| 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.
As noted in "Note 1. Organization and Basis of Presentation," we have made changes to our business segments in fiscal year 2019. Accordingly, the comparative results shown for the three months ended December 31, 2017, are presented differently from those shown in previous filings.
From October 1, 2018, we operated our business through three segments.
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Our U.S. Health and Human Services Segment provides a variety of business process services such as program administration, appeals and assessments work and related consulting work for U.S. state and local government programs. These services support a variety of programs including Medicaid, the Children’s Health Insurance Program, the Affordable Care Act and Temporary Assistance for Needy Families. |
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Our U.S. Federal Services Segment provides business process solutions, including program administration, as well as system and software development and maintenance services for various U.S. federal civilian programs. This segment also contains certain state-based assessments and appeals work that is part of the segment's heritage within the Medicare Appeals portfolio and continues to be managed within this segment. |
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Our Outside the U.S. Segment provides business process solutions for governments and commercial clients outside the United States, including health assessments, program administration for welfare-to-work services and other related services. We support programs and deliver services in the United Kingdom, including the Health Assessment Advisory Service, the Work & Health Programme and Fair Start; Australia, including jobactive and the Disability Employment Service; Canada, including Health Insurance British Columbia and the Employment Program of British Columbia; Saudi Arabia and Singapore. |
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Three Months Ended December 31, |
(dollars in thousands) |
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2018 |
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% (1) |
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2017 |
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% (1) |
Revenue: |
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U.S. Health & Human Services |
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$ |
294,213 |
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$ |
304,241 |
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U.S. Federal Services |
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216,987 |
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132,983 |
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Outside the U.S. |
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153,419 |
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185,924 |
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Total |
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$ |
664,619 |
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$ |
623,148 |
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Gross profit: |
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U.S. Health & Human Services |
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$ |
88,031 |
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29.9 |
% |
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$ |
84,231 |
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27.7 |
% |
U.S. Federal Services |
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47,985 |
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22.1 |
% |
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33,358 |
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25.1 |
% |
Outside the U.S. |
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23,249 |
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15.2 |
% |
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34,371 |
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18.5 |
% |
Total |
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$ |
159,265 |
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24.0 |
% |
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$ |
151,960 |
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24.4 |
% |
Selling, general and administrative expense: |
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U.S. Health & Human Services |
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$ |
32,139 |
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10.9 |
% |
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$ |
34,805 |
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11.4 |
% |
U.S. Federal Services |
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26,632 |
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12.3 |
% |
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16,648 |
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12.5 |
% |
Outside the U.S. |
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18,808 |
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12.3 |
% |
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18,106 |
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9.7 |
% |
Other |
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2,092 |
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NM |
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— |
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NM |
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Total |
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$ |
79,671 |
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12.0 |
% |
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$ |
69,559 |
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11.2 |
% |
Operating income: |
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U.S. Health & Human Services |
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$ |
55,892 |
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19.0 |
% |
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$ |
49,426 |
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16.2 |
% |
U.S. Federal Services |
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21,353 |
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9.8 |
% |
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16,710 |
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12.6 |
% |
Outside the U.S. |
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4,441 |
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2.9 |
% |
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16,265 |
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8.7 |
% |
Amortization of intangible assets |
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(5,458 |
) |
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NM |
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(2,718 |
) |
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NM |
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Other (2) |
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(2,092 |
) |
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NM |
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— |
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NM |
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Total |
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$ |
74,136 |
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11.2 |
% |
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$ |
79,683 |
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12.8 |
% |
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(1) |
Percentage of respective segment revenue. Percentages not considered meaningful are marked “NM.” |
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(2) |
Other selling, general & administrative expenses includes credits and costs not directly allocated to a particular segment. In the three month period ended December 31, 2018, these include $2.7 million of costs directly related to the acquisition of the citizen engagement centers business.
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