Chemed (CHE) came out with quarterly earnings of $6.60 per share, beating the Zacks Consensus Estimate of $6.25 per share. This compares to earnings of $5.39 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.60%. A quarter ago, it was expected that this operator of the Roto-Rooter plumbing service and Vitas Healthcare hospices would post earnings of $4.92 per share when it actually produced earnings of $5.32, delivering a surp ...

Revenue Performance - Roto-Rooter segment revenue for Q4 2023 was $235.9 million, a decrease of 1.1% compared to the prior year[6]. - VITAS segment net patient revenue increased by 13.6% to $350.0 million in Q4 2023, driven by an 11.0% increase in average daily census[16]. - Total service revenues for the year ended December 31, 2023, were $2.26 billion, an increase from $2.13 billion in 2022[30]. - Revenue increased by 7.2% to $585.9 million[44]. - Total net revenue for Homecare segment was $1,136,437, an increase from $1,039,211 year-over-year[1]. - Total net revenue for Inpatient segment was $112,419, up from $102,361 year-over-year[1]. - Service revenues for VITAS reached $349,998 in 2023, compared to $235,914 in 2022, reflecting a significant increase of approximately 48.3%[63]. Profitability Metrics - Adjusted EBITDA for VITAS, excluding Medicare Cap, rose by 61.6% to $83.3 million, with an adjusted EBITDA margin of 23.7%, an increase of 705 basis points[18]. - Net income for Chemed in Q4 2023 was $90.1 million, up 45.0% from $62.1 million in Q4 2022[30]. - GAAP Diluted Earnings-per-Share (EPS) rose by 42.9% to $5.90[44]. - Adjusted Diluted EPS increased by 35.0% to $6.60[44]. - Adjusted EBITDA for Chemed Corporation in 2023 reached $139,644 thousand, up from $112,378 thousand in 2022, reflecting a growth of 24%[68]. - Adjusted net income for Q4 2023 was $100,813 thousand, a significant increase from $73,623 thousand in Q4 2022, marking a growth of 37%[69]. - The company’s EBITDA for the VITAS segment in 2023 was $224,867 thousand, compared to $196,680 thousand in 2022, showing an increase of 14%[68]. Cash and Debt Position - The company had total cash and cash equivalents of $264.0 million and no debt as of December 31, 2023[10]. - The cash and cash equivalents at the end of 2023 stood at $263,958, a significant increase from $74,126 at the end of 2022, representing a growth of approximately 256%[62]. - As of December 31, 2023, Chemed had approximately $314.1 million remaining under its share repurchase authorization[50]. Cost and Expense Management - Total costs and expenses for Chemed consolidated were $474,518 in 2023, up from $395,120 in 2022, marking an increase of about 20.1%[63]. - Interest expense for Chemed Corporation in 2023 totaled $3,108 thousand, a decrease from $4,584 thousand in 2022, reflecting a reduction of 32%[68]. - The Retention Program expenses for 2023 totaled $20.8 million, compared to $19.6 million in 2022[15]. - Capital expenditures for 2023 were $56,854, slightly down from $57,325 in 2022, indicating a decrease of about 0.8%[62]. Operational Metrics - Total admissions increased to 15,867 from 14,829 in the previous year[1]. - Average daily census for Homecare increased to 15,646 from 14,012 year-over-year[1]. - Total discharges increased to 15,705 from 14,862 in the previous year[1]. - The company has 26 Medicare provider numbers with a cap cushion of greater than 10%[45]. Future Outlook - For 2024, VITAS revenue is expected to increase by 9.0% to 9.8%, with adjusted EBITDA margin estimated between 17.8% and 18.3%[22]. - Roto-Rooter is projected to achieve full-year 2024 revenue growth of 3.5% to 4.0%[51]. - The adjusted EBITDA margin for 2024 is expected to be between 28.7% and 29.1%[51]. - Full-year 2024 earnings per diluted share are estimated to be in the range of $23.30 to $23.70[23]. Shareholder Returns - Chemed repurchased 79,512 shares of stock for $46.0 million at a cost per share of $579.09 during the quarter[50]. - The average number of shares outstanding for Chemed Corporation in Q4 2023 was 15,270 thousand, up from 15,052 thousand in Q4 2022[69].

CINCINNATI--(BUSINESS WIRE)--Chemed Corporation (NYSE:CHE) announced today that the Board of Directors has declared a quarterly cash dividend of 40-cents per share on the Company’s capital stock, payable on March 15, 2024, to shareholders of record as of February 26, 2024. This is equal to the dividend paid in December 2023. This represents the 211th consecutive quarterly dividend paid by Chemed in its 52 years as a public company. Listed on the New York Stock Exchange and headquartered in Cincinnati, Ohio ...

Chemed Corporation (CHE) is well-poised for growth in the coming quarters, backed by the strong prospects of the VITAS Healthcare and Roto-Rooter segments. The company delivered favorable solvency as of the end of the third quarter of 2023, generating investors’ optimism. However, macroeconomic headwinds and competitive disadvantages are discouraging for the company.In the past year, this Zacks Rank #3 (Hold) stock has increased 18% compared to the 6.4% rise of the industry and a 21.2% rise of the S&P 500 c ...

Financial Data and Key Metrics Changes - VITAS' net revenue was $334 million in Q3 2023, a 12.5% increase compared to the prior year [20] - Adjusted EBITDA for VITAS, excluding Medicare Cap, totaled $54.9 million, a 53.4% increase [22] - Roto-Rooter generated quarterly revenue of $231 million, a slight increase of 0.004% compared to the prior year [23] - Adjusted EBITDA for Roto-Rooter was $66.9 million, a decrease of 3.7% [24] - Full year 2023 earnings per diluted share is estimated to be in the range of $19.82 to $20.02 [27] Business Line Data and Key Metrics Changes - VITAS admissions increased by 7.5% year-over-year, with an Average Daily Census (ADC) of 19,047 patients in September 2023, up 9.4% from September 2022 [8][32] - Roto-Rooter experienced a 13.6% decline in call volume compared to the prior year, but improved conversion rates helped stabilize revenue [13][15] - Roto-Rooter branch commercial revenue increased by 1.5%, while residential revenue remained flat [23][24] Market Data and Key Metrics Changes - VITAS' average revenue per patient per day was $196.43, an increase of 2.96% compared to the prior year [21] - The Medicare reimbursement rate increased by approximately 2.7%, positively impacting revenue growth [20] - Roto-Rooter’s commercial business is slightly outperforming residential, indicating a shift in consumer behavior [93] Company Strategy and Development Direction - VITAS is focused on stabilizing and expanding patient capacity through a retention and hiring program, which has shown positive results [9][30] - Roto-Rooter aims to leverage its brand awareness and customer response time to expand market share despite economic headwinds [17] - The company anticipates continued sequential growth in ADC and revenue for VITAS, while Roto-Rooter is expected to achieve modest growth in Q4 [12][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in VITAS' ability to maintain growth in admissions and patient capacity, indicating a return to normalized operating conditions [16][35] - Roto-Rooter is navigating consumer spending headwinds but expects to see a recovery in demand as deferred maintenance needs arise [82][84] - The company is cautious about the economic environment but remains optimistic about future growth opportunities [84] Other Important Information - The total pre-tax cost of the retention program in 2023 is estimated at $23.8 million, impacting adjusted EBITDA margin guidance [26] - A realignment of the corporate tax structure is expected to reduce state taxes and result in a 24.3% effective tax rate starting in 2024 [29] Q&A Session Summary Question: Thoughts on VITAS revised guidance and hiring impact - Management indicated that the hiring from Q3 is factored into the fourth quarter guidance, with expectations for continued growth in staffing and admissions [40] Question: Water restoration trends and seasonality - Management noted that while there is some seasonality, the water restoration business is performing well due to quick response times [46][47] Question: Capital deployment priorities amid interest rate environment - The company plans to continue share repurchases while also taking advantage of higher interest income from cash reserves [50][54] Question: VITAS margins and future guidance - Management discussed the potential for margins to settle around 19% to 19.5% in the future, with minimal opportunity for improvement [59][60] Question: Roto-Rooter growth outlook - Management expressed optimism for Roto-Rooter in 2024, contingent on consumer spending recovery, while acknowledging challenges in Q1 comparisons [82][85]

UNITED STATES (Mark One) x Quarterly Report Under Section 13 or 15 (d) of the Securities Exchange Act of 1934 for the Quarterly Period Ended September 30, 2023 o Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number: 1-8351 CHEMED CORPORATION (Exact name of registrant as specified in its charter) Delaware 31-0791746 (State or other jurisdiction of incorporation or organization) (IRS Employer Identification No.) 255 E. Fifth Street, Suite 2600, Cincin ...

| --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------------------------------------|-------|--------------------------|-------|---------------|-------|----------------------------------------------------------------------------------------------|-------|-------------------------------------| | | | \n(1) Shares Repurchased | | (2) Dividends | | For the Period January 1, 2007, through June 30, 2023 \n (3) Total Returned to Shareholders | \n$ | (4) Free Cash Flow Generated (1) | | Activity in 2007 A ...

Financial Data and Key Metrics - VITAS Healthcare's Q2 2023 revenue increased by 7.8% YoY to $321 million, driven by a 6.2% increase in days of care and a 2.7% increase in Medicare reimbursement rates [101] - Roto-Rooter's Q2 2023 revenue declined by 0.2% YoY to $233 million, with residential revenue down 1.1% and commercial revenue up 1.3% [99] - VITAS' adjusted EBITDA margin, excluding Medicare Cap, was 15.7% in Q2 2023, down 101 basis points YoY due to sequestration [102] - Roto-Rooter's adjusted EBITDA margin in Q2 2023 was 28.3%, down 128 basis points YoY [103] Business Line Performance - VITAS' average daily census (ADC) increased by 6.2% YoY to 18,392 patients in Q2 2023, with admissions up 5.9% YoY [82][68] - Roto-Rooter's call volume declined by approximately 13% YoY in Q2 2023, but close rates improved by 230 basis points for call centers and 160 basis points for technicians [85][86] Market Performance - VITAS' nursing home admissions increased by 13.7% YoY, while assisted facility admissions grew by 3.9%, hospital-directed admissions by 4.5%, and home-based patient admissions by 3.8% [68] - Roto-Rooter's residential revenue saw declines in drain cleaning (-8.6%) and plumbing (-2.8%), but growth in excavation (3.8%) and water restoration (2.5%) [99] Strategic Direction and Industry Competition - VITAS is focusing on expanding market share by leveraging scale, as smaller competitors struggle with inflation and reimbursement challenges [6] - Roto-Rooter is enhancing its internet marketing presence to capture more customer attention, despite a decline in overall search activity for plumbing services [65][40] Management Commentary on Operating Environment and Future Outlook - Management expects VITAS to achieve a 17.5% adjusted EBITDA margin by 2024, driven by improved staffing and census growth [5] - Roto-Rooter's guidance assumes continued consumer spending headwinds, with conservative estimates for Q3 and Q4 2023 [50] Other Important Information - VITAS' retention program has added 784 licensed healthcare professionals since July 2022, contributing to an annualized revenue increase of $84 million [94][84] - Roto-Rooter's workforce is at its strongest, with no plans for layoffs despite current call volume challenges [3][41] Q&A Session Summary Question: How does the decline in Roto-Rooter's call volume compare to past consumer cycles? - The decline is unusual, with call volume spikes never seen before, and demand weakness typically does not last beyond 12 months [19][20] Question: What is the outlook for VITAS' growth and margins? - VITAS expects 8.5% to 9.5% revenue growth in 2023, with margins returning to pre-pandemic levels by 2024 [7][5] Question: Are there plans for acquisitions in the hospice industry? - Acquisitions are not off the table, but the company prefers to expand through market competition due to high valuations for small providers [62][46] Question: How is Roto-Rooter addressing cost-cutting amid declining call volumes? - The company is focusing on reengineering costs rather than cutting expenses, with no layoffs planned [74][41]

The components of cash flow information related to leases were as follows: | --- | --- | --- | --- | --- | |---------------------------------------------------------------------------------------------------------|-------|---------------------------------------------|-------|---------------| | Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from leases | $ | Six months ended June 30, \n2023 \n25,055 | $ | 2022 \n25,173 | | Leased assets obtained in exchange for ne ...

Chemed Corporation (NYSE:CHE) Q1 2023 Earnings Conference Call April 27, 2023 10:00 AM ET Company Participants Holley Schmidt - Assistant Controller Kevin McNamara - President and Chief Executive Officer David Williams - Executive Vice President and Chief Financial Officer Nicholas Westfall - President and Chief Executive Officer-VITAS Healthcare Corporation Subsidiary Conference Call Participants Joanna Gajuk - Bank of America Benjamin Hendrix - RBC Capital Markets Operator Thank you for standing by, and w ...