Financial Data and Key Metrics Changes - Adjusted EBITDA excluding Medicare Cap totaled $67 million in Q2 2024, an increase of 77% compared to the prior year period, with an adjusted EBITDA margin of 17.8%, which is 613 basis points above the prior year [12] - VITAS net revenue was $374.6 million in Q2 2024, a 16.7% increase compared to the prior year, driven by a 14.4% increase in days-of-care and a 2.5% increase in Medicare reimbursement rates [53] - Adjusted EBITDA at Roto-Rooter in Q2 2024 totaled $59.8 million, a decrease of 9.2% compared to the prior year, with an adjusted EBITDA margin of 27% [58] Business Line Data and Key Metrics Changes - VITAS admissions totaled 17,334 in Q2 2024, an 11% increase from the same period in 2023, with average daily census (ADC) expanding to 21,036 patients, a 14.4% increase [62] - Roto-Rooter generated quarterly revenue of $221.3 million in Q2 2024, a decrease of 5% compared to the prior year, with residential revenue declining by 1.6% and commercial revenue declining by 8.2% [18][23] - The Covenant Health acquisition is estimated to contribute approximately $30 million to $32 million to VITAS' full-year revenue [60] Market Data and Key Metrics Changes - The acuity mix shift negatively impacted revenue growth by 112 basis points in Q2 2024 compared to the prior year [22] - Roto-Rooter is forecasted to have a 4% to 5% revenue decline in 2024 compared to 2023 [29] - VITAS is expected to see a revenue increase of 16.3% to 17.3% in 2024 compared to 2023 [27] Company Strategy and Development Direction - The company is focused on expanding its workforce and patient capacity, with VITAS expanding its bedside headcount by 234 licensed professionals in Q2 2024 [31] - Roto-Rooter management is implementing initiatives to improve the commercial sector, including adding commercial sales staff and enhancing customer relationship management capabilities [56] - The company is optimistic about VITAS maintaining above-average historical growth through organic growth and potential acquisitions [37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in VITAS's ability to continue strong admission and census growth, citing no headwinds from demand for hospice services [40] - The company acknowledged challenges in the commercial sector of Roto-Rooter but believes that retraining efforts will take multiple quarters to yield results [26] - Management noted that the demand for hospice services remains strong, and they are optimistic about future growth opportunities in Florida [47][66] Other Important Information - The company has received a Certificate of Need to provide hospice services in Pasco County, Florida, representing a significant growth opportunity [47] - The retention bonus program in 2023 contributed 397 basis points to the year-over-year improvement in the adjusted EBITDA margin for 2024 [12] - The average length of stay for patients was 100.6 days in Q2 2024, compared to 99.5 days in the same quarter of 2023 [33] Q&A Session Summary Question: Long-term runway for census growth at VITAS - Management believes that as long as they continue to attract and retain staff, there are no limitations on growth, and they do not foresee any demand headwinds for hospice services [40] Question: M&A pipeline opportunities - The company is actively discussing potential acquisitions and is focused on markets where they can efficiently service community needs [97] Question: Roto-Rooter's longer-term growth trajectory - Management views the long-term potential for Roto-Rooter to be in the 5% to 6% range for top-line growth, with price increases and potential acquisitions contributing to this growth [45][101] Question: Trends exiting Q2 for Roto-Rooter - Management anticipates some sequential improvement in the second half of the year, with commercial revenue showing positive momentum [108] Question: Length of stay metrics - Management indicated that while the average length of stay has declined slightly, the median length of stay has increased, reflecting improved patient care [116]

Chemed Corporation (CHE) reported adjusted earnings per share (EPS) of $5.47 in the second quarter of 2024, up 34.1% year over year. However, the figure missed the Zacks Consensus Estimate by 1.3%. The company's GAAP EPS was $4.65, up 32.5% from last year's reported figure. Revenues in Detail Revenues in the reported quarter improved 7.6% year over year to $595.9 million. The metric missed the Zacks Consensus Estimate by 1.2%. Segmental Details Chemed operates through two wholly owned subsidiaries — VITAS ( ...

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Investors should be m ...

CONTACT: Michael D. Witzeman (513) 762-6714 Changes to Non-GAAP Metrics For the quarter-ended June 30, 2023, the pretax and after-tax Retention Program expense was $12.8 million and $9.7 million, respectively. For the six-months ended June 30, 2023, the pretax and after-tax Retention Program expense was $23.7 million and $18.0 million, respectively. There was no material impact on financial results for the quarter or six months-ended June 30, 2024 as a result of the Retention Program. Roto-Rooter segment op ...

Chemed Corporation (CHE) is primed to grow in the upcoming quarters, backed by the promising prospects of the VITAS business. The company is set to capitalize on the positive trends of the global Hospice industry. Moreover, sound financial stability appears encouraging. However, the uncertainty of the macroeconomic challenges and competitive pressure remain our concerns for Chemed's operations. Upsides Favorable Hospice Industry Trends: Within the Hospice segment, we believe that Chemed is well-poised to re ...

CINCINNATI--(BUSINESS WIRE)--Chemed Corporation (NYSE:CHE) today announced that it will deliver a presentation at the Bank of America Securities Health Care Conference 2024 on Tuesday, May 14, 2024, at 1:40 PM (PDT) at the Encore at the Wynn Las Vegas.The presentation will be webcast live and can be accessed, along with the presentation materials, through the Chemed website at www.chemed.com (Investor Relations). The webcast replay will be available within 24 hours of the live presentation and will be acces ...

CINCINNATI--(BUSINESS WIRE)--Chemed Corporation (NYSE:CHE) today announced that it will deliver a presentation at the Bank of America Securities Health Care Conference 2024 on Tuesday, May 14, 2024, at 1:40 PM (PDT) at the Encore at the Wynn Las Vegas. The presentation will be webcast live and can be accessed, along with the presentation materials, through the Chemed website at www.chemed.com (Investor Relations). The webcast replay will be available within 24 hours of the live presentation and will be acce ...

101 The following materials from Chemed Corporation's Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) The Condensed Consolidated Balance Sheet, (ii) The Condensed Consolidated Statement of Income, (iii) The Condensed Consolidated Statement of Cash Flows, (iv) The Condensed Statement of Equity, and (v) Notes to the Condensed Consolidated Financial Statements. 104 The cover page from the Company's Quarterly Report on Fo ...

Financial Data and Key Metrics Changes - In Q1 2024, VITAS reported an average daily census (ADC) of 19,665 patients, a 10.3% increase year-over-year and a 1.6% increase sequentially [26][37] - Roto-Rooter generated quarterly revenue of $235.2 million, a decrease of 5.8% compared to the prior year [43] - Adjusted EBITDA at Roto-Rooter for Q1 2024 totaled $60.7 million, a decrease of 15.6% year-over-year, with an adjusted EBITDA margin of 25.8%, down 299 basis points from the prior year [57][78] Business Line Data and Key Metrics Changes - VITAS experienced a 4.5% increase in admissions, totaling 16,911 in Q1 2024, with growth across all segments [82] - Roto-Rooter branch residential revenue declined by 3.5% to $162.9 million, while commercial revenue decreased by 10.5% to $53.7 million [43][55] - Average revenue per patient day for VITAS was $203.8, up 212 basis points from the prior year [42] Market Data and Key Metrics Changes - Roto-Rooter faced a 9.1% decline in overall call volume compared to the prior year quarter, attributed to macroeconomic concerns and increased competition [73][89] - The residential revenue decline was within expectations, reflecting ongoing consumer sentiment challenges [50][63] Company Strategy and Development Direction - The company is focusing on integrating the recently acquired Covenant Health and Community Services, which is expected to enhance operational and financial performance [40][83] - Roto-Rooter is implementing strategies to improve commercial revenue performance, including increasing touchpoints with key accounts and upselling opportunities [21][79] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that macroeconomic issues have impacted both residential and commercial segments, but expressed confidence in the long-term growth potential of Roto-Rooter [12][14] - The company remains optimistic about VITAS's growth trajectory, citing strong hiring and retention metrics [48][92] Other Important Information - The company reported a significant increase in marketing expenses due to changes in Google search algorithms, which negatively impacted Roto-Rooter's margins [39][80] - The acquisition of Covenant is seen as a strategic move to expand service capabilities and patient access [83][96] Q&A Session Summary Question: How does the continued weakness in Roto-Rooter affect long-term growth potential? - Management stated that the long-term outlook for Roto-Rooter remains strong despite current challenges, emphasizing the brand's competitive advantages [14][75] Question: What are the expectations for margins moving forward? - Management indicated that while margins were impacted by increased marketing costs, they expect improvements as marketing spend normalizes [80][100] Question: How is the integration of the Covenant acquisition progressing? - The integration is proceeding smoothly, with expectations for operational synergies and improved patient service delivery [119][124] Question: What is the outlook for future acquisitions in the hospice sector? - The company is actively looking for additional acquisition opportunities, particularly in restricted markets, and remains optimistic about the M&A environment [95][121]

Chemed Corporation (CHE) reported adjusted earnings per share (EPS) of $5.20 in the first quarter of 2024, up 21.5% year over year. However, the figure missed the Zacks Consensus Estimate by 4.9%.The company’s GAAP EPS was $4.24, up 18.4% from last year’s reported figure.Revenues in DetailRevenues in the reported quarter improved 5.2% year over year to $589.2 million. The metric topped the Zacks Consensus Estimate by 0.3%.Segmental Details  Chemed operates through two wholly owned subsidiaries — VITAS (a ma ...