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Business Segments
9 Months Ended
Sep. 30, 2016
Segment Reporting [Abstract]  
Business Segments

8. BUSINESS SEGMENTS

The Company provides services to healthcare organizations and other members within the healthcare industry. The Company’s services are focused on the delivery of workforce development products and services (HealthStream Workforce Solutions), survey and research services (HealthStream Patient Experience Solutions), and provider credentialing, privileging, call center and enrollment products and services (HealthStream Provider Solutions).

The Company measures segment performance based on operating income before income taxes and prior to the allocation of certain corporate overhead expenses, interest income, interest expense, and depreciation. The Unallocated component below includes corporate functions, such as accounting, human resources, legal, investor relations, administrative, and executive personnel, depreciation, a portion of amortization, and certain other expenses, which are not currently allocated in measuring segment performance. The following is the Company’s business segment information as of and for the three and nine months ended September 30, 2016 and 2015 (in thousands).

 

     Three Months Ended
September 30,
     Nine Months Ended
September 30,
 
     2016      2015      2016      2015  

Revenues, net:

           

Workforce

   $ 43,015       $ 41,092       $ 124,489       $ 118,488   

Patient Experience

     8,931         8,792         25,862         25,545   

Provider

     6,421         3,951         16,886         9,103   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total revenues, net

   $ 58,367       $ 53,835       $ 167,237       $ 153,136   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

     Three Months Ended
September 30,
     Nine Months Ended
September 30,
 
     2016      2015      2016      2015  

Income from operations:

           

Workforce

   $ 9,386       $ 10,386       $ 29,034       $ 29,789   

Patient Experience

     471         807         (319      1,737   

Provider

     (959      (852      (681      (1,638

Unallocated

     (7,612      (6,016      (21,946      (18,209
  

 

 

    

 

 

    

 

 

    

 

 

 

Total income from operations

   $ 1,286       $ 4,325       $ 6,088       $ 11,679   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

     September 30,
2016
     December 31,
2015
 

Segment assets *

     

Workforce

   $ 93,350       $ 82,375   

Patient Experience

     35,724         34,902   

Provider

     152,162         100,948   

Unallocated

     112,815         161,344   
  

 

 

    

 

 

 

Total assets

   $ 394,051       $ 379,569   
  

 

 

    

 

 

 

 

* Segment assets include accounts and unbilled receivables, prepaid and other current assets, other assets, capitalized software development, certain property and equipment, and intangible assets. Cash and cash equivalents and marketable securities are not allocated to individual segments, and are included within Unallocated. A significant portion of property and equipment assets are included within Unallocated.