Segment Reporting

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

The Company uses the “management approach” for reporting information about segments in annual and interim financial statements.  The management approach is based on the way the chief operating decision-maker organizes segments within a company for making operating decisions and assessing performance.  Reportable segments are based on products and services, geography, legal structure, management structure and any other manner in which management disaggregates a company.  Based on the “management approach” model, the Company has determined that its business is comprised of two operating segments: urgent and primary care and ancillary network.

We evaluate performance based on several factors, of which the primary financial measure for each segment is operating income. We define segment operating income for our business segments as income before interest expense, income taxes, depreciation expense, non-cash amortization of intangible assets, non-cash stock-based compensation expense, shared services, severance charges and any non-recurring costs such as transactional costs related to the Company's acquisition program. Shared services primarily consists of compensation costs for the executive management team, facilities costs for the Company's corporate headquarters, shared services such as finance and accounting, human resources, legal, marketing and information technology and general administration. Shared services also includes transactional costs.

Segment assets include accounts receivable, prepaid expenses and other current assets, property and equipment and intangibles. Shared services assets consist of cash and cash equivalents, prepaid insurance, deferred income taxes and property equipment primarily related to information technology assets.

Consolidated assets, by segment and shared services, as of the periods presented are as follows (in thousands):

	Urgent and Primary Care		Ancillary Network		Shared Services		Consolidated
September 30, 2014	$	8,128	$	4,559	$	4,638	$	17,325
December 31, 2013	—		4,404		6,625		11,029

Consolidated statements of operations by segment for the respective quarter and nine months ended are as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Net revenue:
Urgent and primary care	$	1,107	$	—	$	1,581	$	—
Ancillary network	5,656		6,493		16,161		20,541
Total revenue	$	6,763	$	6,493	$	17,742	$	20,541
Operating income:
Urgent and primary care	$	8	$	—	$	79	$	—
Ancillary network	421		208		598		179
Total segment operating income	$	429	$	208	$	677	$	179

The reconciliation of reportable segment operating income (loss) to the Company's consolidated totals is as follows (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Total segment operating income	$	429		$	208		$	677		$	179
Less (add):
Shared services	1,542			756			3,462			2,600
Severance charges	—			—			108			216
Non-recurring transactions costs	73			50			471			50
Interest expense (income)	52			(6		)	61			(21		)
Depreciation and amortization expense	235			192			628			615
Non-cash stock-based compensation expense	169			68			366			220
Other	38			—			38			—
Loss before income taxes	$	(1,680	)	$	(852	)	$	(4,457	)	$	(3,501	)