Segments |
Segments
During the three months ended March 31, 2019, the Company substantially completed its Organizational Consolidation changing from a holding company that previously owned a portfolio of companies to an operating company structure that provides NET services and has an investment in Matrix. As a result, beginning January 1, 2019, the Company’s chief operating decision maker reviews financial performance and allocates resources based on two segments as follows:
| | • | NET Services - which operates primarily under the brands LogistiCare and Circulation, is the largest manager of NET programs for state governments and MCOs in the U.S and includes the Company’s activities for executive, accounting, finance, internal audit, tax, legal, certain strategic and development functions and the Company’s captive insurance company. |
| | • | Matrix Investment - which consists of a minority investment in Matrix, a nationwide provider of home and mobile-based healthcare services for health plans in the U.S., including CHAs, quality gap closure visits, “level of service” needs assessments, and post-acute and chronic care management, providing such services through a network of community-based clinicians, and a fleet of mobile health clinics with advanced diagnostics capabilities. |
We have reclassified prior period segment amounts to conform to the current presentation, which are summarized as follows: | | | | | | | | | | | | | | | | | | Three months ended March 31, 2018 | | As Previously Reported (1) | | Segment Reclassification | | Other Reclassification (Note 1) | | As Reported | General and administrative | | | | | | |
|
| NET Services | $ | 2,449 |
| | $ | 7,863 |
| | $ | 7,586 |
| | $ | 17,898 |
| Corporate and Other | 7,863 |
| | (7,863 | ) | | — |
| | — |
| Depreciation and amortization | | | | | | |
|
| NET Services | 3,494 |
| | 86 |
| | — |
| | 3,580 |
| Corporate and Other | 86 |
| | (86 | ) | | — |
| | — |
| Operating income (loss) | | | | | | | | NET Services | 20,052 |
| | (7,949 | ) | | — |
| | 12,103 |
| Corporate and Other | (7,949 | ) | | 7,949 |
| | — |
| | — |
|
(1) Adjusted for discontinued operations, as described in note 15.
The following tables set forth certain financial information from continuing operations attributable to the Company’s business segments: | | | | | | | | | | | | | | Three months ended March 31, 2019 | | NET Services | | Matrix Investment | | Total | Service revenue, net | $ | 367,815 |
| | $ | — |
| | $ | 367,815 |
| Service expense | 340,498 |
| | — |
| | 340,498 |
| General and administrative expense | 19,401 |
| | — |
| | 19,401 |
| Depreciation and amortization | 4,475 |
| | — |
| | 4,475 |
| Operating income | $ | 3,441 |
| | $ | — |
| | $ | 3,441 |
| | | | | | | Equity in net loss of investee | $ | — |
| | $ | (1,656 | ) | | $ | (1,656 | ) | | | | | | | | March 31, 2019 | Total assets (continuing operations) | $ | 449,281 |
| | $ | 159,546 |
| | $ | 608,827 |
|
| | | | | | | | | | | | | | Three months ended March 31, 2018 | | NET Services | | Matrix Investment | | Total | Service revenue, net | $ | 336,696 |
| | $ | — |
| | $ | 336,696 |
| Service expense | 303,115 |
| | — |
| | 303,115 |
| General and administrative expense | 17,898 |
| | — |
| | 17,898 |
| Depreciation and amortization | 3,580 |
| | — |
| | 3,580 |
| Operating income | $ | 12,103 |
| | $ | — |
| | $ | 12,103 |
| | | | | | | Equity in net loss of investee | $ | — |
| | $ | (2,344 | ) | | $ | (2,344 | ) |
|