Quarterly report pursuant to Section 13 or 15(d)

BUSINESS COMBINATIONS (Tables)

v3.19.3
BUSINESS COMBINATIONS (Tables)
9 Months Ended
Sep. 30, 2019
Business Combinations [Abstract]  
The preliminary fair values of Clark Pest Control's assets and liabilities, at the date of acquisition

The preliminary fair values of Clark Pest Control's assets and liabilities, at the date of acquisition, were as follows:

 

    at April 30  
(dollars in thousands)   2019  
Assets and liabilities:        
Trade accounts receivables   $ 6,974  
Materials and supplies     900  
Other current assets     5,367  
Equipment and property, net     65,535  
Goodwill     191,853  
Customer contracts     112,700  
Trademarks & tradenames     49,300  
Non-compete agreements     500  
Accounts payable     (1,929 )
Accrued compensation and related liabilities     (5,678 )
Unearned revenues     (879 )
Contingent Consideration, short-term     (6,777 )
Other current liabilities     (5,452 )
Other long term liabilities     (9,352 )
Accrued insurance, less current portion     (1,870 )
Contingent Consideration, long-term     (5,923 )
    $ 395,269  
The unaudited pro forma financial information presented below gives effect to the Clark Pest Control acquisition

The unaudited pro forma financial information presented below gives effect to the Clark Pest Control acquisition as if it had occurred as of the beginning of our fiscal year 2018. The information presented below is for illustrative purposes only and is not necessarily indicative of results that would have been achieved if the acquisition actually had occurred as of the beginning of such years or results which may be achieved in the future.

 

    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2019     2018     2019     2018  
REVENUES                                
Customer services   $ 556,466     $ 523,957     $ 1,554,295     $ 1,481,329  
COSTS AND EXPENSES     510,327       430,970       1,365,280       1,231,662  
INCOME BEFORE INCOME TAXES     46,139       92,987       189,015       249,667  
PROVISION FOR INCOME TAXES     2,078       23,262       36,569       58,566  
NET INCOME   $ 44,061     $ 69,725     $ 152,446     $ 191,101  
NET INCOME PER SHARE - BASIC AND DILUTED   $ 0.13     $ 0.21     $ 0.47     $ 0.58  
DIVIDENDS PAID PER SHARE   $ 0.11     $ 0.09     $ 0.32     $ 0.28  
Weighted average participating shares outstanding - basic and diluted     327,459       327,320       327,490       327,283  
The preliminary values of major classes of assets acquired and liabilities assumed recorded at the date of acquisition, as adjusted during the valuation period

The preliminary values of major classes of assets acquired and liabilities assumed recorded at the date of acquisition, as adjusted during the valuation period, are included in the reconciliation of the total consideration as follows (in thousands):

 

    September 30, 2019  
Accounts receivable, net   $ 8,535  
Materials & supplies     1,378  
Equipment and property     68,704  
Goodwill     201,443  
Customer contracts and other intangible assets     189,581  
Current liabilities     (18,180 )
Other assets and liabilities, net     (7,512 )
Total purchase price   $ 443,949  
Less: Contingent consideration liability     (12,700 )
Total cash purchase price   $ 431,249