BUSINESS COMBINATIONS

9 Months Ended

Sep. 30, 2020

In the nine months ended September 30, 2020, we acquired six businesses: five tuck-in solid waste collection businesses in our Western region and one recycling operation in our Resource Solutions segment. In the nine months ended September 30, 2019, we acquired eight businesses: three tuck-in solid waste collection businesses in our Eastern region, and in our Western region, three tuck-in solid waste collection businesses, a business comprised of solid waste collection, transfer and recycling operations, and a business comprised of solid waste hauling and transfer assets. The operating results of the acquired businesses are included in the accompanying unaudited consolidated statements of operations from each date of acquisition, and the purchase price has been allocated to the net assets acquired based on fair values at each date of acquisition, with the residual amounts recorded as goodwill. Acquired intangible assets other than goodwill that are subject to amortization include client lists and non-compete covenants. Such assets are amortized over a five-year to ten-year period from the date of acquisition. All amounts recorded to goodwill, except goodwill related to certain acquisitions, are expected to be deductible for tax purposes.

A summary of the purchase price paid for these acquisitions and the allocation of the purchase price for these acquisitions follows:


	Nine Months Ended September 30,
	2020		2019
Purchase Price:
Cash used in acquisitions, net of cash acquired	$	23,062	$	71,038
Notes payable	—		2,714

Other non-cash consideration	—		5,470
Contingent consideration and holdbacks	3,387		1,755
Total	26,449		80,977
Allocated as follows:
Current assets	227		1,935
Other non-current assets	—		367
Land	895		2,487
Buildings	1,908		5,422
Equipment	10,006		20,592
Intangible assets	7,159		31,171
Other liabilities, net	(306)		(3,040)
Deferred tax liability	—		(2,137)
Fair value of assets acquired and liabilities assumed	19,889		56,797
Excess purchase price allocated to goodwill	$	6,560	$	24,180

Certain purchase price allocations are preliminary and are based on information existing at the acquisition dates or upon closing the transaction. Accordingly, these purchase price allocations are subject to change. Unaudited pro forma combined information that shows our operational results as though each acquisition completed since the beginning of the prior fiscal year had occurred as of January 1, 2019 is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Revenues	$	202,910	$	208,234	$	577,994	$	591,212
Operating income	$	20,660	$	19,351	$	45,342	$	42,266
Net income	$	15,119	$	12,813	$	28,216	$	24,532

Basic earnings per share attributable to common stockholders:
Weighted average common shares outstanding	48,370		47,690		48,241		47,029
Basic earnings per common share	$	0.31	$	0.27	$	0.58	$	0.52
Diluted earnings per share attributable to common stockholders:
Weighted average common shares outstanding	48,619		48,361		48,481		47,660
Diluted earnings per common share	$	0.31	$	0.26	$	0.58	$	0.51

The unaudited pro forma results set forth in the table above have been prepared for comparative purposes only and are not necessarily indicative of the actual results of operations had the acquisitions occurred as of January 1, 2019 or of the results of our future operations. Furthermore, the unaudited pro forma results do not give effect to all cost savings or incremental costs that may occur as a result of the integration and consolidation of the completed acquisitions.