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 August 20, 2024, Roto-Rooter completed the acquisition of one franchise in Kentucky for $5.1 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 purchase price allocation of the acquired VITAS business is as follows (in thousands):


Goodwill	$	70,803
Operating licenses		10,960
Property, plant, and equipment		3,237
	$	85,000

Revenue for the Covenant acquisition for the third quarter of 2024, was approximately $10.0 million to $11.0 million and this translated to net income of approximately $1.8 million to $2.0 million. The revenue for the Covenant acquisition for the first nine months of 2024, was approximately $18.2 million to $19.7 million and this translated to net income of approximately $3.4 to $3.8 million.

The pro forma revenue and earnings for the Company for the three and nine months ended September 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 September 30,				Nine months ended September 30,
	2024		2023		2024		2023

Service revenues and sales	$	606,181	$	578,472	$	1,808,426	$	1,720,325
Net income	$	75,776	$	76,735	$	215,905	$	187,786
Earnings per share	$	5.04	$	5.09	$	14.32	$	12.49
Diluted earnings per share	$	5.00	$	5.05	$	14.15	$	12.37

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.


	VITAS		Roto-Rooter		Total
Balance at December 31, 2023	$	334,063	$	250,954	$	585,017
Business combinations		70,803		11,069		81,872
Foreign currency adjustments		-		(29)		(29)
Balance at September 30, 2024	$	404,866	$	261,994	$	666,860