XML 39 R27.htm IDEA: XBRL DOCUMENT v3.21.1
Segment Information
9 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Segment Information

19. Segment Information

The Company allocates resources based on three business operating segments: durable medical equipment, investment management and real estate with general corporate representing unallocated costs and activity to arrive at consolidated operations.  Activity not allocated to the segments include, but are not limited to, certain investment and financing activities, professional fees, costs associated with being a public company, acquisition costs and costs associated with executive and corporate management departments, including compensation, benefits, rent and insurance.

The following tables illustrate results of operations by segment:

 

 

For the three months ended March 31, 2021

 

(in thousands)

 

Durable Medical Equipment

 

 

Investment Management

 

 

Real Estate

 

 

General Corporate

 

 

Intercompany Eliminations(1)

 

 

Consolidated Total

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

$

13,117

 

 

$

739

 

 

$

1,276

 

 

$

162

 

 

$

(173

)

 

$

15,121

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of durable medical equipment sold and services

 

 

(3,806

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(3,806

)

Cost of durable medical equipment rentals

 

 

(1,657

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,657

)

Depreciation and amortization

 

 

(508

)

 

 

(109

)

 

 

(430

)

 

 

(1

)

 

 

-

 

 

 

(1,048

)

Stock-based compensation(2)

 

 

-

 

 

 

(181

)

 

 

-

 

 

 

(435

)

 

 

-

 

 

 

(616

)

Transaction costs(3)

 

 

(107

)

 

 

-

 

 

 

-

 

 

 

(155

)

 

 

-

 

 

 

(262

)

Other selling, general and administrative

 

 

(6,023

)

 

 

(723

)

 

 

(128

)

 

 

(1,410

)

 

 

173

 

 

 

(8,111

)

Total operating expenses

 

 

(12,101

)

 

 

(1,013

)

 

 

(558

)

 

 

(2,001

)

 

 

173

 

 

 

(15,500

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(1,280

)

 

 

(25

)

 

 

(645

)

 

 

(1,460

)

 

 

1,231

 

 

 

(2,179

)

Other income (expense)

 

 

(4,795

)

 

 

-

 

 

 

-

 

 

 

5,623

 

 

 

(1,231

)

 

 

(403

)

Total other expense, net

 

 

(6,075

)

 

 

(25

)

 

 

(645

)

 

 

4,163

 

 

 

-

 

 

 

(2,582

)

Total pre-tax income (loss)

 

$

(5,059

)

 

$

(299

)

 

$

73

 

 

$

2,324

 

 

$

-

 

 

$

(2,961

)

 

 

 

For the three months ended March 31, 2020

 

(in thousands)

 

Durable Medical Equipment

 

 

Investment Management

 

 

Real Estate

 

 

General Corporate

 

 

Intercompany Eliminations(1)

 

 

Consolidated Total

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

$

14,131

 

 

$

829

 

 

$

1,276

 

 

$

34

 

 

$

(34

)

 

$

16,236

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of durable medical equipment sold and services

 

 

(3,966

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(3,966

)

Cost of durable medical equipment rentals

 

 

(2,072

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(2,072

)

Depreciation and amortization

 

 

(472

)

 

 

(150

)

 

 

(430

)

 

 

(1

)

 

 

-

 

 

 

(1,053

)

Stock-based compensation(2)

 

 

-

 

 

 

373

 

 

 

-

 

 

 

(106

)

 

 

-

 

 

 

267

 

Transaction costs(3)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(286

)

 

 

-

 

 

 

(286

)

Other general and administrative

 

 

(8,113

)

 

 

(522

)

 

 

(125

)

 

 

(1,409

)

 

 

34

 

 

 

(10,135

)

Total operating expenses

 

 

(14,623

)

 

 

(299

)

 

 

(555

)

 

 

(1,802

)

 

 

34

 

 

 

(17,245

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(906

)

 

 

(39

)

 

 

(654

)

 

 

(155

)

 

 

-

 

 

 

(1,754

)

Other income (expense)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(9,303

)

 

 

-

 

 

 

(9,303

)

Total other expense, net

 

 

(906

)

 

 

(39

)

 

 

(654

)

 

 

(9,458

)

 

 

-

 

 

 

(11,057

)

Total pre-tax income (loss)

 

$

(1,398

)

 

$

491

 

 

$

67

 

 

$

(11,226

)

 

$

-

 

 

$

(12,066

)

 

 

 

For the nine months ended March 31, 2021

 

(in thousands)

 

Durable Medical Equipment

 

 

Investment Management

 

 

Real Estate

 

 

General Corporate

 

 

Intercompany Eliminations(1)

 

 

Consolidated Total

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

$

42,270

 

 

$

2,272

 

 

$

3,824

 

 

$

298

 

 

$

(309

)

 

$

48,355

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of durable medical equipment sold and services

 

 

(12,716

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(12,716

)

Cost of durable medical equipment rentals

 

 

(5,193

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(5,193

)

Depreciation and amortization

 

 

(1,433

)

 

 

(364

)

 

 

(1,291

)

 

 

(2

)

 

 

-

 

 

 

(3,090

)

Stock-based compensation(2)

 

 

-

 

 

 

(572

)

 

 

-

 

 

 

(758

)

 

 

-

 

 

 

(1,330

)

Transaction costs(3)

 

 

(194

)

 

 

-

 

 

 

-

 

 

 

(416

)

 

 

-

 

 

 

(610

)

Other selling, general and administrative

 

 

(21,822

)

 

 

(1,974

)

 

 

(380

)

 

 

(3,562

)

 

 

309

 

 

 

(27,429

)

Total operating expenses

 

 

(41,358

)

 

 

(2,910

)

 

 

(1,671

)

 

 

(4,738

)

 

 

309

 

 

 

(50,368

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(2,676

)

 

 

(76

)

 

 

(1,942

)

 

 

(2,584

)

 

 

1,231

 

 

 

(6,047

)

Other income (expense)

 

 

(6,631

)

 

 

-

 

 

 

-

 

 

 

8,201

 

 

 

(1,231

)

 

 

339

 

Total other income (expense), net

 

 

(9,307

)

 

 

(76

)

 

 

(1,942

)

 

 

5,617

 

 

 

-

 

 

 

(5,708

)

Total pre-tax income (loss)

 

$

(8,395

)

 

$

(714

)

 

$

211

 

 

$

1,177

 

 

$

-

 

 

$

(7,721

)

 

 

 

For the nine months ended March 31, 2020

 

(in thousands)

 

Durable Medical Equipment

 

 

Investment Management

 

 

Real Estate

 

 

General Corporate

 

 

Intercompany Eliminations(1)

 

 

Consolidated Total

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

$

41,753

 

 

$

2,585

 

 

$

3,820

 

 

$

114

 

 

$

(114

)

 

$

48,158

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of durable medical equipment sold and services

 

 

(11,118

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(11,118

)

Cost of durable medical equipment rentals

 

 

(6,522

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(6,522

)

Depreciation and amortization

 

 

(1,449

)

 

 

(508

)

 

 

(1,291

)

 

 

(2

)

 

 

-

 

 

 

(3,250

)

Stock-based compensation(2)

 

 

-

 

 

 

100

 

 

 

-

 

 

 

(334

)

 

 

-

 

 

 

(234

)

Transaction costs(3)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(863

)

 

 

-

 

 

 

(863

)

Other selling, general and administrative

 

 

(22,721

)

 

 

(1,604

)

 

 

(375

)

 

 

(3,738

)

 

 

114

 

 

 

(28,324

)

Total operating expenses

 

 

(41,810

)

 

 

(2,012

)

 

 

(1,666

)

 

 

(4,937

)

 

 

114

 

 

 

(50,311

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(2,839

)

 

 

(122

)

 

 

(1,967

)

 

 

(155

)

 

 

-

 

 

 

(5,083

)

Other income (expense)

 

 

3

 

 

 

-

 

 

 

-

 

 

 

(9,995

)

 

 

-

 

 

 

(9,992

)

Total other income (expense), net

 

 

(2,836

)

 

 

(122

)

 

 

(1,967

)

 

 

(10,150

)

 

 

-

 

 

 

(15,075

)

Total pre-tax income (loss)

 

$

(2,893

)

 

$

451

 

 

$

187

 

 

$

(14,973

)

 

$

-

 

 

$

(17,228

)

 

(1)

The Company’s wholly-owned subsidiary, DME Manager, provides advisory services to DME Inc. and receives consulting fee from DME Inc. for those services.  DME Manager is part of general corporate operations while DME Inc. is part of the durable medical equipment segment.  The corresponding expense to DME Inc. and revenue to DME Manager are eliminated in consolidation.  Beginning December 29, 2020, DME Manager also provides advisory services to Forest and receives a consulting fee from Forest for those services.  Both DME Manager and Forest are part of general corporate operations, and the corresponding revenue and expense are eliminated in consolidation.  Additionally, Forest owns Series A-1 Preferred Stock and Series A-2 Preferred Stock of HC LLC.  Forest is part of general corporate operations while HC LLC is part of the durable medical equipment segment.  The corresponding interest expense to HC LLC and interest income to Forest are eliminated in consolidation.

(2)

Stock-based compensation attributable to the investment management segment is included in investment management expenses in the condensed consolidated statements of operations.  Stock-based compensation attributable to the general corporate segment is included in selling, general and administrative expense in the condensed consolidated statements of operations.

(3)

Transaction costs, which consist of legal and other professional services incurred in connection with consummated and unconsummated transactions, are included in selling, general and administrative expense in the condensed consolidated statements of operations.

The following tables illustrate assets by segment:

 

 

As of March 31, 2021

 

(in thousands)

 

Durable Medical Equipment

 

 

Investment Management

 

 

Real Estate

 

 

General Corporate

 

 

Total

 

Fixed assets, net

 

$

8,061

 

 

$

26

 

 

$

52,271

 

 

$

2

 

 

$

60,360

 

Identifiable intangible assets, net

 

 

7,428

 

 

 

1,929

 

 

 

4,497

 

 

 

-

 

 

 

13,854

 

Goodwill

 

 

50,658

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

50,658

 

Other assets

 

 

20,751

 

 

 

2,932

 

 

 

2,660

 

 

 

64,042

 

 

 

90,385

 

Total

 

$

86,898

 

 

$

4,887

 

 

$

59,428

 

 

$

64,044

 

 

$

215,257

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of June 30, 2020

 

(in thousands)

 

Durable Medical Equipment

 

 

Investment Management

 

 

Real Estate

 

 

General Corporate

 

 

Total

 

Fixed assets, net

 

$

8,854

 

 

$

35

 

 

$

53,188

 

 

$

4

 

 

$

62,081

 

Identifiable intangible assets, net

 

 

7,974

 

 

 

2,284

 

 

 

4,871

 

 

 

-

 

 

 

15,129

 

Goodwill

 

 

50,010

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

50,010

 

Other assets

 

 

19,055

 

 

 

2,654

 

 

 

2,171

 

 

 

44,345

 

 

 

68,225

 

Total

 

$

85,893

 

 

$

4,973

 

 

$

60,230

 

 

$

44,349

 

 

$

195,445