Quarterly report pursuant to Section 13 or 15(d)

Acquisitions (Tables)

v3.10.0.1
Acquisitions (Tables)
6 Months Ended
Jun. 30, 2018
Business Combinations [Abstract]  
Summary of Aggregate Consideration Paid or Payable and Allocation of Amounts to the Net Tangible and Identifiable Intangible Assets
The following table summarizes the aggregate consideration paid or payable as of June 30, 2018 for the 2018 acquisitions and 2017 acquisitions 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 is 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. Third-party appraisal firms are engaged to assist in fair value determination of fixed assets, intangible assets and certain other assets and liabilities when appropriate (in thousands).
 
 
2018
 
2017
 
 
All Acquisitions
 
Stronghold
 
Other Acquisitions
Consideration:
 
 
 
 
 
 
Cash paid or payable
 
$
51,345

 
$
351,014

 
$
11,955

Value of Quanta common stock issued
 
13,549

 
81,337

 
8,267

Contingent consideration
 
13,705

 
51,084

 

Fair value of total consideration transferred or estimated to be transferred
 
$
78,599

 
$
483,435

 
$
20,222

 
 
 
 
 
 
 
Accounts receivable
 
$
4,436

 
$
77,478

 
$
7,157

Contract assets
 

 
11,913

 
193

Other current assets
 
5,722

 
20,914

 
170

Property and equipment
 
17,516

 
51,258

 
1,480

Other assets
 
325

 
1,513

 
12

Identifiable intangible assets
 
19,836

 
95,700

 
8,091

Contract liabilities
 

 
(13,489
)
 
(93
)
Other current liabilities
 
(8,238
)
 
(58,346
)
 
(2,705
)
Deferred tax liabilities, net
 
(4,179
)
 

 

Other long-term liabilities
 

 
(48
)
 

Total identifiable net assets
 
35,418

 
186,893

 
14,305

Goodwill
 
43,181

 
296,542

 
5,917

 
 
$
78,599

 
$
483,435

 
$
20,222

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 2018 acquisitions 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
 
$
3,328

 
5.0
Backlog
 
1,055

 
1.0
Trade names
 
6,257

 
15.0
Non-compete agreements
 
196

 
5.0
Curriculum
 
9,000

 
10.0
Total intangible assets subject to amortization acquired in 2018 acquisitions
 
$
19,836

 
10.2
Unaudited Supplemental Pro Forma Results of Operations
The following unaudited supplemental pro forma results of operations 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,
 
 
2018
 
2017
 
2018
 
2017
Revenues
 
$
2,656,348

 
$
2,323,996

 
$
5,077,992

 
$
4,627,463

Gross profit
 
$
333,371

 
$
334,454

 
$
636,226

 
$
633,461

Selling, general and administrative expenses
 
$
206,104

 
$
208,437

 
$
422,537

 
$
415,863

Amortization of intangible assets
 
$
10,507

 
$
10,740

 
$
21,168

 
$
21,665

Net income
 
$
74,706

 
$
66,371

 
$
113,610

 
$
116,797

Net income attributable to common stock
 
$
74,365

 
$
65,848

 
$
112,272

 
$
116,101

 
 
 
 
 
 
 
 
 
Earnings per share attributable to common stock:

 
 
 
 
 
 
 
 
Basic
 
$
0.49

 
$
0.42

 
$
0.72

 
$
0.73

Diluted
 
$
0.48

 
$
0.41

 
$
0.72

 
$
0.73