Chemed(US:CHE)2021-02-24 19:50Financial Data and Key Metrics Changes - VITAS net revenue for Q4 2020 was $332 million, a decline of 2.3% compared to the prior year period [17] - Average revenue per patient per day in Q4 2020 was $198.33, which is 7 basis points below the prior year period [18] - Roto-Rooter generated revenue of $201 million in Q4 2020, an increase of 10.2% [21] - Consolidated revenue, including Roto-Rooter, increased by 10.2% [16] Business Line Data and Key Metrics Changes - VITAS admissions increased by 2.8% in Q4 2020, but average daily census declined by 2.8% [8][9] - Roto-Rooter’s residential revenue totaled $123 million in Q4 2020, an increase of 20.8% [14] - Nursing home admissions for VITAS decreased by 19.3% in Q4 2020 compared to the prior year [11] Market Data and Key Metrics Changes - Hospital referrals for VITAS returned to pre-pandemic levels, with hospital-generated admissions increasing by 7.4% in Q4 2020 [11] - Senior housing occupancy levels reached a record low in October 2020, adversely affecting VITAS nursing home admissions [12][25] Company Strategy and Development Direction - The company anticipates improvement in senior housing admissions in the second half of 2021 as occupancy returns to pre-pandemic levels [13][26] - Roto-Rooter is forecasted to achieve revenue growth of approximately 5% to 6% in 2021 [27] - The company plans to continue pursuing share buybacks throughout 2021 [49] Management Comments on Operating Environment and Future Outlook - Management noted that the pandemic has materially disrupted the healthcare system and general economy, impacting guidance for 2021 [24] - There is optimism regarding vaccination rates and their potential impact on nursing home occupancy and admissions [45][47] - Management expects that the normalization of admission patterns will take time, potentially extending into 2022 [36] Other Important Information - VITAS anticipates a decline in revenue of approximately 4% for 2021 compared to the prior year [26] - The adjusted EBITDA margin for VITAS is estimated to be 19.4% for 2021, which is above pre-pandemic levels [27] Q&A Session Summary Question: Guidance and recovery in admission patterns - Management indicated that the pace of improvement in admission patterns is uncertain and may take until the end of 2021 or into 2022 to normalize [35][36] Question: Changes in vaccination rates and their impact - Management noted encouraging signs related to vaccination rates and their potential positive impact on nursing home admissions [45][47] Question: Margin sustainability for VITAS and Roto-Rooter - Management confirmed that the adjusted EBITDA margin for VITAS is expected to remain above 19%, while Roto-Rooter’s margin is projected to be sustainable at 26% [68][70]