v3.26.1
Note 11 - Segment Information
 3 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

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 CODM. The Company identifies its Chief Executive Officer and Chief Operating Officer together as CODMs 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 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 Company’s method for measuring profitability on each reportable segment basis is the same as those described in the summary of significant accounting policies and its CODMs frequently review the actual result to budget variance to allocate resources to the segment and assess its performance. 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.

 

The CODMs do not review disaggregated assets by segment. The measure of segment assets is reported on the balance sheet as total consolidated assets.

 

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.

 

  

For the Three Months Ended March 31, 2026

 
  

(Amounts in Thousands)

 
  

Personal Care

  

Hospice

  

Home Health

  

Total

 

Net service revenues

 $281,094  $65,785  $16,732  $363,611 

Direct service personnel

  202,872   29,168   8,834   240,874 

General and administrative salaries, wages and benefits

  19,298   12,162   3,598   35,058 

Other segment items 1

  6,058   9,803   1,137   16,998 

Segment operating income

  52,866   14,652   3,163   70,681 

Segment reconciliation:

                

Items not allocated at segment level:

                

Other general and administrative expenses

              32,579 

Depreciation and amortization

              4,030 

Interest income

              (510)

Interest expense

              2,151 

Income before income taxes

             $32,431 

 

 

(1)

Other segment items include other costs for direct service personnel, office expense, licenses and taxes, communication, medical director fees, travel, and bad debt expense.

 

 

  

For the Three Months Ended March 31, 2025

 
  

(Amounts in Thousands)

 
  

Personal Care

  

Hospice

  

Home Health

  

Total

 

Net service revenues

 $258,286  $61,437  $17,985  $337,708 

Direct service personnel

  186,650   26,205   10,413   223,268 

General and administrative salaries, wages and benefits

  18,239   10,980   3,279   32,498 

Other segment items 1

  5,805   9,635   1,279   16,719 

Segment operating income

  47,592   14,617   3,014   65,223 

Segment reconciliation:

                

Items not allocated at segment level:

                

Other general and administrative expenses

              30,766 

Depreciation and amortization

              3,943 

Interest income

              (502)

Interest expense

              4,018 

Income before income taxes

             $26,998 

 

 

(1)

Other segment items include other costs for direct service personnel, office expense, licenses and taxes, communication, medical director fees, travel, and bad debt expense.