Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.20.2
Segment Information
 9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company's reporting segments include (1) home health services, (2) hospice services, (3) home and community-based services, (4) facility-based services, and (5) HCI.  The accounting policies of the segments are the same as those described in the summary of significant accounting policies, as described in Note 2 of the Notes to Condensed Consolidated Financial Statements.
Reportable segments have been identified based upon how management has organized the business by services provided to customers and how the chief operating decision maker manages the business and allocates resources, consistent with the criteria in ASC 280, Segment Reporting.
The following tables summarize the Company’s segment information for the three and nine months ended September 30, 2020 and 2019 (amounts in thousands):
  Three Months Ended September 30, 2020
  Home health services Hospice services Home and community-based services Facility-based services HCI Total
Net service revenue $ 373,450  $ 59,801  $ 48,387  $ 33,344  $ 15,702  $ 530,684 
Cost of service revenue (excluding depreciation and amortization) 205,523  37,180  36,664  22,213  3,666  305,246 
General and administrative expenses 118,792  16,668  10,937  11,439  3,627  161,463 
Impairment of intangibles and other 22  —  —  —  —  22 
Government stimulus (income) expense 35,019  4,731  2,865  1,656  164  44,435 
Operating income (loss) 14,094  1,222  (2,079) (1,964) 8,245  19,518 
Interest expense (310) (51) (37) (22) (11) (431)
Income (loss) before income taxes and noncontrolling interest 13,784  1,171  (2,116) (1,986) 8,234  19,087 
Income tax expense (benefit) 3,403  247  (440) (435) 1,820  4,595 
Net income (loss) 10,381  924  (1,676) (1,551) 6,414  14,492 
Less net income (loss) attributable to non controlling interests (157) 321  (153) (12) (7) (8)
Net income (loss) attributable to LHC Group, Inc.'s common stockholder $ 10,538  $ 603  $ (1,523) $ (1,539) $ 6,421  $ 14,500 
Total assets $ 1,721,278  $ 277,358  $ 263,414  $ 108,118  $ 86,168  $ 2,456,336 
 
  Three Months Ended September 30, 2019
  Home health services Hospice services Home and community-based services Facility-based services HCI Total
Net service revenue $ 375,599  $ 62,028  $ 53,411  $ 28,715  $ 8,746  $ 528,499 
Cost of service revenue (excluding depreciation and amortization) 237,414  35,819  39,694  18,508  3,333  334,768 
General and administrative expenses 108,318  15,218  10,809  9,498  2,986  146,829 
Impairment of intangibles and other 197  —  —  —  —  197 
Operating income 29,670  10,991  2,908  709  2,427  46,705 
Interest expense (1,758) (310) (272) (174) (82) (2,596)
Income before income taxes and noncontrolling interest 27,912  10,681  2,636  535  2,345  44,109 
Income tax expense 5,900  1,689  1,299  144  476  9,508 
Net income 22,012  8,992  1,337  391  1,869  34,601 
Less net income (loss) attributable to noncontrolling interests 3,577  1,213  (180) (67) (9) 4,534 
Net income attributable to LHC Group, Inc.'s common stockholders $ 18,435  $ 7,779  $ 1,517  $ 458  $ 1,878  $ 30,067 
Total assets $ 1,458,991  $ 235,865  $ 243,779  $ 88,905  $ 70,324  $ 2,097,864 
  Nine Months Ended September 30, 2020
  Home health services Hospice services Home and community-based services Facility-based services HCI Total
Net service revenue $ 1,081,143  $ 181,387  $ 144,526  $ 96,664  $ 27,155  $ 1,530,875 
Cost of service revenue (excluding depreciation and amortization) 631,109  112,485  113,864  64,340  11,362  933,160 
General and administrative expenses 345,024  49,560  33,520  31,984  9,815  469,903 
Impairment of intangibles and other 22  600  —  —  —  622 
Government stimulus (income) expense —  —  —  —  —  — 
Operating income (loss) 104,988  18,742  (2,858) 340  5,978  127,190 
Interest expense (2,804) (451) (382) (288) (115) (4,040)
Income (loss) before income taxes and noncontrolling interest 102,184  18,291  (3,240) 52  5,863  123,150 
Income tax expense (benefit) 19,499  3,294  (658) (261) 1,307  23,181 
Net income (loss) 82,685  14,997  (2,582) 313  4,556  99,969 
Less net income (loss) attributable to non controlling interests 14,371  3,452  (275) 1,228  (23) 18,753 
Net income (loss) attributable to LHC Group, Inc.'s common stockholder $ 68,314  $ 11,545  $ (2,307) $ (915) $ 4,579  $ 81,216 
  Nine Months Ended September 30, 2019
  Home health services Hospice services Home and community-based services Facility-based services HCI Total
Net service revenue $ 1,113,887  $ 168,821  $ 157,610  $ 84,391  $ 24,217  $ 1,548,926 
Cost of service revenue (excluding depreciation and amortization) 694,082  103,853  119,054  53,812  10,819  981,620 
General and administrative expenses 322,115  45,167  33,004  28,010  12,338  440,634 
Impairment of intangibles and other 7,263  271  —  —  —  7,534 
Operating income 90,427  19,530  5,552  2,569  1,060  119,138 
Interest expense (5,919) (976) (857) (524) (257) (8,533)
Income before income taxes and noncontrolling interest 84,508  18,554  4,695  2,045  803  110,605 
Income tax expense 17,178  3,716  1,279  297  195  22,665 
Net income 67,330  14,838  3,416  1,748  608  87,940 
Less net income (loss) attributable to noncontrolling interests 11,305  2,712  (757) 779  (22) 14,017 
Net income attributable to LHC Group, Inc.'s common stockholders $ 56,025  $ 12,126  $ 4,173  $ 969  $ 630  $ 73,923