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Segment Information
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment Information

13. Segment Information

Operating segments are defined as components of a company that engage in business activities from which it may earn revenues and incur expenses, and for which separate financial information is available and is regularly reviewed by the Company’s chief operating decision makers, to assess the performance of the individual segments and make decisions about resources to be allocated to the segments. The Company operates as a multi-state provider of three distinct but related business segments providing in-home services.

In its personal care segment, the Company provides non-medical assistance with activities of daily living, primarily to persons who are at increased risk of hospitalization or institutionalization, such as the elderly, chronically ill or disabled. In its hospice segment, the Company provides physical, emotional and spiritual care for people who are terminally ill as well as related services for their families. In its home health segment, the Company provides services that are primarily medical in nature to individuals who may require assistance during an illness or after hospitalization and include skilled nursing and physical, occupational and speech therapy.

The tables below set forth information about the Company’s reportable segments for the years ended December 31, 2020, 2019 and 2018 along with the items necessary to reconcile the segment information to the totals reported in the accompanying consolidated financial statements. Segment assets are not reviewed by the Company’s chief operating decision maker function and therefore are not disclosed below.

Segment operating income consists of revenue generated by a segment, less the direct costs of service revenues and general and administrative expenses that are incurred directly by the segment. Unallocated general and administrative costs are those costs for functions performed in a centralized manner and therefore not attributable to a particular segment. These costs include accounting, finance, human resources, legal, information technology, corporate office support and facility costs and overall corporate management.

 

 

 

For the Year Ended December 31, 2020

 

 

 

(Amounts in Thousands)

 

 

 

Personal Care

 

 

Hospice

 

 

Home Health

 

 

Total

 

Net service revenues

 

$

647,233

 

 

$

101,297

 

 

$

16,245

 

 

$

764,775

 

Cost of services revenues

 

 

480,191

 

 

 

47,197

 

 

 

11,150

 

 

 

538,538

 

Gross profit

 

 

167,042

 

 

 

54,100

 

 

 

5,095

 

 

 

226,237

 

General and administrative expenses

 

 

60,468

 

 

 

25,394

 

 

 

3,773

 

 

 

89,635

 

Segment operating income

 

$

106,574

 

 

$

28,706

 

 

$

1,322

 

 

$

136,602

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Year Ended December 31, 2019

 

 

 

(Amounts in Thousands)

 

 

 

Personal Care

 

 

Hospice

 

 

Home Health

 

 

Total

 

Net service revenues

 

$

580,728

 

 

$

53,601

 

 

$

14,462

 

 

$

648,791

 

Cost of services revenues

 

 

432,413

 

 

 

27,203

 

 

 

9,937

 

 

 

469,553

 

Gross profit

 

 

148,315

 

 

 

26,398

 

 

 

4,525

 

 

 

179,238

 

General and administrative expenses

 

 

56,887

 

 

 

12,399

 

 

 

3,205

 

 

 

72,491

 

Segment operating income

 

$

91,428

 

 

$

13,999

 

 

$

1,320

 

 

$

106,747

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Year Ended December 31, 2018

 

 

 

(Amounts in Thousands)

 

 

 

Personal Care

 

 

Hospice

 

 

Home Health

 

 

Total

 

Net service revenues

 

$

490,941

 

 

$

18,850

 

 

$

6,856

 

 

$

516,647

 

Cost of services revenues

 

 

365,264

 

 

 

10,010

 

 

 

4,569

 

 

 

379,843

 

Gross profit

 

 

125,677

 

 

 

8,840

 

 

 

2,287

 

 

 

136,804

 

General and administrative expenses

 

 

44,728

 

 

 

3,742

 

 

 

1,545

 

 

 

50,015

 

Segment operating income

 

$

80,949

 

 

$

5,098

 

 

$

742

 

 

$

86,789

 

 

 

 

For the Years Ended December 31,

 

 

 

(Amounts in Thousands)

 

 

 

2020

 

 

2019

 

 

2018

 

Segment reconciliation:

 

 

 

 

 

 

 

 

 

 

 

 

Total segment operating income

 

$

136,602

 

 

$

106,747

 

 

$

86,789

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Items not allocated at segment level:

 

 

 

 

 

 

 

 

 

 

 

 

Other general and administrative expenses

 

 

80,044

 

 

 

61,421

 

 

 

55,320

 

Depreciation and amortization

 

 

12,051

 

 

 

10,574

 

 

 

8,642

 

Interest income

 

 

(624

)

 

 

(1,523

)

 

 

(2,592

)

Interest expense

 

 

3,189

 

 

 

3,105

 

 

 

5,016

 

Income before income taxes

 

$

41,942

 

 

$

33,170

 

 

$

20,403