Quarterly report pursuant to Section 13 or 15(d)

Note 13 - Segment Reporting

v3.8.0.1
Note 13 - Segment Reporting
 3 Months Ended
Mar. 31, 2018
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
Note
13:
Segment Reporting
 
An operating segment is defined as a component of an enterprise for which discrete financial information is available and is reviewed regularly by the Chief Operating Decision Maker (“CODM”) to evaluate performance and make operating decisions. The Company has identified its CODM as the Chief Executive Officer.
  
The Company has
two
operating business segments. The Corporate Clinics segment is comprised of the operating activities of the company-owned or managed clinics. As of
March 31, 2018,
the Company operated or managed
47
clinics under this segment. The Franchise Operations segment is comprised of the operating activities of the franchise business unit. As of
March 31, 2018,
the franchise system consisted of
359
clinics in operation. Corporate is a non-operating segment that develops and implements strategic initiatives and supports the Company’s
two
operating business segments by centralizing key administrative functions such as finance and treasury, information technology, insurance and risk management, legal and human resources. Corporate also provides the necessary administrative functions to support the Company as a publicly-traded company. A portion of the expenses incurred by Corporate are allocated to the operating segments.  
 
The tables below present financial information for the Company’s
two
operating business segments (in thousands):
 
    Three Months Ended
March 31,
    2018   2017
Revenues:  
 
  
(as adjusted) 
Corporate clinics   $
3,257
     $
2,497
 
Franchise operations    
3,841
      
3,010
 
Total revenues   $
7,098
     $
5,507
 
                 
Segment operating (loss) income:                
Corporate clinics   $
111
     $
(1,017
)
Franchise operations    
1,815
      
1,233
 
Total segment operating (loss) income   $
1,926
     $
216
 
                 
Depreciation and amortization:                
Corporate clinics   $
303
     $
444
 
Franchise operations    
-
      
-
 
Corporate administration    
84
      
134
 
Total depreciation and amortization   $
387
     $
578
 
                 
Reconciliation of total segment operating income (loss) to consolidated earnings (loss) before income taxes (in thousands):                
Total segment operating (loss) income   $
1,926
     $
216
 
Unallocated corporate    
(2,365
 )    
(1,921
)
Consolidated loss from operations    
(439
 )    
(1,705
)
Other (expense) income, net    
(11
 )    
(19
)
Loss before income tax expense   $
(450
 )   $
(1,725
)
 
    March 31,
2018		   December 31,
2017
Segment assets:    
 
      
(
as adjusted)
 
  
Corporate clinics   $
8,695
     $
8,998
  
Franchise operations    
3,938
      
3,876
  
Total segment assets   $
12,633
     $
12,874
  
                 
Unallocated cash and cash equivalents and restricted cash   $
4,168
     $
4,320
  
Unallocated property and equipment    
777
      
765
  
Other unallocated assets    
665
      
466
  
Total assets   $
18,243
     $
18,425
  
 
“Unallocated cash and cash equivalents and restricted cash” relates primarily to corporate cash and cash equivalents and restricted cash (see Note
1
), “unallocated property and equipment” relates primarily to corporate fixed assets, and “other unallocated assets” relates primarily to deposits, prepaid and other assets.