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 ...

Chemed (CHE) came out with quarterly earnings of $5.20 per share, missing the Zacks Consensus Estimate of $5.47 per share. This compares to earnings of $4.82 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -4.94%. A quarter ago, it was expected that this operator of the Roto-Rooter plumbing service and Vitas Healthcare hospices would post earnings of $6.25 per share when it actually produced earnings of $6.60, delivering a sur ...

[Q1 2024 Financial Highlights](index=1&type=section&id=Chemed%20Reports%20First-Quarter%202024%20Results) Chemed Corporation reported strong first-quarter 2024 results with increased consolidated revenue and significant growth in both GAAP and Adjusted Diluted EPS [Consolidated Operating Results](index=1&type=section&id=Consolidated%20operating%20results) Chemed Corporation reported a solid first quarter for 2024, with consolidated revenue increasing by 5.2% to $589.2 million. Both GAAP and Adjusted Diluted EPS showed strong growth, rising 18.4% and 21.5% respectively, indicating improved profitability Consolidated Operating Results Summary | Metric | Q1 2024 | YoY Change | | :--- | :--- | :--- | | Revenue | $589.2 million | +5.2% | | GAAP Diluted EPS | $4.24 | +18.4% | | Adjusted Diluted EPS | $5.20 | +21.5% | [Changes to Non-GAAP Metrics](index=1&type=section&id=Changes%20to%20Non-GAAP%20Metrics) Effective from the quarter ending September 30, 2023, Chemed no longer excludes the costs of its pandemic-related licensed healthcare professional retention bonus (Retention Program) from its non-GAAP metrics for current or prior periods. In Q1 2023, this program had a pre-tax expense of $10.9 million - The company has ceased excluding the Retention Program costs from non-GAAP metrics starting in Q3 2023[4](index=4&type=chunk) - The Retention Program expense in Q1 2023 was **$10.9 million** pre-tax and **$8.3 million** after-tax, which is now included in prior-period non-GAAP comparisons[4](index=4&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Performance) VITAS Healthcare segment achieved strong revenue and profit growth, while Roto-Rooter segment experienced a decline in revenue and profitability [VITAS Healthcare Segment](index=1&type=section&id=VITAS) The VITAS segment demonstrated strong growth in Q1 2024, with net patient revenue increasing 14.0% to $354.0 million. This was primarily driven by a 10.3% increase in Average Daily Census (ADC) and an 11.5% rise in days-of-care. Profitability improved significantly, with Adjusted EBITDA growing 67.2% and margins expanding by 544 basis points, aided by lapping prior-year retention program costs VITAS Healthcare Segment Performance | Metric | Q1 2024 | YoY Change | | :--- | :--- | :--- | | Net Patient Revenue | $354.0 million | +14.0% | | Average Daily Census (ADC) | 19,665 | +10.3% | | Admissions | 16,911 | +4.5% | | Adjusted EBITDA (excl. Medicare Cap) | $60.7 million | +67.2% | | Adjusted EBITDA Margin (excl. Medicare Cap) | 17.0% | +544 bps | - Revenue growth was driven by an **11.5%** increase in days-of-care and a **2.6%** increase in the geographically weighted average Medicare reimbursement rate[6](index=6&type=chunk) - The gross margin, excluding Medicare Cap, improved to **23.7%** from **19.0%** in Q1 2023. Approximately **370 basis points** of this improvement is attributed to the absence of the prior-year's Retention Program expense[6](index=6&type=chunk) - On April 17, 2024, VITAS completed the acquisition of hospice assets from Covenant Health and Community Services, Inc. for **$85 million** in cash[7](index=7&type=chunk) [Roto-Rooter Segment](index=2&type=section&id=Roto-Rooter) The Roto-Rooter segment faced a challenging quarter, with revenue declining 5.8% to $235.2 million. Both residential and commercial revenues decreased, by 3.5% and 10.5% respectively. This led to a 15.6% drop in Adjusted EBITDA to $60.7 million and a 299-basis point contraction in the Adjusted EBITDA margin to 25.8% Roto-Rooter Segment Performance | Metric | Q1 2024 | YoY Change | | :--- | :--- | :--- | | Revenue | $235.2 million | -5.8% | | Adjusted EBITDA | $60.7 million | -15.6% | | Adjusted EBITDA Margin | 25.8% | -299 bps | - Residential revenue decreased by **3.5%**, with declines in drain cleaning (**-5.6%**) and water restoration (**-8.5%**) partially offset by growth in excavation (**+1.5%**)[9](index=9&type=chunk) - Commercial revenue saw a broader decline of **10.5%**, with decreases across all service categories including drain cleaning (**-9.9%**), plumbing (**-11.9%**), and excavation (**-13.0%**)[15](index=15&type=chunk) [Corporate Overview](index=3&type=section&id=Chemed%20Consolidated) Chemed maintains a strong financial position with no debt and significant liquidity, reiterating its full-year adjusted EPS guidance [Financial Position and Capital Allocation](index=3&type=section&id=Financial%20Position%20and%20Capital%20Allocation) Chemed maintained a strong balance sheet as of March 31, 2024, with $313.4 million in cash and no debt. The company has significant liquidity with $404.8 million available under its revolving credit facility. During the quarter, Chemed repurchased 50,000 shares for $32.3 million, leaving $281.7 million in its buyback authorization - As of March 31, 2024, the company held **$313.4 million** in cash and cash equivalents with no current or long-term debt[10](index=10&type=chunk) - The company has approximately **$404.8 million** of undrawn borrowing capacity under its **$550 million** credit agreement[18](index=18&type=chunk) - In Q1 2024, Chemed repurchased **50,000 shares** for **$32.3 million** at an average price of **$646.87** per share[19](index=19&type=chunk) [2024 Full-Year Guidance](index=4&type=section&id=Guidance%20for%202024) Chemed's management has reiterated its full-year 2024 guidance for adjusted earnings per diluted share, expecting it to be in the range of $23.30 to $23.70. This guidance excludes certain items such as non-cash stock option expenses and litigation costs. An update is anticipated with the Q2 2024 earnings release - Management reiterates its full-year 2024 adjusted EPS guidance range of **$23.30** to **$23.70**[21](index=21&type=chunk) - Updated 2024 guidance is expected to be provided with the second-quarter earnings release[21](index=21&type=chunk) [Financial Statements & Reconciliations](index=6&type=section&id=Financial%20Statements) Detailed consolidated financial statements and segment-level reconciliations to non-GAAP metrics are presented for Q1 2024 [Consolidated Statements of Income](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20INCOME) For Q1 2024, Chemed's service revenues and sales grew to $589.2 million from $560.2 million in the prior-year period. Despite higher costs, income from operations was relatively stable at $72.3 million. A significant increase in 'Other income--net' to $12.6 million, primarily from market value adjustments, boosted income before taxes to $84.5 million, resulting in a net income of $65.0 million, up from $54.1 million in Q1 2023 Consolidated Statements of Income (in thousands) | (in thousands) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Service revenues and sales | $589,233 | $560,157 | | Income from operations | $72,333 | $72,819 | | Income before income taxes | $84,485 | $71,165 | | Net income | $65,017 | $54,121 | | Diluted EPS | $4.24 | $3.58 | [Consolidated Balance Sheets](index=7&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2024, Chemed's balance sheet shows a substantial increase in cash and cash equivalents to $313.4 million, compared to $58.1 million a year prior. Total assets grew to $1.73 billion. The company eliminated all long-term debt. Total stockholders' equity increased significantly to $1.18 billion from $880.1 million, reflecting strong earnings retention and share repurchases Consolidated Balance Sheets (in thousands) | (in thousands) | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $313,350 | $58,054 | | Total current assets | $539,617 | $262,221 | | Total Assets | $1,727,633 | $1,431,485 | | Long-term debt | $0 | $16,250 | | Total Liabilities | $544,138 | $551,132 | | Total Stockholders' Equity | $1,183,495 | $880,053 | [Consolidated Statements of Cash Flows](index=8&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) In Q1 2024, Chemed generated $84.5 million in net cash from operating activities, a significant increase from $60.5 million in the prior year. Investing activities used $19.4 million, mainly for capital expenditures and business combinations. Financing activities used $15.8 million, driven by share repurchases ($38.5 million) and dividends, partially offset by proceeds from stock option exercises ($37.2 million). The company's cash position increased by $49.4 million during the quarter Consolidated Statements of Cash Flows (in thousands) | (in thousands) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $84,549 | $60,492 | | Net cash used by investing activities | ($19,385) | ($17,013) | | Net cash used by financing activities | ($15,772) | ($59,551) | | Increase/(decrease) in Cash | $49,392 | ($16,072) | [Segment Financials and Reconciliations](index=9&type=section&id=Segment%20Financials%20and%20Reconciliations) The consolidating statements show that in Q1 2024, VITAS contributed $44.0 million in net income, while Roto-Rooter contributed $40.9 million. Reconciliations from GAAP to non-GAAP metrics detail adjustments for items like stock option expenses and severance costs, resulting in a consolidated Adjusted EBITDA of $114.6 million and Adjusted Net Income of $79.8 million for the quarter [Consolidating Statements of Income](index=9&type=section&id=CONSOLIDATING%20STATEMENTS%20OF%20INCOME) In Q1 2024, the VITAS segment generated $53.1 million in operating income on $354.0 million of revenue. The Roto-Rooter segment produced $50.0 million in operating income on $235.2 million of revenue. After taxes and other items, VITAS's net income was $44.0 million, and Roto-Rooter's was $40.9 million Consolidating Statements of Income (in thousands) | Q1 2024 (in thousands) | VITAS | Roto-Rooter | Corporate | Consolidated | | :--- | :--- | :--- | :--- | :--- | | Service revenues and sales | $354,007 | $235,226 | - | $589,233 | | Income/(loss) from operations | $53,120 | $50,047 | ($30,834) | $72,333 | | Net income/(loss) | $43,970 | $40,853 | ($19,806) | $65,017 | [Reconciliation of EBITDA and Adjusted EBITDA](index=10&type=section&id=RECONCILIATION%20OF%20EBITDA%20AND%20ADJUSTED%20EBITDA) For Q1 2024, consolidated EBITDA was $100.7 million. After adjustments for items including stock option expense ($9.0 million) and a severance arrangement ($5.3 million), Adjusted EBITDA reached $114.6 million. This compares to a consolidated Adjusted EBITDA of $100.1 million in Q1 2023 Reconciliation of EBITDA and Adjusted EBITDA (in thousands) | Q1 2024 (in thousands) | VITAS | Roto-Rooter | Consolidated | | :--- | :--- | :--- | :--- | | EBITDA | $63,535 | $64,114 | $100,718 | | Adjusted EBITDA | $58,312 | $60,650 | $114,622 | [Reconciliation of Adjusted Net Income](index=11&type=section&id=RECONCILIATION%20OF%20ADJUSTED%20NET%20INCOME) Chemed's Q1 2024 reported GAAP net income of $65.0 million, or $4.24 per diluted share, was adjusted for several pre-tax costs, including stock option expense and amortization. These adjustments led to an Adjusted Net Income of $79.8 million, or $5.20 per diluted share, representing a 21.5% increase from the $4.28 adjusted EPS in Q1 2023 Reconciliation of Adjusted Net Income (in thousands, except per share) | (in thousands, except per share) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net income as reported | $65,017 | $54,121 | | Adjusted net income | $79,831 | $64,723 | | Diluted EPS as reported | $4.24 | $3.58 | | Adjusted Diluted EPS | $5.20 | $4.28 | [VITAS Operating Statistics](index=12&type=section&id=OPERATING%20STATISTICS%20FOR%20VITAS%20SEGMENT) VITAS's operational metrics for Q1 2024 show an 11.5% increase in total days of care to 1,789,504. The Average Daily Census (ADC) grew to 19,665 from 17,830 in the prior year, with routine homecare ADC showing the largest increase. The average length of stay increased slightly to 103.9 days, and total admissions rose by 4.5% to 16,911 VITAS Operating Statistics | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total Days of care | 1,789,504 | 1,604,681 | | Total Average Daily Census (ADC) | 19,665 | 17,830 | | Total Admissions | 16,911 | 16,179 | | Average length of stay (days) | 103.9 | 99.9 |

Chemed’s (CHE) wholly owned subsidiary, VITAS Healthcare Corporation, recently entered into an agreement to acquire all hospice operations and an assisted living facility from Covenant Health and Community Services, Inc. (Covenant). The aggregate purchase price of the transaction is fixed at $85 million.The transaction is structured as an asset purchase and the parties will seek to close the same in second-quarter 2024, subject to certain regulatory and other approvals.More on the NewsVITAS stands to gain s ...

CINCINNATI--(BUSINESS WIRE)--VITAS Healthcare Corporation, a wholly-owned subsidiary of Chemed Corporation (“Chemed”) (NYSE: CHE), announced it entered into an agreement on March 12, 2024 to acquire all hospice operations and an assisted living facility from Covenant Health and Community Services, Inc. d/b/a/ Covenant Care (“Covenant”) for an aggregate purchase price of $85 million. Covenant’s hospice operations span the panhandle of Florida and Alabama, specifically including the Tallahassee, Marianna, For ...