As part of our ongoing strategy to expand geographically and increase market share in certain markets, we completed seven business combination during the nine months ended September 30, 2021 and five business combinations during the nine months ended September 30, 2020.

The largest of these acquisitions were I.W. International Insulation, Inc., dba Intermountain West Insulation (“IWI”) in March 2021, Alert Insulation ("Alert") and Alpine Construction Services ("Alpine") in April 2021, General Ceiling & Partitions, Inc. ("GCP") in June 2021, Five Star Building Products, LLC and Five Star Building Products of Southern Utah, LLC (collectively "Five Star") in September 2021, Royals Commercial Services, Inc. (“Royals”) in February 2020, and Energy One America ("Energy One") and Storm Master Gutters ("Storm Master") in August 2020. Below is a summary of each significant acquisition by year, including revenue and net income (loss) since date of acquisition, shown for the year of acquisition. Where noted, “Other” represents acquisitions that were individually immaterial in that year. Net income (loss) includes amortization, taxes and interest allocations when appropriate.


									Three months ended September 30, 2021				Nine months ended September 30, 2021
2021 Acquisitions	Date	Acquisition Type	Cash Paid		Seller Obligations		Total Purchase Price		Revenue		Net Income (Loss)		Revenue		Net Income (Loss)
IWI	03/01/2021	Share	$	42,098	$	5,959	$	48,057	$	10,556	$	590	$	24,315	$	2,068
Alert	4/13/2021	Asset	5,850		2,980		8,830		4,764		2		8,890		147
Alpine	4/19/2021	Asset	7,945		2,208		10,153		3,045		263		4,996		216
GCP	6/7/2021	Asset	9,700		1,427		11,127		2,624		(152)		3,270		(118)
Five Star	9/13/2021	Share	26,308		5,466		31,774		1,243		25		1,243		25
Other	Various	Asset	4,240		947		5,187		956		(29)		1,252		(43)
			$	96,141	$	18,987	$	115,128	$	23,188	$	699	$	43,966	$	2,295


									Three months ended September 30, 2020				Nine months ended September 30, 2020
2020 Acquisitions	Date	Acquisition Type	Cash Paid		Seller Obligations		Total Purchase Price		Revenue		Net Income (Loss)		Revenue		Net Income (Loss)
Royals	02/29/2020	Asset	$	7,590	$	2,500	$	10,090	$	2,843	$	279	$	6,650	$	628
Energy One	8/10/2020	Asset	13,200		1,595		14,795		2,853		(202)		2,853		(202)
Storm Master	8/31/2020	Asset	13,000		1,336		14,336		2,055		85		2,055		85
Other	Various	Asset	5,035		1,538		6,573		1,879		(252)		2,643		(291)
			$	38,825	$	6,969	$	45,794	$	9,630	$	(90)	$	14,201	$	220

Acquisition-related costs recorded within administrative expenses on the Condensed Consolidated Statements of Operations and Comprehensive Income amounted to $(0.3) million and $1.6 million for the three and nine months ended September 30, 2021, respectively, and $0.8 million and $2.0 million for the three and nine months ended September 30, 2020, respectively.

The goodwill recognized in conjunction with these business combinations represents the excess cost of the acquired entity over the net amount assigned to assets acquired and liabilities assumed. We expect to deduct approximately $15.0 million of goodwill for tax purposes as a result of 2021 acquisitions.


	As of September 30, 2021
	IWI		Alert		Alpine		GCP		Five Star		Other		Total
Estimated fair values:
Cash	$	168	$	—	$	—	$	—	$	1,472	$	—	$	1,640
Accounts receivable	5,122		4,710		—		3,067		4,597		446		17,942
Inventories	1,157		765		359		—		1,399		138		3,818
Other current assets	2,354		738		—		—		330		—		3,422
Property and equipment	796		693		726		206		1,161		544		4,126
Intangibles	25,200		2,770		5,543		5,670		17,400		2,787		59,370
Goodwill	25,212		940		3,582		2,695		6,482		1,295		40,206
Other non-current assets	264		132		—		—		—		—		396
Accounts payable and other current liabilities	(3,349)		(1,184)		(57)		(493)		(1,040)		(20)		(6,143)
Deferred income tax liabilities	(6,537)		—		—		—		—		—		(6,537)

Other long-term liabilities	(2,330)		(734)		—		(18)		(27)		(3)		(3,112)
Fair value of assets acquired and purchase price	48,057		8,830		10,153		11,127		31,774		5,187		115,128
Less seller obligations	5,959		2,980		2,208		1,427		5,466		947		18,987
Cash paid	$	42,098	$	5,850	$	7,945	$	9,700	$	26,308	$	4,240	$	96,141


	As of September 30, 2020
	Royals		Energy One		Storm Master		Other		Total
Estimated fair values:
Accounts receivable	2,848		3,350		2,362		1,418		$	9,978
Inventories	305		812		175		278		$	1,570
Other current assets	430		12		—		145		$	587
Property and equipment	598		2,319		798		350		$	4,065
Intangibles	3,930		6,500		8,720		2,996		$	22,146
Goodwill	3,015		3,304		3,631		1,697		$	11,647
Other non-current assets	58		—		—		16		$	74
Accounts payable and other current liabilities	(1,059)		(1,483)		(1,336)		(196)		$	(4,074)


Other long-term liabilities	(35)		(19)		(14)		(131)		$	(199)
Fair value of assets acquired and purchase price	10,090		14,795		14,336		6,573		45,794
Less seller obligations	2,500		1,595		1,336		1,538		6,969
Cash paid	$	7,590	$	13,200	$	13,000	$	5,035	$	38,825

Contingent consideration is included as “seller obligations” in the above table or within “fair value of assets acquired” if subsequently paid during the period presented. These contingent payments consist primarily of earnouts based on performance that are recorded at fair value at the time of acquisition, and/or non-compete agreements and amounts based on working capital calculations. When these payments are expected to be made over one year from the acquisition date, the contingent consideration is discounted to net present value of future payments based on a weighted average of various future forecast scenarios.

Further adjustments to the allocation for each acquisition still under its measurement period are expected as third-party or internal valuations are finalized, certain tax aspects of the transaction are completed, contingent consideration is settled and customary post-closing reviews are concluded during the measurement period attributable to each individual business

combination. As a result, insignificant adjustments to the fair value of assets acquired, and in some cases total purchase price, have been made to certain business combinations since the date of acquisition and future adjustments may be made through the end of each measurement period. Goodwill and intangibles per the above table may not agree to the total gross increases of these assets as shown in Note 6, Goodwill and Intangibles, during each of the nine months ended September 30, 2021 and 2020 due to adjustments to goodwill for the allocation of certain acquisitions still under measurement as well as other immaterial intangible assets added during the ordinary course of business.


	For the nine months ended September 30,
	2021			2020
Acquired intangibles assets	Estimated Fair Value		Weighted Average Estimated Useful Life (yrs.)	Estimated Fair Value		Weighted Average Estimated Useful Life (yrs.)
Customer relationships	$	43,115	12	$	14,528	8
Trademarks and tradenames	10,147		15	3,796		15
Non-competition agreements	4,530		5	1,946		5
Backlog	1,578		1.5	1,876		1.5

The unaudited pro forma information for the combined results of the Company has been prepared as if the 2021 acquisitions had taken place on January 1, 2020 and the 2020 acquisitions had taken place on January 1, 2019. The unaudited pro forma information is not necessarily indicative of the results that we would have achieved had the transactions actually taken place on January 1, 2020 and 2019, respectively, and the unaudited pro forma information does not purport to be indicative of future financial operating results (in thousands, except per share data):


	Unaudited pro forma for the three months ended September 30,				Unaudited pro forma for the nine months ended September 30,
	2021		2020		2021		2020
Net revenue	$	516,057	$	465,639	$	1,474,979	$	1,356,619
Net income	35,574		30,876		93,262		77,604
Basic net income per share	1.21		1.05		3.18		2.63
Diluted net income per share	1.20		1.04		3.15		2.61

Unaudited pro forma net income reflects additional intangible asset amortization expense of $0.3 million and $2.2 million for the three and nine months ended September 30, 2021, respectively, and $2.9 million and $9.7 million for the three and nine months ended September 30, 2020, respectively, as well as additional income tax expense of $0.2 million and $1.2 million for the three and nine months ended September 30, 2021, respectively, and $1.0 million and $2.9 million for the three and nine months ended September 30, 2020, respectively, that would have been recorded had the 2021 acquisitions taken place on January 1, 2020 and the 2020 acquisitions taken place on January 1, 2019.