Acquisitions and Dispositions (Tables)

12 Months Ended

Dec. 31, 2013

HBN and Tails

Summary of Estimated Fair Value of Assets and Liabilities at Acquisition Date

The following table summarizes the estimated fair value of the assets acquired and liabilities assumed at the acquisition date (in thousands):

	HBN			Tails			Total
Accounts and notes receivable, net	$	354		$	2,080		$	2,434
Other current assets		17			12			29
Franchise agreements		6,515			16,493			23,008
Goodwill		321			1,711			2,032
Other assets		15			-			15
Accrued liabilities		(92	)		(121	)		(213	)
Total purchase price	$	7,130		$	20,175		$	27,305

RE/MAX of Texas

Summary of Estimated Fair Value of Assets and Liabilities at Acquisition Date

The following table summarizes the estimated fair value of the assets acquired at the acquisition date (in thousands):

Accounts and notes receivable, net	$	122
Franchise agreements		15,200
Goodwill		30,178
Total purchase price	$	45,500

HBN, Tails and RE/MAX of Texas

Summary of Unaudited Pro Forma Information

The following unaudited pro forma financial information reflects the consolidated results of operations of the Company as if the acquisitions of HBN, Tails and RE/MAX of Texas had occurred on January 1, 2012. The historical financial information has been adjusted to give effect to events that are (1) directly attributed to the acquisition, (2) factually supportable and (3) expected to have a continuing impact on the combined results. Such items include interest expense related to debt issued to fund the acquisition as well as additional amortization expense associated with the valuation of the acquired franchise agreement. This unaudited pro forma information should not be relied upon as necessarily being indicative of the historical results that would have been obtained if the acquisition had actually occurred on that date, nor of the results that may be obtained in the future.

	Year Ended December 31,
	2013		2012
	(unaudited)
	(in thousands)
Total revenue	$	165,113	$	158,995
Net income		30,486		33,454