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CHE Chemed Corporation

519.87
2.43 (0.47%)
24 Dec 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type
Chemed Corporation NYSE:CHE NYSE Common Stock
  Price Change % Change Share Price High Price Low Price Open Price Shares Traded Last Trade
  2.43 0.47% 519.87 521.02 513.19 515.03 62,436 22:00:00

Form 8-K - Current report

24/07/2024 9:30pm

Edgar (US Regulatory)


false000001958400000195842024-07-242024-07-24

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported):

July 24, 2024

CHEMED CORPORATION

(Exact name of registrant as specified in its charter)

Delaware

     1-8351

  31-0791746

(State or other
jurisdiction of
incorporation)

(Commission File Number)

(I.R.S. Employer
Identification
Number)

2600 First Financial Center, 255 East 5th Street, Cincinnati, OH 45202

(Address of principal executive offices)             (Zip Code)

Registrant's telephone number, including area code:

(513) 762-6690

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

[_]      Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[_]      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240-14a-12)

[_]      Pre-commencement communications pursuant to Rule 14d-2(b) under Exchange Act (17 CFR 240-14d-2(b))

[_]      Pre-commencement communications pursuant to Rule 13e-4 (c) under Exchange Act (17 CFR 240-13e-4(c))

Securities registered pursuant to 12(b) of the Act:

 

Title of each class

 

Trading symbol

Name of each exchange on which

registered

Capital stock $1 par value

CHE

NYSE

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.  [_]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  [_]

Page 1 of 3


Item 2.02 Results of Operations and Financial Condition

On July 24, 2024, Chemed Corporation issued a press release announcing its financial results for the quarter ended June 30, 2024. A copy of the release is furnished herewith as Exhibit 99.

Item 9.01 Financial Statements and Exhibits

d)

Exhibit

 

 

 

 

 

(99) Registrant’s press release dated July 24, 2024

 

 

104 The cover page from this Current Report on Form 8-K formatted in Inline XBRL

Page 2 of 3


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

CHEMED CORPORATION

Dated:   July 24, 2024

By:

/s/ Michael D. Witzeman

Michael D. Witzeman

Vice President and Chief Financial Officer

Page 3 of 3

Picture 2

CONTACT:  Michael D. Witzeman

(513) 762-6714



Chemed Reports Second-Quarter 2024 Results



CINCINNATI, July 24, 2024—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 second quarter ended June 30, 2024, versus the comparable prior-year period.



Changes to Non-GAAP Metrics



Chemed uses certain non-GAAP metrics such as EBITDA, adjusted EBITDA, adjusted net income and adjusted diluted earnings per share, to provide additional context and perspective to reported operational results. 



Chemed’s previously reported non-GAAP metrics during the four sequential quarters from September 30, 2022 through June 30, 2023 excluded the 12-month pandemic-related licensed healthcare professional retention bonus (Retention Program). Starting with the quarter-ended September 30, 2023, the Company no longer excludes the cost of the Retention Program when presenting non-GAAP operating metrics in current or prior periods.



For the quarter-ended June 30, 2023, the pretax and after-tax Retention Program expense was $12.8 million and $9.7 million, respectively.  For the six-months ended June 30, 2023, the pretax and after-tax Retention Program expense was $23.7 million and $18.0 million, respectively.  There was no material impact on financial results for the quarter or six months-ended June 30, 2024 as a result of the Retention Program.



Results for Quarter Ended June 30, 2024



Consolidated operating results:

·

Revenue increased 7.6% to $595.9 million

·

GAAP Diluted Earnings-per-Share (EPS) of $4.65, an increase of 32.5%

·

Adjusted Diluted EPS of $5.47, an increase of 34.1%



VITAS segment operating results:

·

Net Patient Revenue of $374.6 million, an increase of 16.7%

·

Average Daily Census (ADC) of 21,036, an increase of 14.4%


 

·

Admissions of 17,334, an increase of 11.0%

·

Net Income, excluding certain discrete items, of $49.9 million, an increase of 91.1%

·

Adjusted EBITDA, excluding Medicare Cap, of $67.0 million, an increase of 77.0%

·

Adjusted EBITDA margin, excluding Medicare Cap, of 17.8%, an increase of 613-basis points



Roto-Rooter segment operating results:

·

Revenue of $221.3 million, a decrease of 5.0%

·

Net Income, excluding certain discrete items, of $42.4 million, a decrease of 8.1%

·

Adjusted EBITDA of $59.8 million, a decline of 9.2%

·

Adjusted EBITDA margin of 27.0%, a decline of 126-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 2 of the 3 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 $8.2 million to $8.7 million of revenue in the second quarter of 2024.  This revenue translated to net income of approximately $1.6 million to $1.8 million.  Adjusted EBITDA in the quarter attributed to Covenant Health is between $2.2 million and $2.4 million.



VITAS net revenue was $374.6 million in the second quarter of 2024, which is an increase of 16.7% when compared to the prior-year period.  This revenue increase is comprised primarily of a 14.4% increase in days-of-care and a geographically weighted average Medicare reimbursement rate increase of approximately 2.5%.  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 92-basis points.

 


 

In the second quarter of 2024, VITAS accrued $1.4 million in Medicare Cap billing limitations which includes a $1.0 million reversal of prior period accruals.  This compares to a $2.8 million Medicare Cap billing limitation in the second quarter of 2023.



Of VITAS’ 32 Medicare provider numbers, 28 provider numbers have a trailing 12-month Medicare Cap cushion of 10% or greater, three provider numbers have a cushion between 0% and 10%, and one provider number has a trailing 12-month Medicare Cap billing limitation totaling $7.5 million.



Average revenue per patient per day in the second quarter of 2024 was $200.03 which is 153-basis points above the prior-year period. Reimbursement for routine home care and high acuity care averaged $176.73 and $1,071.65, respectively.  During the quarter, high acuity days-of-care were 2.6% of total days of care, a decline of 21-basis points when compared to the prior-year quarter.



The second quarter 2024 gross margin, excluding Medicare Cap, was 24.1%.  This compares to the prior year quarter’s gross margin of 18.7%, excluding Medicare Cap.  Approximately 397-basis points of this difference is attributable to the expense associated with the Retention Program.  Selling, general and administrative expenses were $24.3 million in the second quarter of 2024 compared to $22.7 million in the prior-year quarter. 



Adjusted EBITDA, excluding Medicare Cap, totaled $67.0 million in the quarter, an increase of 77.0%.  Adjusted EBITDA margin in the quarter, excluding Medicare Cap, was 17.8%, which is 613-basis points above the prior-year period.  Approximately 397-basis points of this difference is attributable to the expense associated with the Retention Program in 2023.



In the second quarter of 2024, VITAS was awarded a Certificate of Need to begin hospice operations in Pasco County, Florida.  This represents a new operating territory for VITAS.





Roto-Rooter





Roto-Rooter generated quarterly revenue of $221.3 million in the second quarter of 2024, a decrease of 5.0%, when compared to the prior-year quarter.



Roto-Rooter branch commercial revenue in the quarter totaled $50.9 million, a decrease of 8.2% from the prior-year period.  This aggregate commercial revenue decline consisted of drain cleaning revenue declining 6.4%, plumbing declining 10.4%, excavation declining 11.1%, and water restoration declining 8.8%.



Roto-Rooter branch residential revenue in the quarter totaled $155.0 million, a decrease of 1.6%, over the prior-year period.  This aggregate residential revenue decline consisted of drain cleaning decreasing 2.6%, plumbing decreasing 3.3%, excavation declining 1.0%, and water restoration decreasing 4.6%.




 

Roto-Rooter’s gross margin in the quarter was 52.9%, a 60-basis point improvement when compared to the second quarter of 2023.  Adjusted EBITDA in the second quarter of 2024 totaled $59.8 million, a decrease of 9.2%.  The Adjusted EBITDA margin in the quarter was 27.0%.  The second quarter Adjusted EBITDA margin represents a 120-basis point sequential improvement from the first quarter of 2024 based mainly on lower internet marketing costs.





Chemed Consolidated



As of June 30, 2024, Chemed had total cash and cash equivalents of $222.9 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 $404.8 million of undrawn borrowing capacity under the Credit Agreement after excluding $45.2 million for Letters of Credit.



During the quarter, the Company repurchased 100,000 shares of Chemed stock for $55.8 million which equates to a cost per share of $557.68.  As of June 30, 2024, there was approximately $225.9 million of remaining share repurchase authorization under its plan.



Upward Revision to Guidance for 2024



VITAS 2024 revenue, prior to Medicare Cap, is estimated to increase 16.3% to 17.3% when compared to 2023.  ADC is estimated to increase 13.3% to 14.4%.  Full year adjusted EBITDA margin, prior to Medicare Cap, is estimated to be 19.3% to 19.7%.  We are currently estimating $8.5 million in Medicare Cap billing limitations in calendar 2024.  The cost of the retention program negatively impacted VITAS’ 2023 full year adjusted EBITDA by 159 basis points.



Covenant Health is estimated to contribute approximately $30 million to $32 million of revenue to VITAS’ full year revenue.  There is no estimated Medicare Cap billing limitation expected related to Covenant Health.  This translates into adjusted net income attributable to Covenant Health of $5.5 million to $6.0 million and adjusted EBITDA of $8.0 million to $8.5 million.



Roto-Rooter is forecasted to have a 4.0% to 5.0% revenue decline in 2024 compared to 2023.  Roto-Rooter’s adjusted EBITDA margin for 2024 is expected to be 26.5% to 27.0%.



Based on the above, full-year 2024 earnings per diluted share, excluding non-cash expense for stock options, tax benefits from stock option exercises, costs related to litigation and other discrete items, is estimated to be in the range of $23.55 to $23.80.  This guidance assumes an effective corporate tax rate on adjusted earnings of 24.3% and a diluted share count of 15.25 million shares. Chemed’s previously issued 2024 guidance range was $23.30 to $23.70.  Chemed’s 2023 reported adjusted earnings per diluted share was $20.30.




 

Conference Call



As previously disclosed, Chemed will host a conference call and webcast at 10 a.m., ET, on Thursday July 25, 2024, 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/unbdyk8k.



Participants may also register via teleconference at: https://register.vevent.com/register/BI1a861ca332ea4e9bbf8c4d66fe30ff51.  

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 Corporation 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 June 30,

 

Six Months Ended June 30,



 

2024

 

2023

 

2024

 

2023

Service revenues and sales

 

$

595,880 

 

$

553,816 

 

$

1,185,113 

 

$

1,113,973 

Cost of services provided and goods sold

 

 

389,750 

 

 

374,193 

 

 

774,877 

 

 

744,898 

Selling, general and administrative expenses (aa)

 

 

102,255 

 

 

94,987 

 

 

218,128 

 

 

195,082 

Depreciation

 

 

13,167 

 

 

12,634 

 

 

26,454 

 

 

24,920 

Amortization

 

 

2,546 

 

 

2,514 

 

 

5,067 

 

 

5,027 

Other operating expense/(income)

 

 

37 

 

 

(18)

 

 

129 

 

 

1,721 

Total costs and expenses

 

 

507,755 

 

 

484,310 

 

 

1,024,655 

 

 

971,648 

Income from operations

 

 

88,125 

 

 

69,506 

 

 

160,458 

 

 

142,325 

Interest expense

 

 

(429)

 

 

(771)

 

 

(854)

 

 

(2,322)

Other income--net (bb)

 

 

6,132 

 

 

1,609 

 

 

18,709 

 

 

1,506 

Income before income taxes

 

 

93,828 

 

 

70,344 

 

 

178,313 

 

 

141,509 

Income taxes

 

 

(22,941)

 

 

(16,967)

 

 

(42,409)

 

 

(34,011)

Net income

 

$

70,887 

 

$

53,377 

 

$

135,904 

 

$

107,498 

Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

4.70 

 

$

3.54 

 

$

8.99 

 

$

7.16 

Average number of shares outstanding

 

 

15,097 

 

 

15,058 

 

 

15,109 

 

 

15,013 

Diluted Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

4.65 

 

$

3.51 

 

$

8.89 

 

$

7.09 

Average number of shares outstanding

 

 

15,251 

 

 

15,219 

 

 

15,295 

 

 

15,167 



 

 

 

 

 

 

 

 

 

 

 

 

(aa)    Selling, general and administrative ("SG&A") expenses comprise (in thousands):



 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended June 30,

 

Six Months Ended June 30,



 

2024

 

2023

 

2024

 

2023

SG&A expenses before long-term incentive compensation

 

 

 

 

 

 

 

 

 

 

 

 

and the impact of market value adjustments related to

 

 

 

 

 

 

 

 

 

 

 

 

deferred compensation plans

 

$

96,025 

 

$

91,733 

 

$

194,443 

 

$

189,634 

Long-term incentive compensation

 

 

3,593 

 

 

1,750 

 

 

12,714 

 

 

4,264 

Market value adjustments related to deferred

 

 

 

 

 

 

 

 

 

 

 

 

compensation trusts

 

 

2,637 

 

 

1,504 

 

 

10,971 

 

 

1,184 

Total SG&A expenses

 

$

102,255 

 

$

94,987 

 

$

218,128 

 

$

195,082 



 

 

 

 

 

 

 

 

 

 

 

 

(bb)    Other income--net comprises (in thousands):

 

 

 

 

 

 



 

Three Months Ended June 30,

 

Six Months Ended June 30,



 

2024

 

2023

 

2024

 

2023

Market value adjustments related to deferred

 

 

 

 

 

 

 

 

 

 

 

 

compensation trusts

 

$

2,637 

 

$

1,504 

 

$

10,971 

 

$

1,184 

Interest income

 

 

3,495 

 

 

113 

 

 

7,737 

 

 

263 

Other

 

 

 -

 

 

(8)

 

 

 

 

59 

Total other income--net

 

$

6,132 

 

$

1,609 

 

$

18,709 

 

$

1,506 




 





 

 

 

 

 

 

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)(unaudited)



 

 

 

 

 

 



 

June 30,



 

2024

 

2023

Assets

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

222,903 

 

$

159,924 

Accounts receivable less allowances

 

 

184,961 

 

 

120,314 

Inventories

 

 

10,735 

 

 

11,684 

Prepaid income taxes

 

 

17,084 

 

 

16,666 

Prepaid expenses

 

 

28,929 

 

 

28,572 

Total current assets

 

 

464,612 

 

 

337,160 

Investments of deferred compensation plans held in trust

 

 

120,784 

 

 

99,522 

Properties and equipment, at cost less accumulated depreciation

 

 

202,249 

 

 

208,101 

Lease right of use asset

 

 

132,262 

 

 

127,215 

Identifiable intangible assets less accumulated amortization

 

 

97,035 

 

 

94,932 

Goodwill

 

 

662,124 

 

 

581,542 

Other assets

 

 

55,918 

 

 

56,708 

Total Assets

 

$

1,734,984 

 

$

1,505,180 

Liabilities

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

 

$

43,001 

 

$

41,058 

Accrued insurance

 

 

59,899 

 

 

57,461 

Accrued compensation

 

 

78,374 

 

 

74,384 

Short-term lease liability

 

 

41,169 

 

 

38,779 

Other current liabilities

 

 

39,310 

 

 

90,805 

Total current liabilities

 

 

261,753 

 

 

302,487 

Deferred income taxes

 

 

27,901 

 

 

36,681 

Deferred compensation liabilities

 

 

119,780 

 

 

98,941 

Long-term lease liability

 

 

105,233 

 

 

102,112 

Other liabilities

 

 

13,020 

 

 

12,880 

Total Liabilities

 

 

527,687 

 

 

553,101 

Stockholders' Equity

 

 

 

 

 

 

Capital stock

 

 

37,313 

 

 

36,996 

Paid-in capital

 

 

1,416,166 

 

 

1,240,415 

Retained earnings

 

 

2,570,722 

 

 

2,294,004 

Treasury stock, at cost

 

 

(2,819,053)

 

 

(2,621,657)

Deferred compensation payable in Company stock

 

 

2,149 

 

 

2,321 

Total Stockholders' Equity

 

 

1,207,297 

 

 

952,079 

Total Liabilities and Stockholders' Equity

 

$

1,734,984 

 

$

1,505,180 




 









 

 

 

 

 

 

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)(unaudited)



 

 

 

 

 

 



 

Six Months Ended June 30,



 

2024

 

2023

Cash Flows from Operating Activities

 

 

 

 

 

 

Net income

 

$

135,904 

 

$

107,498 

Adjustments to reconcile net income to net cash provided

 

 

 

 

 

 

by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

31,521 

 

 

29,947 

Stock option expense

 

 

17,895 

 

 

16,882 

Noncash long-term incentive compensation

 

 

12,699 

 

 

3,493 

Litigation settlements

 

 

(5,750)

 

 

1,750 

Benefit for deferred income taxes

 

 

(2,420)

 

 

(1,932)

Noncash directors' compensation

 

 

1,282 

 

 

1,444 

Amortization of debt issuance costs

 

 

160 

 

 

420 

Changes in operating assets and liabilities, excluding

 

 

 

 

 

 

amounts acquired in business combinations:

 

 

 

 

 

 

(Increase)/decrease in accounts receivable

 

 

(2,422)

 

 

20,100 

Decrease/(increase) in inventories

 

 

1,289 

 

 

(1,412)

Decrease in prepaid expenses

 

 

1,275 

 

 

1,719 

(Decrease)/increase in accounts payable and

 

 

 

 

 

 

other current liabilities

 

 

(19,499)

 

 

8,561 

Change in current income taxes

 

 

(10,776)

 

 

1,865 

Net change in lease assets and liabilities

 

 

(109)

 

 

(1,046)

Increase in other assets

 

 

(15,365)

 

 

(3,810)

Increase in other liabilities

 

 

15,730 

 

 

7,344 

Other sources/(uses)

 

 

652 

 

 

(14)

Net cash provided by operating activities

 

 

162,066 

 

 

192,809 

Cash Flows from Investing Activities

 

 

 

 

 

 

Business combinations, net of cash acquired

 

 

(92,300)

 

 

(305)

Capital expenditures

 

   

(23,225)

 

   

(33,420)

Proceeds from sale of fixed assets

 

 

2,916 

 

 

360 

Other uses

 

 

(265)

 

 

(169)

Net cash used by investing activities

 

 

(112,874)

 

 

(33,534)

Cash Flows from Financing Activities

 

 

 

 

 

 

Purchases of treasury stock

 

 

(94,228)

 

 

(13,425)

Proceeds from exercise of stock options

 

 

38,594 

 

 

53,675 

Dividends paid

 

 

(12,107)

 

 

(11,412)

Change in cash overdrafts payable

 

 

(15,749)

 

 

 -

Capital stock surrendered to pay taxes on stock-based compensation

 

 

(5,960)

 

 

(5,313)

Payments on long-term debt

 

 

 -

 

 

(97,500)

Other (uses)/sources

 

 

(797)

 

 

498 

Net cash used by financing activities

 

 

(90,247)

 

 

(73,477)

(Decrease)/increase in Cash and Cash Equivalents

 

 

(41,055)

 

 

85,798 

Cash and cash equivalents at beginning of year

 

 

263,958 

 

 

74,126 

Cash and cash equivalents at end of year

 

$

222,903 

 

$

159,924 










 





 

 

 

 

 

 

 

 

 

 

 

 

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATING STATEMENTS OF INCOME

FOR THE THREE MONTHS ENDED JUNE 30, 2024 AND 2023

(in thousands)(unaudited)



 

 

 

 

 

 

 

Chemed



 

VITAS

 

Roto-Rooter

 

Corporate

 

Consolidated

2024 (a)

 

 

 

 

 

 

 

 

 

 

 

 

Service revenues and sales

 

$

374,558 

 

$

221,322 

 

$

 -

 

$

595,880 

Cost of services provided and goods sold

 

 

285,517 

 

 

104,233 

 

 

 -

 

 

389,750 

Selling, general and administrative expenses

 

 

24,293 

 

 

57,351 

 

 

20,611 

 

 

102,255 

Depreciation

 

 

5,058 

 

 

8,096 

 

 

13 

 

 

13,167 

Amortization

 

 

26 

 

 

2,520 

 

 

 -

 

 

2,546 

Other operating expense/(income)

 

 

56 

 

 

(19)

 

 

 -

 

 

37 

Total costs and expenses

 

 

314,950 

 

 

172,181 

 

 

20,624 

 

 

507,755 

Income/(loss) from operations

 

 

59,608 

 

 

49,141 

 

 

(20,624)

 

 

88,125 

Interest expense

 

 

(46)

 

 

(118)

 

 

(265)

 

 

(429)

Intercompany interest income/(expense)

 

 

4,982 

 

 

3,540 

 

 

(8,522)

 

 

 -

Other income—net

 

 

46 

 

 

24 

 

 

6,062 

 

 

6,132 

Income/(loss) before income taxes

 

 

64,590 

 

 

52,587 

 

 

(23,349)

 

 

93,828 

Income taxes

 

 

(15,338)

 

 

(12,070)

 

 

4,467 

 

 

(22,941)

Net income/(loss)

 

$

49,252 

 

$

40,517 

 

$

(18,882)

 

$

70,887 



 

 

 

 

 

 

 

 

 

 

 

 

2023 (b)

 

 

 

 

 

 

 

 

 

 

 

 

Service revenues and sales

 

$

320,861 

 

$

232,955 

 

$

 -

 

$

553,816 

Cost of services provided and goods sold

 

 

263,085 

 

 

111,108 

 

 

 -

 

 

374,193 

Selling, general and administrative expenses

 

 

22,656 

 

 

56,012 

 

 

16,319 

 

 

94,987 

Depreciation

 

 

4,940 

 

 

7,681 

 

 

13 

 

 

12,634 

Amortization

 

 

26 

 

 

2,488 

 

 

 -

 

 

2,514 

Other operating expense/(income)

 

 

26 

 

 

(44)

 

 

 -

 

 

(18)

Total costs and expenses

 

 

290,733 

 

 

177,245 

 

 

16,332 

 

 

484,310 

Income/(loss) from operations

 

 

30,128 

 

 

55,710 

 

 

(16,332)

 

 

69,506 

Interest expense

 

 

(51)

 

 

(124)

 

 

(596)

 

 

(771)

Intercompany interest income/(expense)

 

 

4,810 

 

 

2,869 

 

 

(7,679)

 

 

 -

Other income—net

 

 

70 

 

 

35 

 

 

1,504 

 

 

1,609 

Income/(loss) before income taxes

 

 

34,957 

 

 

58,490 

 

 

(23,103)

 

 

70,344 

Income taxes

 

 

(8,829)

 

 

(14,116)

 

 

5,978 

 

 

(16,967)

Net income/(loss)

 

$

26,128 

 

$

44,374 

 

$

(17,125)

 

$

53,377 



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

The "Footnotes to Financial Statements" are integral parts of this financial information.










 







 

 

 

 

 

 

 

 

 

 

 

 

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATING STATEMENTS OF INCOME

FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2023

(in thousands)(unaudited)



 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

Chemed



 

VITAS

 

Roto-Rooter

 

Corporate

 

Consolidated

2024 (a)

 

 

 

 

 

 

 

 

 

 

 

 

Service revenues and sales

 

$

728,564 

 

$

456,549 

 

$

 -

 

$

1,185,113 

Cost of services provided and goods sold

 

 

557,411 

 

 

217,466 

 

 

 -

 

 

774,877 

Selling, general and administrative expenses

 

 

48,085 

 

 

118,611 

 

 

51,432 

 

 

218,128 

Depreciation

 

 

10,225 

 

 

16,204 

 

 

25 

 

 

26,454 

Amortization

 

 

52 

 

 

5,015 

 

 

 -

 

 

5,067 

Other operating expense

 

 

63 

 

 

66 

 

 

 -

 

 

129 

Total costs and expenses

 

 

615,836 

 

 

357,362 

 

 

51,457 

 

 

1,024,655 

Income/(loss) from operations

 

 

112,728 

 

 

99,187 

 

 

(51,457)

 

 

160,458 

Interest expense

 

 

(92)

 

 

(235)

 

 

(527)

 

 

(854)

Intercompany interest income/(expense)

 

 

10,176 

 

 

6,982 

 

 

(17,158)

 

 

 -

Other income—net

 

 

75 

 

 

47 

 

 

18,587 

 

 

18,709 

Income/(loss) before income taxes

 

 

122,887 

 

 

105,981 

 

 

(50,555)

 

 

178,313 

Income taxes

 

 

(29,666)

 

 

(24,610)

 

 

11,867 

 

 

(42,409)

Net income/(loss)

 

$

93,221 

 

$

81,371 

 

$

(38,688)

 

$

135,904 



 

 

 

 

 

 

 

 

 

 

 

 

2023 (b)

 

 

 

 

 

 

 

 

 

 

 

 

Service revenues and sales

 

$

631,339 

 

$

482,634 

 

$

 -

 

$

1,113,973 

Cost of services provided and goods sold

 

 

516,739 

 

 

228,159 

 

 

 -

 

 

744,898 

Selling, general and administrative expenses

 

 

45,992 

 

 

116,825 

 

 

32,265 

 

 

195,082 

Depreciation

 

 

9,898 

 

 

14,994 

 

 

28 

 

 

24,920 

Amortization

 

 

52 

 

 

4,975 

 

 

 -

 

 

5,027 

Other operating expense

 

 

38 

 

 

1,683 

 

 

 -

 

 

1,721 

Total costs and expenses

 

 

572,719 

 

 

366,636 

 

 

32,293 

 

 

971,648 

Income/(loss) from operations

 

 

58,620 

 

 

115,998 

 

 

(32,293)

 

 

142,325 

Interest expense

 

 

(102)

 

 

(257)

 

 

(1,963)

 

 

(2,322)

Intercompany interest income/(expense)

 

 

9,458 

 

 

5,612 

 

 

(15,070)

 

 

 -

Other income—net

 

 

259 

 

 

64 

 

 

1,183 

 

 

1,506 

Income/(loss) before income taxes

 

 

68,235 

 

 

121,417 

 

 

(48,143)

 

 

141,509 

Income taxes

 

 

(17,343)

 

 

(29,390)

 

 

12,722 

 

 

(34,011)

Net income/(loss)

 

$

50,892 

 

$

92,027 

 

$

(35,421)

 

$

107,498 



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

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 JUNE 30, 2024 AND 2023

(in thousands)(unaudited)



 

 

 

 

 

 

 

Chemed



 

VITAS

 

Roto-Rooter

 

Corporate

 

Consolidated

2024

 

 

 

 

 

 

 

 

 

 

 

 

Net income/(loss)

 

$

49,252 

 

$

40,517 

 

$

(18,882)

 

$

70,887 

Add/(deduct):

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

46 

 

 

118 

 

 

265 

 

 

429 

Income taxes

 

 

15,338 

 

 

12,070 

 

 

(4,467)

 

 

22,941 

Depreciation

 

 

5,058 

 

 

8,096 

 

 

13 

 

 

13,167 

Amortization

 

 

26 

 

 

2,520 

 

 

 -

 

 

2,546 

EBITDA

 

 

69,720 

 

 

63,321 

 

 

(23,071)

 

 

109,970 

Add/(deduct):

 

 

 

 

 

 

 

 

 

 

 

 

Intercompany interest expense/(income)

 

 

(4,982)

 

 

(3,540)

 

 

8,522 

 

 

 -

Interest income

 

 

(45)

 

 

(25)

 

 

(3,425)

 

 

(3,495)

Stock option expense

 

 

 -

 

 

 -

 

 

8,870 

 

 

8,870 

Long-term incentive compensation

 

 

 -

 

 

 -

 

 

3,593 

 

 

3,593 

Acquisition expense

 

 

907 

 

 

45 

 

 

 -

 

 

952 

Adjusted EBITDA

 

$

65,600 

 

$

59,801 

 

$

(5,511)

 

$

119,890 



 

 

 

 

 

 

 

 

 

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

Net income/(loss)

 

$

26,128 

 

$

44,374 

 

$

(17,125)

 

$

53,377 

Add/(deduct):

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

51 

 

 

124 

 

 

596 

 

 

771 

Income taxes

 

 

8,829 

 

 

14,116 

 

 

(5,978)

 

 

16,967 

Depreciation

 

 

4,940 

 

 

7,681 

 

 

13 

 

 

12,634 

Amortization

 

 

26 

 

 

2,488 

 

 

 -

 

 

2,514 

EBITDA

 

 

39,974 

 

 

68,783 

 

 

(22,494)

 

 

86,263 

Add/(deduct):

 

 

 

 

 

 

 

 

 

 

 

 

Intercompany interest expense/(income)

 

 

(4,810)

 

 

(2,869)

 

 

7,679 

 

 

 -

Interest income

 

 

(79)

 

 

(34)

 

 

 -

 

 

(113)

Stock option expense

 

 

 -

 

 

 -

 

 

8,400 

 

 

8,400 

Long-term incentive compensation

 

 

 -

 

 

 -

 

 

1,750 

 

 

1,750 

Adjusted EBITDA

 

$

35,085 

 

$

65,880 

 

$

(4,665)

 

$

96,300 



 

 

 

 

 

 

 

 

 

 

 

 

The "Footnotes to Financial Statements" are integral parts of this financial information.


















 







 

 

 

 

 

 

 

 

 

 

 

 

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATING SUMMARIES OF EBITDA

FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2023

(in thousands)(unaudited)



 

 

 

 

 

 

 

 

 

 

Chemed



 

VITAS

 

Roto-Rooter

 

Corporate

 

Consolidated

2024

 

 

 

 

 

 

 

 

 

 

 

 

Net income/(loss)

 

$

93,221 

 

$

81,371 

 

$

(38,688)

 

$

135,904 

Add/(deduct):

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

92 

 

 

235 

 

 

527 

 

 

854 

Income taxes

 

 

29,666 

 

 

24,610 

 

 

(11,867)

 

 

42,409 

Depreciation

 

 

10,225 

 

 

16,204 

 

 

25 

 

 

26,454 

Amortization

 

 

52 

 

 

5,015 

 

 

 -

 

 

5,067 

EBITDA

 

 

133,256 

 

 

127,435 

 

 

(50,003)

 

 

210,688 

Add/(deduct):

 

 

 

 

 

 

 

 

 

 

 

 

Intercompany interest expense/(income)

 

 

(10,176)

 

 

(6,982)

 

 

17,158 

 

 

 -

Interest income

 

 

(75)

 

 

(47)

 

 

(7,615)

 

 

(7,737)

Stock option expense

 

 

 -

 

 

 -

 

 

17,895 

 

 

17,895 

Long-term incentive compensation

 

 

 -

 

 

 -

 

 

7,377 

 

 

7,377 

Severance arrangement

 

 

 -

 

 

 -

 

 

5,337 

 

 

5,337 

Acquisition expense

 

 

907 

 

 

45 

 

 

 -

 

 

952 

Adjusted EBITDA

 

$

123,912 

 

$

120,451 

 

$

(9,851)

 

$

234,512 

2023

 

 

 

 

 

 

 

 

 

 

 

 

Net income/(loss)

 

$

50,892 

 

$

92,027 

 

$

(35,421)

 

$

107,498 

Add/(deduct):

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

102 

 

 

257 

 

 

1,963 

 

 

2,322 

Income taxes

 

 

17,343 

 

 

29,390 

 

 

(12,722)

 

 

34,011 

Depreciation

 

 

9,898 

 

 

14,994 

 

 

28 

 

 

24,920 

Amortization

 

 

52 

 

 

4,975 

 

 

 -

 

 

5,027 

EBITDA

 

 

78,287 

 

 

141,643 

 

 

(46,152)

 

 

173,778 

Add/(deduct):

 

 

 

 

 

 

 

 

 

 

 

 

Intercompany interest expense/(income)

 

 

(9,458)

 

 

(5,612)

 

 

15,070 

 

 

 -

Interest income

 

 

(199)

 

 

(64)

 

 

 -

 

 

(263)

Stock option expense

 

 

 -

 

 

 -

 

 

16,882 

 

 

16,882 

Long-term incentive compensation

 

 

 -

 

 

 -

 

 

4,264 

 

 

4,264 

Litigation settlements

 

 

 -

 

 

1,756 

 

 

 -

 

 

1,756 

Adjusted EBITDA

 

$

68,630 

 

$

137,723 

 

$

(9,936)

 

$

196,417 



 

 

 

 

 

 

 

 

 

 

 

 

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 June 30,

 

Six Months Ended June 30,



 

2024

 

2023

 

2024

 

2023

Net income as reported

 

$

70,887 

 

$

53,377 

 

$

135,904 

 

$

107,498 

Add/(deduct) pre-tax cost of:

 

 

 

 

 

 

 

 

 

 

 

 

Stock option expense

 

 

8,870 

 

 

8,400 

 

 

17,895 

 

 

16,882 

Long-term incentive compensation

 

 

3,593 

 

 

1,750 

 

 

7,377 

 

 

4,264 

Severance arrangement

 

 

 -

 

 

 -

 

 

5,337 

 

 

 -

Amortization of reacquired franchise agreements

 

 

2,352 

 

 

2,352 

 

 

4,704 

 

 

4,704 

Acquisition expense

 

 

952 

 

 

 -

 

 

952 

 

 

 -

Litigation setttlement

 

 

 -

 

 

 -

 

 

 -

 

 

1,756 

Add/(deduct) tax impacts:

 

 

 

 

 

 

 

 

 

 

 

 

Tax impact of the above pre-tax adjustments (1)

 

 

(2,613)

 

 

(2,266)

 

 

(5,000)

 

 

(5,118)

Excess tax benefits on stock compensation

 

 

(622)

 

 

(1,501)

 

 

(3,919)

 

 

(3,150)

Adjusted net income

 

$

83,419 

 

$

62,112 

 

$

163,250 

 

$

126,836 



 

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings Per Share As Reported

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

4.65 

 

$

3.51 

 

$

8.89 

 

$

7.09 

Average number of shares outstanding

 

 

15,251 

 

 

15,219 

 

 

15,295 

 

 

15,167 



 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Diluted Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income

 

$

5.47 

 

$

4.08 

 

$

10.67 

 

$

8.36 

Average number of shares outstanding

 

 

15,251 

 

 

15,219 

 

 

15,295 

 

 

15,167 



 

 

 

 

 

 

 

 

 

 

 

 

(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 June 30,

 

 

Six Months Ended June 30,

 

OPERATING STATISTICS

2024

 

2023

 

 

2024

 

2023

 

Net revenue ($000) (c)

 

 

 

 

 

 

 

 

 

 

 

 

 

Homecare

$

324,778 

 

$

278,116 

 

 

$

629,637 

 

$

545,166 

 

Inpatient

 

29,071 

 

 

27,401 

 

 

 

59,374 

 

 

56,494 

 

Continuous care

 

24,327 

 

 

21,081 

 

 

 

48,497 

 

 

41,022 

 

Other

 

4,733 

 

 

3,154 

 

 

 

8,817 

 

 

6,175 

 

Subtotal

$

382,909 

 

$

329,752 

 

 

$

746,325 

 

$

648,857 

 

Room and board, net

 

(3,156)

 

 

(2,904)

 

 

 

(6,101)

 

 

(5,672)

 

Contractual allowances

 

(3,820)

 

 

(3,237)

 

 

 

(7,910)

 

 

(6,346)

 

Medicare cap allowance

 

(1,375)

 

 

(2,750)

 

 

 

(3,750)

 

 

(5,500)

 

Net Revenue

$

374,558 

 

$

320,861 

 

 

$

728,564 

 

$

631,339 

 

Net revenue as a percent of total before Medicare cap allowance

 

 

 

 

 

 

 

 

 

 

 

 

 

Homecare

 

84.8 

%

 

84.3 

%

 

 

84.4 

%

 

84.0 

%

Inpatient

 

7.6 

 

 

8.3 

 

 

 

8.0 

 

 

8.7 

 

Continuous care

 

6.4 

 

 

6.4 

 

 

 

6.5 

 

 

6.3 

 

Other

 

1.2 

 

 

1.0 

 

 

 

1.1 

 

 

1.0 

 

Subtotal

 

100.0 

 

 

100.0 

 

 

 

100.0 

 

 

100.0 

 

Room and board, net

 

(0.8)

 

 

(0.8)

 

 

 

(0.8)

 

 

(0.9)

 

Contractual allowances

 

(1.0)

 

 

(1.0)

 

 

 

(1.1)

 

 

(1.0)

 

Medicare cap allowance

 

(0.4)

 

 

(0.8)

 

 

 

(0.5)

 

 

(0.8)

 

Net Revenue

 

97.8 

%

 

97.4 

%

 

 

97.6 

%

 

97.3 

%

Days of care

 

 

 

 

 

 

 

 

 

 

 

 

 

Homecare

 

1,551,163 

 

 

1,340,655 

 

 

 

2,999,075 

 

 

2,627,092 

 

Nursing home

 

304,191 

 

 

279,898 

 

 

 

587,349 

 

 

545,327 

 

Respite

 

9,102 

 

 

6,159 

 

 

 

16,854 

 

 

11,919 

 

Subtotal routine homecare and respite

 

1,864,456 

 

 

1,626,712 

 

 

 

3,603,278 

 

 

3,184,338 

 

Inpatient

 

25,895 

 

 

25,125 

 

 

 

52,540 

 

 

51,494 

 

Continuous care

 

23,933 

 

 

21,873 

 

 

 

47,970 

 

 

42,559 

 

Total

 

1,914,284 

 

 

1,673,710 

 

 

 

3,703,788 

 

 

3,278,391 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

Number of days in relevant time period

 

91 

 

 

91 

 

 

 

182 

 

 

181 

 

Average daily census ("ADC") (days)

 

 

 

 

 

 

 

 

 

 

 

 

 

Homecare

 

17,046 

 

 

14,732 

 

 

 

16,478 

 

 

14,514 

 

Nursing home

 

3,343 

 

 

3,076 

 

 

 

3,227 

 

 

3,013 

 

Respite

 

100 

 

 

68 

 

 

 

93 

 

 

66 

 

Subtotal routine homecare and respite

 

20,489 

 

 

17,876 

 

 

 

19,798 

 

 

17,593 

 

Inpatient

 

284 

 

 

276 

 

 

 

288 

 

 

286 

 

Continuous care

 

263 

 

 

240 

 

 

 

264 

 

 

235 

 

Total

 

21,036 

 

 

18,392 

 

 

 

20,350 

 

 

18,114 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

Total Admissions

 

17,334 

 

 

15,611 

 

 

 

34,245 

 

 

31,790 

 

Total Discharges

 

15,898 

 

 

15,104 

 

 

 

32,068 

 

 

30,509 

 

Average length of stay (days)

 

100.6 

 

 

99.5 

 

 

 

102.2 

 

 

99.7 

 

Median length of stay (days)

 

18.0 

 

 

16.0 

 

 

 

17.0 

 

 

15.0 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

ADC by major diagnosis

 

 

 

 

 

 

 

 

 

 

 

 

 

Cerebro

 

42.5 

%

 

41.9 

%

 

 

43.4 

%

 

42.0 

%

Neurological

 

13.3 

 

 

18.8 

 

 

 

13.4 

 

 

19.0 

 

Cancer

 

10.0 

 

 

10.8 

 

 

 

10.0 

 

 

10.6 

 

Cardio

 

16.2 

 

 

16.1 

 

 

 

16.2 

 

 

16.0 

 

Respiratory

 

7.3 

 

 

7.1 

 

 

 

7.3 

 

 

7.2 

 

Other

 

10.7 

 

 

5.3 

 

 

 

9.7 

 

 

5.2 

 

Total

 

100.0 

%

 

100.0 

%

 

 

100.0 

%

 

100.0 

%

Admissions by major diagnosis

 

 

 

 

 

 

 

 

 

 

 

 

 

Cerebro

 

27.1 

%

 

25.9 

%

 

 

27.4 

%

 

26.2 

%

Neurological

 

8.3 

 

 

10.1 

 

 

 

7.9 

 

 

10.4 

 

Cancer

 

25.0 

 

 

27.1 

 

 

 

24.8 

 

 

25.9 

 

Cardio

 

16.1 

 

 

16.3 

 

 

 

15.9 

 

 

16.3 

 

Respiratory

 

9.6 

 

 

9.8 

 

 

 

10.1 

 

 

10.4 

 

Other

 

13.9 

 

 

10.8 

 

 

 

13.9 

 

 

10.8 

 

Total

 

100.0 

%

 

100.0 

%

 

 

100.0 

%

 

100.0 

%



 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated uncollectible accounts as a percent of revenues

 

1.0 

%

 

1.0 

%

 

 

1.1 

%

 

1.0 

%



 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable --

 

 

 

 

 

 

 

 

 

 

 

 

 

Days of revenue outstanding-excluding unapplied Medicare payments

38.8 

 

 

35.2 

 

 

 

n.a.

 

 

n.a.

 

Days of revenue outstanding-including unapplied Medicare payments

34.7 

 

 

22.6 

 

 

 

n.a.

 

 

n.a.

 



 

 

 

 

 

 

 

 

 

 

 

 

 


 

The "Footnotes to Financial Statements" are integral parts of this financial information.

 





 

 

 

 

 

 

 

 

 

 

 

 

 

 

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

 

FOOTNOTES TO FINANCIAL STATEMENTS

 

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024 AND 2023

 

(unaudited)

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

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 June 30, 2024

 



 

 

VITAS

 

Roto-Rooter

 

Corporate

 

Consolidated

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



Stock option expense

 

$

 -

 

$

 -

 

$

(8,870)

 

$

(8,870)

 



Long-term incentive compensation

 

 

 -

 

 

 -

 

 

(3,593)

 

 

(3,593)

 



Amortization of reacquired franchise agreements

 

 

 -

 

 

(2,352)

 

 

 -

 

 

(2,352)

 



Acquisition expense

 

 

(907)

 

 

(45)

 

 

 -

 

 

(952)

 



Pretax impact on earnings

 

 

(907)

 

 

(2,397)

 

 

(12,463)

 

 

(15,767)

 



Excess tax benefits on stock compensation

 

 

 -

 

 

 -

 

 

622 

 

 

622 

 



Income tax benefit on the above

 

 

220 

 

 

559 

 

 

1,834 

 

 

2,613 

 



After-tax impact on earnings

 

$

(687)

 

$

(1,838)

 

$

(10,007)

 

$

(12,532)

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

Six Months Ended June 30, 2024

 



 

 

VITAS

 

Roto-Rooter

 

Corporate

 

Consolidated

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



Stock option expense

 

$

 -

 

$

 -

 

$

(17,895)

 

$

(17,895)

 



Long-term incentive compensation

 

 

 -

 

 

 -

 

 

(7,377)

 

 

(7,377)

 



Severance arrangement

 

 

 -

 

 

 -

 

 

(5,337)

 

 

(5,337)

 



Amortization of reacquired franchise agreements

 

 

 -

 

 

(4,704)

 

 

 -

 

 

(4,704)

 



Acquisition expense

 

 

(907)

 

 

(45)

 

 

 -

 

 

(952)

 



Pretax impact on earnings

 

 

(907)

 

 

(4,749)

 

 

(30,609)

 

 

(36,265)

 



Excess tax benefits on stock compensation

 

 

 -

 

 

 -

 

 

3,919 

 

 

3,919 

 



Income tax benefit on the above

 

 

220 

 

 

1,107 

 

 

3,673 

 

 

5,000 

 



After-tax impact on earnings

 

$

(687)

 

$

(3,642)

 

$

(23,017)

 

$

(27,346)

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

(b)

Included in the results of operations for 2023 are the following significant credits/(charges) which may not be indicative of ongoing operations

 



(in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

Three Months Ended June 30, 2023

 



 

 

VITAS

 

Roto-Rooter

 

Corporate

 

Consolidated

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



Stock option expense

 

$

 -

 

$

 -

 

$

(8,400)

 

$

(8,400)

 



Amortization of reacquired franchise agreements

 

 

 -

 

 

(2,352)

 

 

 -

 

 

(2,352)

 



Long-term incentive compensation

 

 

 -

 

 

 -

 

 

(1,750)

 

 

(1,750)

 



Pretax impact on earnings

 

 

 -

 

 

(2,352)

 

 

(10,150)

 

 

(12,502)

 



Excess tax benefits on stock compensation

 

 

 -

 

 

 -

 

 

1,501 

 

 

1,501 

 



Income tax benefit on the above

 

 

 -

 

 

623 

 

 

1,643 

 

 

2,266 

 



After-tax impact on earnings

 

$

 -

 

$

(1,729)

 

$

(7,006)

 

$

(8,735)

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

Six Months Ended June 30, 2023

 



 

 

VITAS

 

Roto-Rooter

 

Corporate

 

Consolidated

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



Stock option expense

 

$

 -

 

$

 -

 

$

(16,882)

 

$

(16,882)

 



Amortization of reacquired franchise agreements

 

 

 -

 

 

(4,704)

 

 

 -

 

 

(4,704)

 



Long-term incentive compensation

 

 

 -

 

 

 -

 

 

(4,264)

 

 

(4,264)

 



Litigation settlements

 

 

 -

 

 

(1,756)

 

 

 -

 

 

(1,756)

 



Pretax impact on earnings

 

 

 -

 

 

(6,460)

 

 

(21,146)

 

 

(27,606)

 



Excess tax benefits on stock compensation

 

 

 -

 

 

 -

 

 

3,150 

 

 

3,150 

 



Income tax benefit on the above

 

 

 -

 

 

1,712 

 

 

3,406 

 

 

5,118 

 



After-tax impact on earnings

 

$

 -

 

$

(4,748)

 

$

(14,590)

 

$

(19,338)

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

(c)

VITAS has 10 large (greater than 450 ADC), 22 medium (greater than 200 but less than 450 ADC) and 21 small (less than 200 ADC) hospice programs.  Of Vitas' 32 Medicare provider numbers, for the trailing 12 months, 28 provider numbers have a Medicare cap cushion of greater than 10%, one provider number has a Medicare cap cushion between 5% and 10%, two provider numbers have a Medicare cap cushion between 0% and 5%, and one provider number has a Medicare cap liability.

 



 

 


 




v3.24.2
Document And Entity Information
Jul. 24, 2024
Document And Entity Information [Abstract]  
Document Type 8-K
Document Period End Date Jul. 24, 2024
Entity Registrant Name CHEMED CORPORATION
Entity Incorporation, State or Country Code DE
Entity File Number 1-8351
Entity Tax Identification Number 31-0791746
Entity Address, Address Line One 2600 First Financial Center
Entity Address, Address Line Two 255 East 5th Street
Entity Address, City or Town Cincinnati
Entity Address, State or Province OH
Entity Address, Postal Zip Code 45202
City Area Code 513
Local Phone Number 762-6690
Written Communications false
Soliciting Material false
Pre Commencement Tender Offer false
Pre Commencement Issuer Tender Offer false
Title of 12(b) Security Capital stock $1 par value
Trading Symbol CHE
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0000019584
Amendment Flag false

1 Year Chemed Chart

1 Year Chemed Chart

1 Month Chemed Chart

1 Month Chemed Chart