Quarterly report pursuant to Section 13 or 15(d)

Business Segment Information

v3.23.3
Business Segment Information
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Business Segment Information Business Segment Information
During the second quarter of 2023, the Company renamed its two operating segments. Prior to that time, the Patient Services segment was known as Integrated Therapy Services and the Device Solutions segment was known as Durable Medical Equipment Services. The changes were for marketing purposes only and there were no changes to the operations of either segment. The Company’s reportable segments are organized based on service platforms, with the Patient Services segment reflecting higher margin rental revenues that generally include payments made by third-party and direct payers and the Device Solutions segment reflecting lower margin product sales, direct payer rental and service 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, 2023 and 2022:
2023
(in thousands) Patient Services Device Solutions
Corporate/
Eliminations
Total
 
Net revenues - external $ 19,289 $ 12,620 $ — $ 31,909
Net revenues - internal — 1,598 (1,598) —
Total net revenues 19,289 14,218 (1,598) 31,909
Gross profit 11,837 4,409 — 16,246
Selling, general and administrative expenses 14,549 14,549
Interest expense (563) (563)
Other expense (14) (14)
Provision for income taxes (431) (431)
Net income $ 689
Total assets $ 57,838 $ 42,233 $ 2,000 $ 102,071
Purchases of medical equipment $ 650 $ 859 $ — $ 1,509
Depreciation and amortization of intangible assets $ 2,038 $ 1,030 $ — $ 3,068
2022
(in thousands) Patient Services Device Solutions
Corporate/
Eliminations
Total
Net revenues - external $ 17,375 $ 9,904 $ — $ 27,279
Net revenues - internal — 1,610 (1,610) —
Total net revenues 17,375 11,514 (1,610) 27,279
Gross profit 11,400 4,819 — 16,219
Selling, general and administrative expenses 15,276 15,276
Interest expense (385) (385)
Other expense (11) (11)
Provision for income taxes (104) (104)
Net income $ 443
Total assets $ 61,735 $ 35,246 $ 2,000 $ 98,981
Purchases of medical equipment $ 2,088 $ 1,695 $ — $ 3,783
Depreciation and amortization of intangible assets $ 2,425 $ 1,015 $ — $ 3,440

The financial information summarized below is presented by reportable segment for the nine months ended September 30, 2023 and 2022:
2023
(in thousands) Patient Services Device Solutions
Corporate/
Eliminations
Total
 
Net revenues - external $ 57,382 $ 36,632 $ — $ 94,014
Net revenues - internal — 4,909 (4,909) —
Total net revenues 57,382 41,541 (4,909) 94,014
Gross profit 35,223 13,005 — 48,228
Selling, general and administrative expenses 45,390 45,390
Interest expense (1,667) (1,667)
Other expense (47) (47)
Provision for income taxes (324) (324)
Net income $ 800
Total assets $ 57,838 $ 42,233 $ 2,000 $ 102,071
Purchases of medical equipment $ 4,862 $ 3,641 $ — $ 8,503
Depreciation and amortization of intangible assets $ 6,294 $ 3,070 $ — $ 9,364
2022
(in thousands) Patient Services Device Solutions
Corporate/
Eliminations
Total
Net revenues - external $ 51,260 $ 29,824 $ — $ 81,084
Net revenues - internal — 4,860 (4,860) —
Total net revenues 51,260 34,684 (4,860) 81,084
Gross profit 32,251 14,236 — 46,487
Selling, general and administrative expenses 45,862 45,862
Interest expense (976) (976)
Other expense (69) (69)
Benefit from income taxes 331 331
Net loss $ (89)
Total assets $ 61,735 $ 35,246 $ 2,000 $ 98,981
Purchases of medical equipment $ 6,924 $ 3,528 $ — $ 10,452
Depreciation and amortization of intangible assets $ 7,194 $ 3,062 $ — $ 10,256