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Segment Information
 9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
Segment Information

11. 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, 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, 2022

 

 

 

(Amounts in Thousands)

 

 

 

Personal Care

 

 

Hospice

 

 

Home Health

 

 

Total

 

Net service revenues

 

$

179,180

 

 

$

51,359

 

 

$

9,956

 

 

$

240,495

 

Cost of services revenues

 

$

131,968

 

 

$

25,695

 

 

$

7,647

 

 

 

165,310

 

Gross profit

 

$

47,212

 

 

$

25,664

 

 

$

2,309

 

 

 

75,185

 

General and administrative expenses

 

$

15,238

 

 

$

12,550

 

 

$

2,410

 

 

 

30,198

 

Segment operating income

 

$

31,974

 

 

$

13,114

 

 

$

(101

)

 

$

44,987

 

 

 

 

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,

 

 

 

2022

 

 

2021

 

 

 

(Amounts in Thousands)

 

Segment reconciliation:

 

 

 

 

 

 

Total segment operating income

 

$

44,987

 

 

$

41,523

 

 

 

 

 

 

 

 

Items not allocated at segment level:

 

 

 

 

 

 

Other general and administrative expenses

 

 

24,030

 

 

 

20,757

 

Depreciation and amortization

 

 

3,441

 

 

 

3,406

 

Interest income

 

 

(83

)

 

 

(37

)

Interest expense

 

 

2,472

 

 

 

1,614

 

Income before income taxes

 

$

15,127

 

 

$

15,783

 

 

 

 

For the Nine Months Ended September 30, 2022

 

 

 

(Amounts in Thousands)

 

 

 

Personal Care

 

 

Hospice

 

 

Home Health

 

 

Total

 

Net service revenues

 

$

523,142

 

 

$

151,160

 

 

$

29,768

 

 

$

704,070

 

Cost of services revenues

 

 

386,940

 

 

 

74,659

 

 

 

21,501

 

 

 

483,100

 

Gross profit

 

 

136,202

 

 

 

76,501

 

 

 

8,267

 

 

 

220,970

 

General and administrative expenses

 

 

45,688

 

 

 

37,298

 

 

 

7,270

 

 

 

90,256

 

Segment operating income

 

$

90,514

 

 

$

39,203

 

 

$

997

 

 

$

130,714

 

 

 

 

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,

 

 

 

2022

 

 

2021

 

 

 

(Amounts in Thousands)

 

Segment reconciliation:

 

 

 

 

 

 

Total segment operating income

 

$

130,714

 

 

$

120,820

 

 

 

 

 

 

 

 

Items not allocated at segment level:

 

 

 

 

 

 

Other general and administrative expenses

 

 

72,220

 

 

 

63,648

 

Depreciation and amortization

 

 

10,571

 

 

 

10,594

 

Interest income

 

 

(249

)

 

 

(90

)

Interest expense

 

 

6,278

 

 

 

4,092

 

Income before income taxes

 

$

41,894

 

 

$

42,576