Note 11 - Segment Information

6 Months Ended

Jun. 30, 2025

Segment Reporting Disclosure [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 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 Three Months Ended June 30, 2024*
	(Amounts in Thousands)
	*Personal Care*		*Hospice*		*Home Health*		*Total*
Net service revenues	$	212,817	$	56,030	$	18,075	$	286,922
Direct service personnel		152,442		23,465		10,830		186,737
General and administrative salaries, wages and benefits		11,939		9,965		3,676		25,580
Other segment items ¹		5,347		9,766		1,345		16,458
Segment operating income		43,089		12,834		2,224		58,147
Segment reconciliation:
Items not allocated at segment level:
Other general and administrative expenses								28,565
Depreciation and amortization								3,401
Interest income								(474	)
Interest expense								2,114
Income before income taxes							$	24,541

(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

	*For the Six Months Ended June 30, 2024*
	(Amounts in Thousands)
	*Personal Care*		*Hospice*		*Home Health*		*Total*
Net service revenues	$	420,820	$	111,893	$	34,955	$	567,668
Direct service personnel		304,515		46,789		21,453		372,757
General and administrative salaries, wages and benefits		23,099		20,043		7,339		50,481
Other segment items ¹		10,095		18,770		2,662		31,527
Segment operating income		83,111		26,291		3,501		112,903
Segment reconciliation:
Items not allocated at segment level:
Other general and administrative expenses								56,207
Depreciation and amortization								6,870
Interest income								(897	)
Interest expense								4,872
Income before income taxes							$	45,851

(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

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

Addus HomeCare Corp 10-Q