UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x Quarterly Report Under Section 13 or 15 (d) of the Securities Exchange Act of 1934 for the Quarterly Period Ended June 30, 2025 o Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number: 1-8351 Large Accelerated Filer x Accelerated Filer o Non-accelerated Filer o Smaller Reporting Company o CHEMED CORPORATION (Exact name of registrant as specified in its char ...

Chemed (CHE) Q2 2025 Earnings Call July 30, 2025 10:00 AM ET Company ParticipantsHolley Schmidt - VP & Assistant ControllerKevin McNamara - CEO & PresidentMichael Witzeman - EVP, CFO & ControllerBen Hendrix - Vice PresidentConference Call ParticipantsBrian Tanquilut - Senior Analyst - Healthcare Services & HCIT/Digital Health Equity ResearchJoanna Gajuk - Equity Research AnalystOperatorHello, and welcome to Chemed Corporation's Second Quarter twenty twenty five Earnings Conference Call. At this time, all pa ...

Chemed (CHE) Q2 2025 Earnings Call July 30, 2025 10:00 AM ET Speaker0Hello, and welcome to Chemed Corporation's Second Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. I would now like to turn the conference over to Holly Schmidt. You may begin.Speaker1Good morning. Our conference call this morning will review the financial results for the 2025 ended 06/30/2025. Before ...

CONTACT: Michael D. Witzeman (513) 762-6714 Chemed Reports Second-Quarter 2025 Results and Announces Executive Management Departure CINCINNATI, July 29, 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 second quarter ended June 30, 2025, versus the compara ...

Core Viewpoint - Astrana Health, Inc. (ASTH) is currently positioned as a better value investment compared to Chemed (CHE) based on Zacks Rank and various valuation metrics [3][7]. Valuation Metrics - ASTH has a Zacks Rank of 1 (Strong Buy), indicating a positive earnings outlook, while CHE has a Zacks Rank of 4 (Sell) [3]. - The forward P/E ratio for ASTH is 14.68, significantly lower than CHE's forward P/E of 20.43, suggesting that ASTH is undervalued relative to CHE [5]. - ASTH's PEG ratio is 0.85, indicating better expected earnings growth compared to CHE's PEG ratio of 2.09, which suggests overvaluation [5]. - ASTH has a P/B ratio of 1.74, while CHE's P/B ratio is 5.83, further indicating that ASTH is more attractively priced [6]. Value Grades - ASTH has received a Value grade of A, reflecting its strong valuation metrics, whereas CHE has a Value grade of C, indicating it is less favorable for value investors [6].

Company Overview - Chemed Corporation (CHE) provides healthcare and maintenance services primarily in the United States, operating in the VITAS and Roto-Rooter sectors [1]. VITAS Sector - The VITAS sector focuses on palliative care, which is a specialized area aimed at improving the quality of life for patients with serious illnesses [1]. Roto-Rooter Sector - The Roto-Rooter sector provides plumbing and drain cleaning services, contributing to the company's overall service offerings [1]. Investment Analysis Approach - The company emphasizes a fundamental analysis approach, screening for undervalued companies based on balance sheets, income statements, and cash flow statements [1]. - Valuation ratios and industry trends are key components of the analysis process to identify potential investment opportunities [1].

A month has gone by since the last earnings report for Chemed (CHE) . Shares have added about 2.7% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Chemed due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.How Have Estimates Been Moving Since Then?Analysts were quiet d ...

Summary of Kemet's Conference Call Company Overview - Kemet is one of the largest hospice providers, with a significant focus on its VITAS business segment [2][41]. Key Industry Insights - The hospice industry is experiencing growth, but there are concerns regarding the Medicare cap, which has been in place since 1983. This cap is seen as a potential limitation on growth due to its impact on patient admissions and revenue [3][5][6]. - The company has been proactive in managing the Medicare cap, utilizing analytical capabilities to forecast and strategize around it [5][6][30]. Financial Performance and Projections - VITAS has experienced a 15% growth in average daily census (ADC) over the past two and a half years, but the company is now projecting a more sustainable growth rate of 8-10% for the foreseeable future [6][22]. - The average length of stay for patients has increased due to staffing challenges during the pandemic, but the company is working to return to its historical admission rates from hospitals [10][12][22]. Medicare Cap Discussion - The Medicare cap has been a topic of concern, with discussions around its implications for the business. The company has been transparent about its Medicare cap cushion, which is lower than initially anticipated [17][22]. - The company is engaged in ongoing discussions with MedPAC regarding potential changes to the Medicare cap policy, advocating for adjustments that would better reflect the current healthcare landscape [30][31]. Recent Developments - Kemet has made its first acquisition in years by acquiring Covenant, indicating a shift towards a more aggressive acquisition strategy, particularly in Florida [41][49]. - The company is actively pursuing additional acquisition opportunities and has been more proactive in reaching out to potential targets [51][52]. Operational Strategies - The company has emphasized the importance of maintaining a strong workforce and has been successful in growing its net clinical capacity over the past 11 quarters [39][40]. - Kemet is focusing on enhancing its market presence by applying for new licenses in various states, including North Carolina, and expanding its operations in Florida [47][48]. Challenges and Market Dynamics - The company faces challenges related to staffing and competition from healthcare systems that have their own hospice services, which can affect referral patterns [8][10][35]. - There is a recognition of the need to adapt to changing market conditions and to manage costs effectively, particularly in light of potential tariffs and supply chain issues [54][58]. Conclusion - Kemet is navigating a complex healthcare environment with a focus on sustainable growth, proactive management of regulatory challenges, and strategic acquisitions to enhance its market position [41][51].

Financial Performance & Growth - Chemed's service revenues and sales increased by 74% year-over-year[9] - Chemed's adjusted net income increased by 138% year-over-year[9] - Chemed's adjusted diluted EPS from continuing operations increased by 139% year-over-year[9] - VITAS's service revenues and sales increased by 164% year-over-year[9] - VITAS's adjusted net income increased by 389% year-over-year[9] Roto-Rooter Analysis - Roto-Rooter's service revenues and sales decreased by (52%) year-over-year[9] - Roto-Rooter's adjusted net income decreased by (135%) year-over-year[9] - Roto-Rooter residential customers represent 72% of revenues, while commercial customers represent 25% of revenues[26] VITAS Healthcare Overview - VITAS Healthcare operates in 16 states and the District of Columbia[47] - VITAS Healthcare revenues were $407 million in Q1 2025[47]

Financial Performance - Service revenues and sales for Q1 2025 increased by 9.8% to $646,943,000 compared to $589,233,000 in Q1 2024[118] - Net income for Q1 2025 was $71,757,000, up from $65,017,000 in Q1 2024, representing an increase of 11.8%[104] - Adjusted EBITDA for Q1 2025 was $121,692,000, with an adjusted EBITDA margin of 18.8%, down from 19.5% in Q1 2024[104] - Total service revenues and sales for Q1 2025 reached $646,943,000, an increase from $589,233,000 in Q1 2024, representing a growth of 9.8%[129] - Net income for Q1 2025 was $71,757,000, compared to $65,017,000 in Q1 2024, reflecting an increase of 10.7%[129] - Adjusted EBITDA for Q1 2025 was $121,692,000, compared to $114,622,000 in Q1 2024, reflecting a year-over-year increase of 6.5%[134] - Adjusted net income for Q1 2025 was $83,074,000, up from $79,831,000 in Q1 2024, which is an increase of 4.0%[134] Segment Performance - VITAS experienced a 15.1% increase in service revenues, driven by an 11.9% increase in days-of-care and a 3.2% increase in Medicare reimbursement rates[105] - VITAS segment net income for Q1 2025 was $50,030,000, up from $43,970,000 in Q1 2024, a growth of 13.4%[126] - Roto-Rooter saw a 1.8% increase in net revenue, with excavation and water restoration revenues increasing by 9.6% and 16.0%, respectively[118] - Roto-Rooter segment net income decreased to $39,944,000 in Q1 2025 from $40,853,000 in Q1 2024, a decline of 2.2%[126] - VITAS segment after-tax earnings as a percentage of revenue in Q1 2025 was 12.3%, slightly down from 12.4% in Q1 2024[126] - Roto-Rooter's after-tax earnings as a percentage of revenue decreased to 16.7% in Q1 2025 from 17.4% in Q1 2024[127] Expenses and Margins - The consolidated gross margin decreased to 33.5% in Q1 2025 from 34.6% in Q1 2024, with VITAS maintaining a gross margin of 23.2%[122] - SG&A expenses for Q1 2025 totaled $105,587,000, a decrease from $115,873,000 in Q1 2024, primarily due to lower long-term incentive compensation[122] - Total other income - net for Q1 2025 was $1,245,000, significantly lower than $12,577,000 in Q1 2024, a decrease of 90.1%[123] - Corporate after-tax expenses decreased by 8.0% in Q1 2025 compared to Q1 2024, primarily due to a $6.3 million decrease in stock-based compensation[127] Tax and Compliance - The effective tax rate for Q1 2025 was 25.0%, up from 23.0% in Q1 2024[124] - Income tax provision for Q1 2025 was $23,917,000, compared to $19,468,000 in Q1 2024, an increase of 22.5%[124] - The company is in compliance with all financial covenants as of March 31, 2025, and expects to remain compliant[113] Operational Metrics - The average daily census for homecare in Q1 2025 was 18,140, an increase from 15,911 in Q1 2024, showing a growth of 14.0%[136] - Total admissions in Q1 2025 reached 18,139, compared to 16,911 in Q1 2024, marking an increase of 7.2%[136] - The average length of stay in Q1 2025 was 118.7 days, compared to 103.9 days in Q1 2024, reflecting a significant increase of 14.6%[136] - Estimated uncollectible accounts as a percentage of revenues decreased to 0.6% in Q1 2025 from 1.1% in Q1 2024, indicating improved revenue collection efficiency[136] Debt and Interest Rate Risk - The company had no variable rate debt outstanding as of March 31, 2025, mitigating interest rate risk exposure[138] - For each $10 million borrowed under the credit facility, a 100 basis points change in interest rates would affect annual interest expense by $100,000[138] Acquisition Impact - The Covenant acquisition contributed approximately $11.5 million to $12.5 million in revenue and $1.8 million to $2.0 million in net income for Q1 2025[107]