Discontinued Operations

3 Months Ended

Mar. 31, 2019

Discontinued Operations Disclosure [Text Block]

5. Discontinued Operations

On January 22, 2018, the Company sold substantially all the assets of its wholly owned subsidiary, Denville, for approximately $20.0 million, which includes a $3.0 million earn-out provision (the Denville Transaction). Upon the closing of the transaction, the Company received $15.7 million. The $3.0 million earn-out provision represents consideration that is contingent on Denville achieving certain performance metrics over a period of two years.

The following table is a reconciliation of the major line items of income from discontinued operations presented within the Company’s consolidated statements of operations for the three months ended March 31, 2019 and 2018.

	Three Months Ended
	March 31,
	2019			2018
	(in thousands)
Revenues	$	-	$	893
Cost of revenues		-		(534)
Operating and other expenses		-		(673)
Gain on disposal of discontinued operations		-		1,227
Income from discontinued operations before income taxes	$	-	$	913
Income tax benefit		-		(873)
Income from discontinued operations		-		1,786

Total operating and investing cash flows for Denville in the Company’s consolidated statements of cash flows for the three months ended March 31, 2018, were immaterial There were no operating or investing cash flows for Denville in the Company’s consolidated statements of cash flows for the three months ended March 31, 2019.