Annual report pursuant to Section 13 and 15(d)

Business Combination (Tables)

v3.7.0.1
Business Combination (Tables)
12 Months Ended
Dec. 31, 2016
Business Combinations [Abstract]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]
The final valuations of assets acquired and liabilities assumed have been performed and retrospectively adjusted to increase the fair value of financial statement line items below.
 
 
 
Previously
 
 
 
As of
 
(in thousands)
 
Reported
 
Adjustment
 
July 20, 2016
 
Cash and cash equivalents
 
$
238
 
$
-
 
$
238
 
Restricted cash
 
 
63
 
 
-
 
 
63
 
Accounts receivable
 
 
80,930
 
 
-
 
 
80,930
 
Property and equipment
 
 
19,524
 
 
1,466
 
 
20,990
 
Intangible assets
 
 
21,010
 
 
(100)
 
 
20,910
 
Costs and estimated earnings in excess of billings on uncompleted contracts
 
 
39,443
 
 
(1,228)
 
 
38,215
 
Other current assets
 
 
2,111
 
 
161
 
 
2,272
 
Other assets
 
 
130
 
 
-
 
 
130
 
Advances to and equity in joint ventures, net
 
 
6
 
 
-
 
 
6
 
Deferred tax assets
 
 
380
 
 
-
 
 
380
 
Total assets acquired
 
 
163,835
 
 
299
 
 
164,134
 
Accounts payable, including retainage
 
 
35,596
 
 
-
 
 
35,596
 
Accrued expenses and other current liabilities
 
 
26,507
 
 
-
 
 
26,507
 
Billings in excess of costs on and estimated earnings on uncompleted contracts
 
 
30,548
 
 
(480)
 
 
30,068
 
Long-term debt
 
 
30,858
 
 
-
 
 
30,858
 
Other long term liabilities
 
 
1,239
 
 
(594)
 
 
645
 
Total liabilities assumed
 
 
124,748
 
 
(1,074)
 
 
123,674
 
Net assets acquired
 
$
39,087
 
$
1,373
 
$
40,460
 
Schedule of Business Acquisitions, by Acquisition [Table Text Block]
The fair value of the consideration paid was as follows:
 
 
 
 
 
As of
 
 
 
 
 
July 20,
 
(in thousands, except shares and per share amounts)
 
 
 
2016
 
Purchase price
 
 
 
 
 
 
 
Cash consideration paid for Limbach Facilities common shares
 
 
 
 
$
32,396
 
 
 
 
 
 
 
 
 
Number of 1347 Capital common shares delivered
 
 
2,200,005
 
 
 
 
Fair value on July 20, 2016
 
 
 
 
 
17,465
 
 
 
 
 
 
 
 
 
Number of 1347 Capital warrants delivered, 5 year, $11.50 strike price
 
 
1,000,006
 
 
 
 
Fair value on July 20, 2016
 
 
 
 
 
599
 
 
 
 
 
 
 
 
 
Number of 1347 Capital warrants delivered, 7 year, $12.50 strike price
 
 
666,670
 
 
 
 
Fair value on July 20, 2016
 
 
 
 
 
488
 
 
 
 
 
 
 
 
 
Total consideration paid
 
 
 
 
$
50,948
 
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]
The valuation of the warrants issued in connection with the Business Combination was performed using the Black-Scholes option model with the following inputs. A price adjustment of 15% to the stock price input was made for the securities held by the affiliate. The stock price input used for non-affiliates’ shares was 100% of the stock price fair value at July 20, 2016.
   
Merger Shares:    
 
 
 
Affiliate
 
 
Non-Affiliates
 
Current stock price
 
$
7.66
 
 
$
9.01
 
 
$12.50 Merger Warrants:    
 
 
 
Affiliate
 
 
Non-Affiliates
 
Current stock price
 
$
7.66
 
 
$
9.01
 
Exercise price
 
 
12.50
 
 
 
12.50
 
Risk-free rate
 
 
1.27
%
 
 
1.27
%
Expected term (in years)
 
 
7.00
 
 
 
7.00
 
Expected volatility
 
 
20
%
 
 
20
%
Expected dividend yield
 
 
0.00
%
 
 
0.00
%
 
$11.50 Merger Warrants:
 
 
 
Affiliate
 
 
Non-Affiliates
 
Current stock price
 
$
7.66
 
 
$
9.01
 
Exercise price
 
 
11.50
 
 
 
11.50
 
Risk-free rate
 
 
1.15
%
 
 
1.15
%
Expected term (in years)
 
 
5.00
 
 
 
5.00
 
Expected volatility
 
 
20
%
 
 
20
%
Expected dividend yield
 
 
0.00
%
 
 
0.00
%
Business Combination, Segment Allocation [Table Text Block]
The following is a reconciliation of the purchase price paid in connection with the acquisition over the estimated fair value of net assets acquired, as allocated to goodwill:
 
 
 
As of
 
(in thousands)
 
July 20, 2016
 
Total consideration paid
 
$
50,948
 
Less: Net assets acquired
 
 
40,460
 
Goodwill
 
$
10,488
 
Schedule of Acquired Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Table Text Block]
The following table summarizes the Company’s final allocation of the identifiable intangible assets acquired as of the July 20, 2016, closing date of the Business Combination:
 
(in thousands)
 
 
 
 
 
Weighted
 
 
Gross
 
Average
 
 
Amount at
 
Amortization
 
 
Acquisition
 
Period (in
 
 
Date
 
Years)
Trade Name
 
$
9,960
 
Indefinite
Backlog – Construction
 
 
4,830
 
2.5 Years
Backlog – Service
 
 
880
 
1 Year
Customer Relationships – Service
 
 
4,710
 
15 Years
Favorable Leasehold Interests
 
 
530
 
8.67 Years
Total Intangible assets, excluding Goodwill
 
$
20,910
 
 
Business Acquisition, Pro Forma Information [Table Text Block]
The following unaudited pro forma financial information summarizes the combined results of operations for the Company as though the Business Combination had occurred on January 1, 2015:
 
 
 
Pro Forma
 
 
 
Combined Statements of Operations
 
 
 
For the twelve
 
 
 
months
 
 
 
ended December 31,
 
 
 
2016
 
2015
 
(in thousands)
 
 
 
 
 
 
 
Pro forma revenues
 
$
446,994
 
$
331,350
 
Pro forma net income (loss) attributable to common shareholders
 
$
(568)
 
$
(3,966)