Annual report pursuant to Section 13 and 15(d)

Business segments

v2.4.0.8
Business segments
12 Months Ended
Sep. 30, 2014
Business segments  
Business segments

2. Business segments

        The Company is organized and managed based upon the services it provides. We operate in two business segments, Health Services and Human Services. The results of these segments for the three years ended September 30, 2014 are shown below (in thousands):

                                                                                                                                                                                                             

 

 

Year ended September 30,

 

 

 

2014

 

2013

 

2012

 

Revenue:

 

 

 

 

 

 

 

 

 

 

Health Services

 

$

1,250,565

 

$

862,879

 

$

671,181

 

Human Services

 

 

450,347

 

 

468,400

 

 

378,964

 

 

 

 

 

 

 

 

 

Total

 

$

1,700,912

 

$

1,331,279

 

$

1,050,145

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit:

 

 

 

 

 

 

 

 

 

 

Health services

 

$

325,559

 

$

248,100

 

$

172,456

 

Human Services

 

 

126,564

 

 

137,933

 

 

115,487

 

 

 

 

 

 

 

 

 

Total

 

$

452,123

 

$

386,033

 

$

287,943

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expense:

 

 

 

 

 

 

 

 

 

 

Health Services

 

$

150,181

 

$

118,266

 

$

91,837

 

Human Services

 

 

76,022

 

 

79,842

 

 

65,565

 

Acquisition-related expenses

 

 

 

 

2,168

 

 

2,876

 

Legal and settlement expenses /(recoveries), net

 

 

596

 

 

(202

)

 

90

 

Other

 

 

16

 

 

804

 

 

241

 

 

 

 

 

 

 

 

 

Total

 

$

226,815

 

$

200,878

 

$

160,609

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

 

 

 

 

 

 

 

 

Health Services

 

$

175,378

 

$

129,834

 

$

80,619

 

Human Services

 

 

50,542

 

 

58,091

 

 

49,922

 

Acquisition-related expenses

 

 

 

 

(2,168

)

 

(2,876

)

Legal and settlement recoveries / (expenses), net

 

 

(596

)

 

202

 

 

(90

)

Other

 

 

(16

)

 

(804

)

 

(241

)

 

 

 

 

 

 

 

 

Total

 

$

225,308

 

$

185,155

 

$

127,334

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization:

 

 

 

 

 

 

 

 

 

 

Health Services

 

$

36,740

 

$

20,846

 

$

16,908

 

Human Services

 

 

11,928

 

 

14,970

 

 

9,552

 

 

 

 

 

 

 

 

 

Total

 

$

48,668

 

$

35,816

 

$

26,460

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

        Acquisition-related expenses are costs directly incurred from the purchases of HML in 2013 and PSI in 2012, as well as any unsuccessful transactions. No significant costs were incurred in the acquisition of Centacare. Legal and settlement expenses (recoveries), net consists of costs, net of reimbursed insurance claims, related to significant legal settlements and non-routine legal matters, including future probable legal costs estimated to be incurred in connection with those matters. Legal expenses incurred in the ordinary course of business are included in their respective business segments.

        We operate primarily in the United States, Australia, Canada, the United Kingdom and Saudi Arabia.

        Our revenue was distributed as follows (in thousands):

                                                                                                                                                                                                              

 

 

Year ended September 30,

 

 

 

2014

 

2013

 

2012

 

United States

 

$

1,306,026 

 

$

999,419 

 

$

775,871 

 

Australia

 

 

170,727 

 

 

157,383 

 

 

163,482 

 

Rest of World

 

 

224,159 

 

 

174,477 

 

 

110,792 

 

 

 

 

 

 

 

 

 

Total

 

$

1,700,912 

 

$

1,331,279 

 

$

1,050,145 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

        Identifiable assets for the segments are shown below (in thousands):

                                                                                                                                                                                                              

 

 

Year Ended
September 30,

 

 

 

2014

 

2013

 

Health Services

 

$

511,188 

 

$

518,914 

 

Human Services

 

 

152,243 

 

 

221,604 

 

Corporate / Other

 

 

237,565 

 

 

117,460 

 

 

 

 

 

 

 

Total

 

$

900,996 

 

$

857,978 

 

 

 

 

 

 

 

 

 

 

 

 

 

        Our long-lived assets, consisting of property and equipment, capitalized software costs and deferred compensation plan assets, were distributed as follows (in thousands):

                                                                                                                                                                                                              

 

 

Year Ended
September 30,

 

 

 

2014

 

2013

 

United States

 

$

93,500 

 

$

88,812 

 

Canada

 

 

27,043 

 

 

24,135 

 

Australia

 

 

8,769 

 

 

9,459 

 

Rest of World

 

 

7,794 

 

 

6,074 

 

 

 

 

 

 

 

Total

 

$

137,106 

 

$

128,480