v3.26.1
Note 11 - Segment Information
 6 Months Ended
Jun. 30, 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 chief operating decision maker (“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 June 30, 2026

 
  

(Amounts in Thousands)

 
  

Personal Care

  

Hospice

  

Home Health

  

Total

 

Net service revenues

 $295,995  $64,247  $17,175  $377,417 

Direct service personnel

  209,890   29,761   9,203   248,854 

General and administrative salaries, wages and benefits

  19,490   12,282   3,600   35,372 

Other segment items (1)

  6,235   10,099   1,085   17,419 

Segment operating income

  60,380   12,105   3,287   75,772 

Segment reconciliation:

                

Items not allocated at segment level:

                

Other general and administrative expenses

              32,705 

Depreciation and amortization

              4,125 

Interest income

              (566)

Interest expense

              1,724 

Income before income taxes

             $37,784 

 

 

(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 June 30, 2025

 
  

(Amounts in Thousands)

 
  

Personal Care

  

Hospice

  

Home Health

  

Total

 

Net service revenues

 $269,183  $62,212  $18,048  $349,443 

Direct service personnel

  192,868   26,177   9,451   228,496 

General and administrative salaries, wages and benefits

  18,407   11,448   3,029   32,884 

Other segment items (1)

  6,268   9,765   1,186   17,219 

Segment operating income

  51,640   14,822   4,382   70,844 

Segment reconciliation:

                

Items not allocated at segment level:

                

Other general and administrative expenses

              34,044 

Depreciation and amortization

              3,913 

Interest income

              (583)

Interest expense

              3,525 

Income before income taxes

             $29,945 

 

 

(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 Six Months Ended June 30, 2026

 
  

(Amounts in Thousands)

 
  

Personal Care

  

Hospice

  

Home Health

  

Total

 

Net service revenues

 $577,089  $130,032  $33,907  $741,028 

Direct service personnel

  412,762   58,929   18,037   489,728 

General and administrative salaries, wages and benefits

  38,788   24,444   7,198   70,430 

Other segment items (1)

  12,293   19,902   2,222   34,417 

Segment operating income

  113,246   26,757   6,450   146,453 

Segment reconciliation:

                

Items not allocated at segment level:

                

Other general and administrative expenses

              65,284 

Depreciation and amortization

              8,155 

Interest income

              (1,076)

Interest expense

              3,875 

Income before income taxes

             $70,215 

 

 

(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 Six Months Ended June 30, 2025

 
  

(Amounts in Thousands)

 
  

Personal Care

  

Hospice

  

Home Health

  

Total

 

Net service revenues

 $527,469  $123,649  $36,033  $687,151 

Direct service personnel

  379,518   52,382   19,864   451,764 

General and administrative salaries, wages and benefits

  36,647   22,427   6,308   65,382 

Other segment items (1)

  12,073   19,401   2,465   33,939 

Segment operating income

  99,231   29,439   7,396   136,066 

Segment reconciliation:

                

Items not allocated at segment level:

                

Other general and administrative expenses

              64,809 

Depreciation and amortization

              7,856 

Interest income

              (1,085)

Interest expense

              7,543 

Income before income taxes

             $56,943 

 

 

(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