Call Start: 10:00 January 1, 0000 10:42 AM ET Chemed Corporation (NYSE:CHE) Q4 2023 Earnings Conference Call February 28, 2024, 10:00 am ET Company Participants Holley Schmidt - Assistant Controller Kevin McNamara - President & CEO Mike Witzeman - CFO Nick Westfall - CEO, VITAS Healthcare Corporation Conference Call Participants Joanna Gajuk - Bank of America Michael Murray - RBC Capital Markets Holley Schmidt [Call Starts Abruptly] Financial Results for the Fourth Quarter of 2023 ended December 31, 2023. B ...

Revenue Dependence and Financial Performance - VITAS generates over 90% of its revenue from the Medicare program, indicating significant reliance on government funding[40] - Over 95% of VITAS' revenue comes from Medicare and Medicaid payments, primarily on a "per diem" basis, making the company vulnerable to cost management challenges[86] - VITAS derives over 95% of its net patient service revenue from Medicare and Medicaid, making its profitability highly dependent on managing service costs[154] - VITAS' net patient service revenue and profits are highly dependent on payments from Medicare and Medicaid, with potential material impacts from changes in payment rates or methods[184] - VITAS' profitability could be negatively impacted by potential reductions in Medicare and Medicaid payments, particularly for hospice services[155] Regulatory Compliance and Legal Risks - VITAS has satisfied the requirements of a Corporate Integrity Agreement with the Office of the Inspector General, concluding on June 22, 2023[54] - The Medicare Conditions of Participation require hospices to meet specific standards to receive payments, with ongoing compliance being critical[74] - VITAS must maintain clinical records for each patient, ensuring compliance with regulatory requirements[52] - The company is subject to heightened scrutiny from state and federal regulators regarding acquisitions of non-profit hospice programs, which may increase costs or hinder future acquisitions[85] - VITAS maintains compliance with applicable licensure and certification requirements, but non-compliance could adversely affect operations and participation in Medicare and Medicaid programs[111] - The company faces potential penalties under the Anti-Kickback Law, which could include fines and exclusion from Medicare and Medicaid programs[96] - Legislative and regulatory changes could require VITAS to invest substantially in new information systems, negatively impacting profitability and cash flows[213] Market Competition and Industry Landscape - The hospice care industry is highly fragmented, with VITAS being one of the largest providers, competing against numerous small, community-based hospices[42] - The company faces competition from national and regional hospice providers, as well as other healthcare entities diversifying into hospice care[70] - VITAS faces intense competition in the hospice care market, competing with national and regional companies, physician groups, and home health agencies[218] Operational Challenges and Workforce Issues - The current nationwide shortage of qualified nurses and aides is impacting VITAS' ability to provide quality hospice services, leading to increased wages and benefits to attract and retain staff[216][217] - VITAS' operations are significantly exposed to hurricanes due to its headquarters in South Florida, which could adversely affect billing and service delivery during major weather events[225] - The company has established a reserve for environmental liabilities related to historical contamination, but actual cleanup costs may exceed current estimates, potentially impacting financial condition[228] Financial Management and Strategic Decisions - The company has engaged in twelve significant acquisitions or divestitures since its inception, focusing on maximizing shareholder value[35] - VITAS' ability to repay or refinance its indebtedness depends on operating performance, which may be affected by various external factors[208] - The company has not experienced any known data breaches that compromised customer data, but it maintains safeguards against cyber-attacks[182] - VITAS has historically incurred debt to finance operations, and insufficient cash flows may force the company to reduce capital expenditures or restructure debt[230][231] Employee Engagement and Corporate Culture - The "Difference Maker Program" provided over $31.6 million in bonuses to employees during the pandemic, with $8.9 million remaining accrued for bonuses earned through June 2024[146] - The company emphasizes the importance of a diverse and inclusive workforce to foster innovation and better serve its diverse customer base[173] - Roto-Rooter has implemented extensive training programs for employees, focusing on safety, human resources, and regulatory compliance[171] Risk Management and Future Outlook - VITAS maintains a reputation management risk program to mitigate adverse publicity and maintain referral sources' willingness to refer patients[201] - VITAS' future success is contingent on the continued service of senior management personnel, with potential negative impacts from the loss of key management[191] - Future public health concerns, similar to the COVID-19 pandemic, may negatively impact VITAS' ability to operate and serve patients, affecting demand for services[232]

Chemed (CHE) reported $585.91 million in revenue for the quarter ended December 2023, representing a year-over-year increase of 7.2%. EPS of $6.60 for the same period compares to $5.39 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $587.45 million, representing a surprise of -0.26%. The company delivered an EPS surprise of +5.60%, with the consensus EPS estimate being $6.25.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Stre ...

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]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Chemed Corporation's unaudited consolidated financial statements for Q3 and nine months ended September 30, 2023 Consolidated Financial Highlights (Q3 2023 vs Q3 2022) | Financial Metric | Q3 2023 (in thousands) | Q3 2022 (in thousands) | Change | | :--- | :--- | :--- | :--- | | **Service Revenues and Sales** | $564,532 | $526,472 | +7.2% | | **Income from Operations** | $86,850 | $80,857 | +7.4% | | **Net Income** | $74,958 | $56,873 | +31.8% | | **Diluted EPS** | $4.93 | $3.78 | +30.4% | Consolidated Financial Highlights (Nine Months Ended Sep 30, 2023 vs 2022) | Financial Metric | Nine Months 2023 (in thousands) | Nine Months 2022 (in thousands) | Change | | :--- | :--- | :--- | :--- | | **Service Revenues and Sales** | $1,678,505 | $1,588,309 | +5.7% | | **Net Income** | $182,456 | $187,498 | -2.7% | | **Diluted EPS** | $12.02 | $12.41 | -3.1% | Key Balance Sheet Data (as of Sep 30, 2023 vs Dec 31, 2022) | Balance Sheet Item | Sep 30, 2023 (in thousands) | Dec 31, 2022 (in thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $394,539 | $272,612 | | **Total Assets** | $1,562,079 | $1,442,012 | | **Total Current Liabilities** | $297,219 | $297,205 | | **Total Liabilities** | $542,836 | $643,297 | | **Total Stockholders' Equity** | $1,019,243 | $798,715 | Cash Flow Summary (Nine Months Ended Sep 30, 2023 vs 2022) | Cash Flow Activity | Nine Months 2023 (in thousands) | Nine Months 2022 (in thousands) | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $221,736 | $209,687 | | **Net Cash used by Investing Activities** | $(48,972) | $(39,914) | | **Net Cash used by Financing Activities** | $(73,740) | $(194,887) | | **Increase/(Decrease) in Cash** | $99,024 | $(25,114) | [Notes to Unaudited Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) This section provides detailed explanations for consolidated financial statement line items, including revenue recognition, debt, and legal matters [Note 2. Revenue Recognition](index=9&type=section&id=Note%202.%20Revenue%20Recognition) This note details the company's revenue recognition policies under ASC 606 for both VITAS and Roto-Rooter segments - VITAS revenue is recognized over time based on the level of care provided (Routine Home Care, Continuous Home Care, Inpatient Care), with adjustments for Medicare caps and implicit price concessions[95](index=95&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk) - Roto-Rooter recognizes revenue for its primary services (plumbing, drain cleaning, water restoration) at a point in time when the service is completed and accepted by the customer[22](index=22&type=chunk)[23](index=23&type=chunk) Disaggregated Revenue - Roto-Rooter (Nine Months Ended Sep 30) | Service Line | 2023 (in thousands) | 2022 (in thousands) | | :--- | :--- | :--- | | Short term core | $509,044 | $504,688 | | Water restoration | $141,176 | $127,678 | | Independent contractors | $65,684 | $62,897 | | **Net Revenue** | **$713,439** | **$694,803** | Disaggregated Revenue - VITAS (Nine Months Ended Sep 30) | Level of Care | 2023 (in thousands) | 2022 (in thousands) | | :--- | :--- | :--- | | Routine home care | $832,554 | $771,520 | | Continuous care | $63,054 | $57,717 | | Inpatient care | $84,312 | $75,714 | | **Net Revenue** | **$965,066** | **$893,506** | [Note 5. Long-Term Debt and Lines of Credit](index=15&type=section&id=Note%205.%20Long-Term%20Debt%20and%20Lines%20of%20Credit) This note details the company's 2022 Credit Facilities, including the full repayment of its term loan and compliance with debt covenants - In Q1 2023, the company made prepayments of **$75.0 million** on its term loan and paid the remaining **$21.3 million** balance on April 28, 2023, reducing total borrowing capacity to **$450.0 million**[41](index=41&type=chunk) - As of September 30, 2023, the company is in compliance with all debt covenants and has approximately **$404.8 million** of unused lines of credit available under its revolving credit facility[42](index=42&type=chunk) [Note 10. Legal and Regulatory Matters](index=18&type=section&id=Note%2010.%20Legal%20and%20Regulatory%20Matters) This note describes ongoing legal and regulatory matters, primarily concerning the VITAS segment, including an OIG audit and a repayment demand - On June 22, 2023, the OIG confirmed that VITAS satisfied its requirements under the five-year Corporate Integrity Agreement (CIA) that began in 2017, and the CIA was concluded[186](index=186&type=chunk) - VITAS received a demand letter from its MAC for **$50.3 million** following an OIG audit, and VITAS has deposited this amount to preserve its appeal rights and is actively appealing the claims[188](index=188&type=chunk) [Note 17. Acquisitions](index=21&type=section&id=Note%2017.%20Acquisitions) This note outlines the company's acquisition activities during 2023, with the Roto-Rooter segment completing two franchise acquisitions - In 2023, Roto-Rooter acquired one franchise in South Carolina for **$305,000** and one in Georgia for **$3.689 million** in cash[195](index=195&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management provides an overview of the company's performance, financial condition, and future outlook, including liquidity and segment analysis - The company updated its full-year 2023 adjusted earnings per diluted share guidance to be in the range of **$19.82** to **$20.02**[231](index=231&type=chunk) - VITAS implemented a hiring and retention bonus program for licensed healthcare workers starting July 1, 2022, with **$43.4 million** accrued since inception and **$28.6 million** paid in July 2023[229](index=229&type=chunk) Updated Full-Year 2023 Guidance | Segment/Metric | 2023 Forecast | | :--- | :--- | | **VITAS Revenue Growth (pre-Medicare Cap)** | 9.3% to 9.5% | | **VITAS Adjusted EBITDA Margin (pre-Medicare Cap)** | 15.4% to 15.7% | | **Roto-Rooter Revenue Growth** | 1.6% to 2.0% | | **Roto-Rooter Adjusted EBITDA Margin** | 28.4% to 28.6% | [Financial Condition, Liquidity and Capital Resources](index=23&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) The company's financial condition remains strong, marked by increased cash, full repayment of long-term debt, and improved operating cash flow - The company fully repaid its **$97.5 million** in long-term debt during the first nine months of 2023[209](index=209&type=chunk)[205](index=205&type=chunk) - Net cash provided by operating activities increased by **$12.0 million** to **$221.7 million** for the first nine months of 2023, largely due to a **$44.0 million** positive change in accounts receivable timing[210](index=210&type=chunk) - Management believes operating income and cash flows are sufficient to operate the business and meet commitments for the foreseeable future[206](index=206&type=chunk) [Results of Operations - Three Months Ended Sep 30, 2023 vs 2022](index=25&type=section&id=Results%20of%20Operations%20-%20Three%20Months%20Ended%20Sep%2030%2C%202023%20vs%202022) Consolidated revenue increased in Q3 2023, driven by VITAS's growth and improved gross margin, leading to a significant rise in net income Q3 2023 vs Q3 2022 Revenue by Segment | Segment | Q3 2023 Revenue (in thousands) | Q3 2022 Revenue (in thousands) | % Change | | :--- | :--- | :--- | :--- | | **VITAS** | $333,728 | $296,536 | +12.5% | | **Roto-Rooter** | $230,804 | $229,936 | +0.4% | | **Total** | **$564,532** | **$526,472** | **+7.2%** | - VITAS's revenue growth was driven by a **9.4%** increase in days-of-care and a **~2.7%** increase in the Medicare reimbursement rate[240](index=240&type=chunk) - The consolidated gross margin improved to **35.8%** from **34.1%** in Q3 2022, primarily due to margin expansion at VITAS as the licensed healthcare worker retention bonus program expired[270](index=270&type=chunk) - The company's effective tax rate for Q3 2023 was **19.6%**, down from **25.6%** in Q3 2022, due to a one-time **$4.2 million** benefit from realigning its state and local corporate tax structure[243](index=243&type=chunk)[272](index=272&type=chunk) [Results of Operations - Nine Months Ended Sep 30, 2023 vs 2022](index=28&type=section&id=Results%20of%20Operations%20-%20Nine%20Months%20Ended%20Sep%2030%2C%202023%20vs%202022) Consolidated revenue grew for the first nine months of 2023, but net income decreased due to lower gross margin at VITAS, impacted by retention bonus expenses Nine Months 2023 vs 2022 Revenue by Segment | Segment | Nine Months 2023 Revenue (in thousands) | Nine Months 2022 Revenue (in thousands) | % Change | | :--- | :--- | :--- | :--- | | **VITAS** | $965,066 | $893,506 | +8.0% | | **Roto-Rooter** | $713,439 | $694,803 | +2.7% | | **Total** | **$1,678,505** | **$1,588,309** | **+5.7%** | - VITAS's revenue increase was driven by a **6.2%** increase in days-of-care and a **~2.8%** increase in the Medicare reimbursement rate[246](index=246&type=chunk) - The consolidated gross margin decreased to **34.0%** from **35.8%** in the prior-year period, mainly caused by the VITAS gross margin falling to **20.2%** from **22.3%** due to the retention bonus program expense[247](index=247&type=chunk) - The effective tax rate for the first nine months of 2023 was **22.3%**, compared to **24.2%** in the same period of 2022, reflecting the benefit from the state and local tax structure realignment[134](index=134&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section discusses the company's exposure to market risks, primarily interest rate risk associated with its variable-rate debt - The company's primary market risk is interest rate risk from its variable interest line of credit[262](index=262&type=chunk) - As of September 30, 2023, the company had no variable rate debt outstanding, minimizing its current exposure to interest rate fluctuations[262](index=262&type=chunk) [Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirms the effectiveness of the company's disclosure controls and procedures and reports no material changes to internal controls - Based on an evaluation, the President and CEO, EVP and CFO, and VP and Controller concluded that the company's disclosure controls and procedures were effective as of the end of the period[294](index=294&type=chunk) - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[294](index=294&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 10 of the financial statements for detailed information regarding the company's material legal matters - For information regarding the Company's legal proceedings, see Note 10, Legal and Regulatory Matters, under Part I, Item 1 of this report[301](index=301&type=chunk) [Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) The company states that there have been no material changes from the risk factors previously disclosed in its most recent Annual Report on Form 10-K - There have been no material changes from the risk factors previously disclosed in the Company's most recent Annual Report on Form 10-K[295](index=295&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's share repurchase activities, including Q3 2023 repurchases and the remaining authorization Share Repurchase Activity (Q3 2023) | Period | Total Shares Repurchased | Weighted Average Price Paid Per Share | | :--- | :--- | :--- | | **July 2023** | 0 | N/A | | **August 2023** | 11,206 | $508.01 | | **September 2023** | 17,251 | $501.52 | | **Q3 Total** | **28,457** | **$504.07** | - As of September 30, 2023, the company had **$60.1 million** remaining under its share repurchase authorization[181](index=181&type=chunk)[159](index=159&type=chunk) [Exhibits](index=41&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by key executives and financial data in iXBRL format - The report includes certifications from Kevin J. McNamara (CEO), David P. Williams (CFO), and Michael D. Witzeman (Controller) pursuant to Rule 13a-14(a)/15d-14(a) and Section 906 of the Sarbanes-Oxley Act[297](index=297&type=chunk) - Financial statements and notes are provided in iXBRL (Inline eXtensible Business Reporting Language) format as Exhibit 101[266](index=266&type=chunk)

| --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------------------------------------|-------|--------------------------|-------|---------------|-------|----------------------------------------------------------------------------------------------|-------|-------------------------------------| | | | \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 ...