Chemed(CHE) - 2023 Q4 - Annual Results

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].