Board of Directors October 2018 and YTD Financial Report

Board of Directors October 2018 and YTD Financial Report

Consolidated Financial Results Operating Margin October ($30,262) $129,301 ($159,563) Year-to-date $292,283 $931,358 ($639,076) Excess of Revenue over Expenses October ($90,334) $154,563 ($244,897) Year-to-date $932,585 $1,396,439 ($463,854) Statistical Highlights Hospice Home Health Memory Care Combined ADC - October 736 840 22 1,598 ADC - Year-to-Date 770 844 18 1,632 Admissions - October 408 404 1 813 Admissions - Year-to-Date 4,516 3,748 28 8,292

Consolidated Operating Margin January through October, 2018 $250,000 $200,000 $189,109 $180,108 $150,000 $113,379 $100,000 $83,765 $50,000 $41,250 $0 ($26,639) ($30,262) ($50,000) ($58,251) ($81,161) ($100,000) ($118,117) ($150,000) Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18

Covenant Hospice Operating Margin October ($279,825) ($14,234) ($265,591) Year-to-date ($924,722) ($153,710) ($771,012) Excess of Revenue over Expenses October ($270,023) $51,008 ($321,032) Year-to-date $2,814,131 $677,859 $2,136,271 Statistical Highlights October Year-to-Date Average Daily Census 736 770 Average Length of Stay 55.9 51.8 Total Admissions 408 4,516 Home Hospice Admissions 253 2,636 Inpatient Admissions 155 1,880 Deaths 346 3,885 Live Discharges 78 623

Covenant Hospice Average Daily Census November 2017 - October 2018 810 800 790 792 787 796 780 779 777 770 769 771 760 750 748 751 750 744 740 736 730 720 710 700 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18

Covenant Home Health Care Operating Margin October $290,799 $177,401 $113,398 Year-to-date $1,758,347 $1,725,005 $33,342 Excess of Revenue over Expenses October $264,806 $158,555 $106,251 Year-to-date $1,590,757 $1,536,540 $54,217 Statistical Highlights October Year-to-Date Average Daily Census 840 844 Total Admissions 404 3,748 New Medicare and Medicare-Like Episodes 411 4,289 Recertification Rate 29% 33% Average Medicare Payment per Episode $ 2,442 $ 2,439 Average Medicare Case Mix Weight 0.9938 1.0118

Covenant Home Health Care Average Daily Census November 2017 - October 2018 900 884 880 866 860 859 853 840 827 826 834 840 832 840 820 817 814 800 780 760 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18

The Residence Memory Care Center Operating Margin October ($4,900) $231 ($5,131) Year-to-date ($277,849) ($99,312) ($178,537) Excess of Revenue over Expenses October ($5,437) $1,929 ($7,366) Year-to-date ($281,094) ($110,307) ($170,787) Statistical Highlights October Year-to-Date Average Daily Census 22 18 Total Admissions 1 28

The Residence Memory Care Center Average Daily Census January 2018- October 2018 21.2 22.0 21.0 20.8 22 20.0 18.3 20.0 15.0 12.5 10.0 8.1 5.0 1.7 - Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18

Other Entities Covenant Health & Community Services October operating margin of ($28,713) and Net Loss of ($29,088) YTD operating loss is ($306,221) and a YTD net loss is ($309,971) Covenant Hospice Foundation October Operating Loss of ($25,856) and a Net Loss of ($34,480) YTD Operating Income is $10,593 and YTD Net Loss is ($2,668,888), due primarily to the $3,000,000 gift to Covenant Hospice.

Covenant Care Consolidated Month of October 2018 - Financial Results ACTUAL BUDGET VARIANCE % VARIANCE NET PATIENT/FAMILY CARE/PROGRAM REVENUE 6,044,288 6,281,865 (237,577) -3.8% TOTAL PATIENT/FAMILY CARE EXPENSES 4,159,515 4,120,217 39,299 1.0% CONTRIBUTIONS FROM OPERATIONS 1,884,773 2,161,648 (276,876) -12.8% CONTRIBUTION % 31.2% 34.4% -3.2% GENERAL & ADMINISTRATIVE EXPENSES Other Direct 870,695 905,492 (34,797) -3.8% Payroll 882,854 947,862 (65,008) -6.9% Benefits 163,318 178,994 (15,676) -8.8% Allocation from CHCS (1,832) (0) (1,832) 0.0% TOTAL G&A EXPENSES 1,915,035 2,032,347 (117,312) -5.8% OPERATING MARGIN (30,262) 129,301 (159,563) -123.4% OPERATING MARGIN % -0.5% 2.1% -2.6% NON-OPERATING REVENUES Other Non-Operating Revenues 47,409 68,579 (21,170) -30.9% Other Non-Operating Expense (107,481) (43,317) (64,164) 148.1% NET NON-OPERATING REVENUE (60,073) 25,262 (85,334) -337.8% EXCESS OF REVENUE OVER EXPENSES (90,334) 154,563 (244,897) -158.4%

Covenant Care Consolidated YTD October 2018 - Financial Results ACTUAL BUDGET VARIANCE % VARIANCE NET PATIENT/FAMILY CARE/PROGRAM REVENUE 60,208,468 61,440,221 (1,231,752) -2.0% TOTAL PATIENT/FAMILY CARE EXPENSES 40,003,457 40,549,687 (546,230) -1.3% CONTRIBUTIONS FROM OPERATIONS 20,205,011 20,890,533 (685,523) -3.3% CONTRIBUTION % 33.6% 34.0% -0.4% GENERAL & ADMINISTRATIVE EXPENSES Other Direct 8,988,562 8,994,904 (6,342) -0.1% Payroll 9,208,639 9,208,172 467 0.0% Benefits 1,715,373 1,756,099 (40,726) -2.3% Allocation from CHCS 154 (0) 155 0.0% TOTAL G&A EXPENSES 19,912,728 19,959,175 (46,447) -0.2% OPERATING MARGIN 292,283 931,358 (639,076) -68.6% OPERATING MARGIN % 0.5% 1.5% -1.0% NON-OPERATING REVENUES Other Non-Operating Revenues 4,463,496 889,292 3,574,204 401.9% Other Non-Operating Expense (3,823,194) (424,212) (3,398,982) 801.2% NET NON-OPERATING REVENUE 640,303 465,081 175,222 37.7% EXCESS OF REVENUE OVER EXPENSES 932,585 1,396,439 (463,854) -33.2%

Consolidated Balance Sheet October 31, 2018 ASSETS TOTAL CASH & INVESTMENTS 23,977,504 NET ACCOUNTS RECEIVABLES 13,101,861 OTHER CURRENT ASSETS 6,240,434 TOTAL CURRENT ASSETS 43,319,800 LAND 1,936,722 BUILDINGS & IMPROVENTS 14,659,443 LEASEHOLD IMPROVEMENTS 4,475,076 FURNITURE, FIXTURES & EQUIPMENT 10,166,059 CONSTRUCTION IN PROGRESS 117,278 31,354,578 LESS ACCUMULATED DEPRECIATION (14,748,770) NET PROPERTY & EQUIPMENT 16,605,808 GOODWILL - PEOPLES 9,073,350 OTHER INTANGIBLE ASSETS 342,980 TOTAL INTANGIBLE ASSETS 9,416,330 TOTAL ASSETS 69,341,938 LIABILITIES & FUND BALANCE CURRENT LIABILITIES CURRENT PORTION L/T DEBT 483,954 ACCOUNTS PAYABLE 3,015,990 ADVANCES AGAINST ACCOUNTS RECEIVABLE 4,078,634 DEFERRED REVENUE (327,081) ACCRUED SALARY & WAGES 4,303,491 TOTAL CURRENT LIABILITIES 11,554,988 LONG-TERM LIABILITIES MORTGAGE PAYABLE 5,598,835 OTHER LONG TERM LOANS 6,863,814 LINE OF CREDIT LOANS 6,868,100 LESS CURRENT PORTION (483,954) BOND ISSUANCE COSTS (55,198) LONG-TERM CHARITABLE ANNUITIES 13,095 TOTAL LONG-TERM LIABILITIES 18,804,693 TOTAL LIABILITIES 30,359,681 NET ASSETS: UNRESTRICTED 35,080,925 BOARD DESIGNATED 885,072 TEMPORARILY RESTRICTED 3,016,260 TOTAL NET ASSETS 38,982,256 TOTAL LIABILITIES & NET ASSETS 69,341,938

Covenant Care October 2018 Balance Sheet Key Ratios DAYS CASH & INVESTMENTS ON HAND 124 DAYS UNRESTRICTED CASH & INVESTMENTS ON HAND 22 (NOTE 1) DAYS REVENUE OUTSTANDING 66 (NOTE 2) DAYS PAYABLE OUTSTANDING 38 DEBT TO FUND BALANCE 48.24%(NOTE 3) CURRENT RATIO 3.7 (NOTE 4) NOTES: 1. Approx. $15,900,000 of the Covenant Hospice investment portfolio is restricted to satisfy the requirements of a loan commitment. 2. After deducting the net valuation of Florida Medicaid Managed Care receivables, Days Revenue Outstanding are 48 3. Debt is defined as bond and loan indebtedness. 4. Current ratio = Current assets divided by current liabilities