Quarterly report pursuant to Section 13 or 15(d)

Acquisitions (Tables)

v3.19.2
Acquisitions (Tables)
6 Months Ended
Jun. 30, 2019
Business Combinations [Abstract]  
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