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Segment Information
 9 Months Ended
Sep. 30, 2023
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, 2023

 

 

 

(Amounts in Thousands)

 

 

 

Personal Care

 

 

Hospice

 

 

Home Health

 

 

Total

 

Net service revenues

 

$

201,882

 

 

$

53,121

 

 

$

15,718

 

 

$

270,721

 

Cost of services revenues

 

 

145,808

 

 

 

28,155

 

 

 

10,028

 

 

 

183,991

 

Gross profit

 

 

56,074

 

 

 

24,966

 

 

 

5,690

 

 

 

86,730

 

General and administrative expenses

 

 

16,096

 

 

 

13,246

 

 

 

4,131

 

 

 

33,473

 

Segment operating income

 

$

39,978

 

 

$

11,720

 

 

$

1,559

 

 

$

53,257

 

 

 

 

 

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,

 

 

 

2023

 

 

2022

 

 

 

(Amounts in Thousands)

 

Segment reconciliation:

 

 

 

 

 

 

Total segment operating income

 

$

53,257

 

 

$

44,987

 

 

 

 

 

 

 

Items not allocated at segment level:

 

 

 

 

 

 

Other general and administrative expenses

 

 

26,798

 

 

 

24,030

 

Depreciation and amortization

 

 

3,620

 

 

 

3,441

 

Interest income

 

 

(580

)

 

 

(83

)

Interest expense

 

 

3,199

 

 

 

2,472

 

Income before income taxes

 

$

20,220

 

 

$

15,127

 

 

 

 

For the Nine Months Ended September 30, 2023

 

 

 

(Amounts in Thousands)

 

 

 

Personal Care

 

 

Hospice

 

 

Home Health

 

 

Total

 

Net service revenues

 

$

590,227

 

 

$

152,414

 

 

$

39,659

 

 

$

782,300

 

Cost of services revenues

 

 

428,163

 

 

 

82,028

 

 

 

24,646

 

 

 

534,837

 

Gross profit

 

 

162,064

 

 

 

70,386

 

 

 

15,013

 

 

 

247,463

 

General and administrative expenses

 

 

48,299

 

 

 

39,028

 

 

 

9,653

 

 

 

96,980

 

Segment operating income

 

$

113,765

 

 

$

31,358

 

 

$

5,360

 

 

$

150,483

 

 

 

 

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,

 

 

 

2023

 

 

2022

 

 

 

(Amounts in Thousands)

 

Segment reconciliation:

 

 

 

 

 

 

Total segment operating income

 

$

150,483

 

 

$

130,714

 

 

 

 

 

 

 

Items not allocated at segment level:

 

 

 

 

 

 

Other general and administrative expenses

 

 

77,048

 

 

 

72,220

 

Depreciation and amortization

 

 

10,449

 

 

 

10,571

 

Interest income

 

 

(977

)

 

 

(249

)

Interest expense

 

 

7,991

 

 

 

6,278

 

Income before income taxes

 

$

55,972

 

 

$

41,894