Acquisitions |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||
Notes to Financial Statements | |||||||||||||||||||||||||||||||||||||||||
12. Acquisitions |
SNI
The Company entered into an Agreement and Plan of Merger dated as of March 31, 2017 (the Merger Agreement) by and among the Company, GEE Group Portfolio, Inc., a Delaware corporation and a wholly owned subsidiary of the Company, (GEE Portfolio), SNI Holdco Inc., a Delaware corporation (SNIH), Smith Holdings, LLC a Delaware limited liability company, Thrivent Financial for Lutherans, a Wisconsin corporation, organized as a fraternal benefits society (Thrivent), Madison Capital Funding, LLC, a Delaware limited liability company (Madison) and Ronald R. Smith, in his capacity as a stockholder (Mr. Smith and collectively with Smith Holdings, LLC, Thrivent and Madison, the Principal Stockholders) and Ronald R. Smith in his capacity as the representative of the SNIH Stockholders (Stockholders Representative). As a result of the merger, GEE Portfolio became the owner of 100% of the outstanding capital stock of SNI Companies, Inc., a Delaware corporation and a wholly-owned subsidiary of SNI Holdco (SNI Companies and collectively with SNI Holdco, the Acquired Companies). The aggregate consideration paid for the shares of SNI Holdco (the Merger Consideration) was approximately $66,300,000.
Consolidated pro-forma unaudited financial statements
The following unaudited pro forma combined financial information is based on the historical financial statements of the Company and SNI Companies, Inc., after giving effect to the Companys acquisition as if the acquisition occurred on April 3, 2017.
The following unaudited pro forma information does not purport to present what the Companys actual results would have been had the acquisitions occurred on October 1, 2016, nor is the financial information indicative of the results of future operations. The following table represents the unaudited consolidated pro forma results of operations for the three months ended December 31, 2016 as if the acquisition occurred on October 1, 2016. The pro forma results of operations for the three months ended December 31, 2016 only include SNI Companies, as all other acquisitions either occurred prior to October 1, 2016 or had an immaterial effect on pro forma balances. Operating expenses have been increased for the amortization expense associated with the estimated fair value adjustment as of each acquisition during the respective period for the expected definite lived intangible assets. Operating expenses have been increased for the amortization expense associated with the fair value adjustment of definite lived intangible assets of approximately $1,000,000 for the three months ended December 31, 2016 for the SNI acquisition.
(in Thousands, except per share data)
The proforma results of operations for the three months ended December 31, 2016, included approximately $27,595,000 of sales, and approximately $376,000 of net income, respectively of SNI Companies.
The Company's consolidated financial statements for the three months ended December 31, 2017 include the actual results of all acquisitions. |