Discontinued Operations

6 Months Ended

Jun. 30, 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 included 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 represented consideration that was contingent on Denville achieving certain performance metrics with respect to 2018 and 2019 (

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 and six months ended June 30, 2018.

	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2018		2018
	(in thousands)
Revenues	$	-	$	893
Cost of revenues		-		(534)
Operating and other expenses		-		(673)
Gain on disposal of discontinued operations		24		1,251
Income from discontinued operations before income taxes		24		937
Income tax benefit		(10)		(883)
Income from discontinued operations	$	34	$	1,820

During the three months ended June 30, 2019, the Company received a release of an escrow amount of $1.0 million related to the Denville Transaction, which is included in the investing cash flows for disposition in the Company’s consolidated statements of cash flows for the six months ended June 30, 2019. Total operating cash flows for Denville in the Company’s consolidated statements of cash flows for the six months ended June 30, 2018, were immaterial.