Quanta Services, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Acquisitions (Tables)

Acquisitions (Tables)

6 Months Ended

Jun. 30, 2019

Aggregate Consideration Paid or Payable and Allocation Net Assets

The following table summarizes the aggregate consideration paid or payable as of June 30, 2019 for the acquisitions completed in 2019 and 2018 and presents the allocation of these amounts to net tangible and identifiable intangible assets based on their estimated fair values as of the respective acquisition dates, inclusive of any purchase price adjustments. These allocations require significant use of estimates and are based on information that was available to management at the time these consolidated financial statements were prepared. Quanta uses a variety of information to estimate fair values, including quoted market prices, carrying amounts and valuation techniques such as discounted cash flows. When deemed appropriate, third-party appraisal firms are engaged to assist in fair value determination of fixed assets, intangible assets and certain other assets and liabilities (in thousands).



	2019			2018
Consideration:
Cash paid or payable	$	53,345		$	108,307
Value of Quanta common stock issued	—			22,882
Contingent consideration	—			16,471
Fair value of total consideration transferred or estimated to be transferred	$	53,345		$	147,660

Accounts receivable	$	12,006		$	18,405
Contract assets	2,223			1,905
Other current assets	6,177			8,484
Property and equipment	24,042			23,674
Other assets	5			576
Identifiable intangible assets	7,337			52,364
Contract liabilities	—			(175		)
Other current liabilities	(10,213		)	(11,205		)
Deferred tax liabilities, net	(7,002		)	(4,208		)
Total identifiable net assets	34,575			89,820
Goodwill	21,909			57,840
Fair value of net assets acquired	56,484			147,660
Bargain purchase gain	(3,139		)	—
Fair value of total consideration transferred or estimated to be transferred	$	53,345		$	147,660

Estimated Fair Values of Identifiable Intangible Assets and Related Weighted Average Amortization

The following table summarizes the estimated fair values of identifiable intangible assets for the acquisitions completed in 2019 as of the acquisition dates and the related weighted average amortization periods by type (in thousands, except for weighted average amortization periods, which are in years).



	Estimated Fair Value		Weighted Average Amortization Period in Years
Customer relationships	$	3,996	5.0
Backlog	1,058		1.0
Trade names	908		15.0
Non-compete agreements	1,375		3.0
Total intangible assets subject to amortization related to the 2019 acquisitions	$	7,337	5.3

Unaudited Supplemental Pro Forma Results of Operations

The following unaudited supplemental pro forma results of operations for Quanta, which incorporates the acquisitions completed in 2019 and 2018, have been provided for illustrative purposes only and do not purport to be indicative of the actual results that would have been achieved by the combined companies for the periods presented or that may be achieved by the combined companies in the future. Future results may vary significantly from the results reflected in the following pro forma financial information because of future events and transactions, as well as other factors (in thousands, except per share amounts):



	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Revenues	$	2,848,012	$	2,698,755	$	5,667,910	$	5,162,994
Gross profit	$	320,092	$	344,753	$	685,452	$	659,007
Selling, general and administrative expenses	$	225,287	$	211,288	$	458,981	$	432,934
Amortization of intangible assets	$	12,610	$	12,828	$	25,478	$	25,810
Net income	$	27,951	$	76,951	$	148,471	$	118,142
Net income attributable to common stock	$	26,836	$	76,610	$	146,809	$	116,804

Earnings per share:
Basic	$	0.18	$	0.50	$	1.01	$	0.75
Diluted	$	0.18	$	0.49	$	1.00	$	0.75