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Segment Information
 9 Months Ended
Sep. 30, 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 and nine months ended September 30, 2021 and 2020, along with the items necessary to reconcile the segment information to the totals reported in the accompanying Unaudited 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 September 30, 2021

 

 

 

(Amounts in Thousands)

 

 

 

Personal Care

 

 

Hospice

 

 

Home Health

 

 

Total

 

Net service revenues

 

$

169,609

 

 

$

39,095

 

 

$

7,958

 

 

$

216,662

 

Cost of services revenues

 

 

125,647

 

 

 

18,992

 

 

 

4,977

 

 

 

149,616

 

Gross profit

 

 

43,962

 

 

 

20,103

 

 

 

2,981

 

 

 

67,046

 

General and administrative expenses

 

 

15,166

 

 

 

8,880

 

 

 

1,477

 

 

 

25,523

 

Segment operating income

 

$

28,796

 

 

$

11,223

 

 

$

1,504

 

 

$

41,523

 

 

 

 

For the Three Months Ended September 30, 2020

 

 

 

(Amounts in Thousands)

 

 

 

Personal Care

 

 

Hospice

 

 

Home Health

 

 

Total

 

Net service revenues

 

$

165,916

 

 

$

23,986

 

 

$

4,085

 

 

$

193,987

 

Cost of services revenues

 

 

124,493

 

 

 

10,508

 

 

 

2,685

 

 

 

137,686

 

Gross profit

 

 

41,423

 

 

 

13,478

 

 

 

1,400

 

 

 

56,301

 

General and administrative expenses

 

 

14,837

 

 

 

5,904

 

 

 

925

 

 

 

21,666

 

Segment operating income

 

$

26,586

 

 

$

7,574

 

 

$

475

 

 

$

34,635

 

 

 

 

 

For the Three Months Ended September 30,

 

 

 

2021

 

 

2020

 

 

 

(Amounts in Thousands)

 

Segment reconciliation:

 

 

 

 

 

 

 

 

Total segment operating income

 

$

41,523

 

 

$

34,635

 

 

 

 

 

 

 

 

 

 

Items not allocated at segment level:

 

 

 

 

 

 

 

 

Other general and administrative expenses

 

 

20,757

 

 

 

19,067

 

Depreciation and amortization

 

 

3,406

 

 

 

3,045

 

Interest income

 

 

(37

)

 

 

(87

)

Interest expense

 

 

1,614

 

 

 

680

 

Income before income taxes

 

$

15,783

 

 

$

11,930

 

 

 

 

 

 

For the Nine Months Ended September 30, 2021

 

 

 

(Amounts in Thousands)

 

 

 

Personal Care

 

 

Hospice

 

 

Home Health

 

 

Total

 

Net service revenues

 

$

510,744

 

 

$

112,098

 

 

$

17,015

 

 

$

639,857

 

Cost of services revenues

 

 

375,744

 

 

 

56,500

 

 

 

10,560

 

 

 

442,804

 

Gross profit

 

 

135,000

 

 

 

55,598

 

 

 

6,455

 

 

 

197,053

 

General and administrative expenses

 

 

46,807

 

 

 

26,016

 

 

 

3,410

 

 

 

76,233

 

Segment operating income

 

$

88,193

 

 

$

29,582

 

 

$

3,045

 

 

$

120,820

 

 

 

 

 

 

For the Nine Months Ended September 30, 2020

 

 

 

(Amounts in Thousands)

 

 

 

Personal Care

 

 

Hospice

 

 

Home Health

 

 

Total

 

Net service revenues

 

$

482,849

 

 

$

73,723

 

 

$

12,207

 

 

$

568,779

 

Cost of services revenues

 

 

359,344

 

 

 

33,749

 

 

 

8,553

 

 

 

401,646

 

Gross profit

 

 

123,505

 

 

 

39,974

 

 

 

3,654

 

 

 

167,133

 

General and administrative expenses

 

 

45,042

 

 

 

18,658

 

 

 

2,831

 

 

 

66,531

 

Segment operating income

 

$

78,463

 

 

$

21,316

 

 

$

823

 

 

$

100,602

 

 

 

 

 

 

For the Nine Months Ended September 30,

 

 

 

2021

 

 

2020

 

 

 

(Amounts in Thousands)

 

Segment reconciliation:

 

 

 

 

 

 

 

 

Total segment operating income

 

$

120,820

 

 

$

100,602

 

 

 

 

 

 

 

 

 

 

Items not allocated at segment level:

 

 

 

 

 

 

 

 

Other general and administrative expenses

 

 

63,648

 

 

 

58,939

 

Depreciation and amortization

 

 

10,594

 

 

 

8,872

 

Interest income

 

 

(90

)

 

 

(576

)

Interest expense

 

 

4,092

 

 

 

2,309

 

Income before income taxes

 

$

42,576

 

 

$

31,058