Company Quick10K Filing
Davey Tree Expert
Price-0.00 EPS2
Shares24 P/E-0
MCap-0 P/FCF-0
Net Debt162 EBIT55
TEV162 TEV/EBIT3
TTM 2019-09-28, in MM, except price, ratios
10-Q 2020-03-28 Filed 2020-05-05
10-K 2019-12-31 Filed 2020-03-09
10-Q 2019-09-28 Filed 2019-11-05
10-Q 2019-06-29 Filed 2019-08-06
10-Q 2019-03-30 Filed 2019-05-07
10-K 2018-12-31 Filed 2019-03-11
10-Q 2018-09-29 Filed 2018-11-06
10-Q 2018-06-30 Filed 2018-08-09
10-Q 2018-03-31 Filed 2018-05-04
10-K 2017-12-31 Filed 2018-03-16
10-Q 2017-07-01 Filed 2017-08-02
10-Q 2017-04-01 Filed 2017-05-03
10-K 2016-12-31 Filed 2017-03-14
10-Q 2016-10-01 Filed 2016-11-01
10-Q 2016-07-02 Filed 2016-08-02
10-Q 2016-04-02 Filed 2016-05-03
10-K 2015-12-31 Filed 2016-03-09
10-Q 2015-10-03 Filed 2015-11-03
10-Q 2015-07-04 Filed 2015-08-04
10-Q 2015-04-04 Filed 2015-05-05
10-K 2014-12-31 Filed 2015-03-10
10-Q 2014-09-27 Filed 2014-11-06
10-Q 2014-06-28 Filed 2014-08-05
10-Q 2014-03-29 Filed 2014-05-06
10-K 2013-12-31 Filed 2014-03-10
10-Q 2013-09-28 Filed 2013-11-05
10-Q 2013-06-29 Filed 2013-08-06
10-Q 2013-03-30 Filed 2013-05-08
10-K 2012-12-31 Filed 2013-03-12
10-Q 2012-09-29 Filed 2012-10-30
10-Q 2012-06-30 Filed 2012-08-01
10-Q 2012-03-31 Filed 2012-05-02
10-K 2011-12-31 Filed 2012-03-09
10-Q 2011-10-01 Filed 2011-11-02
10-Q 2011-07-02 Filed 2011-08-02
10-Q 2011-04-02 Filed 2011-05-03
10-K 2010-12-31 Filed 2011-03-10
10-Q 2010-10-02 Filed 2010-11-03
10-Q 2010-07-03 Filed 2010-08-04
10-Q 2010-04-03 Filed 2010-05-05
10-K 2009-12-31 Filed 2010-03-11
8-K 2020-06-18
8-K 2020-05-19
8-K 2019-12-13
8-K 2019-05-21
8-K 2019-04-23
8-K 2019-03-07
8-K 2019-02-05
8-K 2019-01-29
8-K 2019-01-24
8-K 2018-09-21
8-K 2018-08-07
8-K 2018-05-15
8-K 2018-05-07
8-K 2018-03-28

DAVEY 10Q Quarterly Report

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Item 4. Controls and Procedures.
Part II. Other Information
Item 1. Legal Proceedings.
Item 1A. Risk Factors.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Item 6. Exhibits.
EX-31.1 dt2020q110qex311.htm
EX-31.2 dt2020q110qex312.htm
EX-32.1 dt2020q110qex321.htm
EX-32.2 dt2020q110qex322.htm

Davey Tree Expert Earnings 2020-03-28

Balance SheetIncome StatementCash Flow
60548436324212102012201420172020
Assets, Equity
31024618211854-102012201420172020
Rev, G Profit, Net Income
402510-5-20-352012201420172020
Ops, Inv, Fin

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 28, 2020
OR
 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______________ to ______________
Commission file number 000-11917
davlogoca05.jpg
THE DAVEY TREE EXPERT COMPANY
(Exact name of registrant as specified in its charter)
Ohio
 
 
34-0176110
(State or other jurisdiction of incorporation or organization)
 
 
(I.R.S. Employer Identification Number)
1500 North Mantua Street
P.O. Box 5193
Kent, OH 44240
(Address of principal executive offices) (Zip code)
(330) 673-9511
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
 
 
 
 
 
Title of each class
 
Trading Symbol(s)
 
Name of each exchange on which registered
N/A
 
N/A
 
N/A
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes   No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes    No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer
 
Accelerated Filer
 
Emerging Growth Company
Non-Accelerated Filer
 
Smaller Reporting Company
 
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes No
There were 22,817,499 Common Shares, $1.00 par value, outstanding as of May 1, 2020
 
 
 
 
 



The Davey Tree Expert Company
Quarterly Report on Form 10-Q
March 28, 2020
INDEX
 
 
 
 
 
 
 
Page
Part I.
Financial Information
 
 
 
 
Item 1.
Financial Statements (Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
"We," "us" "our," "Davey" and "Davey Tree," unless the context otherwise requires, means The Davey Tree Expert Company and its subsidiaries.

- 1 -


THE DAVEY TREE EXPERT COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands, except per share data dollar amounts)
 
March 28,
2020
 
December 31,
2019
Assets
 
 
 
Current assets:
 
 
 
Cash
$
66,829

 
$
11,000

Accounts receivable, net
247,667

 
231,311

Operating supplies
12,493

 
12,127

Other current assets
19,523

 
26,987

Total current assets
346,512

 
281,425

Property and equipment, net
202,982

 
199,850

Right-of-use assets - operating leases
49,787

 
40,033

Other assets
20,994

 
22,335

Intangible assets, net
11,095

 
10,934

Goodwill
43,780

 
42,285

Total assets
$
675,150

 
$
596,862

Liabilities and shareholders' equity
 

 
 

Current liabilities:
 

 
 

Accounts payable
$
46,052

 
$
41,191

Accrued expenses
38,231

 
52,431

Current portion of long-term debt and finance lease liabilities
22,107

 
24,650

Other current liabilities
54,295

 
47,400

Total current liabilities
160,685

 
165,672

Long-term debt
220,084

 
143,354

Lease liabilities - finance leases
1,104

 
1,795

Lease liabilities - operating leases
32,712

 
25,200

Self-insurance reserve
66,530

 
62,113

Other noncurrent liabilities
12,395

 
12,268

Total liabilities
493,510

 
410,402

Commitments and contingencies (Note P)
 
 
 
Redeemable common shares related to 401KSOP and Employee Stock Ownership Plan (ESOP); 5,236 and 5,147 shares at redemption value as of March 28, 2020 and December 31, 2019
126,715

 
124,555

Common shareholders' equity:
 

 
 

Common shares, $1.00 par value, per share; 48,000 shares authorized; 37,678 and 37,767 shares issued and outstanding before deducting treasury shares and which excludes 5,236 and 5,147 shares subject to redemption as of March 28, 2020 and December 31, 2019
37,678

 
37,767

Additional paid-in capital
97,247

 
96,366

Retained earnings
179,368

 
179,770

Accumulated other comprehensive loss
(7,346
)
 
(5,403
)
 
306,947

 
308,500

Less: Cost of common shares held in treasury; 19,848 shares at March 28, 2020 and 19,737 shares at December 31, 2019
252,022

 
246,595

Total common shareholders' equity
54,925

 
61,905

Total liabilities and shareholders' equity
$
675,150

 
$
596,862

 
 
 
 
See notes to condensed consolidated financial statements.
 

 
 


- 2 -


THE DAVEY TREE EXPERT COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share dollar amounts)
 
Three Months Ended
 
March 28,
2020
 
March 30,
2019
Revenues
$
288,280

 
$
247,889

 
 
 
 
Costs and expenses:
 
 
 
Operating
198,393

 
166,016

Selling
50,112

 
46,304

General and administrative
21,542

 
19,044

Depreciation and amortization
14,604

 
14,212

Gain on sale of assets, net
(305
)
 
(653
)
Total costs and expenses
284,346

 
244,923

 
 
 
 
Income from operations
3,934

 
2,966

 
 
 
 
Other income (expense):
 
 
 
Interest expense
(1,946
)
 
(2,151
)
Interest income
101

 
83

Other, net
(1,899
)
 
(1,655
)
 
 
 
 
Income (loss) before income taxes
190

 
(757
)
 
 
 
 
Income taxes (benefit)
17

 
(264
)
 
 
 
 
Net income (loss)
$
173

 
$
(493
)
 
 
 
 
Net income (loss) per share:
 
 
 
Basic
$
.01

 
$
(.02
)
Diluted
$
.01

 
$
(.02
)
 
 
 
 
Weighted-average shares outstanding:
 
 
 
Basic
23,187

 
23,072

Diluted
24,171

 
23,072

 
 
 
 
See notes to condensed consolidated financial statements.
 
 
 


- 3 -


THE DAVEY TREE EXPERT COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
(In thousands)
 
 
Three Months Ended
 
 
March 28,
2020
 
March 30,
2019
Net income (loss)
 
$
173

 
$
(493
)
Components of other comprehensive income (loss), net of tax:
 
 
 
 
Foreign currency translation adjustments
 
(1,971
)
 
509

Amortization of defined benefit pension items:
 
 
 
 
Net actuarial loss
 
16

 
32

Prior service cost
 
12

 
12

Defined benefit pension plan adjustments
 
28

 
44

 
 
 
 
 
Other comprehensive (loss) income, net of tax
 
(1,943
)
 
553

 
 
 
 
 
Comprehensive (loss) income
 
$
(1,770
)
 
$
60

 
 
 
 
 
See notes to condensed consolidated financial statements.
 
 
 
 





- 4 -


THE DAVEY TREE EXPERT COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited)
(In thousands, except per share data)

Common
Shares
Additional
Paid-in
Capital
Common
Shares
Subscribed,
Unissued
Retained
Earnings
Accumulated
Other
Comprehensive
Income (Loss),
Net of Tax
Common
Shares
Held in
Treasury
Common
Shares
Subscription
Receivable
Total Common
Shareholders'
Equity
Balances at January 1, 2020
$
37,767

$
96,366

$

$
179,770

$
(5,403
)
$
(246,595
)
$

$
61,905

Net income



173




173

Change in 401KSOP and ESOP related shares
(89
)
(2,071
)





(2,160
)
Shares sold to employees

2,566




2,438


5,004

Options exercised

15




196


211

Stock-based compensation

371






371

Dividends, $.025 per share



(575
)



(575
)
Currency translation adjustments




(1,971
)


(1,971
)
Defined benefit pension plans




28



28

Shares purchased





(8,061
)

(8,061
)
Balances at March 28, 2020
$
37,678

$
97,247

$

$
179,368

$
(7,346
)
$
(252,022
)
$

$
54,925



















 
Common
Shares
Additional
Paid-in
Capital
Common
Shares
Subscribed,
Unissued
Retained
Earnings
Accumulated
Other
Comprehensive
Income (Loss),
Net of Tax
Common
Shares
Held in
Treasury
Common
Shares
Subscription
Receivable
Total Common
Shareholders'
Equity
Balances at January 1, 2019
$
37,272

$
82,623

$
6,799

$
157,472

$
(5,034
)
$
(235,042
)
$
(729
)
$
43,361

Net loss



(493
)



(493
)
Change in 401KSOP and ESOP related shares
(195
)
(3,907
)





(4,102
)
Shares sold to employees

1,953




2,456


4,409

Options exercised

(14
)



81


67

Subscription shares

(75
)
(391
)


465

158

157

Stock-based compensation

621






621

Dividends, $.025 per share



(590
)



(590
)
Currency translation adjustments




509



509

Defined benefit pension plans




44



44

Shares purchased





(4,430
)

(4,430
)
Balances at March 30, 2019
$
37,077

$
81,201

$
6,408

$
156,389

$
(4,481
)
$
(236,470
)
$
(571
)
$
39,553

 
 
 
 
 
 
 
 
 
See notes to condensed consolidated financial statements.
 

 

 
 
 


- 5 -


THE DAVEY TREE EXPERT COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
 
 
Three Months Ended
 
 
March 28,
2020
 
March 30,
2019
Operating activities
 
 
 
 
Net income (loss)
 
$
173

 
$
(493
)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
 
 
 
 
Depreciation and amortization
 
14,604

 
14,212

Other
 
810

 
152

Changes in operating assets and liabilities, net of assets acquired:
 
 
 
 
Accounts receivable
 
(17,161
)
 
1,934

Accounts payable and accrued expenses
 
(7,532
)
 
(12,777
)
Self-insurance reserve
 
4,408

 
(1,265
)
Prepaid expenses
 
8,176

 
3,815

Other, net
 
(710
)
 
5,850

 
 
2,595

 
11,921

Net cash provided by operating activities
 
2,768

 
11,428

Investing activities
 
 

 
 

Capital expenditures:
 
 

 
 

Equipment
 
(18,960
)
 
(22,660
)
Land and buildings
 
(747
)
 
(150
)
Purchases of businesses, net of cash acquired
 
(1,826
)
 
(2,916
)
Proceeds from sales of fixed assets
 
521

 
749

Net cash used in investing activities
 
(21,012
)
 
(24,977
)
Financing activities
 
 

 
 

Revolving credit facility borrowings
 
244,500

 
174,000

Revolving credit facility payments
 
(163,500
)
 
(178,000
)
Purchase of common shares for treasury
 
(8,061
)
 
(4,430
)
Sale of common shares from treasury
 
5,216

 
4,633

Dividends paid
 
(575
)
 
(590
)
Proceeds from notes payable
 
27,166

 
33,152

Payments of notes payable
 
(29,866
)
 
(10,482
)
Payments of finance leases
 
(707
)
 
(719
)
Net cash provided by financing activities
 
74,173

 
17,564

Effect of exchange rate changes on cash
 
(100
)
 
(12
)
Increase in cash
 
55,829

 
4,003

Cash, beginning of period
 
11,000

 
22,661

Cash, end of period
 
$
66,829

 
$
26,664

Supplemental cash flow information follows:
 
 

 
 

Interest paid
 
$
2,707

 
$
2,938

Income taxes paid
 
1,910

 
137

 
 
 
 
 
See notes to condensed consolidated financial statements.
 
 

 
 


- 6 -

The Davey Tree Expert Company
Notes to Condensed Consolidated Financial Statements (Unaudited)
March 28, 2020
(Amounts in thousands, except share data)


A.
Basis of Financial Statement Preparation
The condensed consolidated financial statements present the financial position, results of operations and cash flows of The Davey Tree Expert Company and its subsidiaries. When we refer to “we,” “us,” “our,” “Davey,” or “Davey Tree”, we mean The Davey Tree Expert Company and its subsidiaries, unless otherwise expressly stated or the context indicates otherwise.
We have prepared the accompanying unaudited condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”), as codified in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), and with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. The condensed consolidated financial statements include all adjustments which, in the opinion of management, are necessary for a fair presentation of the results for the interim periods presented. All such adjustments are of a normal, recurring nature. All intercompany accounts and transactions have been eliminated.
Certain information and disclosures required by U.S. GAAP for complete financial statements have been omitted in accordance with the rules and regulations of the SEC. We suggest that these condensed consolidated financial statements be read in conjunction with the financial statements included in our annual report on Form 10-K for the year ended December 31, 2019 (the “2019 Annual Report”).
Use of Estimates in Financial Statement Preparation--The preparation of financial statements in accordance with U.S. GAAP requires the use of estimates and assumptions that affect reported amounts. Our condensed consolidated financial statements include amounts that are based on management’s best estimates and judgments. Estimates are used for, but not limited to, accounts receivable valuation, depreciable lives of fixed assets, self-insurance reserves, income taxes and revenue recognition. Actual results could differ from those estimates.
While the recent outbreak of the coronavirus ("COVID-19") did not have a material adverse effect on our reported results for our fiscal first quarter, the overall extent and duration of COVID-19 on businesses and economic activity generally remains unclear. The extent to which our operations may be impacted by COVID-19 will depend largely on future developments, which are highly uncertain and cannot be accurately predicted, including new information which may emerge concerning the severity of the outbreak and actions by government authorities to contain the pandemic or treat its impact, among other things.
The Company’s fiscal quarters each contain thirteen operating weeks, with the exception of the fourth quarter of a 53-week fiscal year, which contains fourteen operating weeks. The Company’s fiscal quarter that ended March 28, 2020 is referred to as the first quarter of 2020, and the fiscal quarter ended March 30, 2019 is referred to as the first quarter of 2019.
Recent Accounting Guidance
Accounting Standards Adopted in 2020
Accounting Standards Update 2016-13, Financial Instruments - Credit Losses (Topic 326)--In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326)." ASU 2016-13 replaces the incurred loss impairment methodology in current GAAP for most financial instruments, including trade receivables, with an impairment model, known as the current expected credit loss model that is

- 7 -

The Davey Tree Expert Company
Notes to Condensed Consolidated Financial Statements (Unaudited)
March 28, 2020
(Amounts in thousands, except share data)

based on expected losses rather than incurred losses. The Company adopted the new standard effective January 1, 2020, and it did not have a material effect on the Company's results of operations.
Accounting Standards Not Yet Adopted
Accounting Standards Update 2019-12, Income Taxes (Topic 740)– Simplifying the Accounting for Income Taxes--In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, including applicable interim periods. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements.
B.
Seasonality of Business
Due to the seasonality of our business, our operating results for the three months ended March 28, 2020 are not indicative of results that may be expected for any other interim period or for the year ending December 31, 2020. Our business seasonality traditionally results in higher revenues during the second and third quarters as compared with the first and fourth quarters of the year, while the methods of accounting for fixed costs, such as depreciation expense, amortization, rent and interest expense, are not significantly impacted by business seasonality.
C.
Accounts Receivable, Net and Supplemental Balance-Sheet Information
Accounts receivable, net, consisted of the following:
Accounts receivable, net
March 28,
2020
 
December 31,
2019
Accounts receivable
$
168,503

 
$
176,849

Unbilled Receivables(1)
82,051

 
58,277

 
250,554

 
235,126

Less allowances for doubtful accounts
2,887

 
3,815

Accounts receivable, net
$
247,667

 
$
231,311


(1) 
Unbilled Receivables consist of work-in-process in accordance with the terms of contracts, primarily with utility services customers.
The following items comprise the amounts included in the balance sheets:
Other current assets
March 28,
2020
 
December 31,
2019
Refundable income taxes
$
1,366

 
$
339

Prepaid expense
17,364

 
25,664

Other
793

 
984

Total
$
19,523

 
$
26,987



- 8 -

The Davey Tree Expert Company
Notes to Condensed Consolidated Financial Statements (Unaudited)
March 28, 2020
(Amounts in thousands, except share data)

Property and equipment, net
March 28,
2020
 
December 31,
2019
Land and land improvements
$
19,106

 
$
19,270

Buildings and leasehold improvements
44,267

 
44,414

Equipment
613,398

 
604,211

 
676,771

 
667,895

Less accumulated depreciation
473,789

 
468,045

Total
$
202,982

 
$
199,850


Other assets, noncurrent
March 28,
2020
 
December 31,
2019
Assets invested for self-insurance
$
14,166

 
$
15,426

Investment--cost-method affiliate
1,314

 
1,314

Other
5,514

 
5,595

Total
$
20,994

 
$
22,335


Accrued expenses
March 28,
2020
 
December 31,
2019
Employee compensation
$
12,317

 
$
26,381

Accrued compensated absences
10,197

 
10,744

Self-insured medical claims
2,451

 
1,824

Income tax payable
5,590

 
6,420

Customer advances, deposits
85

 
1,674

Taxes, other than income
4,514

 
1,775

Other
3,077

 
3,613

Total
$
38,231

 
$
52,431


Other current liabilities
March 28,
2020
 
December 31,
2019
Notes payable
$
6,520

 
$
1,853

Current portion of:
 
 
 
Lease liability-operating leases
16,920

 
14,665

Self-insurance reserve
30,855

 
30,882

Total
$
54,295

 
$
47,400



- 9 -

The Davey Tree Expert Company
Notes to Condensed Consolidated Financial Statements (Unaudited)
March 28, 2020
(Amounts in thousands, except share data)

Other noncurrent liabilities
March 28,
2020
 
December 31,
2019
Pension and retirement plans
$
6,804

 
$
6,552

Deferred income taxes
484

 
567

Other
5,107

 
5,149

Total
$
12,395

 
$
12,268


D.
Business Combinations
Our investments in businesses during the first three months of 2020 were $2,740, including liabilities assumed of $380 and debt issued, in the form of notes payable to the sellers, of $534, and have been included in our Residential and Commercial segment. Measurement-period adjustments are not complete. The measurement period for purchase price allocations ends as soon as information of the facts and circumstances becomes available, but does not exceed one year from the acquisition date. During the three months ended March 30, 2019, our investment in businesses was $4,056, including liabilities assumed of $245 and debt issued, in the form of notes payable to the sellers, of $895.
The following table summarizes the preliminary purchase price allocation of the estimated fair values of the assets acquired and liabilities assumed:
 
March 28,
2020
 
December 31,
2019
Detail of acquisitions:
 
 
 
Assets acquired:
 

 
 

Cash
$

 
$
3

Receivables

 
2,332

Operating supplies
23

 
84

Prepaid expense

 
27

Equipment
426

 
1,837

Deposits and other

 
96

Intangibles
935

 
4,067

Goodwill
1,356

 
4,174

Liabilities assumed
(380
)
 
(1,479
)
Debt issued for purchases of businesses
(534
)
 
(2,612
)
Cash paid
$
1,826

 
$
8,529


The results of operations of acquired businesses have been included in the condensed consolidated statements of operations beginning as of the effective dates of acquisition. The effect of these acquisitions on our consolidated revenues and results of operations for the period ended March 28, 2020 was not significant. Pro forma net sales and results of operations for the acquisitions, had they occurred at the beginning of the three months ended March 28, 2020, are not material and, accordingly, are not provided.

- 10 -

The Davey Tree Expert Company
Notes to Condensed Consolidated Financial Statements (Unaudited)
March 28, 2020
(Amounts in thousands, except share data)

The acquired intangible assets consist of tradenames, non-competition agreements and customer relationships. The tradenames and customer relationships were assigned an average useful life of six years and the non-competition agreements were assigned an average useful life of five years.
E.
Identified Intangible Assets and Goodwill, Net
The carrying amounts of the identified intangible assets and goodwill acquired in connection with our acquisitions were as follows:
 
March 28, 2020
 
December 31, 2019
 
Carrying
Amount
 
Accumulated
Amortization
 
Carrying
Amount
 
Accumulated
Amortization
Amortized intangible assets:
 
 
 
 
 
 
 
Customer lists/relationships
$
28,478

 
$
20,024

 
$
28,301

 
$
20,024

Employment-related
8,485

 
7,448

 
8,391

 
7,348

Tradenames
7,393

 
5,789

 
7,402

 
5,788

Amortized intangible assets
44,356

 
$
33,261

 
44,094

 
$
33,160

Less accumulated amortization
33,261

 
 

 
33,160

 
 

Identified intangible assets, net
$
11,095

 
 

 
$
10,934

 
 

 
 
 
 
 
 
 
 
Goodwill
$
43,780

 
 

 
$
42,285

 
 


The changes in the carrying amounts of goodwill, by segment, for the three months ended March 28, 2020 and March 30, 2019 follow:
 
Balance at
January 1, 2020
 
Acquisitions
 
Translation
and Other
Adjustments
 
Balance at
March 28, 2020
Utility
$
4,911

 
$

 
$

 
$
4,911

Residential and Commercial
37,374

 
1,356

 
139

 
38,869

Total
$
42,285

 
$
1,356

 
$
139

 
$
43,780

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at
January 1, 2019
 
Acquisitions
 
Translation
and Other
Adjustments
 
Balance at
March 30, 2019
Utility
$
4,911

 
$

 
$

 
$
4,911

Residential and Commercial
33,060

 
1,232

 
125

 
34,417

Total
$
37,971

 
$
1,232

 
$
125

 
$
39,328



- 11 -

The Davey Tree Expert Company
Notes to Condensed Consolidated Financial Statements (Unaudited)
March 28, 2020
(Amounts in thousands, except share data)

Estimated future aggregate amortization expense of intangible assets--The estimated future aggregate amortization expense of intangible assets, as of March 28, 2020 is as follows:
 
 
Estimated Future
Amortization Expense
Remaining nine months of 2020
 
$
2,053

2021
 
2,325

2022
 
2,020

2023
 
1,888

2024
 
1,431

Thereafter
 
1,377

 
 
$
11,095


F.
Long-Term Debt and Commitments Related to Letters of Credit
Our long-term debt consisted of the following:
 
March 28,
2020
 
December 31,
2019
Revolving credit facility:
 
 
 
Swing-line borrowings
$
20,000

 
$
10,000

LIBOR borrowings
123,000

 
52,000

 
143,000

 
62,000

Senior unsecured notes:
 
 
 
5.09% Senior unsecured notes
6,000

 
6,000

3.99% Senior unsecured notes
50,000

 
50,000

4.00% Senior unsecured notes
25,000

 
25,000

 
81,000

 
81,000

Term loans
17,232

 
24,076

 
241,232

 
167,076

Less debt issuance costs
373

 
420

Less current portion
20,775

 
23,302

 
$
220,084

 
$
143,354


Revolving Credit Facility --As of March 28, 2020, we had a $250,000 revolving credit facility with a group of banks, which expires in October 2022 and permits borrowings, as defined, up to $250,000, including a letter of credit sublimit of $100,000 and a swing-line commitment of $25,000. Under certain circumstances, the amount available under the revolving credit facility may be increased to $325,000. The revolving credit facility contains certain affirmative and negative covenants customary for this type of facility and includes financial covenant ratios with respect to a maximum leverage ratio (not to exceed 3.00 to 1.00 with exceptions in case of material acquisitions) and a minimum interest coverage ratio (not less than 3.00 to 1.00), in each case subject to certain further restrictions as described in the credit agreement. As of

- 12 -

The Davey Tree Expert Company
Notes to Condensed Consolidated Financial Statements (Unaudited)
March 28, 2020
(Amounts in thousands, except share data)

March 28, 2020, we had unused commitments under the facility approximating $104,123, with $145,877 committed, consisting of borrowings of $143,000 and issued letters of credit of $2,877.
Borrowings outstanding bear interest, at Davey Tree’s option, of either (a) a base rate or (b) LIBOR plus a margin adjustment ranging from .875% to 1.50%--with the margin adjustments in both instances based on the Company's leverage ratio at the time of borrowing. The base rate is the greater of (i) the agent bank’s prime rate, (ii) LIBOR plus 1.50%, or (iii) the federal funds rate plus .50%. A commitment fee ranging from .10% to .225% is also required based on the average daily unborrowed commitment.

5.09% Senior Unsecured Notes--During July 2010, we issued 5.09% Senior Unsecured Notes, Series A (the "5.09% Senior Notes"), in the aggregate principal amount of $30,000 pursuant to a Master Note Purchase Agreement (the “Purchase Agreement”) between the Company and the purchasers of the 5.09% Senior Notes. The 5.09% Senior Notes are due July 22, 2020.
The 5.09% Senior Notes are equal in right of payment with our revolving credit facility and all other senior unsecured obligations of the Company. Interest is payable semiannually and five equal, annual principal payments commenced on July 22, 2016 (the sixth anniversary of issuance).  The Purchase Agreement contains customary events of default and covenants related to limitations on indebtedness and transactions with affiliates and the maintenance of certain financial ratios.
3.99% Senior Unsecured Notes--On September 21, 2018, we issued 3.99% Senior Notes, Series A (the "3.99% Senior Notes"), in the aggregate principal amount of $50,000. The 3.99% Senior Notes are due September 21, 2028.
The 3.99% Senior Notes were issued pursuant to a Note Purchase and Private Shelf Agreement (the “Note Purchase and Shelf Agreement”) between the Company, PGIM, Inc. and the purchasers of the 3.99% Senior Notes. Subsequent series of promissory notes may be issued pursuant to the Note Purchase and Shelf Agreement (the "Shelf Notes") in an aggregate additional principal amount not to exceed $50,000 ($25,000 of which was issued on February 5, 2019).
The 3.99% Senior Notes are equal in right of payment with our revolving credit facility and all other senior unsecured obligations of the Company. Interest is payable semiannually and five equal, annual principal payments commence on September 21, 2024 (the sixth anniversary of issuance).  The Note Purchase and Shelf Agreement contains customary events of default and covenants related to limitations on indebtedness and transactions with affiliates and the maintenance of certain financial ratios. The Company may prepay at any time all, or from time to time any part of, the outstanding principal amount of the 3.99% Senior Notes, subject to the payment of a make-whole amount.
In conjunction with the issuance of the 3.99% Senior Notes, on September 21, 2018, the Company entered into an amendment to its revolving credit facility. The amendment amended certain provisions and covenants in the credit agreement to generally conform them to the corresponding provisions and covenants in the Note Purchase and Shelf Agreement. The amendment also permitted the Company to incur indebtedness arising under the Note Purchase and Shelf Agreement in an aggregate principal amount not to exceed $75,000, which included the $50,000 of 3.99% Senior Notes, plus an additional $25,000 in Shelf Notes (which were issued on February 5, 2019).
4.00% Senior Unsecured Notes--On February 5, 2019, we issued 4.00% Senior Notes, Series B (the "4.00% Senior Notes") pursuant to the Note Purchase and Shelf Agreement in the aggregate principal amount of $25,000. The notes are due September 21, 2028. Subsequent series of Shelf Notes may be issued pursuant to the Note Purchase and Shelf Agreement in an aggregate additional principal amount not to exceed

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The Davey Tree Expert Company
Notes to Condensed Consolidated Financial Statements (Unaudited)
March 28, 2020
(Amounts in thousands, except share data)

$25,000. A further amendment to the revolving credit facility would be required for such a transaction to be permissible under the revolving credit facility. The 4.00% Senior Notes are equal in right of payment with our revolving credit facility and all other senior unsecured obligations of the Company. Interest is payable semiannually and