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Segment Information
 3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Segment Information

10. 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 three months ended March 31, 2021 and 2020 along with the items necessary to reconcile the segment information to the totals reported in the accompanying condensed 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 Three Months Ended March 31, 2021

 

 

 

(Amounts in Thousands)

 

 

 

Personal Care

 

 

Hospice

 

 

Home Health

 

 

Total

 

Net service revenues

 

$

164,868

 

 

$

36,094

 

 

$

4,340

 

 

$

205,302

 

Cost of services revenues

 

 

122,839

 

 

 

18,596

 

 

 

2,670

 

 

 

144,105

 

Gross profit

 

 

42,029

 

 

 

17,498

 

 

 

1,670

 

 

 

61,197

 

General and administrative expenses

 

 

15,283

 

 

 

8,463

 

 

 

965

 

 

 

24,711

 

Segment operating income

 

$

26,746

 

 

$

9,035

 

 

$

705

 

 

$

36,486

 

 

 

 

 

For the Three Months Ended March 31, 2020

 

 

 

(Amounts in Thousands)

 

 

 

Personal Care

 

 

Hospice

 

 

Home Health

 

 

Total

 

Net service revenues

 

$

160,665

 

 

$

25,212

 

 

$

4,339

 

 

$

190,216

 

Cost of services revenues

 

 

119,027

 

 

 

12,318

 

 

 

3,036

 

 

 

134,381

 

Gross profit

 

 

41,638

 

 

 

12,894

 

 

 

1,303

 

 

 

55,835

 

General and administrative expenses

 

 

15,603

 

 

 

6,457

 

 

 

1,022

 

 

 

23,082

 

Segment operating income

 

$

26,035

 

 

$

6,437

 

 

$

281

 

 

$

32,753

 

 

 

 

For the Three Months Ended March 31,

 

 

 

2021

 

 

2020

 

 

 

(Amounts in Thousands)

 

Segment reconciliation:

 

 

 

 

 

 

 

 

Total segment operating income

 

$

36,486

 

 

$

32,753

 

 

 

 

 

 

 

 

 

 

Items not allocated at segment level:

 

 

 

 

 

 

 

 

Other general and administrative expenses

 

 

20,715

 

 

 

19,205

 

Depreciation and amortization

 

 

3,601

 

 

 

2,887

 

Interest income

 

 

(22

)

 

 

(334

)

Interest expense

 

 

1,216

 

 

 

908

 

Income before income taxes

 

$

10,976

 

 

$

10,087