Chemed(US:CHE)2025-04-28 13:06Financial Performance - Service revenues and sales for Q1 2025 increased by 9.8% to $646,943,000 compared to $589,233,000 in Q1 2024[118] - Net income for Q1 2025 was $71,757,000, up from $65,017,000 in Q1 2024, representing an increase of 11.8%[104] - Adjusted EBITDA for Q1 2025 was $121,692,000, with an adjusted EBITDA margin of 18.8%, down from 19.5% in Q1 2024[104] - Total service revenues and sales for Q1 2025 reached $646,943,000, an increase from $589,233,000 in Q1 2024, representing a growth of 9.8%[129] - Net income for Q1 2025 was $71,757,000, compared to $65,017,000 in Q1 2024, reflecting an increase of 10.7%[129] - Adjusted EBITDA for Q1 2025 was $121,692,000, compared to $114,622,000 in Q1 2024, reflecting a year-over-year increase of 6.5%[134] - Adjusted net income for Q1 2025 was $83,074,000, up from $79,831,000 in Q1 2024, which is an increase of 4.0%[134] Segment Performance - VITAS experienced a 15.1% increase in service revenues, driven by an 11.9% increase in days-of-care and a 3.2% increase in Medicare reimbursement rates[105] - VITAS segment net income for Q1 2025 was $50,030,000, up from $43,970,000 in Q1 2024, a growth of 13.4%[126] - Roto-Rooter saw a 1.8% increase in net revenue, with excavation and water restoration revenues increasing by 9.6% and 16.0%, respectively[118] - Roto-Rooter segment net income decreased to $39,944,000 in Q1 2025 from $40,853,000 in Q1 2024, a decline of 2.2%[126] - VITAS segment after-tax earnings as a percentage of revenue in Q1 2025 was 12.3%, slightly down from 12.4% in Q1 2024[126] - Roto-Rooter's after-tax earnings as a percentage of revenue decreased to 16.7% in Q1 2025 from 17.4% in Q1 2024[127] Expenses and Margins - The consolidated gross margin decreased to 33.5% in Q1 2025 from 34.6% in Q1 2024, with VITAS maintaining a gross margin of 23.2%[122] - SG&A expenses for Q1 2025 totaled $105,587,000, a decrease from $115,873,000 in Q1 2024, primarily due to lower long-term incentive compensation[122] - Total other income - net for Q1 2025 was $1,245,000, significantly lower than $12,577,000 in Q1 2024, a decrease of 90.1%[123] - Corporate after-tax expenses decreased by 8.0% in Q1 2025 compared to Q1 2024, primarily due to a $6.3 million decrease in stock-based compensation[127] Tax and Compliance - The effective tax rate for Q1 2025 was 25.0%, up from 23.0% in Q1 2024[124] - Income tax provision for Q1 2025 was $23,917,000, compared to $19,468,000 in Q1 2024, an increase of 22.5%[124] - The company is in compliance with all financial covenants as of March 31, 2025, and expects to remain compliant[113] Operational Metrics - The average daily census for homecare in Q1 2025 was 18,140, an increase from 15,911 in Q1 2024, showing a growth of 14.0%[136] - Total admissions in Q1 2025 reached 18,139, compared to 16,911 in Q1 2024, marking an increase of 7.2%[136] - The average length of stay in Q1 2025 was 118.7 days, compared to 103.9 days in Q1 2024, reflecting a significant increase of 14.6%[136] - Estimated uncollectible accounts as a percentage of revenues decreased to 0.6% in Q1 2025 from 1.1% in Q1 2024, indicating improved revenue collection efficiency[136] Debt and Interest Rate Risk - The company had no variable rate debt outstanding as of March 31, 2025, mitigating interest rate risk exposure[138] - For each $10 million borrowed under the credit facility, a 100 basis points change in interest rates would affect annual interest expense by $100,000[138] Acquisition Impact - The Covenant acquisition contributed approximately $11.5 million to $12.5 million in revenue and $1.8 million to $2.0 million in net income for Q1 2025[107]