Addus HomeCare Corp Segments Disclosure

14. Segment Information

 

Operating segments are defined as components of a company that engage in business activities from which it may earn revenues and incur expenses, and for which separate financial information is available and is regularly reviewed by the Company’s chief operating decision makers (“CODM”). The Company identifies its Chief Executive Officer and Chief Operating Officer together as CODM to assess the performance of the individual segments and make decisions about resources to be allocated to the segments. The Company operates as a multi-state provider of three business segments providing in-home services.

 

In its personal care segment, the Company provides non-medical assistance with activities of daily living, primarily to persons who are at increased risk of hospitalization or institutionalization, such as the elderly, chronically ill or disabled. In its hospice segment, the Company provides physical, emotional and spiritual care for people who are terminally ill as well as related services for their families. In its home health segment, the Company provides services that are primarily medical in nature to individuals who may require assistance during an illness or after hospitalization and include skilled nursing and physical, occupational and speech therapy.

 

The Company’s method for measuring profitability on each reportable segment basis is the same as those described in the summary of significant accounting policies and its CODM frequently reviews the actual result to budget variance to allocate resources to the segment and assess its performance. Segment operating income consists of revenue generated by a segment, less the direct costs of service revenues and general and administrative expenses that are incurred directly by the segment. Unallocated general and administrative costs are those costs for functions performed in a centralized manner and therefore not attributable to a particular segment. These costs include accounting, finance, human resources, legal, information technology, corporate office support and facility costs and overall corporate management.

 

The CODM does not review disaggregated assets by segment. The measure of segment assets is reported on the balance sheet as total consolidated assets.

 

The tables below set forth information about the Company’s reportable segments, including significant expenses, for the years ended December 31, 2025, 2024 and 2023 along with the items necessary to reconcile the segment information to the totals reported in the accompanying consolidated financial statements.

 

		For the Year Ended December 31, 2025
		(Amounts in Thousands)
		Personal Care				Hospice				Home Health				Total
Net service revenues		$	1,089,215			$	262,542			$	70,773			$	1,422,530
Direct service personnel			783,101				109,389				39,708				932,198
General and administrative salaries, wages and benefits			74,161				45,998				13,480				133,639
Other segment items (1)			24,752				39,741				5,134				69,627
Segment operating income			207,201				67,414				12,451				287,066
Segment reconciliation:
Items not allocated at segment level:
Other general and administrative expenses															132,039
Depreciation and amortization															16,412
Interest income															(2,442	)
Interest expense															13,612
Income before income taxes														$	127,445

 

(1)	Other segment items include other costs for direct service personnel, office expense, licenses & taxes, communication, medical director fees, travel and bad debt expense.

 

		For the Year Ended December 31, 2024
		(Amounts in Thousands)
		Personal Care				Hospice				Home Health				Total
Net service revenues		$	856,581			$	228,191			$	69,827			$	1,154,599
Direct service personnel			613,160				97,128				42,631				752,919
General and administrative salaries, wages and benefits			48,485				41,370				14,349				104,204
Other segment items (1)			20,719				37,762				4,913				63,394
Segment operating income			174,217				51,931				7,934				234,082
Segment reconciliation:
Items not allocated at segment level:
Other general and administrative expenses															117,861
Depreciation and amortization															13,530
Interest income															(4,394	)
Interest expense															7,732
Income before income taxes														$	99,353

 

(1)	Other segment items include other costs for direct service personnel, office expense, licenses & taxes, communication, medical director fees, travel and bad debt expense.

 

		For the Year Ended December 31, 2023
		(Amounts in Thousands)
		Personal Care				Hospice				Home Health				Total
Net service revenues		$	794,718			$	207,155			$	56,778			$	1,058,651
Direct service personnel			571,445				87,851				34,244				693,540
General and administrative salaries, wages and benefits			47,302				38,843				11,501				97,646
Other segment items (1)			18,442				35,608				4,021				58,071
Segment operating income			157,529				44,853				7,012				209,394
Segment reconciliation:
Items not allocated at segment level:
Other general and administrative expenses															104,312
Depreciation and amortization															14,126
Interest income															(1,476	)
Interest expense															11,106
Income before income taxes														$	81,326

 

(1)	Other segment items include other costs for direct service personnel, office expense, licenses & taxes, communication, medical director fees, travel and bad debt expense.