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 ...

| --- | --- | --- | --- | |------------------------------|----------------|-------|-------| | | | | | | | | | | | | CHEMED CORPORA | | on | | | | | | | Results as of March 31, 2023 | | | | | | | | | | | | | | | | | | are | Forward-Looking Statements (1) (2) (3) | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------------------------------------------------|-------|--------------------------------|-------|-------------------|-------|--------------------------------------------|-------|------------- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x Quarterly Report Under Section 13 or 15 (d) of the Securities Exchange Act of 1934 for the Quarterly Period Ended March 31, 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 Empl ...

Employee and Talent Management - As of December 31, 2022, the company had a total of 14,167 employees across its subsidiaries Roto-Rooter and VITAS[132]. - The company recognizes the importance of attracting and retaining top talent, particularly in the challenging labor market during the COVID-19 pandemic[136]. - A nationwide shortage of qualified nurses and aides could adversely affect VITAS' profitability and service quality[155]. Environmental and Regulatory Liabilities - The company's estimated liability for potential environmental cleanup related to the 1991 sale of DuBois Chemicals Inc. is $1.7 million, with a maximum contingent liability of $14.9 million[130]. - The company is contingently liable for additional environmental cleanup costs but does not believe it is probable that these costs will be incurred[130]. - The company has obligations under a corporate integrity agreement with the OIG, which includes compliance monitoring and reporting requirements[121]. Competition and Market Dynamics - The company faces intense competition in the plumbing and restoration businesses, primarily competing on service range, name recognition, and customer service quality[143]. - The healthcare industry is highly competitive, with VITAS competing against numerous organizations in its service areas[156]. - VITAS faces increasing pressure from payors to control healthcare costs, which may impact revenue levels[148]. Financial Performance and Revenue Sources - Over 90% of VITAS' net patient service revenue comes from Medicare and Medicaid payments, which are primarily on a "per diem" basis[148]. - 15% to 20% of VITAS' days of care are provided to patients in nursing homes, and changes in payment laws could reduce net patient service revenue[149]. - The reduction or elimination of Medicare and Medicaid payments for hospice patients in nursing homes would negatively impact VITAS' revenue and profitability[150]. - VITAS' success relies heavily on maintaining relationships with patient referral sources, which have been affected by the pandemic[151]. - Federal and state regulations could require VITAS to invest significantly in new information systems, potentially impacting profitability[153]. Acquisitions and Investments - The company has not completed any acquisitions in 2021[140]. - VITAS acquired hospice assets from a Florida provider for $1.24 million in cash in 2022[161]. Cybersecurity and Safety Measures - The company has implemented cybersecurity measures, including intrusion detection and regular testing of IT systems, to protect sensitive customer information[147]. - The company has developed a safety program for VITAS to ensure employee and patient health during the COVID-19 pandemic, including training on hygiene and PPE usage[135]. Debt and Financial Obligations - The market value of the company's long-term debt at December 31, 2022, is approximately $97.5 million, with all outstanding debt at a variable interest rate[694]. - The company is subject to civil monetary penalties ranging from $20,000 to $100,000 per claim for knowingly submitting improperly filed claims for federal health benefits[126].

Chemed Corporation (NYSE:CHE) Q4 2022 Earnings Conference Call February 24, 2023 10:00 AM ET Company Participants Holley Schmidt – Assistant Controller Kevin McNamara – President and Chief Executive Officer Dave Williams – Executive Vice President and Chief Financial Officer Nick Westfall – President and Chief Executive Officer-VITAS Healthcare Corporation Subsidiary Conference Call Participants Joanna Gajuk – Bank of America Ben Hendrix – RBC Capital Markets Mike Wiederhorn – Oppenheimer Holley Schmidt Goo ...