Guidance and Comfort Level - The company expresses comfort with the VITAS guidance, indicating potential conservatism in the estimates and a focus on balancing the patient mix towards a more even distribution of short- and long-stay patients, which could lead to upward potential through 2026 [2] - Confidence is also noted in the Roto-Rooter guidance, despite challenges faced in the previous years and significant misses in early year guidance [3]

Summary of Chemed (NYSE:CHE) FY Conference Call - March 19, 2026 Company Overview - **Company**: Chemed Corporation - **Segments**: VITAS (hospice care) and Roto-Rooter (plumbing and water restoration services) Key Points on VITAS - **Guidance Confidence**: The company is comfortable with VITAS guidance, indicating potential conservatism in projections. They aim to balance the patient mix between short and long-stay patients, which could enhance growth in 2026 [2][3] - **Volume Trends**: Strong volume performance was noted coming out of Q4 2025, which is expected to guide overall growth potential for 2026 [6] - **Florida Market**: Florida's unique Certificate of Need (CON) environment allows for rapid growth. The company is optimistic about its growth trajectory in Florida compared to other regions, where growth rates are slower [7][8] - **Medicare ADC Growth**: The company has seen consistent growth in Average Daily Census (ADC) in Medicare, particularly in Florida, indicating a positive trend in patient admissions [10][11] - **Hospital Admissions**: The ideal hospital admission rate is targeted between 42%-45%. The company has successfully managed to reduce this percentage while increasing overall volumes [11][12] - **Long-term Outlook**: The company feels confident about its long-term position in Florida, citing sufficient hospital patient base availability to maintain a balanced patient mix [16][17] - **New Market Expansion**: New locations in Florida (Pasco, Marion, Pinellas) are expected to reach profitability within 12 months, contributing significantly to organic growth [21][22][23] - **Margin Management**: The company anticipates returning to pre-pandemic margin levels, targeting margins of 18%-18.5% in the long term, with gradual improvements expected [27][26] Key Points on Roto-Rooter - **Growth Projections**: Roto-Rooter is projecting a top-line growth of 3%-3.5% for 2026, with improvements expected from reduced water restoration write-offs and a slight increase in lead volume [28][29] - **Marketing Costs**: Elevated marketing costs are anticipated to remain stable, impacting EBITDA. The company is focused on managing these costs effectively [30][34] - **Water Restoration Challenges**: The company is centralizing billing and collections for water restoration to improve efficiency and collection rates, which have historically varied across branches [36][37] - **Technology Integration**: Roto-Rooter is testing new technology to improve documentation for insurance claims, which is expected to enhance collection rates [40] - **Seasonality Impact**: The first quarter is expected to be challenging due to tough comparisons with the previous year, but the company remains on track with its overall metrics [44][46] - **Franchise Acquisition Strategy**: The company is actively pursuing franchise acquisitions, offering higher multiples than before, which may reduce ROI but is expected to yield strategic benefits [48][49] - **Strategic Alternatives**: If Roto-Rooter does not show recovery in 2026, the company is open to considering strategic alternatives, including potential divestitures [50] Additional Insights - **Market Conditions**: The company is navigating challenges related to weather impacts on operations and the competitive landscape for lead generation [45][46] - **Long-term Viability**: There is a strong belief in the long-term viability of both segments, with a focus on improving operational efficiencies and patient care [50]

Core Viewpoint - Chemed Corporation will deliver a virtual presentation at the Oppenheimer 36th Annual Healthcare Conference on March 19, 2026, at approximately 9:20 a.m. (ET) [1] Company Overview - Chemed Corporation is listed on the New York Stock Exchange and is headquartered in Cincinnati, Ohio [3] - The company operates two wholly owned subsidiaries: VITAS Healthcare, the largest provider of end-of-life hospice care in the nation, and Roto-Rooter, the leading provider of plumbing and drain cleaning services [3] Presentation Details - The virtual presentation will be webcast live and accessible through the Chemed website, with a replay available within 24 hours for 90 days [2]

Core Insights - Chemed Corporation (CHE) reported a fourth-quarter 2025 adjusted earnings per share (EPS) of $6.42, a 6% decline year over year, missing the Zacks Consensus Estimate by 8.55% [1] - The company's GAAP EPS was $6.02, reflecting a 2% increase from the previous year [1] - For the full year, the adjusted EPS was $21.55, down 6.8% from the prior year [1] Revenue Performance - Revenues for the fourth quarter were $639.3 million, nearly flat compared to the same quarter last year, but fell short of the Zacks Consensus Estimate by 2.55% [2] - Total revenues for 2025 reached $2.53 billion, marking a 4.1% increase from the previous year [2] - Following the earnings announcement, CHE's stock price dropped nearly 15%, closing at $396.63 [2] Segment Analysis - Chemed operates through two subsidiaries: VITAS, a provider of end-of-life care, and Roto-Rooter, a plumbing and drain cleaning service [3] - VITAS reported net patient revenues of $418.8 million in Q4, a 1.9% increase year over year, driven by a 1.3% rise in days-of-care and a 2.2% increase in Medicare reimbursement rates [4] - Roto-Rooter sales were $220.6 million, down 3.7% year over year, with commercial revenues increasing by 1.6% but residential revenues decreasing by 3.1% [5][6] Margin Performance - Gross profit decreased by 5% year over year to $222.3 million, with gross margin contracting by 181 basis points to 34.8% due to rising service costs [7] - Selling, General and Administrative (SG&A) expenses rose by 1.2% to $105.5 million, while adjusted operating profit fell by 10.1% to $116.8 million, leading to a contraction in adjusted operating margin by 202 basis points to 18.3% [7] Liquidity and Capital Structure - At the end of Q4, Chemed had cash and cash equivalents of $74.5 million, down from $178.4 million at the end of 2024, with no current or long-term debt [9] - The cumulative net cash from operating activities was $388.3 million, compared to $417.5 million in the previous year [9] - The company repurchased 400,000 shares for $174.6 million, averaging $436.39 per share, with $127.3 million remaining under its share repurchase authorization [10] 2026 Guidance - For 2026, Chemed expects VITAS revenues to increase by 5.5-16.5% from 2025 levels, with total revenue estimates at $2.67 billion, indicating a 5.5% year-over-year improvement [11] - Adjusted EPS for 2026 is projected to be between $23.25 and $24.25, while the Zacks Consensus Estimate is at $25.23, suggesting a 17.1% growth from 2025 [11] Management Outlook - Management anticipates 2026 to be a transition year for both segments, with VITAS implementing strategies to address potential Medicare Cap billing limitations [13]

Company Overview - Chemed Corporation operates in two segments: VITAS, providing hospice and palliative care, and Roto-Rooter, offering plumbing and related services[11]. - The Company had a total of 15,811 employees as of December 31, 2025, including subsidiaries Roto-Rooter and VITAS[107]. - Roto-Rooter operates 356 leased and owned office and service facilities across 34 states, while VITAS has 182 facilities and 28 inpatient units in 17 states and the District of Columbia[188]. Revenue Sources - Over 90% of VITAS' revenue comes from the Medicare program, indicating a significant reliance on government funding[21]. - Over 95% of VITAS' revenue comes from Medicare and Medicaid payments, primarily on a "per diem" basis, making cost management critical for profitability[53]. - Medicaid reimbursements accounted for approximately 3% of VITAS' revenues in 2025, with state Medicaid programs required to pay at least the same rates as Medicare[69]. - The routine home care rate is tiered, with a higher rate for the first 60 days of care and a lower rate thereafter, plus a Service Intensity Add-on for direct home care visits[58]. - VITAS faces potential reductions in Medicare and Medicaid payments, which could materially decline its net patient service revenue and profits[132]. Regulatory Compliance - VITAS must comply with extensive federal and state regulations to maintain its hospice operations, including conditions of participation for Medicare[32]. - The company maintains an internal regulatory compliance review program to ensure adherence to health regulatory laws[101]. - VITAS' hospices must comply with state licensure requirements, and non-compliance could adversely affect operations and participation in Medicare and Medicaid programs[52]. - Federal and state laws regulate various aspects of the hospice industry, impacting VITAS' operations significantly[100]. - The company cannot assure that its practices will be found compliant with applicable health regulatory laws upon review, which could adversely affect its reputation[101]. Competition and Market Position - The hospice care industry is highly competitive, with VITAS being one of the largest providers in a fragmented market where approximately 20% of providers are not-for-profit[25]. - Roto-Rooter faces competition from local and regional firms, with private equity investments increasing in the home service sector[23]. - Roto-Rooter faces intense competition from numerous fragmented competitors, impacting its ability to maintain or increase customer calls and jobs[123][126]. - VITAS' growth is heavily reliant on maintaining relationships with referral sources, and any loss could adversely affect its profitability[135]. - Competition in the hospice industry is intense, and increased competition could limit VITAS' market position and profitability[145]. Financial Performance and Strategy - The company has engaged in twelve significant acquisitions or divestitures since its inception, focusing on maximizing shareholder value[10]. - The company does not expect material investment in new products or services, focusing instead on improving existing offerings[15]. - The company has significant debt obligations and restrictions on its borrowing capacity, which could adversely affect operational flexibility and financial condition[162]. - Future dividends are contingent upon the Company's earnings, financial condition, and compliance with debt covenants[195]. Risks and Liabilities - Liability claims pose a risk to VITAS, and inadequate insurance coverage could have a material adverse effect on its financial condition[149]. - The company is exposed to natural disasters, particularly hurricanes in Florida, which could impede operations and billing for services[161]. - The company faces risks associated with potential litigation, which could result in substantial damages and affect business operations[168]. - Tariffs on products essential to operations could increase costs and adversely affect margins, particularly for VITAS and Roto-Rooter services[174]. Cybersecurity - A cybersecurity attack in October 2025 allowed unauthorized access to a significant amount of Protected Health Information (PHI), but the threat actor was unable to insert malicious tools into the system[153]. - The company has strengthened its cybersecurity measures following the attack and maintains commercial insurance related to cyberattacks, with costs above a $500,000 deductible covered by insurance[183]. - The company is regularly targeted by cyber threats and must continuously monitor and develop its IT infrastructure to mitigate risks associated with unauthorized access and misuse[157]. - The Audit Committee receives regular reports on cybersecurity issues, which include discussions on risk management processes[185]. Employee and Workforce Management - VITAS paid over $39.2 million in bonuses through the "Difference Maker Program" to retain healthcare workers during the pandemic[116]. - The Company emphasizes the importance of a diverse and inclusive workforce to foster innovation and better serve its diverse customer base[117]. - VITAS is experiencing a nationwide shortage of qualified nurses and aides, which could adversely affect its ability to provide quality services[144]. Environmental and Safety Compliance - The company is currently in compliance with environmental laws and regulations, with capital expenditures for compliance during 2024 and 2025 not material[104]. - The company is subject to environmental and safety compliance costs that could increase expenses and liabilities, potentially impacting financial performance[165]. - The California Air Resources Board is expected to release draft regulations in Q1 2026 regarding climate-related financial risk reports[105]. Future Outlook - Future adjustments to Medicare and Medicaid payment rates may adversely impact VITAS' net patient service revenue and profitability[72]. - The Company acknowledges the potential impact of future public health concerns, similar to the COVID-19 pandemic, which could disrupt operations and service delivery[172]. - Managed care organizations are consolidating, which may exert pressure on VITAS to reduce costs, potentially impacting its financial condition[147].

Core Viewpoint - Johnson Fistel, PLLP is investigating potential claims on behalf of investors of Chemed Corporation due to missed earnings expectations and revenue shortfalls, which may indicate non-compliance with federal securities laws [1][3][4]. Financial Performance - Chemed reported its fourth quarter 2025 financial results with adjusted earnings per share of $6.42 and revenue of $639.3 million, which missed consensus estimates by approximately $0.61 per share and $19.8 million in revenue [3]. Shareholder Impact - Following the financial disclosures, Chemed's shares experienced a decline on February 26, 2026, indicating a negative market reaction to the earnings miss [3]. Legal Investigation - Johnson Fistel is focusing on whether Chemed's executive officers acted in compliance with federal securities laws, as the investigation aims to determine if investor losses can be recovered [1][4]. Firm Background - Johnson Fistel, PLLP is a recognized shareholder-rights law firm with a strong track record in securities class action lawsuits, having recovered approximately $90.7 million for clients in previous cases [5][6].

Financial Data and Key Metrics Changes - The fourth quarter of 2025 saw VITAS' net revenue at $418.8 million, a 1.9% increase compared to the prior year, driven by a 1.3% increase in days of care and a 2.2% increase in Medicare reimbursement rates [14] - Roto-Rooter revenue declined by 3.7% in the fourth quarter of 2025 compared to the same period in 2024, with branch residential revenue decreasing by 3.1% [9][16] - Adjusted EBITDA for VITAS was $91.6 million, a decline of 1.7% year-over-year, while Roto-Rooter's adjusted EBITDA totaled $47.5 million, a decrease of 21.1% compared to the prior year [15][21] Business Line Data and Key Metrics Changes - VITAS admissions totaled 17,419 in the fourth quarter, reflecting a 6% improvement from the same period in 2024, with hospital-based admissions making up 44.8% of total admissions [4][5] - Roto-Rooter branch commercial revenue increased by 1.6%, while residential revenue declined by 3.1%, with water restoration revenue declining by 10.3% [9][16][19] - The average revenue per patient day for VITAS was $288.01, an increase of 86 basis points from the prior year [15] Market Data and Key Metrics Changes - The average daily census for VITAS was 22,462 patients, an increase of 1.3%, with hospital-directed admissions increasing by 9.9% [26] - The company received a certificate of need to operate in Manatee County, Florida, which represents a significant growth opportunity [8][28] Company Strategy and Development Direction - VITAS is focusing on balancing its admission patterns to improve revenue growth and EBITDA margins, particularly by increasing long-stay patient admissions [8][27] - Roto-Rooter is expanding its commercial business by hiring commercial business managers, which has shown positive preliminary results [9][19] - The company plans to centralize billing and collections for water restoration to improve efficiency and reduce write-offs [18][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the Florida Medicare cap issue is behind them and anticipates a transition year for both VITAS and Roto-Rooter in 2026 [11][12] - The company expects VITAS revenue to grow by 5.5%-6.5% in 2026, while Roto-Rooter is forecasted to achieve revenue growth of 3%-3.5% [22][23] - Management acknowledged the challenges faced by Roto-Rooter due to increased marketing costs and write-offs but remains optimistic about future growth opportunities [12][41] Other Important Information - The company repurchased 400,000 shares of Chemed stock at an average price of $436.39, funded by free cash flow from both subsidiaries [21] - The estimated earnings per diluted share for 2026 is projected to be in the range of $23.25-$24.25, compared to $21.55 for 2025 [24] Q&A Session Summary Question: Confidence in Roto-Rooter revenue growth in 2026 - Management highlighted improvements in paid leads and a transition from free leads to paid leads as key factors for expected revenue growth [32][34] Question: VITAS revenue and EBITDA progression - Management indicated that the focus on short-stay admissions has impacted revenue growth, but a return to a normalized growth rate is expected as patient mix is adjusted [50][51] Question: Structural changes in Roto-Rooter and the plumbing industry - Management acknowledged challenges from private equity and changes in lead generation but expressed confidence in Roto-Rooter's ability to adapt and grow [53][56]

Financial Data and Key Metrics Changes - VITAS' net revenue for Q4 2025 was $418.8 million, a 1.9% increase compared to the prior year, driven by a 1.3% increase in days of care and a 2.2% increase in Medicare reimbursement rates [14] - Adjusted EBITDA for VITAS, excluding Medicare cap, was $91.6 million, a decline of 1.7% year-over-year, with an adjusted EBITDA margin of 21.7%, down 79 basis points from the previous year [15] - Roto-Rooter revenue declined by 3.7% in Q4 2025 compared to Q4 2024, with adjusted EBITDA at $47.5 million, a decrease of 21.1% year-over-year, and an adjusted EBITDA margin of 21.5%, down 477 basis points [9][21] Business Line Data and Key Metrics Changes - VITAS admissions totaled 17,419 in Q4 2025, a 6% improvement from Q4 2024, with hospital-based admissions making up 44.8% of total admissions, the highest post-pandemic [4][5] - Roto-Rooter branch residential revenue decreased by 3.1%, with plumbing revenue increasing by 6.3% while water restoration revenue declined by 10.3% [16] - Roto-Rooter branch commercial revenue increased by 1.6%, with excavation revenue up 10.9% and drain cleaning revenue up 2% [19] Market Data and Key Metrics Changes - The average daily census for VITAS was 22,462 patients, a 1.3% increase, with hospital-directed admissions up 9.9% and home-based admissions up 4.1% [26] - The average revenue per patient day for VITAS was $288.01, an increase of 86 basis points from the prior year [15] - Roto-Rooter experienced a significant increase in paid leads by 9.4% compared to Q4 2024, although total leads remained flat due to a decline in natural leads [9][10] Company Strategy and Development Direction - VITAS aims to balance its admission patterns to improve revenue growth and EBITDA margins, with a focus on long-stay patients to enhance financial performance [8][29] - Roto-Rooter is expanding its commercial business by hiring commercial business managers, which has shown promising results in branches where they were implemented [19] - The company is pursuing strategic acquisitions and new CON opportunities in Florida to drive growth for VITAS [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the Florida Medicare cap issue is resolved, allowing for a return to a more sustainable growth pattern for VITAS [11][29] - Roto-Rooter is expected to face a transition year in 2026, with anticipated modest growth driven by improved lead generation and billing practices [12][42] - The company believes that the difficult operating environment is temporary and that long-term growth prospects remain intact for both VITAS and Roto-Rooter [11][60] Other Important Information - The company repurchased 400,000 shares of Chemed stock at an average price of $436.39, funded by free cash flow from both subsidiaries [21] - For 2026, VITAS revenue is projected to grow by 5.5%-6.5%, while Roto-Rooter is expected to achieve revenue growth of 3%-3.5% [22][23] Q&A Session Summary Question: What gives confidence in Roto-Rooter revenue growth in 2026 after flat revenues in 2025? - Management highlighted improvements in paid leads and a transition from free leads to paid leads, which is expected to stabilize and grow revenue [32][35] Question: Are long-term margin targets still achievable for Roto-Rooter? - Management indicated that achieving 24%-25% margins is still possible if revenue growth normalizes, but the path is less clear due to increased marketing costs [44][46] Question: What is the outlook for VITAS revenue and EBITDA progression in 2026? - Management noted that a shift back to long-stay patients is necessary for revenue growth, with expectations for gradual improvement throughout the year [50][51] Question: Is there a structural change in the plumbing industry affecting Roto-Rooter? - Management acknowledged challenges from private equity and changes in lead generation but expressed confidence that these issues are being addressed and that Roto-Rooter can return to stable growth [54][60]

Financial Data and Key Metrics Changes - VITAS' net revenue for Q4 2025 was $418.8 million, a 1.9% increase compared to the prior year, driven by a 1.3% increase in days of care and a 2.2% increase in Medicare reimbursement rates [12] - Adjusted EBITDA for VITAS, excluding Medicare cap, was $91.6 million, a decline of 1.7% year-over-year, with an adjusted EBITDA margin of 21.7%, down 79 basis points from the prior year [13] - Roto-Rooter revenue declined by 3.7% in Q4 2025 compared to the same period in 2024, with adjusted EBITDA at $47.5 million, a decrease of 21.1% [8][18] Business Line Data and Key Metrics Changes - VITAS admissions totaled 17,419 in Q4 2025, a 6% improvement from Q4 2024, with hospital-directed admissions increasing by 9.9% [4][23] - Roto-Rooter branch residential revenue decreased by 3.1%, while branch commercial revenue increased by 1.6% [8][14] - Water restoration revenue declined by 10.3%, attributed to increased scrutiny from insurance companies leading to higher write-offs [15][17] Market Data and Key Metrics Changes - The percentage of total admissions from hospitals in Florida was 44.8%, indicating a recovery in the patient mix post-pandemic [5] - Average revenue per patient day for VITAS was $288.01, an increase of 86 basis points from the prior year [13] - The average daily census for VITAS was 22,462 patients, a 1.3% increase, with a median length of stay of 17 days [23] Company Strategy and Development Direction - VITAS is focusing on balancing admissions between hospital-based and other pre-admission locations to improve revenue growth and EBITDA margins [6][24] - Roto-Rooter is expanding its commercial business by hiring commercial business managers, which has shown positive preliminary results [8][17] - The company plans to pursue strategic acquisitions and new start opportunities in Florida and other CON states to drive growth [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the Florida Medicare cap issue is resolved, allowing for a return to normal growth patterns for VITAS [10][26] - Roto-Rooter is expected to face a challenging operating environment but anticipates modest growth driven by improved lead generation and billing practices [10][11] - The company expects 2026 to be a transition year for both subsidiaries, with VITAS revenue growth projected at 5.5%-6.5% and Roto-Rooter at 3%-3.5% [19][20] Other Important Information - The company repurchased 400,000 shares of Chemed stock at an average price of $436.39, funded by free cash flow from both subsidiaries [18] - The estimated Medicare cap billing limitations for 2026 are $9.5 million, significantly lower than $27.2 million in 2025 [19] Q&A Session Summary Question: What gives confidence in Roto-Rooter revenue growth in 2026 after flat revenues in 2025? - Management highlighted improvements in paid leads and a recovery in natural leads visibility, which are expected to drive revenue growth [30][34] Question: Are the long-term margin targets still achievable for Roto-Rooter? - Management indicated that achieving 24%-25% margins is still possible if Roto-Rooter can return to normalized revenue growth [42][44] Question: What is the outlook for VITAS revenue and EBITDA progression in 2026? - Management expects a return to normalized growth rates of 7%-9% as the patient mix is adjusted, with revenue growth building throughout the year [49][50]

Revenue Performance - VITAS net revenue for Q4 2025 was $418.8 million, a 1.9% increase year-over-year, driven by a 1.3% increase in days-of-care and a 2.2% increase in Medicare reimbursement rates[3]. - Roto-Rooter generated revenue of $220.6 million in Q4 2025, a decrease of 3.7% compared to the prior year, with commercial revenue increasing by 1.6% and residential revenue decreasing by 3.1%[10][11]. - Service revenues for Q4 2025 were $639,337,000, a slight decrease from $639,993,000 in Q4 2024, representing a year-over-year decline of 0.1%[36]. - Consolidated service revenues and sales for 2025 reached $2,529,978, an increase of 4.0% from $2,431,287 in 2024[46]. - The VITAS segment reported service revenues of $1,630,101 in 2025, up from $1,530,978 in 2024, indicating a growth of 6.5%[46]. - Roto-Rooter segment service revenues were $899,877 in 2025, slightly down from $900,309 in 2024, a decrease of 0.5%[46]. - Net revenue for the three months ended December 31, 2025, was $418.76 million, an increase from $411.01 million in the same period of 2024, representing a growth of 0.4%[55]. - The total net revenue for the year ended December 31, 2025, was $1.63 billion, compared to $1.53 billion in 2024, marking a year-over-year increase of 6.5%[55]. Earnings and Profitability - GAAP diluted EPS for Q4 2025 was $5.48, a decrease of 9.0%, while adjusted diluted EPS was $6.42, down 6.0%[3]. - Adjusted EBITDA for VITAS in Q4 2025 was $91.6 million, a decline of 1.7%, with an adjusted EBITDA margin of 21.7%, down 79 basis points[8]. - Roto-Rooter's adjusted EBITDA for Q4 2025 was $47.5 million, a decrease of 21.1%, with an adjusted EBITDA margin of 21.5%, down 477 basis points[13]. - The company reported an EBITDA of $422,369 for 2025, down from $464,294 in 2024, a decline of 9.0%[50]. - Adjusted EBITDA for 2025 was $458,710, reflecting a decrease of 8.8% from $503,002 in 2024[50]. - The diluted earnings per share for 2025 was $18.34, down from $19.89 in 2024, a decline of 7.8%[52]. - Adjusted net income for 2025 was $311,580, a decrease of 11.3% from $351,188 in 2024[52]. Costs and Expenses - Total costs and expenses for Q4 2025 were $538,683,000, compared to $526,115,000 in Q4 2024, indicating an increase of 2.4%[36]. - Selling, general and administrative (SG&A) expenses for Q4 2025 were $105,503,000, slightly higher than $104,251,000 in Q4 2024, marking an increase of 1.2%[38]. - Total costs and expenses for 2025 amounted to $2,191,732, up from $2,064,794 in 2024, representing an increase of 6.1%[46]. Cash and Assets - Chemed had total cash and cash equivalents of $74.5 million as of December 31, 2025, with no current or long-term debt[15]. - Cash and cash equivalents at the end of 2025 were $74,515,000, significantly lower than $178,350,000 at the end of 2024, a decrease of 58.3%[40]. - Total assets decreased from $1,668,575,000 in 2024 to $1,538,189,000 in 2025, a decline of 7.8%[40]. - The company reported a net cash provided by operating activities of $388,272,000 for the year 2025, down from $417,497,000 in 2024, a decrease of 7.0%[42]. - The company incurred capital expenditures of $62,795,000 in 2025, compared to $49,531,000 in 2024, an increase of 26.7%[42]. - The total stockholders' equity decreased from $1,118,993,000 in 2024 to $979,405,000 in 2025, a decline of 12.5%[40]. Admissions and Care Metrics - Total VITAS admissions increased by 6.0% in Q4 2025 compared to Q4 2024, with an average daily census of 22,462, reflecting a 1.3% increase[4]. - Total admissions increased to 17,419 in Q4 2025, compared to 16,427 in Q4 2024, reflecting a growth of 6.0% year-over-year[55]. - Average daily census (ADC) for homecare rose to 18,533 days in Q4 2025, compared to 18,002 days in Q4 2024, showing an increase of 2.9%[55]. - The average length of stay increased to 115.1 days in 2025 from 105.5 days in 2024, indicating a longer duration of care provided[55]. - The total number of days of care provided in 2025 was 8,153,508, an increase from 7,748,471 days in 2024, representing a growth of 5.2%[55]. Medicare and Regulatory Metrics - Vitas has 33 Medicare provider numbers, with 22 providers having a Medicare cap cushion greater than 10%[58]. - Six providers have a Medicare cap cushion between 0% and 10%[58]. - Five providers have a Medicare cap liability[58].