Covenant Care August 2017 Consolidated Financial Statements HIGHLIGHTS

Covenant Care August 2017 Consolidated Financial Statements HIGHLIGHTS SUMMARY OF AUGUST FINANCIAL ACTIVITY: Covenant Care, consolidated results: August: Operating Margin of $45,077; Net Income of $51,294 YTD: Operating Margin of $696,633; Net Income of $1,348,282 Covenant Hospice realized an August Operating Margin of $11,340; net nonoperating revenue of ($5,218) produced a Net Income ( Excess of Revenues over Expenses ) of $6,122. YTD Operating Margin is $582,378 and YTD Net Income is $957,841. Total August admissions: 399 end of life admissions; 389 homebound admissions; 788 total admissions. (July total 865) Covenant Hospice key statistics: Average Daily Census: 769.5 (Aug) vs. 777.5 (YTD) Average Length of Stay: 59.8 (Aug) vs. 54.7 (YTD) Admissions: 399 (Aug) vs 3,454 (YTD) (Average per month 432) Peoples Home Health, achieved a positive Operating Margin of $173,544. YTD Operating Margin is $1,499,715. (Peoples has limited few non operating revenues or expenses.) Peoples Home Health key statistics: Medicare & Medicare like episodes: 413 (Aug) vs. 3,389 (YTD) Home health visits: 7,708 (Aug) vs. 57,062 (YTD) Average Medicare episode payment: $2,327 vs. $2,382 (2017 budget) YTD 30 day readmissions: 20% Covenant Health & Community Services had an August operating loss of ($45,955) and a YTD operating loss of ($590,408). CHCS YTD expenses include $201,428 in compensation costs, and $339,353 in legal and consulting expenses related to the growth and diversification activities being pursued by Covenant. Covenant Hospice Foundation achieved Net Income of ($14,013) in August. YTD Net Income is $56,472. Revenues and expenses are currently being reviewed to ensure costs are appropriate for current census levels, proactively addressing a possible period during which future volumes remain flat.

2017 2017 2017 2017 COVENANT CARE PROJECTED PROJECTED PROJECTED MAY JUN JUL AUG COMBINED STATEMENT OF OPERATIONS SEPT OCT NOV 77,764 73,853 99,633 45,077 Consolidated Operating Margin 44,175 45,527 45,300 Net Income 38,338 175,765 201,341 6,122 Hospice 177,522 38,338 38,722 231,688 151,068 152,763 173,703 Peoples 153,060 171,966 154,591 (230,385) (129,805) (101,420) (128,592) Other Companies (127,306) (128,579) (127,293) 39,642 197,028 252,684 51,234 Total Net income 203,277 81,726 66,019

COVENANT CARE COMBINED STATEMENT OF OPERATIONS AUGUST 31, 2017 HOSPICE FOUNDATION CAS MEMORY CARE CHCS CHHH PALLIATIVE CAH PEOPLES ELIMINATIONS COMBINED BUDGET VARIANCE % VARIANCE NET PATIENT/FAMILY CARE/PROGRAM REVENUE 4,589,547-2,521-1,001 12,659 1,118,819 5,724,546 6,490,546 (766,000) -11.8% TOTAL PATIENT/FAMILY CARE EXPENSES 3,443,001 11,646-9,907 10,002 545,955-4,020,511 4,464,918 (444,407) -10.0% CONTRIBUTIONS FROM OPERATIONS 1,146,546 - (9,125) - - - (8,906) 2,656 572,864-1,704,035 2,025,628 (321,593) -15.9% CONTRIBUTION % 25.0% 0.0% 51.2% 29.8% 31.2% -1.4% GENERAL & ADMINISTRATIVE EXPENSES Other Direct 556,873 255 2,520 3,969 26,020 16,691 98 1,373 127,796 (1,479) 734,117 954,372 (220,255) -23.1% Payroll 408,384-4,176 156,983 - - 8,682 218,611-796,836 918,582 (121,747) -13.3% Benefits 79,338 - - 12,790 - - 688 35,191-128,006 162,706 (34,700) -21.3% Allocation from CHCS 90,611 7,482 7,285 11,830 (149,838) 466 7,378 7,064 17,722 - - - - 0.0% TOTAL G&A EXPENSES 1,135,206 7,737 9,805 19,974 45,955 17,158 7,477 17,806 399,320 (1,479) 1,658,958 2,035,660 (376,702) -18.5% OPERATING MARGIN 11,340 (7,737) (18,930) (19,974) (45,955) (17,158) (16,382) (15,150) 173,544 1,479 45,077 (10,032) 55,109-549.3% OPERATING MARGIN % 0.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 15.5% 0.8% -0.2% 0.9% NON-OPERATING REVENUES Contributions and fundraising - 43,761 2,464 - - - 46,225 63,571 (17,346) -27.3% Other Non-Operating Revenues 16,475 2,398 15 35,483 159 (1,479) 53,051 27,341 25,711 94.0% Development/Fundraising Expense (169) (52,435) - - (52,604) (77,434) 24,829-32.1% Other Non-Operating Expense (21,524) - (47) - (18,944) - - - - (40,515) (35,809) (4,707) 13.1% Contributions to Affiliates - - - - - - 0.0% NET NON-OPERATING REVENUE (5,218) (6,276) 2,432 - - 16,538 - - 159 (1,479) 6,157 (22,331) 28,488-127.6% EXCESS OF REVENUE OVER EXPENSES 6,122 (14,013) (16,498) (19,974) (45,955) (619) (16,382) (15,150) 173,703-51,234 (32,363) 83,597-258.3% Note: The above classifications may differ from those of the auditors who prepare statements in conformity with Generally Accepted Accounting Principles

COVENANT CARE COMBINED STATEMENT OF OPERATIONS AUGUST 31, 2017 HOSPICE FOUNDATION CAS MEMORY CARE CHCS CHHH PALLIATIVE CAH PEOPLES ELIMINATIONS COMBINED BUDGET VARIANCE % VARIANCE NET PATIENT/FAMILY CARE/PROGRAM REVENUE 36,364,146-15,184 400 28,840 84,801 8,832,142 45,325,513 50,877,583 (5,552,070) -10.9% TOTAL PATIENT/FAMILY CARE EXPENSES 26,156,094 93,364 14,730 69,387 66,403 4,255,343-30,655,321 35,294,610 (4,639,289) -13.1% CONTRIBUTIONS FROM OPERATIONS 10,208,052 - (78,180) (14,730) 400 - (40,547) 18,398 4,576,800-14,670,192 15,582,973 (912,781) -5.9% CONTRIBUTION % 28.1% 0.0% 51.8% 32.4% 30.6% 1.7% GENERAL & ADMINISTRATIVE EXPENSES Other Direct 4,913,145 6,148 16,167 59,266 369,445 141,890 5,457 16,986 955,017 (11,833) 6,471,688 7,173,966 (702,278) -9.8% Payroll 3,330,744-1,243,036 39,000 71,550 1,680,831-6,365,161 7,093,538 (728,376) -10.3% Benefits 674,230-150,821-9,899 301,759-1,136,710 1,306,614 (169,905) -13.0% Allocation from CHCS 707,555 58,582 57,574 92,699 (1,172,494) 3,597 57,914 55,096 139,478 - - - - 0.0% TOTAL G&A EXPENSES 9,625,674 64,729 73,741 151,965 590,808 184,487 63,371 153,532 3,077,085 (11,833) 13,973,559 15,574,117 (1,600,559) -10.3% OPERATING MARGIN 582,378 (64,729) (151,921) (166,695) (590,408) (184,487) (103,918) (135,134) 1,499,715 11,833 696,633 8,856 687,777 7766.5% OPERATING MARGIN % 1.6% 0.0% 0.0% 0.0% 0.0% 0.0% -360.3% 17.0% 1.5% 0.0% 1.5% NON-OPERATING REVENUES Contributions and fundraising 560 709,643 27,111 1,999 - - 739,313 537,817 201,496 37.5% Other Non-Operating Revenues 494,747 39,679 119-279,775 1,327 (11,833) 803,814 317,728 486,086 153.0% Development/Fundraising Expense (1,392) (616,935) (4,169) - (622,496) (638,145) 15,649-2.5% Other Non-Operating Expense (118,452) (11,185) (47) - (139,198) - - (100) - (268,981) (236,202) (32,779) 13.9% Contributions to Affiliates - - - - - - 0.0% NET NON-OPERATING REVENUE 375,463 121,202 23,015 1,999-140,577 - - 1,227 (11,833) 651,650 (18,802) 670,452-3565.8% EXCESS OF REVENUE OVER EXPENSES 957,841 56,472 (128,907) (164,696) (590,408) (43,910) (103,918) (135,134) 1,500,942-1,348,282 (9,947) 1,358,229-13655.2% Note: The above classifications may differ from those of the auditors who prepare statements in conformity with Generally Accepted Accounting Principles

COVENANT CARE CONSOLIDATED STATEMENT OF CONDITION AUGUST 31, 2017 HOSPICE FOUNDATION CAS MEMORY CARE CHCS CHHH PALLIATIVE CAH PEOPLES COMBINED ASSETS CASH & EQUIVALENTS 2,326,263 183,381 178,585 21,559 35,448 216,220 28,624 8,570 1,507,647 4,506,298 INVESTMENTS - FIXED 33,677 4,843,841 4,877,517 INVESTMENTS - BALANCED 16,240,092 19,377 16,259,469 TOTAL INVESTMENTS 16,273,768 4,863,218-21,136,986 TOTAL CASH & INVESTMENTS 18,600,031 5,046,599 178,585 21,559 35,448 216,220 28,624 8,570 1,507,647 25,643,284 GROSS ACCOUNTS RECEIVABLES 11,792,568 3,208 86,405 7,420 1,583,181 13,472,781 RECEIVABLE ALLOWANCES (1,143,331) (67,631) (136,658) (1,347,619) NET ACCOUNTS RECEIVABLES 10,649,237-3,208 - - - 18,774 7,420 1,446,523 12,125,162 GRANTS / PLEDGES RECEIVABLE - 1,179 1,179 CRUT RECEIVABLE 2,481,325 2,481,325 MISCELLANEOUS RECEIVABLE 39,150 50,000 0 - - 43,862 133,012 DUE TO/FROM CONSOLIDATED 3,909,554 (46,532) (586,297) (172,744) 6,413,971 (10,501,541) (210,451) (192,976) 1,387,017 0 PREPAID EXPENSE 755,971 1,078 2,385 5,043 - (475) 764,002 INVENTORY 174,348 174,348 CASH VALUE ON LIFE INSURANCE 1,060,505 1,060,505 TOTAL CURRENT ASSETS 37,670,122 5,052,325 (402,120) (151,185) 6,454,462 (10,285,321) (163,054) (177,462) 4,385,049 42,382,818 LAND 1,936,722 1,936,722 BUILDINGS & IMPROVENTS 12,627,696 12,627,696 LEASEHOLD IMPROVEMENTS 2,239,472 29,537 2,269,009 FURNITURE, FIXTURES & EQUIPMENT 9,021,204 2,000 294,426 9,317,630 CONSTRUCTION IN PROGRESS 2,782,744 2,782,744 28,607,837 - - 2,000 - - - 323,963 28,933,800 LESS ACCUMULATED DEPRECIATION (12,479,310) (295,110) (12,774,420) NET PROPERTY & EQUIPMENT 16,128,527 - - 2,000 - - - - 28,853 16,159,380 INVESTMENT - PEOPLES 2,163,204 - CON COSTS MOBILE 124,580 124,580 CON COSTS TALLAHASSEE 263,172 263,172 NO COMPETE - BREWTON 60,718 60,718 GOODWILL 1,496 1,496 GOODWILL - PEOPLES 9,073,350 9,073,350 LOAN ORIGINATION FEES 7,875 7,875 TOTAL INTANGIBLE ASSETS 449,965 - - - 7,875 11,236,554 - - - 9,531,190 TOTAL ASSETS 54,248,615 5,052,325 (402,120) (149,185) 6,462,337 951,233 (163,054) (177,462) 4,413,902 68,073,388 LIABILITIES & FUND BALANCE CURRENT LIABILITIES CURRENT PORTION L/T DEBT 448,784 448,784 ACCOUNTS PAYABLE 5,375,203 2,394 - (8,000) 18,944-0 81,473 5,470,015 ADVANCES AGAINST ACCOUNTS RECEIVABLE 5,203,711 5,203,711 DEFERRED REVENUE - (0) 1,787 1,787 ACCRUED SALARY & WAGES 2,671,955 64,753 324,733 18,178 668,283 3,747,902 TOTAL CURRENT LIABILITIES 13,699,653 67,147 1,787-316,733 18,944-18,178 749,756 14,872,199 LONG-TERM LIABILITIES NOTES PAYABLE - - MORTGAGE PAYABLE 6,046,303 6,046,303 OTHER LONG TERM LOANS 431,530 8,800,000 9,231,530 LESS CURRENT PORTION (448,784) (448,784) LONG-TERM CHARITABLE ANNUITIES - 14,305 14,305 INTEREST RATE SWAP PAYABLE - - TOTAL LONG-TERM LIABILITIES 6,029,049 14,305 - - 8,800,000 - - - - 14,843,353 TOTAL LIABILITIES 19,728,702 81,452 1,787-9,116,733 18,944-18,178 749,756 29,715,552 NET ASSETS: UNRESTRICTED 32,027,389 4,128,460 (475,001) (166,296) (2,654,396) 932,289 (163,054) (195,640) 3,664,146 34,934,692 BOARD DESIGNATED BECKER TRUST 71,094-71,094 BOARD DESIGNATED CHILDREN'S PROGRAM 444,999-444,999 BOARD DESIGNATED MARIANNA OFFICE 54,185-54,185 BOARD DESIGNATED PANAMA CITY OFFICE 250,000-250,000 BOARD DESIGNATED GOLDENBERG FUND 46,477-46,477 BOARD DESIGNATED HERO'S WISH 18,956-18,956 TEMPORARILY RESTRICTED - EVENTS 2,500 2,500 TEMPORARILY RESTRICTED - COVENANT SUPPORT FND 5,836-5,836 TEMPORARILY RESTRICTED - NATHANIEL'S LEMONADE 16,001-16,001 TEMPORARILY RESTRICTED - SNOOK FUND 2,333-2,333 TEMPORARILY RESTRICTED - TOP OF GAS 125-125 TEMPORARILY RESTRICTED - MOBILE FUND 1,000 1,000 TEMPORARILY RESTRICTED - HIBBARD TRUST 2,492,525 17,111-2,509,636 TOTAL NET ASSETS 34,519,914 4,970,873 (403,906) (149,185) (2,654,396) 932,289 (163,054) (195,640) 3,664,146 38,357,836 TOTAL LIABILITIES & NET ASSETS 54,248,615 5,052,325 (402,119) (149,185) 6,462,337 951,233 (163,054) (177,462) 4,413,902 68,073,388

Financial Report Month Ended 08/31/2017

Executive Summary Excess Revenue over Expenses was $6,122 for the month versus a $61,029 budget. YTD Excess Revenues over Expenses was $957,841 versus a budget of $383,987 and compares to a prior YTD of ($501,298). Of the Excess Revenue over Expenses, $11,340 was in Operating Margin and ($5,218) was in Net Non-Operating Income. Net non-operating income was ($5,218) for the month, unfavorable to a budget of $7,700. YTD net non-operating income was $375,463, favorable to a budget of $195,353. Reflected in the Statement of Changes in Net Assets is the change in unrealized gain from investments of $56,307 for the month and $945,488 YTD. With this, we had an increase in Net Assets YTD of $1,902,769. Census averaged 769.5 for the month versus a budget of 841.9. YTD census averaged 777.5 versus a budget of 832.7 and compares to a prior YTD census of 858.1. Referrals for the month totaled 597 and admissions were 399 compared to a budget of 454, for a monthly conversion rate of 66.8%. YTD referrals and admissions were 4,862 and 3,454 respectively, a conversion rate of 71.0%. Operating Margin The operating margin of.3% for the month was unfavorable to the budget of 1.0%. YTD operating margin was 1.7% versus a budget of.5%. Prior year was (1.7)%. Operating income for the month was $11,340, unfavorable to the budget of $53,329. YTD operating income was $582,378, favorable to a budget of $188,634 and compares to a prior year of ($649,758). Net revenue for the month was $4,589,547, unfavorable to a budget of $5,471,861. YTD net revenue was $36,364,146, unfavorable to a budget of $42,073,641 and compares to a prior year of $39,197,688. Total patient care costs per day for the month, excluding inpatient costs and room & board expenses which are a function of patient mix, were $105.29, favorable to a budget of $108.41. YTD patient care costs excluding inpatient costs and room and board expenses were $101.11, favorable to a budget of $109.17. G&A expenses of 25.1% of revenue were favorable to the budget of 27.2%. YTD G&A expenses of 26.5% of revenue were favorable to the budget 26.6% and compares to prior year of 26.1%.

Non-Operating Margin Net non-operating income was ($5,218) for the month, unfavorable to budget of $7,700. YTD net non-operating income was $375,463, favorable to a budget of $195,353. Reasons are described below. Other non-operating revenue, which includes investment income, was $16,475 for the month compared to a budget of $28,611, and YTD was $494,747 compared to a budget of $302,002. Other non-operating expense for the month was $21,524 compared to a budget of $20,739. This category includes interest expense and investment expenses. YTD was $118,452 compared to a budget of $105,298. 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.

Other Changes in Net Assets Changes in unrealized gain for the month was $56,307 and YTD was $945,488. With the above, Net Assets for the month increased $62,429 compared to a budgeted increase of $61,029. YTD Net Assets increased $1,902,769 and compares to a budgeted increase of $383,987. Balance Sheet Cash and short-term investments was $18,600,031 at month end, a supply of 132 days of operating expenses compared to 118 days at this time last year. Days in Accounts Payable was at 58 days. Days in Accounts Receivable was 73 days. Financial Covenants for Bond Agreement (Covenant Hospice) are met: Ratio of Maximum Debt to Tangible Net Worth was.58:1 at August 31, 2017, favorable to Bond Covenant not to exceed 2.5:1. Tangible Net Worth was $34,069,948 at August 31, 2017, favorable to minimum per Bond Covenant of $6,500,000. Fixed Charge Coverage at August 31, 2017 was 2.1:1, favorable to Bond Covenant of 1.1:1.

COVENANT HOSPICE, INC. CONSOLIDATED 2017 2017 MONTH % INCOME STATEMENT YEAR TO YEAR TO % PRIOR YEAR JUL AUG BUDGET VARIANCE VARIANCE FY 2017 DATE DATE BUDGET VARIANCE VARIANCE TO DATE PATIENT/FAMILY CARE REVENUE 3,329,365 3,242,529 3,481,912 (239,384) -6.88% Routine Home Care 25,836,510 27,097,460 (1,260,950) -4.65% 27,627,609 677,375 738,199 1,061,440 (323,241) -30.45% Inpatient Care 5,998,907 7,732,500 (1,733,594) -22.42% 5,741,294 10,555 7,788 137,522 (129,734) -94.34% Continuous Care 201,304 1,070,114 (868,810) -81.19% 940,956 15,409 11,134 19,172 (8,038) -41.92% Respite Care 108,947 153,806 (44,860) -29.17% 98,622 695,135 858,699 947,064 (88,365) -9.33% Room & Board 6,293,487 7,376,978 (1,083,491) -14.69% 6,567,004 8,193 12,892 9,171 3,722 40.58% Consulting Physician 82,116 71,023 11,093 15.62% 84,689 29,195 26,872 106,676 (79,804) -74.81% Primary Physician 263,501 790,402 (526,901) -66.66% 618,435 82,510 82,040 1,067 80,973 7591.38% Other Care 376,785 8,533 368,252 4315.45% 7,882 4,847,738 4,980,153 5,764,023 (783,870) -13.60% TOTAL PATIENT/FAMILY CARE REVENUE 39,161,556 44,300,816 (5,139,260) -11.60% 41,686,490 154,889 110,940 109,103 1,837 1.68% Charity/Unfunded Care 1,160,060 828,543 331,518 40.01% 880,389 275,224 279,667 183,060 96,607 52.77% Contractual Adjustments 1,637,350 1,398,632 238,718 17.07% 1,608,413 430,114 390,607 292,163 98,444 33.70% TOTAL DEDUCTIONS FROM REVENUE 2,797,410 2,227,175 570,235 25.60% 2,488,802 4,417,624 4,589,547 5,471,861 (882,314) -16.12% NET PATIENT/FAMILY CARE REVENUE 36,364,146 42,073,641 (5,709,495) -13.57% 39,197,688 OPERATING EXPENSES PATIENT/FAMILY CARE EXPENSES (2,004) 4,490 1,608 2,881 179.15% Other Direct 28,070 27,267 804 2.95% 29,758 1,448,818 1,546,582 1,753,286 (206,704) -11.79% Payroll 11,619,471 13,707,802 (2,088,330) -15.23% 13,980,270 324,995 318,770 378,028 (59,259) -15.68% Benefits 2,658,753 2,940,941 (282,188) -9.60% 2,743,979 479,012 548,573 565,971 (17,397) -3.07% Patient Expenses 4,049,013 4,378,870 (329,857) -7.53% 4,169,685 91,821 93,144 130,364 (37,220) -28.55% Mileage/Fleet Car 748,575 1,035,118 (286,543) -27.68% 908,445 2,342,642 2,511,558 2,829,257 (317,699) -11.23% TOTAL CORE PATIENT/FAMILY CARE EXPENSES 19,103,883 22,089,997 (2,986,114) -13.52% 21,832,136 43,554 35,931 112,179 (76,248) -67.97% Inpatient Expenses 456,204 872,891 (416,687) -47.74% 823,118 778,758 887,745 981,999 (94,254) -9.60% Room & Board Expenses 6,505,048 7,641,431 (1,136,382) -14.87% 6,886,037 7,392 7,767 9,171 (1,404) -15.30% Consulting Physician Expenses 90,959 71,023 19,936 28.07% 66,632 829,704 931,443 1,103,348 (171,906) -15.58% TOTAL CONTRACTED PATIENT /FAMILY CARE EXPENSES 7,052,212 8,585,344 (1,533,133) -17.86% 7,775,787 3,172,346 3,443,001 3,932,605 (489,605) -12.45% TOTAL PATIENT/FAMILY CARE EXPENSES 26,156,094 30,675,341 (4,519,247) -14.73% 29,607,924 1,245,278 1,146,546 1,539,255 (392,710) -25.51% CONTRIBUTIONS FROM OPERATIONS 10,208,052 11,398,300 (1,190,248) -10.44% 9,589,764 28.19% 24.98% 28.13% -3.15% CONTRIBUTION % 28.07% 27.09% 0.98% 24.47% GENERAL & ADMINISTRATIVE EXPENSES 570,609 556,873 786,770 (229,896) -29.22% Other Direct 4,913,145 5,842,496 (929,351) -15.91% 6,257,515 384,833 408,384 505,339 (96,956) -19.19% Payroll 3,330,744 3,842,294 (511,550) -13.31% 3,376,266 85,968 79,338 103,206 (23,869) -23.13% Benefits 674,230 817,321 (143,091) -17.51% 605,740 87,263 90,611 90,611 0 0.00% Alloc to/from Other Subsidiaries 707,555 707,555 0 0.00% 0 1,128,673 1,135,206 1,485,927 (350,721) -23.60% TOTAL G&A EXPENSES 9,625,674 11,209,666 (1,583,992) -14.13% 10,239,522 25.55% 24.73% 27.16% -2.42% % OF NET PATIENT/FAMILY CARE REVENUE 26.47% 26.64% -0.17% 26.12% 4,301,019 4,578,207 5,418,532 (840,325) -15.51% TOTAL OPERATING EXPENSES 35,781,768 41,885,007 (6,103,238) -14.57% 39,847,446 116,605 11,340 53,329 (41,989) -78.74% OPERATING MARGIN 582,378 188,634 393,743 208.73% (649,758) 2.64% 0.25% 0.97% -0.73% OPERATING MARGIN % 1.60% 0.45% 1.15% -1.66% NON-OPERATING REVENUES 0 0 0 0 100.00% Contributions/Unsolicited 0 0 0 100.00% 125,043 0 0 0 0 100.00% Planned Giving/Solicited - 0 0 100.00% 121,777 0 0 0 0 100.00% Foundation Support-Fund Raising/Event Income 0 0 0 100.00% 232,065 0 0 0 0 100.00% United Way/CFC 0 0 0 100.00% 62,052 560 0 0 0 100.00% Grants 560 0 560 100.00% 29,084 560 0 0 0 100.00% TOTAL NON-OPERATING REVENUES 560 0 560 100.00% 570,021 NON-OPERATING EXPENSES 169 169 172 (3) -1.89% Other Direct 1,392 1,351 41 3.02% 115,364 0 0 0 0 100.00% Fundraising/Event Expense 0 0 0 100.00% 59,582 0 0 0 0 100.00% Payroll 0 0 0 100.00% 435,597 0 0 0 0 100.00% Benefits - 0 0 100.00% 93,928 169 169 172 (3) -1.89% TOTAL NON-OPERATING EXPENSES 1,392 1,351 41 3.02% 704,471 391 (169) (172) 3-1.89% NET NON-OPERATING REVENUE (LOSS) (832) (1,351) 519-38.43% (134,451) 107,439 16,475 28,611 (12,136) -42.42% OTHER NON-OPERATING REVENUES 494,747 302,002 192,745 63.82% 546,712 22,533 21,524 20,739 785 3.79% OTHER NON-OPERATING EXPENSES 118,452 105,298 13,153 12.49% 263,802 85,296 (5,218) 7,700 (12,918) -167.76% NON OPERATING INCOME 375,463 195,353 180,110 92.20% 148,460 4,525,623 4,606,022 5,500,472 (894,450) -16.26% TOTAL REVENUES 36,859,453 42,375,643 (5,516,190) -13.02% 40,314,421 4,323,722 4,599,900 5,439,443 (839,543) -15.43% TOTAL EXPENSES 35,901,612 41,991,656 (6,090,044) -14.50% 40,815,719 201,901 6,122 61,029 (54,907) -89.97% EXCESS OF REVENUE OVER EXPENSES 957,841 383,987 573,854 149.45% (501,298) 4.46% 0.13% 1.11% -0.98% MARGIN % 2.60% 0.91% 1.69% -1.24% 24,008 23,854 26,099 (2,245) -8.60% PATIENT DAYS 188,937 202,340 (13,403) -6.62% 209,384 774.5 769.5 841.9 (72) AVERAGE DAILY CENSUS 777.5 832.7 (55) 858.1 56.9 59.8 57.5 2 AVERAGE LENGTH OF STAY 54.7 58.7 (4.0) 62.0 422 399 454 (55) ADMISSIONS 3,454 3,447 7 3,360 592 597 REFERRALS 4,862 4,629 71.3% 66.8% CONVERSION RATIO 71.0% 72.6% 336 319 330 (11) FTE's - CLINICAL 370 70 64 66 (2) FTE's - G&A 64 4 4 7 (3) FTE's NON-OP 8 410 387 403 (16) FTE's - TOTAL 442 $492.92 $15.81 $151.44 -$135.63 NET INCOME PER FTE -$1,135.44 1.89 1.99 2.09-0.10 ADC/FTE'S 1.94

COVENANT HOSPICE, INC. CONSOLIDATED 2017 2017 MONTH % STATEMENT OF CHANGES IN NET ASSETS YEAR TO YEAR TO % PRIOR YEAR JUL AUG BUDGET VARIANCE VARIANCE FY 2017 DATE DATE BUDGET VARIANCE VARIANCE TO DATE 201,901 6,122 61,029 (54,907) -89.97% EXCESS OF REVENUE OVER EXPENSES 957,841 383,987 573,854 149.45% (501,298) OTHER CHANGES IN UNRESTRICTED NET ASSETS 144,551 56,307 0 56,307 100.00% Change in net unrealized gain on other than trading securities 945,488 0 945,488 100.00% 755,762 346,452 62,429 61,029 1,400 2.29% INCREASE IN UNRESTRICTED NET ASSETS 1,903,329 383,987 1,519,341 395.67% 254,464 CHANGES IN TEMPORARILY RESTRICTED NET ASSETS 0 0 0 0 100.00% Contributions 0 0 0 100.00% 3,990 (560) 0 0 0 100.00% Net assets released from restrictions (560) 0 (560) 100.00% (690) (560) 0 0 0 100.00% INCREASE/(DECREASE) IN TEMPORARILY RESTRICTED NET ASSETS (560) 0 (560) 100.00% 3,300 345,892 62,429 61,029 1,400 2.29% INCREASE (DECREASE) IN NET ASSETS 1,902,769 383,987 1,518,781 395.53% 257,764

COVENANT HOSPICE, INC. PER PATIENT DAY 2017 2017 MONTH INCOME STATEMENT YEAR TO YEAR TO PRIOR % JUL AUG BUDGET VARIANCE FY 2017 DATE DATE BUDGET VARIANCE YEAR CHANGE PATIENT/FAMILY CARE REVENUE 138.68 135.93 133.41 2.52 Routine Home Care 136.75 133.92 2.83 131.95 3.6% 28.21 30.95 40.67 (9.72) Inpatient Care 31.75 38.22 (6.46) 27.42 15.8% 0.44 0.33 5.27 (4.94) Continuous Care 1.07 5.29 (4.22) 4.49-76.3% 0.64 0.47 0.73 (0.27) Respite Care 0.58 0.76 (0.18) 0.47 22.4% 28.95 36.00 36.29 (0.29) Room & Board 33.31 36.46 (3.15) 31.36 6.2% 0.34 0.54 0.35 0.19 Consulting Physician 0.43 0.35 0.08 0.40 7.5% 1.22 1.13 4.09 (2.96) Primary Physician 1.39 3.91 (2.51) 2.95-52.8% 3.44 3.44 0.04 3.40 Other Care 1.99 0.04 1.95 0.04 5197.7% 201.92 208.78 220.85 (12.08) TOTAL PATIENT/FAMILY CARE REVENUE 207.27 218.94 (11.67) 199.09 4.1% 6.45 4.65 4.18 0.47 Charity/Unfunded Care 6.14 4.09 2.05 4.20 46.0% 11.46 11.72 7.01 4.71 Contractual Adjustments 8.67 6.91 1.75 7.68 12.8% 17.92 16.37 11.19 5.18 TOTAL DEDUCTIONS FROM REVENUE 14.81 11.01 3.80 11.89 24.6% 184.01 192.40 209.66 (17.26) NET PATIENT/FAMILY CARE REVENUE 192.47 207.94 (15.47) 187.20 2.8% OPERATING EXPENSES PATIENT/FAMILY CARE EXPENSES (0.08) 0.19 0.06 0.13 Other Direct 0.15 0.13 0.01 0.14 4.5% 60.35 64.84 67.18 (2.34) Payroll 61.50 67.75 (6.25) 66.77-7.9% 13.54 13.36 14.48 (1.12) Benefits 14.07 14.53 (0.46) 13.11 7.4% 19.95 23.00 21.69 1.31 Patient Expenses 21.43 21.64 (0.21) 19.91 7.6% 3.82 3.90 4.99 (1.09) Mileage 3.96 5.12 (1.15) 4.34-8.7% 97.58 105.29 108.41 (3.12) TOTAL CORE PATIENT/FAMILY CARE EXPENSES 101.11 109.17 (8.06) 104.27-3.0% 1.81 1.51 4.30 (2.79) Inpatient Expenses 2.41 4.31 (1.90) 3.93-38.6% 32.44 37.22 37.63 (0.41) Room & Board Expenses 34.43 37.77 (3.34) 32.89 4.7% 0.31 0.33 0.35 (0.03) Consulting Physician Expenses 0.48 0.35 0.13 0.32 51.3% 34.56 39.05 42.28 (3.23) TOTAL PASS THROUGH PATIENT /FAMILY CARE EXPENSES 37.33 42.43 (5.10) 37.14 0.5% 132.14 144.34 150.68 (6.34) TOTAL PATIENT/FAMILY CARE EXPENSES 138.44 151.60 (13.16) 141.40-2.1% 51.87 48.07 58.98 (10.91) CONTRIBUTIONS FROM OPERATIONS 54.03 56.33 (2.30) 45.80 18.0% GENERAL & ADMINISTRATIVE EXPENSES 23.77 23.35 30.15 (6.80) Other Direct 26.00 28.87 (2.87) 29.89-13.0% 16.03 17.12 19.36 (2.24) Payroll 17.63 18.99 (1.36) 16.12 9.3% 3.58 3.33 3.95 (0.63) Benefits 3.57 4.04 (0.47) 2.89 23.4% 3.63 3.80 3.47 0.33 Alloc to Other Subsidiaries 3.74 3.50 0.25-0.0% 47.01 47.59 56.93 (9.34) TOTAL G&A EXPENSES 50.95 55.40 (4.45) 48.90 0.20 25.5% 24.7% 27.2% -2.4% % OF NET PATIENT/FAMILY CARE REVENUE 26.5% 26.6% -0.2% 26.1% 1.3% 179.15 191.93 207.62 (15.69) TOTAL OPERATING EXPENSES 189.38 207.00 (17.62) 190.31-0.5% 4.86 0.48 2.04 (1.57) OPERATING MARGIN 3.08 0.93 2.15 (3.10) 199.3% NON-OPERATING REVENUES - - - - Contributions/Unsolicited - - - 0.60-100.0% - - - - Planned Giving/Solicited - - - 0.58-100.0% - - - - Foundation Support-Fund Raising/Event Income - - - 1.11-100.0% - - - - United Way/CFC - - - 0.30-100.0% 0.02 - - - Grants 0.00-0.00 0.14-97.9% 0.02 - - - TOTAL NON-OPERATING REVENUES 0.00-0.00 2.72-99.9% NON-OPERATING EXPENSES 0.01 0.01 0.01 0.00 Other Direct 0.01 0.01 0.00 0.55-98.7% - - - - Fundraising/Event Expense - - - 0.28-100.0% - - - - Payroll - - - 2.08-100.0% - - - - Benefits - - - 0.45-100.0% 0.01 0.01 0.01 0.00 TOTAL NON-OPERATING EXPENSES 0.01 0.01 0.00 3.36-99.8% 0.02 (0.01) (0.01) (0.00) NET NON-OPERATING REVENUE (LOSS) (0.00) (0.01) 0.00 (0.64) 99.3% 4.48 0.69 1.10 (0.41) OTHER NON-OPERATING REVENUES 2.62 1.49 1.13 2.61 0.3% 0.94 0.90 0.79 0.11 OTHER NON-OPERATING EXPENSES 0.63 0.52 0.11 1.26-50.2% 3.55 (0.22) 0.30 (0.51) NON OPERATING INCOME 1.99 0.97 1.02 0.71 180.3% 188.50 193.09 210.75 (17.66) TOTAL REVENUES 195.09 209.43 (14.34) 192.54 1.3% 180.10 192.84 208.42 (15.58) TOTAL EXPENSES 190.02 207.53 (17.51) 194.93-2.5% 8.41 0.26 2.34 (2.08) EXCESS OF REVENUE OVER EXPENSES 5.07 1.90 3.17 (2.39) 311.8% 4.46% 0.13% 1.11% -0.98% MARGIN % 2.60% 0.91% 1.69% -1.24%

COVENANT HOSPICE, INC. BALANCE SHEET FOR AUGUST 31, 2017 BALANCE BALANCE BALANCE NET CHANGE NET CHANGE 08/31/2017 07/31/2017 12/31/2016 DURING MONTH DURING YEAR ASSETS CASH & EQUIVALENTS 2,326,263 1,908,279 1,346,241 417,984 980,022 INVESTMENTS - FIXED 33,677 44,907 2,843,245 (11,230) (2,809,568) INVESTMENTS - BALANCED 16,240,092 16,186,235 12,872,114 53,856 3,367,978 TOTAL INVESTMENTS 16,273,768 16,231,142 15,715,358 42,626 558,410 TOTAL CASH & INVESTMENTS 18,600,031 18,139,422 17,061,599 460,610 1,538,432 GROSS INSURANCE RECEIVABLES 11,792,568 11,986,581 13,352,919 (194,013) (1,560,351) RECEIVABLE ALLOWANCES (1,143,331) (1,118,839) (1,133,589) (24,491) (9,741) NET INSURANCE RECEIVABLES 10,649,237 10,867,741 12,219,330 (218,504) (1,570,092) GRANTS / PLEDGES RECEIVABLE - - (0) - 0 CHARITABLE REMAINDER UNITRUST RECEIVABLE 2,481,325 2,481,325 2,481,325 - - MISCELLANEOUS RECEIVABLE (681,722) (601,725) (404,095) (79,997) (277,627) DUE FROM/TO FOUNDATION 21,061 26,140 109,255 (5,079) (88,194) DUE FROM/TO ALZHEIMER'S 528,723 516,832 484,074 11,892 44,650 DUE FROM/TO COVENANT @ HOME 137,880 137,217 57,816 662 80,063 DUE FROM/TO COVENANT HEALTH SYSTEMS 2,808,792 2,729,445 2,083,358 79,347 725,434 DUE FROM/TO COVENANT PALLIATIVE CARE 152,538 142,577 78,785 9,960 73,752 DUE FROM/TO COVENANT UNIVERSITY - - (0) - 0 DUE FROM/TO COVENANT MEMORY CARE 80,045 76,077 1,100 3,969 78,945 DUE FROM/TO COVENANT HOME HEALTH HOLDING 901,389 901,389 901,250-139 PREPAID EXPENSE 755,971 826,197 550,714 (70,226) 205,258 INVENTORY 174,348 171,871 150,232 2,476 24,116 CASH VALUE ON LIFE INSURANCE 1,060,505 1,048,650 965,666 11,855 94,840 TOTAL CURRENT ASSETS 37,670,122 37,463,158 36,740,408 206,964 929,715 LAND 1,936,722 1,936,722 1,936,722 - - BUILDINGS & IMPROVENTS 12,627,696 12,627,696 12,572,987-54,709 LEASEHOLD IMPROVEMENTS 2,239,472 2,239,472 2,238,571-901 FURNITURE, FIXTURES & EQUIPMENT 9,021,204 8,985,538 8,961,731 35,667 59,473 CONSTRUCTION IN PROGRESS 2,782,744 2,234,526 61,975 548,218 2,720,769 28,607,837 28,023,953 25,771,986 583,885 2,835,852 LESS ACCUMULATED DEPRECIATION (12,479,310) (12,375,334) (11,636,997) (103,976) (842,313) NET PROPERTY & EQUIPMENT 16,128,527 15,648,618 14,134,988 479,909 1,993,539 CON COSTS MOBILE 124,580 127,023 144,122 (2,443) (19,542) CON COSTS TALLAHASSEE 263,172 264,029 270,030 (857) (6,858) NO COMPETE - BREWTON 60,718 61,112 63,872 (394) (3,154) GOODWILL - BREWTON 1,496 1,501 1,535 (5) (39) TOTAL INTANGIBLE ASSETS 449,965 453,664 479,558 (3,699) (29,593) INVESTMENT IN STUDER COVENANT ALLIANCE, LLC - - - - - TOTAL ASSETS 54,248,615 53,565,441 51,354,954 683,174 2,893,661 LIABILITIES & FUND BALANCE CURRENT LIABILITIES CURRENT PORTION L/T DEBT 448,784 448,784 448,784 - - ACCOUNTS PAYABLE 5,375,203 4,959,351 2,456,216 415,852 2,918,987 ADVANCES AGAINST ACCOUNTS RECEIVABLE 5,203,711 5,197,438 6,419,509 6,273 (1,215,798) ACCRUED SALARY & WAGES 2,671,955 2,434,148 3,114,490 237,807 (442,535) TOTAL CURRENT LIABILITIES 13,699,653 13,039,721 12,438,999 659,932 1,260,654 LONG-TERM LIABILITIES NOTES PAYABLE - - - - - MORTGAGE PAYABLE 6,046,303 6,077,597 6,324,816 (31,294) (278,513) OTHER LONG TERM LOANS 431,530 439,423 495,786 (7,893) (64,256) LESS CURRENT PORTION (448,784) (448,784) (448,784) - - INTEREST RATE SWAP PAYABLE - - - - - TOTAL LONG-TERM LIABILITIES 6,029,049 6,068,236 6,371,818 (39,187) (342,769) TOTAL LIABILITIES 19,728,702 19,107,956 18,810,817 620,745 917,885 NET ASSETS: UNRESTRICTED 32,027,389 31,964,959 30,051,053 62,429 1,976,336 TEMPORARILY RESTRICTED 2,492,525 2,492,525 2,493,085 - (560) TOTAL NET ASSETS 34,519,914 34,457,484 32,544,138 62,429 1,975,776 TOTAL LIABILITIES & NET ASSETS 54,248,615 53,565,441 51,354,954 683,174 2,893,661 CASH ONHAND 132 130 107 DAYS REVENUE OUTSTANDING 73 74 79 DAYS PAYABLE OUTSTANDING 58 54 36 DEBT TO FUND BALANCE 0.6 0.6 0.6 CURRENT ASSETS TO CURRENT LIABILITIES 2.7 2.9 3.0

COVENANT HOSPICE, INC. STATEMENT OF CASH FLOWS August 31, 2017 MONTH YEAR TO DATE CASH FLOWS FROM OPERATING ACTIVITIES: Increase (decrease) in net assets 62,429 1,975,776 Adjustments to reconcile increase in net assets to net cash provided by operating activities: Depreciation expense 103,976 842,370 Amortization expense 3,699 29,593 Provision for bad debts - - Prior period adjustments Change in operating assets and liabilities - Accounts receivable 194,013 1,560,351 Pledges receivable - (0) Allowance for Doubtful Accounts 25,000 8,869 Allowance for Doubtful Accounts Audit - 30,000 Allowance for Doubtful Accounts Sequestration (509) (29,127) Miscellaneous receivables 79,355 (14,939) Prepaid expenses 70,226 (205,258) SCA Investment - - Inventory (2,476) (24,116) Line of Credit 675,000 2,884,650 Accounts payable (180,182) (443,964) Accrued expenses 158,841 (305,685) Net cash provided (required) by operating activities 1,189,371 6,308,520 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property and equipment (583,885) (2,835,852) Retirement of Capital Assets - (58) No Compete Agreement - Brewton - - Certificate of Need - Mobile - - Cash Value of Insurance Investment (11,855) (94,840) Net cash used in investing activities (595,740) (2,930,749) CASH FLOWS FROM FINANCING ACTIVITIES Accrued PIP liability 6,273 (874,347) Receivable from CHF 5,079 88,194 Receivable from CHP (9,960) (73,752) Receivable from CHCS (79,347) (725,434) Receivable from CAS (11,892) (44,650) Receivable from C@Home (662) (80,063) Receivable from Hospice University - (0) Receivable from Peoples Home Health 642 292,566 Receivable from Memory Care (3,969) (78,945) Receivable from CH3 - (139) Payments on obligations under capital leases (7,893) (64,256) Payments on obligations under debt (31,294) (278,513) Due to Alzheimer's - - Due to Foundation - - Net cash used by financing activities (133,022) (1,839,339) NET INCREASE (DECREASE) IN CASH 460,610 1,538,432 CASH, BEGINNING OF PERIOD 18,139,422 17,061,599 CASH, END OF PERIOD 18,600,031 18,600,031

FINANCIAL COVENANTS 08/31/17 Ratio of Maximum Debt to Tangible Net Worth of not more than 2.5:1 COVENANT Total debt 19,728,701.53 Tangible Net Worth 34,069,948.37 Ratio of above 0.58 Minimum Tangible Net Worth of $6,500,000 Tangible Net Worth (net assets) 34,069,948.37 Minimum Fixed Charge Coverage of 1.10:1.0 EBITDA + Lease and Rent Expense 4,380,716.74 CMLTD + Interest + Lease and Rent Expense 2,086,823.63 Ratio of above 2.10 EBITDA 1,919,562.31 Lease and Rent Expense 1,000,915.52 2,920,477.83 CMLTD 448,784.00 Interest Expense 91,110.90 Lease and Rent Expense 1,000,915.52 Depreciation & Amortization Expenses 870,610.42 Liquidity of $5,000,000 or more Cash and Investments 18,139,421.53 Less: Restricted for BB&T Line of Credit (12,768,000.00) Less: Current Portion L/T Debt (448,784.00) Unrestricted Cash and Investments 4,922,637.53 Cash Value of Corporate Insurance Policy 1,048,650.30 Unrestricted Line of Credit with Coastal Bank 1,560,577.45 Total Liquidity 7,531,865.28 WITH CHANGES IN NET ASSETS Minimum Fixed Charge Coverage of 1.10:1.0 EBITDA + Lease and Rent Expense + Changes in Net Assets 5,326,204.48 CMLTD + Interest + Lease and Rent Expense 2,086,823.63 Ratio of above 2.55 CHANGES IN UNRESTRICTED/TEMPORARILY RESTRICTED NET ASSETS 945,487.74

Peoples Home Health, LLC. Income Statement & Balance Sheet August 31, 2017

PEOPLES HOME HEALTH INCOME STATEMENT AS OF AUGUST 31, 2017 Ordinary Income/Expense Income MTD YTD 4000 Medicare Revenue 779,497.99 6,311,915.52 4100 Non Medicare Revenue 134,751.82 986,792.27 4200 Medicare Like 13,973.33 108,872.36 4201 Medicare Like Discounted 190,595.68 1,424,562.29 Total Income 1,118,818.82 8,832,142.44 Cost of Goods Sold 5000 Salaries & Wages Clinical Staff 5005 Skilled Nursing 176,193.76 1,347,921.54 5010 Occup Therapy 45,157.16 337,764.78 5015 Physical Therapy 161,695.55 1,286,299.57 5020 Speech Therapy 15,956.12 113,189.37 5025 Social Work 14,746.14 89,514.32 5030 Home Health Aide 2,460.01 22,673.51 Total 5000 Salaries & Wages Clinical Staff 416,208.74 3,197,363.09 5050 Bonuses 5051 Bonus Skilled Nursing 600.00 6,956.09 5052 Bonus Occup Therapy 270.71 5053 Bonus Physical Therapy 509.41 5063 Incentive Skilled Nursing 500.00 730.00 5064 Incentive Occup Therapy 25.00 5065 Incentive Physical Therapy 705.00 Total 5050 Bonuses 1,100.00 9,196.21 5100 Benefits Payroll Taxes 5105 Skilled Nursing 13,033.99 100,894.04 5110 Occup Therapy 3,026.90 23,761.41 5115 Physical Therapy 12,006.85 93,883.58 5120 Speech Therapy 1,113.49 8,601.65 5125 Social Work 937.89 6,532.08 5130 Home Health Aide 122.03 1,382.96 Total 5100 Benefits Payroll Taxes 30,241.15 235,055.72 5200 Benefits Group/Supplemental Ins 5205 Skilled Nursing 14,580.79 125,888.91 5210 Occup Therapy 2,462.69 24,036.50 5215 Physical Therapy 11,830.56 111,527.04 5220 Speech Therapy 403.40 3,669.17 5225 Social Work 762.50 6,584.46 5230 Home Health Aide 751.13 7,341.90 Total 5200 Benefits Group/Supplemental Ins 30,791.07 279,047.98 5300 Benefits Workers' Comp/Malprac 5305 Skilled Nursing 4,872.67 37,556.43

PEOPLES HOME HEALTH INCOME STATEMENT AS OF AUGUST 31, 2017 Ordinary Income/Expense Income MTD YTD 5310 Occup Therapy 1,308.10 10,148.59 5315 Physical Therapy 4,685.54 36,313.13 5320 Speech Therapy 492.86 3,836.70 5325 Social Work 293.41 2,258.82 5330 Home Health Aide 129.74 995.11 Total 5300 Benefits Workers' Comp/Malprac 11,782.32 91,108.78 5400 Benefits 401(k) Match 5405 Skilled Nursing 257.57 2,305.36 5410 Occup Therapy 371.94 3,580.27 5415 Physical Therapy 1,364.35 13,533.85 5420 Speech Therapy 159.93 1,463.31 Total 5400 Benefits 401(k) Match 2,153.79 20,882.79 5500 Mileage 5505 Skilled Nursing 15,010.99 113,692.40 5510 Occup Therapy 2,763.00 20,085.67 5515 Physical Therapy 7,074.14 62,724.59 5520 Speech Therapy 943.84 6,922.16 5525 Social Work 1,036.36 6,293.11 5530 Home Health Aide 1,386.22 10,644.01 Total 5500 Mileage 28,214.55 220,361.94 5600 Medical Supplies 5604 Routine Medical Supplies 4,517.81 32,915.13 5605 Billable Medical Supplies 16,654.57 128,883.90 5606 Medical Monitoring 1,361.42 5607 TCP Monitoring 4,000.00 36,839.57 5610 Medical Waste Removal 290.75 2,326.00 Total 5600 Medical Supplies 25,463.13 202,326.02 Total COGS 545,954.75 4,255,342.53 Gross Profit 572,864.07 4,576,799.91 Expense 8500 Answering Service 2,330.37 9,452.71 8505 Bank Services Charges 440.26 2,922.79 8510 Billing Service Fees 906.60 6,956.64 8515 Computer Supplies & Repairs 147.60 6,552.81 8520 Continuing Education Staff 655.98 9,140.30 8525 Contracted Services 8530 Alarm & Security 91.39 915.49 8535 Janitorial 1,383.02 8,662.60 8545 Pest Control 127.20 8550 Shredding 101.90 1,039.25

PEOPLES HOME HEALTH INCOME STATEMENT AS OF AUGUST 31, 2017 Ordinary Income/Expense Income MTD YTD Total 8525 Contracted Services 1,576.31 10,744.54 8560 Depreciation Expense 1,330.07 8,656.96 8565 Dues & Subscriptions 607.10 7,507.49 8570 Equipment Leases 8575 Copiers 1,132.68 9,661.72 8577 Postage Machine 178.98 536.86 Total 8570 Equipment Leases 1,311.66 10,198.58 8580 Insurance 8585 Business Liability 9,177.00 14,242.66 8597 Workers' Comp 546.68 4,372.22 Total 8580 Insurance 9,723.68 18,614.88 8600 Interest Expense 2.34 2.34 8605 Licenses and Permits 65.70 100.70 8610 Marketing 5630 Printing Brochures 290.79 1,984.20 5635 Sponsorships 300.00 300.00 8613 Mktg Promotionals (Non Allow) 617.02 5,887.19 8614 General Marketing (Non Allow) 1,818.77 15,155.50 8615 General Marketing (Allowable) 365.40 1,803.17 8616 BD/Mktg Dues & Subscriptions 131.39 1,848.71 8619 BD/Mktg Meals & Entertainment 2,538.35 12,111.40 8620 Internet/Web Hosting 604.58 2,081.29 8621 Social Media 379.00 3,194.59 8817 BD/Mktg Telephone 893.64 7,488.21 9050 BD/Mktg Staff Training 37.15 172.51 9051 BD/Mktg Supplies 244.90 1,176.54 9052 BD/Mktg Special Events 1,295.94 9055 BD/Mktg Staff Meetings/Parties 164.46 628.02 Total 8610 Marketing 8,385.45 55,127.27 8645 Meals & Entertainment 50% 8646 Meals & Ent Office Staff 292.93 2,629.96 8647 Meals & Ent BD/Mktg Staff 210.31 Total 8645 Meals & Entertainment 50% 292.93 2,840.27 8650 Office Expense 8655 Copier Supplies 2,994.74 13,151.58 8656 Internet Service 579.00 4,701.00 8657 Office Supplies 1,681.82 11,531.05 8658 Break Room Supplies 341.86 1,790.27 8659 Office Equipment (Non Capital) 4,295.21 8660 Operation Supplies 1,662.59 15,364.81

PEOPLES HOME HEALTH INCOME STATEMENT AS OF AUGUST 31, 2017 Ordinary Income/Expense Income MTD YTD Total 8650 Office Expense 7,260.01 50,833.92 8665 Payroll Expense BusDev/Mktg 8666 BD/Mktg Staff Salaries 56,321.30 431,028.54 8667 BD/Mktg Staff Bonuses 8668 BD/Mktg Staff Payroll Tax 4,572.67 38,012.48 8669 BD/Mktg EE Benefits 5,447.24 42,305.72 8670 BD/Mktg Mileage & Car Allowance 3,220.47 28,317.04 8672 BD/Mktg Incentive Bonus 7,135.00 67,285.00 8673 BD/Mktg 401(k) Match 410.76 3,978.19 Total 8665 Payroll Expense BusDev/Mktg 77,107.44 610,926.97 8675 Payroll Expenses Admin Staff 8501 Auto Exp/Car Allowance Admin 651.24 5,935.66 8680 Staff Salaries 79,929.71 590,645.64 8684 Admin Staff Bonuses 2,247.01 17,579.09 8685 Payroll Taxes 5,032.78 48,225.17 8690 Employee Benefits 7,615.16 68,626.38 8692 Mileage Admin 189.54 2,690.11 8694 Admin 401(k) Match 487.70 5,915.31 Total 8675 Payroll Expenses Admin Staff 96,153.14 739,617.36 8681 Payroll Expenses Clinical Staff 8682 Clinical Staff Gross 66,380.07 517,415.73 8683 Clinical Staff Bonuses 2,326.15 19,424.71 8686 Clinical Staff Payroll Taxes 4,385.09 37,481.01 8691 Clinical Staff EE Benefits 7,110.87 54,914.35 8693 Clin Admin Auto Allowance 400.00 3,200.00 8695 Clin Admin 401(k) Match 128.56 2,300.19 8696 Clinical Staff Mileage 39.00 373.59 Total 8681 Payroll Expenses Clinical Staff 80,769.74 635,109.58 8698 Parent Salary Allocation 17,722.31 139,478.11 8699 Parent MSA 35,482.91 280,155.82 8700 Postage & Delivery 19.67 1,648.42 8720 Professional Fees 8725 Accounting/Bookkeeping 135.00 1,217.03 8726 Payroll Services 2,300.44 19,815.40 8730 Consulting 392.00 11,460.94 8731 HR Services 788.48 7,727.71 8735 Legal 4,995.40 24,289.00 Total 8720 Professional Fees 8,611.32 64,510.08 8750 Rent 8755 Building 14,699.39 106,340.73

PEOPLES HOME HEALTH INCOME STATEMENT AS OF AUGUST 31, 2017 Ordinary Income/Expense Income MTD YTD 8756 Conference Room/Facility 100.00 725.00 8758 Storage Unit 134.38 1,075.04 Total 8750 Rent 14,933.77 108,140.77 8775 Repairs and Maintenance 8785 Equipment 679.66 Total 8775 Repairs and Maintenance 679.66 8800 Software Support (EMR) 11,000.38 89,407.08 8802 Staff Recruitment 55.00 1,911.90 8804 Staff Retention 1,609.48 2,606.21 8810 Telephone 8815 Cellular/Pagers Office Staff 917.53 5,324.56 8816 Cellular/Pagers Clinical Staff 3,365.03 30,165.49 8820 Office/Cable/LD 1,116.23 8,474.77 Total 8810 Telephone 5,398.79 43,964.82 8830 Travel 8832 Hotel 169.60 317.98 Total 8830 Travel 169.60 317.98 8840 Uniforms (10.00) 1,036.62 8850 Utilities 2,754.72 15,100.20 8870 Employee Gifts & Goodwill 933.73 8875 Staff Meetings/ Parties 1,840.72 9900 Bad Debt Expense 12,505.84 140,046.72 Total Expense 399,320.17 3,077,084.95 Net Ordinary Income 173,543.90 1,499,714.96 Other Income/Expense Other Income 4150 Miscellaneous Income 538.74 4400 Interest Income 159.34 788.45 Total Other Income 159.34 1,327.19 Other Expense 8807 Legal Settlements 100.00 Total Other Expense 100.00 Net Other Income 159.34 1,227.19 Net Income 173,703.24 1,500,942.15

PEOPLES HOME HEALTH BALANCE SHEET AS OF AUGUST 31, 2017 Aug 2017 ASSETS Current Assets Checking/Savings 1110 Servis 1st Ops #1454 67,032 1125 BB&T Ops Acct #0652 689,705 1128 BB&T Reserve Acct #9832 750,510 Total Checking/Savings 1,507,247 Other Current Assets 1199 Petty Cash 400 1300 Accounts Receivable PMS 1301 Allowance for Bad Debt (96,658) 1302 Allowance for Pre Claim Review (40,000) 1300 Accounts Receivable PMS Other 1,583,181 Total 1300 Accounts Receivable PMS 1,446,523 8757 Security Deposit 3,050 Total Other Current Assets 1,449,973 Total Current Assets 2,957,221 Fixed Assets 1500 Furniture & Equipment 294,426 1520 Leasehold Improvements 29,537 1550 Accumulated Depreciation (295,110) Total Fixed Assets 28,853 Other Assets 1925 Intercompany Loan to CH3 839,000 1950 Intercompany Cov Hospice 588,829 Total Other Assets 1,427,829 TOTAL ASSETS 4,413,902 LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable 2000 Accounts Payable 82,383 Total Accounts Payable 82,383 Credit Cards 2016 Servis1st Credit Card (909) Total Credit Cards (909) Other Current Liabilities 2100 401K Deferrals Payable 73 2105 401(k) Match Liability 6,362 2110 125 EE 125 MFS (3,090) 2210 Wages Payable 400,142 2211 Bonus Payable 41,063 2213 PTO Accrual 223,734 Total Other Current Liabilities 668,283 Total Current Liabilities 749,756 Total Liabilities 749,756 Equity 3200 Partners' Equity 2,163,204 Net Income 1,500,942 Total Equity 3,664,146 TOTAL LIABILITIES & EQUITY 4,413,902

Covenant Health & Community Services, Inc. Income Statement & Balance Sheet August 31, 2017

Covenant Health & Community Services, Inc. Income Statement Fiscal Year 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 JAN FEB MAR APR MAY JUN JUL AUG AUG BUD VARIANCE YTD AUG YTD AUG BUD VARIANCE Revenues Other Revenues - 50 - - - 350 - - - - 400-400 Total Revenues - 50 - - - 350 - - - - 400-400 Expenses: Salaries 157,000 145,820 169,325 172,230 158,261 151,039 132,376 156,983 149,460 7,523 1,243,036 1,151,965 91,071 Benefits 22,206 18,915 21,822 29,049 15,490 16,427 14,123 12,790 18,551 (5,761) 150,821 163,802 (12,981) Other Expenses (19) - (121) (107) 29 - - - - - (219) - (219) Bank Service Fees - - - - - 162 5 5-5 172-172 Office Supplies - - - - - - - - - - - - - Marketing - - - - - - - - - - - - - Printing Exp - - - - - - - - - - - - - Amortization Loan Orig Fees 375 375 375 375 375 375 375 375-375 3,000-3,000 Legal 32,946 30,055 32,827 (19,581) 13,790 25,443 32,647 25,325 21,478 3,848 173,452 171,821 1,631 Consulting 34,815 10,204 12,812 85,614 (2,213) 14,459 35,534 315 28,903 (28,587) 191,541 231,221 (39,680) Start Up Costs - - - - - - - - - - - - - Operating License & Fees - - - - - - - - - - - - - Promotional Itmes - - - - - - - - - - - - - Subscriptions - - - - - - 1,500 - - - 1,500-1,500 Allocation from Parent (145,387) (139,218) (153,490) (146,242) (150,498) (143,459) (144,362) (149,838) (149,838) - (1,172,494) (1,172,494) (0) Total Expenses 101,936 66,151 83,551 121,338 35,233 64,447 72,197 45,955 68,553 (22,598) 590,808 546,314 44,494 Operating Margin (101,936) (66,101) (83,551) (121,338) (35,233) (64,097) (72,197) (45,955) (68,553) 22,598 (590,408) (546,314) (44,094) Other Non-Operating Revenues - - - - - - - - - - - - - Other Non-Operating Expenses 5 5 77 5 5 (97) - - - - - - - Total Non-Operating Income/(Expense) (5) (5) (77) (5) (5) 97 - - - - - - - Total Revenues - 50 - - - 350 - - - - 400-400 Total Expenses 101,941 66,156 83,628 121,343 35,238 64,350 72,197 45,955 68,553 (22,598) 590,808 546,314 44,494 Excess of Revenue over Expenses (101,941) (66,106) (83,628) (121,343) (35,238) (64,000) (72,197) (45,955) (68,553) 22,598 (590,408) (546,314) (44,094) Turnkey Visits 0 1 0 0 0 3 0 0 4

2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Assets Current Assets Operating Cash 9,966 9,966 23,025 3,900 0 0 0 25,533 BB&T Analyzed Checking 9,960 9,955 9,950 9,945 9,940 9,935 9,930 9,915 Operating PayPal - - - - - - - - Total Cash & Equivalents 19,926 19,921 32,975 13,845 9,940 9,935 9,930 35,448 Misc Receivable - - - - - - - - Prepaid Other 7,249 6,934 6,619 6,304 5,988 5,673 5,358 5,043 Prepaid Supplies - - - - - - - - Total Current Assets 27,175 26,854 39,594 20,148 15,928 15,608 15,288 40,491 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 Total Assets 37,675 36,979 49,344 29,523 24,928 24,233 23,538 48,366 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) Accrued Payroll 110,205 142,431 245,781 287,129 308,348 270,418 283,604 324,733 Total Current Liabilities 135,205 167,431 211,281 300,304 274,129 223,199 273,604 316,733 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 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 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) Due to/from: Foundation (7,338) (14,376) (30,100) (22,532) (23,941) (40,436) (25,523) (25,471) Due to/from: Covenant @ Home (6,817) (13,337) (20,532) (27,372) (34,452) (41,219) (48,032) (55,096) Due to/from: CAS (7,202) (14,120) (21,691) (28,912) (36,270) (43,262) (50,289) (57,574) Due to/from: Palliative (7,204) (14,102) (21,689) (28,916) (36,339) (43,414) (50,535) (57,914) Due to/from: Memory Care (11,544) (22,600) (34,733) (46,262) (58,130) (69,463) (80,869) (92,699) Due to/from: Peoples (17,372) (34,028) (52,337) (84,248) (102,112) (119,101) (136,189) (153,912) 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 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 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) Current Year Net Income/(Loss) (101,941) (168,047) (251,675) (373,018) (408,256) (472,257) (544,454) (590,408) 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) Total Liabilities & Net Assets 37,675 36,979 49,344 29,523 24,928 24,233 23,538 48,366

Covenant Hospice Foundation, Inc. Income Statement & Balance Sheet August 31, 2017

Covenant Hospice Foundation, Inc. Financial Analysis August 31, 2017 For the month, the foundation had an increase in total net assets of $1,707 bringing total net assets of the foundation to $4,970,873 and total assets to $5,098,856 at 8/31/17. For the year, the foundation has a increase in total net assets of $449,720. Operating Activities: For the month, operating expenses totaled $7,737 and consisted of: $ 255 Bank and Credit Card Service fees $ 7,482 Salary alloc of from CHCS The Foundation recognized total revenues of $46,159 which consisted of the following: $ 13,424 Memorials & Contributions/Unsolicited $ 25,000 Major Gifts $ 867 Fund Raising/Event Income $ 1,386 Direct Mail $ 3,024 United Way/CFC $ 60 Released from Restriction $ 2,398 Investment Earnings Childrens, Panama City, General, Marianna For the year, the Foundation has recognized total revenues of $758,196. Non-Operating Expenses totaled $52,435 and consisted of the following $ 7,672 Other Direct Costs $ -13 Fundraising expense $ 35,457 Payroll $ 6,583 Benefits $ 2,377 Goldenberg fund usage $ 60 Nathaniel's Lemonade Stand usage $ 300 Other Program Expense - Children's For the year, Foundation Non-Operating expenses are $636,994. Composition of investment portfolio: Foundation portfolio, per balance sheet 4,843,841 Charity Annuity Reserve required in FL, per balance sheet 19,377 Total 4,863,218 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.

COVENANT HOSPICE FOUNDATION, INC. INCOME STATEMENT FOR AUGUST 31, 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 % YTD AUG JAN FEB MAR APR MAY JUN JUL AUG AUG BUDGET VARIANCE VARIANCE YTD AUG BUDGET VARIANCE VARIANCE OPERATING REVENUES - - - - 0.0% - - - 0.0% GENERAL & ADMINISTRATIVE EXPENSES Salary Alloc From CHCS 7,338 7,038 7,665 7,232 7,472 7,157 7,199 7,482 7,482-0.0% 58,582 58,582-0.0% Bank/Credit Card Service Fees 2,084 1,592 1,706 510 255-255 0.0% 6,148-6,148 0.0% TOTAL GENERAL & ADMINISTRATIVE EXPENSES 7,338 7,038 7,665 9,316 9,064 8,863 7,708 7,737 7,482 255 3.41% 64,729 58,582 6,148 10.5% OPERATING MARGIN (7,338) (7,038) (7,665) (9,316) (9,064) (8,863) (7,708) (7,737) (7,482) (255) 3.41% (64,729) (58,582) (6,148) 10.5% NON-OPERATING REVENUES Memorials/Contributions/Unsolicited 11,287 18,656 13,080 15,590 13,130 16,016 14,991 13,424 14,850 (1,426) 9.6% 116,174 124,050 (7,876) -6.3% Major Gifts 1,359 886 (2,245) 5,000 - - 45,163 25,000 40,000 (15,000) 37.5% 75,163 170,000 (94,837) -55.8% Planned Giving - 45,784 50,940 - - 476 - - - -100.0% 97,199-97,199 100.0% Fund Raising/Event Income 5,344 1,100 13,929 ####### # 15,824 83,292 8,878 867-867 -100.0% 350,389 236,500 113,889 48.2% United Way/CFC 5,167 5,167 6,474 3,024 3,024 10,024 3,024 3,024 5,167 (2,143) -41.5% 38,926 53,834 (14,907) -27.7% Grants 30 65 (95) - - - - - - - 0.0% - - - 0.0% Direct Mail 220 280 2,524 821 1,848 4,574 2,076 1,386-1,386 0.0% 13,728-13,728 0.0% Released from Restriction 1,506 1,297-12,950 750 1,500-60 - 60 100.0% 18,063-18,063 0.0% Investment Earnings 3,215 2,370 15,378 2,532 2,425-20,235 2,398 2,556 (158) -6.2% 48,554 46,343 2,211 4.8% TOTAL NON-OPERATING REVENUES 28,127 29,822 94,828 312,010 37,000 115,406 94,842 46,159 62,572 (16,413) -26.23% 758,196 630,727 127,470 20.2% NON-OPERATING EXPENSES Other Direct 2,456 4,143 3,757 4,860 18,186 7,195 5,625 7,672 11,159 (3,487) -31.3% 53,894 93,922 (40,028) -42.6% Program Expenses 1,300 6,516 592 605 5,890 5,549 1,557 2,737-2,737 0.0% 24,746-24,746 0.0% Realized Gains/(Losses) 14,017-12,200 - (6,006) - (11,336) - - - 100.0% 8,874-8,874 0.0% Investment & Advisory Services 3,608 - - 3,744 - - 3,833 - - - 100.0% 11,185 10,344 841 8.1% Fundraising Expense/Cost of Direct Benefit - - - 77,254 12,200 62,796 3,091 (13) - (13) 100.0% 155,328 98,500 56,828 57.7% Payroll 41,687 33,958 51,568 51,414 48,454 27,091 35,241 35,457 55,992 (20,535) -36.7% 324,871 432,285 (107,415) -24.8% Benefits 7,157 6,540 8,341 8,859 9,649 4,345 6,623 6,583 9,174 (2,591) -28.2% 58,096 79,568 (21,472) -27.0% TOTAL EXPENSES: 70,225 51,156 76,458 146,736 88,372 106,976 44,635 52,435 76,325 (23,890) -31.3% 636,994 714,620 (77,625) -10.9% NET NON-OPERATING REVENUE (LOSS) (42,098) (21,335) 18,370 165,274 (51,372) 8,430 50,208 (6,276) (13,752) 7,477-54.4% 121,202 (83,893) 205,095-244.5% EXCESS OF REVENUE OVER EXPENSES (49,436) (28,372) 10,705 155,959 (60,437) (433) 42,499 (14,013) (21,234) 7,221-34.0% 56,472 (142,475) 198,947 139.6% MARGIN % -175.8% -95.1% 11.3% 50.0% -163.3% -0.4% 44.8% -30.4% -33.9% 3.6% 7.4% -22.6% 30.0% OTHER CHANGES IN UNRESTRICTED NET ASSETS Unrealized gain (loss) on investments 83,645 104,056 18,930 49,591 50,901-73,866 14,803-14,803 100.0% 395,792-395,792 100.0% INCREASE IN UNRESTRICTED NET ASSETS 34,209 75,684 29,635 205,549 (9,536) (433) 116,365 790 (21,234) 22,024-103.7% 452,264 (142,475) 594,739-417.4% Changes in Temporarily Restricted Net Assets Contributions 343 8,014 1,505 445 430 3,162 645 976-976 100.0% 15,519-15,519 100.0% 14