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	)