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Acquisitions | 6 Months Ended
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Jun. 30, 2024
Acquisitions [Abstract] |
Acquisitions | 17. Acquisitions On March 11, 2024, Roto-Rooter completed the acquisition of one franchise in New Jersey for $5.8 million in cash. On March 27, 2024, Roto-Rooter completed the acquisition of one franchise in Texas for $1.5 million in cash. On April 17, 2024, VITAS completed the purchase of all hospice operations and an assisted living facility from Covenant Health and Community Services, Inc d/b/a/ Covenant Care (“Covenant”) for an aggregated purchase price of $85.0 million in cash. The preliminary purchase price allocation of the acquired business is as follows (in thousands):
Goodwill |  |  |  |  |  |  | $ | 70,803
Operating licenses |  |  |  |  |  |  |  | 10,960
Property, plant, and equipment |  |  |  |  |  |  |  | 3,237
|  |  |  |  |  |  | $ | 85,000
Revenue and net income for the Covenant acquisition for the second quarter and the first six months of 2024 are not material.
The pro forma revenue and earnings for the Company for the three and six months ended June 30, as if the Covenant acquisition made in 2024 was completed on January 1, 2023 are as follows (in thousands, except per share data):
| Three months ended June 30, |  | Six months ended June 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Service revenues and sales | $ | 598,164 |  | $ | 567,756 |  | $ | 1,202,245 |  | $ | 1,141,852
Net income | $ | 71,450 |  | $ | 55,154 |  | $ | 140,129 |  | $ | 111,052
Earnings per share | $ | 4.73 |  | $ | 3.66 |  | $ | 9.27 |  | $ | 7.40
Diluted earnings per share | $ | 4.68 |  | $ | 3.62 |  | $ | 9.16 |  | $ | 7.32
Revenue and net income from other acquisitions made in 2024 and 2023 are not material. Goodwill is assessed for impairment on a yearly basis as of October 1. The primary factor that contributed to the purchase price resulting in the recognition of goodwill is operational efficiencies expected as a result of integrating the operations of the Covenant locations into the existing VITAS organizational structure. All goodwill recognized is deductible for tax purposes. Shown below is movement in Goodwill (in thousands):
| VITAS |  | Roto-Rooter |  | Total
Balance at December 31, 2023 | $ | 334,063 |  | $ | 250,954 |  | $ | 585,017
Business combinations |  | 70,803 |  |  | 6,361 |  |  | 77,164
Foreign currency adjustments |  | - |  |  | (57) |  |  | (57)
Balance at June 30, 2024 | $ | 404,866 |  | $ | 257,258 |  | $ | 662,124

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