Chemed Corporation (Chemed) (NYSE:CHE), which operates VITAS Healthcare Corporation (VITAS), one of the nation's largest providers of end-of-life care, and Roto-Rooter, the nation's largest commercial and residential plumbing and drain cleaning services provider, reported financial results for its first quarter ended March 31, 2025, versus the comparable prior-year period.
Results for Quarter Ended March 31, 2025
Consolidated operating results:
- Revenue increased 9.8% to $646.9 million
- GAAP Diluted Earnings-per-Share (EPS) of $4.86, an increase of 14.6%
- Adjusted Diluted EPS of $5.63, an increase of 8.3%
VITAS segment operating results:
- Net Patient Revenue of $407.4 million, an increase of 15.1%
- Average Daily Census (ADC) of 22,244, an increase of 13.1%
- Admissions of 18,139, an increase of 7.3%
- Net Income, excluding certain discrete items, of $50.0 million, an increase of 13.8%
- Adjusted EBITDA, excluding Medicare Cap, of $70.3 million, an increase of 15.9%
- Adjusted EBITDA margin, excluding Medicare Cap, of 17.2%, an increase of 13-basis points
Roto-Rooter segment operating results:
- Revenue of $239.5 million, an increase of 1.8%
- Net Income, excluding certain discrete items, of $41.8 million, a decrease of 2.1%
- Adjusted EBITDA of $59.2 million, a decline of 2.4%
- Adjusted EBITDA margin of 24.7%, a decline of 108-basis points
VITAS
As previously announced, VITAS completed its acquisition of the hospice assets and an assisted living facility of Covenant Health and Community Services, Inc. (Covenant Health) on April 17, 2024 for $85.0 million in cash. Before presenting VITAS' overall results, it is important to disclose the methodology used in determining the impact of Covenant Health's acquisition on VITAS' overall results. VITAS had significant operations in two of the three Florida locations we acquired from Covenant Health. Those locations require that we estimate the Covenant Health impact, as once the operations are integrated, there are not separate results. For instance, there are no VITAS-specific referral sources versus Covenant Health-specific referral sources in these locations. It is very likely that referral sources in the area have historically referred to both VITAS and Covenant Health. We have used historical operating trends in these locations to determine what is "legacy" VITAS activity. All activity above those historical operating trends have been attributed as the Covenant Health impact. We have included the specifically determined impact as it relates to new operating territories acquired. Based on the above, we discuss the range of impact that Covenant had on the overall VITAS operating metrics.
Covenant Health contributed approximately $11.5 million to $12.5 million of revenue in the first quarter of 2025. This revenue translated to net income of approximately $1.8 million to $2.0 million. Adjusted EBITDA in the quarter attributed to Covenant Health is between $2.5 million and $2.7 million.
VITAS net revenue was $407.4 million in the first quarter of 2025, which is an increase of 15.1% when compared to the prior-year period. This revenue increase is comprised primarily of a 11.9% increase in days-of-care and a geographically weighted average Medicare reimbursement rate increase of approximately 3.2%. Acuity mix shift negatively impacted revenue growth 112-basis points in the quarter when compared to the prior-year period's revenue and level-of-care mix. The combination of Medicare Cap and other contra revenue changes increased revenue growth by approximately 112-basis points.
In the first quarter of 2025, VITAS accrued $2.3 million in Medicare Cap billing limitation, essentially flat with the first quarter of 2024.
Of VITAS' 34 Medicare provider numbers, 24 provider numbers have a trailing 12-month Medicare Cap cushion of 10% or greater, four provider numbers have a cushion between 0% and 10%, and six provider numbers have a trailing 12-month Medicare Cap billing limitation totaling $19.6 million.
Average revenue per patient per day in the first quarter of 2025 was $207.58 which is 221-basis points above the prior-year period. Reimbursement for routine home care and high acuity care averaged $183.06 and $1,121.07, respectively. During the quarter, high acuity days-of-care were 2.6% of total days of care, a decline of 22-basis points when compared to the prior-year quarter.
The first quarter 2025 gross margin, excluding Medicare Cap, was 23.7% which is essentially flat with the same period of 2024. Selling, general and administrative expenses were $26.5 million in the first quarter of 2025 compared to $23.8 million in the prior-year quarter.
Adjusted EBITDA, excluding Medicare Cap, totaled $70.3 million in the quarter, an increase of 15.9% when compared to the prior year period. Adjusted EBITDA margin in the quarter, excluding Medicare Cap, was 17.2%.
Roto-Rooter
Roto-Rooter generated quarterly revenue of $239.5 million in the first quarter of 2025, an increase of 1.8%, when compared to the prior-year quarter.
Roto-Rooter branch commercial revenue in the quarter totaled $57.7 million, an increase of 7.3% from the prior-year period. This aggregate commercial revenue change consisted of plumbing declining 4.3%, excavation increasing 38.0%, and water restoration increasing 14.0%. Commercial drain cleaning revenue was essentially flat between quarters.
Roto-Rooter branch residential revenue in the quarter totaled $167.2 million, an increase of 1.7%, over the prior-year period. This aggregate residential revenue change consisted of drain cleaning declining 5.5%, plumbing declining 4.2%, excavation increasing 3.0%, and water restoration increasing 12.5%.
In the first quarter of 2025, revenue from independent contractors declined 6.4% as compared to the same period of 2024.
Roto-Rooter's first quarter 2025 gross margin was 50.9%. This compares to the prior year quarter's gross margin of 51.9%. Roto-Rooter's selling, general and administrative expenses were $62.6 million in the quarter, which is an increase of 2.3% compared to the first quarter of 2024.
Adjusted EBITDA in the first quarter of 2025 totaled $59.2 million, a decrease of 2.4% when compared to the first quarter of 2024. The Adjusted EBITDA margin in the quarter was 24.7% which represents a 108-basis point decline from the first quarter of 2024.
Chemed Consolidated
As of March 31, 2025, Chemed had total cash and cash equivalents of $173.9 million and no current or long-term debt.
In June 2022, Chemed entered into a five-year $550 million Amended and Restated Credit Agreement (Credit Agreement). This Credit Agreement consisted of a $100 million amortizable term loan and a $450 million revolving credit facility. The interest rate on this Credit Agreement has a floating rate that is currently SOFR plus 100-basis points. There is approximately $404.5 million of undrawn borrowing capacity under the Credit Agreement after excluding $45.5 million for Letters of Credit.
During the quarter, the Company repurchased 50,000 shares of Chemed stock for $29.8 million which equates to a cost per share of $595.15. As of March 31, 2025, there was approximately $225.6 million of remaining share repurchase authorization under its plan.
Guidance for 2025
Management anticipates providing updated 2025 earnings guidance as part of the June 30, 2025 earnings press release.
Conference Call
As previously disclosed, Chemed will host a conference call and webcast at 10 a.m., ET, on Thursday April 24, 2025, to discuss the company's quarterly results and to provide an update on its business. Participants may access a live webcast of the conference call through the investor relations section of Chemed's website, Investor Relations Home | Chemed Corporation or the hosting website https://edge.media-server.com/mmc/p/ey8mpmti.
Participants may also register via teleconference at:
https://register-conf.media-server.com/register/BI7c94b6cdd2574c8a8508d7a5a1235973.
Once registration is completed, participants will be provided with a dial-in number containing a personalized conference code to access the call. All participants are instructed to dial-in 15 minutes prior to the start time.
A taped replay of the conference call will be available beginning approximately two hours after the call's conclusion. You may access the replay via webcast through the investor relations section of Chemed's website.
Chemed operates in the healthcare field through its VITAS Healthcare Corporation subsidiary. VITAS provides daily hospice services to patients with severe, life-limiting illnesses. This type of care is focused on making the terminally ill patient's final days as comfortable and pain-free as possible.
Chemed operates in the residential and commercial plumbing and drain cleaning industry under the brand name Roto-Rooter. Roto-Rooter provides plumbing, drain cleaning, and water cleanup services through company-owned branches, independent contractors and franchisees in the United States and Canada. Roto-Rooter also has licensed master franchisees in the republics of Indonesia and Singapore, and the Philippines.
This press release contains information about Chemed's EBITDA, Adjusted EBITDA and Adjusted Diluted EPS, which are not measures derived in accordance with GAAP and which exclude components that are important to understanding Chemed's financial performance. In reporting its operating results, Chemed provides EBITDA, Adjusted EBITDA and Adjusted Diluted EPS measures to help investors and others evaluate the Company's operating results, compare its operating performance with that of similar companies that have different capital structures and evaluate its ability to meet its future debt service, capital expenditures and working capital requirements. Chemed's management similarly uses EBITDA, Adjusted EBITDA and Adjusted Diluted EPS to assist it in evaluating the performance of the Company across fiscal periods and in assessing how its performance compares to its peer companies. These measures also help Chemed's management to estimate the resources required to meet Chemed's future financial obligations and expenditures. Chemed's EBITDA, Adjusted EBITDA and Adjusted Diluted EPS should not be considered in isolation or as a substitute for comparable measures calculated and presented in accordance with GAAP. We calculated Adjusted EBITDA Margin by dividing Adjusted EBITDA by service revenue and sales. A reconciliation of Chemed's net income to its EBITDA, Adjusted EBITDA and Adjusted Diluted EPS is presented in the tables following the text of this press release.
Forward-Looking Statements
Certain statements contained in this press release and the accompanying tables are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "hope," "anticipate," "plan" and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. Chemed does not undertake and specifically disclaims any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These statements are based on current expectations and assumptions and involve various risks and uncertainties, which could cause Chemed's actual results to differ from those expressed in such forward-looking statements.
These risks and uncertainties arise from, among other things, possible changes in regulations governing the hospice care or plumbing and drain cleaning industries; periodic changes in reimbursement levels and procedures under Medicare and Medicaid programs; difficulties predicting patient length of stay and estimating potential Medicare reimbursement obligations; challenges inherent in Chemed's growth strategy; the current shortage of qualified nurses, other healthcare professionals and licensed plumbing and drain cleaning technicians; Chemed's dependence on patient referral sources; and other factors detailed under the caption "Description of Business by Segment" or "Risk Factors" in Chemed's most recent report on form 10-Q or 10-K and its other filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on such forward-looking statements and there are no assurances that the matters contained in such statements will be achieved.
|
|||||||||
| CHEMED CORPORATION AND SUBSIDIARY COMPANIES | |||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||
| (in thousands, except per share data)(unaudited) | |||||||||
| Three Months Ended March 31, | |||||||||
2025 |
|
2024 |
|
||||||
| Service revenues and sales | $ | 646,943 |
|
$ | 589,233 |
|
|||
| Cost of services provided and goods sold | 430,530 |
|
385,127 |
|
|||||
| Selling, general and administrative expenses (aa) | 105,587 |
|
115,873 |
|
|||||
| Depreciation | 13,445 |
|
13,287 |
|
|||||
| Amortization | 2,572 |
|
2,521 |
|
|||||
| Other operating expense | 51 |
|
92 |
|
|||||
| Total costs and expenses | 552,185 |
|
516,900 |
|
|||||
| Income from operations | 94,758 |
|
72,333 |
|
|||||
| Interest expense | (329 |
) |
(425 |
) |
|||||
| Other income--net (bb) | 1,245 |
|
12,577 |
|
|||||
| Income before income taxes | 95,674 |
|
84,485 |
|
|||||
| Income taxes | (23,917 |
) |
(19,468 |
) |
|||||
| Net income | $ | 71,757 |
|
$ | 65,017 |
|
|||
| Earnings Per Share | |||||||||
| Net income | $ | 4.91 |
|
$ | 4.30 |
|
|||
| Average number of shares outstanding | 14,622 |
|
15,121 |
|
|||||
| Diluted Earnings Per Share | |||||||||
| Net income | $ | 4.86 |
|
$ | 4.24 |
|
|||
| Average number of shares outstanding | 14,764 |
|
15,339 |
|
|||||
| (aa) Selling, general and administrative ("SG&A") expenses comprise (in thousands): | |||||||||
| Three Months Ended March 31, | |||||||||
2025 |
|
2024 |
|
||||||
| SG&A expenses before long-term incentive compensation | |||||||||
| and the impact of market value adjustments related to | |||||||||
| deferred compensation plans | $ | 103,760 |
|
$ | 98,418 |
|
|||
| Long-term incentive compensation | 2,657 |
|
9,121 |
|
|||||
| Market value adjustments related to deferred | |||||||||
| compensation trusts | (830 |
) |
8,334 |
|
|||||
| Total SG&A expenses | $ | 105,587 |
|
$ | 115,873 |
|
|||
| (bb) Other income--net comprises (in thousands): | |||||||||
| Three Months Ended March 31, | |||||||||
2025 |
|
2024 |
|
||||||
| Interest income | $ | 2,076 |
|
$ | 4,243 |
|
|||
| Market value adjustments related to deferred | |||||||||
| compensation trusts | (830 |
) |
8,334 |
|
|||||
| Other | (1 |
) |
- |
|
|||||
| Total other income--net | $ | 1,245 |
|
$ | 12,577 |
|
|||
| CHEMED CORPORATION AND SUBSIDIARY COMPANIES | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (in thousands, except per share data)(unaudited) | ||||||||
| March 31, | ||||||||
2025 |
|
2024 |
|
|||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 173,882 |
|
$ | 313,350 |
|
||
| Accounts receivable less allowances | 285,873 |
|
177,334 |
|
||||
| Inventories | 7,790 |
|
10,712 |
|
||||
| Prepaid income taxes | 4,436 |
|
9,790 |
|
||||
| Prepaid expenses | 30,404 |
|
28,431 |
|
||||
| Total current assets | 502,385 |
|
539,617 |
|
||||
| Investments of deferred compensation plans held in trust | 127,949 |
|
117,649 |
|
||||
| Properties and equipment, at cost less accumulated depreciation | 199,679 |
|
202,784 |
|
||||
| Lease right of use asset | 131,150 |
|
131,751 |
|
||||
| Identifiable intangible assets less accumulated amortization | 89,929 |
|
88,137 |
|
||||
| Goodwill | 666,940 |
|
591,519 |
|
||||
| Other assets | 8,483 |
|
56,176 |
|
||||
| Total Assets | $ | 1,726,515 |
|
$ | 1,727,633 |
|
||
| Liabilities | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 47,692 |
|
$ | 56,203 |
|
||
| Accrued insurance | 65,743 |
|
62,055 |
|
||||
| Accrued income taxes | 38,247 |
|
27,353 |
|
||||
| Accrued compensation | 59,905 |
|
49,802 |
|
||||
| Short-term lease liability | 42,976 |
|
39,279 |
|
||||
| Other current liabilities | 35,993 |
|
47,282 |
|
||||
| Total current liabilities | 290,556 |
|
281,974 |
|
||||
| Deferred income taxes | 11,771 |
|
24,899 |
|
||||
| Deferred compensation liabilities | 127,292 |
|
117,550 |
|
||||
| Long-term lease liability | 102,082 |
|
106,861 |
|
||||
| Other liabilities | 13,052 |
|
12,854 |
|
||||
| Total Liabilities | 544,753 |
|
544,138 |
|
||||
| Stockholders' Equity | ||||||||
| Capital stock | 37,535 |
|
37,297 |
|
||||
| Paid-in capital | 1,538,419 |
|
1,398,733 |
|
||||
| Retained earnings | 2,786,264 |
|
2,505,892 |
|
||||
| Treasury stock, at cost | (3,182,718 |
) |
(2,760,543 |
) |
||||
| Deferred compensation payable in Company stock | 2,262 |
|
2,116 |
|
||||
| Total Stockholders' Equity | 1,181,762 |
|
1,183,495 |
|
||||
| Total Liabilities and Stockholders' Equity | $ | 1,726,515 |
|
$ | 1,727,633 |
|
||
| CHEMED CORPORATION AND SUBSIDIARY COMPANIES | ||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (in thousands)(unaudited) | ||||||||
| For the Three Months Ended March 31, | ||||||||
2025 |
|
2024 |
|
|||||
| Cash Flows from Operating Activities | ||||||||
| Net income | $ | 71,757 |
|
$ | 65,017 |
|
||
| Adjustments to reconcile net income to net cash provided | ||||||||
| by operating activities: | ||||||||
| Depreciation and amortization | 16,017 |
|
15,808 |
|
||||
| Stock option expense | 9,091 |
|
9,025 |
|
||||
| Noncash long-term incentive compensation | 2,420 |
|
9,106 |
|
||||
| Benefit for deferred income taxes | (14,174 |
) |
(5,422 |
) |
||||
| Amortization of debt issuance costs | 80 |
|
80 |
|
||||
| Changes in operating assets and liabilities, excluding | ||||||||
| amounts acquired in business combinations: | ||||||||
| (Increase)/decrease in accounts receivable | (67,424 |
) |
5,345 |
|
||||
| Decrease in inventories | 403 |
|
1,302 |
|
||||
| (Increase)/decrease in prepaid expenses | (4,430 |
) |
1,909 |
|
||||
| Decrease in accounts payable and | ||||||||
| other current liabilities | (22,592 |
) |
(43,012 |
) |
||||
| Change in current income taxes | 37,286 |
|
23,871 |
|
||||
| Net change in lease assets and liabilities | 169 |
|
25 |
|
||||
| Decrease/(increase) in other assets | 3,034 |
|
(12,243 |
) |
||||
| Increase in other liabilities | 951 |
|
13,332 |
|
||||
| Other sources | 156 |
|
406 |
|
||||
| Net cash provided by operating activities | 32,744 |
|
84,549 |
|
||||
| Cash Flows from Investing Activities | ||||||||
| Capital expenditures | (13,280 |
) |
(12,163 |
) |
||||
| Business combinations, net of cash acquired | (225 |
) |
(7,300 |
) |
||||
| Proceeds from sale of fixed assets | 112 |
|
86 |
|
||||
| Other uses | (281 |
) |
(8 |
) |
||||
| Net cash used by investing activities | (13,674 |
) |
(19,385 |
) |
||||
| Cash Flows from Financing Activities | ||||||||
| Purchases of treasury stock | (33,222 |
) |
(38,460 |
) |
||||
| Proceeds from exercise of stock options | 22,666 |
|
37,242 |
|
||||
| Dividends paid | (7,325 |
) |
(6,050 |
) |
||||
| Capital stock surrendered to pay taxes on stock-based compensation | (6,254 |
) |
(5,725 |
) |
||||
| Change in cash overdrafts payable | 438 |
|
(2,115 |
) |
||||
| Other sources/(uses) | 159 |
|
(664 |
) |
||||
| Net cash used by financing activities | (23,538 |
) |
(15,772 |
) |
||||
| (Decrease)/Increase in Cash and Cash Equivalents | (4,468 |
) |
49,392 |
|
||||
| Cash and cash equivalents at beginning of year | 178,350 |
|
263,958 |
|
||||
| Cash and cash equivalents at end of period | $ | 173,882 |
|
$ | 313,350 |
|
||
| CHEMED CORPORATION AND SUBSIDIARY COMPANIES | ||||||||||||||||
| CONSOLIDATING STATEMENTS OF INCOME | ||||||||||||||||
| FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND 2024 | ||||||||||||||||
| (in thousands)(unaudited) | ||||||||||||||||
| Chemed | ||||||||||||||||
| VITAS | Roto-Rooter | Corporate | Consolidated | |||||||||||||
| 2025 (a) | ||||||||||||||||
| Service revenues and sales | $ | 407,400 |
|
$ | 239,543 |
|
$ | - |
|
$ | 646,943 |
|
||||
| Cost of services provided and goods sold | 312,807 |
|
117,723 |
|
- |
|
430,530 |
|
||||||||
| Selling, general and administrative expenses | 26,538 |
|
62,649 |
|
16,400 |
|
105,587 |
|
||||||||
| Depreciation | 5,196 |
|
8,237 |
|
12 |
|
13,445 |
|
||||||||
| Amortization | 26 |
|
2,546 |
|
- |
|
2,572 |
|
||||||||
| Other operating expense/income | 64 |
|
(13 |
) |
- |
|
51 |
|
||||||||
| Total costs and expenses | 344,631 |
|
191,142 |
|
16,412 |
|
552,185 |
|
||||||||
| Income/(loss) from operations | 62,769 |
|
48,401 |
|
(16,412 |
) |
94,758 |
|
||||||||
| Interest expense | (48 |
) |
(132 |
) |
(149 |
) |
(329 |
) |
||||||||
| Intercompany interest income/(expense) | 5,296 |
|
3,930 |
|
(9,226 |
) |
- |
|
||||||||
| Other income—net | 48 |
|
10 |
|
1,187 |
|
1,245 |
|
||||||||
| Income/(loss) before income taxes | 68,065 |
|
52,209 |
|
(24,600 |
) |
95,674 |
|
||||||||
| Income taxes | (18,035 |
) |
(12,265 |
) |
6,383 |
|
(23,917 |
) |
||||||||
| Net income/(loss) | $ | 50,030 |
|
$ | 39,944 |
|
$ | (18,217 |
) |
$ | 71,757 |
|
||||
| 2024 (b) | ||||||||||||||||
| Service revenues and sales | $ | 354,007 |
|
$ | 235,226 |
|
$ | - |
|
$ | 589,233 |
|
||||
| Cost of services provided and goods sold | 271,896 |
|
113,231 |
|
- |
|
385,127 |
|
||||||||
| Selling, general and administrative expenses | 23,792 |
|
61,260 |
|
30,821 |
|
115,873 |
|
||||||||
| Depreciation | 5,166 |
|
8,108 |
|
13 |
|
13,287 |
|
||||||||
| Amortization | 26 |
|
2,495 |
|
- |
|
2,521 |
|
||||||||
| Other operating expense | 7 |
|
85 |
|
- |
|
92 |
|
||||||||
| Total costs and expenses | 300,887 |
|
185,179 |
|
30,834 |
|
516,900 |
|
||||||||
| Income/(loss) from operations | 53,120 |
|
50,047 |
|
(30,834 |
) |
72,333 |
|
||||||||
| Interest expense | (46 |
) |
(117 |
) |
(262 |
) |
(425 |
) |
||||||||
| Intercompany interest income/(expense) | 5,194 |
|
3,442 |
|
(8,636 |
) |
- |
|
||||||||
| Other income—net | 29 |
|
22 |
|
12,526 |
|
12,577 |
|
||||||||
| Income/(loss) before income taxes | 58,297 |
|
53,394 |
|
(27,206 |
) |
84,485 |
|
||||||||
| Income taxes | (14,327 |
) |
(12,541 |
) |
7,400 |
|
(19,468 |
) |
||||||||
| Net income/(loss) | $ | 43,970 |
|
$ | 40,853 |
|
$ | (19,806 |
) |
$ | 65,017 |
|
||||
| The "Footnotes to Financial Statements" are integral parts of this financial information. | ||||||||||||||||
| CHEMED CORPORATION AND SUBSIDIARY COMPANIES | ||||||||||||||||
| CONSOLIDATING SUMMARIES OF EBITDA | ||||||||||||||||
| FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND 2024 | ||||||||||||||||
| (in thousands)(unaudited) | ||||||||||||||||
| Chemed | ||||||||||||||||
| VITAS | Roto-Rooter | Corporate | Consolidated | |||||||||||||
2025 |
||||||||||||||||
| Net income/(loss) | $ | 50,030 |
|
$ | 39,944 |
|
$ | (18,217 |
) |
$ | 71,757 |
|
||||
| Add/(deduct): | ||||||||||||||||
| Interest expense | 48 |
|
132 |
|
149 |
|
329 |
|
||||||||
| Income taxes | 18,035 |
|
12,265 |
|
(6,383 |
) |
23,917 |
|
||||||||
| Depreciation | 5,196 |
|
8,237 |
|
12 |
|
13,445 |
|
||||||||
| Amortization | 26 |
|
2,546 |
|
- |
|
2,572 |
|
||||||||
| EBITDA | 73,335 |
|
63,124 |
|
(24,439 |
) |
112,020 |
|
||||||||
| Add/(deduct): | ||||||||||||||||
| Intercompany interest expense/(income) | (5,296 |
) |
(3,930 |
) |
9,226 |
|
- |
|
||||||||
| Interest income | (49 |
) |
(10 |
) |
(2,017 |
) |
(2,076 |
) |
||||||||
| Stock option expense | - |
|
- |
|
9,091 |
|
9,091 |
|
||||||||
| Long-term incentive compensation | - |
|
- |
|
2,657 |
|
2,657 |
|
||||||||
| Adjusted EBITDA | $ | 67,990 |
|
$ | 59,184 |
|
$ | (5,482 |
) |
$ | 121,692 |
|
||||
2024 |
||||||||||||||||
| Net income/(loss) | $ | 43,970 |
|
$ | 40,853 |
|
$ | (19,806 |
) |
$ | 65,017 |
|
||||
| Add/(deduct): | ||||||||||||||||
| Interest expense | 46 |
|
117 |
|
262 |
|
425 |
|
||||||||
| Income taxes | 14,327 |
|
12,541 |
|
(7,400 |
) |
19,468 |
|
||||||||
| Depreciation | 5,166 |
|
8,108 |
|
13 |
|
13,287 |
|
||||||||
| Amortization | 26 |
|
2,495 |
|
- |
|
2,521 |
|
||||||||
| EBITDA | 63,535 |
|
64,114 |
|
(26,931 |
) |
100,718 |
|
||||||||
| Add/(deduct): | ||||||||||||||||
| Intercompany interest expense/(income) | (5,194 |
) |
(3,442 |
) |
8,636 |
|
- |
|
||||||||
| Interest income | (29 |
) |
(22 |
) |
(4,192 |
) |
(4,243 |
) |
||||||||
| Stock option expense | - |
|
- |
|
9,026 |
|
9,026 |
|
||||||||
| Severance arrangement | - |
|
- |
|
5,337 |
|
5,337 |
|
||||||||
| Long-term incentive compensation | - |
|
- |
|
3,784 |
|
3,784 |
|
||||||||
| Adjusted EBITDA | $ | 58,312 |
|
$ | 60,650 |
|
$ | (4,340 |
) |
$ | 114,622 |
|
||||
| The "Footnotes to Financial Statements" are integral parts of this financial information. | ||||||||||||||||
| CHEMED CORPORATION AND SUBSIDIARY COMPANIES | ||||||||||
| RECONCILIATION OF ADJUSTED NET INCOME | ||||||||||
| (in thousands, except per share data)(unaudited) | ||||||||||
| Three Months Ended March 31, | ||||||||||
2025 |
|
2024 |
|
|||||||
| Net income as reported | $ | 71,757 |
|
$ | 65,017 |
|
||||
| Add/(deduct) pre-tax cost of: | ||||||||||
| Stock option expense | 9,091 |
|
9,026 |
|
||||||
| Long-term incentive compensation | 2,657 |
|
3,784 |
|
||||||
| Amortization of reacquired franchise rights | 2,352 |
|
2,352 |
|
||||||
| Severance arrangement | - |
|
5,337 |
|
||||||
| Add/(deduct) tax impacts: | ||||||||||
| Tax impact of the above pre-tax adjustments (1) | (2,320 |
) |
(2,388 |
) |
||||||
| Excess tax benefits on stock compensation | (463 |
) |
(3,297 |
) |
||||||
| Adjusted net income | $ | 83,074 |
|
$ | 79,831 |
|
||||
| Diluted Earnings Per Share As Reported | ||||||||||
| Net income | $ | 4.86 |
|
$ | 4.24 |
|
||||
| Average number of shares outstanding | 14,764 |
|
15,339 |
|
||||||
| Adjusted Diluted Earnings Per Share | ||||||||||
| Adjusted net income | $ | 5.63 |
|
$ | 5.20 |
|
||||
| Average number of shares outstanding | 14,764 |
|
15,339 |
|
||||||
| (1) The tax impact of pre-tax adjustments was calculated using the effective tax rate of the operating unit for which each adjustment is associated. | ||||||||||
| The "Footnotes to Financial Statements" are integral parts of this financial information. | ||||||||||
| CHEMED CORPORATION AND SUBSIDIARY COMPANIES | |||||||||
| OPERATING STATISTICS FOR VITAS SEGMENT | |||||||||
| (unaudited) | |||||||||
| Three Months Ended March 31, | |||||||||
| OPERATING STATISTICS | 2025 |
|
2024 |
|
|||||
| Net revenue ($000) (c) | |||||||||
| Homecare | $ | 351,566 |
|
$ | 304,860 |
|
|||
| Inpatient | 34,022 |
|
30,303 |
|
|||||
| Continuous care | 24,637 |
|
24,169 |
|
|||||
| Other | 5,344 |
|
4,084 |
|
|||||
| Subtotal | $ | 415,569 |
|
$ | 363,416 |
|
|||
| Room and board, net | (3,525 |
) |
(2,944 |
) |
|||||
| Contractual allowances | (2,319 |
) |
(4,090 |
) |
|||||
| Medicare cap allowance | (2,325 |
) |
(2,375 |
) |
|||||
| Net Revenue | $ | 407,400 |
|
$ | 354,007 |
|
|||
| Net revenue as a percent of total before Medicare cap allowance | |||||||||
| Homecare | 84.6 |
|
% |
83.9 |
|
% |
|||
| Inpatient | 8.2 |
|
8.3 |
|
|||||
| Continuous care | 5.9 |
|
6.7 |
|
|||||
| Other | 1.3 |
|
1.1 |
|
|||||
| Subtotal | 100.0 |
|
100.0 |
|
|||||
| Room and board, net | (0.8 |
) |
(0.8 |
) |
|||||
| Contractual allowances | (0.6 |
) |
(1.1 |
) |
|||||
| Medicare cap allowance | (0.6 |
) |
(0.7 |
) |
|||||
| Net Revenue | 98.0 |
|
% |
97.4 |
|
% |
|||
| Days of care | |||||||||
| Homecare | 1,632,569 |
|
1,447,912 |
|
|||||
| Nursing home | 307,108 |
|
283,158 |
|
|||||
| Respite | 9,995 |
|
7,752 |
|
|||||
| Subtotal routine homecare and respite | 1,949,672 |
|
1,738,822 |
|
|||||
| Inpatient | 29,704 |
|
26,645 |
|
|||||
| Continuous care | 22,620 |
|
24,037 |
|
|||||
| Total | 2,001,996 |
|
1,789,504 |
|
|||||
| Number of days in relevant time period | 90 |
|
91 |
|
|||||
| Average daily census ("ADC") (days) | |||||||||
| Homecare | 18,140 |
|
15,911 |
|
|||||
| Nursing home | 3,412 |
|
3,112 |
|
|||||
| Respite | 111 |
|
85 |
|
|||||
| Subtotal routine homecare and respite | 21,663 |
|
19,108 |
|
|||||
| Inpatient | 330 |
|
293 |
|
|||||
| Continuous care | 251 |
|
264 |
|
|||||
| Total | 22,244 |
|
19,665 |
|
|||||
| Total Admissions | 18,139 |
|
16,911 |
|
|||||
| Total Discharges | 17,875 |
|
16,170 |
|
|||||
| Average length of stay (days) | 118.7 |
|
103.9 |
|
|||||
| Median length of stay (days) | 16.0 |
|
16.0 |
|
|||||
| ADC by major diagnosis | |||||||||
| Cerebro | 44.7 |
|
% |
43.6 |
|
% |
|||
| Neurological | 12.4 |
|
13.4 |
|
|||||
| Cancer | 9.6 |
|
10.1 |
|
|||||
| Cardio | 16.1 |
|
16.1 |
|
|||||
| Respiratory | 7.2 |
|
7.2 |
|
|||||
| Other | 10.0 |
|
9.6 |
|
|||||
| Total | 100.0 |
|
% |
100.0 |
|
% |
|||
| Admissions by major diagnosis | |||||||||
| Cerebro | 28.4 |
|
% |
27.7 |
|
% |
|||
| Neurological | 6.5 |
|
7.5 |
|
|||||
| Cancer | 24.6 |
|
24.6 |
|
|||||
| Cardio | 15.0 |
|
15.6 |
|
|||||
| Respiratory | 11.6 |
|
10.8 |
|
|||||
| Other | 13.9 |
|
13.8 |
|
|||||
| Total | 100.0 |
|
% |
100.0 |
|
% |
|||
| Estimated uncollectible accounts as a percent of revenues | 0.6 |
|
% |
1.1 |
|
% |
|||
| Accounts receivable -- | |||||||||
| Days of revenue outstanding-excluding unapplied Medicare payments | 47.3 |
|
42.3 |
|
|||||
| Days of revenue outstanding-including unapplied Medicare payments | 44.5 |
|
34.3 |
|
|||||
| The "Footnotes to Financial Statements" are integral parts of this financial information. | |||||||||
| CHEMED CORPORATION AND SUBSIDIARY COMPANIES | |||||||||||||||||
| FOOTNOTES TO FINANCIAL STATEMENTS | |||||||||||||||||
| FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND 2024 | |||||||||||||||||
| (unaudited) | |||||||||||||||||
| (a) | Included in the results of operations for 2025 are the following significant credits/(charges) which may not be indicative of ongoing operations | ||||||||||||||||
| (in thousands): | |||||||||||||||||
| Three Months Ended March 31, 2025 | |||||||||||||||||
| VITAS | Roto-Rooter | Corporate | Consolidated | ||||||||||||||
| Stock option expense | $ | - |
$ | - |
|
$ | (9,091 |
) |
$ | (9,091 |
) |
||||||
| Long-term incentive compensation | - |
- |
|
(2,657 |
) |
(2,657 |
) |
||||||||||
| Amortization of reacquired franchise agreements | - |
(2,352 |
) |
- |
|
(2,352 |
) |
||||||||||
| Pretax impact on earnings | - |
(2,352 |
) |
(11,748 |
) |
(14,100 |
) |
||||||||||
| Excess tax benefits on stock compensation | - |
- |
|
463 |
|
463 |
|
||||||||||
| Income tax benefit on the above | - |
546 |
|
1,774 |
|
2,320 |
|
||||||||||
| After-tax impact on earnings | $ | - |
$ | (1,806 |
) |
$ | (9,511 |
) |
$ | (11,317 |
) |
||||||
| (b) | Included in the results of operations for 2024 are the following significant credits/(charges) which may not be indicative of ongoing operations | ||||||||||||||||
| (in thousands): | |||||||||||||||||
| Three Months Ended March 31, 2024 | |||||||||||||||||
| VITAS | Roto-Rooter | Corporate | Consolidated | ||||||||||||||
| Stock option expense | $ | - |
$ | - |
|
$ | (9,026 |
) |
$ | (9,026 |
) |
||||||
| Severance arrangement | - |
- |
|
(5,337 |
) |
(5,337 |
) |
||||||||||
| Long-term incentive compensation | - |
- |
|
(3,784 |
) |
(3,784 |
) |
||||||||||
| Amortization of reacquired franchise agreements | - |
(2,352 |
) |
- |
|
(2,352 |
) |
||||||||||
| Pretax impact on earnings | - |
(2,352 |
) |
(18,147 |
) |
(20,499 |
) |
||||||||||
| Excess tax benefits on stock compensation | - |
- |
|
3,297 |
|
3,297 |
|
||||||||||
| Income tax benefit on the above | - |
548 |
|
1,840 |
|
2,388 |
|
||||||||||
| After-tax impact on earnings | $ | - |
$ | (1,804 |
) |
$ | (13,010 |
) |
$ | (14,814 |
) |
||||||
| (c) | VITAS has 11 large (greater than 450 ADC), 23 medium (greater than 200 but less than 450 ADC) and 23 small (less than 200 ADC) hospice programs. Of Vitas' 34 Medicare provider numbers, for the trailing 12 months, 24 provider numbers have a Medicare cap cushion of greater than 10%, four provider numbers have a Medicare cap cushion between 0% and 10%, and six provider numbers have a Medicare cap liability. | ||||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20250423887404/en/
Michael D. Witzeman
(513) 762-6714