Acquisition of Citizens Homes (Tables)

9 Months Ended

Sep. 30, 2014

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the calculation of the preliminary estimated fair value of the assets and liabilities assumed at the acquisition date (in thousands):



Assets Acquired
Real estate	$	13,832
Other assets	1,433
	15,265
Less: Liabilities assumed	1,608
Net assets acquired	13,657
Goodwill	4,993
Consideration transferred	$	18,650

Schedule of Business Acquisitions by Acquisition, Contingent Consideration

The acquisition date fair value of the consideration transferred totaled $18.7 million, which consisted of the following (in thousands):



Cash	$	14,006
Contingent consideration	4,644
Total consideration	$	18,650

Fair Value Inputs, Assets, Quantitative Information

The following table outlines the key assumptions used to determine the fair value of the real estate:



Real Estate: Methodology and Significant Input Assumptions

Method	Home comparable sales and discounted cash flow models
Home comparable range of base price per square foot	$77- $118 per square foot
Average discount rate applied	15%
Range of builder profit margin	18-24%
Builder profit margin applied	20%

Business Acquisition, Pro Forma Information

The pro forma financial information as presented below is for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisitions had taken place at the beginning of fiscal 2013, or indicative of the results that will be attained in the future (in thousands):



	Three Months Ended					Nine Months Ended
	September 30, 2014			September 30, 2013		September 30, 2014			September 30, 2013
Total revenues	$	110,966		$	115,646	$	310,547		$	293,251
Net income (loss)	$	(10,294	)	$	6,976	$	(23,885	)	$	(20,359	)
Net income (loss) per common share – basic:	$	(0.45	)	$	0.31	$	(1.05	)	$	(0.90	)
Net income (loss) per common share – diluted:	$	(0.45	)	$	0.30	$	(1.05	)	$	(0.90	)