| Summary of the Reconciles the Gross Proceeds With the Gain on Sale, Net of Tax for the Sale, the Financial Results, Aggregate Carrying Amounts of Assets and Liabilities Held for Sale and Significant Non-cash Items and Purchases of Property and Equipment |
The following table reconciles the gross proceeds with the gain on sale, net of tax for the sale of the Community Living business:
|
|
|
|
|
|
|
For the Six Months Ended |
|
|
|
June 30, |
|
|
|
2026 |
|
Gross proceeds |
|
$ |
835,000 |
|
Less: certain post-closing adjustments |
|
|
12,617 |
|
Less: direct costs to sell |
|
|
13,854 |
|
Less: carrying amount of Community Living business |
|
|
706,661 |
|
Gain on sale of discontinued operations |
|
$ |
101,868 |
|
Less: current and deferred tax impact |
|
|
72,218 |
|
Net gain on sale of discontinued operations |
|
$ |
29,650 |
|
The following table presents the financial results of the Community Living business (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
|
For the Six Months Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Services revenue |
|
$ |
— |
|
|
$ |
307,683 |
|
|
$ |
306,646 |
|
|
$ |
606,789 |
|
Cost of services |
|
|
— |
|
|
|
211,614 |
|
|
|
206,585 |
|
|
|
415,797 |
|
Gross profit |
|
|
— |
|
|
|
96,069 |
|
|
|
100,061 |
|
|
|
190,992 |
|
Selling, general, and administrative expenses |
|
|
7,703 |
|
|
|
63,739 |
|
|
|
45,669 |
|
|
|
124,483 |
|
Operating (loss) income of discontinued operations |
|
|
(7,703 |
) |
|
|
32,330 |
|
|
|
54,392 |
|
|
|
66,509 |
|
Interest expense, net |
|
|
— |
|
|
|
7,590 |
|
|
|
6,677 |
|
|
|
15,497 |
|
(Loss) gain on sale of discontinued operations |
|
|
(1,544 |
) |
|
|
— |
|
|
|
101,868 |
|
|
|
— |
|
(Loss) income of discontinued operations before incomes taxes |
|
|
(9,247 |
) |
|
|
24,740 |
|
|
|
149,583 |
|
|
|
51,012 |
|
Income tax (benefit) expense of discontinued operations |
|
|
(6,852 |
) |
|
|
5,739 |
|
|
|
77,651 |
|
|
|
12,217 |
|
(Loss) income from discontinued operations, net of income taxes |
|
$ |
(2,395 |
) |
|
$ |
19,001 |
|
|
$ |
71,932 |
|
|
$ |
38,795 |
|
The following table presents the aggregate carrying amounts of assets and liabilities held for sale for the Community Living business as of December 31, 2025 in the unaudited condensed consolidated balance sheet (in thousands):
|
|
|
|
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
|
$ |
107 |
|
Accounts receivable, net of allowance for credit losses |
|
|
136,875 |
|
Inventories |
|
|
3,294 |
|
Prepaid expenses and other current assets |
|
|
2,717 |
|
Total current assets held for sale |
|
|
142,993 |
|
Property and equipment, net of accumulated depreciation of $104,314 |
|
|
83,465 |
|
Goodwill |
|
|
307,640 |
|
Intangible assets, net of accumulated amortization |
|
|
216,192 |
|
Operating lease right-of-use assets, net |
|
|
129,005 |
|
Other assets |
|
|
2,894 |
|
Total assets held for sale |
|
$ |
882,189 |
|
Liabilities |
|
|
|
Current liabilities: |
|
|
|
Trade accounts payable |
|
$ |
25,081 |
|
Accrued expenses |
|
|
59,038 |
|
Current portion of obligations under operating leases |
|
|
32,749 |
|
Current portion of obligations under financing leases |
|
|
7,691 |
|
Total current liabilities held for sale |
|
|
124,559 |
|
Obligations under operating leases, net of current portion |
|
|
57,771 |
|
Obligations under financing leases, net of current portion |
|
|
12,766 |
|
Deferred income taxes, net |
|
|
390 |
|
Long-term liabilities |
|
|
508 |
|
Total liabilities held for sale |
|
$ |
195,994 |
|
The following table presents the significant non-cash items and purchases of property and equipment for the discontinued operations that are included in the accompanying unaudited condensed consolidated statements of cash flows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended |
|
|
|
June 30, |
|
|
|
2026 |
|
|
2025 |
|
Cash flows from operating activities of discontinued operations: |
|
|
|
|
|
|
Depreciation and amortization |
|
$ |
— |
|
|
$ |
1,329 |
|
Share-based compensation |
|
|
(9,296 |
) |
|
|
6,501 |
|
Gain on sale of discontinued operations |
|
|
(101,868 |
) |
|
|
— |
|
|
|
|
|
|
|
|
Cash flows used in investing activities of discontinued operations: |
|
|
|
|
|
|
Purchases of property and equipment |
|
|
3,085 |
|
|
|
5,868 |
|
|