Annual report pursuant to Section 13 and 15(d)

Business segments

v3.3.0.814
Business segments
12 Months Ended
Sep. 30, 2015
Business segments  
Business segments

2. Business segments

        The Company is organized and managed based upon the services it provides.

        As our business changes, we revise our internal reporting and the manner in which our Chief Executive Officer operates and reviews the results of our business. This reporting forms the basis for our external reporting of our business segments. During the fourth quarter of fiscal year 2015, we revised our reporting structure to accommodate three business segments, adding a U.S. Federal Services Segment that comprises the work we perform for the U.S. Federal Government, as well as some U.S.-based appeals work. The businesses within this new segment were previously included within our Health Services Segment and include the results of the businesses acquired with Acentia, LLC (Acentia) in April 2015. We made these changes to our operations and internal reporting due to our acknowledgement that the U.S. Federal Government is a distinct customer with different procurement methods and regulations, the scale of our business with the U.S. Federal Government and the growth of our federal business from a primarily health-focused business to a broader business covering several federal agencies.

        Expenses which are not specifically included in the segments are included in the corporate category, which primarily consist of amortization of intangible assets and the direct costs of acquisitions. These corporate costs are excluded from measuring each segment's operating performance. We also transferred a small division from our Health Services Segment to our Human Services Segment.

        The results of these segments for the three years ended September 30, 2015 are shown below (in thousands). These results are presented for all years on a basis consistent with our existing business segments.

                                                                                                                                                                                    

 

 

Year ended September 30,

 

 

 

2015

 

2014

 

2013

 

Revenue:

 

 

 

 

 

 

 

 

 

 

Health Services

 

$

1,109,238

 

$

906,650

 

$

691,565

 

U.S. Federal Services

 

 

502,484

 

 

341,840

 

 

167,258

 

Human Services

 

 

488,099

 

 

452,422

 

 

472,456

 

​  

​  

​  

​  

​  

​  

Total

 

$

2,099,821

 

$

1,700,912

 

$

1,331,279

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Gross Profit:

 

 

 

 

 

 

 

 

 

 

Health Services

 

$

254,108

 

$

213,728

 

$

172,336

 

U.S. Federal Services

 

 

118,646

 

 

110,793

 

 

73,694

 

Human Services

 

 

139,963

 

 

127,602

 

 

140,003

 

​  

​  

​  

​  

​  

​  

Total

 

$

512,717

 

$

452,123

 

$

386,033

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Selling, general and administrative expense:

 

 

 

 

 

 

 

 

 

 

Health Services

 

$

99,815

 

$

98,172

 

$

83,131

 

U.S. Federal Services

 

 

59,252

 

 

47,695

 

 

31,128

 

Human Services

 

 

79,719

 

 

74,444

 

 

78,970

 

Other

 

 

6

 

 

614

 

 

598

 

​  

​  

​  

​  

​  

​  

Total

 

$

238,792

 

$

220,925

 

$

193,827

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Operating income

 

 

 

 

 

 

 

 

 

 

Health Services

 

$

154,293

 

$

115,556

 

$

89,205

 

U.S. Federal Services

 

 

59,394

 

 

63,098

 

 

42,566

 

Human Services

 

 

60,244

 

 

53,158

 

 

61,033

 

Amortization of intangible assets

 

 

(9,348

)

 

(5,890

)

 

(4,883

)

Acquisition-related expenses

 

 

(4,745

)

 

 

 

(2,168

)

Other

 

 

(6

)

 

(614

)

 

(598

)

​  

​  

​  

​  

​  

​  

Total

 

$

259,832

 

$

225,308

 

$

185,155

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Depreciation and amortization:

 

 

 

 

 

 

 

 

 

 

Health Services

 

$

27,694

 

$

23,994

 

$

14,768

 

U.S. Federal Services

 

 

10,363

 

 

9,557

 

 

3,355

 

Human Services

 

 

8,792

 

 

9,227

 

 

12,810

 

​  

​  

​  

​  

​  

​  

Total

 

$

46,849

 

$

42,778

 

$

30,933

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

        Acquisition-related expenses are costs directly incurred from the purchases of Acentia and Remploy in 2015 and HML in 2013, as well as any unsuccessful transactions.

        We principally operate in the United States, the United Kingdom, Australia, Canada, Saudi Arabia and New Zealand.

        Our revenue was distributed as follows (in thousands):

                                                                                                                                                                                    

 

 

Year ended September 30,

 

 

 

2015

 

2014

 

2013

 

United States

 

$

1,559,769 

 

$

1,306,026 

 

$

999,419 

 

United Kingdom

 

 

267,702 

 

 

128,363 

 

 

65,718 

 

Australia

 

 

178,167 

 

 

170,727 

 

 

157,383 

 

Rest of World

 

 

94,183 

 

 

95,796 

 

 

108,759 

 

​  

​  

​  

​  

​  

​  

Total

 

$

2,099,821 

 

$

1,700,912 

 

$

1,331,279 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

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

                                                                                                                                                                                    

 

 

Year Ended
September 30,

 

 

 

2015

 

2014

 

Health Services

 

$

483,215 

 

$

415,821 

 

U.S. Federal Services

 

 

441,521 

 

 

95,367 

 

Human Services

 

 

189,855 

 

 

152,243 

 

Corporate/Other

 

 

165,580 

 

 

237,565 

 

​  

​  

​  

​  

Total

 

$

1,280,171 

 

$

900,996 

 

​  

​  

​  

​  

​  

​  

​  

​  

        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,

 

 

 

2015

 

2014

 

United States

 

$

120,130 

 

$

93,500 

 

Australia

 

 

33,591 

 

 

8,769 

 

Canada

 

 

19,720 

 

 

27,043 

 

United Kingdom

 

 

16,141 

 

 

7,731 

 

Rest of World

 

 

41 

 

 

63 

 

​  

​  

​  

​  

Total

 

$

189,623 

 

$

137,106 

 

​  

​  

​  

​  

​  

​  

​  

​