Chemed(US:CHE)2022-11-01 16:00Financial Performance - For the three months ended September 30, 2022, consolidated service revenues decreased to $526,472, a 2.1% decline from $538,667 in 2021[119]. - Net income for the same period was $56,873, down from $72,003 in 2021, representing a 21% decrease[119]. - Adjusted EBITDA for the three months ended September 30, 2022, was $108,728, with an adjusted EBITDA margin of 20.7%, down from 22.2% in the prior year[119][120]. - For the nine months ended September 30, 2022, consolidated service revenues decreased by 5.5% at VITAS, while Roto-Rooter saw a 6.4% increase[122]. - The company estimates VITAS 2022 revenue to decline by 4.5% to 5.0% compared to 2021, with an estimated adjusted EBITDA margin of 17.1% to 17.2%[127]. - Roto-Rooter is forecasted to achieve full-year 2022 revenue growth of 6.2% to 6.5%, with an adjusted EBITDA margin expected to be 29.5% to 29.7%[128]. - Full-year 2022 earnings per diluted share are estimated to be in the range of $19.60 to $19.70, an increase from the previous guidance of $19.30 to $19.50[129]. - The company recorded a $9.6 million expense for the licensed healthcare worker retention bonus program in Q3 2022, contributing to the decline in gross margin[146]. - Net income for Chemed Consolidated in 2022 was $187.498 million, compared to $72.003 million in 2021, reflecting a significant increase[171]. - The company incurred a pretax cost of $42.360 million in 2022, primarily due to stock option expenses and direct costs related to COVID-19[173]. - The net income for Chemed Corporation was $193,925, with VITAS reporting $113,430 and Roto-Rooter reporting $124,504[175]. Revenue Breakdown - VITAS experienced a 6.6% decrease in service revenues, primarily due to a 4.4% decrease in days-of-care and a 0.2% decrease in Medicare reimbursement rates[120]. - Roto-Rooter reported a 3.9% increase in service revenues, driven by growth in plumbing, excavation, and water restoration services[120]. - VITAS segment revenue decreased by 6.6% to $296.5 million, primarily due to a 4.4% decrease in days of care and a 0.2% decrease in Medicare reimbursement rates[143]. - Roto-Rooter segment revenue increased by 3.9% to $229.9 million, driven by a 10.8% increase in plumbing prices despite a 2.8% decrease in job count[144]. - VITAS segment reported a net revenue of $893.5 million, down 5.5% from $945.1 million in 2021, primarily due to a 4.1% decrease in days-of-care[156]. - Roto-Rooter segment achieved a net revenue of $694.8 million, an increase of 6.4% from $653.1 million in 2021, driven by a 10.9% increase in plumbing revenue[157]. - VITAS service revenues for 2022 reached $893.506 million, while Roto-Rooter generated $694.803 million, contributing to a consolidated total of $1.588 billion[173]. Expenses and Costs - Total costs and expenses for Chemed Consolidated in 2022 amounted to $1.326 billion, with service costs at $1.020 billion and selling, general, and administrative expenses at $261.799 million[173]. - SG&A expenses for Q3 2022 totaled $84.0 million, a decrease of 5.0% from $89.2 million in Q3 2021, primarily due to variable selling and administrative expenses[147]. - SG&A expenses totaled $261.8 million, down from $274.7 million in 2021, reflecting a 3.8% increase in expenses before long-term incentive compensation[160]. - Selling, general, and administrative expenses for Roto-Rooter in 2022 were $165.162 million, a notable increase from the previous year's $51.914 million[173]. Tax and Income - The effective tax rate for Q3 2022 was 25.6%, slightly higher than 24.5% in Q3 2021[150]. - The effective tax rate for the first nine months of 2022 was 24.2%, compared to 23.7% in 2021[162]. - Income taxes for Chemed Consolidated in 2022 were $59.781 million, up from $23.417 million in 2021, indicating a higher tax burden due to increased profitability[171]. - The total income tax expense was $60,262, with VITAS at $36,805 and Roto-Rooter at $38,901[175]. Shareholder Information - The average number of shares outstanding for the three months ended September 30, 2022, was 15,042, down from 15,842 in 2021, a reduction of 5.0%[181]. - Diluted earnings per share as reported for the three months ended September 30, 2022, was $3.78, compared to $4.55 in 2021, a decrease of 16.9%[181]. Future Outlook - The company plans to continue focusing on market expansion and new product development to sustain growth momentum in the coming years[173].