Annual report pursuant to Section 13 and 15(d)

Note 12 - Business Segment Information

v3.21.1
Note 12 - Business Segment Information
 12 Months Ended
Dec. 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, 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:
 
2020
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
   
 
 
 
  
 
 
 
  
Corporate/
    
 
 
 
(in thousands)
  
ITS
    
DME Services
    
Eliminations
    
Total
  
                                 
Net revenues - external
   $
61,072
     $
36,316
     $
-
     $
97,388
  
Net revenues - internal
    
-
      
5,370
      
(5,370
 )    
-
  
Total net revenues
    
61,072
      
41,686
      
(5,370
 )    
97,388
  
Gross profit
    
39,773
      
18,986
      
-
      
58,759
  
                                 
Selling , general and administrative expenses
    
 
      
 
      
49,932
      
49,932
  
Interest expense
    
 
      
 
      
(1,255
 )    
(1,255
 )
Other expense
    
 
      
 
      
(29
 )    
(29
 )
Benefit from income taxes
    
 
      
 
      
9,789
      
9,789
  
                                 
Net income
    
 
      
 
      
 
     $
17,332
  
                                 
Total assets
   $
68,472
     $
26,519
     $
2,000
     $
96,991
  
Purchases of medical equipment
   $
9,583
     $
6,237
     $
-
     $
15,820
  
Depreciation and amortization of intangible assets
   $
10,708
     $
3,317
     $
-
     $
14,025
  
 
 
2019
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
   
 
 
 
  
 
 
 
  
Corporate/
    
 
 
 
(in thousands)
  
ITS
    
DME Services
    
Eliminations
    
Total
  
                                 
Net revenues - external
   $
51,540
     $
29,575
     $
-
     $
81,115
  
Net revenues - internal
    
-
      
3,788
      
(3,788
 )    
-
  
Total net revenues
    
51,540
      
33,363
      
(3,788
 )    
81,115
  
Gross profit
    
33,063
      
13,819
      
-
      
46,882
  
                                 
Selling, general and administrative expenses
    
 
      
 
      
43,357
      
43,357
  
Interest expense
    
 
      
 
      
(1,904
 )    
(1,904
 )
Other expense
    
 
      
 
      
(97
 )    
(97
 )
Provision for income taxes
    
 
      
 
      
(163
 )    
(163
 )
                                 
Net income
    
 
      
 
      
 
     $
1,361
  
                                 
Total assets
   $
54,292
     $
22,932
     $
2,000
     $
79,224
  
Purchases of medical equipment
   $
14,216
     $
5,453
     $
-
     $
19,669
  
Depreciation and amortization of intangible assets
   $
9,457
     $
2,885
     $
-
     $
12,342
  
 
The presentation of gross profit above was revised from the
2019
Consolidated Financial Statements to include inter-segment revenues in the DME Services segment column from the prior presentation within the Corporate/Eliminations column. This revision is considered immaterial to the prior period based on the Company's assessment.