Quarterly report pursuant to Section 13 or 15(d)

Note 12 - Business Segment Information

v3.20.2
Note 12 - Business Segment Information
 6 Months Ended
Jun. 30, 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, ITS and 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
three
months ended
June 30, 2020
and
2019:
 
2020
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
   
 
 
 
  
 
 
 
  
Corporate/
    
 
 
 
(in thousands)
  
ITS
    
DME Services
    
Eliminations
    
Total
  
                                 
Net revenues - external
   $
15,605
     $
10,394
     $
-
     $
25,999
  
Net revenues - internal
    
-
      
1,258
      
(1,258
 )    
-
  
Total net revenues
    
15,605
      
11,652
      
(1,258
 )    
25,999
  
Gross profit
    
10,279
      
5,699
      
-
      
15,978
  
                                 
Selling , general and administrative expenses
    
 
      
 
      
11,472
      
11,472
  
Interest expense
    
 
      
 
      
(332
 )    
(332
 )
Other expense
    
 
      
 
      
(9
 )    
(9
 )
Provision for income taxes
    
 
      
 
      
(25
 )    
(25
 )
                                 
Net income
    
 
      
 
      
 
     $
4,140
  
                                 
Total Assets
   $
51,962
     $
30,007
     $
2,000
     $
83,969
  
Purchases of medical equipment
   $
2,663
     $
2,113
     $
-
     $
4,776
  
Depreciation and amortization of intangible assets
   $
2,694
     $
836
     $
-
     $
3,530
  
 
2019
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
   
 
 
 
  
 
 
 
  
Corporate/
    
 
 
 
(in thousands)
  
ITS
    
DME Services
    
Eliminations
    
Total
  
                                 
Net revenues - external
   $
12,408
     $
7,315
     $
-
     $
19,723
  
Net revenues - internal
    
-
      
872
      
(872
 )    
-
  
Total net revenues
    
12,408
      
8,187
      
(872
 )    
19,723
  
Gross profit
    
7,903
      
3,453
      
-
      
11,356
  
                                 
Selling, general and administrative expenses
    
 
      
 
      
10,385
      
10,385
  
Interest expense
    
 
      
 
      
(488
 )    
(488
 )
Other expense
    
 
      
 
      
(39
 )    
(39
 )
Provision for income taxes
    
 
      
 
      
(63
 )    
(63
 )
                                 
Net income
    
 
      
 
      
 
     $
381
  
                                 
Total Assets
   $
48,854
     $
21,507
     $
2,000
     $
72,361
  
Purchases of medical equipment
   $
2,274
     $
1,826
     $
-
     $
4,100
  
Depreciation and amortization of intangible assets
   $
2,296
     $
724
     $
-
     $
3,020
  
 
 
The financial information summarized below is presented by reportable segment for the
six
months ended
June 30, 2020
and
2019:
 
2020
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
   
 
 
 
  
 
 
 
  
Corporate/
    
 
 
 
(in thousands)
  
ITS
    
DME Services
    
Eliminations
    
Total
  
                                 
Net revenues - external
   $
29,731
     $
17,821
     $
-
     $
47,552
  
Net revenues - internal
    
-
      
2,496
      
(2,496
 )    
-
  
Total net revenues
    
29,731
      
20,317
      
(2,496
 )    
47,552
  
Gross profit
    
19,385
      
9,256
      
-
      
28,641
  
                                 
Selling , general and administrative expenses
    
 
      
 
      
24,102
      
24,102
  
Interest expense
    
 
      
 
      
(735
 )    
(735
 )
Other expense
    
 
      
 
      
(28
 )    
(28
 )
Provision for income taxes
    
 
      
 
      
(54
 )    
(54
 )
                                 
Net income
    
 
      
 
      
 
     $
3,722
  
                                 
Total Assets
   $
51,962
     $
30,007
     $
2,000
     $
83,969
  
Purchases of medical equipment
   $
5,020
     $
3,763
     $
-
     $
8,783
  
Depreciation and amortization of intangible assets
   $
5,348
     $
1,584
     $
-
     $
6,932
  
 
2019
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
   
 
 
 
  
 
 
 
  
Corporate/
    
 
 
 
(in thousands)
  
ITS
    
DME Services
    
Eliminations
    
Total
  
                                 
Net revenues - external
   $
23,714
     $
14,202
     $
-
     $
37,916
  
Net revenues - internal
    
-
      
1,821
      
(1,821
 )    
-
  
Total net revenues
    
23,714
      
16,023
      
(1,821
 )    
37,916
  
Gross profit
    
14,830
      
6,867
      
-
      
21,697
  
                                 
Selling, general and administrative expenses
    
 
      
 
      
21,146
      
21,146
  
Interest expense
    
 
      
 
      
(948
 )    
(948
 )
Other expense
    
 
      
 
      
(60
 )    
(60
 )
Provision for income taxes
    
 
      
 
      
(122
 )    
(122
 )
                                 
Net loss
    
 
      
 
      
 
     $
(579
 )
                                 
Total Assets
   $
48,854
     $
21,507
     $
2,000
     $
72,361
  
Purchases of medical equipment
   $
4,805
     $
2,790
     $
-
     $
7,595
  
Depreciation and amortization of intangible assets
   $
4,491
     $
1,434
     $
-
     $
5,925