Covenant Care November 2017 Consolidated Financial Statements HIGHLIGHTS

Transcription

1 Covenant Care November 2017 Consolidated Financial Statements HIGHLIGHTS SUMMARY OF NOVEMBER FINANCIAL ACTIVITY: Covenant Care, consolidated results: Nov: Operating Margin of ($76,201) Net Income of ($47,844) YTD: Operating Margin of $805,884; Net Income of $1,479,878 Covenant Hospice realized a November Operating Margin of ($128,621); net nonoperating revenue of $9,705: produced a Net Income ( Excess of Revenues over Expenses ) of ($118,916). YTD Operating Margin is $335,561 and YTD Net Income is $774,406. Total October admissions: 399 end of life admissions; 389 homebound admissions; 788 total admissions. (October total 773) Covenant Hospice key statistics: Average Daily Census: (Nov) vs (YTD) Average Length of Stay: 56.2 (Nov) vs (YTD) Admissions: 399 (Nov) vs 4,661 (YTD) (Average per month 424) Covenant Home Health (formerly known as Peoples), achieved a positive Operating Margin of $208,068. YTD Operating Margin is $2,058,655. (Home Health has few nonoperating revenues or expenses.) Covenant Home Health key statistics: Medicare & Medicare like episodes: 442 (Nov) vs. 4,723 (YTD) Home health visits: 7,277 (Nov) vs 78,669 (YTD) Average Medicare episode payment: $2,353 vs. $2,338 (2017 budget) YTD 30 day readmissions: 17% Covenant Health & Community Services had a November operating loss of ($77,076) and a YTD operating loss of ($750,312). CHCS YTD expenses include $231,100 in compensation costs, and $514,021 in legal and consulting expenses related to the growth and diversification activities being pursued by Covenant. Covenant Hospice Foundation achieved a Net Loss of ($21,301) in November. YTD Net Income is $189,562. The foundation did receive a restricted endowment not included in net income of $200,000 from Robert Bobby H. Kahn, Jr. for the Wish Fund.

2 COVENANT CARE PROJECTED AUG SEPT OCT NOV COMBINED STATEMENT OF OPERATIONS DEC 45,077 6,963 57,685 (76,201) Consolidated Operating Margin 57,485 Net Income 6,122 66,796 (71,315) (118,916) Hospice (65,786) 173, , , ,068 Peoples 206,068 (128,592) (85,727) 20,355 (134,996) Other Companies (85,727) 51, , ,626 (47,844) Total Net income 54,555

3 COVENANT CARE COMBINED STATEMENT OF OPERATIONS NOVEMBER 30, 2017 CH CF CAS CMC CHCS CHHH CPC CPD CHHC ELIMINATIONS COMBINED BUDGET VARIANCE % VARIANCE NET PATIENT/FAMILY CARE/PROGRAM REVENUE 4,393,207 52,183 50, ,785 18,115 1,131,917 5,648,034 6,682,096 (1,034,062) -15.5% TOTAL PATIENT/FAMILY CARE EXPENSES 3,087,005 67,554 9,955 5,420 8,389 13, ,925-3,716,166 4,507,162 (790,996) -17.5% CONTRIBUTIONS FROM OPERATIONS 1,306,202 (15,371) 40,873 (5,420) - - (6,604) 4, ,992-1,931,868 2,174,935 (243,067) -11.2% CONTRIBUTION % 29.7% 0.0% 53.7% 34.2% 32.5% 1.7% GENERAL & ADMINISTRATIVE EXPENSES Other Direct 819,727 2,203 1,624 9,321 65,339 16, , ,766 (1,479) 1,033, ,885 76, % Payroll 425,841-7, , , , , ,443 (52,981) -6.0% Benefits 91,795-1,543 14, ,233 41, , ,786 (11,708) -7.2% Allocation from CHCS 97,629 6,937 7,985 12,151 (158,540) 428 8,031 7,749 17,630 - (0) - (0) 0.0% TOTAL G&A EXPENSES 1,434,992 9,140 9,609 30,115 77,076 17,121 9,001 20, ,150 (1,479) 2,008,069 1,996,115 11, % OPERATING MARGIN (128,790) (24,511) 31,264 (35,535) (77,076) (17,121) (15,605) (16,148) 205,842 1,479 (76,201) 178,820 (255,020) % OPERATING MARGIN % -2.9% -47.0% 0.0% 0.0% 0.0% 0.0% 0.0% 18.2% -1.3% 2.7% -4.0% NON-OPERATING REVENUES Contributions and fundraising #DIV/0! Other Non-Operating Revenues 25,605 3, , (1,479) 61,824 27,341 34, % Development/Fundraising Expense - - #DIV/0! Other Non-Operating Expense (15,731) - (29) - (17,708) (33,468) (43,280) 9, % Contributions to Affiliates % NET NON-OPERATING REVENUE 9,874 3,211 (13) , (1,479) 28,356 (15,939) 44, % EXCESS OF REVENUE OVER EXPENSES (118,916) (21,301) 31,251 (35,535) (77,076) (582) (15,605) (16,148) 206,068 - (47,844) 162,880 (210,725) % Note: The above classifications may differ from those of the auditors who prepare statements in conformity with Generally Accepted Accounting Principles

4 COVENANT CARE COMBINED STATEMENT OF OPERATIONS NOVEMBER 30, 2017 CH CF CAS CMC CHCS CHHH CPC CPD CHHC ELIMINATIONS COMBINED BUDGET VARIANCE % VARIANCE NET PATIENT/FAMILY CARE/PROGRAM REVENUE 49,824, , ,233 7, , ,928 12,206,601 63,295,991 71,219,878 (7,923,888) -11.1% TOTAL PATIENT/FAMILY CARE EXPENSES 35,799, , ,071 20,150 97, ,371 5,867,321-42,797,408 49,487,725 (6,690,317) -13.5% CONTRIBUTIONS FROM OPERATIONS 14,024, ,829 (28,838) (13,051) (66,455) 23,558 6,339,280-20,498,582 21,732,153 (1,233,571) -5.7% CONTRIBUTION % 28.1% 0.0% 51.9% 32.4% 30.5% 1.9% GENERAL & ADMINISTRATIVE EXPENSES Other Direct 7,166,853 8,757 21,614 94, , ,984 6,597 25,149 1,310,672 (16,271) 9,329,406 10,041,701 (712,295) -7.1% Payroll 4,597,973-25,491 1,695,235 39,000 98,459 2,322,292-8,778,450 9,773,957 (995,507) -10.2% Benefits 919,063-3, ,611-13, ,970-1,584,844 1,800,068 (215,224) -12.0% Allocation from CHCS 1,006,750 79,779 81, ,843 (1,657,746) 4,906 82,452 78, ,309 - (0) - (0) 0.0% TOTAL G&A EXPENSES 13,690,639 88, , , , ,890 89, ,070 4,281,243 (16,271) 19,692,698 21,615,725 (1,923,027) -8.9% OPERATING MARGIN 334, ,292 (132,380) (266,339) (750,312) (235,890) (155,503) (192,513) 2,058,037 16, , , , % OPERATING MARGIN % 0.7% 0.0% 0.0% 0.0% 0.0% 0.0% % 16.9% 1.3% 0.2% 1.1% NON-OPERATING REVENUES Contributions and fundraising #DIV/0! Other Non-Operating Revenues 618,142 74, ,737 1,968 (16,271) 1,062, , , % Development/Fundraising Expense #DIV/0! Other Non-Operating Expense (177,957) (15,125) (166) - (193,545) - - (1,350) - (388,143) (354,538) (33,604) 9.5% Contributions to Affiliates % NET NON-OPERATING REVENUE 440,185 59,271 (2) , (16,271) 673, , , % EXCESS OF REVENUE OVER EXPENSES 774, ,562 (132,382) (266,339) (750,312) (45,698) (155,503) (192,513) 2,058,655-1,479, ,322 1,262, % Note: The above classifications may differ from those of the auditors who prepare statements in conformity with Generally Accepted Accounting Principles

5 COVENANT CARE CONSOLIDATED STATEMENT OF CONDITION NOVEMBER 30, 2017 CH CF CAS CMC CHCS CHHH CPC CPD CHHC ELIMINATIONS COMBINED ASSETS CASH & EQUIVALENTS 2,960, , ,449 8, , ,742 49,103 19,469 1,762,873 5,960,103 INVESTMENTS - FIXED 32,596 5,034,290 5,066,886 INVESTMENTS - BALANCED 16,810,411 19,904 16,830,315 TOTAL INVESTMENTS 16,843,006 5,054,195-21,897,201 TOTAL CASH & INVESTMENTS 19,803,584 5,584, ,449 8, , ,742 49,103 19,469 1,762,873-27,857,304 GROSS ACCOUNTS RECEIVABLES 10,474,814 4,664 28,349 21,460 1,696,739 12,226,026 RECEIVABLE ALLOWANCES (1,221,298) (27,099) (67,232) (1,315,629) NET ACCOUNTS RECEIVABLES 9,253,516-4, ,250 21,460 1,629,507-10,910,397 GRANTS / PLEDGES RECEIVABLE - (415) (415) CRUT RECEIVABLE 2,481,325 2,481,325 MISCELLANEOUS RECEIVABLE 183,254 75,000 8, , ,416 DUE TO/FROM CONSOLIDATED 4,352,921 (52,231) (647,732) (247,530) 5,992,017 (10,604,087) (264,993) (266,963) 1,738,598 0 PREPAID EXPENSE 754,662 1, (104) 4,097 - (744) 759,415 INVENTORY 135, ,971 CASH VALUE ON LIFE INSURANCE 1,096,070 1,096,070 TOTAL CURRENT ASSETS 38,061,303 5,607,696 (428,361) (239,268) 6,104,725 (10,288,345) (214,640) (226,777) 5,171,151-43,547,485 LAND 1,936,722 1,936,722 BUILDINGS & IMPROVENTS 12,627,696 12,627,696 LEASEHOLD IMPROVEMENTS 4,071,725 29,537 4,101,262 FURNITURE, FIXTURES & EQUIPMENT 9,302,521 2, ,067 9,604,588 CONSTRUCTION IN PROGRESS 2,007,172 2,007,172 29,945, , ,604-30,277,439 LESS ACCUMULATED DEPRECIATION (12,882,819) (299,467) (13,182,286) NET PROPERTY & EQUIPMENT 17,063, , ,137-17,095,153 INVESTMENT - PEOPLES 2,163,204 (2,163,204) - CON COSTS MOBILE 117, ,252 CON COSTS TALLAHASSEE 260, ,600 NO COMPETE - BREWTON 59,535 59,535 GOODWILL 1,481 1,481 GOODWILL - PEOPLES 9,073,350 9,073,350 LOAN ORIGINATION FEES 6,750 6,750 TOTAL INTANGIBLE ASSETS 438, ,750 11,236, (2,163,204) 9,518,968 TOTAL ASSETS 55,563,188 5,607,696 (428,361) (237,268) 6,111, ,209 (214,640) (226,777) 5,201,288 (2,163,204) 70,161,606 LIABILITIES & FUND BALANCE CURRENT LIABILITIES CURRENT PORTION L/T DEBT 448, ,784 ACCOUNTS PAYABLE 2,078,847 1,872 - (2,000) 17,708 - (28) 73,486 2,169,885 ADVANCES AGAINST ACCOUNTS RECEIVABLE 6,084,732 6,084,732 ACCRUED SALARY & WAGES 3,148,877 89,883 13, ,774 26, ,943 4,612,307 TOTAL CURRENT LIABILITIES 11,761,240 91,756-13, ,774 17,708-26, ,429-13,315,708 LONG-TERM LIABILITIES NOTES PAYABLE - - MORTGAGE PAYABLE 5,951,892 5,951,892 OTHER LONG TERM LOANS 407,688 8,500,000 8,907,688 LINE OF CREDIT LOANS 2,989,208 2,989,208 LESS CURRENT PORTION (448,784) (448,784) LONG-TERM CHARITABLE ANNUITIES - 13,062 13,062 TOTAL LONG-TERM LIABILITIES 8,900,004 13, ,500, ,413,066 TOTAL LIABILITIES 20,661, ,818-13,560 8,925,774 17,708-26, ,429-30,728,774 NET ASSETS: UNRESTRICTED 32,409,419 4,454,118 (499,455) (267,939) (2,814,300) 930,501 (214,640) (253,018) 4,221,859 (2,163,204) 35,803,342 BOARD DESIGNATED BECKER TRUST 71,094-71,094 BOARD DESIGNATED CHILDREN'S PROGRAM 444, ,999 BOARD DESIGNATED MARIANNA OFFICE 54,185-54,185 BOARD DESIGNATED PANAMA CITY OFFICE 250, ,000 BOARD DESIGNATED GOLDENBERG FUND 39,345-39,345 BOARD DESIGNATED HERO'S WISH 18,063-18,063 TEMPORARILY RESTRICTED - EVENTS 8,700 8,700 TEMPORARILY RESTRICTED - COVENANT SUPPORT FND 6,400-6,400 TEMPORARILY RESTRICTED - NATHANIEL'S LEMONADE 14,108-14,108 TEMPORARILY RESTRICTED - SNOOK FUND TEMPORARILY RESTRICTED - TOP OF GAS 11, ,325 TEMPORARILY RESTRICTED - MOBILE FUND 1,000 1,000 TEMPORARILY RESTRICTED - ONE LAST WISH 211, ,000 TEMPORARILY RESTRICTED - HIBBARD TRUST 2,481,325-2,481,325 TEMPORARILY RESTRICTED - MEMORY CARE 17,111 17,111 TOTAL NET ASSETS 34,901,944 5,502,878 (428,360) (250,827) (2,814,300) 930,501 (214,640) (253,018) 4,221,859 (2,163,204) 39,432,833 TOTAL LIABILITIES & NET ASSETS 55,563,188 5,607,696 (428,360) (237,268) 6,111, ,209 (214,640) (226,777) 5,201,288 (2,163,204) 70,161,607

6 Covenant Hospice Financial Report Month Ended 11/30/2017

7 Executive Summary Excess Revenue over Expenses was ($118,916) for the month versus a $142,829 budget. YTD Excess Revenues over Expenses was $774,406 versus a budget of $748,718 and compares to a prior YTD of ($526,026). Of the Excess Revenue over Expenses, ($128,621) was in Operating Margin and $9,705 was in Net Non-Operating Income. Net non-operating income was $9,705 for the month, favorable to a budget of $6,637. YTD net non-operating income was $438,846 favorable to a budget of $261,093. Reflected in the Statement of Changes in Net Assets is the change in unrealized gain from investments of $226,796 for the month and $1,510,953 YTD. With this, we had an increase in Net Assets YTD of $2,284,799. Census averaged for the month versus a budget of YTD census averaged versus a budget of and compares to a prior YTD census of Referrals for the month totaled 553 and admissions were 399 compared to a budget of 444, for a monthly conversion rate of 72.2%. YTD referrals and admissions were 6,551 and 4,661 respectively, a conversion rate of 71.1%. Operating Margin The operating margin of (2.9)% for the month was unfavorable to the budget of 2.5%. YTD operating margin was.7% versus a budget of.8%. Prior year was (1.5)%. Operating income for the month was ($128,621), unfavorable to the budget of $136,192. YTD operating income was $335,561, unfavorable to a budget of $487,628 and compares to a prior year of ($779,950). Net revenue for the month was $4,393,207, unfavorable to a budget of $5,418,669. YTD net revenue was $49,823,681, unfavorable to a budget of $58,397,961 and compares to a prior year of $52,878,801. Total patient care costs per day for the month, excluding inpatient costs and room & board expenses which are a function of patient mix, were $109.35, unfavorable to a budget of $ YTD patient care costs excluding inpatient costs and room and board expenses were $102.80, favorable to a budget of $ G&A expenses of 32.7% of revenue were unfavorable to the budget of 26.3%. YTD G&A expenses of 27.5% of revenue were unfavorable to the budget 26.7% and compares to prior year of 24.0%.

8 Non-Operating Margin Net non-operating income was $9,705 for the month, favorable to budget of $6,637. YTD net non-operating income was $438,846, favorable to a budget of $261,090. Reasons are described below. Other non-operating revenue, which includes investment income, was $25,605 for the month compared to a budget of $28,611, and YTD was $618,142 compared to a budget of $431,476. Other non-operating expense for the month was $15,731 compared to a budget of $21,807. This category includes interest expense and investment expenses. YTD was $177,957 compared to a budget of $168,529. For 2017, community support and fundraising revenue and expense are being recorded on the books of Covenant Hospice Foundation, Inc. In prior years, contributions and memorials, 90% or fundraising revenue and 100% of fundraising expenses were recorded on the financial statements of Covenant Hospice.

9 Other Changes in Net Assets Changes in unrealized gain for the month was $226,796 and YTD was $1,510,953. With the above, Net Assets for the month increased $107,880 compared to a budgeted increase of $142,829. YTD Net Assets increased $2,284,799 and compares to a budgeted increase of $748,718. Balance Sheet Cash and short-term investments was $19,803,584 at month end, a supply of 135 days of operating expenses compared to 107 days at this time last year. Days in Accounts Payable was at 36 days. Days in Accounts Receivable was 63 days. Financial Covenants for Bond Agreement (Covenant Hospice) are met: Ratio of Maximum Debt to Tangible Net Worth was.60:1 at November 30, 2017, favorable to Bond Covenant not to exceed 2.5:1. Tangible Net Worth was $34,463,077 at November 30, 2017, favorable to minimum per Bond Covenant of $6,500,000. Fixed Charge Coverage at November 30, 2017 was 1.8:1, favorable to Bond Covenant of 1.1:1. Liquidity at November 30, 2017 was $10,961,662, favorable to minimum per Bond Covenant of $5,000,000.

10 COVENANT HOSPICE, INC. CONSOLIDATED MONTH % INCOME STATEMENT YEAR TO YEAR TO % PRIOR YEAR OCT NOV BUDGET VARIANCE VARIANCE FY 2017 DATE DATE BUDGET VARIANCE VARIANCE TO DATE PATIENT/FAMILY CARE REVENUE 3,086,490 3,063,784 3,421,077 (357,293) % Routine Home Care 35,096,690 37,410,151 (2,313,461) -6.18% 37,445, , ,783 1,085,530 (335,747) % Inpatient Care 8,217,903 10,994,628 (2,776,725) % 7,720,546 9,012 6, ,111 (128,661) % Continuous Care 227,559 1,477,396 (1,249,837) % 1,234,114 14,991 18,067 18,761 (694) -3.70% Respite Care 163, ,452 (46,640) % 145, , , ,634 (242,307) % Room & Board 8,566,884 10,182,160 (1,615,276) % 8,885,337 3,172 3,131 9,021 (5,889) % Consulting Physician 88,714 98,215 (9,501) -9.67% 99,494 36,272 17, ,299 (90,682) % Primary Physician 350,397 1,116,201 (765,804) % 778,503 82,977 82,955 1,067 81, % Other Care 625,098 11, , % 9,322 4,798,369 4,630,115 5,709,500 (1,079,385) % TOTAL PATIENT/FAMILY CARE REVENUE 53,337,057 61,500,936 (8,163,879) % 56,317,961 84,340 70, ,921 (38,114) % Charity/Unfunded Care 1,373,614 1,156, , % 1,109,147 65, , ,909 (15,809) -8.69% Contractual Adjustments 2,139,762 1,946, , % 2,330, , , ,830 (53,923) % TOTAL DEDUCTIONS FROM REVENUE 3,513,375 3,102, , % 3,439,160 4,648,170 4,393,207 5,418,669 (1,025,463) % NET PATIENT/FAMILY CARE REVENUE 49,823,681 58,397,961 (8,574,279) % 52,878,801 OPERATING EXPENSES PATIENT/FAMILY CARE EXPENSES 2,966 2,446 1, % Other Direct 35,725 32,092 3, % 41,809 1,574,343 1,547,030 1,710,013 (162,983) -9.53% Payroll 16,232,252 18,900,385 (2,668,133) % 19,553, , , ,218 (18,240) -4.84% Benefits 3,622,833 4,076,001 (453,168) % 3,880, , , ,798 (103,125) % Patient Expenses 5,498,939 6,057,126 (558,187) -9.22% 5,827,164 93,925 93, ,328 (36,242) % Mileage/Fleet Car 1,019,750 1,424,208 (404,458) % 1,242,354 2,495,904 2,453,212 2,772,966 (319,753) % TOTAL CORE PATIENT/FAMILY CARE EXPENSES 26,409,498 30,489,812 (4,080,314) % 30,545,845 6,163 (69,012) 110,210 (179,222) % Inpatient Expenses 383,194 1,205,110 (821,916) % 1,014, , , ,705 (265,258) % Room & Board Expenses 8,899,081 10,549,523 (1,650,442) % 9,262,898 5,635 3,188 9,021 (5,833) % Consulting Physician Expenses 105,709 98,215 7, % 81, , ,623 1,083,936 (450,313) % TOTAL CONTRACTED PATIENT /FAMILY CARE EXPENSES 9,387,984 11,852,848 (2,464,864) % 10,358,876 3,361,255 3,086,836 3,856,902 (770,066) % TOTAL PATIENT/FAMILY CARE EXPENSES 35,797,482 42,342,660 (6,545,178) % 40,904,721 1,286,915 1,306,371 1,561,768 (255,396) % CONTRIBUTIONS FROM OPERATIONS 14,026,199 16,055,300 (2,029,101) % 11,974, % 29.74% 28.82% 0.91% CONTRIBUTION % 28.15% 27.49% 0.66% 22.64% GENERAL & ADMINISTRATIVE EXPENSES 746, , ,969 53, % Other Direct 7,166,853 8,182,093 (1,015,241) % 8,703, , , ,403 (33,562) -7.31% Payroll 4,597,973 5,251,404 (653,431) % 4,757,680 78,707 91, ,575 (10,780) % Benefits 919,063 1,127,425 (208,362) % 847, ,996 97,629 97, % Alloc to/from Other Subsidiaries 1,006,750 1,006, % (1,554,929) 1,351,643 1,434,992 1,425,576 9, % TOTAL G&A EXPENSES 13,690,639 15,567,672 (1,877,034) % 12,754, % 32.66% 26.31% 6.36% % OF NET PATIENT/FAMILY CARE REVENUE 27.48% 26.66% 0.82% 24.12% 4,712,898 4,521,828 5,282,478 (760,650) % TOTAL OPERATING EXPENSES 49,488,121 57,910,332 (8,422,212) % 53,658,751 (64,728) (128,621) 136,192 (264,813) % OPERATING MARGIN 335, ,628 (152,068) % (779,950) -1.39% -2.93% 2.51% -5.44% OPERATING MARGIN % 0.67% 0.84% -0.16% -1.47% NON-OPERATING REVENUES % Contributions/Unsolicited % 162, % Planned Giving/Solicited % 193, % Foundation Support-Fund Raising/Event Income % 238, % United Way/CFC % 77, % Grants % 52, % TOTAL NON-OPERATING REVENUES % 724,944 NON-OPERATING EXPENSES % Other Direct 1,899 1, % 138, % Fundraising/Event Expense % 62, % Payroll % 535, % Benefits % 113, % TOTAL NON-OPERATING EXPENSES 1,899 1, % 850,197 (169) (169) (167) (2) 1.40% NET NON-OPERATING REVENUE (LOSS) (1,339) (1,857) % (125,252) 10,159 25,605 28,611 (3,006) % OTHER NON-OPERATING REVENUES 618, , , % 788,583 16,577 15,731 21,807 (6,076) % OTHER NON-OPERATING EXPENSES 177, ,529 9, % 409,406 (6,587) 9,705 6,637 3, % NON OPERATING INCOME 438, , , % 253,924 4,658,329 4,418,812 5,447,281 (1,028,469) % TOTAL REVENUES 50,442,383 58,829,437 (8,387,053) % 54,392,328 4,729,644 4,537,728 5,304,452 (766,724) % TOTAL EXPENSES 49,667,977 58,080,718 (8,412,741) % 54,918,354 (71,315) (118,916) 142,829 (261,745) % EXCESS OF REVENUE OVER EXPENSES 774, ,718 25, % (526,026) -1.53% -2.69% 2.62% -5.31% MARGIN % 1.54% 1.27% 0.26% -0.97% 22,953 22,434 25,707 (3,273) % PATIENT DAYS 256, ,818 (22,906) -8.19% 282, (109) AVERAGE DAILY CENSUS (69) (2) AVERAGE LENGTH OF STAY (3.3) (45) ADMISSIONS 4,661 4,787 (126) 4, REFERRALS 6,551 6, % 72.2% CONVERSION RATIO 71.1% 72.1% (6) FTE's - CLINICAL FTE's - G&A (2) FTE's NON-OP (8) FTE's - TOTAL 476 -$ $ $ $ NET INCOME PER FTE -$1, ADC/FTE'S 1.77

11 COVENANT HOSPICE, INC. CONSOLIDATED MONTH % STATEMENT OF CHANGES IN NET ASSETS YEAR TO YEAR TO % PRIOR YEAR OCT NOV BUDGET VARIANCE VARIANCE FY 2017 DATE DATE BUDGET VARIANCE VARIANCE TO DATE (71,315) (118,916) 142,829 (261,745) % EXCESS OF REVENUE OVER EXPENSES 774, ,718 25, % (526,026) OTHER CHANGES IN UNRESTRICTED NET ASSETS 215, , , % Change in net unrealized gain on other than trading securities 1,510, ,510, % 561, , , ,829 (34,949) % INCREASE IN UNRESTRICTED NET ASSETS 2,285, ,718 1,536, % 35,017 CHANGES IN TEMPORARILY RESTRICTED NET ASSETS % Contributions % 4, % Net assets released from restrictions (560) 0 (560) % (690) % INCREASE/(DECREASE) IN TEMPORARILY RESTRICTED NET ASSETS (560) 0 (560) % 3, , , ,829 (34,949) % INCREASE (DECREASE) IN NET ASSETS 2,284, ,718 1,536, % 38,362

12 COVENANT HOSPICE, INC. PER PATIENT DAY MONTH INCOME STATEMENT YEAR TO YEAR TO PRIOR % OCT NOV BUDGET VARIANCE FY 2017 DATE DATE BUDGET VARIANCE YEAR CHANGE PATIENT/FAMILY CARE REVENUE Routine Home Care % (8.81) Inpatient Care (7.30) % (4.97) Continuous Care (4.39) % Respite Care (0.11) % (5.52) Room & Board (3.04) % (0.21) Consulting Physician (0.01) % (3.43) Primary Physician (2.63) % Other Care % (15.71) TOTAL PATIENT/FAMILY CARE REVENUE (12.18) % (1.08) Charity/Unfunded Care % Contractual Adjustments % (0.75) TOTAL DEDUCTIONS FROM REVENUE % (14.96) NET PATIENT/FAMILY CARE REVENUE (14.77) % OPERATING EXPENSES PATIENT/FAMILY CARE EXPENSES Other Direct % Payroll (4.36) % Benefits (0.47) % (1.45) Patient Expenses (0.24) % (0.88) Mileage (1.12) % TOTAL CORE PATIENT/FAMILY CARE EXPENSES (6.17) % 0.27 (3.08) 4.29 (7.36) Inpatient Expenses (2.82) % (6.35) Room & Board Expenses (3.06) % (0.21) Consulting Physician Expenses % (13.92) TOTAL PASS THROUGH PATIENT /FAMILY CARE EXPENSES (5.82) % (12.44) TOTAL PATIENT/FAMILY CARE EXPENSES (11.98) % (2.52) CONTRIBUTIONS FROM OPERATIONS (2.78) % GENERAL & ADMINISTRATIVE EXPENSES Other Direct (1.34) % Payroll (0.87) % Benefits (0.45) % Alloc to Other Subsidiaries (5.50) 0.0% TOTAL G&A EXPENSES (2.35) % 32.7% 26.3% 6.4% % OF NET PATIENT/FAMILY CARE REVENUE 27.5% 26.7% 0.8% 24.1% 13.9% (3.93) TOTAL OPERATING EXPENSES (14.33) % (2.82) (5.73) 5.30 (11.03) OPERATING MARGIN (0.44) (2.76) 147.4% NON-OPERATING REVENUES Contributions/Unsolicited % Planned Giving/Solicited % Foundation Support-Fund Raising/Event Income % United Way/CFC % Grants % TOTAL NON-OPERATING REVENUES % NON-OPERATING EXPENSES Other Direct % Fundraising/Event Expense % Payroll % Benefits % TOTAL NON-OPERATING EXPENSES % (0.01) (0.01) (0.01) (0.00) NET NON-OPERATING REVENUE (LOSS) (0.01) (0.01) 0.00 (0.44) 98.8% OTHER NON-OPERATING REVENUES % (0.15) OTHER NON-OPERATING EXPENSES % (0.29) NON OPERATING INCOME % (14.93) TOTAL REVENUES (13.90) % (4.07) TOTAL EXPENSES (14.24) % (3.11) (5.30) 5.56 (10.86) EXCESS OF REVENUE OVER EXPENSES (1.86) 262.0% -1.53% -2.69% 2.62% -5.31% MARGIN % 1.54% 1.27% 0.26% -0.97%

13 COVENANT HOSPICE, INC. BALANCE SHEET FOR NOVEMBER 30, 2017 BALANCE BALANCE BALANCE NET CHANGE NET CHANGE 11/30/ /31/ /31/2016 DURING MONTH DURING YEAR ASSETS CASH & EQUIVALENTS 2,960,578 4,502,924 1,346,241 (1,542,346) 1,614,337 INVESTMENTS - FIXED 32,596 32,465 2,843, (2,810,649) INVESTMENTS - BALANCED 16,810,411 16,582,134 12,872, ,277 3,938,297 TOTAL INVESTMENTS 16,843,006 16,614,599 15,715, ,407 1,127,648 TOTAL CASH & INVESTMENTS 19,803,584 21,117,524 17,061,599 (1,313,939) 2,741,985 GROSS INSURANCE RECEIVABLES 10,474,814 11,005,339 13,352,919 (530,525) (2,878,105) RECEIVABLE ALLOWANCES (1,221,298) (1,225,084) (1,133,589) 3,786 (87,709) NET INSURANCE RECEIVABLES 9,253,516 9,780,255 12,219,330 (526,739) (2,965,814) GRANTS / PLEDGES RECEIVABLE - - (0) - 0 CHARITABLE REMAINDER UNITRUST RECEIVABLE 2,481,325 2,481,325 2,481, MISCELLANEOUS RECEIVABLE (541,795) (547,262) (404,095) 5,467 (137,700) DUE FROM/TO FOUNDATION 27,296 21, ,255 5,393 (81,959) DUE FROM/TO ALZHEIMER'S 565, , ,074 16,499 81,729 DUE FROM/TO HOME 188, ,502 57,816 16, ,368 DUE FROM/TO COVENANT HEALTH SYSTEMS 3,095,068 2,982,795 2,083, ,273 1,011,711 DUE FROM/TO COVENANT PALLIATIVE CARE 182, ,226 78,785 9, ,755 DUE FROM/TO COVENANT UNIVERSITY - - (0) - 0 DUE FROM/TO COVENANT MEMORY CARE 117, ,355 1,100 9, ,588 DUE FROM/TO COVENANT HOME HEALTH HOLDING 901, , , PREPAID EXPENSE 754,662 1,145, ,714 (390,520) 203,949 INVENTORY 135, , ,232 (15,402) (14,261) CASH VALUE ON LIFE INSURANCE 1,096,070 1,084, ,666 11, ,405 TOTAL CURRENT ASSETS 38,061,303 40,121,087 36,740,408 (2,059,784) 1,320,895 LAND 1,936,722 1,936,722 1,936, BUILDINGS & IMPROVENTS 12,627,696 12,627,696 12,572,987-54,709 LEASEHOLD IMPROVEMENTS 4,071,725 3,907,439 2,238, ,286 1,833,154 FURNITURE, FIXTURES & EQUIPMENT 9,302,521 9,248,247 8,961,731 54, ,791 CONSTRUCTION IN PROGRESS 2,007,172 1,548,963 61, ,209 1,945,197 29,945,835 29,269,066 25,771, ,769 4,173,850 LESS ACCUMULATED DEPRECIATION (12,882,819) (12,745,141) (11,636,997) (137,678) (1,245,822) NET PROPERTY & EQUIPMENT 17,063,016 16,523,925 14,134, ,091 2,928,028 CON COSTS MOBILE 117, , ,122 (2,443) (26,870) CON COSTS TALLAHASSEE 260, , ,030 (857) (9,430) NO COMPETE - BREWTON 59,535 59,929 63,872 (394) (4,337) GOODWILL - BREWTON 1,481 1,486 1,535 (5) (54) TOTAL INTANGIBLE ASSETS 438, , ,558 (3,699) (40,691) INVESTMENT IN STUDER COVENANT ALLIANCE, LLC TOTAL ASSETS 55,563,188 57,087,579 51,354,954 (1,524,392) 4,208,233 LIABILITIES & FUND BALANCE CURRENT LIABILITIES CURRENT PORTION L/T DEBT 448, , , ACCOUNTS PAYABLE 2,078,847 2,610,882 2,456,216 (532,034) (377,369) ADVANCES AGAINST ACCOUNTS RECEIVABLE 6,084,732 7,151,743 6,419,509 (1,067,011) (334,777) ACCRUED SALARY & WAGES 3,148,877 3,144,154 3,114,490 4,723 34,387 TOTAL CURRENT LIABILITIES 11,761,240 13,355,562 12,438,999 (1,594,323) (677,759) LONG-TERM LIABILITIES NOTES PAYABLE MORTGAGE PAYABLE 5,951,892 5,983,451 6,324,816 (31,559) (372,924) OTHER LONG TERM LOANS 3,396,896 3,403, ,786 (6,390) 2,901,110 LESS CURRENT PORTION (448,784) (448,784) (448,784) - - INTEREST RATE SWAP PAYABLE TOTAL LONG-TERM LIABILITIES 8,900,004 8,937,952 6,371,818 (37,949) 2,528,186 TOTAL LIABILITIES 20,661,243 22,293,515 18,810,817 (1,632,272) 1,850,427 NET ASSETS: UNRESTRICTED 32,409,419 32,301,540 30,051, ,880 2,358,366 TEMPORARILY RESTRICTED 2,492,525 2,492,525 2,493,085 - (560) TOTAL NET ASSETS 34,901,944 34,794,065 32,544, ,880 2,357,806 TOTAL LIABILITIES & NET ASSETS 55,563,188 57,087,579 51,354,954 (1,524,392) 4,208,233 CASH ONHAND DAYS REVENUE OUTSTANDING DAYS PAYABLE OUTSTANDING DEBT TO FUND BALANCE CURRENT ASSETS TO CURRENT LIABILITIES

14 COVENANT HOSPICE, INC. STATEMENT OF CASH FLOWS November 30, 2017 MONTH YEAR TO DATE CASH FLOWS FROM OPERATING ACTIVITIES: Increase (decrease) in net assets 107,880 2,357,806 Adjustments to reconcile increase in net assets to net cash provided by operating activities: Depreciation expense 137,678 1,245,879 Amortization expense 3,699 40,691 Provision for bad debts - - Prior period adjustments Change in operating assets and liabilities - Accounts receivable 530,525 2,878,105 Pledges receivable - (0) Allowance for Doubtful Accounts - 98,869 Allowance for Doubtful Accounts Audit - 30,000 Allowance for Doubtful Accounts Sequestration (3,786) (41,160) Miscellaneous receivables (4,875) (159,042) Prepaid expenses 390,520 (203,949) SCA Investment - - Inventory 15,402 14,261 Line of Credit - 2,989,208 Accounts payable 321,553 (232,161) Accrued expenses (848,864) (459,272) Net cash provided (required) by operating activities 649,732 8,559,235 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property and equipment (676,769) (4,173,850) Retirement of Capital Assets (58) No Compete Agreement - Brewton - - Certificate of Need - Mobile - - Cash Value of Insurance Investment (11,855) (130,405) Net cash used in investing activities (688,624) (4,304,312) CASH FLOWS FROM FINANCING ACTIVITIES Accrued PIP liability (1,067,011) 13,674 Receivable from CHF (5,393) 81,959 Receivable from CHP (9,315) (103,755) Receivable from CHCS (112,273) (1,011,711) Receivable from CAS (16,499) (81,729) Receivable from C@Home (16,682) (130,368) Receivable from Hospice University - (0) Receivable from Peoples Home Health (592) 296,742 Receivable from Memory Care (9,333) (116,588) Receivable from CH3 - (139) Payments on obligations under capital leases (6,390) (88,098) Payments on obligations under debt (31,559) (372,924) Due to Alzheimer's - - Due to Foundation - - Net cash used by financing activities (1,275,047) (1,512,937) NET INCREASE (DECREASE) IN CASH (1,313,939) 2,741,985 CASH, BEGINNING OF PERIOD 21,117,524 17,061,599 CASH, END OF PERIOD 19,803,584 19,803,584

15 Peoples Home Health, LLC. Income Statement & Balance Sheet November 30, 2017

16

17 COVENANT HOME HEALTH CARE INCOME STATEMENT AS OF NOVEMBER 30, 2017 MTD YTD Ordinary Income/Expense Income 4000 Medicare Revenue 781,840 8,678, Non Medicare Revenue 118,915 1,355, Medicare Like 22, , Medicare Like Discounted 208,290 2,008,782 Total Income 1,131,917 12,206,601 Cost of Goods Sold 5000 Salaries & Wages Clinical Staff 5005 Skilled Nursing 163,654 1,857, Occup Therapy 40, , Physical Therapy 157,233 1,765, Speech Therapy 12, , Social Work 11, , Home Health Aide 1,948 28, Contract Labor Clinical 1,425 Total 5000 Salaries & Wages Clinical Staff 387,332 4,389, Bonuses 5051 Bonus Skilled Nursing 1,700 11, Bonus Occup Therapy Bonus Physical Therapy 500 1, Bonus Social Work 5063 Incentive Skilled Nursing Incentive Occup Therapy Incentive Physical Therapy 730 Total 5050 Bonuses 2,225 14, Benefits Payroll Taxes 5105 Skilled Nursing 12, , Occup Therapy 2,752 32, Physical Therapy 11, , Speech Therapy , Social Work 874 9, Home Health Aide 107 1,745 Total 5100 Benefits Payroll Taxes 28, , Benefits Group/Supplemental Ins 5205 Skilled Nursing 14, , Occup Therapy 3,360 33, Physical Therapy 17, , Speech Therapy 479 5, Social Work 750 9, Home Health Aide 1,035 10,570 Total 5200 Benefits Group/Supplemental Ins 37, , Benefits Workers' Comp/Malprac

18 COVENANT HOME HEALTH CARE INCOME STATEMENT AS OF NOVEMBER 30, 2017 MTD YTD 5305 Skilled Nursing 4,811 52, Occup Therapy 1,291 14, Physical Therapy 4,626 50, Speech Therapy 487 5, Social Work 290 3, Home Health Aide 128 1,383 Total 5300 Benefits Workers' Comp/Malprac 11, , Benefits 401(k) Match 5405 Skilled Nursing 293 3, Occup Therapy 417 4, Physical Therapy 1,378 17, Speech Therapy 174 2,012 Total 5400 Benefits 401(k) Match 2,262 27, Mileage 5505 Skilled Nursing 15, , Occup Therapy 2,639 27, Physical Therapy 7,840 86, Speech Therapy 782 9, Social Work 935 8, Home Health Aide 1,193 14,363 Total 5500 Mileage 28, , Medical Supplies 5604 Routine Medical Supplies 5,081 49, Billable Medical Supplies 14, , Medical Monitoring 215 2, TCP Monitoring 5,059 54, Medical Waste Removal 291 3,198 Total 5600 Medical Supplies 25, ,605 Total COGS 523,925 5,867,321 Gross Profit 607,992 6,339,280 Expense 8500 Answering Service 1,026 12, Bank Services Charges 413 4, Billing Service Fees 805 9, Computer Supplies & Repairs 282 9, Continuing Education Staff 9, Contract Labor Contracted Services 8530 Alarm & Security 296 1, Janitorial , Pest Control Shredding 168 2,104 Total 8525 Contracted Services 1,394 15,102

19 COVENANT HOME HEALTH CARE INCOME STATEMENT AS OF NOVEMBER 30, 2017 MTD YTD 8560 Depreciation Expense 1,531 13, Dues & Subscriptions 7, Equipment Leases 8575 Copiers , Postage Machine Total 8570 Equipment Leases 1,392 13, Insurance 8585 Business Liability 14, Workers' Comp 587 6,051 Total 8580 Insurance , Interest Expense Licenses and Permits 966 1, Marketing 5630 Printing Brochures 446 3, Sponsorships Mktg Promotionals (Non Allow) 1,388 8, General Marketing (Non Allow) 3,716 22, General Marketing (Allowable) 45 2, BD/Mktg Dues & Subscriptions 32 4, BD/Mktg Meals & Entertainment 2,230 17, Internet/Web Hosting 439 3, Social Media 1,422 6, Newspaper BD/Mktg Telephone 1,156 10, BD/Mktg Staff Training BD/Mktg Supplies 37 1, BD/Mktg Special Events 1, BD/Mktg Staff Meetings/Parties 813 Total 8610 Marketing 11,161 84, Meals & Entertainment 50% 8646 Meals & Ent Office Staff 257 3, Meals & Ent BD/Mktg Staff 336 Total 8645 Meals & Entertainment 50% 257 3, Office Expense 8655 Copier Supplies , Internet Service 579 6, Office Supplies 1,295 16, Break Room Supplies 152 2, Office Equipment (Non Capital) 6, Operation Supplies 2,439 21,483 Total 8650 Office Expense 5,406 70, Payroll Expense BusDev/Mktg 8666 BD/Mktg Staff Salaries 57, ,422

20 COVENANT HOME HEALTH CARE INCOME STATEMENT AS OF NOVEMBER 30, 2017 MTD YTD 8667 BD/Mktg Staff Bonuses 8668 BD/Mktg Staff Payroll Tax 4,751 51, BD/Mktg EE Benefits 5,781 60, BD/Mktg Mileage & Car Allowance 2,727 38, BD/Mktg Incentive Bonus 9,560 89, BD/Mktg 401(k) Match 389 5,152 Total 8665 Payroll Expense BusDev/Mktg 80, , Payroll Expenses Admin Staff 8501 Auto Exp/Car Allowance Admin 600 8, Staff Salaries 82, , Admin Staff Bonuses 2,247 25, Payroll Taxes 5,389 63, Employee Benefits 9,472 98, Mileage Admin 435 3, Admin 401(k) Match 509 7,421 Total 8675 Payroll Expenses Admin Staff 100,952 1,045, Payroll Expenses Clinical Staff 8682 Clinical Staff Gross 71, , Clinical Staff Bonuses 2,326 26, Clinical Staff Payroll Taxes 4,408 50, Clinical Staff EE Benefits 7,983 75, Clin Admin Auto Allowance 400 4, Clin Admin 401(k) Match 177 2, Clinical Staff Mileage 496 1,472 Total 8681 Payroll Expenses Clinical Staff 87, , Parent Salary Allocation 17, , Parent MSA 34, , Postage & Delivery 2, Professional Fees 8725 Accounting/Bookkeeping 135 8, Payroll Services 2,310 26, Consulting , HR Services 510 9, Legal ,918 Total 8720 Professional Fees 3,557 87, Rent 8755 Building 14, , Conference Room/Facility Storage Unit 292 1,809 Total 8750 Rent 15, , Repairs and Maintenance 8785 Equipment 1,241 Total 8775 Repairs and Maintenance 1,241

21 COVENANT HOME HEALTH CARE INCOME STATEMENT AS OF NOVEMBER 30, 2017 MTD YTD 8800 Software Support (EMR) 11, , Staff Recruitment 44 2, Staff Retention 3,208 6, Telephone 8815 Cellular/Pagers Office Staff 620 7, Cellular/Pagers Clinical Staff 3,504 42, Office/Cable/LD 1,143 11,870 Total 8810 Telephone 5,266 61, Travel 8832 Hotel Total 8830 Travel Uniforms 1, Utilities 2,475 22, Employee Gifts & Goodwill 187 1, Staff Meetings/ Parties 2,001 3, Bad Debt Expense 12, ,564 Total Expense 402,149 4,281,243 Net Ordinary Income 205,842 2,058,037 Other Income/Expense Other Income 4150 Miscellaneous Income Interest Income 201 1,326 Total Other Income 226 1,968 Other Expense 8807 Legal Settlements 1,350 Total Other Expense 1,350 Net Other Income Net Income 206,068 2,058,655

22 COVENANT HOME HEALTH CARE BALANCE SHEET AS OF NOVEMBER 30, 2017 NOV 2017 ASSETS Current Assets Checking/Savings 1125 BB&T Ops Acct # , BB&T Payroll Acct # , BB&T Reserve Acct #9832 1,000,941 Total Checking/Savings 1,762,473 Other Current Assets 1199 Petty Cash Employee Advances 1, Accounts Receivable PMS 1301 Allowance for Bad Debt (27,232) 1302 Allowance for Pre Claim Review (40,000) 1300 Accounts Receivable PMS Other 1,696,739 Total 1300 Accounts Receivable PMS 1,629, Security Deposit 3,050 Total Other Current Assets 1,634,680 Total Current Assets 3,397,153 Fixed Assets 1500 Furniture & Equipment 300, Leasehold Improvements 29, Accumulated Depreciation (299,467) Total Fixed Assets 30,137 Other Assets 1925 Intercompany Loan to CH3 1,239, Intercompany Cov Hospice 534,998 Total Other Assets 1,773,998 TOTAL ASSETS 5,201,288 LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable 2000 Accounts Payable 65,555 Total Accounts Payable 65,555 Credit Cards 2016 Servis1st Credit Card 7,931 Total Credit Cards 7,931 Other Current Liabilities (k) Match Liability 6, EE 125 MFS (13,027) 2210 Wages Payable 547, Bonus Payable 51, PTO Accrual 252,829

23 COVENANT HOME HEALTH CARE BALANCE SHEET AS OF NOVEMBER 30, 2017 NOV Workers Comp Payable 60,689 Total Other Current Liabilities 905,943 Total Current Liabilities 979,429 Total Liabilities 979,429 Equity 3200 Partners' Equity 2,163, Partner Draws (Four Stones) (341,388) 3203 Partner Draws (CStone) 341,388 Net Income 2,058,655 Total Equity 4,221,859 TOTAL LIABILITIES & EQUITY 5,201,288

24 Covenant Health & Community Services, Inc. Income Statement & Balance Sheet November 30, 2017

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26 Covenant Health & Community Services, Inc. Income Statement Fiscal Year JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV NOV BUD VARIANCE YTD NOV YTD NOV BUD VARIANCE Revenues Other Revenues Total Revenues Expenses: Salaries 157, , , , , , , , , , , ,119 (3,763) 1,695,235 1,638,524 56,711 Benefits 22,206 18,915 21,822 29,049 15,490 16,427 14,123 12,790 14,110 13,759 14,920 19,899 (4,978) 193, ,001 (31,390) Other Expenses (19) - (121) (107) (219) - (219) Bank Service Fees Office Supplies Marketing Printing Exp Amortization Loan Orig Fees ,125-4,125 Legal 32,946 30,055 32,827 (19,581) 13,790 25,443 32,647 25,325 25,056 25,000 25,863 21,478 4, , ,254 13,117 Consulting 34,815 10,204 12,812 85,614 (2,213) 14,459 35, ,697 39,096 28,903 10, , ,929 (53,279) Start Up Costs Operating License & Fees Promotional Itmes Subscriptions , ,500-1,500 Allocation from Parent (145,387) (139,218) (153,490) (146,242) (150,498) (143,459) (144,362) (149,838) (156,406) (170,306) (158,540) (158,540) (0) (1,657,746) (1,657,746) (0) Total Expenses 101,936 66,151 83, ,338 35,233 64,447 72,197 45,955 26,118 56,710 77,076 70,858 6, , ,961 (9,249) Operating Margin (101,936) (66,101) (83,551) (121,338) (35,233) (64,097) (72,197) (45,955) (26,118) (56,710) (77,076) (70,858) (6,217) (750,312) (759,961) 9,649 Other Non-Operating Revenues Other Non-Operating Expenses (97) Total Non-Operating Income/(Expense) (5) (5) (77) (5) (5) Total Revenues Total Expenses 101,941 66,156 83, ,343 35,238 64,350 72,197 45,955 26,118 56,710 77,076 70,858 6, , ,961 (9,249) Excess of Revenue over Expenses (101,941) (66,106) (83,628) (121,343) (35,238) (64,000) (72,197) (45,955) (26,118) (56,710) (77,076) (70,858) (6,217) (750,312) (759,961) 9,649 Turnkey Visits

27 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Assets Current Assets Operating Cash 9,966 9,966 23,025 3, ,533 51,134 73,249 98,700 BB&T Analyzed Checking 9,960 9,955 9,950 9,945 9,940 9,935 9,930 9,915 9,920 9,915 9,910 Operating PayPal Total Cash & Equivalents 19,926 19,921 32,975 13,845 9,940 9,935 9,930 35,448 61,054 83, ,610 Misc Receivable Prepaid Other 7,249 6,934 6,619 6,304 5,988 5,673 5,358 5,043 4,728 4,412 4,097 Prepaid Supplies Total Current Assets 27,175 26,854 39,594 20,148 15,928 15,608 15,288 40,491 65,782 87, ,707 Fixed Assets: Furniture, Fixtures & Equipment (Less accumulated depreciation) Total Fixed Assets Other Assets Loan Origination Fees 10,500 10,125 9,750 9,375 9,000 8,625 8,250 7,875 7,500 7,125 6,750 Total Assets 37,675 36,979 49,344 29,523 24,928 24,233 23,538 48,366 73,282 94, ,457 Liabilities & Net Assets Covenant Health & Community Services, Inc. Balance Sheet Fiscal Year 2017 Current Liabilities Current portion of LT debt Accounts Payable Accrued Expenses 25,000 25,000 (34,500) 13,175 (34,219) (47,219) (10,000) (8,000) (6,000) (4,000) (2,000) Accrued Payroll 110, , , , , , , , , , ,774 Total Current Liabilities 135, , , , , , , , , , ,774 Long-Term Liabilities Loan payable - BB&T 9,550,000 9,550,000 9,300,000 9,200,000 9,100,000 9,000,000 8,900,000 8,800,000 8,700,000 8,600,000 8,500,000 Due to/from: Covenant Hospice 2,102,814 2,191,505 2,312,636 2,382,744 2,493,028 2,673,360 2,729,445 2,808,792 2,884,455 2,982,795 3,095,068 Loan payable to Covenant Hospice Due to/from: Covenant Home Health Holding (9,526,938) (9,527,359) (9,277,827) (9,178,276) (9,078,742) (8,979,185) (8,879,631) (8,780,097) (8,680,514) (8,580,978) (8,481,406) Due to/from: Foundation (7,338) (14,376) (30,100) (22,532) (23,941) (40,436) (25,523) (25,471) (22,114) (25,451) (24,935) Due to/from: Home (6,817) (13,337) (20,532) (27,372) (34,452) (41,219) (48,032) (55,096) (62,711) (71,029) (78,779) Due to/from: CAS (7,202) (14,120) (21,691) (28,912) (36,270) (43,262) (50,289) (57,574) (65,405) (73,944) (81,929) Due to/from: Palliative (7,204) (14,102) (21,689) (28,916) (36,339) (43,414) (50,535) (57,914) (65,827) (74,421) (82,452) Due to/from: Memory Care (11,544) (22,600) (34,733) (46,262) (58,130) (69,463) (80,869) (92,699) (104,663) (117,692) (129,843) Due to/from: Peoples (17,372) (34,028) (52,337) (84,248) (102,112) (119,101) (136,189) (153,912) (171,199) (190,112) (207,743) Less Short-term portion Total Long-Term Liabilities 2,068,399 2,101,584 2,153,726 2,166,225 2,223,043 2,337,279 2,358,376 2,386,029 2,412,022 2,449,168 2,507,983 Total Liabilities 2,203,604 2,269,015 2,365,007 2,466,529 2,497,173 2,560,478 2,631,980 2,702,762 2,753,796 2,831,925 2,933,757 Net Assets: Unrestricted Net Assets: (2,063,988) (2,063,988) (2,063,988) (2,063,988) (2,063,988) (2,063,988) (2,063,988) (2,063,988) (2,063,988) (2,063,988) (2,063,988) Current Year Net Income/(Loss) (101,941) (168,047) (251,675) (373,018) (408,256) (472,257) (544,454) (590,408) (616,526) (673,236) (750,312) Total Unrestricted Net Assets (2,165,929) (2,232,036) (2,315,663) (2,437,006) (2,472,244) (2,536,245) (2,608,442) (2,654,396) (2,680,514) (2,737,224) (2,814,300) Total Liabilities & Net Assets 37,675 36,979 49,344 29,523 24,928 24,233 23,538 48,366 73,282 94, ,457

28 Covenant Hospice Foundation, Inc. Income Statement & Balance Sheet November 30, 2017

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30 Covenant Hospice Foundation, Inc. Financial Analysis November 30, 2017 For the month, the foundation had an increase in total net assets of $271,056 bringing total net assets of the foundation to $5,502,878 and total assets to $5,659,927 at 11/30/17. The Foundation received a $200,000 Endowment for My Wish from the Robert H. Kahn, Jr. Family Foundation. For the year, the foundation has a increase in total net assets of $981,726. Operating Activities: For the month, operating expenses totaled $7,197 and consisted of: $ 261 Bank and Credit Card Service fees $ 6,937 Salary alloc of from CHCS The Foundation recognized total revenues of $54,844 which consisted of the following: $ 22,696 Memorials & Contributions/Unsolicited $ 5,000 Major Gifts $ 14 Fund Raising/Event Income $ 3,234 Direct Mail $ 3,024 United Way/CFC $ 17,500 Grants $ 716 Released from Restriction $ 2,661 Investment Earnings Childrens, Panama City, General, Marianna For the year, the Foundation has recognized total revenues of $1,072,237. Non-Operating Expenses totaled $68,947 and consisted of the following $ 12,751 Other Direct Costs $ 38,653 Payroll $ 7,739 Benefits $ 1,708 Goldenberg fund usage $ 666 Nathaniel's Lemonade Stand usage $ 50 Snook fund usage 7,931 Other Program Costs - SHH ( Aqua In Kind furniture donations) $ -550 Realized gains/losses For the year, Foundation Non-Operating expenses are $796,081. Composition of investment portfolio: Foundation portfolio, per balance sheet 5,034,290 Charity Annuity Reserve required in FL, per balance sheet 19,904 Total 5,054,194 Note: Unrealized Gain/(Losses) are the fluctuations in market values of securities from month to month. Realized (Gain)/Losses are the true recorded gains or losses due to the sale of a security.

31 COVENANT HOSPICE FOUNDATION, INC. INCOME STATEMENT FOR NOVEMBER 30, % YTD NOV JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV NOV BUDGET VARIANCE VARIANCE YTD NOV BUDGET VARIANCE VARIANCE OPERATING REVENUES % % GENERAL & ADMINISTRATIVE EXPENSES Salary Alloc From CHCS 7,338 7,038 7,665 7,232 7,472 7,157 7,199 7,482 6,808 7,453 6,937 6, % 79,779 79, % Bank/Credit Card Service Fees 2,084 1,592 1, % 6,815-6, % TOTAL GENERAL & ADMINISTRATIVE EXPENSES 7,338 7,038 7,665 9,316 9,064 8,863 7,708 7,737 7,012 7,655 7,197 6, % 86,594 79,779 6, % OPERATING MARGIN (7,338) (7,038) (7,665) (9,316) (9,064) (8,863) (7,708) (7,737) (7,012) (7,655) (7,197) (6,937) (261) 3.76% (86,594) (79,779) (6,815) 8.5% NON-OPERATING REVENUES Memorials/Contributions/Unsolicited 11,287 18,656 13,080 15,590 13,130 16,016 14,991 13,424 10,428 7,456 22,696 14,850 7, % 156, ,600 (11,845) -7.0% Major Gifts 1, (2,245) 5, ,163 25,000 14,837 5,000 5, ,922 (95,922) 95.0% 100, ,343 (288,343) -74.2% Planned Giving - 45,784 50, , , % 259, , % Fund Raising/Event Income 5,344 1,100 13, ,154 15,824 83,292 8, (1,270) % 349, , , % United Way/CFC 5,167 5,167 6,474 3,024 3,024 10,024 3,024 3,024 11,224 3,024 3,024 5,167 (2,143) -41.5% 56,197 75,584 (19,386) -25.6% Grants (95) ,500 20,000 (2,500) -12.5% 17,500 20,000 (2,500) -12.5% Direct Mail , ,848 4,574 2,076 1,386 2,573 17,047 3,234-3, % 36,582-36, % Other Income 1, % 1,685-1, % Released from Restriction 1,506 1,297-12, , ,203 2, % 23,591-23, % Investment Earnings 3,215 2,370 15,378 2,532 2,425-20,235 2,398 17,756 2,504 2,661 2, % 71,475 66,052 5, % TOTAL NON-OPERATING REVENUES 28,127 29,822 94, ,010 37, ,406 94,842 46,159 79, ,598 54, ,494 (88,650) % 1,072, , , % NON-OPERATING EXPENSES Other Direct 2,456 4,143 3,757 4,860 18,186 7,195 5,625 7,672 1,968 (1,195) 12,751 11,159 1, % 67, ,399 (59,982) -47.1% Program Expenses 1,300 6, ,890 5,549 1,557 2,737 5,458 5,822 10,354-10, % 46,380-46, % Realized Gains/(Losses) 14,017-12,200 - (6,006) - (11,336) - (9,560) - (550) - (550) 100.0% (1,236) - (1,236) 0.0% Investment & Advisory Services 3, , , , % 15,125 13,836 1, % Fundraising Expense/Cost of Direct Benefit ,254 12,200 62,796 3,091 (13) % 155, ,750 50, % Payroll 41,687 33,958 51,568 51,414 48,454 27,091 35,241 35,457 29,896 40,866 38,653 51,234 (12,581) -24.6% 434, ,157 (154,872) -26.3% Benefits 7,157 6,540 8,341 8,859 9,649 4,345 6,623 6,583 6,283 6,663 7,739 8,505 (766) -9.0% 78, ,290 (27,509) -25.9% TOTAL EXPENSES: 70,225 51,156 76, ,736 88, ,976 44,635 52,435 34,044 56,095 68,947 70,898 (1,951) -2.8% 796, ,433 (145,352) -15.4% NET NON-OPERATING REVENUE (LOSS) (42,098) (21,335) 18, ,274 (51,372) 8,430 50,208 (6,276) 45, ,503 (14,103) 72,596 (86,700) % 276,156 25, , % EXCESS OF REVENUE OVER EXPENSES (49,436) (28,372) 10, ,959 (60,437) (433) 42,499 (14,013) 38, ,848 (21,301) 65,660 (86,960) % 189,562 (54,383) 243, % MARGIN % % -95.1% 11.3% 50.0% % -0.4% 44.8% -30.4% 48.4% 64.5% -38.8% 45.8% -84.6% 17.7% -5.6% 23.3% OTHER CHANGES IN UNRESTRICTED NET ASSETS Unrealized gain (loss) on investments 83, ,056 18,930 49,591 50,901-73,866 14,803 36,214 70,368 77,962-77, % 580, , % INCREASE IN UNRESTRICTED NET ASSETS 34,209 75,684 29, ,549 (9,536) (433) 116, , ,216 56,661 65,660 (8,999) -13.7% 769,898 (54,383) 824, % Changes in Temporarily Restricted Net Assets Contributions 343 8,014 1, , ,522 2, , , % 235, , % Net assets released from restrictions (1,506) (1,297) - (12,950) (750) (1,500) - (60) (2,203) (2,609) (716) - (716) 100.0% (23,591) - (23,591) 100.0% INCREASE/(DECREASE) IN TEMPORARILY RESTRICTED NET (1,164) 6,717 1,505 (12,505) (320) 1, (341) 214, , % 211, , % INCREASE/(DECREASE) IN NET ASSETS 33,045 82,401 31, ,044 (9,856) 1, ,011 1,707 75, , ,056 65, , % 981,726 (54,383) 1,036, %