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Segments

6 Months Ended

Jun. 30, 2019

Effective January 1, 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 June 30, 2018
	As Previously Reported⁽¹⁾			Segment Reclassification			Other Reclassification (Note 1)		As Reported
General and administrative^:
NET Services	$	2,770		$	8,984		$	6,385	$	18,139
Corporate and Other	8,984			(8,984		)	—		—
Depreciation and amortization:
NET Services	3,511			236			—		3,747
Corporate and Other	236			(236		)	—		—
Operating income (loss)^:
NET Services	12,379			(8,948		)	—		3,431
Corporate and Other	(8,948		)	8,948			—		—

⁽¹⁾ Adjusted for discontinued operations, as described in Note 15.



	Six Months Ended June 30, 2018
	As Previously Reported ⁽¹⁾			Segment Reclassification			Other Reclassification (Note 1)		As Reported
General and administrative:
NET Services	$	5,218		$	16,848		$	13,971	$	36,037
Corporate and Other	16,848			(16,848		)	—		—
Depreciation and amortization:
NET Services	7,005			322			—		7,327
Corporate and Other	322			(322		)	—		—
Operating income (loss):
NET Services	32,433			(16,899		)	—		15,534
Corporate and Other	(16,899		)	16,899			—		—

The following tables set forth certain financial information from continuing operations attributable to the Company’s business segments:



	Three months ended June 30, 2019
	NET Services			Matrix Investment			Total
Service revenue, net	$	363,911		$	—		$	363,911
Service expense	345,948			—			345,948
General and administrative expense	16,860			—			16,860
Depreciation and amortization	4,353			—			4,353
Operating loss	$	(3,250	)	$	—		$	(3,250	)

Equity in net loss of investee	$	—		$	(1,315	)	$	(1,315	)

	June 30, 2019
Total assets (continuing operations)	$	443,703		$	157,948		$	601,651



	Six Months Ended June 30, 2019
	NET Services		Matrix Investment			Total
Service revenue, net	$	731,726	$	—		$	731,726
Service expense	686,446		—			686,446
General and administrative expense	36,262		—			36,262
Depreciation and amortization	8,827		—			8,827
Operating income	$	191	$	—		$	191

Equity in net loss of investee	$	—	$	(2,971	)	$	(2,971	)



	Three months ended June 30, 2018
	NET Services		Matrix Investment			Total
Service revenue, net	$	343,736	$	—		$	343,736
Service expense	317,741		—			317,741
General and administrative expense	18,139		—			18,139
Asset impairment charge	678		—			678
Depreciation and amortization	3,747		—			3,747
Operating income	$	3,431	$	—		$	3,431

Equity in net loss of investee	$	—	$	(174	)	$	(174	)



	Six Months Ended June 30, 2018
	NET Services		Matrix Investment			Total
Service revenue, net	$	680,432	$	—		$	680,432
Service expense	620,856		—			620,856
General and administrative expense	36,037		—			36,037
Asset impairment charge	678		—			678
Depreciation and amortization	7,327		—			7,327
Operating income	$	15,534	$	—		$	15,534

Equity in net loss of investee	$	—	$	(2,519	)	$	(2,519	)