Quarterly report pursuant to Section 13 or 15(d)

Note 12 - Business Segment Information

v3.20.1
Note 12 - Business Segment Information
 3 Months Ended
Mar. 31, 2020
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
12.
Business Segment Information
 
During the
fourth
quarter of
2019,
the Company reorganized its segment reporting from
one
reportable segment to
two
reportable segments, Integrated Therapy Services (“ITS”) and Durable Medical Equipment Services (“DME Services”), due to changes in the Company’s internal reporting and the information evaluated by its chief operating decision-maker. The Company’s reportable segments are organized based on service platforms, with the ITS segment reflecting higher margin rental revenues that generally include payments made by
third
-party and direct payers and the DME Services segment reflecting lower margin product sales and direct payer rental revenues. Resources are allocated and performance is assessed for these segments by the Company’s Chief Executive Officer, whom the Company has determined to be its chief operating decision-maker. The Company believes that reporting performance at the gross profit level is the best indicator of segment performance.
 
The financial information summarized below is presented by reportable segment for the quarters ended
March 31, 2020
and
2019:
 
2020
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
   
 
 
 
  
 
 
 
  
Corporate/
    
 
 
 
(in thousands)
  
ITS
    
DME Services
    
Eliminations
    
Total
  
                                 
Net revenues - external
   $
14,126
     $
7,427
     $
-
     $
21,553
  
Net revenues - internal
    
-
      
1,238
      
(1,238
 )    
-
  
Total net revenues
    
14,126
      
8,665
      
(1,238
 )    
21,553
  
Gross profit
    
9,106
      
3,557
      
-
      
12,663
  
                                 
Selling , general and administrative expenses
    
 
      
 
      
12,630
      
12,630
  
Interest expense
    
 
      
 
      
(403
 )    
(403
 )
Other expense
    
 
      
 
      
(19
 )    
(19
 )
Provision for income taxes
    
 
      
 
      
(29
 )    
(29
 )
                                 
Net loss
    
 
      
 
      
 
     $
(418
 )
                                 
Total Assets
   $
54,762
     $
25,916
     $
2,000
     $
82,678
  
Purchases of medical equipment
   $
2,357
     $
1,650
     $
-
     $
4,007
  
Depreciation and amortization of intangible assets
   $
2,654
     $
748
     $
-
     $
3,402
  
 
2019
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
   
 
 
 
  
 
 
 
  
Corporate/
    
 
 
 
(in thousands)
  
ITS
    
DME Services
    
Eliminations
    
Total
  
                                 
Net revenues - external
   $
11,306
     $
6,887
     $
-
     $
18,193
  
Net revenues - internal
    
-
      
949
      
(949
 )    
-
  
Total net revenues
    
11,306
      
7,836
      
(949
 )    
18,193
  
Gross profit
    
6,927
      
3,414
      
-
      
10,341
  
                                 
Selling, general and administrative expenses
    
 
      
 
      
10,761
      
10,761
  
Interest expense
    
 
      
 
      
(460
 )    
(460
 )
Other expense
    
 
      
 
      
(21
 )    
(21
 )
Provision for income taxes
    
 
      
 
      
(59
 )    
(59
 )
                                 
Net loss
    
 
      
 
      
 
     $
(960
 )
                                 
Total Assets
   $
43,953
     $
21,292
     $
2,000
     $
67,245
  
Purchases of medical equipment
   $
2,531
     $
964
     $
-
     $
3,495
  
Depreciation and amortization of intangible assets
   $
2,195
     $
710
     $
-
     $
2,905