Covenant Care November 2017 Consolidated Financial Statements HIGHLIGHTS

Covenant Care November 2017 Consolidated Financial Statements HIGHLIGHTS SUMMARY OF NOVEMBER FINANCIAL ACTIVITY: Covenant Care, consolidated results: Nov: Operating Margin of ($76,201) Net Income of ($47,844) YTD: Operating Margin of $805,884; Net Income of $1,479,878 Covenant Hospice realized a November Operating Margin of ($128,621); net nonoperating revenue of $9,705: produced a Net Income ( Excess of Revenues over Expenses ) of ($118,916). YTD Operating Margin is $335,561 and YTD Net Income is $774,406. Total October admissions: 399 end of life admissions; 389 homebound admissions; 788 total admissions. (October total 773) Covenant Hospice key statistics: Average Daily Census: 747.8 (Nov) vs. 769.2 (YTD) Average Length of Stay: 56.2 (Nov) vs. 55.1 (YTD) Admissions: 399 (Nov) vs 4,661 (YTD) (Average per month 424) Covenant Home Health (formerly known as Peoples), achieved a positive Operating Margin of $208,068. YTD Operating Margin is $2,058,655. (Home Health has few nonoperating revenues or expenses.) Covenant Home Health key statistics: Medicare & Medicare like episodes: 442 (Nov) vs. 4,723 (YTD) Home health visits: 7,277 (Nov) vs 78,669 (YTD) Average Medicare episode payment: $2,353 vs. $2,338 (2017 budget) YTD 30 day readmissions: 17% Covenant Health & Community Services had a November operating loss of ($77,076) and a YTD operating loss of ($750,312). CHCS YTD expenses include $231,100 in compensation costs, and $514,021 in legal and consulting expenses related to the growth and diversification activities being pursued by Covenant. Covenant Hospice Foundation achieved a Net Loss of ($21,301) in November. YTD Net Income is $189,562. The foundation did receive a restricted endowment not included in net income of $200,000 from Robert Bobby H. Kahn, Jr. for the Wish Fund.

2017 2017 2017 2017 COVENANT CARE PROJECTED AUG SEPT OCT NOV COMBINED STATEMENT OF OPERATIONS DEC 45,077 6,963 57,685 (76,201) Consolidated Operating Margin 57,485 Net Income 6,122 66,796 (71,315) (118,916) Hospice (65,786) 173,703 149,060 152,585 206,068 Peoples 206,068 (128,592) (85,727) 20,355 (134,996) Other Companies (85,727) 51,234 130,129 101,626 (47,844) Total Net income 54,555

COVENANT CARE COMBINED STATEMENT OF OPERATIONS NOVEMBER 30, 2017 CH CF CAS CMC CHCS CHHH CPC CPD CHHC ELIMINATIONS COMBINED BUDGET VARIANCE % VARIANCE NET PATIENT/FAMILY CARE/PROGRAM REVENUE 4,393,207 52,183 50,828 - - 1,785 18,115 1,131,917 5,648,034 6,682,096 (1,034,062) -15.5% TOTAL PATIENT/FAMILY CARE EXPENSES 3,087,005 67,554 9,955 5,420 8,389 13,919 523,925-3,716,166 4,507,162 (790,996) -17.5% CONTRIBUTIONS FROM OPERATIONS 1,306,202 (15,371) 40,873 (5,420) - - (6,604) 4,196 607,992-1,931,868 2,174,935 (243,067) -11.2% CONTRIBUTION % 29.7% 0.0% 53.7% 34.2% 32.5% 1.7% GENERAL & ADMINISTRATIVE EXPENSES Other Direct 819,727 2,203 1,624 9,321 65,339 16,693 971 2,365 116,766 (1,479) 1,033,529 956,885 76,644 8.0% Payroll 425,841-7,100 155,356 - - 8,997 226,168-823,462 876,443 (52,981) -6.0% Benefits 91,795-1,543 14,920 - - 1,233 41,587-151,078 162,786 (11,708) -7.2% Allocation from CHCS 97,629 6,937 7,985 12,151 (158,540) 428 8,031 7,749 17,630 - (0) - (0) 0.0% TOTAL G&A EXPENSES 1,434,992 9,140 9,609 30,115 77,076 17,121 9,001 20,344 402,150 (1,479) 2,008,069 1,996,115 11,954 0.6% OPERATING MARGIN (128,790) (24,511) 31,264 (35,535) (77,076) (17,121) (15,605) (16,148) 205,842 1,479 (76,201) 178,820 (255,020) -142.6% OPERATING MARGIN % -2.9% -47.0% 0.0% 0.0% 0.0% 0.0% 0.0% 18.2% -1.3% 2.7% -4.0% NON-OPERATING REVENUES Contributions and fundraising - - - - #DIV/0! Other Non-Operating Revenues 25,605 3,211 15 34,247 226 (1,479) 61,824 27,341 34,483 126.1% Development/Fundraising Expense - - #DIV/0! Other Non-Operating Expense (15,731) - (29) - (17,708) - - - - (33,468) (43,280) 9,812-22.7% Contributions to Affiliates - - - - - - 0.0% NET NON-OPERATING REVENUE 9,874 3,211 (13) - - 16,538 - - 226 (1,479) 28,356 (15,939) 44,296-277.9% EXCESS OF REVENUE OVER EXPENSES (118,916) (21,301) 31,251 (35,535) (77,076) (582) (15,605) (16,148) 206,068 - (47,844) 162,880 (210,725) -129.4% 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 NOVEMBER 30, 2017 CH CF CAS CMC CHCS CHHH CPC CPD CHHC ELIMINATIONS COMBINED BUDGET VARIANCE % VARIANCE NET PATIENT/FAMILY CARE/PROGRAM REVENUE 49,824,241 999,077 103,233 7,099 400 31,411 123,928 12,206,601 63,295,991 71,219,878 (7,923,888) -11.1% TOTAL PATIENT/FAMILY CARE EXPENSES 35,799,382 780,249 132,071 20,150 97,866 100,371 5,867,321-42,797,408 49,487,725 (6,690,317) -13.5% CONTRIBUTIONS FROM OPERATIONS 14,024,860 218,829 (28,838) (13,051) 400 - (66,455) 23,558 6,339,280-20,498,582 21,732,153 (1,233,571) -5.7% CONTRIBUTION % 28.1% 0.0% 51.9% 32.4% 30.5% 1.9% GENERAL & ADMINISTRATIVE EXPENSES Other Direct 7,166,853 8,757 21,614 94,438 519,613 191,984 6,597 25,149 1,310,672 (16,271) 9,329,406 10,041,701 (712,295) -7.1% Payroll 4,597,973-25,491 1,695,235 39,000 98,459 2,322,292-8,778,450 9,773,957 (995,507) -10.2% Benefits 919,063-3,516 193,611-13,683 454,970-1,584,844 1,800,068 (215,224) -12.0% Allocation from CHCS 1,006,750 79,779 81,929 129,843 (1,657,746) 4,906 82,452 78,779 193,309 - (0) - (0) 0.0% TOTAL G&A EXPENSES 13,690,639 88,537 103,542 253,288 750,712 235,890 89,048 216,070 4,281,243 (16,271) 19,692,698 21,615,725 (1,923,027) -8.9% OPERATING MARGIN 334,221 130,292 (132,380) (266,339) (750,312) (235,890) (155,503) (192,513) 2,058,037 16,271 805,884 116,428 689,456 592.2% OPERATING MARGIN % 0.7% 0.0% 0.0% 0.0% 0.0% 0.0% -495.1% 16.9% 1.3% 0.2% 1.1% NON-OPERATING REVENUES Contributions and fundraising - - - - #DIV/0! Other Non-Operating Revenues 618,142 74,395 164-383,737 1,968 (16,271) 1,062,136 455,433 606,703 133.2% Development/Fundraising Expense - - - #DIV/0! Other Non-Operating Expense (177,957) (15,125) (166) - (193,545) - - (1,350) - (388,143) (354,538) (33,604) 9.5% Contributions to Affiliates - - - - - - 0.0% NET NON-OPERATING REVENUE 440,185 59,271 (2) - - 190,192 - - 618 (16,271) 673,994 100,895 573,099 568.0% EXCESS OF REVENUE OVER EXPENSES 774,406 189,562 (132,382) (266,339) (750,312) (45,698) (155,503) (192,513) 2,058,655-1,479,878 217,322 1,262,555 581.0% 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 NOVEMBER 30, 2017 CH CF CAS CMC CHCS CHHH CPC CPD CHHC ELIMINATIONS COMBINED ASSETS CASH & EQUIVALENTS 2,960,578 529,913 205,449 8,367 108,610 315,742 49,103 19,469 1,762,873 5,960,103 INVESTMENTS - FIXED 32,596 5,034,290 5,066,886 INVESTMENTS - BALANCED 16,810,411 19,904 16,830,315 TOTAL INVESTMENTS 16,843,006 5,054,195-21,897,201 TOTAL CASH & INVESTMENTS 19,803,584 5,584,107 205,449 8,367 108,610 315,742 49,103 19,469 1,762,873-27,857,304 GROSS ACCOUNTS RECEIVABLES 10,474,814 4,664 28,349 21,460 1,696,739 12,226,026 RECEIVABLE ALLOWANCES (1,221,298) (27,099) (67,232) (1,315,629) NET ACCOUNTS RECEIVABLES 9,253,516-4,664 - - - 1,250 21,460 1,629,507-10,910,397 GRANTS / PLEDGES RECEIVABLE - (415) (415) CRUT RECEIVABLE 2,481,325 2,481,325 MISCELLANEOUS RECEIVABLE 183,254 75,000 8,990 - - 40,173 307,416 DUE TO/FROM CONSOLIDATED 4,352,921 (52,231) (647,732) (247,530) 5,992,017 (10,604,087) (264,993) (266,963) 1,738,598 0 PREPAID EXPENSE 754,662 1,235 268 (104) 4,097 - (744) 759,415 INVENTORY 135,971 135,971 CASH VALUE ON LIFE INSURANCE 1,096,070 1,096,070 TOTAL CURRENT ASSETS 38,061,303 5,607,696 (428,361) (239,268) 6,104,725 (10,288,345) (214,640) (226,777) 5,171,151-43,547,485 LAND 1,936,722 1,936,722 BUILDINGS & IMPROVENTS 12,627,696 12,627,696 LEASEHOLD IMPROVEMENTS 4,071,725 29,537 4,101,262 FURNITURE, FIXTURES & EQUIPMENT 9,302,521 2,000 300,067 9,604,588 CONSTRUCTION IN PROGRESS 2,007,172 2,007,172 29,945,835 - - 2,000 - - - 329,604-30,277,439 LESS ACCUMULATED DEPRECIATION (12,882,819) (299,467) (13,182,286) NET PROPERTY & EQUIPMENT 17,063,016 - - 2,000 - - - - 30,137-17,095,153 INVESTMENT - PEOPLES 2,163,204 (2,163,204) - CON COSTS MOBILE 117,252 117,252 CON COSTS TALLAHASSEE 260,600 260,600 NO COMPETE - BREWTON 59,535 59,535 GOODWILL 1,481 1,481 GOODWILL - PEOPLES 9,073,350 9,073,350 LOAN ORIGINATION FEES 6,750 6,750 TOTAL INTANGIBLE ASSETS 438,868 - - - 6,750 11,236,554 - - - (2,163,204) 9,518,968 TOTAL ASSETS 55,563,188 5,607,696 (428,361) (237,268) 6,111,475 948,209 (214,640) (226,777) 5,201,288 (2,163,204) 70,161,606 LIABILITIES & FUND BALANCE CURRENT LIABILITIES CURRENT PORTION L/T DEBT 448,784 448,784 ACCOUNTS PAYABLE 2,078,847 1,872 - (2,000) 17,708 - (28) 73,486 2,169,885 ADVANCES AGAINST ACCOUNTS RECEIVABLE 6,084,732 6,084,732 ACCRUED SALARY & WAGES 3,148,877 89,883 13,560 427,774 26,269 905,943 4,612,307 TOTAL CURRENT LIABILITIES 11,761,240 91,756-13,560 425,774 17,708-26,241 979,429-13,315,708 LONG-TERM LIABILITIES NOTES PAYABLE - - MORTGAGE PAYABLE 5,951,892 5,951,892 OTHER LONG TERM LOANS 407,688 8,500,000 8,907,688 LINE OF CREDIT LOANS 2,989,208 2,989,208 LESS CURRENT PORTION (448,784) (448,784) LONG-TERM CHARITABLE ANNUITIES - 13,062 13,062 TOTAL LONG-TERM LIABILITIES 8,900,004 13,062 - - 8,500,000 - - - - - 17,413,066 TOTAL LIABILITIES 20,661,243 104,818-13,560 8,925,774 17,708-26,241 979,429-30,728,774 NET ASSETS: UNRESTRICTED 32,409,419 4,454,118 (499,455) (267,939) (2,814,300) 930,501 (214,640) (253,018) 4,221,859 (2,163,204) 35,803,342 BOARD DESIGNATED BECKER TRUST 71,094-71,094 BOARD DESIGNATED CHILDREN'S PROGRAM 444,999-444,999 BOARD DESIGNATED MARIANNA OFFICE 54,185-54,185 BOARD DESIGNATED PANAMA CITY OFFICE 250,000-250,000 BOARD DESIGNATED GOLDENBERG FUND 39,345-39,345 BOARD DESIGNATED HERO'S WISH 18,063-18,063 TEMPORARILY RESTRICTED - EVENTS 8,700 8,700 TEMPORARILY RESTRICTED - COVENANT SUPPORT FND 6,400-6,400 TEMPORARILY RESTRICTED - NATHANIEL'S LEMONADE 14,108-14,108 TEMPORARILY RESTRICTED - SNOOK FUND 835-835 TEMPORARILY RESTRICTED - TOP OF GAS 11,200 125-11,325 TEMPORARILY RESTRICTED - MOBILE FUND 1,000 1,000 TEMPORARILY RESTRICTED - ONE LAST WISH 211,000 211,000 TEMPORARILY RESTRICTED - HIBBARD TRUST 2,481,325-2,481,325 TEMPORARILY RESTRICTED - MEMORY CARE 17,111 17,111 TOTAL NET ASSETS 34,901,944 5,502,878 (428,360) (250,827) (2,814,300) 930,501 (214,640) (253,018) 4,221,859 (2,163,204) 39,432,833 TOTAL LIABILITIES & NET ASSETS 55,563,188 5,607,696 (428,360) (237,268) 6,111,475 948,209 (214,640) (226,777) 5,201,288 (2,163,204) 70,161,607

Covenant Hospice Financial Report Month Ended 11/30/2017

Executive Summary Excess Revenue over Expenses was ($118,916) for the month versus a $142,829 budget. YTD Excess Revenues over Expenses was $774,406 versus a budget of $748,718 and compares to a prior YTD of ($526,026). Of the Excess Revenue over Expenses, ($128,621) was in Operating Margin and $9,705 was in Net Non-Operating Income. Net non-operating income was $9,705 for the month, favorable to a budget of $6,637. YTD net non-operating income was $438,846 favorable to a budget of $261,093. Reflected in the Statement of Changes in Net Assets is the change in unrealized gain from investments of $226,796 for the month and $1,510,953 YTD. With this, we had an increase in Net Assets YTD of $2,284,799. Census averaged 747.8 for the month versus a budget of 856.9. YTD census averaged 769.2 versus a budget of 837.8 and compares to a prior YTD census of 844.1. Referrals for the month totaled 553 and admissions were 399 compared to a budget of 444, for a monthly conversion rate of 72.2%. YTD referrals and admissions were 6,551 and 4,661 respectively, a conversion rate of 71.1%. Operating Margin The operating margin of (2.9)% for the month was unfavorable to the budget of 2.5%. YTD operating margin was.7% versus a budget of.8%. Prior year was (1.5)%. Operating income for the month was ($128,621), unfavorable to the budget of $136,192. YTD operating income was $335,561, unfavorable to a budget of $487,628 and compares to a prior year of ($779,950). Net revenue for the month was $4,393,207, unfavorable to a budget of $5,418,669. YTD net revenue was $49,823,681, unfavorable to a budget of $58,397,961 and compares to a prior year of $52,878,801. Total patient care costs per day for the month, excluding inpatient costs and room & board expenses which are a function of patient mix, were $109.35, unfavorable to a budget of $107.87. YTD patient care costs excluding inpatient costs and room and board expenses were $102.80, favorable to a budget of $108.96. G&A expenses of 32.7% of revenue were unfavorable to the budget of 26.3%. YTD G&A expenses of 27.5% of revenue were unfavorable to the budget 26.7% and compares to prior year of 24.0%.

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

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

COVENANT HOSPICE, INC. CONSOLIDATED 2017 2017 MONTH % INCOME STATEMENT YEAR TO YEAR TO % PRIOR YEAR OCT NOV BUDGET VARIANCE VARIANCE FY 2017 DATE DATE BUDGET VARIANCE VARIANCE TO DATE PATIENT/FAMILY CARE REVENUE 3,086,490 3,063,784 3,421,077 (357,293) -10.44% Routine Home Care 35,096,690 37,410,151 (2,313,461) -6.18% 37,445,096 773,839 749,783 1,085,530 (335,747) -30.93% Inpatient Care 8,217,903 10,994,628 (2,776,725) -25.26% 7,720,546 9,012 6,451 135,111 (128,661) -95.23% Continuous Care 227,559 1,477,396 (1,249,837) -84.60% 1,234,114 14,991 18,067 18,761 (694) -3.70% Respite Care 163,812 210,452 (46,640) -22.16% 145,548 791,616 688,328 930,634 (242,307) -26.04% Room & Board 8,566,884 10,182,160 (1,615,276) -15.86% 8,885,337 3,172 3,131 9,021 (5,889) -65.29% Consulting Physician 88,714 98,215 (9,501) -9.67% 99,494 36,272 17,617 108,299 (90,682) -83.73% Primary Physician 350,397 1,116,201 (765,804) -68.61% 778,503 82,977 82,955 1,067 81,888 7677.02% Other Care 625,098 11,733 613,364 5227.53% 9,322 4,798,369 4,630,115 5,709,500 (1,079,385) -18.91% TOTAL PATIENT/FAMILY CARE REVENUE 53,337,057 61,500,936 (8,163,879) -13.27% 56,317,961 84,340 70,808 108,921 (38,114) -34.99% Charity/Unfunded Care 1,373,614 1,156,472 217,142 18.78% 1,109,147 65,860 166,100 181,909 (15,809) -8.69% Contractual Adjustments 2,139,762 1,946,503 193,259 9.93% 2,330,013 150,200 236,908 290,830 (53,923) -18.54% TOTAL DEDUCTIONS FROM REVENUE 3,513,375 3,102,975 410,400 13.23% 3,439,160 4,648,170 4,393,207 5,418,669 (1,025,463) -18.92% NET PATIENT/FAMILY CARE REVENUE 49,823,681 58,397,961 (8,574,279) -14.68% 52,878,801 OPERATING EXPENSES PATIENT/FAMILY CARE EXPENSES 2,966 2,446 1,608 837 52.07% Other Direct 35,725 32,092 3,634 11.32% 41,809 1,574,343 1,547,030 1,710,013 (162,983) -9.53% Payroll 16,232,252 18,900,385 (2,668,133) -14.12% 19,553,690 297,332 358,977 377,218 (18,240) -4.84% Benefits 3,622,833 4,076,001 (453,168) -11.12% 3,880,828 527,337 451,673 554,798 (103,125) -18.59% Patient Expenses 5,498,939 6,057,126 (558,187) -9.22% 5,827,164 93,925 93,086 129,328 (36,242) -28.02% Mileage/Fleet Car 1,019,750 1,424,208 (404,458) -28.40% 1,242,354 2,495,904 2,453,212 2,772,966 (319,753) -11.53% TOTAL CORE PATIENT/FAMILY CARE EXPENSES 26,409,498 30,489,812 (4,080,314) -13.38% 30,545,845 6,163 (69,012) 110,210 (179,222) -162.62% Inpatient Expenses 383,194 1,205,110 (821,916) -68.20% 1,014,334 853,552 699,447 964,705 (265,258) -27.50% Room & Board Expenses 8,899,081 10,549,523 (1,650,442) -15.64% 9,262,898 5,635 3,188 9,021 (5,833) -64.66% Consulting Physician Expenses 105,709 98,215 7,494 7.63% 81,644 865,351 633,623 1,083,936 (450,313) -41.54% TOTAL CONTRACTED PATIENT /FAMILY CARE EXPENSES 9,387,984 11,852,848 (2,464,864) -20.80% 10,358,876 3,361,255 3,086,836 3,856,902 (770,066) -19.97% TOTAL PATIENT/FAMILY CARE EXPENSES 35,797,482 42,342,660 (6,545,178) -15.46% 40,904,721 1,286,915 1,306,371 1,561,768 (255,396) -16.35% CONTRIBUTIONS FROM OPERATIONS 14,026,199 16,055,300 (2,029,101) -12.64% 11,974,080 27.69% 29.74% 28.82% 0.91% CONTRIBUTION % 28.15% 27.49% 0.66% 22.64% GENERAL & ADMINISTRATIVE EXPENSES 746,949 819,727 765,969 53,759 7.02% Other Direct 7,166,853 8,182,093 (1,015,241) -12.41% 8,703,796 420,991 425,841 459,403 (33,562) -7.31% Payroll 4,597,973 5,251,404 (653,431) -12.44% 4,757,680 78,707 91,795 102,575 (10,780) -10.51% Benefits 919,063 1,127,425 (208,362) -18.48% 847,483 104,996 97,629 97,629 0 0.00% Alloc to/from Other Subsidiaries 1,006,750 1,006,750 0 0.00% (1,554,929) 1,351,643 1,434,992 1,425,576 9,417 0.66% TOTAL G&A EXPENSES 13,690,639 15,567,672 (1,877,034) -12.06% 12,754,030 29.08% 32.66% 26.31% 6.36% % OF NET PATIENT/FAMILY CARE REVENUE 27.48% 26.66% 0.82% 24.12% 4,712,898 4,521,828 5,282,478 (760,650) -14.40% TOTAL OPERATING EXPENSES 49,488,121 57,910,332 (8,422,212) -14.54% 53,658,751 (64,728) (128,621) 136,192 (264,813) -194.44% OPERATING MARGIN 335,561 487,628 (152,068) -31.19% (779,950) -1.39% -2.93% 2.51% -5.44% OPERATING MARGIN % 0.67% 0.84% -0.16% -1.47% NON-OPERATING REVENUES 0 0 0 0 100.00% Contributions/Unsolicited 0 0 0 100.00% 162,420 0 0 0 0 100.00% Planned Giving/Solicited - 0 0 100.00% 193,710 0 0 0 0 100.00% Foundation Support-Fund Raising/Event Income 0 0 0 100.00% 238,399 0 0 0 0 100.00% United Way/CFC 0 0 0 100.00% 77,917 0 0 0 0 100.00% Grants 560 0 560 100.00% 52,499 0 0 0 0 100.00% TOTAL NON-OPERATING REVENUES 560 0 560 100.00% 724,944 NON-OPERATING EXPENSES 169 169 167 2 1.40% Other Direct 1,899 1,857 42 2.27% 138,606 0 0 0 0 100.00% Fundraising/Event Expense 0 0 0 100.00% 62,407 0 0 0 0 100.00% Payroll 0 0 0 100.00% 535,772 0 0 0 0 100.00% Benefits - 0 0 100.00% 113,411 169 169 167 2 1.40% TOTAL NON-OPERATING EXPENSES 1,899 1,857 42 2.27% 850,197 (169) (169) (167) (2) 1.40% NET NON-OPERATING REVENUE (LOSS) (1,339) (1,857) 518-27.88% (125,252) 10,159 25,605 28,611 (3,006) -10.51% OTHER NON-OPERATING REVENUES 618,142 431,476 186,666 43.26% 788,583 16,577 15,731 21,807 (6,076) -27.86% OTHER NON-OPERATING EXPENSES 177,957 168,529 9,428 5.59% 409,406 (6,587) 9,705 6,637 3,068 46.22% NON OPERATING INCOME 438,846 261,090 177,756 68.08% 253,924 4,658,329 4,418,812 5,447,281 (1,028,469) -18.88% TOTAL REVENUES 50,442,383 58,829,437 (8,387,053) -14.26% 54,392,328 4,729,644 4,537,728 5,304,452 (766,724) -14.45% TOTAL EXPENSES 49,667,977 58,080,718 (8,412,741) -14.48% 54,918,354 (71,315) (118,916) 142,829 (261,745) -183.26% EXCESS OF REVENUE OVER EXPENSES 774,406 748,718 25,688 3.43% (526,026) -1.53% -2.69% 2.62% -5.31% MARGIN % 1.54% 1.27% 0.26% -0.97% 22,953 22,434 25,707 (3,273) -12.73% PATIENT DAYS 256,912 279,818 (22,906) -8.19% 282,781 740.4 747.8 856.9 (109) AVERAGE DAILY CENSUS 769.2 837.8 (69) 844.1 58.0 56.2 57.8 (2) AVERAGE LENGTH OF STAY 55.1 58.5 (3.3) 62.7 396 399 444 (45) ADMISSIONS 4,661 4,787 (126) 4,498 573 553 REFERRALS 6,551 6,239 69.1% 72.2% CONVERSION RATIO 71.1% 72.1% 336 335 342 (6) FTE's - CLINICAL 400 67 69 69 0 FTE's - G&A 70 4 5 7 (2) FTE's NON-OP 6 407 410 418 (8) FTE's - TOTAL 476 -$175.31 -$290.39 $341.94 -$632.34 NET INCOME PER FTE -$1,105.42 1.82 1.83 2.05-0.23 ADC/FTE'S 1.77

COVENANT HOSPICE, INC. CONSOLIDATED 2017 2017 MONTH % STATEMENT OF CHANGES IN NET ASSETS YEAR TO YEAR TO % PRIOR YEAR OCT NOV BUDGET VARIANCE VARIANCE FY 2017 DATE DATE BUDGET VARIANCE VARIANCE TO DATE (71,315) (118,916) 142,829 (261,745) -183.26% EXCESS OF REVENUE OVER EXPENSES 774,406 748,718 25,688 3.43% (526,026) OTHER CHANGES IN UNRESTRICTED NET ASSETS 215,984 226,796 0 226,796 100.00% Change in net unrealized gain on other than trading securities 1,510,953 0 1,510,953 100.00% 561,044 144,670 107,880 142,829 (34,949) -24.47% INCREASE IN UNRESTRICTED NET ASSETS 2,285,359 748,718 1,536,641 205.24% 35,017 CHANGES IN TEMPORARILY RESTRICTED NET ASSETS 0 0 0 0 100.00% Contributions 0 0 0 100.00% 4,035 0 0 0 0 100.00% Net assets released from restrictions (560) 0 (560) 100.00% (690) 0 0 0 0 100.00% INCREASE/(DECREASE) IN TEMPORARILY RESTRICTED NET ASSETS (560) 0 (560) 100.00% 3,345 144,670 107,880 142,829 (34,949) -24.47% INCREASE (DECREASE) IN NET ASSETS 2,284,799 748,718 1,536,081 205.16% 38,362

COVENANT HOSPICE, INC. PER PATIENT DAY 2017 2017 MONTH INCOME STATEMENT YEAR TO YEAR TO PRIOR % OCT NOV BUDGET VARIANCE FY 2017 DATE DATE BUDGET VARIANCE YEAR CHANGE PATIENT/FAMILY CARE REVENUE 134.47 136.57 133.08 3.49 Routine Home Care 136.61 133.69 2.92 132.42 3.2% 33.71 33.42 42.23 (8.81) Inpatient Care 31.99 39.29 (7.30) 27.30 17.2% 0.39 0.29 5.26 (4.97) Continuous Care 0.89 5.28 (4.39) 4.36-79.7% 0.65 0.81 0.73 0.08 Respite Care 0.64 0.75 (0.11) 0.51 23.9% 34.49 30.68 36.20 (5.52) Room & Board 33.35 36.39 (3.04) 31.42 6.1% 0.14 0.14 0.35 (0.21) Consulting Physician 0.35 0.35 (0.01) 0.35-1.9% 1.58 0.79 4.21 (3.43) Primary Physician 1.36 3.99 (2.63) 2.75-50.5% 3.62 3.70 0.04 3.66 Other Care 2.43 0.04 2.39 0.03 7280.8% 209.05 206.39 222.10 (15.71) TOTAL PATIENT/FAMILY CARE REVENUE 207.61 219.79 (12.18) 199.16 4.2% 3.67 3.16 4.24 (1.08) Charity/Unfunded Care 5.35 4.13 1.21 3.92 36.3% 2.87 7.40 7.08 0.33 Contractual Adjustments 8.33 6.96 1.37 8.24 1.1% 6.54 10.56 11.31 (0.75) TOTAL DEDUCTIONS FROM REVENUE 13.68 11.09 2.59 12.16 12.4% 202.51 195.83 210.79 (14.96) NET PATIENT/FAMILY CARE REVENUE 193.93 208.70 (14.77) 187.00 3.7% OPERATING EXPENSES PATIENT/FAMILY CARE EXPENSES 0.13 0.11 0.06 0.05 Other Direct 0.14 0.11 0.02 0.15-5.9% 68.59 68.96 66.52 2.44 Payroll 63.18 67.55 (4.36) 69.15-8.6% 12.95 16.00 14.67 1.33 Benefits 14.10 14.57 (0.47) 13.72 2.8% 22.97 20.13 21.58 (1.45) Patient Expenses 21.40 21.65 (0.24) 20.61 3.9% 4.09 4.15 5.03 (0.88) Mileage 3.97 5.09 (1.12) 4.39-9.7% 108.74 109.35 107.87 1.48 TOTAL CORE PATIENT/FAMILY CARE EXPENSES 102.80 108.96 (6.17) 108.02-4.8% 0.27 (3.08) 4.29 (7.36) Inpatient Expenses 1.49 4.31 (2.82) 3.59-58.4% 37.19 31.18 37.53 (6.35) Room & Board Expenses 34.64 37.70 (3.06) 32.76 5.7% 0.25 0.14 0.35 (0.21) Consulting Physician Expenses 0.41 0.35 0.06 0.29 42.5% 37.70 28.24 42.17 (13.92) TOTAL PASS THROUGH PATIENT /FAMILY CARE EXPENSES 36.54 42.36 (5.82) 36.63-0.2% 146.44 137.60 150.03 (12.44) TOTAL PATIENT/FAMILY CARE EXPENSES 139.34 151.32 (11.98) 144.65-3.7% 56.07 58.23 60.75 (2.52) CONTRIBUTIONS FROM OPERATIONS 54.60 57.38 (2.78) 42.34 28.9% GENERAL & ADMINISTRATIVE EXPENSES 32.54 36.54 29.80 6.74 Other Direct 27.90 29.24 (1.34) 30.78-9.4% 18.34 18.98 17.87 1.11 Payroll 17.90 18.77 (0.87) 16.82 6.4% 3.43 4.09 3.99 0.10 Benefits 3.58 4.03 (0.45) 3.00 19.4% 4.57 4.35 3.80 0.55 Alloc to Other Subsidiaries 3.92 3.60 0.32 (5.50) 0.0% 58.89 63.97 55.45 8.51 TOTAL G&A EXPENSES 53.29 55.64 (2.35) 45.10 0.16 29.1% 32.7% 26.3% 6.4% % OF NET PATIENT/FAMILY CARE REVENUE 27.5% 26.7% 0.8% 24.1% 13.9% 205.33 201.56 205.49 (3.93) TOTAL OPERATING EXPENSES 192.63 206.96 (14.33) 189.75 1.5% (2.82) (5.73) 5.30 (11.03) OPERATING MARGIN 1.31 1.74 (0.44) (2.76) 147.4% NON-OPERATING REVENUES - - - - Contributions/Unsolicited - - - 0.57-100.0% - - - - Planned Giving/Solicited - - - 0.69-100.0% - - - - Foundation Support-Fund Raising/Event Income - - - 0.84-100.0% - - - - United Way/CFC - - - 0.28-100.0% - - - - Grants 0.00-0.00 0.19-98.8% - - - - TOTAL NON-OPERATING REVENUES 0.00-0.00 2.56-99.9% NON-OPERATING EXPENSES 0.01 0.01 0.01 0.00 Other Direct 0.01 0.01 0.00 0.49-98.5% - - - - Fundraising/Event Expense - - - 0.22-100.0% - - - - Payroll - - - 1.89-100.0% - - - - Benefits - - - 0.40-100.0% 0.01 0.01 0.01 0.00 TOTAL NON-OPERATING EXPENSES 0.01 0.01 0.00 3.01-99.8% (0.01) (0.01) (0.01) (0.00) NET NON-OPERATING REVENUE (LOSS) (0.01) (0.01) 0.00 (0.44) 98.8% 0.44 1.14 1.11 0.03 OTHER NON-OPERATING REVENUES 2.41 1.54 0.86 2.79-13.7% 0.72 0.70 0.85 (0.15) OTHER NON-OPERATING EXPENSES 0.69 0.60 0.09 1.45-52.2% (0.29) 0.43 0.26 0.17 NON OPERATING INCOME 1.71 0.93 0.78 0.90 90.2% 202.95 196.97 211.90 (14.93) TOTAL REVENUES 196.34 210.24 (13.90) 192.35 2.1% 206.06 202.27 206.34 (4.07) TOTAL EXPENSES 193.33 207.57 (14.24) 194.21-0.5% (3.11) (5.30) 5.56 (10.86) EXCESS OF REVENUE OVER EXPENSES 3.01 2.68 0.34 (1.86) 262.0% -1.53% -2.69% 2.62% -5.31% MARGIN % 1.54% 1.27% 0.26% -0.97%

COVENANT HOSPICE, INC. BALANCE SHEET FOR NOVEMBER 30, 2017 BALANCE BALANCE BALANCE NET CHANGE NET CHANGE 11/30/2017 10/31/2017 12/31/2016 DURING MONTH DURING YEAR ASSETS CASH & EQUIVALENTS 2,960,578 4,502,924 1,346,241 (1,542,346) 1,614,337 INVESTMENTS - FIXED 32,596 32,465 2,843,245 130 (2,810,649) INVESTMENTS - BALANCED 16,810,411 16,582,134 12,872,114 228,277 3,938,297 TOTAL INVESTMENTS 16,843,006 16,614,599 15,715,358 228,407 1,127,648 TOTAL CASH & INVESTMENTS 19,803,584 21,117,524 17,061,599 (1,313,939) 2,741,985 GROSS INSURANCE RECEIVABLES 10,474,814 11,005,339 13,352,919 (530,525) (2,878,105) RECEIVABLE ALLOWANCES (1,221,298) (1,225,084) (1,133,589) 3,786 (87,709) NET INSURANCE RECEIVABLES 9,253,516 9,780,255 12,219,330 (526,739) (2,965,814) GRANTS / PLEDGES RECEIVABLE - - (0) - 0 CHARITABLE REMAINDER UNITRUST RECEIVABLE 2,481,325 2,481,325 2,481,325 - - MISCELLANEOUS RECEIVABLE (541,795) (547,262) (404,095) 5,467 (137,700) DUE FROM/TO FOUNDATION 27,296 21,903 109,255 5,393 (81,959) DUE FROM/TO ALZHEIMER'S 565,803 549,304 484,074 16,499 81,729 DUE FROM/TO COVENANT @ HOME 188,184 171,502 57,816 16,682 130,368 DUE FROM/TO COVENANT HEALTH SYSTEMS 3,095,068 2,982,795 2,083,358 112,273 1,011,711 DUE FROM/TO COVENANT PALLIATIVE CARE 182,541 173,226 78,785 9,315 103,755 DUE FROM/TO COVENANT UNIVERSITY - - (0) - 0 DUE FROM/TO COVENANT MEMORY CARE 117,688 108,355 1,100 9,333 116,588 DUE FROM/TO COVENANT HOME HEALTH HOLDING 901,389 901,389 901,250-139 PREPAID EXPENSE 754,662 1,145,182 550,714 (390,520) 203,949 INVENTORY 135,971 151,373 150,232 (15,402) (14,261) CASH VALUE ON LIFE INSURANCE 1,096,070 1,084,215 965,666 11,855 130,405 TOTAL CURRENT ASSETS 38,061,303 40,121,087 36,740,408 (2,059,784) 1,320,895 LAND 1,936,722 1,936,722 1,936,722 - - BUILDINGS & IMPROVENTS 12,627,696 12,627,696 12,572,987-54,709 LEASEHOLD IMPROVEMENTS 4,071,725 3,907,439 2,238,571 164,286 1,833,154 FURNITURE, FIXTURES & EQUIPMENT 9,302,521 9,248,247 8,961,731 54,275 340,791 CONSTRUCTION IN PROGRESS 2,007,172 1,548,963 61,975 458,209 1,945,197 29,945,835 29,269,066 25,771,986 676,769 4,173,850 LESS ACCUMULATED DEPRECIATION (12,882,819) (12,745,141) (11,636,997) (137,678) (1,245,822) NET PROPERTY & EQUIPMENT 17,063,016 16,523,925 14,134,988 539,091 2,928,028 CON COSTS MOBILE 117,252 119,694 144,122 (2,443) (26,870) CON COSTS TALLAHASSEE 260,600 261,457 270,030 (857) (9,430) NO COMPETE - BREWTON 59,535 59,929 63,872 (394) (4,337) GOODWILL - BREWTON 1,481 1,486 1,535 (5) (54) TOTAL INTANGIBLE ASSETS 438,868 442,567 479,558 (3,699) (40,691) INVESTMENT IN STUDER COVENANT ALLIANCE, LLC - - - - - TOTAL ASSETS 55,563,188 57,087,579 51,354,954 (1,524,392) 4,208,233 LIABILITIES & FUND BALANCE CURRENT LIABILITIES CURRENT PORTION L/T DEBT 448,784 448,784 448,784 - - ACCOUNTS PAYABLE 2,078,847 2,610,882 2,456,216 (532,034) (377,369) ADVANCES AGAINST ACCOUNTS RECEIVABLE 6,084,732 7,151,743 6,419,509 (1,067,011) (334,777) ACCRUED SALARY & WAGES 3,148,877 3,144,154 3,114,490 4,723 34,387 TOTAL CURRENT LIABILITIES 11,761,240 13,355,562 12,438,999 (1,594,323) (677,759) LONG-TERM LIABILITIES NOTES PAYABLE - - - - - MORTGAGE PAYABLE 5,951,892 5,983,451 6,324,816 (31,559) (372,924) OTHER LONG TERM LOANS 3,396,896 3,403,285 495,786 (6,390) 2,901,110 LESS CURRENT PORTION (448,784) (448,784) (448,784) - - INTEREST RATE SWAP PAYABLE - - - - - TOTAL LONG-TERM LIABILITIES 8,900,004 8,937,952 6,371,818 (37,949) 2,528,186 TOTAL LIABILITIES 20,661,243 22,293,515 18,810,817 (1,632,272) 1,850,427 NET ASSETS: UNRESTRICTED 32,409,419 32,301,540 30,051,053 107,880 2,358,366 TEMPORARILY RESTRICTED 2,492,525 2,492,525 2,493,085 - (560) TOTAL NET ASSETS 34,901,944 34,794,065 32,544,138 107,880 2,357,806 TOTAL LIABILITIES & NET ASSETS 55,563,188 57,087,579 51,354,954 (1,524,392) 4,208,233 CASH ONHAND 135 145 107 DAYS REVENUE OUTSTANDING 63 66 79 DAYS PAYABLE OUTSTANDING 36 40 36 DEBT TO FUND BALANCE 0.6 0.6 0.6 CURRENT ASSETS TO CURRENT LIABILITIES 3.2 3.0 3.0

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

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

COVENANT HOME HEALTH CARE INCOME STATEMENT AS OF NOVEMBER 30, 2017 MTD YTD Ordinary Income/Expense Income 4000 Medicare Revenue 781,840 8,678,130 4100 Non Medicare Revenue 118,915 1,355,119 4200 Medicare Like 22,871 164,569 4201 Medicare Like Discounted 208,290 2,008,782 Total Income 1,131,917 12,206,601 Cost of Goods Sold 5000 Salaries & Wages Clinical Staff 5005 Skilled Nursing 163,654 1,857,059 5010 Occup Therapy 40,335 456,403 5015 Physical Therapy 157,233 1,765,489 5020 Speech Therapy 12,479 154,746 5025 Social Work 11,681 125,620 5030 Home Health Aide 1,948 28,410 5800 Contract Labor Clinical 1,425 Total 5000 Salaries & Wages Clinical Staff 387,332 4,389,153 5050 Bonuses 5051 Bonus Skilled Nursing 1,700 11,556 5052 Bonus Occup Therapy 521 5053 Bonus Physical Therapy 500 1,009 5055 Bonus Social Work 5063 Incentive Skilled Nursing 25 795 5064 Incentive Occup Therapy 25 5065 Incentive Physical Therapy 730 Total 5050 Bonuses 2,225 14,636 5100 Benefits Payroll Taxes 5105 Skilled Nursing 12,871 138,625 5110 Occup Therapy 2,752 32,365 5115 Physical Therapy 11,307 127,718 5120 Speech Therapy 938 11,647 5125 Social Work 874 9,119 5130 Home Health Aide 107 1,745 Total 5100 Benefits Payroll Taxes 28,850 321,220 5200 Benefits Group/Supplemental Ins 5205 Skilled Nursing 14,051 182,142 5210 Occup Therapy 3,360 33,938 5215 Physical Therapy 17,675 158,260 5220 Speech Therapy 479 5,107 5225 Social Work 750 9,165 5230 Home Health Aide 1,035 10,570 Total 5200 Benefits Group/Supplemental Ins 37,349 399,182 5300 Benefits Workers' Comp/Malprac

COVENANT HOME HEALTH CARE INCOME STATEMENT AS OF NOVEMBER 30, 2017 MTD YTD 5305 Skilled Nursing 4,811 52,113 5310 Occup Therapy 1,291 14,056 5315 Physical Therapy 4,626 50,310 5320 Speech Therapy 487 5,309 5325 Social Work 290 3,135 5330 Home Health Aide 128 1,383 Total 5300 Benefits Workers' Comp/Malprac 11,633 126,306 5400 Benefits 401(k) Match 5405 Skilled Nursing 293 3,252 5410 Occup Therapy 417 4,855 5415 Physical Therapy 1,378 17,301 5420 Speech Therapy 174 2,012 Total 5400 Benefits 401(k) Match 2,262 27,420 5500 Mileage 5505 Skilled Nursing 15,580 162,096 5510 Occup Therapy 2,639 27,294 5515 Physical Therapy 7,840 86,567 5520 Speech Therapy 782 9,669 5525 Social Work 935 8,808 5530 Home Health Aide 1,193 14,363 Total 5500 Mileage 28,969 308,798 5600 Medical Supplies 5604 Routine Medical Supplies 5,081 49,431 5605 Billable Medical Supplies 14,661 170,929 5606 Medical Monitoring 215 2,285 5607 TCP Monitoring 5,059 54,762 5610 Medical Waste Removal 291 3,198 Total 5600 Medical Supplies 25,307 280,605 Total COGS 523,925 5,867,321 Gross Profit 607,992 6,339,280 Expense 8500 Answering Service 1,026 12,755 8505 Bank Services Charges 413 4,193 8510 Billing Service Fees 805 9,215 8515 Computer Supplies & Repairs 282 9,666 8520 Continuing Education Staff 9,416 8523 Contract Labor 561 638 8525 Contracted Services 8530 Alarm & Security 296 1,329 8535 Janitorial 931 11,477 8545 Pest Control 191 8550 Shredding 168 2,104 Total 8525 Contracted Services 1,394 15,102

COVENANT HOME HEALTH CARE INCOME STATEMENT AS OF NOVEMBER 30, 2017 MTD YTD 8560 Depreciation Expense 1,531 13,014 8565 Dues & Subscriptions 7,632 8570 Equipment Leases 8575 Copiers 986 12,913 8577 Postage Machine 406 943 Total 8570 Equipment Leases 1,392 13,856 8580 Insurance 8585 Business Liability 14,488 8597 Workers' Comp 587 6,051 Total 8580 Insurance 587 20,538 8600 Interest Expense 2 8605 Licenses and Permits 966 1,217 8610 Marketing 5630 Printing Brochures 446 3,656 5635 Sponsorships 300 8613 Mktg Promotionals (Non Allow) 1,388 8,211 8614 General Marketing (Non Allow) 3,716 22,639 8615 General Marketing (Allowable) 45 2,343 8616 BD/Mktg Dues & Subscriptions 32 4,438 8619 BD/Mktg Meals & Entertainment 2,230 17,376 8620 Internet/Web Hosting 439 3,599 8621 Social Media 1,422 6,533 8625 Newspaper 250 500 8817 BD/Mktg Telephone 1,156 10,195 9050 BD/Mktg Staff Training 173 9051 BD/Mktg Supplies 37 1,646 9052 BD/Mktg Special Events 1,926 9055 BD/Mktg Staff Meetings/Parties 813 Total 8610 Marketing 11,161 84,347 8645 Meals & Entertainment 50% 8646 Meals & Ent Office Staff 257 3,564 8647 Meals & Ent BD/Mktg Staff 336 Total 8645 Meals & Entertainment 50% 257 3,900 8650 Office Expense 8655 Copier Supplies 941 16,497 8656 Internet Service 579 6,438 8657 Office Supplies 1,295 16,483 8658 Break Room Supplies 152 2,805 8659 Office Equipment (Non Capital) 6,732 8660 Operation Supplies 2,439 21,483 Total 8650 Office Expense 5,406 70,439 8665 Payroll Expense BusDev/Mktg 8666 BD/Mktg Staff Salaries 57,492 601,422

COVENANT HOME HEALTH CARE INCOME STATEMENT AS OF NOVEMBER 30, 2017 MTD YTD 8667 BD/Mktg Staff Bonuses 8668 BD/Mktg Staff Payroll Tax 4,751 51,795 8669 BD/Mktg EE Benefits 5,781 60,130 8670 BD/Mktg Mileage & Car Allowance 2,727 38,978 8672 BD/Mktg Incentive Bonus 9,560 89,735 8673 BD/Mktg 401(k) Match 389 5,152 Total 8665 Payroll Expense BusDev/Mktg 80,700 847,213 8675 Payroll Expenses Admin Staff 8501 Auto Exp/Car Allowance Admin 600 8,071 8680 Staff Salaries 82,300 838,638 8684 Admin Staff Bonuses 2,247 25,833 8685 Payroll Taxes 5,389 63,970 8690 Employee Benefits 9,472 98,483 8692 Mileage Admin 435 3,446 8694 Admin 401(k) Match 509 7,421 Total 8675 Payroll Expenses Admin Staff 100,952 1,045,862 8681 Payroll Expenses Clinical Staff 8682 Clinical Staff Gross 71,242 727,290 8683 Clinical Staff Bonuses 2,326 26,903 8686 Clinical Staff Payroll Taxes 4,408 50,470 8691 Clinical Staff EE Benefits 7,983 75,650 8693 Clin Admin Auto Allowance 400 4,400 8695 Clin Admin 401(k) Match 177 2,920 8696 Clinical Staff Mileage 496 1,472 Total 8681 Payroll Expenses Clinical Staff 87,031 889,105 8698 Parent Salary Allocation 17,630 193,309 8699 Parent MSA 34,247 384,118 8700 Postage & Delivery 2,052 8720 Professional Fees 8725 Accounting/Bookkeeping 135 8,047 8726 Payroll Services 2,310 26,559 8730 Consulting 392 12,637 8731 HR Services 510 9,521 8735 Legal 210 30,918 Total 8720 Professional Fees 3,557 87,682 8750 Rent 8755 Building 14,867 151,110 8756 Conference Room/Facility 75 900 8758 Storage Unit 292 1,809 Total 8750 Rent 15,235 153,819 8775 Repairs and Maintenance 8785 Equipment 1,241 Total 8775 Repairs and Maintenance 1,241

COVENANT HOME HEALTH CARE INCOME STATEMENT AS OF NOVEMBER 30, 2017 MTD YTD 8800 Software Support (EMR) 11,277 124,237 8802 Staff Recruitment 44 2,067 8804 Staff Retention 3,208 6,234 8810 Telephone 8815 Cellular/Pagers Office Staff 620 7,174 8816 Cellular/Pagers Clinical Staff 3,504 42,546 8820 Office/Cable/LD 1,143 11,870 Total 8810 Telephone 5,266 61,590 8830 Travel 8832 Hotel 53 371 Total 8830 Travel 53 371 8840 Uniforms 1,037 8850 Utilities 2,475 22,751 8870 Employee Gifts & Goodwill 187 1,220 8875 Staff Meetings/ Parties 2,001 3,841 9900 Bad Debt Expense 12,506 177,564 Total Expense 402,149 4,281,243 Net Ordinary Income 205,842 2,058,037 Other Income/Expense Other Income 4150 Miscellaneous Income 25 641 4400 Interest Income 201 1,326 Total Other Income 226 1,968 Other Expense 8807 Legal Settlements 1,350 Total Other Expense 1,350 Net Other Income 226 618 Net Income 206,068 2,058,655

COVENANT HOME HEALTH CARE BALANCE SHEET AS OF NOVEMBER 30, 2017 NOV 2017 ASSETS Current Assets Checking/Savings 1125 BB&T Ops Acct #0652 458,425 1126 BB&T Payroll Acct #0644 303,106 1128 BB&T Reserve Acct #9832 1,000,941 Total Checking/Savings 1,762,473 Other Current Assets 1199 Petty Cash 400 1200 Employee Advances 1,723 1300 Accounts Receivable PMS 1301 Allowance for Bad Debt (27,232) 1302 Allowance for Pre Claim Review (40,000) 1300 Accounts Receivable PMS Other 1,696,739 Total 1300 Accounts Receivable PMS 1,629,507 8757 Security Deposit 3,050 Total Other Current Assets 1,634,680 Total Current Assets 3,397,153 Fixed Assets 1500 Furniture & Equipment 300,067 1520 Leasehold Improvements 29,537 1550 Accumulated Depreciation (299,467) Total Fixed Assets 30,137 Other Assets 1925 Intercompany Loan to CH3 1,239,000 1950 Intercompany Cov Hospice 534,998 Total Other Assets 1,773,998 TOTAL ASSETS 5,201,288 LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable 2000 Accounts Payable 65,555 Total Accounts Payable 65,555 Credit Cards 2016 Servis1st Credit Card 7,931 Total Credit Cards 7,931 Other Current Liabilities 2105 401(k) Match Liability 6,673 2110 125 EE 125 MFS (13,027) 2210 Wages Payable 547,562 2211 Bonus Payable 51,216 2213 PTO Accrual 252,829

COVENANT HOME HEALTH CARE BALANCE SHEET AS OF NOVEMBER 30, 2017 NOV 2017 2214 Workers Comp Payable 60,689 Total Other Current Liabilities 905,943 Total Current Liabilities 979,429 Total Liabilities 979,429 Equity 3200 Partners' Equity 2,163,204 3202 Partner Draws (Four Stones) (341,388) 3203 Partner Draws (CStone) 341,388 Net Income 2,058,655 Total Equity 4,221,859 TOTAL LIABILITIES & EQUITY 5,201,288

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

Covenant Health & Community Services, Inc. Income Statement Fiscal Year 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV NOV BUD VARIANCE YTD NOV YTD NOV BUD VARIANCE Revenues Other Revenues - 50 - - - 350 - - - - - - - 400-400 Total Revenues - 50 - - - 350 - - - - - - - 400-400 Expenses: Salaries 157,000 145,820 169,325 172,230 158,261 151,039 132,376 156,983 142,664 154,179 155,356 159,119 (3,763) 1,695,235 1,638,524 56,711 Benefits 22,206 18,915 21,822 29,049 15,490 16,427 14,123 12,790 14,110 13,759 14,920 19,899 (4,978) 193,611 225,001 (31,390) Other Expenses (19) - (121) (107) 29 - - - - - - - - (219) - (219) Bank Service Fees - - - - - 162 5 5 5 5 5-5 187-187 Office Supplies - - - - - - - - - - - - - - - - Marketing - - - - - - - - - - - - - - - - Printing Exp - - - - - - - - - - - - - - - - Amortization Loan Orig Fees 375 375 375 375 375 375 375 375 375 375 375-375 4,125-4,125 Legal 32,946 30,055 32,827 (19,581) 13,790 25,443 32,647 25,325 25,056 25,000 25,863 21,478 4,386 249,371 236,254 13,117 Consulting 34,815 10,204 12,812 85,614 (2,213) 14,459 35,534 315 315 33,697 39,096 28,903 10,193 264,650 317,929 (53,279) 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) (156,406) (170,306) (158,540) (158,540) (0) (1,657,746) (1,657,746) (0) Total Expenses 101,936 66,151 83,551 121,338 35,233 64,447 72,197 45,955 26,118 56,710 77,076 70,858 6,217 750,712 759,961 (9,249) Operating Margin (101,936) (66,101) (83,551) (121,338) (35,233) (64,097) (72,197) (45,955) (26,118) (56,710) (77,076) (70,858) (6,217) (750,312) (759,961) 9,649 Other Non-Operating Revenues - - - - - - - - - - - - - - - - Other Non-Operating Expenses 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 26,118 56,710 77,076 70,858 6,217 750,712 759,961 (9,249) Excess of Revenue over Expenses (101,941) (66,106) (83,628) (121,343) (35,238) (64,000) (72,197) (45,955) (26,118) (56,710) (77,076) (70,858) (6,217) (750,312) (759,961) 9,649 Turnkey Visits 0 1 0 0 0 3 0 0 0 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 51,134 73,249 98,700 BB&T Analyzed Checking 9,960 9,955 9,950 9,945 9,940 9,935 9,930 9,915 9,920 9,915 9,910 Operating PayPal - - - - - - - - - - - Total Cash & Equivalents 19,926 19,921 32,975 13,845 9,940 9,935 9,930 35,448 61,054 83,164 108,610 Misc Receivable - - - - - - - - - - - Prepaid Other 7,249 6,934 6,619 6,304 5,988 5,673 5,358 5,043 4,728 4,412 4,097 Prepaid Supplies - - - - - - - - - - - Total Current Assets 27,175 26,854 39,594 20,148 15,928 15,608 15,288 40,491 65,782 87,576 112,707 Fixed Assets: Furniture, Fixtures & Equipment - - - - - - - - - - - (Less accumulated depreciation) - - - - - - - - - - - Total Fixed Assets - - - - - - - - - - - Other Assets Loan Origination Fees 10,500 10,125 9,750 9,375 9,000 8,625 8,250 7,875 7,500 7,125 6,750 Total Assets 37,675 36,979 49,344 29,523 24,928 24,233 23,538 48,366 73,282 94,701 119,457 Liabilities & Net Assets Covenant Health & Community Services, Inc. Balance Sheet Fiscal Year 2017 Current Liabilities Current portion of LT debt - - - - - - - - - - - Accounts Payable - - - - - - - - - - - Accrued Expenses 25,000 25,000 (34,500) 13,175 (34,219) (47,219) (10,000) (8,000) (6,000) (4,000) (2,000) Accrued Payroll 110,205 142,431 245,781 287,129 308,348 270,418 283,604 324,733 347,775 386,757 427,774 Total Current Liabilities 135,205 167,431 211,281 300,304 274,129 223,199 273,604 316,733 341,775 382,757 425,774 Long-Term Liabilities Loan payable - BB&T 9,550,000 9,550,000 9,300,000 9,200,000 9,100,000 9,000,000 8,900,000 8,800,000 8,700,000 8,600,000 8,500,000 Due to/from: Covenant Hospice 2,102,814 2,191,505 2,312,636 2,382,744 2,493,028 2,673,360 2,729,445 2,808,792 2,884,455 2,982,795 3,095,068 Loan payable to Covenant Hospice - - - - - - - - - - - Due to/from: Covenant Home Health Holding (9,526,938) (9,527,359) (9,277,827) (9,178,276) (9,078,742) (8,979,185) (8,879,631) (8,780,097) (8,680,514) (8,580,978) (8,481,406) Due to/from: Foundation (7,338) (14,376) (30,100) (22,532) (23,941) (40,436) (25,523) (25,471) (22,114) (25,451) (24,935) Due to/from: Covenant @ Home (6,817) (13,337) (20,532) (27,372) (34,452) (41,219) (48,032) (55,096) (62,711) (71,029) (78,779) Due to/from: CAS (7,202) (14,120) (21,691) (28,912) (36,270) (43,262) (50,289) (57,574) (65,405) (73,944) (81,929) Due to/from: Palliative (7,204) (14,102) (21,689) (28,916) (36,339) (43,414) (50,535) (57,914) (65,827) (74,421) (82,452) Due to/from: Memory Care (11,544) (22,600) (34,733) (46,262) (58,130) (69,463) (80,869) (92,699) (104,663) (117,692) (129,843) Due to/from: Peoples (17,372) (34,028) (52,337) (84,248) (102,112) (119,101) (136,189) (153,912) (171,199) (190,112) (207,743) Less Short-term portion - - - - - - - - - - - Total Long-Term Liabilities 2,068,399 2,101,584 2,153,726 2,166,225 2,223,043 2,337,279 2,358,376 2,386,029 2,412,022 2,449,168 2,507,983 Total Liabilities 2,203,604 2,269,015 2,365,007 2,466,529 2,497,173 2,560,478 2,631,980 2,702,762 2,753,796 2,831,925 2,933,757 Net Assets: Unrestricted Net Assets: (2,063,988) (2,063,988) (2,063,988) (2,063,988) (2,063,988) (2,063,988) (2,063,988) (2,063,988) (2,063,988) (2,063,988) (2,063,988) Current Year Net Income/(Loss) (101,941) (168,047) (251,675) (373,018) (408,256) (472,257) (544,454) (590,408) (616,526) (673,236) (750,312) Total Unrestricted Net Assets (2,165,929) (2,232,036) (2,315,663) (2,437,006) (2,472,244) (2,536,245) (2,608,442) (2,654,396) (2,680,514) (2,737,224) (2,814,300) Total Liabilities & Net Assets 37,675 36,979 49,344 29,523 24,928 24,233 23,538 48,366 73,282 94,701 119,457

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

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

COVENANT HOSPICE FOUNDATION, INC. INCOME STATEMENT FOR NOVEMBER 30, 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 % YTD NOV JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV NOV BUDGET VARIANCE VARIANCE YTD NOV 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 6,808 7,453 6,937 6,937-0.0% 79,779 79,779-0.0% Bank/Credit Card Service Fees 2,084 1,592 1,706 510 255 204 202 261-261 0.0% 6,815-6,815 0.0% TOTAL GENERAL & ADMINISTRATIVE EXPENSES 7,338 7,038 7,665 9,316 9,064 8,863 7,708 7,737 7,012 7,655 7,197 6,937 261 3.76% 86,594 79,779 6,815 8.5% OPERATING MARGIN (7,338) (7,038) (7,665) (9,316) (9,064) (8,863) (7,708) (7,737) (7,012) (7,655) (7,197) (6,937) (261) 3.76% (86,594) (79,779) (6,815) 8.5% NON-OPERATING REVENUES Memorials/Contributions/Unsolicited 11,287 18,656 13,080 15,590 13,130 16,016 14,991 13,424 10,428 7,456 22,696 14,850 7,846-52.8% 156,755 168,600 (11,845) -7.0% Major Gifts 1,359 886 (2,245) 5,000 - - 45,163 25,000 14,837 5,000 5,000 100,922 (95,922) 95.0% 100,000 388,343 (288,343) -74.2% Planned Giving - 45,784 50,940 - - 476-20,163 141,958 - - - -100.0% 259,320-259,320 100.0% Fund Raising/Event Income 5,344 1,100 13,929 221,154 15,824 83,292 8,878 867 (1,270) - 14-14 -100.0% 349,133 248,250 100,883 40.6% United Way/CFC 5,167 5,167 6,474 3,024 3,024 10,024 3,024 3,024 11,224 3,024 3,024 5,167 (2,143) -41.5% 56,197 75,584 (19,386) -25.6% Grants 30 65 (95) - - - - - - - 17,500 20,000 (2,500) -12.5% 17,500 20,000 (2,500) -12.5% Direct Mail 220 280 2,524 821 1,848 4,574 2,076 1,386 2,573 17,047 3,234-3,234 0.0% 36,582-36,582 0.0% Other Income 1,685 - - - - 0.0% 1,685-1,685 0.0% Released from Restriction 1,506 1,297-12,950 750 1,500-60 2,203 2,609 716-716 100.0% 23,591-23,591 0.0% Investment Earnings 3,215 2,370 15,378 2,532 2,425-20,235 2,398 17,756 2,504 2,661 2,556 105 4.1% 71,475 66,052 5,423 8.2% TOTAL NON-OPERATING REVENUES 28,127 29,822 94,828 312,010 37,000 115,406 94,842 46,159 79,599 179,598 54,844 143,494 (88,650) -61.78% 1,072,237 966,829 105,408 10.9% NON-OPERATING EXPENSES Other Direct 2,456 4,143 3,757 4,860 18,186 7,195 5,625 7,672 1,968 (1,195) 12,751 11,159 1,592 14.3% 67,417 127,399 (59,982) -47.1% Program Expenses 1,300 6,516 592 605 5,890 5,549 1,557 2,737 5,458 5,822 10,354-10,354 0.0% 46,380-46,380 0.0% Realized Gains/(Losses) 14,017-12,200 - (6,006) - (11,336) - (9,560) - (550) - (550) 100.0% (1,236) - (1,236) 0.0% Investment & Advisory Services 3,608 - - 3,744 - - 3,833 - - 3,939 - - - 100.0% 15,125 13,836 1,288 9.3% Fundraising Expense/Cost of Direct Benefit - - - 77,254 12,200 62,796 3,091 (13) - - - - - 100.0% 155,328 104,750 50,578 48.3% Payroll 41,687 33,958 51,568 51,414 48,454 27,091 35,241 35,457 29,896 40,866 38,653 51,234 (12,581) -24.6% 434,285 589,157 (154,872) -26.3% Benefits 7,157 6,540 8,341 8,859 9,649 4,345 6,623 6,583 6,283 6,663 7,739 8,505 (766) -9.0% 78,781 106,290 (27,509) -25.9% TOTAL EXPENSES: 70,225 51,156 76,458 146,736 88,372 106,976 44,635 52,435 34,044 56,095 68,947 70,898 (1,951) -2.8% 796,081 941,433 (145,352) -15.4% NET NON-OPERATING REVENUE (LOSS) (42,098) (21,335) 18,370 165,274 (51,372) 8,430 50,208 (6,276) 45,555 123,503 (14,103) 72,596 (86,700) -119.4% 276,156 25,396 250,760 987.4% EXCESS OF REVENUE OVER EXPENSES (49,436) (28,372) 10,705 155,959 (60,437) (433) 42,499 (14,013) 38,542 115,848 (21,301) 65,660 (86,960) -132.4% 189,562 (54,383) 243,946 448.6% MARGIN % -175.8% -95.1% 11.3% 50.0% -163.3% -0.4% 44.8% -30.4% 48.4% 64.5% -38.8% 45.8% -84.6% 17.7% -5.6% 23.3% OTHER CHANGES IN UNRESTRICTED NET ASSETS Unrealized gain (loss) on investments 83,645 104,056 18,930 49,591 50,901-73,866 14,803 36,214 70,368 77,962-77,962 100.0% 580,335-580,335 100.0% INCREASE IN UNRESTRICTED NET ASSETS 34,209 75,684 29,635 205,549 (9,536) (433) 116,365 790 74,756 186,216 56,661 65,660 (8,999) -13.7% 769,898 (54,383) 824,281-1515.7% Changes in Temporarily Restricted Net Assets Contributions 343 8,014 1,505 445 430 3,162 645 976 2,522 2,268 215,111-215,111 100.0% 235,419-235,419 100.0% Net assets released from restrictions (1,506) (1,297) - (12,950) (750) (1,500) - (60) (2,203) (2,609) (716) - (716) 100.0% (23,591) - (23,591) 100.0% INCREASE/(DECREASE) IN TEMPORARILY RESTRICTED NET (1,164) 6,717 1,505 (12,505) (320) 1,662 645 916 318 (341) 214,395-214,395 100.0% 211,828-211,828 100.0% INCREASE/(DECREASE) IN NET ASSETS 33,045 82,401 31,140 193,044 (9,856) 1,229 117,011 1,707 75,074 185,875 271,056 65,660 205,396 312.8% 981,726 (54,383) 1,036,109-1905.2%