Chemed(US:CHE)2025-10-28 20:31Revenue Performance - VITAS net revenue for Q3 2025 was $407.7 million, a 4.2% increase year-over-year, driven by a 2.5% increase in days-of-care and a 4.1% increase in Medicare reimbursement rates [3]. - Roto-Rooter generated revenue of $217.2 million in Q3 2025, reflecting a 1.1% increase compared to the prior year, with commercial revenue up 2.8% and residential revenue up 3.4% [10]. - Service revenues and sales for Q3 2025 reached $624.9 million, a 3.0% increase from $606.2 million in Q3 2024 [31]. - Homecare revenue for Q3 2025 reached $362,405,000, an increase of 7.1% from $338,344,000 in Q3 2024, while total net revenue for the same period was $407,741,000, up from $391,406,000 [48]. - Service revenues and sales for 2025 reached $1,890,641, an increase from $1,791,294 in 2024, representing a growth of approximately 5.5% [39]. Earnings and Profitability - GAAP diluted EPS for Q3 2025 was $4.46, a decrease of 10.8%, while adjusted diluted EPS was $5.27, down 6.6% [3]. - Net income for Q3 2025 was reported at $64,237,000, a decrease from $75,776,000 in Q3 2024, while net income for the nine months ended September 30, 2025, was $188,487,000 compared to $211,680,000 in the same period of 2024 [45]. - Adjusted EBITDA for Q3 2025 was $75,906,000, down from $85,485,000 in Q3 2024, and for the nine months ended September 30, 2025, it was $221,701,000 compared to $248,735,000 in 2024 [45]. - Net income for the nine months ended September 30, 2025, was $188.5 million, down 10.9% from $211.7 million in the same period of 2024 [31]. - EBITDA for 2025 was reported at $100,235, while adjusted EBITDA was $109,045, showing a decline from $117,153 in 2024 [41]. Expenses and Costs - Total costs and expenses for 2025 amounted to $1,653,049, up from $1,538,679 in 2024, reflecting an increase of approximately 7.4% [39]. - Selling, general and administrative expenses for 2025 totaled $311,685, an increase from $320,109 in 2024, indicating a reduction of approximately 2.6% [39]. - The company reported a total interest expense of $1,229 for 2025, compared to $1,281 in 2024, reflecting a decrease of about 4.1% [39]. - The company incurred $(2.850) million in legal settlements during the three months ended September 30, 2025, which contributed to the overall losses reported [50]. - The company reported a legal settlement expense of $2,850,000 in Q3 2025, consistent with the previous quarter [45]. Cash and Assets - As of September 30, 2025, Chemed had total cash and cash equivalents of $129.8 million and no debt [15]. - Cash and cash equivalents at the end of Q3 2025 were $129.8 million, down 45.7% from $238.5 million at the end of Q3 2024 [35]. - Total current assets decreased to $395.2 million in Q3 2025 from $490.4 million in Q3 2024, reflecting a decline of 19.4% [33]. Shareholder Actions - Chemed repurchased 407,500 shares for $180.8 million in Q3 2025, with approximately $301.8 million remaining under its share repurchase authorization [17]. - The average number of shares outstanding for Q3 2025 was 14.4 million, down from 15.0 million in Q3 2024 [31]. - The company purchased $256.9 million in treasury stock during the nine months ended September 30, 2025, compared to $152.0 million in the same period of 2024 [35]. Operational Metrics - Total admissions for VITAS increased by 5.6% in Q3 2025 compared to Q3 2024, with an average daily census of 22,327, up 2.5% [4]. - The average daily census (ADC) for homecare in Q3 2025 was 18,325 days, compared to 17,639 days in Q3 2024, indicating a growth in service utilization [48]. - The average length of stay for patients increased to 109.7 days in Q3 2025 from 102.0 days in Q3 2024, indicating longer patient care durations [48]. - Total admissions for the nine months ended September 30, 2025, were 53,398, an increase from 51,020 in the same period of 2024 [48]. Guidance and Future Outlook - Management reiterated its guidance for 2025, projecting adjusted diluted EPS between $22.00 and $22.30, excluding certain non-cash expenses and litigation costs [19]. - The company continues to focus on operational efficiency and cost management strategies to enhance profitability moving forward [39]. Financial Position - Total liabilities increased to $546.9 million in Q3 2025 from $533.7 million in Q3 2024, marking a rise of 2.4% [33]. - The company reported a net cash provided by operating activities of $254.7 million for the nine months ended September 30, 2025, compared to $252.6 million in the same period of 2024 [35].