Chemed(US:CHE)2024-10-29 20:30Revenue Performance - Revenue for the third quarter of 2024 increased by 7.4% to $606.2 million compared to the prior-year period[4] - Service revenues for Q3 2024 reached $606.2 million, a 7.4% increase from $564.5 million in Q3 2023[28] - The company reported a total of $1.79 billion in service revenues for the nine months ended September 30, 2024, compared to $1.68 billion for the same period in 2023, reflecting a 6.5% increase[28] - Total net revenue for the nine months ended September 30, 2024, was $1,119,970,000, compared to $965,066,000 for the same period in 2023, reflecting a 16.0% increase[40] Earnings and Profitability - Adjusted diluted EPS rose by 6.0% to $5.64, while GAAP diluted EPS increased by 1.4% to $5.00[4] - Net income for Q3 2024 was $75.8 million, compared to $75.0 million in Q3 2023, reflecting a 1.1% increase[28] - Earnings per share for Q3 2024 were $5.04, up from $4.97 in Q3 2023, representing a 1.4% increase[28] - The company reported a net income of $211,680 for the nine months ended September 2024, compared to $182,456 for the same period in 2023, representing a 16.0% increase[38] Segment Performance - VITAS segment net patient revenue reached $391.4 million, marking a 17.3% increase, with average daily census up by 15.5%[4] - Roto-Rooter segment revenue decreased by 6.9% to $214.8 million, with net income down by 18.9% to $39.8 million[5] - Total revenue for VITAS in Q3 2024 was $70,887, while Roto-Rooter reported $56,382, showing a significant performance difference between the two segments[36] Cash and Assets - As of September 30, 2024, Chemed had total cash and cash equivalents of $238.5 million and no debt[16] - Cash and cash equivalents increased to $238.5 million in Q3 2024, up from $173.2 million in Q3 2023[31] - Total assets as of September 30, 2024, amounted to $1.77 billion, an increase from $1.56 billion as of September 30, 2023[31] Shareholder Returns - The company repurchased 100,000 shares for $57.8 million, with approximately $168.1 million remaining under its share repurchase authorization[18] - Full-year 2024 earnings per diluted share guidance is estimated to be in the range of $23.00 to $23.15, representing a 13.3% to 14.0% increase from 2023[19] Expenses and Costs - Selling, general and administrative expenses for Q3 2024 totaled $102.0 million, a 1.4% increase from $99.6 million in Q3 2023[29] - The cost of services provided and goods sold for the three months ended September 30, 2024, was $362,358,000, up from $230,804,000 in 2023, reflecting a significant increase of 57%[33] - Total costs and expenses for the nine months ended September 30, 2024, were $1,538,679,000, compared to $1,449,330,000 in 2023, indicating a rise of 6.2%[35] Cash Flow - Cash provided by operating activities for the nine months ended September 30, 2024, was $252,584,000, compared to $221,736,000 in 2023, an increase of 13.9%[32] - Net cash used by investing activities for the nine months ended September 30, 2024, was $131,391,000, significantly higher than $48,972,000 in 2023[32] - Net cash used by financing activities for the nine months ended September 30, 2024, was $146,700,000, compared to $73,740,000 in 2023, indicating an increase of 98.7%[32] Operational Metrics - Average revenue per patient per day for VITAS was $199.16, an increase of 139 basis points year-over-year[8] - Days of care in homecare increased to 1,622,680 in Q3 2024 from 1,391,377 in Q3 2023, representing a 16.6% growth[40] - Average daily census in homecare rose to 17,639 days in Q3 2024, compared to 15,124 days in Q3 2023, indicating a 16.6% increase[40] - Total admissions for the nine months ended September 30, 2024, were 51,020, an increase from 47,564 in the same period of 2023, marking a 5.2% rise[40] Tax and Interest - Income taxes for Chemed Corporation in Q3 2024 amounted to $67,662, compared to $37,778 in Q3 2023, showing a significant increase of 79.2%[37] - Interest expense for Chemed Corporation in Q3 2024 was $1,281, compared to $2,766 in Q3 2023, indicating a decrease of 53.7%[37] Strategic Investments - Covenant Health acquisition contributed approximately $10 million to $11 million in revenue for VITAS in Q3 2024[6] - The company incurred acquisition expenses of $386 in Q3 2024, while the nine-month total was $1,339, reflecting ongoing strategic investments[38] Miscellaneous - Estimated uncollectible accounts as a percent of revenues were 0.6% for Q3 2024, down from 1.3% in Q3 2023[41] - Days of revenue outstanding, including unapplied Medicare payments, was 37.5 days for Q3 2024, compared to 36.4 days in Q3 2023[41] - Significant credits/charges included stock option expenses of $(6,038,000) and long-term incentive compensation of $(3,083,000) for Q3 2024[42]