Core Points - Chemed Corporation has declared a quarterly cash dividend of 60 cents per share, payable on December 5, 2025, to shareholders of record as of November 17, 2025, maintaining the same dividend as in August 2025 [1] - This marks the 218th consecutive quarterly dividend paid by Chemed in its 54 years as a public company [1] Company Overview - Chemed Corporation is listed on the New York Stock Exchange and is headquartered in Cincinnati, Ohio [2] - 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 in the nation [2]

Core Viewpoint - Chemed Corporation will present at the UBS 2025 Global Healthcare Conference on November 11, 2025, at 2:00 p.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 presentation will be webcast live and accessible through the Chemed website, with a replay available within 24 hours for 90 days [2]

Company Overview - Chemed Corporation operates two primary segments: VITAS, which provides hospice and palliative care services, and Roto-Rooter, offering plumbing, drain cleaning, and water restoration solutions [4][5] - The company generates revenue through direct service delivery to patients and customers via company-owned branches, independent contractors, and franchisees [4][5] - Chemed's primary customers include patients requiring end-of-life care and residential or commercial clients needing plumbing and related services across the United States [5] Financial Performance - For the trailing twelve months (TTM), Chemed reported revenue of $2.53 billion and net income of $278.81 million [3] - The company's dividend yield stands at 0.44% as of October 28, 2025 [3] - As of October 28, 2025, Chemed shares were priced at $438.94, reflecting a 27.91% decline over the past year and underperforming the S&P 500 by 45.55 percentage points [2] Recent Developments - Schwartz Investment Counsel reduced its position in Chemed by 28,771 shares, valued at approximately $13.03 million, bringing its stake down to 1.67% of reportable assets from 2.24% in the previous quarter [1][2] - Chemed's stock was demoted from the 11th-largest holding to the 17th place in Schwartz's portfolio by the end of September 2025 [6] - The hospice segment experienced a decline in adjusted EBITDA by 3.8% to $70.4 million, despite a 2.98% year-over-year increase in average revenue per day [8] - The Roto-Rooter segment's revenue grew by 1.1% year over year, but adjusted EBITDA declined by 12.4% [9]

Financial Performance - For the three months ended September 30, 2025, consolidated service revenues increased by 3.1% to $624.9 million compared to $606.2 million in the same period of 2024[123]. - Net income for the third quarter of 2025 was $64.2 million, down from $75.8 million in the third quarter of 2024, representing a decrease of 15.5%[110]. - Adjusted EBITDA for the third quarter of 2025 was $109.0 million, which is 17.4% of revenue, compared to $123.0 million or 20.3% of revenue in the same quarter of 2024[110]. - Total revenues for the first nine months of 2025 were $1,890,641,000, a 5.5% increase from $1,791,294,000 in the same period of 2024[136]. - Net income for the first nine months of 2025 was $188,487,000, a decrease of 10.9% from $211,680,000 in 2024[143]. - The net income for the third quarter of 2025 was $64,237,000, compared to $75,776,000 in the third quarter of 2024[149]. - Net income for the nine months ended September 30, 2024, was $211,680, compared to $188,487 for the same period in 2025, reflecting a decrease of approximately 8.5%[157]. Revenue Sources - VITAS experienced a 4.2% increase in service revenues driven by a 2.5% increase in days-of-care and a 4.1% increase in Medicare reimbursement rates[111]. - Roto-Rooter saw a 1.1% increase in service revenues, primarily due to growth in plumbing, excavation, and water restoration services[111]. - VITAS service revenues increased by $91.4 million, with routine homecare revenue rising by 10.7% to $1,072,014,000[136]. - Total service revenues and sales for the first nine months of 2025 were $1,890,641,000, an increase from $1,800,000,000 in 2024[152]. Expenses and Costs - SG&A expenses for Q3 2025 totaled $105,775,000, up 6.5% from $101,981,000 in Q3 2024, with $2.7 million attributed to a severance accrual and $2.3 million increase in legal expenses[128]. - SG&A expenses for the first nine months of 2025 totaled $311,685,000, down from $320,109,000 in 2024, with a 4.8% increase in expenses before long-term incentive compensation[140]. - Total costs and expenses for the first nine months of 2025 were $1,653,049,000, compared to $1,514,000,000 in 2024[152]. Margins and Profitability - The gross margin for the consolidated company decreased to 31.5% in Q3 2025 from 34.6% in Q3 2024, with VITAS' gross margin declining to 21.3% from 24.6%[127]. - The consolidated gross margin for the first nine months of 2025 was 31.6%, down from 34.6% in the same period of 2024, with VITAS' gross margin declining to 21.2%[139]. - VITAS' after-tax earnings as a percentage of revenue decreased to 11.5% in Q3 2025 from 13.7% in Q3 2024, impacted by a $3.8 million increase in Medicare Cap liability[132]. - Roto-Rooter's net income for the first nine months of 2025 was $103,928,000, compared to $119,326,000 in 2024, with after-tax earnings as a percent of revenue decreasing to 15.3% from 17.8%[144]. Compliance and Financial Health - As of September 30, 2025, the company had approximately $404.5 million of unused lines of credit available under its revolving credit facility[118]. - The company anticipates that operating income and cash flows will be sufficient to meet business commitments for the foreseeable future[116]. - The company is in compliance with all financial covenants as of September 30, 2025, and expects to remain compliant in the future[119]. Other Income and Taxation - Other income for Q3 2025 was $9,251,000, slightly down from $9,299,000 in Q3 2024, primarily due to a decrease in interest income[129]. - The effective tax rate for Q3 2025 was 23.1%, compared to 25.0% in Q3 2024, with total income tax provision decreasing to $19,307,000 from $25,253,000[130]. - Other income for the first nine months of 2025 was $13,970,000, significantly lower than $28,008,000 in 2024, primarily due to a decrease in interest income[141]. Operational Metrics - Homecare net revenue for Q3 2025 was $362,405,000, an increase of 7.1% from $338,344,000 in Q3 2024[162]. - The average daily census for homecare increased to 18,325 days in Q3 2025, compared to 17,639 days in Q3 2024, reflecting a growth of 3.9%[162]. - Total admissions for the nine months ended September 30, 2025, were 53,398, a rise of 4.7% from 51,020 in the same period of 2024[162]. - The average length of stay increased to 121.9 days for the nine months ended September 30, 2025, compared to 102.2 days in the same period of 2024[162]. Debt and Interest Rate Management - The company had no variable rate debt outstanding as of September 30, 2025, mitigating interest rate risk exposure[164]. - 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[164]. - The company is continuously evaluating interest rate exposure and considering hedging techniques to manage risks[165].

Group 1 - The article does not provide any specific information or insights regarding a company or industry [1]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Financial Data and Key Metrics Changes - VITAS net revenue was $407.7 million in Q3 2025, an increase of 4.2% compared to the prior year period [11] - Adjusted EBITDA for VITAS, excluding Medicare cap, totaled $70.4 million, a decline of 3.8% year-over-year [12] - Roto-Rooter revenue increased by 1.1% in Q3 2025 compared to the same period in 2024 [7] - Adjusted EBITDA at Roto-Rooter totaled $49.4 million, a decrease of 12.4% compared to the prior year quarter [15] Business Line Data and Key Metrics Changes - VITAS admissions totaled 17,714, a 5.6% improvement from the same period in 2024 [5] - Average revenue per patient day for VITAS was $205.08, up 2.98% from the prior year [12] - Roto-Rooter branch residential revenue increased by 3.4%, with residential plumbing revenue up 8.2% [13][8] - Revenue from independent contractors declined by 4.7% in Q3 2025 compared to the same period in 2024 [14] Market Data and Key Metrics Changes - The percentage of total admissions from hospitals in Florida was 44.5%, above the preferred range of 42% to 45% [6] - The average daily census for VITAS was 22,327 patients, an increase of 2.5% [17] - Hospital-directed admissions increased by 10.4%, while nursing home admissions declined by 8.9% [17] Company Strategy and Development Direction - The company aims to mitigate potential Florida Medicare cap billing limitations for fiscal 2026 [5] - VITAS is focusing on increasing hospital-based admissions to ensure long-term stability [6] - Roto-Rooter is implementing operational initiatives to stabilize and return to predictable growth [10] Management Comments on Operating Environment and Future Outlook - Management believes there will be no Medicare cap billing limitation related to the Florida program in 2026 [6] - The company is encouraged by the performance of both businesses in Q3 2025, with VITAS on track to resolve the Medicare cap issue [10] - Management anticipates a seasonal increase in demand and revenue in Q4 2025 [23] Other Important Information - The company has cleared hurdles to open a new location in Pinellas County, expected to open in early November [7] - The Medicare cap billing limitation for Q3 2025 was $6.1 million, slightly better than estimates [11] Q&A Session Summary Question: Insights on demand and cost trends for Q4 - Management noted that Q4 is typically stronger due to seasonal factors, with VITAS' margins expected to spike from the new rate increase [23][24] Question: Concerns about receivables and cash collections - Management indicated that elevated DSO is primarily a timing issue related to Medicaid payments, not a deterioration in collection efforts [31] Question: Growth rates and margins for 2026 - Management speculated on revenue growth in the 8% range and margins at 17.5%-18% for 2026, pending Q4 performance [37] Question: Sustainable margins in Roto-Rooter - Management indicated that while marketing costs are under pressure, they expect to absorb these costs through operational improvements [53] Question: Clarification on VITAS' Medicare cap liability - Management explained that the focus on hospital admissions and a favorable rate increase gives confidence in managing cap liability [65][69]

Financial Data and Key Metrics Changes - VITAS net revenue was $407.7 million in Q3 2025, an increase of 4.2% compared to the prior year period, driven by a 2.5% increase in days of care and a 4.1% increase in Medicare reimbursement rates [11][12] - Adjusted EBITDA for VITAS, excluding Medicare cap, totaled $70.4 million, a decline of 3.8% year-over-year, with an adjusted EBITDA margin of 17.0%, down 157 basis points from the prior year [12][13] - Roto-Rooter revenue increased by 1.1% in Q3 2025 compared to the same period in 2024, with residential plumbing revenue up 8.2% [7][13] Business Line Data and Key Metrics Changes - VITAS admissions totaled 17,714 in Q3 2025, a 5.6% improvement from the same period in 2024, with hospital-directed admissions increasing by 10.4% [5][17] - Roto-Rooter branch residential revenue was $150.9 million, an increase of 3.4%, while commercial revenue totaled $55 million, up 2.8% [13][14] - Revenue from independent contractors declined by 4.7% in Q3 2025 compared to the same period in 2024 [14] Market Data and Key Metrics Changes - The percentage of total admissions from hospitals in Florida was 44.5% in Q3 2025, indicating a recovery in the mix of referral sources [6] - The average daily census for VITAS was 22,327 patients, an increase of 2.5% [17] Company Strategy and Development Direction - The company is focused on increasing hospital-based admissions to mitigate Medicare cap billing limitations, with a target ratio of 42% to 45% for hospital admissions [6][29] - VITAS is set to open a new location in Pinellas County in early November 2025, which is expected to enhance its service capacity [7][18] - Roto-Rooter is implementing operational initiatives to improve margins and stabilize growth, with a focus on managing lead generation costs [9][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the Florida Medicare cap issue will be resolved, with no expected billing limitations for 2026 [6][16] - The company anticipates a strong fourth quarter for both VITAS and Roto-Rooter, driven by seasonal demand and operational improvements [24][27] - Management indicated that the fourth quarter will be a significant indicator for 2026 growth strategies, with expectations for revenue growth in the 8% range and margins around 27.5% to 28% [36][37] Other Important Information - The company is actively working to address challenges faced by independent contractors to return this segment to a growth trajectory [14][15] - SG&A costs increased by $3.6 million in Q3 2025, primarily due to the shift from unpaid to paid leads [9][15] Q&A Session Summary Question: Can you run through demand and cost trends for each segment? - Management noted that seasonality impacts the fourth quarter, with VITAS typically performing better due to rate increases and Roto-Rooter benefiting from weather conditions [23][24] Question: What are the expectations for receivables and cash collections? - Management clarified that elevated DSO is primarily a timing issue related to Medicaid payments, not a deterioration in collection efforts [31] Question: How are margins expected to improve in Roto-Rooter? - Management indicated that while marketing costs are under pressure, they expect to absorb these costs through operational improvements and increased lead generation [52][53] Question: What is the outlook for VITAS in 2026? - Management stated that the fourth quarter will inform 2026 strategies, with expectations for improved revenue growth and margins based on operational adjustments [36][40] Question: How does the company view competitive dynamics in Roto-Rooter? - Management expressed optimism about improved competitive dynamics, noting that increased paid leads are yielding better results without significant competitive pressure [43][44]

Financial Data and Key Metrics Changes - VITAS net revenue was $407.7 million in Q3 2025, an increase of 4.2% compared to the prior year period, driven by a 2.5% increase in days of care and a 4.1% increase in Medicare reimbursement rates [12] - Adjusted EBITDA for VITAS, excluding Medicare cap, totaled $70.4 million, a decline of 3.8% year-over-year, with an adjusted EBITDA margin of 17.0%, down 157 basis points from the prior year [13] - Roto-Rooter revenue increased by 1.1% in Q3 2025 compared to the same period in 2024, with residential plumbing revenue up 8.2% [7][8] Business Line Data and Key Metrics Changes - VITAS admissions totaled 17,714 in Q3 2025, a 5.6% improvement from Q3 2024, with hospital-based admissions at 44.5%, the highest since the pandemic [5][6] - Roto-Rooter branch residential revenue was $150.9 million, an increase of 3.4%, while commercial revenue totaled $55 million, up 2.8% [13][14] - Revenue from independent contractors declined by 4.7% in Q3 2025 compared to the same period in 2024 [14] Market Data and Key Metrics Changes - The average daily census for VITAS was 22,327 patients, an increase of 2.5%, with hospital-directed admissions up 10.4% [17] - The average revenue per patient day for VITAS was $205.08, an increase of 298 basis points year-over-year [12] Company Strategy and Development Direction - The company is focusing on increasing hospital-based admissions to mitigate Medicare cap billing limitations, with expectations of no cap limitations for the Florida program in 2026 [6][16] - Roto-Rooter is implementing operational initiatives to improve margins and stabilize growth, with a focus on managing costs effectively [10][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fourth quarter, anticipating it to be the best quarter for VITAS due to seasonal factors and new rate increases [23][24] - The company is optimistic about returning to a predictable growth trajectory for Roto-Rooter, despite current margin pressures [11][15] Other Important Information - The company expects to open a new location in Pinellas County in early November 2025, which is anticipated to contribute positively to growth [7] - Management reiterated guidance of $22 to $22.30 per share, excluding non-cash expenses and other discrete items [16] Q&A Session Summary Question: Insights on demand and cost trends for Q4 - Management noted that Q4 typically sees higher demand and margins for both VITAS and Roto-Rooter due to seasonal factors [22][24] Question: Thoughts on receivables and cash collections - Management indicated that elevated DSO is primarily a timing issue related to Medicaid payments, not a deterioration in collection efforts [30] Question: Outlook for 2026 margins and growth rates - Management stated that the fourth quarter will inform the strategy for 2026, with expectations of revenue growth in the 8% range and margins around 17.5% to 18% [36][40] Question: Competitive dynamics in Roto-Rooter - Management highlighted improved competitive dynamics, with a shift towards paid leads resulting in better lead generation and potential margin recovery [44][46] Question: Sustainable margins in Roto-Rooter - Management believes that Roto-Rooter can achieve long-term EBITDA margins of 25% to 26%, despite current pressures from marketing costs [54] Question: Clarification on VITAS's Medicare cap liability - Management explained that the strategy of increasing hospital admissions and the current reimbursement environment gives confidence in managing Medicare cap liabilities [66][69]

Core Insights - Chemed Corporation (CHE) reported third-quarter 2025 adjusted earnings per share (EPS) of $5.27, a decline of 6.6% year over year, missing the Zacks Consensus Estimate by 2.2% [1] - The company's GAAP EPS was $4.46, down 10.8% from the previous year [1] Revenue Performance - Revenues for the quarter increased by 3.1% year over year to $624.9 million, but fell short of the Zacks Consensus Estimate by 0.5% [2] - The stock price dropped by 2.7% in after-hours trading, reflecting investor concerns regarding the declining EPS [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 provider [3] - VITAS reported net patient revenues of $407.7 million, up 4.2% year over year, driven by a 2.5% increase in days-of-care and a nearly 4.1% rise in the Medicare reimbursement rate [4] - Roto-Rooter generated sales of $217.2 million, a 1.1% increase year over year, with commercial revenues up 2.8% [5] - Residential revenues for Roto-Rooter increased by 3.4% year over year, with notable growth in plumbing (8.2%) and water restoration (6.8%) [6] Margin and Profitability - Gross profit decreased by 6.2% year over year to $196.9 million, with gross margin contracting by 313 basis points to 31.5% due to an 8% rise in service costs [7] - Selling, General and Administrative (SG&A) expenses rose by 3.7% year over year to $105.8 million, leading to a 15.6% decline in adjusted operating profit to $91.1 million [7] Liquidity and Capital Structure - At the end of Q3 2025, Chemed had cash and cash equivalents of $129.8 million, down from $249.9 million at the end of Q2 [10] - The company reported no current or long-term debt and cumulative net cash from operating activities of $254.7 million, slightly up from $252.6 million in the previous year [10] Share Repurchase and Dividends - Chemed repurchased 407,500 shares for $180.8 million, averaging $443.62 per share, with approximately $301.8 million remaining under its share repurchase authorization [11] - The company has a consistent dividend-paying history, with a five-year annualized dividend growth of 10.47% [11] Future Guidance - For 2025, Chemed expects VITAS revenues to increase by 10.5% to 11.3% and Roto-Rooter revenues to grow by 2.4% to 3.0% [12] - The total revenue estimate for 2025 is projected at $2.55 billion, indicating a 4.9% year-over-year improvement [12] - The adjusted EPS for the full year 2025 is expected to be in the range of $24.95-$25.45, with a Zacks Consensus Estimate of $22.03, reflecting a 4.8% decline from 2024 [13]