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BUSINESS SEGMENTS
6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
BUSINESS SEGMENTS BUSINESS SEGMENTS
The Company classifies its operations into the following reportable operating segments: (1) home health and hospice services, which includes the Company’s home health, hospice and home care businesses; and (2) senior living services, which includes the operation of assisted living, independent living and memory care communities. The reporting segments are business units that offer different services and are managed separately to provide greater visibility into those operations. The Company’s Chief Executive Officer, who is the Company’s Chief Operating Decision Maker (“CODM”), reviews financial information at the operating segment level. The Company also reports an “all other” category that includes general and administrative expense from the Company’s Service Center.

As of June 30, 2024, the Company provided services through 117 affiliated home health, hospice and home care agencies, and 54 affiliated senior living operations. The Company evaluates performance and allocates capital resources to each segment based on an operating model that is designed to maximize the quality of care provided and profitability. The Company’s Service Center provides various services to all lines of business. The Company does not review assets by segment and therefore assets by segment are not disclosed below.

The CODM uses Segment Adjusted EBITDAR from Operations as the primary measure of profit and loss for the Company's reportable segments and to compare the performance of its operations with those of its competitors. Segment Adjusted EBITDAR from Operations is net income (loss) attributable to the Company's reportable segments excluding interest expense, provision for income taxes, depreciation and amortization expense, rent, and, in order to view the operations performance on a comparable basis from period to period, certain adjustments including: (1) costs at start-up operations, (2) share-based compensation, (3) acquisition related costs and credit allowances, (4) the costs associated with transitioning operations, (5) unusual, non-recurring or redundant charges, and (6) net income attributable to noncontrolling interest. General and administrative expenses are not allocated to the reportable segments, and are included as “All Other,” accordingly the segment earnings measure reported is before allocation of corporate general and administrative expenses. The Company's segment measures may be different from the calculation methods used by other companies and, therefore, comparability may be limited.
The following tables present certain financial information regarding the Company’s reportable segments, general and administrative expenses are not allocated to the reportable segments and are included in “All Other” for the three and six months ended June 30, 2024 and 2023:

Home Health and Hospice ServicesSenior Living ServicesAll OtherTotal
Three Months Ended June 30, 2024
Revenue$125,301 $43,444 $— $168,745 
Segment Adjusted EBITDAR from Operations$21,214 $12,804 $(10,546)$23,472 
Three Months Ended June 30, 2023
Revenue$95,020 $37,261 $— $132,281 
Segment Adjusted EBITDAR from Operations$15,681 $11,680 $(7,885)$19,476 
Home Health and Hospice ServicesSenior Living ServicesAll OtherTotal
Six Months Ended June 30, 2024
Revenue$241,791 $83,869 $— $325,660 
Segment Adjusted EBITDAR from Operations$40,764 $24,815 $(20,707)$44,872 
Six Months Ended June 30, 2023
Revenue$186,099 $72,646 $— $258,745 
Segment Adjusted EBITDAR from Operations$30,093 $21,921 $(15,399)$36,615 
The following table provides a reconciliation of Segment Adjusted EBITDAR from Operations to Condensed Consolidated Income from Operations:

Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Segment Adjusted EBITDAR from Operations$23,472 $19,476 $44,872 $36,615 
Less: Depreciation and amortization1,468 1,214 2,799 2,494 
Rent—cost of services10,524 9,836 20,908 19,433 
Other (expense) income(2)35 83 65 
Adjustments to Segment EBITDAR from Operations:
Less: Costs at start-up operations(a)
(55)65 (137)268 
Share-based compensation expense and related taxes(b)
1,949 1,354 3,475 2,773 
Acquisition related costs and credit allowances(c)
365 72 502 104 
Costs associated with transitioning operations(d)
33 538 (595)585 
Unusual, non-recurring or redundant charges(e)
32 226 307 624 
Add: Net income attributable to noncontrolling interest404 125 556 272 
Condensed Consolidated Income from Operations$9,562 $6,261 $18,086 $10,541 
(a)Represents results related to start-up operations. This amount excludes rent and depreciation and amortization expense related to such operations.
(b)
Share-based compensation expense and related payroll taxes incurred. Share-based compensation expense and related payroll taxes are included in cost of services and general and administrative expense.
(c)
Non-capitalizable costs associated with acquisitions, credit allowances, and write offs for amounts in dispute with the prior owners of certain acquired operations.
(d)During the three months ended March 31, 2023, an affiliate of the Company placed its memory care units into transition and began seeking to sublease the units to an unrelated third party. The amount above represents the net operating impact attributable to the units in transition. The amounts reported exclude rent and depreciation and amortization expense related to such operations and include legal settlement costs associated with one of the entities transitioned to Ensign.
(e)Represents unusual or non-recurring charges for legal services, implementation costs, integration costs, and consulting fees in general and administrative and cost of services expenses.