Annual report pursuant to Section 13 and 15(d)

Note 12 - Business Segment Information

v3.20.1
Note 12 - Business Segment Information
12 Months Ended
Dec. 31, 2019
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 has recast the
2018
segment information to reflect this change. 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 payors and the DME Services segment reflecting lower margin product sales and direct payor 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:
 
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
     
10,031
     
3,788
     
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
 
 
2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
Corporate/
   
 
 
 
(in thousands)
 
ITS
   
DME Services
   
Eliminations
   
Total
 
                                 
Net revenues - external
  $
41,443
    $
25,695
    $
-
    $
67,138
 
Net revenues - internal
   
-
     
3,556
     
(3,556
)    
-
 
Total net revenues
   
41,443
     
29,251
     
(3,556
)    
67,138
 
Gross profit
   
25,889
     
10,125
     
3,556
     
39,570
 
                                 
Selling, general and administrative expenses
   
 
     
 
     
39,155
     
39,155
 
Interest expense
   
 
     
 
     
(1,420
)    
(1,420
)
Other expense
   
 
     
 
     
(37
)    
(37
)
Provision for income taxes
   
 
     
 
     
(53
)    
(53
)
                                 
Net income
   
 
     
 
     
 
     
(1,095
)
                                 
Total Assets
  $
42,963
    $
19,110
    $
2,000
    $
64,073
 
Purchases of medical equipment
  $
4,529
    $
3,493
    $
-
    $
8,022
 
Depreciation and amortization of intangible assets
  $
8,586
    $
2,721
    $
-
    $
11,307