EX-99 2 che-20250423xex99.htm EX-99 Exhibit 99

Picture 2

CONTACT:  Michael D. Witzeman

(513) 762-6714



Chemed Reports First-Quarter 2025 Results





CINCINNATI, April 23, 2025—Chemed Corporation (Chemed) (NYSE: CHE), which operates VITAS Healthcare Corporation (VITAS), one of the nation’s largest providers of end-of-life care, and Roto-Rooter, the nation’s largest commercial and residential plumbing and drain cleaning services provider, reported financial results for its first quarter ended March 31, 2025, versus the comparable prior-year period.



Results for Quarter Ended March 31, 2025



Consolidated operating results:

·

Revenue increased 9.8% to $646.9 million

·

GAAP Diluted Earnings-per-Share (EPS) of $4.86, an increase of 14.6%

·

Adjusted Diluted EPS of $5.63, an increase of 8.3%



VITAS segment operating results:

·

Net Patient Revenue of $407.4 million, an increase of 15.1%

·

Average Daily Census (ADC) of 22,244, an increase of 13.1%

·

Admissions of 18,139, an increase of 7.3%

·

Net Income, excluding certain discrete items, of $50.0 million, an increase of 13.8%

·

Adjusted EBITDA, excluding Medicare Cap, of $70.3 million, an increase of 15.9%

·

Adjusted EBITDA margin, excluding Medicare Cap, of 17.2%, an increase of 13-basis points



Roto-Rooter segment operating results:

·

Revenue of $239.5 million, an increase of 1.8%

·

Net Income, excluding certain discrete items, of $41.8 million, a decrease of 2.1%

·

Adjusted EBITDA of $59.2 million, a decline of 2.4%

·

Adjusted EBITDA margin of 24.7%, a decline of 108-basis points



VITAS



As previously announced, VITAS completed its acquisition of the hospice assets and an assisted living facility of Covenant Health and Community Services, Inc. (Covenant Health) on April 17, 2024 for $85.0 million in cash. Before presenting VITAS’ overall results, it is important to disclose

 

the methodology used in determining the impact of Covenant Health’s acquisition on VITAS’ overall results.  VITAS had significant operations in two of the three Florida locations we acquired from Covenant Health.  Those locations require that we estimate the Covenant Health impact, as once the operations are integrated, there are not separate results.  For instance, there are no VITAS-specific referral sources versus Covenant Health-specific referral sources in these locations.  It is very likely that referral sources in the area have historically referred to both VITAS and Covenant Health.  We have used historical operating trends in these locations to determine what is “legacy” VITAS activity.  All activity above those historical operating trends have been attributed as the Covenant Health impact. We have included the specifically determined impact as it relates to new operating territories acquired.  Based on the above, we discuss the range of impact that Covenant had on the overall VITAS operating metrics. 



Covenant Health contributed approximately $11.5 million to $12.5 million of revenue in the first quarter of 2025.  This revenue translated to net income of approximately $1.8 million to $2.0 million.  Adjusted EBITDA in the quarter attributed to Covenant Health is between $2.5 million and $2.7 million.



VITAS net revenue was $407.4 million in the first quarter of 2025, which is an increase of 15.1% when compared to the prior-year period.  This revenue increase is comprised primarily of a 11.9% increase in days-of-care and a geographically weighted average Medicare reimbursement rate increase of approximately 3.2%.  Acuity mix shift negatively impacted revenue growth 112-basis points in the quarter when compared to the prior-year period’s revenue and level-of-care mix.  The combination of Medicare Cap and other contra revenue changes increased revenue growth by approximately 112-basis points.

 

In the first quarter of 2025, VITAS accrued $2.3 million in Medicare Cap billing limitation, essentially flat with the first quarter of 2024.



Of VITAS’ 34 Medicare provider numbers, 24 provider numbers have a trailing 12-month Medicare Cap cushion of 10% or greater, four provider numbers have a cushion between 0% and 10%, and six provider numbers have a trailing 12-month Medicare Cap billing limitation totaling $19.6 million.   



Average revenue per patient per day in the first quarter of 2025 was $207.58 which is 221-basis points above the prior-year period. Reimbursement for routine home care and high acuity care averaged $183.06 and $1,121.07, respectively.  During the quarter, high acuity days-of-care were 2.6% of total days of care, a decline of 22-basis points when compared to the prior-year quarter.



The first quarter 2025 gross margin, excluding Medicare Cap, was 23.7% which is essentially flat with the same period of 2024.  Selling, general and administrative expenses were $26.5 million in the first quarter of 2025 compared to $23.8 million in the prior-year quarter. 



Adjusted EBITDA, excluding Medicare Cap, totaled $70.3 million in the quarter, an increase of 15.9% when compared to the prior year period.  Adjusted EBITDA margin in the quarter, excluding Medicare Cap, was 17.2%.



 

Roto-Rooter



Roto-Rooter generated quarterly revenue of $239.5 million in the first quarter of 2025, an increase of 1.8%, when compared to the prior-year quarter.



Roto-Rooter branch commercial revenue in the quarter totaled $57.7 million, an increase of 7.3% from the prior-year period.  This aggregate commercial revenue change consisted of plumbing declining 4.3%, excavation increasing 38.0%, and water restoration increasing 14.0%.  Commercial drain cleaning revenue was essentially flat between quarters.



Roto-Rooter branch residential revenue in the quarter totaled $167.2 million, an increase of 1.7%, over the prior-year period.  This aggregate residential revenue change consisted of drain cleaning declining 5.5%, plumbing declining 4.2%, excavation increasing 3.0%, and water restoration increasing 12.5%.



In the first quarter of 2025, revenue from independent contractors declined 6.4% as compared to the same period of 2024.



Roto-Rooter’s first quarter 2025 gross margin was 50.9%.  This compares to the prior year quarter’s gross margin of 51.9%.  Roto-Rooter’s selling, general and administrative expenses were $62.6 million in the quarter, which is an increase of 2.3% compared to the first quarter of 2024. 



Adjusted EBITDA in the first quarter of 2025 totaled $59.2 million, a decrease of 2.4% when compared to the first quarter of 2024.  The Adjusted EBITDA margin in the quarter was 24.7% which represents a 108-basis point decline from the first quarter of 2024.



Chemed Consolidated



As of March 31, 2025, Chemed had total cash and cash equivalents of $173.9 million and no current or long-term debt.



In June 2022, Chemed entered into a five-year $550 million Amended and Restated Credit Agreement (Credit Agreement).  This Credit Agreement consisted of a $100 million amortizable term loan and a $450 million revolving credit facility. The interest rate on this Credit Agreement has a floating rate that is currently SOFR plus 100-basis points.  There is approximately $404.5 million of undrawn borrowing capacity under the Credit Agreement after excluding $45.5 million for Letters of Credit.



During the quarter, the Company repurchased 50,000 shares of Chemed stock for $29.8 million which equates to a cost per share of $595.15.  As of March 31, 2025, there was approximately $225.6 million of remaining share repurchase authorization under its plan.



Guidance for 2025



Management anticipates providing updated 2025 earnings guidance as part of the June 30, 2025 earnings press release.

 

Conference Call



As previously disclosed, Chemed will host a conference call and webcast at 10 a.m., ET, on Thursday April 24, 2025, to discuss the company's quarterly results and to provide an update on its business. Participants may access a live webcast of the conference call through the investor relations section of Chemed’s website, Investor Relations Home | Chemed Corporation or the hosting website https://edge.media-server.com/mmc/p/ey8mpmti.



Participants may also register via teleconference at:

 https://register-conf.media-server.com/register/BI7c94b6cdd2574c8a8508d7a5a1235973.



Once registration is completed, participants will be provided with a dial-in number containing a personalized conference code to access the call. All participants are instructed to dial-in 15 minutes prior to the start time.



A  taped replay of the conference call will be available beginning approximately two hours after the call's conclusion. You may access the replay via webcast through the investor relations section of Chemed’s website.



Chemed operates in the healthcare field through its VITAS Healthcare Corporation subsidiary.  VITAS provides daily hospice services to patients with severe, life-limiting illnesses. This type of care is focused on making the terminally ill patient's final days as comfortable and pain-free as possible.



Chemed operates in the residential and commercial plumbing and drain cleaning industry under the brand name Roto-Rooter. Roto-Rooter provides plumbing, drain cleaning, and water cleanup services through company-owned branches, independent contractors and franchisees in the United States and Canada. Roto-Rooter also has licensed master franchisees in the republics of Indonesia and Singapore, and the Philippines.



 

This press release contains information about Chemed’s EBITDA, Adjusted EBITDA and Adjusted Diluted EPS, which are not measures derived in accordance with GAAP and which exclude components that are important to understanding Chemed’s financial performance. In reporting its operating results, Chemed provides EBITDA, Adjusted EBITDA and Adjusted Diluted EPS measures to help investors and others evaluate the Company’s operating results, compare its operating performance with that of similar companies that have different capital structures and evaluate its ability to meet its future debt service, capital expenditures and working capital requirements. Chemed’s management similarly uses EBITDA, Adjusted EBITDA and Adjusted Diluted EPS to assist it in evaluating the performance of the Company across fiscal periods and in assessing how its performance compares to its peer companies.  These measures also help Chemed’s management to estimate the resources required to meet Chemed’s future financial obligations and expenditures.  Chemed’s EBITDA, Adjusted EBITDA and Adjusted Diluted EPS should not be considered in isolation or as a substitute for comparable measures calculated and presented in accordance with GAAP. We calculated Adjusted EBITDA Margin by dividing Adjusted EBITDA by service revenue and sales.  A reconciliation of Chemed’s net income to its EBITDA, Adjusted EBITDA and Adjusted Diluted EPS is presented in the tables following the text of this press release.



Forward-Looking Statements



Certain statements contained in this press release and the accompanying tables are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "hope," "anticipate," "plan" and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. Chemed does not undertake and specifically disclaims any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These statements are based on current expectations and assumptions and involve various risks and uncertainties, which could cause Chemed's actual results to differ from those expressed in such forward-looking statements.



These risks and uncertainties arise from, among other things, possible changes in regulations governing the hospice care or plumbing and drain cleaning industries; periodic changes in reimbursement levels and procedures under Medicare and Medicaid programs; difficulties predicting patient length of stay and estimating potential Medicare reimbursement obligations; challenges inherent in Chemed's growth strategy; the current shortage of  qualified nurses,  other healthcare professionals and  licensed plumbing and drain cleaning technicians; Chemed’s dependence on patient referral sources; and other factors detailed under the caption "Description of  Business by  Segment" or "Risk Factors" in Chemed’s  most recent  report on  form 10-Q  or 10-K and its other filings with the Securities and Exchange Commission.  You are cautioned not to place undue reliance on such forward-looking statements and there are no assurances that the matters contained in such statements will be achieved.



 











 

 

 

 

 

 

 

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)(unaudited)



 

 

 

 

 

 

 



 

Three Months Ended March 31,

 



 

2025

 

2024

 

Service revenues and sales

 

$

 646,943 

 

$

 589,233 

 

Cost of services provided and goods sold

 

 

 430,530 

 

 

 385,127 

 

Selling, general and administrative expenses (aa)

 

 

 105,587 

 

 

 115,873 

 

Depreciation

 

 

 13,445 

 

 

 13,287 

 

Amortization

 

 

 2,572 

 

 

 2,521 

 

Other operating expense

 

 

 51 

 

 

 92 

 

Total costs and expenses

 

 

 552,185 

 

 

 516,900 

 

Income from operations

 

 

 94,758 

 

 

 72,333 

 

Interest expense

 

 

 (329)

 

 

 (425)

 

Other income--net (bb)

 

 

 1,245 

 

 

 12,577 

 

Income before income taxes

 

 

 95,674 

 

 

 84,485 

 

Income taxes

 

 

 (23,917)

 

 

 (19,468)

 

Net income

 

$

 71,757 

 

$

 65,017 

 

Earnings Per Share

 

 

 

 

 

 

 

Net income

 

$

 4.91 

 

$

 4.30 

 

Average number of shares outstanding

 

 

 14,622 

 

 

 15,121 

 

Diluted Earnings Per Share

 

 

 

 

 

 

 

Net income

 

$

 4.86 

 

$

 4.24 

 

Average number of shares outstanding

 

 

 14,764 

 

 

 15,339 

 



 

 

 

 

 

 

 

(aa)    Selling, general and administrative ("SG&A") expenses comprise (in thousands):



 

 

 

 

 

 

 



 

Three Months Ended March 31,

 



 

2025

 

2024

 

SG&A expenses before long-term incentive compensation

 

 

 

 

 

 

 

and the impact of market value adjustments related to

 

 

 

 

 

 

 

deferred compensation plans

 

$

 103,760 

 

$

 98,418 

 

Long-term incentive compensation

 

 

 2,657 

 

 

 9,121 

 

Market value adjustments related to deferred

 

 

 

 

 

 

 

compensation trusts

 

 

 (830)

 

 

 8,334 

 

Total SG&A expenses

 

$

 105,587 

 

$

 115,873 

 



 

 

 

 

 

 

 

(bb)    Other income--net comprises (in thousands):

 



 

Three Months Ended March 31,

 



 

2025

 

2024

 



 

 

 

 

 

 

 

Interest income

 

$

 2,076 

 

$

 4,243 

 

Market value adjustments related to deferred

 

 

 

 

 

 

 

compensation trusts

 

 

 (830)

 

 

 8,334 

 

Other

 

 

 (1)

 

 

 -

 

Total other income--net

 

$

 1,245 

 

$

 12,577 

 



 





 

 

 

 

 

 

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)(unaudited)



 

 

 

 

 

 



 

March 31,



 

2025

 

2024

Assets

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

 173,882 

 

$

 313,350 

Accounts receivable less allowances

 

 

 285,873 

 

 

 177,334 

Inventories

 

 

 7,790 

 

 

 10,712 

Prepaid income taxes

 

 

 4,436 

 

 

 9,790 

Prepaid expenses

 

 

 30,404 

 

 

 28,431 

Total current assets

 

 

 502,385 

 

 

 539,617 

Investments of deferred compensation plans held in trust

 

 

 127,949 

 

 

 117,649 

Properties and equipment, at cost less accumulated depreciation

 

 

 199,679 

 

 

 202,784 

Lease right of use asset

 

 

 131,150 

 

 

 131,751 

Identifiable intangible assets less accumulated amortization

 

 

 89,929 

 

 

 88,137 

Goodwill

 

 

 666,940 

 

 

 591,519 

Other assets

 

 

 8,483 

 

 

 56,176 

Total Assets

 

$

 1,726,515 

 

$

 1,727,633 

Liabilities

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

 

$

 47,692 

 

$

 56,203 

Accrued insurance

 

 

 65,743 

 

 

 62,055 

Accrued income taxes

 

 

 38,247 

 

 

 27,353 

Accrued compensation

 

 

 59,905 

 

 

 49,802 

Short-term lease liability

 

 

 42,976 

 

 

 39,279 

Other current liabilities

 

 

 35,993 

 

 

 47,282 

Total current liabilities

 

 

 290,556 

 

 

 281,974 

Deferred income taxes

 

 

 11,771 

 

 

 24,899 

Deferred compensation liabilities

 

 

 127,292 

 

 

 117,550 

Long-term lease liability

 

 

 102,082 

 

 

 106,861 

Other liabilities

 

 

 13,052 

 

 

 12,854 

Total Liabilities

 

 

 544,753 

 

 

 544,138 

Stockholders' Equity

 

 

 

 

 

 

Capital stock

 

 

 37,535 

 

 

 37,297 

Paid-in capital

 

 

 1,538,419 

 

 

 1,398,733 

Retained earnings

 

 

 2,786,264 

 

 

 2,505,892 

Treasury stock, at cost

 

 

 (3,182,718)

 

 

 (2,760,543)

Deferred compensation payable in Company stock

 

 

 2,262 

 

 

 2,116 

Total Stockholders' Equity

 

 

 1,181,762 

 

 

 1,183,495 

Total Liabilities and Stockholders' Equity

 

$

 1,726,515 

 

$

 1,727,633 



 









 

 

 

 

 

 

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)(unaudited)



 

 

 

 

 

 



 

For the Three Months Ended March 31,



 

2025

 

2024

Cash Flows from Operating Activities

 

 

 

 

 

 

Net income

 

$

 71,757 

 

$

 65,017 

Adjustments to reconcile net income to net cash provided

 

 

 

 

 

 

by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

 16,017 

 

 

 15,808 

Stock option expense

 

 

 9,091 

 

 

 9,025 

Noncash long-term incentive compensation

 

 

 2,420 

 

 

 9,106 

Benefit for deferred income taxes

 

 

 (14,174)

 

 

 (5,422)

Amortization of debt issuance costs

 

 

 80 

 

 

 80 

Changes in operating assets and liabilities, excluding

 

 

 

 

 

 

amounts acquired in business combinations:

 

 

 

 

 

 

(Increase)/decrease in accounts receivable

 

 

 (67,424)

 

 

 5,345 

Decrease in inventories

 

 

 403 

 

 

 1,302 

(Increase)/decrease in prepaid expenses

 

 

 (4,430)

 

 

 1,909 

Decrease in accounts payable and

 

 

 

 

 

 

other current liabilities

 

 

 (22,592)

 

 

 (43,012)

Change in current income taxes

 

 

 37,286 

 

 

 23,871 

Net change in lease assets and liabilities

 

 

 169 

 

 

 25 

Decrease/(increase) in other assets

 

 

 3,034 

 

 

 (12,243)

Increase in other liabilities

 

 

 951 

 

 

 13,332 

Other sources

 

 

 156 

 

 

 406 

Net cash provided by operating activities

 

 

 32,744 

 

 

 84,549 

Cash Flows from Investing Activities

 

 

 

 

 

 

Capital expenditures

 

   

 (13,280)

 

   

 (12,163)

Business combinations, net of cash acquired

 

 

 (225)

 

 

 (7,300)

Proceeds from sale of fixed assets

 

 

 112 

 

 

 86 

Other uses

 

 

 (281)

 

 

 (8)

Net cash used by investing activities

 

 

 (13,674)

 

 

 (19,385)

Cash Flows from Financing Activities

 

 

 

 

 

 

Purchases of treasury stock

 

 

 (33,222)

 

 

 (38,460)

Proceeds from exercise of stock options

 

 

 22,666 

 

 

 37,242 

Dividends paid

 

 

 (7,325)

 

 

 (6,050)

Capital stock surrendered to pay taxes on stock-based compensation

 

 

 (6,254)

 

 

 (5,725)

Change in cash overdrafts payable

 

 

 438 

 

 

 (2,115)

Other sources/(uses)

 

 

 159 

 

 

 (664)

Net cash used by financing activities

 

 

 (23,538)

 

 

 (15,772)

(Decrease)/Increase in Cash and Cash Equivalents

 

 

 (4,468)

 

 

 49,392 

Cash and cash equivalents at beginning of year

 

 

 178,350 

 

 

 263,958 

Cash and cash equivalents at end of period

 

$

 173,882 

 

$

 313,350 









 





 

 

 

 

 

 

 

 

 

 

 

 

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATING STATEMENTS OF INCOME

FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND 2024

(in thousands)(unaudited)



 

 

 

 

 

 

 

Chemed



 

VITAS

 

Roto-Rooter

 

Corporate

 

Consolidated

2025 (a)

 

 

 

 

 

 

 

 

 

 

 

 

Service revenues and sales

 

$

 407,400 

 

$

 239,543 

 

$

 -

 

$

 646,943 

Cost of services provided and goods sold

 

 

 312,807 

 

 

 117,723 

 

 

 -

 

 

 430,530 

Selling, general and administrative expenses

 

 

 26,538 

 

 

 62,649 

 

 

 16,400 

 

 

 105,587 

Depreciation

 

 

 5,196 

 

 

 8,237 

 

 

 12 

 

 

 13,445 

Amortization

 

 

 26 

 

 

 2,546 

 

 

 -

 

 

 2,572 

Other operating expense/income

 

 

 64 

 

 

 (13)

 

 

 -

 

 

 51 

Total costs and expenses

 

 

 344,631 

 

 

 191,142 

 

 

 16,412 

 

 

 552,185 

Income/(loss) from operations

 

 

 62,769 

 

 

 48,401 

 

 

 (16,412)

 

 

 94,758 

Interest expense

 

 

 (48)

 

 

 (132)

 

 

 (149)

 

 

 (329)

Intercompany interest income/(expense)

 

 

 5,296 

 

 

 3,930 

 

 

 (9,226)

 

 

 -

Other income—net

 

 

 48 

 

 

 10 

 

 

 1,187 

 

 

 1,245 

Income/(loss) before income taxes

 

 

 68,065 

 

 

 52,209 

 

 

 (24,600)

 

 

 95,674 

Income taxes

 

 

 (18,035)

 

 

 (12,265)

 

 

 6,383 

 

 

 (23,917)

Net income/(loss)

 

$

 50,030 

 

$

 39,944 

 

$

 (18,217)

 

$

 71,757 



 

 

 

 

 

 

 

 

 

 

 

 

2024 (b)

 

 

 

 

 

 

 

 

 

 

 

 

Service revenues and sales

 

$

 354,007 

 

$

 235,226 

 

$

 -

 

$

 589,233 

Cost of services provided and goods sold

 

 

 271,896 

 

 

 113,231 

 

 

 -

 

 

 385,127 

Selling, general and administrative expenses

 

 

 23,792 

 

 

 61,260 

 

 

 30,821 

 

 

 115,873 

Depreciation

 

 

 5,166 

 

 

 8,108 

 

 

 13 

 

 

 13,287 

Amortization

 

 

 26 

 

 

 2,495 

 

 

 -

 

 

 2,521 

Other operating expense

 

 

 7 

 

 

 85 

 

 

 -

 

 

 92 

Total costs and expenses

 

 

 300,887 

 

 

 185,179 

 

 

 30,834 

 

 

 516,900 

Income/(loss) from operations

 

 

 53,120 

 

 

 50,047 

 

 

 (30,834)

 

 

 72,333 

Interest expense

 

 

 (46)

 

 

 (117)

 

 

 (262)

 

 

 (425)

Intercompany interest income/(expense)

 

 

 5,194 

 

 

 3,442 

 

 

 (8,636)

 

 

 -

Other income—net

 

 

 29 

 

 

 22 

 

 

 12,526 

 

 

 12,577 

Income/(loss) before income taxes

 

 

 58,297 

 

 

 53,394 

 

 

 (27,206)

 

 

 84,485 

Income taxes

 

 

 (14,327)

 

 

 (12,541)

 

 

 7,400 

 

 

 (19,468)

Net income/(loss)

 

$

 43,970 

 

$

 40,853 

 

$

 (19,806)

 

$

 65,017 



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

The "Footnotes to Financial Statements" are integral parts of this financial information.









 











 

 

 

 

 

 

 

 

 

 

 

 

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATING SUMMARIES OF EBITDA

FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND 2024

(in thousands)(unaudited)



 

 

 

 

 

 

 

Chemed



 

VITAS

 

Roto-Rooter

 

Corporate

 

Consolidated

2025

 

 

 

 

 

 

 

 

 

 

 

 

Net income/(loss)

 

$

 50,030 

 

$

 39,944 

 

$

 (18,217)

 

$

 71,757 

Add/(deduct):

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 48 

 

 

 132 

 

 

 149 

 

 

 329 

Income taxes

 

 

 18,035 

 

 

 12,265 

 

 

 (6,383)

 

 

 23,917 

Depreciation

 

 

 5,196 

 

 

 8,237 

 

 

 12 

 

 

 13,445 

Amortization

 

 

 26 

 

 

 2,546 

 

 

 -

 

 

 2,572 

EBITDA

 

 

 73,335 

 

 

 63,124 

 

 

 (24,439)

 

 

 112,020 

Add/(deduct):

 

 

 

 

 

 

 

 

 

 

 

 

Intercompany interest expense/(income)

 

 

 (5,296)

 

 

 (3,930)

 

 

 9,226 

 

 

 -

Interest income

 

 

 (49)

 

 

 (10)

 

 

 (2,017)

 

 

 (2,076)

Stock option expense

 

 

 -

 

 

 -

 

 

 9,091 

 

 

 9,091 

Long-term incentive compensation

 

 

 -

 

 

 -

 

 

 2,657 

 

 

 2,657 

Adjusted EBITDA

 

$

 67,990 

 

$

 59,184 

 

$

 (5,482)

 

$

 121,692 



 

 

 

 

 

 

 

 

 

 

 

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

Net income/(loss)

 

$

 43,970 

 

$

 40,853 

 

$

 (19,806)

 

$

 65,017 

Add/(deduct):

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 46 

 

 

 117 

 

 

 262 

 

 

 425 

Income taxes

 

 

 14,327 

 

 

 12,541 

 

 

 (7,400)

 

 

 19,468 

Depreciation

 

 

 5,166 

 

 

 8,108 

 

 

 13 

 

 

 13,287 

Amortization

 

 

 26 

 

 

 2,495 

 

 

 -

 

 

 2,521 

EBITDA

 

 

 63,535 

 

 

 64,114 

 

 

 (26,931)

 

 

 100,718 

Add/(deduct):

 

 

 

 

 

 

 

 

 

 

 

 

Intercompany interest expense/(income)

 

 

 (5,194)

 

 

 (3,442)

 

 

 8,636 

 

 

 -

Interest income

 

 

 (29)

 

 

 (22)

 

 

 (4,192)

 

 

 (4,243)

Stock option expense

 

 

 -

 

 

 -

 

 

 9,026 

 

 

 9,026 

Severance arrangement

 

 

 -

 

 

 -

 

 

 5,337 

 

 

 5,337 

Long-term incentive compensation

 

 

 -

 

 

 -

 

 

 3,784 

 

 

 3,784 

Adjusted EBITDA

 

$

 58,312 

 

$

 60,650 

 

$

 (4,340)

 

$

 114,622 



 

 

 

 

 

 

 

 

 

 

 

 

The "Footnotes to Financial Statements" are integral parts of this financial information.

















 





 

 

 

 

 

 

 

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

RECONCILIATION OF ADJUSTED NET INCOME

(in thousands, except per share data)(unaudited)



 

 

 

 

 

 

 



 

 

 



 

Three Months Ended March 31,

 



 

2025

 

2024

 

Net income as reported

 

$

 71,757 

 

$

 65,017 

 

Add/(deduct) pre-tax cost of:

 

 

 

 

 

 

 

Stock option expense

 

 

 9,091 

 

 

 9,026 

 

Long-term incentive compensation

 

 

 2,657 

 

 

 3,784 

 

Amortization of reacquired franchise rights

 

 

 2,352 

 

 

 2,352 

 

Severance arrangement

 

 

 -

 

 

 5,337 

 

Add/(deduct) tax impacts:

 

 

 

 

 

 

 

Tax impact of the above pre-tax adjustments (1)

 

 

 (2,320)

 

 

 (2,388)

 

Excess tax benefits on stock compensation

 

 

 (463)

 

 

 (3,297)

 

Adjusted net income

 

$

 83,074 

 

$

 79,831 

 



 

 

 

 

 

 

 

Diluted Earnings Per Share As Reported

 

 

 

 

 

 

 

Net income

 

$

 4.86 

 

$

 4.24 

 

Average number of shares outstanding

 

 

 14,764 

 

 

 15,339 

 



 

 

 

 

 

 

 

Adjusted Diluted Earnings Per Share

 

 

 

 

 

 

 

Adjusted net income

 

$

 5.63 

 

$

 5.20 

 

Average number of shares outstanding

 

 

 14,764 

 

 

 15,339 

 



 

 

 

 

 

 

 

(1) The tax impact of pre-tax adjustments was calculated using the effective tax rate of the operating unit for which each adjustment is associated.



 

 

 

 

 

 

 

The "Footnotes to Financial Statements" are integral parts of this financial information.



 



 

 

 

 

 

 

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

OPERATING STATISTICS FOR VITAS SEGMENT

(unaudited)



 

 

 

 

 

 



Three Months Ended March 31,

 

OPERATING STATISTICS

2025

 

2024

 

Net revenue ($000) (c)

 

 

 

 

 

 

Homecare

$

 351,566 

 

$

 304,860 

 

Inpatient

 

 34,022 

 

 

 30,303 

 

Continuous care

 

 24,637 

 

 

 24,169 

 

Other

 

 5,344 

 

 

 4,084 

 

Subtotal

$

 415,569 

 

$

 363,416 

 

Room and board, net

 

 (3,525)

 

 

 (2,944)

 

Contractual allowances

 

 (2,319)

 

 

 (4,090)

 

Medicare cap allowance

 

 (2,325)

 

 

 (2,375)

 

Net Revenue

$

 407,400 

 

$

 354,007 

 

Net revenue as a percent of total before Medicare cap allowance

 

 

 

 

 

 

Homecare

 

 84.6 

%

 

 83.9 

%

Inpatient

 

 8.2 

 

 

 8.3 

 

Continuous care

 

 5.9 

 

 

 6.7 

 

Other

 

 1.3 

 

 

 1.1 

 

Subtotal

 

 100.0 

 

 

 100.0 

 

Room and board, net

 

 (0.8)

 

 

 (0.8)

 

Contractual allowances

 

 (0.6)

 

 

 (1.1)

 

Medicare cap allowance

 

 (0.6)

 

 

 (0.7)

 

Net Revenue

 

 98.0 

%

 

 97.4 

%

Days of care

 

 

 

 

 

 

Homecare

 

 1,632,569 

 

 

 1,447,912 

 

Nursing home

 

 307,108 

 

 

 283,158 

 

Respite

 

 9,995 

 

 

 7,752 

 

Subtotal routine homecare and respite

 

 1,949,672 

 

 

 1,738,822 

 

Inpatient

 

 29,704 

 

 

 26,645 

 

Continuous care

 

 22,620 

 

 

 24,037 

 

Total

 

 2,001,996 

 

 

 1,789,504 

 



 

 

 

 

 

 

Number of days in relevant time period

 

 90 

 

 

 91 

 

Average daily census ("ADC") (days)

 

 

 

 

 

 

Homecare

 

 18,140 

 

 

 15,911 

 

Nursing home

 

 3,412 

 

 

 3,112 

 

Respite

 

 111 

 

 

 85 

 

Subtotal routine homecare and respite

 

 21,663 

 

 

 19,108 

 

Inpatient

 

 330 

 

 

 293 

 

Continuous care

 

 251 

 

 

 264 

 

Total

 

 22,244 

 

 

 19,665 

 



 

 

 

 

 

 

Total Admissions

 

 18,139 

 

 

 16,911 

 

Total Discharges

 

 17,875 

 

 

 16,170 

 

Average length of stay (days)

 

 118.7 

 

 

 103.9 

 

Median length of stay (days)

 

 16.0 

 

 

 16.0 

 



 

 

 

 

 

 

ADC by major diagnosis

 

 

 

 

 

 

Cerebro

 

 44.7 

%

 

 43.6 

%

Neurological

 

 12.4 

 

 

 13.4 

 

Cancer

 

 9.6 

 

 

 10.1 

 

Cardio

 

 16.1 

 

 

 16.1 

 

Respiratory

 

 7.2 

 

 

 7.2 

 

Other

 

 10.0 

 

 

 9.6 

 

Total

 

 100.0 

%

 

 100.0 

%

Admissions by major diagnosis

 

 

 

 

 

 

Cerebro

 

 28.4 

%

 

 27.7 

%

Neurological

 

 6.5 

 

 

 7.5 

 

Cancer

 

 24.6 

 

 

 24.6 

 

Cardio

 

 15.0 

 

 

 15.6 

 

Respiratory

 

 11.6 

 

 

 10.8 

 

Other

 

 13.9 

 

 

 13.8 

 

Total

 

 100.0 

%

 

 100.0 

%



 

 

 

 

 

 

Estimated uncollectible accounts as a percent of revenues

 

 0.6 

%

 

 1.1 

%



 

 

 

 

 

 

Accounts receivable --

 

 

 

 

 

 

Days of revenue outstanding-excluding unapplied Medicare payments

 47.3 

 

 

 42.3 

 

Days of revenue outstanding-including unapplied Medicare payments

 44.5 

 

 

 34.3 

 



 

 

 

 

 

 

The "Footnotes to Financial Statements" are integral parts of this financial information.



 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

 

FOOTNOTES TO FINANCIAL STATEMENTS

 

FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND 2024

 

(unaudited)

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

Included in the results of operations for 2025 are the following significant credits/(charges) which may not be indicative of ongoing operations

 



(in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

Three Months Ended March 31, 2025

 



 

 

VITAS

 

Roto-Rooter

 

Corporate

 

Consolidated

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



Stock option expense

 

$

 -

 

$

 -

 

$

 (9,091)

 

$

 (9,091)

 



Long-term incentive compensation

 

 

 -

 

 

 -

 

 

 (2,657)

 

 

 (2,657)

 



Amortization of reacquired franchise agreements

 

 

 -

 

 

 (2,352)

 

 

 -

 

 

 (2,352)

 



Pretax impact on earnings

 

 

 -

 

 

 (2,352)

 

 

 (11,748)

 

 

 (14,100)

 



Excess tax benefits on stock compensation

 

 

 -

 

 

 -

 

 

 463 

 

 

 463 

 



Income tax benefit on the above

 

 

 -

 

 

 546 

 

 

 1,774 

 

 

 2,320 

 



After-tax impact on earnings

 

$

 -

 

$

 (1,806)

 

$

 (9,511)

 

$

 (11,317)

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

(b)

Included in the results of operations for 2024 are the following significant credits/(charges) which may not be indicative of ongoing operations

 



(in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

Three Months Ended March 31, 2024

 



 

 

VITAS

 

Roto-Rooter

 

Corporate

 

Consolidated

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



Stock option expense

 

$

 -

 

$

 -

 

$

 (9,026)

 

$

 (9,026)

 



Severence arrangement

 

 

 -

 

 

 -

 

 

 (5,337)

 

 

 (5,337)

 



Long-term incentive compensation

 

 

 -

 

 

 -

 

 

 (3,784)

 

 

 (3,784)

 



Amortization of reacquired franchise agreements

 

 

 -

 

 

 (2,352)

 

 

 -

 

 

 (2,352)

 



Pretax impact on earnings

 

 

 -

 

 

 (2,352)

 

 

 (18,147)

 

 

 (20,499)

 



Excess tax benefits on stock compensation

 

 

 -

 

 

 -

 

 

 3,297 

 

 

 3,297 

 



Income tax benefit on the above

 

 

 -

 

 

 548 

 

 

 1,840 

 

 

 2,388 

 



After-tax impact on earnings

 

$

 -

 

$

 (1,804)

 

$

 (13,010)

 

$

 (14,814)

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

(c)

VITAS has 11 large (greater than 450 ADC), 23 medium (greater than 200 but less than 450 ADC) and 23 small (less than 200 ADC) hospice programs.  Of Vitas' 34 Medicare provider numbers, for the trailing 12 months, 24 provider numbers have a Medicare cap cushion of greater than 10%, four provider numbers have a Medicare cap cushion between 0% and 10%, and six provider numbers have a Medicare cap liability.