Subsequent Event

12 Months Ended

Dec. 31, 2017

Subsequent Event

Subsequent Events

Note 16 - Subsequent Events

On January 8, 2018, we acquired substantially all of the assets and assumed certain liabilities of MMLC Texas Builders, LLC (“Oakdale-Hampton Homes”) for approximately $43.0 million, including a $3.0 million estimated earn-out, which remains subject to customary post-closing adjustments. The actual amount of the earn-out may be more or less than the $3.0 million target amount based on the performance of the Oakdale-Hampton Homes business through the end of 2019. A portion of the aggregate consideration equal to $0.6 million was placed in a third-party escrow account as security for Oakdale-Hampton Homes’ indemnification and other obligations under the purchase agreement. Oakdale-Hampton Homes acquires developed land and constructs single-family homes in the Dallas-Fort Worth, Texas area. Oakdale-Hampton Homes’ total revenues in 2017 were approximately $45.1 million. This acquisition marks our entry into a new key growth market.

As of the date of this report, the initial accounting for this business combination is incomplete because the valuation of assets and liabilities acquired is still in process; therefore, certain disclosures required by ASC 805 cannot be made at this time. These disclosures include the amount of acquisition-related costs, the fair value of acquired receivables, the amounts of major classes of assets and liabilities acquired, the amount of goodwill recognized, if any, including qualitative discussion of the factors that make up that goodwill, the total amount of goodwill deductible for tax purposes, the amount of goodwill reportable by segment, the fair value and description of contingent consideration, and the amount of revenue and earnings of Oakdale-Hampton Homes since the date of acquisition.