acquisition was to increase the Company's process capabilities to include structural foam and structural web molding, expand its geographical footprint, and diversify the Company's customer base. Consideration was preliminarily allocated to assets acquired and liabilities assumed based on their fair values as of the acquisition date as follows:
Accounts Receivable |  | $ | 7,655,000 |
Inventory |  | 6,567,000 |
Other Current Assets |  | 642,000 |
Property and Equipment |  | 12,994,000 |
Intangibles |  | 17,520,000 |
Goodwill |  | 20,554,000 |
Accounts Payable |  | (3,181,000 | )
Other Current Liabilities |  | (294,000 | )
|  | $ | 62,457,000 |
The purchase price included consideration for strategic benefits, including an assembled workforce, operational infrastructure and synergistic revenue opportunities, which resulted in the recognition of goodwill. The goodwill is deductible for income tax purposes. The Company incurred $1,289,000 of expense for the nine months ended September 30, 2018 associated with the acquisition, which is recorded in selling, general and administrative expense. The amount preliminarily allocated to intangible assets has been attributed to the following categories and will be amortized over the useful lives of each individual asset identified on a straight-line basis as follows:
Acquired Intangible Assets | Estimated Fair Value | Estimated Useful Life (Years)
Non-competition Agreement | $ | 1,910,000 |  | 5
Trademarks | 1,610,000 |  | 25
Developed Technology | 4,420,000 |  | 7
Customer Relationships | 9,580,000 |  | 12
Total | $ | 17,520,000 |  |
The allocation of purchase price is preliminary and subject to completion upon obtaining the necessary remaining information, including (1) the identification and valuation of assets acquired and liabilities assumed, including intangible assets and related goodwill, and (2) the finalization of the opening balance sheet, including working capital settlements which are still pending. We have preliminarily valued the acquired assets and liabilities based on their estimated fair value. These estimates are subject to change as additional information becomes available. Any adjustments to the preliminary fair values will be made as such information becomes available and made within the customary measurement period. Pro Forma Information The unaudited pro forma information for the combined results of the Company has been prepared as if the 2018 acquisitions had taken place on January 1, 2017. 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, 2017 and the unaudited pro forma information does not purport to be indicative of future financial operating results.
| Pro forma for the three months ended September 30, |  | Pro forma for the nine months ended September 30,
| 2018 |  | 2017 |  | 2018 |  | 2017
Net revenue | $ | 64,676,000 |  |  | $ | 54,348,000 |  |  | $ | 198,993,000 |  |  | $ | 170,666,000 |
Net income (loss) | (1,693,000 | ) |  | 1,570,000 |  |  | 142,000 |  |  | 7,750,000 |
Net income (loss) per common share: |  |  |  |  |  |  |
Basic | $ | (0.22 | ) |  | $ | 0.20 |  |  | $ | 0.02 |  |  | $ | 1.01 |
Diluted | $ | (0.22 | ) |  | $ | 0.20 |  |  | $ | 0.02 |  |  | $ | 1.00 |
The unaudited pro forma net income includes the following adjustments that would have been recorded had the 2018 acquisition taken place on January 1, 2017.
| Pro forma for the three months ended September 30, |  | Pro forma for the nine months ended September 30,
| 2018 |  | 2017 |  | 2018 |  | 2017
Depreciation expense | $ | — |  |  | $ | 3,000 |  |  | $ | 55,000 |  |  | $ | 41,000 |
Amortization expense | — |  |  | 469,000 |  |  | 78,000 |  |  | 1,407,000 |
Interest (income) expense | (141,000 | ) |  | 364,000 |  |  | (204,000 | ) |  | 1,301,000 |
Non-recurring transaction costs | — |  |  | — |  |  | (1,289,000 | ) |  | — |
Income tax expense (benefit) | 31,000 |  |  | (251,000 | ) |  | 263,000 |  |  | (819,000 | )

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- 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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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