v3.25.2
Segment Information
 6 Months Ended
Jun. 28, 2025
Segment Reporting [Abstract]  
Segment Information

13. 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 CODM for the Company is the Chief Executive Officer. 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. The HHH segment provides home health and hospice services to predominately elderly patients. Through the MS segment, the Company provides enteral nutrition and other products to adults and children, delivered on a periodic or as-needed basis.

The CODM evaluates segment 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. Revenue and cost presented below for the PDS and HHH segments primarily relate to patient services, while the MS segment’s revenue and cost are primarily from products. The CODM does not evaluate a measure of assets when assessing performance. The CODM uses gross margin and gross margin percentage to assess the performance of each segment compared to historical trends, forecasted performance, and industry peers, as well as ensure that each segment has appropriate operational support to manage performance.

Results shown for the three and six-month periods ended June 28, 2025 and June 29, 2024 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 three and six-month periods ended June 28, 2025 and June 29, 2024, respectively (amounts in thousands):

 

 

For the three-month period ended June 28, 2025

 

 

PDS

 

HHH

 

MS

 

Total

 

Revenue

$

486,012

 

$

60,112

 

$

43,429

 

$

589,553

 

Cost of revenue, excluding depreciation and amortization

 

328,078

 

 

27,048

 

 

23,627

 

 

378,753

 

Gross margin

$

157,934

 

$

33,064

 

$

19,802

 

$

210,800

 

Gross margin percentage

 

32.5

%

 

55.0

%

 

45.6

%

 

35.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three-month period ended June 29, 2024

 

 

PDS

 

HHH

 

MS

 

Total

 

Revenue

$

407,851

 

$

54,630

 

$

42,477

 

$

504,958

 

Cost of revenue, excluding depreciation and amortization

 

296,983

 

 

25,227

 

$

24,481

 

 

346,691

 

Gross margin

$

110,868

 

$

29,403

 

$

17,996

 

$

158,267

 

Gross margin percentage

 

27.2

%

 

53.8

%

 

42.4

%

 

31.3

%

 

 

For the six-month period ended June 28, 2025

 

 

PDS

 

HHH

 

MS

 

Total

 

Revenue

$

946,010

 

$

116,845

 

$

85,922

 

$

1,148,777

 

Cost of revenue, excluding depreciation and amortization

 

653,391

 

 

53,041

 

 

47,987

 

 

754,419

 

Gross margin

$

292,619

 

$

63,804

 

$

37,935

 

$

394,358

 

Gross margin percentage

 

30.9

%

 

54.6

%

 

44.2

%

 

34.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the six-month period ended June 29, 2024

 

 

PDS

 

HHH

 

MS

 

Total

 

Revenue

$

802,860

 

$

109,243

 

$

83,508

 

$

995,611

 

Cost of revenue, excluding depreciation and amortization

 

591,857

 

 

50,866

 

$

48,767

 

 

691,490

 

Gross margin

$

211,003

 

$

58,377

 

$

34,741

 

$

304,121

 

Gross margin percentage

 

26.3

%

 

53.4

%

 

41.6

%

 

30.5

%

 

 

 

 

 

 

 

 

 

 

 

 

For the three-month periods ended

 

For the six-month periods ended

 

Segment Reconciliation:

June 28, 2025

 

June 29, 2024

 

June 28, 2025

 

June 29, 2024

 

Total segment gross margin

$

210,800

 

$

158,267

 

$

394,358

 

$

304,121

 

Branch and regional administrative expenses

 

90,069

 

 

87,972

 

 

181,456

 

 

175,886

 

Corporate expenses

 

34,529

 

 

30,245

 

 

72,034

 

 

60,087

 

Depreciation and amortization

 

2,617

 

 

2,833

 

 

5,211

 

 

5,745

 

Acquisition-related costs

 

3,400

 

 

-

 

 

3,506

 

 

-

 

Other operating expense

 

151

 

 

91

 

 

316

 

 

2,411

 

Operating income

 

80,034

 

 

37,126

 

 

131,835

 

 

59,992

 

Interest income

 

129

 

 

95

 

 

261

 

 

197

 

Interest expense

 

(36,003

)

 

(39,613

)

 

(72,338

)

 

(79,260

)

Other (expense) income

 

(22

)

 

6,371

 

 

(5,472

)

 

24,540

 

Income before income taxes

$

44,138

 

$

3,979

 

$

54,286

 

$

5,469