Covenant Care July 2017 Consolidated Financial Statements HIGHLIGHTS

Covenant Care July 2017 Consolidated Financial Statements HIGHLIGHTS SUMMARY OF JULY FINANCIAL ACTIVITY: Covenant Care, consolidated results: --July: Operating Margin of $99,633; Net Income of $252,684 --YTD: Operating Margin of $647,610; Net Income of $1,293,102 Covenant Hospice realized a July Operating Margin of $116,605; net non-operating revenue of $84,736 produced a Net Income ( Excess of Revenues over Expenses ) of $201,341. YTD Operating Margin is $571,038 and YTD Net Income is $951,719. Total July admissions: 422 end-of-life admissions; 443 homebound admissions; 865 total admissions. (June total - 819) Covenant Hospice key statistics: --Average Daily Census: 774.5 (July) vs. 778.7 (YTD) --Average Length of Stay: 56.9 (July) vs. 54.0 (YTD) --Admissions: 422 (July) vs 3,055 (YTD) (Average per month 436) Peoples Home Health, achieved a positive Operating Margin of $151,036. YTD Operating Margin is $1,173,920. (Peoples has limited few non-operating revenues or expenses.) Peoples Home Health key statistics: --Medicare & Medicare-like episodes: 443 (July) vs. 2,976 (YTD) --Home health visits: 6,626 (July) vs. 49,354 (YTD) --Average Medicare episode payment: $2,388 vs. $2,347 (2017 budget) --YTD 30-day readmissions: 19% Covenant Health & Community Services had a July operating loss of ($72,197) and a YTD operating loss of ($544,454). 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 $42,499 in July. YTD Net Income is $70,485. 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 COVENANT CARE PROJECTED PROJECTED PROJECTED MAY JUN JUL COMBINED STATEMENT OF OPERATIONS AUG SEPT OCT 77,764 73,853 99,633 Consolidated Operating Margin 4,778 17,767 47,930 Net Income 38,338 175,765 201,341 Hospice 33,588 45,485 78,076 231,688 151,068 152,763 Peoples 153,060 156,121 154,591 (230,385) (129,805) (101,420) Other Companies (103,449) (105,518) (107,628) 39,642 197,028 252,684 Total Net income 83,199 96,089 125,039

COVENANT CARE COMBINED STATEMENT OF OPERATIONS JULY 31, 2017 HOSPICE FOUNDATION CAS MEMORY CARE CHCS CHHH PALLIATIVE CAH PEOPLES ELIMINATIONS COMBINED BUDGET VARIANCE % VARIANCE NET PATIENT/FAMILY CARE/PROGRAM REVENUE 4,417,624-1,295-1,153 5,238 1,039,750 5,465,059 6,476,407 (1,011,348) -15.6% TOTAL PATIENT/FAMILY CARE EXPENSES 3,172,346 11,511-8,981 4,214 512,673-3,709,726 4,480,422 (770,697) -17.2% CONTRIBUTIONS FROM OPERATIONS 1,245,278 - (10,216) - - - (7,828) 1,024 527,076-1,755,334 1,995,985 (240,651) -12.1% CONTRIBUTION % 28.2% 0.0% 50.7% 32.1% 30.8% 1.3% GENERAL & ADMINISTRATIVE EXPENSES Other Direct 570,609 510 1,465 11,226 70,061 16,688 98 1,680 113,559 (1,479) 784,416 945,797 (161,382) -17.1% Payroll 384,833 - - 132,376 - - 8,511 205,086-730,805 887,202 (156,396) -17.6% Benefits 85,968 - - 14,123 - - 1,559 38,830-140,479 165,429 (24,949) -15.1% Allocation from CHCS 87,263 7,199 7,027 11,405 (144,362) 445 7,121 6,814 17,088 - - - - 0.0% TOTAL G&A EXPENSES 1,128,673 7,708 8,492 22,631 72,197 17,133 7,219 18,563 374,563 (1,479) 1,655,700 1,998,427 (342,727) -17.1% OPERATING MARGIN 116,605 (7,708) (18,708) (22,631) (72,197) (17,133) (15,047) (17,539) 152,513 1,479 99,633 (2,443) 102,076-4179.0% OPERATING MARGIN % 2.6% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 14.7% 1.8% 0.0% 1.9% NON-OPERATING REVENUES Contributions and fundraising - 74,607 2,402 - - - 77,009 63,571 13,438 21.1% Other Non-Operating Revenues 107,439 31,571 15 35,698 250 (1,479) 173,494 27,731 145,763 525.6% Development/Fundraising Expense (169) (52,138) - - (52,307) (74,960) 22,653-30.2% Other Non-Operating Expense (22,533) (3,833) - - (18,778) - - - - (45,145) (38,152) (6,993) 18.3% Contributions to Affiliates - - - - - - 0.0% NET NON-OPERATING REVENUE 84,736 50,208 2,416 - - 16,920 - - 250 (1,479) 153,051 (21,810) 174,861-801.7% EXCESS OF REVENUE OVER EXPENSES 201,341 42,499 (16,292) (22,631) (72,197) (213) (15,047) (17,539) 152,763-252,684 (24,253) 276,937-1141.9% 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 JULY 31, 2017 HOSPICE FOUNDATION CAS MEMORY CARE CHCS CHHH PALLIATIVE CAH PEOPLES ELIMINATIONS COMBINED BUDGET VARIANCE % VARIANCE NET PATIENT/FAMILY CARE/PROGRAM REVENUE 31,774,599-12,663 400 27,838 72,142 7,713,324 39,600,967 44,387,037 (4,786,070) -10.8% TOTAL PATIENT/FAMILY CARE EXPENSES 22,713,094 81,718 14,730 59,480 56,401 3,709,388-26,634,810 30,829,692 (4,194,882) -13.6% CONTRIBUTIONS FROM OPERATIONS 9,061,506 - (69,055) (14,730) 400 - (31,642) 15,741 4,003,936-12,966,157 13,557,345 (591,188) -4.4% CONTRIBUTION % 28.5% 0.0% 51.9% 32.7% 30.5% 2.2% GENERAL & ADMINISTRATIVE EXPENSES Other Direct 4,356,272 5,892 13,647 55,298 343,425 125,199 5,359 15,613 826,991 (10,354) 5,737,341 6,219,594 (482,252) -7.8% Payroll 2,922,360-1,086,053 39,000 62,868 1,462,220-5,572,502 6,174,955 (602,454) -9.8% Benefits 594,893-138,032-9,211 266,568-1,008,704 1,143,908 (135,205) -11.8% Allocation from CHCS 616,944 51,100 50,289 80,869 (1,022,656) 3,131 50,535 48,032 121,756 - (0) - (0) 0.0% TOTAL G&A EXPENSES 8,490,468 56,992 63,936 136,167 544,854 167,329 55,894 135,725 2,677,535 (10,354) 12,318,547 13,538,457 (1,219,911) -9.0% OPERATING MARGIN 571,038 (56,992) (132,991) (150,897) (544,454) (167,329) (87,536) (119,984) 1,326,401 10,354 647,610 18,888 628,722 3328.7% OPERATING MARGIN % 1.8% 0.0% 0.0% 0.0% 0.0% 0.0% -314.4% 17.2% 1.6% 0.0% 1.6% NON-OPERATING REVENUES Contributions and fundraising 560 665,881 24,647 1,999 - - 693,087 474,246 218,842 46.1% Other Non-Operating Revenues 478,272 37,282 104-244,292 1,168 (10,354) 750,763 290,388 460,375 158.5% Development/Fundraising Expense (1,223) (564,500) (4,169) - (569,892) (560,711) (9,180) 1.6% Other Non-Operating Expense (96,928) (11,185) - - (120,253) - - (100) - (228,466) (200,394) (28,072) 14.0% Contributions to Affiliates - - - - - - 0.0% NET NON-OPERATING REVENUE 380,681 127,478 20,582 1,999-124,038 - - 1,068 (10,354) 645,492 3,528 641,964 18194.6% EXCESS OF REVENUE OVER EXPENSES 951,719 70,485 (112,409) (148,898) (544,454) (43,291) (87,536) (119,984) 1,327,469-1,293,102 22,416 1,270,686 5668.6% 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 JULY 31, 2017 HOSPICE FOUNDATION CAS MEMORY CARE CHCS CHHH PALLIATIVE CAH PEOPLES COMBINED ASSETS CASH & EQUIVALENTS 1,908,279 214,082 164,844 21,559 9,930 235,533 20,177 19,471 1,354,202 3,948,077 INVESTMENTS - FIXED 44,907 4,829,163 4,874,069 INVESTMENTS - BALANCED 16,186,235 19,315 16,205,550 TOTAL INVESTMENTS 16,231,142 4,848,477-21,079,619 TOTAL CASH & INVESTMENTS 18,139,422 5,062,560 164,844 21,559 9,930 235,533 20,177 19,471 1,354,202 25,027,697 GROSS ACCOUNTS RECEIVABLES 11,986,581 2,815 90,891 143 1,574,984 13,655,415 RECEIVABLE ALLOWANCES (1,118,839) (64,627) (124,152) (1,307,618) NET ACCOUNTS RECEIVABLES 10,867,741-2,815 - - - 26,264 143 1,450,832 12,347,796 GRANTS / PLEDGES RECEIVABLE - 3,246 3,246 CRUT RECEIVABLE 2,481,325 2,481,325 MISCELLANEOUS RECEIVABLE 118,505 29,325 25 - - 25,560 173,415 DUE TO/FROM CONSOLIDATED 3,809,446 (51,663) (567,121) (156,946) 6,541,624 (10,520,019) (193,113) (185,250) 1,323,041 0 PREPAID EXPENSE 826,197-291 5,358 - (408) 831,438 INVENTORY 171,871 171,871 CASH VALUE ON LIFE INSURANCE 1,048,650 1,048,650 TOTAL CURRENT ASSETS 37,463,158 5,043,468 (399,146) (135,386) 6,556,912 (10,284,487) (146,672) (166,044) 4,153,635 42,085,439 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 8,985,538 2,000 293,641 9,281,178 CONSTRUCTION IN PROGRESS 2,234,526 2,234,526 28,023,953 - - 2,000 - - - 323,178 28,349,130 LESS ACCUMULATED DEPRECIATION (12,375,334) (293,780) (12,669,114) NET PROPERTY & EQUIPMENT 15,648,618 - - 2,000 - - - - 29,398 15,680,016 INVESTMENT - PEOPLES 2,163,204 - CON COSTS MOBILE 127,023 127,023 CON COSTS TALLAHASSEE 264,029 264,029 NO COMPETE - BREWTON 61,112 61,112 GOODWILL 1,501 1,501 GOODWILL - PEOPLES 9,073,350 9,073,350 LOAN ORIGINATION FEES 8,250 8,250 TOTAL INTANGIBLE ASSETS 453,664 - - - 8,250 11,236,554 - - - 9,535,264 TOTAL ASSETS 53,565,441 5,043,468 (399,146) (133,386) 6,565,162 952,067 (146,672) (166,044) 4,183,033 67,300,719 LIABILITIES & FUND BALANCE CURRENT LIABILITIES CURRENT PORTION L/T DEBT 448,784 448,784 ACCOUNTS PAYABLE 4,959,351 2,715 (4) (10,000) 19,160-28 88,998 5,060,247 ADVANCES AGAINST ACCOUNTS RECEIVABLE 5,197,438 5,197,438 DEFERRED REVENUE - (0) 1,787 1,787 ACCRUED SALARY & WAGES 2,434,148 57,282 283,604 14,418 603,363 3,392,815 TOTAL CURRENT LIABILITIES 13,039,721 59,997 1,783-273,604 19,160-14,446 692,360 14,101,070 LONG-TERM LIABILITIES NOTES PAYABLE - - MORTGAGE PAYABLE 6,077,597 6,077,597 OTHER LONG TERM LOANS 439,423 8,900,000 9,339,423 LESS CURRENT PORTION (448,784) (448,784) LONG-TERM CHARITABLE ANNUITIES - 14,305 14,305 INTEREST RATE SWAP PAYABLE - - TOTAL LONG-TERM LIABILITIES 6,068,236 14,305 - - 8,900,000 - - - - 14,982,540 TOTAL LIABILITIES 19,107,956 74,302 1,783-9,173,604 19,160-14,446 692,360 29,083,611 NET ASSETS: UNRESTRICTED 31,964,959 4,125,543 (472,022) (150,498) (2,608,442) 932,908 (146,672) (180,490) 3,490,672 34,792,755 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 48,604-48,604 BOARD DESIGNATED HERO'S WISH 18,956-18,956 TEMPORARILY RESTRICTED - EVENTS 2,500 2,500 TEMPORARILY RESTRICTED - COVENANT SUPPORT FND 4,925-4,925 TEMPORARILY RESTRICTED - NATHANIEL'S LEMONADE 15,996-15,996 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 34,457,484 4,969,166 (400,928) (133,386) (2,608,442) 932,908 (146,672) (180,490) 3,490,672 38,217,109 TOTAL LIABILITIES & NET ASSETS 53,565,441 5,043,468 (399,145) (133,386) 6,565,162 952,067 (146,672) (166,044) 4,183,033 67,300,720

Financial Report Month Ended 07/31/2017

Executive Summary Excess Revenue over Expenses was $201,901 for the month versus a $43,823 budget. YTD Excess Revenues over Expenses was $951,719 versus a budget of $322,958 and compares to a prior YTD of $512,092. Of the Excess Revenue over Expenses, $116,605 was in Operating Margin and $85,296 was in Net Non-Operating Income. Net non-operating income was $85,296 for the month, favorable to a budget of $9,161. YTD net non-operating income was $380,681, favorable to a budget of $187,653. Reflected in the Statement of Changes in Net Assets is the change in unrealized gain from investments of $144,551 for the month and $889,181 YTD. With this, we had an increase in Net Assets YTD of $1,840,339. Census averaged 774.5 for the month versus a budget of 836.9. YTD census averaged 778.7 versus a budget of 831.3 and compares to a prior YTD census of 861.5. Referrals for the month totaled 592 and admissions were 422 compared to a budget of 447, for a monthly conversion rate of 71.3%. YTD referrals and admissions were 4,265 and 3,055 respectively, a conversion rate of 71.6%. Operating Margin The operating margin of 2.6% for the month was favorable to the budget of.6%. YTD operating margin was 1.8% versus a budget of.4%. Prior year was 0.9%. Operating income for the month was $116,605, favorable to the budget of $34,662. YTD operating income was $571,038, favorable to a budget of $135,305 and compares to a prior year of $320,661. Net revenue for the month was $4,417,624, unfavorable to a budget of $5,415,632. YTD net revenue was $31,774,599, unfavorable to a budget of $36,601,780 and compares to a prior year of $34,715,897. Total patient care costs per day for the month, excluding inpatient costs and room & board expenses which are a function of patient mix, were $97.58, favorable to a budget of $109.05. YTD patient care costs excluding inpatient costs and room and board expenses were $100.51, favorable to a budget of $109.29. G&A expenses of 25.6% of revenue were favorable to the budget of 26.8%. YTD G&A expenses of 26.7% of revenue were unfavorable to the budget 26.6% and compares to prior year of 24.8%.

Non-Operating Margin Net non-operating income was $85,296 for the month, favorable to budget of $9,161. YTD net non-operating income was $380,681, favorable to a budget of $187,653. Reasons are described below. Other non-operating revenue, which includes investment income, was $107,439 for the month compared to a budget of $28,923, and YTD was $478,272 compared to a budget of $273,392. Other non-operating expense for the month was $22,533 compared to a budget of $19,590. This category includes interest expense and investment expenses. YTD was $96,928 compared to a budget of $84,560. 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 $144,551 and YTD was $889,181. With the above, Net Assets for the month increased $345,892 compared to a budgeted increase of $43,823. YTD Net Assets increased $1,840,339 and compares to a budgeted increase of $322,958. Balance Sheet Cash and short-term investments was $18,139,422 at month end, a supply of 130 days of operating expenses compared to 119 days at this time last year. Days in Accounts Payable was at 54 days. Days in Accounts Receivable was 74 days. Financial Covenants for Bond Agreement (Covenant Hospice) are met: Ratio of Maximum Debt to Tangible Net Worth was.56:1 at July 31, 2017, favorable to Bond Covenant not to exceed 2.5:1. Tangible Net Worth was $34,003,820 at July 31, 2017, favorable to minimum per Bond Covenant of $6,500,000. Fixed Charge Coverage at July 31, 2017 was 2.2:1, favorable to Bond Covenant of 1.1:1.

COVENANT HOSPICE, INC. CONSOLIDATED 2017 2017 MONTH % INCOME STATEMENT YEAR TO YEAR TO % PRIOR YEAR JUN JUL BUDGET VARIANCE VARIANCE FY 2017 DATE DATE BUDGET VARIANCE VARIANCE TO DATE PATIENT/FAMILY CARE REVENUE 3,160,099 3,329,365 3,468,333 (138,968) -4.01% Routine Home Care 22,593,981 23,615,548 (1,021,567) -4.33% 24,216,726 725,432 677,375 1,022,092 (344,717) -33.73% Inpatient Care 5,260,708 6,671,061 (1,410,353) -21.14% 5,167,083 12,964 10,555 136,997 (126,442) -92.30% Continuous Care 193,516 932,592 (739,076) -79.25% 837,903 13,893 15,409 19,119 (3,710) -19.40% Respite Care 97,812 134,634 (36,822) -27.35% 78,611 730,545 695,135 943,534 (248,399) -26.33% Room & Board 5,434,788 6,429,914 (995,126) -15.48% 5,763,620 8,545 8,193 9,125 (932) -10.22% Consulting Physician 69,223 61,852 7,371 11.92% 78,525 36,922 29,195 103,287 (74,091) -71.73% Primary Physician 236,629 683,726 (447,096) -65.39% 580,029 82,171 82,510 1,067 81,444 7635.31% Other Care 294,745 7,467 287,278 3847.47% 7,522 4,770,571 4,847,738 5,703,553 (855,815) -15.00% TOTAL PATIENT/FAMILY CARE REVENUE 34,181,403 38,536,792 (4,355,390) -11.30% 36,730,020 99,815 154,889 107,259 47,630 44.41% Charity/Unfunded Care 1,049,120 719,440 329,680 45.82% 814,003 205,781 275,224 180,663 94,562 52.34% Contractual Adjustments 1,357,683 1,215,572 142,111 11.69% 1,200,121 305,596 430,114 287,921 142,192 49.39% TOTAL DEDUCTIONS FROM REVENUE 2,406,803 1,935,012 471,791 24.38% 2,014,123 4,464,975 4,417,624 5,415,632 (998,008) -18.43% NET PATIENT/FAMILY CARE REVENUE 31,774,599 36,601,780 (4,827,181) -13.19% 34,715,897 OPERATING EXPENSES PATIENT/FAMILY CARE EXPENSES 4,304 (2,004) 1,608 (3,612) -224.57% Other Direct 23,581 25,658 (2,077) -8.10% 25,805 1,482,443 1,448,818 1,752,909 (304,091) -17.35% Payroll 10,072,889 11,954,516 (1,881,627) -15.74% 12,202,469 328,515 324,995 382,065 (57,070) -14.94% Benefits 2,339,983 2,562,912 (222,929) -8.70% 2,388,459 516,662 479,012 562,357 (83,346) -14.82% Patient Expenses 3,500,440 3,812,900 (312,459) -8.19% 3,603,648 89,793 91,821 130,202 (38,381) -29.48% Mileage/Fleet Car 655,431 904,754 (249,323) -27.56% 785,979 2,421,717 2,342,642 2,829,141 (486,499) -17.20% TOTAL CORE PATIENT/FAMILY CARE EXPENSES 16,592,325 19,260,740 (2,668,415) -13.85% 19,006,359 59,212 43,554 111,752 (68,198) -61.03% Inpatient Expenses 420,274 760,712 (340,439) -44.75% 743,965 766,610 778,758 978,283 (199,525) -20.40% Room & Board Expenses 5,617,303 6,659,432 (1,042,128) -15.65% 5,978,660 11,930 7,392 9,125 (1,734) -19.00% Consulting Physician Expenses 83,192 61,852 21,340 34.50% 60,226 837,752 829,704 1,099,161 (269,457) -24.51% TOTAL CONTRACTED PATIENT /FAMILY CARE EXPENSES 6,120,769 7,481,996 (1,361,227) -18.19% 6,782,852 3,259,468 3,172,346 3,928,302 (755,956) -19.24% TOTAL PATIENT/FAMILY CARE EXPENSES 22,713,094 26,742,736 (4,029,642) -15.07% 25,789,211 1,205,506 1,245,278 1,487,329 (242,052) -16.27% CONTRIBUTIONS FROM OPERATIONS 9,061,506 9,859,044 (797,538) -8.09% 8,926,686 27.00% 28.19% 27.46% 0.73% CONTRIBUTION % 28.52% 26.94% 1.58% 25.71% GENERAL & ADMINISTRATIVE EXPENSES 620,891 570,609 779,430 (208,821) -26.79% Other Direct 4,356,272 5,055,726 (699,455) -13.83% 5,141,450 335,891 384,833 480,782 (95,949) -19.96% Payroll 2,922,360 3,336,954 (414,594) -12.42% 2,931,518 72,533 85,968 105,193 (19,225) -18.28% Benefits 594,893 714,115 (119,222) -16.70% 533,056 86,701 87,263 87,263 0 0.00% Alloc to/from Other Subsidiaries 616,944 616,944 0 0.00% 0 1,116,017 1,128,673 1,452,668 (323,995) -22.30% TOTAL G&A EXPENSES 8,490,468 9,723,739 (1,233,271) -12.68% 8,606,025 24.99% 25.55% 26.82% -1.27% % OF NET PATIENT/FAMILY CARE REVENUE 26.72% 26.57% 0.15% 24.79% 4,375,485 4,301,019 5,380,970 (1,079,951) -20.07% TOTAL OPERATING EXPENSES 31,203,562 36,466,475 (5,262,913) -14.43% 34,395,235 89,490 116,605 34,662 81,943 236.41% OPERATING MARGIN 571,038 135,305 435,732 322.04% 320,661 2.00% 2.64% 0.64% 2.00% OPERATING MARGIN % 1.80% 0.37% 1.43% 0.92% NON-OPERATING REVENUES 0 0 0 0 100.00% Contributions/Unsolicited 0 0 0 100.00% 106,141 0 0 0 0 100.00% Planned Giving/Solicited - 0 0 100.00% 121,217 0 0 0 0 100.00% Foundation Support-Fund Raising/Event Income 0 0 0 100.00% 231,838 0 0 0 0 100.00% United Way/CFC 0 0 0 100.00% 53,506 0 560 0 560 100.00% Grants 560 0 560 100.00% 14,260 0 560 0 560 100.00% TOTAL NON-OPERATING REVENUES 560 0 560 100.00% 526,963 NON-OPERATING EXPENSES 169 169 172 (3) -1.88% Other Direct 1,223 1,179 44 3.74% 108,814 0 0 0 0 100.00% Fundraising/Event Expense 0 0 0 100.00% 59,961 0 0 0 0 100.00% Payroll 0 0 0 100.00% 392,850 0 0 0 0 100.00% Benefits - 0 0 100.00% 86,363 169 169 172 (3) -1.88% TOTAL NON-OPERATING EXPENSES 1,223 1,179 44 3.74% 647,988 (169) 391 (172) 563-326.76% NET NON-OPERATING REVENUE (LOSS) (663) (1,179) 516-43.77% (121,025) 101,880 107,439 28,923 78,516 271.47% OTHER NON-OPERATING REVENUES 478,272 273,392 204,880 74.94% 555,469 15,436 22,533 19,590 2,944 15.03% OTHER NON-OPERATING EXPENSES 96,928 84,560 12,368 14.63% 243,013 86,275 85,296 9,161 76,135 831.08% NON OPERATING INCOME 380,681 187,653 193,028 102.86% 191,431 4,566,854 4,525,623 5,444,555 (918,932) -16.88% TOTAL REVENUES 32,253,431 36,875,172 (4,621,741) -12.53% 35,798,328 4,391,090 4,323,722 5,400,732 (1,077,010) -19.94% TOTAL EXPENSES 31,301,712 36,552,213 (5,250,501) -14.36% 35,286,236 175,765 201,901 43,823 158,079 360.72% EXCESS OF REVENUE OVER EXPENSES 951,719 322,958 628,760 194.69% 512,092 3.85% 4.46% 0.80% 3.66% MARGIN % 2.95% 0.88% 2.07% 1.43% 23,305 24,008 25,944 (1,936) -7.46% PATIENT DAYS 165,083 176,241 (11,158) -6.33% 183,500 776.8 774.5 836.9 (62) AVERAGE DAILY CENSUS 778.7 831.3 (53) 861.5 55.0 56.9 58.0 (1) AVERAGE LENGTH OF STAY 54.0 58.9 (4.9) 60.7 424 422 447 (25) ADMISSIONS 3,055 2,993 62 3,008 620 592 REFERRALS 4,265 4,123 68.4% 71.3% CONVERSION RATIO 71.6% 73.0% 336 336 360 (25) FTE's - CLINICAL 375 70 70 70 0 FTE's - G&A 64 4 4 9 (5) FTE's NON-OP 8 410 410 439 (29) FTE's - TOTAL 447 $429.11 $492.92 $99.94 $392.99 NET INCOME PER FTE $1,144.98 1.90 1.89 1.91-0.02 ADC/FTE'S 1.93

COVENANT HOSPICE, INC. CONSOLIDATED 2017 2017 MONTH % STATEMENT OF CHANGES IN NET ASSETS YEAR TO YEAR TO % PRIOR YEAR JUN JUL BUDGET VARIANCE VARIANCE FY 2017 DATE DATE BUDGET VARIANCE VARIANCE TO DATE 175,765 201,901 43,823 158,079 360.72% EXCESS OF REVENUE OVER EXPENSES 951,719 322,958 628,760 194.69% 512,092 OTHER CHANGES IN UNRESTRICTED NET ASSETS 0 144,551 0 144,551 100.00% Change in net unrealized gain on other than trading securities 889,181 0 889,181 100.00% 656,058 175,765 346,452 43,823 302,630 690.58% INCREASE IN UNRESTRICTED NET ASSETS 1,840,899 322,958 1,517,941 470.01% 1,168,150 CHANGES IN TEMPORARILY RESTRICTED NET ASSETS 0 0 0 0 100.00% Contributions 0 0 0 100.00% 3,990 0 (560) 0 (560) 100.00% Net assets released from restrictions (560) 0 (560) 100.00% (690) 0 (560) 0 (560) 100.00% INCREASE/(DECREASE) IN TEMPORARILY RESTRICTED NET ASSETS (560) 0 (560) 100.00% 3,300 175,765 345,892 43,823 302,070 689.30% INCREASE (DECREASE) IN NET ASSETS 1,840,339 322,958 1,517,381 469.84% 1,171,450

COVENANT HOSPICE, INC. BALANCE SHEET FOR JULY 31, 2017 BALANCE BALANCE BALANCE NET CHANGE NET CHANGE 07/31/2017 06/30/2017 12/31/2016 DURING MONTH DURING YEAR ASSETS CASH & EQUIVALENTS 1,908,279 2,472,452 1,346,241 (564,173) 562,039 INVESTMENTS - FIXED 44,907 91,734 2,843,245 (46,828) (2,798,338) INVESTMENTS - BALANCED 16,186,235 16,029,284 12,872,114 156,952 3,314,122 TOTAL INVESTMENTS 16,231,142 16,121,018 15,715,358 110,124 515,784 TOTAL CASH & INVESTMENTS 18,139,422 18,593,471 17,061,599 (454,049) 1,077,822 GROSS INSURANCE RECEIVABLES 11,986,581 11,879,304 13,352,919 107,277 (1,366,338) RECEIVABLE ALLOWANCES (1,118,839) (1,195,049) (1,133,589) 76,210 14,750 NET INSURANCE RECEIVABLES 10,867,741 10,684,254 12,219,330 183,487 (1,351,588) GRANTS / PLEDGES RECEIVABLE - - (0) - 0 CHARITABLE REMAINDER UNITRUST RECEIVABLE 2,481,325 2,481,325 2,481,325 - - MISCELLANEOUS RECEIVABLE (601,725) (658,690) (404,095) 56,964 (197,630) DUE FROM/TO FOUNDATION 26,140 36,412 109,255 (10,272) (83,115) DUE FROM/TO ALZHEIMER'S 516,832 506,323 484,074 10,509 32,758 DUE FROM/TO COVENANT @ HOME 137,217 135,712 57,816 1,506 79,401 DUE FROM/TO COVENANT HEALTH SYSTEMS 2,729,445 2,673,360 2,083,358 56,085 646,087 DUE FROM/TO COVENANT PALLIATIVE CARE 142,577 133,544 78,785 9,033 63,792 DUE FROM/TO COVENANT UNIVERSITY - - (0) - 0 DUE FROM/TO COVENANT MEMORY CARE 76,077 64,902 1,100 11,175 74,977 DUE FROM/TO COVENANT HOME HEALTH HOLDING 901,389 901,389 901,250-139 PREPAID EXPENSE 826,197 1,045,079 550,714 (218,882) 275,484 INVENTORY 171,871 172,867 150,232 (996) 21,639 CASH VALUE ON LIFE INSURANCE 1,048,650 1,036,795 965,666 11,855 82,985 TOTAL CURRENT ASSETS 37,463,158 37,806,743 36,740,408 (343,585) 722,750 LAND 1,936,722 1,936,722 1,936,722 - - BUILDINGS & IMPROVENTS 12,627,696 12,572,987 12,572,987 54,709 54,709 LEASEHOLD IMPROVEMENTS 2,239,472 2,238,571 2,238,571 901 901 FURNITURE, FIXTURES & EQUIPMENT 8,985,538 9,035,799 8,961,731 (50,261) 23,807 CONSTRUCTION IN PROGRESS 2,234,526 1,547,302 61,975 687,224 2,172,551 28,023,953 27,331,380 25,771,986 692,573 2,251,967 LESS ACCUMULATED DEPRECIATION (12,375,334) (12,271,916) (11,636,997) (103,419) (738,337) NET PROPERTY & EQUIPMENT 15,648,618 15,059,464 14,134,988 589,154 1,513,630 CON COSTS MOBILE 127,023 129,465 144,122 (2,443) (17,099) CON COSTS TALLAHASSEE 264,029 264,886 270,030 (857) (6,001) NO COMPETE - BREWTON 61,112 61,506 63,872 (394) (2,760) GOODWILL - BREWTON 1,501 1,506 1,535 (5) (34) TOTAL INTANGIBLE ASSETS 453,664 457,364 479,558 (3,699) (25,894) INVESTMENT IN STUDER COVENANT ALLIANCE, LLC - - - - - TOTAL ASSETS 53,565,441 53,323,571 51,354,954 241,870 2,210,486 LIABILITIES & FUND BALANCE CURRENT LIABILITIES CURRENT PORTION L/T DEBT 448,784 448,784 448,784 - - ACCOUNTS PAYABLE 4,959,351 4,839,632 2,456,216 119,719 2,503,134 ADVANCES AGAINST ACCOUNTS RECEIVABLE 5,197,438 5,688,977 6,419,509 (491,539) (1,222,071) ACCRUED SALARY & WAGES 2,434,148 2,278,738 3,114,490 155,411 (680,341) TOTAL CURRENT LIABILITIES 13,039,721 13,256,130 12,438,999 (216,410) 600,722 LONG-TERM LIABILITIES NOTES PAYABLE - - - - - MORTGAGE PAYABLE 6,077,597 6,108,804 6,324,816 (31,207) (247,219) OTHER LONG TERM LOANS 439,423 445,768 495,786 (6,345) (56,363) LESS CURRENT PORTION (448,784) (448,784) (448,784) - - INTEREST RATE SWAP PAYABLE - - - - - TOTAL LONG-TERM LIABILITIES 6,068,236 6,105,788 6,371,818 (37,552) (303,582) TOTAL LIABILITIES 19,107,956 19,361,918 18,810,817 (253,962) 297,140 NET ASSETS: UNRESTRICTED 31,964,959 31,468,567 30,051,053 496,392 1,913,906 TEMPORARILY RESTRICTED 2,492,525 2,493,085 2,493,085 (560) (560) TOTAL NET ASSETS 34,457,484 33,961,652 32,544,138 495,832 1,913,346 TOTAL LIABILITIES & NET ASSETS 53,565,441 53,323,571 51,354,954 241,870 2,210,486 CASH ONHAND 130 131 107 DAYS REVENUE OUTSTANDING 74 72 79 DAYS PAYABLE OUTSTANDING 54 50 36 DEBT TO FUND BALANCE 0.6 0.6 0.6 CURRENT ASSETS TO CURRENT LIABILITIES 2.9 2.9 3.0

COVENANT HOSPICE, INC. PER PATIENT DAY 2017 2017 MONTH INCOME STATEMENT YEAR TO YEAR TO PRIOR % JUN JUL BUDGET VARIANCE FY 2017 DATE DATE BUDGET VARIANCE YEAR CHANGE PATIENT/FAMILY CARE REVENUE 135.60 138.68 133.69 4.99 Routine Home Care 136.86 134.00 2.87 131.97 3.7% 31.13 28.21 39.40 (11.18) Inpatient Care 31.87 37.85 (5.98) 28.16 13.2% 0.56 0.44 5.28 (4.84) Continuous Care 1.17 5.29 (4.12) 4.57-74.3% 0.60 0.64 0.74 (0.10) Respite Care 0.59 0.76 (0.17) 0.43 38.3% 31.35 28.95 36.37 (7.41) Room & Board 32.92 36.48 (3.56) 31.41 4.8% 0.37 0.34 0.35 (0.01) Consulting Physician 0.42 0.35 0.07 0.43-2.0% 1.58 1.22 3.98 (2.77) Primary Physician 1.43 3.88 (2.45) 3.16-54.7% 3.53 3.44 0.04 3.40 Other Care 1.79 0.04 1.74 0.04 4255.6% 204.70 201.92 219.84 (17.92) TOTAL PATIENT/FAMILY CARE REVENUE 207.06 218.66 (11.60) 200.16 3.4% 4.28 6.45 4.13 2.32 Charity/Unfunded Care 6.36 4.08 2.27 4.44 43.3% 8.83 11.46 6.96 4.50 Contractual Adjustments 8.22 6.90 1.33 6.54 25.7% 13.11 17.92 11.10 6.82 TOTAL DEDUCTIONS FROM REVENUE 14.58 10.98 3.60 10.98 32.8% 191.59 184.01 208.74 (24.74) NET PATIENT/FAMILY CARE REVENUE 192.48 207.68 (15.20) 189.19 1.7% OPERATING EXPENSES PATIENT/FAMILY CARE EXPENSES 0.18 (0.08) 0.06 (0.15) Other Direct 0.14 0.15 (0.00) 0.14 1.6% 63.61 60.35 67.57 (7.22) Payroll 61.02 67.83 (6.81) 66.50-8.2% 14.10 13.54 14.73 (1.19) Benefits 14.17 14.54 (0.37) 13.02 8.9% 22.17 19.95 21.68 (1.72) Patient Expenses 21.20 21.63 (0.43) 19.64 8.0% 3.85 3.82 5.02 (1.19) Mileage 3.97 5.13 (1.16) 4.28-7.3% 103.91 97.58 109.05 (11.47) TOTAL CORE PATIENT/FAMILY CARE EXPENSES 100.51 109.29 (8.78) 103.58-3.0% 2.54 1.81 4.31 (2.49) Inpatient Expenses 2.55 4.32 (1.77) 4.05-37.2% 32.89 32.44 37.71 (5.27) Room & Board Expenses 34.03 37.79 (3.76) 32.58 4.4% 0.51 0.31 0.35 (0.04) Consulting Physician Expenses 0.50 0.35 0.15 0.33 53.5% 35.95 34.56 42.37 (7.81) TOTAL PASS THROUGH PATIENT /FAMILY CARE EXPENSES 37.08 42.45 (5.38) 36.96 0.3% 139.86 132.14 151.41 (19.28) TOTAL PATIENT/FAMILY CARE EXPENSES 137.59 151.74 (14.15) 140.54-2.1% 51.73 51.87 57.33 (5.46) CONTRIBUTIONS FROM OPERATIONS 54.89 55.94 (1.05) 48.65 12.8% GENERAL & ADMINISTRATIVE EXPENSES 26.64 23.77 30.04 (6.28) Other Direct 26.39 28.69 (2.30) 28.02-5.8% 14.41 16.03 18.53 (2.50) Payroll 17.70 18.93 (1.23) 15.98 10.8% 3.11 3.58 4.05 (0.47) Benefits 3.60 4.05 (0.45) 2.90 24.1% 3.72 3.63 3.36 0.27 Alloc to Other Subsidiaries 3.74 3.50 0.24-0.0% 47.89 47.01 55.99 (8.98) TOTAL G&A EXPENSES 51.43 55.17 (3.74) 46.90 0.29 25.0% 25.5% 26.8% -1.3% % OF NET PATIENT/FAMILY CARE REVENUE 26.7% 26.6% 0.2% 24.8% 7.8% 187.75 179.15 207.41 (28.26) TOTAL OPERATING EXPENSES 189.02 206.91 (17.90) 187.44 0.8% 3.84 4.86 1.34 3.52 OPERATING MARGIN 3.46 0.77 2.69 1.75 97.9% NON-OPERATING REVENUES - - - - Contributions/Unsolicited - - - 0.58-100.0% - - - - Planned Giving/Solicited - - - 0.66-100.0% - - - - Foundation Support-Fund Raising/Event Income - - - 1.26-100.0% - - - - United Way/CFC - - - 0.29-100.0% - 0.02-0.02 Grants 0.00-0.00 0.08-95.6% - 0.02-0.02 TOTAL NON-OPERATING REVENUES 0.00-0.00 2.87-99.9% NON-OPERATING EXPENSES 0.01 0.01 0.01 0.00 Other Direct 0.01 0.01 0.00 0.59-98.8% - - - - Fundraising/Event Expense - - - 0.33-100.0% - - - - Payroll - - - 2.14-100.0% - - - - Benefits - - - 0.47-100.0% 0.01 0.01 0.01 0.00 TOTAL NON-OPERATING EXPENSES 0.01 0.01 0.00 3.53-99.8% (0.01) 0.02 (0.01) 0.02 NET NON-OPERATING REVENUE (LOSS) (0.00) (0.01) 0.00 (0.66) 99.4% 4.37 4.48 1.11 3.36 OTHER NON-OPERATING REVENUES 2.90 1.55 1.35 3.03-4.3% 0.66 0.94 0.76 0.18 OTHER NON-OPERATING EXPENSES 0.59 0.48 0.11 1.32-55.7% 3.70 3.55 0.35 3.20 NON OPERATING INCOME 2.31 1.06 1.24 1.04 121.0% 195.96 188.50 209.86 (21.35) TOTAL REVENUES 195.38 209.23 (13.85) 195.09 0.1% 188.42 180.10 208.17 (28.07) TOTAL EXPENSES 189.61 207.40 (17.79) 192.30-1.4% 7.54 8.41 1.69 6.72 EXCESS OF REVENUE OVER EXPENSES 5.77 1.83 3.93 2.79 106.6% 3.85% 4.46% 0.80% 3.66% MARGIN % 2.95% 0.88% 2.07% 1.43%

COVENANT HOSPICE, INC. STATEMENT OF CASH FLOWS July 31, 2017 MONTH YEAR TO DATE CASH FLOWS FROM OPERATING ACTIVITIES: Increase (decrease) in net assets 495,832 1,913,346 Adjustments to reconcile increase in net assets to net cash provided by operating activities: Depreciation expense 103,419 738,395 Amortization expense 3,699 25,894 Provision for bad debts - - Prior period adjustments Change in operating assets and liabilities - Accounts receivable (107,277) 1,366,338 Pledges receivable - (0) Allowance for Doubtful Accounts 33,869 (16,131) Allowance for Doubtful Accounts Audit (107,000) 30,000 Allowance for Doubtful Accounts Sequestration (3,079) (28,619) Miscellaneous receivables (54,358) (94,293) Prepaid expenses 218,882 (275,484) SCA Investment - - Inventory 996 (21,639) Line of Credit 520,000 2,209,650 Accounts payable (132,901) (263,782) Accrued expenses (111,969) (464,526) Net cash provided (required) by operating activities 860,112 5,119,149 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property and equipment (692,573) (2,251,967) Retirement of Capital Assets - (58) No Compete Agreement - Brewton - - Certificate of Need - Mobile - - Cash Value of Insurance Investment (11,855) (82,985) Net cash used in investing activities (704,428) (2,335,010) CASH FLOWS FROM FINANCING ACTIVITIES Accrued PIP liability (491,539) (880,620) Receivable from CHF 10,272 83,115 Receivable from CHP (9,033) (63,792) Receivable from CHCS (56,085) (646,087) Receivable from CAS (10,509) (32,758) Receivable from C@Home (1,506) (79,401) Receivable from Hospice University - (0) Receivable from Peoples Home Health (2,606) 291,923 Receivable from Memory Care (11,175) (74,977) Receivable from CH3 - (139) Payments on obligations under capital leases (6,345) (56,363) Payments on obligations under debt (31,207) (247,219) Due to Alzheimer's - - Due to Foundation - - Net cash used by financing activities (609,734) (1,706,317) NET INCREASE (DECREASE) IN CASH (454,049) 1,077,822 CASH, BEGINNING OF PERIOD 18,593,471 17,061,599 CASH, END OF PERIOD 18,139,422 18,139,422

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

PEOPLES HOME HEALTH INCOME STATEMENT JULY 2017 JULY YTD JUL Ordinary Income/Expense Income 4000 Medicare Revenue 712,928 5,532,418 4100 Non Medicare Revenue 118,967 852,040 4200 Medicare Like 23,409 94,899 4201 Medicare Like Discounted 184,446 1,233,967 Total Income 1,039,750 7,713,324 Cost of Goods Sold 5000 Salaries & Wages Clinical Staff 5005 Skilled Nursing 166,416 1,171,728 5010 Occup Therapy 39,742 292,608 5015 Physical Therapy 148,889 1,124,604 5020 Speech Therapy 12,691 97,233 5025 Social Work 10,078 74,768 5030 Home Health Aide 1,945 20,214 Total 5000 Salaries & Wages Clinical Staff 379,760 2,781,154 5050 Bonuses 5051 Bonus Skilled Nursing 754 6,356 5052 Bonus Occup Therapy 271 5053 Bonus Physical Therapy 401 509 5063 Incentive Skilled Nursing 160 230 5064 Incentive Occup Therapy 25 5065 Incentive Physical Therapy 250 705 Total 5050 Bonuses 1,565 8,096 5100 Benefits Payroll Taxes 5105 Skilled Nursing 12,149 87,860 5110 Occup Therapy 2,735 20,735 5115 Physical Therapy 10,958 81,877 5120 Speech Therapy 967 7,488 5125 Social Work 757 5,594 5130 Home Health Aide 154 1,261 Total 5100 Benefits Payroll Taxes 27,720 204,815 5200 Benefits Group/Supplemental Ins 5205 Skilled Nursing 14,892 111,308 5210 Occup Therapy 2,275 21,574 5215 Physical Therapy 15,807 99,696 5220 Speech Therapy 479 3,266 5225 Social Work 998 5,822 5230 Home Health Aide 1,049 6,591 Total 5200 Benefits Group/Supplemental Ins 35,500 248,257 5300 Benefits Workers' Comp/Malprac 5305 Skilled Nursing 4,531 32,684 5310 Occup Therapy 1,216 8,840

5315 Physical Therapy 4,356 31,628 5320 Speech Therapy 458 3,344 5325 Social Work 273 1,965 5330 Home Health Aide 121 865 Total 5300 Benefits Workers' Comp/Malprac 10,955 79,326 5400 Benefits 401(k) Match 5405 Skilled Nursing 258 2,048 5410 Occup Therapy 372 3,208 5415 Physical Therapy 1,364 12,170 5420 Speech Therapy 160 1,303 Total 5400 Benefits 401(k) Match 2,154 18,729 5500 Mileage 5505 Skilled Nursing 14,530 98,681 5510 Occup Therapy 2,357 17,323 5515 Physical Therapy 7,531 55,650 5520 Speech Therapy 823 5,978 5525 Social Work 671 5,257 5530 Home Health Aide 1,290 9,258 Total 5500 Mileage 27,202 192,147 5600 Medical Supplies 5604 Routine Medical Supplies 4,446 28,397 5605 Billable Medical Supplies 18,525 112,229 5606 Medical Monitoring 313 1,361 5607 TCP Monitoring 4,244 32,840 5610 Medical Waste Removal 291 2,035 Total 5600 Medical Supplies 27,818 176,863 Total COGS 512,673 3,709,388 Gross Profit 527,076 4,003,936 Expense 8500 Answering Service 1,032 7,122 8505 Bank Services Charges 498 2,483 8510 Billing Service Fees 715 6,050 8515 Computer Supplies & Repairs 2,077 6,405 8520 Continuing Education Staff 500 8,484 8525 Contracted Services 8530 Alarm & Security 102 824 8535 Janitorial 1,239 7,280 8545 Pest Control 127 8550 Shredding 168 937 Total 8525 Contracted Services 1,509 9,168 8560 Depreciation Expense 1,295 7,327 8565 Dues & Subscriptions 6,900 8570 Equipment Leases 8575 Copiers 1,133 8,529 8577 Postage Machine 358 Total 8570 Equipment Leases 1,133 8,887 8580 Insurance

8585 Business Liability 5,066 8597 Workers' Comp 529 3,826 Total 8580 Insurance 529 8,891 8605 Licenses and Permits 35 8610 Marketing 5630 Printing Brochures 458 1,693 8613 Mktg Promotionals (Non Allow) 582 5,270 8614 General Marketing (Non Allow) 1,532 13,337 8615 General Marketing (Allowable) 1,438 8616 BD/Mktg Dues & Subscriptions 32 1,717 8619 BD/Mktg Meals & Entertainment 1,598 9,573 8620 Internet/Web Hosting 199 1,247 8621 Social Media 379 2,816 8817 BD/Mktg Telephone 1,041 6,595 9050 BD/Mktg Staff Training 23 135 9051 BD/Mktg Supplies 244 932 9052 BD/Mktg Special Events 628 1,296 9055 BD/Mktg Staff Meetings/Parties 464 Total 8610 Marketing 6,717 46,512 8645 Meals & Entertainment 50% 8646 Meals & Ent Office Staff 389 2,337 8647 Meals & Ent BD/Mktg Staff 210 Total 8645 Meals & Entertainment 50% 389 2,547 8650 Office Expense 8655 Copier Supplies 1,043 10,157 8656 Internet Service 579 4,122 8657 Office Supplies 988 9,849 8658 Break Room Supplies 172 1,448 8659 Office Equipment (Non Capital) 1,298 4,295 8660 Operation Supplies 1,664 13,702 Total 8650 Office Expense 5,744 43,574 8665 Payroll Expense BusDev/Mktg 8666 BD/Mktg Staff Salaries 53,079 374,707 8668 BD/Mktg Staff Payroll Tax 4,483 33,440 8669 BD/Mktg EE Benefits 5,867 36,858 8670 BD/Mktg Mileage & Car Allowance 3,309 25,097 8672 BD/Mktg Incentive Bonus 6,535 60,150 8673 BD/Mktg 401(k) Match 411 3,567 Total 8665 Payroll Expense BusDev/Mktg 73,683 533,820 8675 Payroll Expenses Admin Staff 8501 Auto Exp/Car Allowance Admin 600 5,284 8680 Staff Salaries 74,626 510,716 8684 Admin Staff Bonuses 1,706 15,332 8685 Payroll Taxes 5,974 43,192 8690 Employee Benefits 8,853 61,011 8692 Mileage Admin 399 2,501 8694 Admin 401(k) Match 488 5,428

Total 8675 Payroll Expenses Admin Staff 92,645 643,464 8681 Payroll Expenses Clinical Staff 8682 Clinical Staff Gross 62,505 451,036 8683 Clinical Staff Bonuses 2,326 17,099 8686 Clinical Staff Payroll Taxes 4,091 33,096 8691 Clinical Staff EE Benefits 8,535 47,803 8693 Clin Admin Auto Allowance 400 2,800 8695 Clin Admin 401(k) Match 129 2,172 8696 Clinical Staff Mileage 335 Total 8681 Payroll Expenses Clinical Staff 77,986 554,340 8698 Parent Salary Allocation 17,088 121,756 8699 Parent MSA 35,698 244,673 8700 Postage & Delivery 1,629 8720 Professional Fees 8725 Accounting/Bookkeeping 135 1,082 8726 Payroll Services 2,281 17,515 8730 Consulting 1,352 11,069 8731 HR Services 798 6,939 8735 Legal 2,672 19,294 Total 8720 Professional Fees 7,238 55,899 8750 Rent 8755 Building 14,699 91,641 8756 Conference Room/Facility 100 625 8758 Storage Unit 134 941 Total 8750 Rent 14,934 93,207 8775 Repairs and Maintenance 8785 Equipment 680 Total 8775 Repairs and Maintenance 680 8800 Software Support (EMR) 11,721 78,407 8802 Staff Recruitment 49 1,857 8804 Staff Retention 110 997 8810 Telephone 8815 Cellular/Pagers Office Staff 620 4,407 8816 Cellular/Pagers Clinical Staff 3,962 26,800 8820 Office/Cable/LD 1,027 7,359 Total 8810 Telephone 5,610 38,566 8830 Travel 8832 Hotel 148 Total 8830 Travel 148 8840 Uniforms 696 1,047 8850 Utilities 2,368 12,345 8870 Employee Gifts & Goodwill 93 934 8875 Staff Meetings/ Parties 1,841 9900 Bad Debt Expense 12,506 127,541 Total Expense 374,563 2,677,535 Net Ordinary Income 152,513 1,326,401 Other Income/Expense

Other Income 4150 Miscellaneous Income 91 539 4400 Interest Income 159 629 Total Other Income 250 1,168 Other Expense 8807 Legal Settlements 100 Total Other Expense 100 Net Other Income 250 1,068 Net Income 152,763 1,327,469

PEOPLES HOME HEALTH BALANCE SHEET JULY 2017 July ASSETS Current Assets Checking/Savings 1110 Servis 1st Ops #1454 74,010 1125 BB&T Ops Acct #0652 529,407 1128 BB&T Reserve Acct #9832 750,385 Total Checking/Savings 1,353,802 Other Current Assets 1199 Petty Cash 400 1300 Accounts Receivable PMS 1301 Allowance for Bad Debt (84,152) 1302 Allowance for Pre Claim Review (40,000) 1300 Accounts Receivable PMS Other 1,574,984 Total 1300 Accounts Receivable PMS 1,450,832 8757 Security Deposit 3,050 Total Other Current Assets 1,454,282 Total Current Assets 2,808,084 Fixed Assets 1500 Furniture & Equipment 293,641 1520 Leasehold Improvements 29,537 1550 Accumulated Depreciation (293,780) Total Fixed Assets 29,398 Other Assets 1925 Intercompany Loan to CH3 739,000 1950 Intercompany Cov Hospice 606,551 Total Other Assets 1,345,551 TOTAL ASSETS 4,183,033 LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable 2000 Accounts Payable 79,639 Total Accounts Payable 79,639 Credit Cards 2016 Servis1st Credit Card 9,358 Total Credit Cards 9,358 Other Current Liabilities 2100 401K Deferrals Payable 77 2105 401(k) Match Liability 3,181 2110 125 EE 125 MFS 6,978 2210 Wages Payable 336,961 2211 Bonus Payable 37,679 2213 PTO Accrual 218,487 Total Other Current Liabilities 603,363

Total Current Liabilities 692,360 Total Liabilities 692,360 Equity 3200 Partners' Equity 2,163,204 Net Income 1,327,469 Total Equity 3,490,672 TOTAL LIABILITIES & EQUITY 4,183,033

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

Covenant Health & Community Services, Inc. Income Statement Fiscal Year 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 JAN FEB MAR APR MAY JUN JUL JUL BUD VARIANCE YTD JUL YTD JUL BUD VARIANCE Revenues Other Revenues - 50 - - - 350 - - - 400-400 Total Revenues - 50 - - - 350 - - - 400-400 Expenses: Salaries 157,000 145,820 169,325 172,230 158,261 151,039 132,376 142,637 (10,261) 1,086,053 1,002,505 83,548 Benefits 22,206 18,915 21,822 29,049 15,490 16,427 14,123 19,287 (5,165) 138,032 145,251 (7,220) Other Expenses (19) - (121) (107) 29 - - - - (219) - (219) Bank Service Fees - - - - - 162 5-5 167-167 Office Supplies - - - - - - - - - - - - Marketing - - - - - - - - - - - - Printing Exp - - - - - - - - - - - - Amortization Loan Orig Fees 375 375 375 375 375 375 375-375 2,625-2,625 Legal 32,946 30,055 32,827 (19,581) 13,790 25,443 32,647 21,478 11,169 148,127 150,343 (2,217) Consulting 34,815 10,204 12,812 85,614 (2,213) 14,459 35,534 28,903 6,631 191,226 202,318 (11,092) Start Up Costs - - - - - - - - - - - - Operating License & Fees - - - - - - - - - - - - Promotional Itmes - - - - - - - - - - - - Subscriptions - - - - - - 1,500-1,500 1,500-1,500 Allocation from Parent (145,387) (139,218) (153,490) (146,242) (150,498) (143,459) (144,362) (144,362) 0 (1,022,656) (1,022,656) (0) Total Expenses 101,936 66,151 83,551 121,338 35,233 64,447 72,197 67,942 4,255 544,854 477,762 67,092 Operating Margin (101,936) (66,101) (83,551) (121,338) (35,233) (64,097) (72,197) (67,942) (4,255) (544,454) (477,762) (66,692) 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 67,942 4,255 544,854 477,762 67,092 Excess of Revenue over Expenses (101,941) (66,106) (83,628) (121,343) (35,238) (64,000) (72,197) (67,942) (4,255) (544,454) (477,762) (66,692) Turnkey Visits 0 1 0 0 0 3 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 BB&T Analyzed Checking 9,960 9,955 9,950 9,945 9,940 9,935 9,930 Operating PayPal - - - - - - - Total Cash & Equivalents 19,926 19,921 32,975 13,845 9,940 9,935 9,930 Misc Receivable - - - - - - - Prepaid Other 7,249 6,934 6,619 6,304 5,988 5,673 5,358 Prepaid Supplies - - - - - - - Total Current Assets 27,175 26,854 39,594 20,148 15,928 15,608 15,288 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 Total Assets 37,675 36,979 49,344 29,523 24,928 24,233 23,538 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) Accrued Payroll 110,205 142,431 245,781 287,129 308,348 270,418 283,604 Total Current Liabilities 135,205 167,431 211,281 300,304 274,129 223,199 273,604 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 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 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) Due to/from: Foundation (7,338) (14,376) (30,100) (22,532) (23,941) (40,436) (25,523) Due to/from: Covenant @ Home (6,817) (13,337) (20,532) (27,372) (34,452) (41,219) (48,032) Due to/from: CAS (7,202) (14,120) (21,691) (28,912) (36,270) (43,262) (50,289) Due to/from: Palliative (7,204) (14,102) (21,689) (28,916) (36,339) (43,414) (50,535) Due to/from: Memory Care (11,544) (22,600) (34,733) (46,262) (58,130) (69,463) (80,869) Due to/from: Peoples (17,372) (34,028) (52,337) (84,248) (102,112) (119,101) (136,189) 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 Total Liabilities 2,203,604 2,269,015 2,365,007 2,466,529 2,497,173 2,560,478 2,631,980 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) Current Year Net Income/(Loss) (101,941) (168,047) (251,675) (373,018) (408,256) (472,257) (544,454) 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) Total Liabilities & Net Assets 37,675 36,979 49,344 29,523 24,928 24,233 23,538

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

Covenant Hospice Foundation, Inc. Financial Analysis July 31, 2017 For the month, the foundation had an increase in total net assets of $115,511 bringing total net assets of the foundation to $4,969,166 and total assets to $5,095,131 at 7/31/17. For the year, the foundation has a increase in total net assets of $484,014. Operating Activities: For the month, operating expenses totaled $7,708 and consisted of: $ 510 Bank and Credit Card Service fees $ 7,199 Salary alloc of from CHCS The Foundation recognized total revenues of $94,842 which consisted of the following: $ 14,991 Memorials & Contributions/Unsolicited $ 45,163 Major Gifts $ 476 Planned Giving $ 8,878 Fund Raising/Event Income (mainly from LAD) $ 2,076 Direct Mail $ 3,024 United Way/CFC $ 20,235 Investment Earnings Childrens, Panama City, General, Marianna For the year, the Foundation has recognized total revenues of $712,037. Non-Operating Expenses totaled $46,135 and consisted of the following $ 5,625 Other Direct Costs $ 491 Fundraising expense $ 2,600 Cost of Direct Benefit to Donor $ 3,833 Investment & Advisory Services $ 35,241 Payroll $ 6,623 Benefits $ 1,557 Goldenberg fund usage $ 1,500 Snook fund usage $ (11,336) Realized (gains)/losses For the year, Foundation Non-Operating expenses are $584.559. For the months of June & July, we had an unrealized gain of $73,866. Composition of investment portfolio: Foundation portfolio, per balance sheet 4,829,163 Charity Annuity Reserve required in FL, per balance sheet 19,315 Total 4,848,477 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 JUNE 30, 2017 2017 2017 2017 2017 2017 2017 2017 2017 % YTD JUL JAN FEB MAR APR MAY JUN JUL JUL BUDGET VARIANCE VARIANCE YTD JUL 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 7,199-0.0% 51,100 51,100-0.0% Bank/Credit Card Service Fees 2,084 1,592 1,706 510-510 0.0% 5,892-5,892 0.0% TOTAL GENERAL & ADMINISTRATIVE EXPENSES 7,338 7,038 7,665 9,316 9,064 8,863 7,708 7,199 510 7.08% 56,992 51,100 5,892 11.5% OPERATING MARGIN (7,338) (7,038) (7,665) (9,316) (9,064) (8,863) (7,708) (7,199) (510) 7.08% (56,992) (51,100) (5,892) 11.5% NON-OPERATING REVENUES Memorials/Contributions/Unsolicited 11,287 18,656 13,080 15,590 13,130 16,016 14,991 14,850 141-1.0% 102,750 109,200 (6,450) -5.9% Major Gifts 1,359 886 (2,245) 5,000 - - 45,163 40,000 5,163-12.9% 50,163 130,000 (79,837) -61.4% Planned Giving - 45,784 50,940 - - 476-476 -100.0% 97,199-97,199 100.0% Fund Raising/Event Income 5,344 1,100 13,929 221,154 15,824 83,292 8,878-8,878-100.0% 349,522 236,500 113,022 47.8% United Way/CFC 5,167 5,167 6,474 3,024 3,024 10,024 3,024 5,167 (2,143) -41.5% 35,903 48,667 (12,764) -26.2% Grants 30 65 (95) - - - - - - 0.0% - - - 0.0% Direct Mail 220 280 2,524 821 1,848 4,574 2,076-2,076 0.0% 12,342-12,342 0.0% Released from Restriction 1,506 1,297-12,950 750 1,500 - - - 100.0% 18,003-18,003 0.0% Investment Earnings 3,215 2,370 15,378 2,532 2,425-20,235 2,634 17,601 668.3% 46,156 43,787 2,369 5.4% TOTAL NON-OPERATING REVENUES 28,127 29,822 94,828 312,010 37,000 115,406 94,842 62,650 32,192 51.38% 712,037 568,154 143,883 25.3% NON-OPERATING EXPENSES Other Direct 2,456 4,143 3,757 4,860 18,186 7,195 5,625 11,159 (5,534) -49.6% 46,222 82,763 (36,541) -44.2% Program Expenses 1,300 6,516 592 605 5,890 5,549 3,057-3,057 0.0% 22,009-22,009 0.0% Realized Gains/(Losses) 14,017-12,200 - (6,006) - (11,336) - (11,336) 100.0% 8,874-8,874 0.0% Investment & Advisory Services 3,608 - - 3,744 - - 3,833 3,492 341 9.8% 11,185 10,344 841 8.1% Fundraising Expense/Cost of Direct Benefit - - - 77,254 12,200 62,796 3,091-3,091 100.0% 155,341 98,500 56,841 57.7% Payroll 41,687 33,958 51,568 51,414 48,454 27,091 35,241 53,397 (18,156) -34.0% 289,414 376,293 (86,879) -23.1% Benefits 7,157 6,540 8,341 8,859 9,649 4,345 6,623 9,294 (2,671) -28.7% 51,514 70,394 (18,881) -26.8% TOTAL EXPENSES: 70,225 51,156 76,458 146,736 88,372 106,976 46,135 77,343 (31,209) -40.4% 584,559 638,295 (53,735) -8.4% NET NON-OPERATING REVENUE (LOSS) (42,098) (21,335) 18,370 165,274 (51,372) 8,430 48,708 (14,693) 63,400-431.5% 127,478 (70,141) 197,618-281.7% EXCESS OF REVENUE OVER EXPENSES (49,436) (28,372) 10,705 155,959 (60,437) (433) 40,999 (21,891) 62,891-287.3% 70,485 (121,241) 191,726 158.1% MARGIN % -175.8% -95.1% 11.3% 50.0% -163.3% -0.4% 43.2% -34.9% 78.2% 9.9% -21.3% 31.2% OTHER CHANGES IN UNRESTRICTED NET ASSETS Unrealized gain (loss) on investments 83,645 104,056 18,930 49,591 50,901-73,866-73,866 100.0% 380,989-380,989 100.0% INCREASE IN UNRESTRICTED NET ASSETS 34,209 75,684 29,635 205,549 (9,536) (433) 114,865 (21,891) 136,756-624.7% 451,474 (121,241) 572,715-472.4% Changes in Temporarily Restricted Net Assets Contributions 343 8,014 1,505 445 430 3,162 645-645 100.0% 14,543-14,543 100.0%

COVENANT HOSPICE FOUNDATION, INC. BALANCE SHEET MAY 31, 2017 BALANCE BALANCE BALANCE BALANCE BALANCE BALANCE BALANCE BALANCE BALANCE BALANCE BALANCE BALANCE BALANCE 07/31/2016 08/31/2016 09/30/2016 10/31/2016 11/30/2016 12/31/2016 01/31/2017 02/28/2017 03/31/2017 04/30/2017 05/31/2017 06/30/2017 07/31/2017 ASSETS OPERATING - COASTAL BANK & TRUST 37,872 69,798 75,001 65,701 102,984 121,895 69,761 79,750 171,115 205,063 227,186 181,665 188,356 REGIONS BANK - CHECKING ACCOUNT 16,073 25,211 36,399 58,916 6,865 10,106 35,911 39,893 16,584 29,676 32,536 16,839 25,727 SYNPREPAID OTHER 118 178 216 216 1,331 23,707 2,200 17,850 - - SYNOVUS - TRUST (Hospice Foundation) 4,487,381 4,463,623 4,468,658 4,389,834 4,446,001 4,492,222 4,535,953 4,638,825 4,660,863 4,709,069 4,748,005 4,745,593 4,829,163 SYNOVUS - INVEST (Charitable Annuity Reserve) 18,793 18,250 18,264 17,980 18,078 18,230 18,369 18,709 18,779 18,953 19,068 19,055 19,315 GRANTS RECEIVABLE - - - - - - (2,688) (454) 1,862 (1,958) (3,418) 1,173 (4,469) RECEIVABLE FROM HOSPICE - - - - - - - - - - - - - RECEIVABLE - GIFT ANNUITY REINSURANCE 3,343 3,343 3,343 2,861 2,861 2,861 2,379 2,379 2,379 1,897 1,897 1,897 1,415 OTHER ASSETS - - - - - - - - - - - - - PLEDGES RECEIVABLE 12,544 8,650 3,530 3,530 3,430 400 400 300 300 21,980 14,353 8,461 6,300 MISCELLANEOUS RECEIVABLES - - - - - 25-7,338-70,363-32,428 29,325 TOTAL ASSETS 4,576,006 4,588,876 4,605,195 4,538,940 4,580,397 4,645,954 4,660,301 4,788,071 4,895,590 5,057,242 5,057,477 5,007,111 5,095,131 LIABILITIES & NET ASSETS DEFFERED REVENUE - - - - - - 23,342 47,737 77,617 (0) 13,225 (0) (0) ACCRUED EXPENSES - - - - - - 313 282 242 54,000 8,572 13,680 2,715 ACCRUED PAYROLL & BONUSES - - - - - - 27,077 31,499 55,027 62,664 71,883 50,123 57,282 DUE TO HOSPICE, INC. 14,950 8,181 25,082 25,732 6,962 109,255 32,486 42,031 49,939 42,338 74,004 36,412 26,140 DUE TO CHCS 14,950 8,181 25,082 25,732 6,962 109,255 7,338 14,376 30,100 22,532 23,941 40,436 25,523 CURRENT PORTION OF LONG-TERM DEBT - - - - - - - - - - - - - TOTAL CURRENT LIABILITIES 14,950 8,181 25,082 25,732 6,962 109,255 90,556 135,925 212,925 181,534 191,624 140,651 111,660 LONG TERM INVESTMENT - CHARITABLE ANNUITIES 14,284 14,284 13,663 13,663 13,663 15,547 15,547 15,547 14,926 14,926 14,926 14,305 14,305 TOTAL LONG-TERM LIABILITIES 14,284 14,284 13,663 13,663 13,663 15,547 15,547 15,547 14,926 14,926 14,926 14,305 14,305 TOTAL LIABILITIES 29,234 22,465 38,745 39,394 20,625 124,802 106,104 151,472 227,851 196,460 206,550 154,956 125,965 UNDESIGNATED NET ASSETS 3,649,197 3,668,836 3,668,875 3,597,611 3,653,547 3,656,899 3,692,024 3,772,862 3,803,031 4,008,868 4,004,409 4,007,946 4,125,543 DESIGNATED NET ASSETS TOP OFF THE GAS 100 125 125 125 125 125 125 CHILDREN'S PROGRAM DESIGNATED NET ASSETS 444,999 444,999 444,999 444,999 444,999 444,999 444,999 444,999 444,999 444,999 444,999 444,999 444,999 MARIANNA DESIGNATED NET ASSET 54,185 54,185 54,185 54,185 54,185 54,185 54,185 54,185 54,185 54,185 54,185 54,185 54,185 BOARD DESIGNATED RESTRICTED ASSETS - HERO'S WISH 41,305 41,305 41,305 41,305 41,305 25,127 25,127 22,953 22,351 22,351 21,651 18,956 18,956 BOARD DESIGNATED RESTRICTED ASSETS - GOLDENBERG 74,471 74,471 74,471 74,471 74,471 59,603 58,687 55,706 55,774 55,487 51,110 49,836 48,604 PANAMA CITY DESIGNATED NET ASSETS 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 TOTAL DESIGNATED NET ASSETS 864,961 864,961 864,961 864,961 864,961 833,914 833,098 827,969 827,435 827,148 822,070 818,101 816,869 TEMPORARILY RESTRICTED ASSETS 19,272 19,272 19,272 23,632 27,922 (0) - - - - - - - TEMPORARILY RESTRICTED ASSETS - SNOOK 10,589 10,589 10,589 10,589 10,589 3,833 3,833 3,833 3,833 3,833 3,833 2,333 2,333 TEMPORARILY RESTRICTED ASSETS - NATHANIEL'S LEMONADE 2,753 2,753 2,753 2,753 2,753 8,111 9,245 15,723 15,823 15,673 15,773 15,911 15,996 TEMPORARILY RESTRICTED ASSETS - PC MASK NEXT YEAR 12,700 12,700 12,700 12,700 - - 2,500 2,500 TEMPORARILY RESTRICTED ASSETS - COVENANT CARES 5,695 - - - - - - - TEMPORARILY RESTRICTED ASSETS - COVENANT EMPLOYEE SUPP 3,298 3,512 3,916 4,261 3,840 4,364 4,925 TEMPORARILY RESTRICTED ASSETS - MOBILE /PROVIDENCE 1,000 1,000 1,000 1,000 1,000 TOTAL NET ASSETS 4,546,772 4,566,411 4,566,450 4,499,545 4,559,772 4,521,152 4,554,198 4,636,599 4,667,738 4,860,782 4,850,926 4,852,155 4,969,166