Chemed Corporation (NYSE:CHE) Q1 2022 Earnings Conference Call April 27, 2022 10:00 AM ET Company Participants Kevin McNamara – President and Chief Executive Officer Nick Westfall – President and Chief Executive Officer of Chemed VITAS Healthcare Corporation Subsidiary Dave Williams – Executive Vice President and Chief Financial Officer Holley Schmidt – Assistant Controller Conference Call Participants Joanna Gajuk – Bank of America Ben Hendrix – RBC Capital Markets Operator Good day and thank you for sta ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 ¨ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period from ________ to________ Commission File Number: 1-8351 CHEMED CORPORATION (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporati ...

Financial Data and Key Metrics Changes - VITAS' net revenue for Q4 2021 was $316 million, a decline of 4.8% compared to the prior year, primarily due to a 4.2% decrease in days of care [22] - Roto-Rooter generated quarterly revenue of $225 million in Q4 2021, an increase of $23.8 million or 11.8% compared to the prior year [26] - VITAS' gross margin, excluding Medicare cap and pandemic-related costs, was 28.5%, a decline of 109 basis points from Q4 2020 [24] - Roto-Rooter's gross margin, excluding COVID impact, was 52.7%, a 77 basis point increase from Q4 2020 [29] Business Line Data and Key Metrics Changes - VITAS experienced a decline in average daily census by 4.2% year-over-year, with total admissions down 9.5% compared to Q4 2020 [36] - Roto-Rooter's residential revenue increased by 11.2% to $152 million, with growth across all service segments [26][27] - Roto-Rooter's commercial revenue totaled $53.9 million, an increase of 14.8% over the prior year [28] Market Data and Key Metrics Changes - The nursing home-based patient ratio in VITAS' average daily census stabilized at 15.6% in Q3 and Q4 2021, up from a low of 14.3% in Q1 2021 [14] - VITAS anticipates a slow improvement in senior housing admissions in the first half of 2022, with acceleration expected in the second half [14] Company Strategy and Development Direction - The company is focusing on hiring and retention initiatives to address labor shortages in the healthcare sector, particularly for VITAS [9][10] - Roto-Rooter plans to continue passing through price increases to maintain technician compensation and expand its workforce [16][62] - The company is open to potential acquisitions of well-positioned hospices due to the changing landscape and lower multiples in the market [50][82] Management's Comments on Operating Environment and Future Outlook - Management noted that the healthcare labor market remains challenging, with staffing shortages impacting VITAS' ability to respond to referrals [9][42] - The company expects inflationary pressures to continue affecting margins until reimbursement rates catch up, which is anticipated to occur with the October 2022 adjustments [11][73] - Management expressed confidence in the long-term growth of the hospice industry, expecting a return to pre-pandemic levels of admissions and revenue growth [88] Other Important Information - Chemed repurchased 495,529 shares for $246 million during the quarter, with approximately $202 million remaining under the share repurchase authorization [32] - The full-year 2022 earnings guidance for VITAS anticipates a revenue decline of 1.5% to 2.5% compared to 2021, while Roto-Rooter is expected to achieve revenue growth of 8% to 9.5% [33][34] Q&A Session Summary Question: Discussion on VITAS admission decline and labor shortages - Management clarified that the decline is not solely a demand issue but also due to healthcare system disruptions and staffing shortages [42][43] Question: Clarification on recruiting and retention metrics - Management stated they do not release specific metrics but emphasized improvements in recruiting performance compared to peers [45][52] Question: Impact of inflation on labor costs and guidance - Management acknowledged that inflationary pressures are built into their guidance, with expectations for continued investment in clinical staff [55][57] Question: Roto-Rooter pricing increases and demand - Management confirmed mid- to high single-digit price increases were implemented, with further increases anticipated throughout 2022 [62][64] Question: Expectations for senior housing referrals and median length of stay - Management expects normalization of senior housing referrals and median length of stay by the end of 2022 [101]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section provides Chemed Corporation's unaudited consolidated financial statements as of September 30, 2021, detailing financial position, performance, cash flows, and equity changes, along with comprehensive accounting notes [Unaudited Consolidated Balance Sheets](index=3&type=section&id=Unaudited%20Consolidated%20Balance%20Sheets) As of September 30, 2021, total assets decreased to **$1.318 billion** from **$1.435 billion** due to a significant reduction in cash, while stockholders' equity declined to **$780 million** from **$901 million** primarily due to share repurchases Consolidated Balance Sheet Summary (USD in thousands) | Item | September 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash and Cash Equivalents | 28,743 | 162,675 | | Accounts Receivable | 118,193 | 126,853 | | Total Current Assets | 200,564 | 329,403 | | **Total Assets** | **1,318,133** | **1,434,911** | | **Liabilities and Stockholders' Equity** | | | | Total Current Liabilities | 286,086 | 299,108 | | **Total Liabilities** | **538,414** | **533,711** | | **Total Stockholders' Equity** | **779,719** | **901,200** | | **Total Liabilities and Stockholders' Equity** | **1,318,133** | **1,434,911** | [Unaudited Consolidated Statements of Income](index=4&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Income) In Q3 2021, service revenues and sales grew **2.0%** to **$539 million**, with net income increasing **6.3%** to **$72 million** and diluted EPS reaching **$4.55**, while nine-month net income was **$194 million** Consolidated Statements of Income Summary (USD in thousands, except per share data) | Item | Q3 2021 | Q3 2020 | Nine Months Ended 2021 | Nine Months Ended 2020 | | :--- | :--- | :--- | :--- | :--- | | Service Revenues and Sales | 538,667 | 528,297 | 1,598,283 | 1,546,294 | | Operating Income | 92,869 | 74,308 | 245,009 | 246,431 | | Income Before Income Taxes | 95,420 | 81,604 | 254,187 | 250,149 | | **Net Income** | **72,003** | **67,722** | **193,925** | **205,714** | | **Diluted Earnings Per Share** | **$4.55** | **$4.14** | **$12.06** | **$12.53** | [Unaudited Consolidated Statements of Cash Flows](index=5&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities for the nine months ended 2021 significantly decreased to **$245 million** from **$402 million** due to prior year CARES Act benefits, with **$335 million** in financing outflows primarily for share repurchases Consolidated Statements of Cash Flows Summary (Nine Months Ended September 30, USD in thousands) | Item | 2021 | 2020 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | 245,027 | 402,412 | | Net Cash Used in Investing Activities | (43,712) | (45,598) | | Net Cash Used in Financing Activities | (335,247) | (250,207) | | Net (Decrease)/Increase in Cash and Cash Equivalents | (133,932) | 106,607 | | Cash and Cash Equivalents at Beginning of Period | 162,675 | 6,158 | | **Cash and Cash Equivalents at End of Period** | **28,743** | **112,765** | [Unaudited Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) As of September 30, 2021, total stockholders' equity was **$780 million**, primarily reduced by **$330 million** in share repurchases during the nine months, offsetting net income and dividend payments of **$16.5 million** - For the nine months ended 2021, the company repurchased **$330 million** of treasury stock, which was the primary factor contributing to the decrease in stockholders' equity[20](index=20&type=chunk) - For the nine months ended 2021, the company paid dividends of **$1.04 per share**, totaling **$16.46 million**[20](index=20&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) These notes detail key accounting policies, including the impact of the CARES Act, revenue recognition methods for VITAS and Roto-Rooter, lease liabilities, and ongoing legal matters such as DOJ civil investigations and OIG audits - Under the CARES Act, the company received **$80.2 million** in relief funds and deferred **$36.4 million** in payroll taxes in 2020, with the suspension of the 2% Medicare sequestration adding **$17.9 million** in revenue for the nine months ended 2021[27](index=27&type=chunk) - The company details revenue recognition policies for its VITAS (hospice) and Roto-Rooter (plumbing) segments, with VITAS revenue primarily from Medicare based on care levels, and Roto-Rooter revenue by service type[41](index=41&type=chunk)[63](index=63&type=chunk) - The company faces multiple legal and regulatory matters, including a five-year Corporate Integrity Agreement (CIA) with the Department of Justice (DOJ) and a Civil Investigative Demand (CID) from the DOJ in October 2020 regarding its Florida operations[100](index=100&type=chunk)[105](index=105&type=chunk) - In May 2021, the company increased its share repurchase authorization by **$300 million**, with **$148 million** remaining as of September 30, 2021, after repurchasing **700,000 shares** for **$330 million** in the nine months ended 2021[115](index=115&type=chunk) Key Financial Position Overview (September 30, 2021 vs December 31, 2020) | Balance Sheet Item | September 30, 2021 (USD in thousands) | December 31, 2020 (USD in thousands) | Change | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 28,743 | 162,675 | ▼ Decrease | | Total Assets | 1,318,133 | 1,434,911 | ▼ Decrease | | Total Liabilities | 538,414 | 533,711 | ▲ Increase | | Total Stockholders' Equity | 779,719 | 901,200 | ▼ Decrease | Operating Performance Overview (Three and Nine Months Ended September 30, 2021) | Income Statement Item | Q3 2021 (USD in thousands) | Q3 2020 (USD in thousands) | Nine Months Ended 2021 (USD in thousands) | Nine Months Ended 2020 (USD in thousands) | | :--- | :--- | :--- | :--- | :--- | | Service Revenues and Sales | 538,667 | 528,297 | 1,598,283 | 1,546,294 | | Net Income | 72,003 | 67,722 | 193,925 | 205,714 | | Diluted Earnings Per Share | $4.55 | $4.14 | $12.06 | $12.53 | Cash Flow Overview (Nine Months Ended September 30, 2021) | Cash Flow Item | 2021 (USD in thousands) | 2020 (USD in thousands) | Trend | | :--- | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | 245,027 | 402,412 | ▼ Decrease | | Net Cash Used in Investing Activities | (43,712) | (45,598) | ▼ Decrease outflow | | Net Cash Used in Financing Activities | (335,247) | (250,207) | ▲ Increase outflow | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition and operating results, highlighting **15.7%** growth in Roto-Rooter offsetting a **5.8%** decline in VITAS due to COVID-19 impacts, leading to an upward revision of 2021 adjusted diluted EPS guidance to **$19.00-$19.20** - The company raised its full-year 2021 Adjusted Diluted EPS guidance from **$17.00-$17.50** to **$19.00-$19.20**[132](index=132&type=chunk) - VITAS revenue is projected to decline approximately **5%** in 2021 due to reduced admissions from lower nursing home occupancy rates impacted by the pandemic, while Roto-Rooter revenue is expected to grow **17.3%**[130](index=130&type=chunk)[131](index=131&type=chunk) Q3 2021 vs Q3 2020 Revenue Changes | Business Segment | Revenue Change | Primary Reason | | :--- | :--- | :--- | | Roto-Rooter | ▲ 15.7% | Growth across all major service lines | | VITAS | ▼ 5.8% | 5.3% decrease in days of care | [Financial Condition](index=24&type=section&id=Financial%20Condition) As of September 30, 2021, the company maintains a strong financial position with no outstanding debt and **$404 million** in available credit, despite a decrease in operating cash flow due to prior year CARES Act benefits and increased treasury stock from repurchases - As of September 30, 2021, the company has no outstanding debt and approximately **$403.8 million** in available revolving credit facilities[82](index=82&type=chunk)[140](index=140&type=chunk) - Operating cash flow for the nine months ended 2021 was **$245 million**, a **$157 million** decrease year-over-year, primarily due to **$48 million** in CARES Act grants and **$22.9 million** in deferred payroll taxes in the prior year[136](index=136&type=chunk) [Results of Operations](index=26&type=section&id=Results%20of%20Operations) This section analyzes Q3 and nine-month operating results, showing **2.0%** consolidated revenue growth in Q3 driven by **15.7%** Roto-Rooter expansion offsetting a **5.8%** VITAS decline, with overall consolidated revenue up **3.4%** for the nine months and improved gross margins Q3 2021 vs Q3 2020 Performance Comparison | Metric | Q3 2021 | Q3 2020 | Change | | :--- | :--- | :--- | :--- | | Consolidated Revenue (USD in millions) | 538.7 | 528.3 | ▲ 2.0% | | Roto-Rooter Revenue (USD in millions) | 221.3 | 191.2 | ▲ 15.7% | | VITAS Revenue (USD in millions) | 317.4 | 337.1 | ▼ 5.8% | | Consolidated Gross Margin | 36.5% | 35.8% | ▲ 0.7pp | YTD 2021 vs YTD 2020 Performance Comparison | Metric | YTD 2021 | YTD 2020 | Change | | :--- | :--- | :--- | :--- | | Consolidated Revenue (USD in millions) | 1,598.3 | 1,546.3 | ▲ 3.4% | | Roto-Rooter Revenue (USD in millions) | 653.1 | 543.8 | ▲ 20.1% | | VITAS Revenue (USD in millions) | 945.1 | 1,002.5 | ▼ 5.7% | | Consolidated Gross Margin | 35.4% | 32.5% | ▲ 2.9pp | - VITAS revenue declined primarily due to a **5.3%** decrease in days of care in Q3 and **6.2%** YTD, linked to the negative impact of the pandemic on nursing home occupancy and other senior care facilities[145](index=145&type=chunk)[159](index=159&type=chunk) - Roto-Rooter's revenue growth across all major service lines (plumbing, drain, excavation, water restoration) was driven by improved pricing, service mix, and increased work volume[146](index=146&type=chunk)[160](index=160&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate risk from its variable-rate credit facility, though it had no outstanding variable-rate debt as of September 30, 2021, with a **100 basis point** rate change impacting annual interest expense by **$0.1 million** per **$10 million** borrowed - The company's primary market risk is interest rate risk associated with its credit facilities[192](index=192&type=chunk) - As of September 30, 2021, the company had no outstanding variable-rate debt, resulting in zero direct interest rate exposure[192](index=192&type=chunk) - Sensitivity analysis indicates that a **1%** change in interest rates would impact annual interest expense by **$0.1 million** for every **$10 million** borrowed[192](index=192&type=chunk) [Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO, CFO, and Controller, assessed the effectiveness of disclosure controls and procedures as of the reporting period end, concluding they were effective with no material changes to internal control over financial reporting during the quarter - Company management assessed and confirmed the effectiveness of disclosure controls and procedures as of the end of the reporting period[194](index=194&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected or are reasonably likely to materially affect these controls[194](index=194&type=chunk) [PART II. OTHER INFORMATION](index=40&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) Information regarding the company's legal proceedings refers directly to Note 11, 'Legal and Regulatory Matters,' in Part I of this report, providing no new disclosures - For detailed information on the company's legal proceedings, refer to Note 11, 'Legal and Regulatory Matters,' under Item 1 in Part I of this report[195](index=195&type=chunk) [Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) The company states there have been no material changes to the risk factors previously disclosed in its most recent Annual Report on Form 10-K - No other material changes have occurred compared to the risk factors disclosed in the company's most recent Annual Report on Form 10-K[196](index=196&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's share repurchase activities, including the repurchase of **350,000 shares** for **$163.7 million** in Q3 2021 at an average price of **$467.80**, with **$148 million** remaining under the authorization as of September 30, 2021 Summary of 2021 Share Repurchase Activity | Period | Shares Repurchased | Average Price/Share (USD) | Total Cost (USD in millions) | | :--- | :--- | :--- | :--- | | Q1 2021 | 100,000 | 447.67 | 44.8 | | Q2 2021 | 250,000 | 487.52 | 121.9 | | Q3 2021 | 350,000 | 467.80 | 163.7 | | **Total Nine Months Ended 2021** | **700,000** | **471.97** | **330.4** | - As of September 30, 2021, **$148 million** remained authorized under the company's share repurchase program[115](index=115&type=chunk)[198](index=198&type=chunk) [Defaults Upon Senior Securities](index=41&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no matters under this item [Mine Safety Disclosures](index=41&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company reports no matters under this item [Other Information](index=41&type=section&id=Item%205.%20Other%20Information) The company reports no matters under this item [Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the 10-Q report, primarily including certifications by company executives (CEO, CFO, Controller) as required by the Exchange Act and Sarbanes-Oxley Act, and financial statement data in iXBRL format - Exhibits include certifications by the Chief Executive Officer, Chief Financial Officer, and Controller under Exchange Act Rule 13a-14(a)/15d-14(a) and Section 906 of the Sarbanes-Oxley Act[204](index=204&type=chunk) - Exhibits 101 and 104 contain financial statements and notes formatted in iXBRL (Inline eXtensible Business Reporting Language)[203](index=203&type=chunk)

Chemed Corporation (NYSE:CHE) Q3 2021 Earnings Conference Call October 29, 2021 10:00 AM ET Company Participants Sherri Warner - IR Kevin McNamara - President and CEO Dave Williams - EVP and CFO Nick Westfall - President and CEO-Chemed's VITAS Healthcare Corporation Subsidiary Conference Call Participants Joanna Gajuk - Bank of America Frank Morgan - RBC Capital Operator Good day, ladies and gentlemen. Thank you for standing by and welcome to Chemed Corporation Third Quarter 2021 Earnings Conference Call. A ...

| --- | --- | |-------|------------------------------| | | | | (IRS | Employer Identification No.) | | | 45202 (Zip code) | 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 June 30, 2021 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 registran ...

Financial Data and Key Metrics Changes - VITAS' net revenue was $312 million in Q2 2021, a decline of 4.7% compared to the prior year period, primarily due to a 6.3% reduction in days of care, offset by a 1.8% increase in Medicare reimbursement rates [16][23] - Roto-Rooter generated revenue of $220 million in Q2 2021, an increase of $45.6 million or 26.1% over the prior year quarter [19] - Chemed repurchased 250,000 shares for approximately $122 million, with a remaining share repurchase authorization of about $312 million as of June 30, 2021 [22] Business Line Data and Key Metrics Changes - VITAS experienced a decline in average daily census by 6.3% to 17,995 patients, with total admissions at 16,840, slightly improving compared to Q2 2020 [27][29] - Roto-Rooter’s commercial revenue totaled $50.3 million, an increase of 31.8% year-over-year, with residential revenue reaching $149 million, up 23.7% [19][21] - Roto-Rooter’s adjusted EBITDA margin for 2021 is estimated to be between 28% and 29% [25] Market Data and Key Metrics Changes - Senior housing occupancy is beginning to recover, with expectations for steady improvement in hospice admissions in the second half of 2021 [14] - Hospital-generated admissions for VITAS have largely normalized to pre-pandemic levels, while referrals from senior housing remain disrupted [28] Company Strategy and Development Direction - Roto-Rooter is positioned for continued market share expansion by leveraging brand awareness and customer response capabilities [13] - VITAS is focusing on improving referral patterns from physician offices and other settings to enhance admissions [63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery trajectory, noting that admissions have exceeded discharges for the first time since the pandemic began [29][36] - The company anticipates that Roto-Rooter's residential demand will remain strong, with commercial demand expected to increase as consumer behavior normalizes [11][25] Other Important Information - The company updated its 2021 earnings guidance, projecting VITAS' revenue to decline approximately 4.5% compared to 2020, while Roto-Rooter is forecasted to achieve revenue growth of 15% to 15.5% [23][25] - Management highlighted the competitive labor market but noted that staffing is not currently impeding growth [40] Q&A Session Summary Question: How would you characterize the momentum across the months of the quarter? - Management noted that there was strengthening in the admit versus discharge differential throughout the quarter, with improvements observed in May and June [33][36] Question: What is your strategy regarding labor availability? - The company is focused on retaining high-quality employees and actively recruiting in specific markets, despite the competitive labor environment [38][40] Question: How would the business react to the recent surge in COVID-19 variants? - Management expressed confidence in their preparedness due to higher vaccination rates among staff and sufficient PPE, allowing them to navigate potential challenges effectively [41][42] Question: Can you provide insights on the commercial side of Roto-Rooter? - Management confirmed that commercial revenue is returning close to pre-pandemic levels, with strong momentum continuing into July [46][48] Question: What is driving the reduction in VITAS margin guidance? - The reduction is attributed to increased costs related to salaries, wages, and medical supplies, with management taking targeted actions to manage these costs [52][54] Question: What are the expectations for VITAS outside of senior housing referrals? - VITAS is seeing growth in hospital business and is focusing on physician office settings to enhance referrals [64] Question: Any updates on the hospice carve-in demonstration with MA? - The company is not participating in the first year of the demonstration but continues to engage with CMMI regarding design concerns [66][70]

| --- | --- | --- | --- | |-------|------------------------------|-------|-------| | | | | | | | | | | | | CHEMED CORPORA | | Z | | | | | | | | | | | | | Results as of March 31, 2021 | | | | | | | B | | | He | | are | Safe Harbor and Regulation G Statement This presentation contains information about Chemed's EBITDA, Adjusted EBITDA, EBIT, Adjusted EBIT, Adjusted Net Income and Adjusted Diluted EPS, which are not measures derived in accordance with GAAP and which exclude components that are important to und ...

| --- | --- | |-------|------------------------------------| | | | | (IRS | Employer Identification No.) 45202 | 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, 2021 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 speci ...

Chemed Corporation (NYSE:CHE) Q1 2021 Earnings Conference Call March 28, 2021 10:30 AM ET Company Participants Sherri Warner – Investor Relations Kevin McNamara – President and Chief Executive Officer Dave Williams – Executive Vice President and Chief Financial Officer Nick Westfall – President and Chief Executive Officer-Chemed's VITAS Healthcare Corporation subsidiary Conference Call Participants Joanna Gajuk – Bank of America Frank Morgan – RBC Capital Markets Operator Good morning. Thank you for standin ...