Segment Information

12 Months Ended

Dec. 30, 2023

Segment Reporting [Abstract]

Segment Information

16. SEGMENT INFORMATION

The Company’s operating segments have been identified based upon how management has organized the business by services provided to customers and how the chief operating decision maker (“CODM”) manages the business and allocates resources. The Company has three operating segments and three reportable segments, Private Duty Services, Home Health & Hospice, and Medical Solutions. The PDS segment predominantly includes private duty skilled nursing services, non-clinical and personal care services, and pediatric therapy services and is primarily reimbursed by Medicaid and Medicaid MCO. The HHH segment provides home health and hospice services to predominately elderly patients and is primarily reimbursed by Medicare. Through the MS segment, the Company provides enteral nutrition and other products to adults and children, delivered on a periodic or as-needed basis, primarily reimbursed by Medicaid and Medicaid MCO.

The CODM evaluates performance using gross margin (and gross margin percentage). Gross margin includes revenue less all costs of revenue, excluding depreciation and amortization, but excludes branch and regional administrative expenses, corporate expenses and other non-field expenses. The CODM does not evaluate a measure of assets when assessing performance.

Results shown for the fiscal years ended December 30, 2023 and December 31, 2022 are not necessarily those which would be achieved if each segment was an unaffiliated business enterprise. There are no intersegment transactions.

The following tables summarize the Company’s segment information for the fiscal years ended December 30, 2023 and December 31, 2022, respectively (amounts in thousands):

	For the fiscal year ended December 30, 2023
	PDS			HHH			MS			Total
Revenue	$	1,518,811		$	218,628		$	157,770		$	1,895,209
Cost of revenue, excluding depreciation and amortization		1,095,091			113,762			90,924			1,299,777
Gross margin	$	423,720		$	104,866		$	66,846		$	595,432
Gross margin percentage		27.9	%		48.0	%		42.4	%		31.4	%
	For the fiscal year ended December 31, 2022
	PDS			HHH			MS			Total
Revenue	$	1,415,105		$	232,584		$	139,956		$	1,787,645
Cost of revenue, excluding depreciation and amortization		1,022,640			130,721		$	81,057			1,234,418
Gross margin	$	392,465		$	101,863		$	58,899		$	553,227
Gross margin percentage		27.7	%		43.8	%		42.1	%		30.9	%

	For the fiscal years ended
Segment Reconciliation:	December 30, 2023			December 31, 2022
Total segment gross margin	$	595,432		$	553,227
Branch and regional administrative expenses		360,978			357,230
Corporate expenses		113,034			137,864
Goodwill impairment		105,136			675,346
Depreciation and amortization		13,778			21,313
Acquisition-related costs		466			99
Other operating (income) expense		(6,032	)		3,651
Operating income (loss)		8,072			(642,276	)
Interest income		327			679
Interest expense		(153,246	)		(107,720	)
Other income		5,851			85,503
Loss before income taxes	$	(138,996	)	$	(663,814	)