Quarterly report pursuant to Section 13 or 15(d)

Note 6 - Goodwill and Intangible Assets

v3.24.2.u1
Note 6 - Goodwill and Intangible Assets
9 Months Ended
Jul. 31, 2024
Notes to Financial Statements  
Goodwill and Intangible Assets Disclosure [Text Block]

Note 6. Goodwill and Intangible Assets

 

The Company has recognized goodwill and certain intangible assets in connection with prior business combinations.

 

There were no triggering events during the nine months ended July 31, 2024. The Company will continue to evaluate its goodwill and intangible assets in future quarters.

 

The following table summarizes the composition of intangible assets as of  July 31, 2024 and  October 31, 2023:

 

   

As of July 31,

 
   

2024

 
   

Weighted Average

   

Gross

                   

Foreign Currency

   

Net

 
   

Remaining Life

   

Carrying

   

Accumulated

   

Accumulated

   

Translation

   

Carrying

 

(in thousands)

 

(in Years)

   

Value

   

Impairment

   

Amortization

   

Adjustment

   

Amount

 

Intangibles subject to amortization:

                                               

Customer relationship

    9.4     $ 195,126     $ -     $ (140,798 )   $ 1,179     $ 55,507  

Trade name

    4.4       5,097       -       (3,044 )     291       2,344  

Assembled workforce

    0.9       1,650       -       (1,385 )     -       265  

Noncompete agreements

    3.2       1,200       -       (563 )     -       637  

Indefinite-lived intangible assets:

                                               

Trade names (indefinite life)

    -       55,500       (5,000 )     -       -       50,500  

Total intangibles

          $ 258,573     $ (5,000 )   $ (145,790 )   $ 1,470     $ 109,253  

 

   

As of October 31,

 
   

2023

 
   

Weighted Average

   

Gross

               

Foreign Currency

   

Net

 
    Remaining Life     Carrying     Accumulated     Accumulated     Translation     Carrying  

(in thousands)

 

(in Years)

   

Value

   

Impairment

   

Amortization

   

Adjustment

   

Amount

 

Intangibles subject to amortization:

                                               

Customer relationship

    10.1     $ 195,126     $ -     $ (130,295 )   $ 832     $ 65,663  

Trade name

    5.1       5,097       -       (2,645 )     146       2,598  

Assembled workforce

    1.4       1,650       -       (972 )     -       678  

Noncompete agreements

    3.9       1,200       -       (395 )     -       805  

Indefinite-lived intangible assets:

                                               

Trade names (indefinite life)

    -       55,500       (5,000 )     -       -       50,500  

Total intangibles

          $ 258,573     $ (5,000 )   $ (134,307 )   $ 978     $ 120,244  

 

Amortization expense for the three months ended  July 31, 2024 and 2023 was $3.7 million and $4.7 million, respectively. Amortization expense for the nine months ended July 31, 2024 and 2023 was $11.5 million and $14.3 million, respectively.

 

The changes in the carrying value of goodwill by reportable segment for the nine months ended July 31, 2024 are as follows:

 

(in thousands)

 

U.S. Concrete Pumping

   

U.K. Operations

   

U.S. Concrete Waste Management Services

   

Total

 

Balance at October 31, 2023

  $ 147,482     $ 24,902     $ 49,133     $ 221,517  

Foreign currency translation

    -       1,447       -       1,447  

Balance at July 31, 2024

  $ 147,482     $ 26,349     $ 49,133     $ 222,964