Quarterly report pursuant to Section 13 or 15(d)

Note 12 - Business Segment Information

v3.20.2
Note 12 - Business Segment Information
 9 Months Ended
Sep. 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
September 30, 2020
and
2019:
 
2020
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
   
 
 
 
  
 
 
 
  
Corporate/
    
 
 
 
(in thousands)
  
ITS
    
DME Services
    
Eliminations
    
Total
  
                                 
Net revenues - external
   $
15,638
     $
9,487
     $
-
     $
25,125
  
Net revenues - internal
    
-
      
1,459
      
(1,459
 )    
-
  
Total net revenues
    
15,638
      
10,946
      
(1,459
 )    
25,125
  
Gross profit
    
10,095
      
5,027
      
-
      
15,122
  
                                 
Selling , general and administrative expenses
    
 
      
 
      
11,869
      
11,869
  
Interest expense
    
 
      
 
      
(283
 )    
(283
 )
Other income
    
 
      
 
      
8
      
8
  
Provision for income taxes
    
 
      
 
      
(38
 )    
(38
 )
                                 
Net income
    
 
      
 
      
 
     $
2,940
  
                                 
Total Assets
   $
51,547
     $
26,761
     $
2,000
     $
80,308
  
Purchases of medical equipment
   $
1,685
     $
1,487
     $
-
     $
3,172
  
Depreciation and amortization of intangible assets
   $
2,694
     $
866
     $
-
     $
3,560
  
 
2019
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
   
 
 
 
  
 
 
 
  
Corporate/
    
 
 
 
(in thousands)
  
ITS
    
DME Services
    
Eliminations
    
Total
  
                                 
Net revenues - external
   $
13,468
     $
8,021
     $
-
     $
21,489
  
Net revenues - internal
    
-
      
968
      
(968
 )    
-
  
Total net revenues
    
13,468
      
8,989
      
(968
 )    
21,489
  
Gross profit
    
8,652
      
3,586
      
-
      
12,238
  
                                 
Selling, general and administrative expenses
    
 
      
 
      
10,575
      
10,575
  
Interest expense
    
 
      
 
      
(488
 )    
(488
 )
Other expense
    
 
      
 
      
(11
 )    
(11
 )
Provision for income taxes
    
 
      
 
      
(29
 )    
(29
 )
                                 
Net income
    
 
      
 
      
 
      
1,135
  
                                 
Total Assets
   $
54,757
     $
21,138
     $
2,000
     $
77,895
  
Purchases of medical equipment
   $
5,695
     $
1,715
     $
-
     $
7,410
  
Depreciation and amortization of intangible assets
   $
2,412
     $
716
     $
-
     $
3,128
  
 
The financial information summarized below is presented by reportable segment for the
nine
months ended
September 30, 2020
and
2019:
 
2020
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
   
 
 
 
  
 
 
 
  
Corporate/
    
 
 
 
(in thousands)
  
ITS
    
DME Services
    
Eliminations
    
Total
  
                                 
Net revenues - external
   $
45,369
     $
27,308
     $
-
     $
72,677
  
Net revenues - internal
    
-
      
3,955
      
(3,955
 )    
-
  
Total net revenues
    
45,369
      
31,263
      
(3,955
 )    
72,677
  
Gross profit
    
29,480
      
14,283
      
-
      
43,763
  
                                 
Selling , general and administrative expenses
    
 
      
 
      
35,971
      
35,971
  
Interest expense
    
 
      
 
      
(1,018
 )    
(1,018
 )
Other expense
    
 
      
 
      
(20
 )    
(20
 )
Provision for income taxes
    
 
      
 
      
(92
 )    
(92
 )
                                 
Net income
    
 
      
 
      
 
     $
6,662
  
                                 
Total Assets
   $
51,547
     $
26,761
     $
2,000
     $
80,308
  
Purchases of medical equipment
   $
6,705
     $
5,250
     $
-
     $
11,955
  
Depreciation and amortization of intangible assets
   $
8,042
     $
2,450
     $
-
     $
10,492
  
 
2019
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
   
 
 
 
  
 
 
 
  
Corporate/
    
 
 
 
(in thousands)
  
ITS
    
DME Services
    
Eliminations
    
Total
  
                                 
Net revenues - external
   $
37,182
     $
22,223
     $
-
     $
59,405
  
Net revenues - internal
    
-
      
2,789
      
(2,789
 )    
-
  
Total net revenues
    
37,182
      
25,012
      
(2,789
 )    
59,405
  
Gross profit
    
23,482
      
10,453
      
-
      
33,935
  
                                 
Selling, general and administrative expenses
    
 
      
 
      
31,721
      
31,721
  
Interest expense
    
 
      
 
      
(1,436
 )    
(1,436
 )
Other expense
    
 
      
 
      
(71
 )    
(71
 )
Provision for income taxes
    
 
      
 
      
(151
 )    
(151
 )
                                 
Net income
    
 
      
 
      
 
      
556
  
                                 
Total Assets
   $
54,757
     $
21,138
     $
2,000
     $
77,895
  
Purchases of medical equipment
   $
10,500
     $
4,505
     $
-
     $
15,005
  
Depreciation and amortization of intangible assets
   $
6,903
     $
2,150
     $
-
     $
9,053