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Note 6 - Acquisitions
6 Months Ended
Jul. 01, 2017
Notes to Financial Statements  
Business Combination Disclosure [Text Block]
6.
Acquisitions
 
The Company has acquired numerous companies throughout its history and those acquisitions have generally included significant future contingent consideration. The Company gives
no
assurance that it will make acquisitions in the future and if they do make acquisitions gives
no
assurance that such acquisitions will be successful.
 
Future Contingent Payments
As of
July 1, 2017,
the Company had
five
active acquisition agreements whereby additional contingent consideration
may
be earned by the former shareholders:
1
) effective
July 1, 2012
the Company acquired certain assets of BGA, LLC (“BGA”);
2
) effective
August 1, 2014
the Company acquired all of the stock of Point Comm, Inc. (“PCI”);
3
) effective
July 5, 2015,
the Company acquired certain assets of Substation Design Services, LLC (“SDS”);
4
) effective
December 31, 2016,
the Company acquired certain assets of Allied Health Professionals, LLC (“AHP”) and
5
) effective
April 16, 2017
the Company acquired certain assets of R.A.F. Services, Inc. (“RAF”). The Company estimates future contingent payments at
July 1, 2017
as follows:
 
Fiscal Year
 
Total
 
December 30, 2017 (after July 1, 2017)
  $
1,525
 
December 30, 2018
   
240
 
Estimated future contingent consideration payments
  $
1,765
 
 
Estimates of future contingent payments are subject to significant judgment and actual payments
may
materially differ from estimates. Potential future contingent payments to be made to all active acquisitions are capped at a cumulative maximum of
$3.2
million. The Company estimates future contingent consideration in payments based on forecasted performance and recorded at the net present value of those expected payments as of
July 1, 2017.
The measurement is based on significant inputs that are
not
observable in the market, which “Fair Value Measurements and Disclosures” (ASU Topic
820
-
10
-
35
) refers to as Level
3
inputs.
 
The Company paid
$0.3
and
$0.7
million in contingent consideration during the
twenty-six
week periods ended
July 1, 2017
and
July 2, 2016,
respectively.
 
AHP
Effective
December 31, 2016,
the Company acquired the business operations of Allied Health Professionals, LLC (“AHP”). AHP was a Chicago area healthcare staffing company providing physical therapists, occupational therapists and speech language pathologists to hospitals, rehabilitation centers, schools and outpatient programs. The Company expects the AHP acquisition to complement its Chicago area operations which formerly provided primarily nurses to the Chicago Public School system. AHP will add new clients and expand the Company’s service offerings in the Chicago area. The purchase price for AHP was
$695
,
all of which was allocated to goodwill, payable as follows:
1
) cash of
$275
paid in
January 2017;
2
) an unsecured note payable of
$280
to be paid in quarterly installments through
October 2018;
and
3
) maximum contingent consideration of
$140
tied to certain gross profit targets and, if earned, payable in
2018.
 
RAF
Effective
April 16, 2017,
the Company acquired the business operations of RAF Services, Inc. (“RAF”). RAF has been in business since
1991
as a multi-disciplined engineering and consulting and design company headquartered on Long Island. The firm has been providing Engineering, Design, Permitting, Inspection and Construction Management services to the utility, industrial, commercial, and property management industries. RAF specializes in turnkey above ground tank inspection, repair and cleaning services, as well as concrete, steel, masonry, and roofing routine maintenance inspection and design. The purchase price for RAF was
$133
,
all of which was allocated to goodwill as follows:
1
) assumed liabilities of
$123;
2
) estimated contingent consideration of
$10,
expected to be paid in fiscal
2018.