Segment Information

9 Months Ended

Sep. 30, 2020

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 for the three and nine months ended September 30, 2020 and 2019 along with the items necessary to reconcile the segment information to the totals reported in the accompanying 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, 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, 2019
	(Amounts in Thousands)
	Personal Care		Hospice		Home Health		Total
Net service revenues	$	153,753	$	10,874	$	4,366	$	168,993
Cost of services revenues		115,504		5,495		2,818		123,817
Gross profit		38,249		5,379		1,548		45,176
General and administrative expenses		14,737		1,824		844		17,405
Segment operating income	$	23,512	$	3,555	$	704	$	27,771

	For the Three Months Ended September 30,
	2020			2019
	(Amounts in Thousands)
Segment reconciliation:
Total segment operating income	$	34,635		$	27,771
Items not allocated at segment level:
Other general and administrative expenses		19,067			17,680
Depreciation and amortization		3,045			2,756
Interest income		(87	)		(786	)
Interest expense		680			866
Income before income taxes	$	11,930		$	7,255

	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, 2019
	(Amounts in Thousands)
	Personal Care		Hospice		Home Health		Total
Net service revenues	$	419,124	$	27,228	$	10,063	$	456,415
Cost of services revenues		314,329		13,587		6,803		334,719
Gross profit		104,795		13,641		3,260		121,696
General and administrative expenses		40,053		4,962		2,187		47,202
Segment operating income	$	64,742	$	8,679	$	1,073	$	74,494

	For the Nine Months Ended September 30,
	2020			2019
	(Amounts in Thousands)
Segment reconciliation:
Total segment operating income	$	100,602		$	74,494
Items not allocated at segment level:
Other general and administrative expenses		58,939			46,907
Depreciation and amortization		8,872			7,365
Interest income		(576	)		(1,096	)
Interest expense		2,309			2,164
Income before income taxes	$	31,058		$	19,154