| Schedule of financial information for each of the Company's business segments |
The table below provides certain financial information for each of our business segments.
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Three Months Ended March 31, |
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Six Months Ended March 31, |
(dollars in thousands) |
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2017 |
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% (1) |
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2016 |
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% (1) |
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2017 |
|
% (1) |
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2016 |
|
% (1) |
Revenue: |
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Health Services |
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$ |
348,994 |
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|
100 |
% |
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$ |
330,567 |
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|
100 |
% |
|
$ |
689,723 |
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|
100 |
% |
|
$ |
622,470 |
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|
100 |
% |
U.S. Federal Services |
|
145,370 |
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|
100 |
% |
|
150,191 |
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|
100 |
% |
|
286,668 |
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100 |
% |
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295,476 |
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|
100 |
% |
Human Services |
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127,683 |
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100 |
% |
|
125,695 |
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100 |
% |
|
253,220 |
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100 |
% |
|
245,229 |
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|
100 |
% |
Total |
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$ |
622,047 |
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100 |
% |
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$ |
606,453 |
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100 |
% |
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$ |
1,229,611 |
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100 |
% |
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$ |
1,163,175 |
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|
100 |
% |
Gross profit: |
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Health Services |
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$ |
86,454 |
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24.8 |
% |
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$ |
82,717 |
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25.0 |
% |
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$ |
164,688 |
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23.9 |
% |
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$ |
134,689 |
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21.6 |
% |
U.S. Federal Services |
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36,571 |
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25.2 |
% |
|
33,421 |
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22.3 |
% |
|
74,147 |
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25.9 |
% |
|
61,659 |
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20.9 |
% |
Human Services |
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29,292 |
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22.9 |
% |
|
31,529 |
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25.1 |
% |
|
58,300 |
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23.0 |
% |
|
61,534 |
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25.1 |
% |
Total |
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$ |
152,317 |
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24.5 |
% |
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$ |
147,667 |
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24.3 |
% |
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$ |
297,135 |
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24.2 |
% |
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$ |
257,882 |
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22.2 |
% |
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Selling, general and administrative
expense:
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Health Services |
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$ |
29,914 |
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8.6 |
% |
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$ |
25,803 |
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7.8 |
% |
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$ |
58,021 |
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8.4 |
% |
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$ |
50,967 |
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8.2 |
% |
U.S. Federal Services |
|
18,927 |
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13.0 |
% |
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18,438 |
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12.3 |
% |
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38,622 |
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13.5 |
% |
|
35,960 |
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12.2 |
% |
Human Services |
|
19,663 |
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15.4 |
% |
|
21,735 |
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17.3 |
% |
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36,902 |
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14.6 |
% |
|
42,633 |
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17.4 |
% |
Other (4) |
|
92 |
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NM |
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— |
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NM |
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449 |
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NM |
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|
650 |
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NM |
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Total |
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$ |
68,596 |
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11.0 |
% |
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$ |
65,976 |
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10.9 |
% |
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$ |
133,994 |
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10.9 |
% |
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$ |
130,210 |
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11.2 |
% |
Operating income: |
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Health Services |
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$ |
56,540 |
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16.2 |
% |
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$ |
56,914 |
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17.2 |
% |
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$ |
106,667 |
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15.5 |
% |
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$ |
83,722 |
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13.4 |
% |
U.S. Federal Services |
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17,644 |
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12.1 |
% |
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14,983 |
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10.0 |
% |
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35,525 |
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12.4 |
% |
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25,699 |
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8.7 |
% |
Human Services |
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9,629 |
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7.5 |
% |
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9,794 |
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7.8 |
% |
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21,398 |
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8.5 |
% |
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18,901 |
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7.7 |
% |
Amortization of intangible assets |
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(3,386 |
) |
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NM |
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(3,262 |
) |
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NM |
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(6,788 |
) |
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NM |
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(6,411 |
) |
|
NM |
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Restructuring costs (2) |
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— |
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NM |
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— |
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NM |
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(2,242 |
) |
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NM |
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— |
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NM |
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Acquisition-related expenses (3) |
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— |
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NM |
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(529 |
) |
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NM |
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— |
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NM |
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(575 |
) |
|
NM |
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Other (4) |
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(92 |
) |
|
NM |
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— |
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NM |
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(449 |
) |
|
NM |
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(650 |
) |
|
NM |
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Total |
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$ |
80,335 |
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12.9 |
% |
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$ |
77,900 |
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12.8 |
% |
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$ |
154,111 |
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12.5 |
% |
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$ |
120,686 |
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10.4 |
% |
(1) Percentage of respective segment revenue. Percentages not considered meaningful are marked “NM.”
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(2) |
During the current fiscal year, we incurred costs in restructuring our United Kingdom Human Services business. See "Note 6. Supplemental disclosures" for more information. |
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(3) |
Acquisition-related expenses relate to the acquisitions of Assessments Australia and Ascend in December 2015 and February 2016, respectively. |
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(4)
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During the six months ended March 31, 2017, we incurred $0.4 million of legal-related costs pertaining to a legacy matter from a business line that the Company exited. During the six months ended March 31, 2016, we incurred $0.7 million of legal costs related to a matter that occurred in fiscal year 2014. Both items are classified within other selling general and administrative expense.
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