Results of Operations
The following discussion is intended to provide the reader with information that
will be helpful in understanding our financial statements, including the changes
in certain key items when comparing financial statements period to period. We
also intend to provide the primary factors that accounted for those changes, as
well as a summary of how certain accounting principles affect our financial
statements. In addition, we are providing information about the financial
results of our two operating segments to further assist in understanding how
these segments and their results affect our consolidated results of operations.
This discussion should be read in conjunction with our financial statements as
of
COVID-19 Considerations
The Company's priorities during the COVID-19 pandemic are protecting the health
and safety of our employees; maximizing the impact of our main services in
helping customers with the housekeeping and dietary services needs of their
facilities, and deploying the talents of our employees and our resources to help
the communities we serve meet and overcome the current challenges. In the
quarter ended
Our ability to operate without significant negative operational impact from the
COVID-19 pandemic will in part depend on our ability to protect our employees
and our supply chain. The Company has endeavored to follow the recommended
actions of government and health authorities to protect our employees, with
particular measures in place for those working in our customer facilities. For
the quarter ended
Through
For additional information on risk factors related to the pandemic or other
risks that could impact our results, please refer to "Risk Factors" in Part I,
Item 1A of the Company's Annual Report on Form 10-K for the year ended
Overview
We provide management, administrative and operating expertise and services to
the housekeeping, laundry, linen, facility maintenance and dietary service
departments of healthcare facilities, including nursing homes, retirement
complexes, rehabilitation centers and hospitals located throughout
We provide services primarily pursuant to full service agreements with our customers. Under such agreements, we are responsible for the day-to-day management of the employees located at our customers' facilities, as well as for the provision of certain supplies. We also provide services on the basis of management-only agreements for a limited number of customers. Under a management-only agreement, we provide management and supervisory services while the customer facility retains payroll responsibility for the non-supervisory staff. Our agreements with customers typically provide for a renewable one year service term, cancellable by either party upon 30 to 90 days' notice after an initial period of 60 to 120 days.
We are organized into two reportable segments: housekeeping, laundry, linen and other services ("Housekeeping"), and dietary department services ("Dietary").
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Housekeeping consists of managing our customers' housekeeping departments, which are principally responsible for the cleaning, disinfecting and sanitizing of resident rooms and common areas of the customers' facilities, as well as the laundering and processing of the bed linens, uniforms, resident personal clothing and other assorted linen items utilized at the customers' facilities. Upon beginning service with a customer facility, we typically hire and train the employees previously employed by such facility and assign an on-site manager to supervise and train the front-line personnel and coordinate housekeeping services with other facility support functions in accordance with customer requests. Such management personnel also oversee the execution of various cost and quality control procedures including continuous training and employee evaluation.
Dietary consists of managing our customers' dietary departments, which are principally responsible for food purchasing, meal preparation and professional dietitian services, which include the development of menus that meet the dietary needs of residents. On-site management is responsible for all daily dietary department activities, with regular support provided by a District Manager specializing in dietary services. We also offer clinical consulting services to our dietary customers, which may be provided as a stand-alone service, or bundled with other dietary department services. Upon beginning service with a customer facility, we typically hire and train the employees previously employed by such facility and assign an on-site manager to supervise and train the front-line personnel and coordinate dietitian services with other facility support functions in accordance with customer requests. Such management personnel also oversee the execution of various cost and quality control procedures including continuous training and employee evaluation.
At
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Three Months Ended
The following table summarizes the income statement key components that we use
to evaluate our financial performance on a consolidated and reportable segment
basis, for the three months ended
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