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 fourth
quarter ended December 31, 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 twelve-months ended December 31, 2023, the pretax and
after-tax Retention Program expense was $20.8 million and $15.8
million, respectively. There was no material impact on financial
results for the twelve months-ended December 31, 2024, as a result
of the Retention Program. There was no material financial impact on
the fourth quarter of either 2024 or 2023 as a result of the
Retention Program.
Results for Quarter Ended
December 31, 2024
Consolidated operating results:
- Revenue increased 9.2% to $640.0 million
- GAAP Diluted Earnings-per-Share (EPS) of $6.02, an increase of
2.0%
- Adjusted Diluted EPS of $6.83, an increase of 3.5%
VITAS segment operating results:
- Net Patient Revenue of $411.0 million, an increase of
17.4%
- Average Daily Census (ADC) of 22,179, an increase of 14.6%
- Admissions of 16,427, an increase of 3.5%
- Net Income, excluding certain discrete items, of $70.0 million,
an increase of 10.5%
- Adjusted EBITDA, excluding Medicare Cap, of $93.2 million, an
increase of 11.8%
- Adjusted EBITDA margin, excluding Medicare Cap, of 22.5%, a
decline of 112-basis points
Roto-Rooter segment operating results:
- Revenue of $229.0 million, a decrease of 2.9%
- Net Income, excluding certain discrete items, of $42.5 million,
a decrease of 10.8%
- Adjusted EBITDA of $60.3 million, a decline of 7.2%
- Adjusted EBITDA margin of 26.3%, a decline of 120-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 million to $12
million of revenue in the fourth quarter of 2024. This revenue
translated to net income of approximately $2.1 million to $2.3
million. Adjusted EBITDA in the quarter attributed to Covenant
Health is between $2.8 million and $3.0 million.
VITAS net revenue was $411.0 million in the fourth quarter of
2024, which is an increase of 17.4% when compared to the prior-year
period. This revenue increase is comprised primarily of a 14.6%
increase in days-of-care and a geographically weighted average
Medicare reimbursement rate increase of approximately 3.5%. Acuity
mix shift negatively impacted revenue growth 119-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 44-basis
points.
In the fourth quarter of 2024, VITAS accrued $2.4 million in
Medicare Cap billing limitation, essentially flat with the fourth
quarter of 2023.
Of VITAS’ 34 Medicare provider numbers, 25 provider numbers have
a trailing 12-month Medicare Cap cushion of 10% or greater, five
provider numbers have a cushion between 0% and 10%, and four
provider numbers have a trailing 12-month Medicare Cap billing
limitation totaling $9.6 million. As noted above, VITAS’ weighted
average Medicare reimbursement rate increase during the quarter was
3.5%. The per-admission Medicare Cap protection for the period
beginning October 1, 2024 increased 2.9%, which is the overall
national average reimbursement rate increase. This 60-basis point
average differential between the reimbursement rate increase and
the Medicare Cap increase has reduced cushion in our programs for
both the trailing 12-months and our projected fiscal year 2025. The
actual basis point differential in certain of our programs,
including the Florida program, exceeds the overall 60-basis point
average.
Average revenue per patient per day in the fourth quarter of
2024 was $206.23 which is 244-basis points above the prior-year
period. Reimbursement for routine home care and high acuity care
averaged $182.94 and $1,125.61, respectively. During the quarter,
high acuity days-of-care were 2.5% of total days of care, a decline
of 22-basis points when compared to the prior-year quarter.
The fourth quarter 2024 gross margin, excluding Medicare Cap,
was 28.8%. This compares to the prior year quarter’s gross margin
of 29.9%, excluding Medicare Cap. The fourth quarter 2023 gross
margin was positively impacted by 135-basis points due to a
one-time change in their vacation roll-over policy. Selling,
general and administrative expenses were $25.6 million in the
fourth quarter of 2024 compared to $22.0 million in the prior-year
quarter.
Adjusted EBITDA, excluding Medicare Cap, totaled $93.2 million
in the quarter, an increase of 11.8% when compared to the prior
year period. Adjusted EBITDA margin in the quarter, excluding
Medicare Cap, was 22.5%, which is 112-basis points below the
prior-year period due mainly to the one-time vacation adjustment in
2023.
Hurricanes Helene and Milton, which impacted the panhandle of
Florida and other parts of the southeastern United States in late
September and early October, did not result in any significant
property loss or damage to VITAS. However, as with other similar
events, we did experience a slowdown in admission activity while
health systems prepared for the hurricane and then dealt with the
aftermath. We estimate that admissions were negatively impacted
during the fourth quarter by approximately 150-175 patients.
In October 2024, VITAS admitted its first patient in Pasco
County, Florida. Additionally, in December 2024, VITAS was awarded
a certificate of need in Marion County, Florida.
Roto-Rooter
Roto-Rooter generated quarterly revenue of $229.0 million in the
fourth quarter of 2024, a decrease of 2.9%, when compared to the
prior-year quarter.
Roto-Rooter branch commercial revenue in the quarter totaled
$54.3 million, an increase of 0.4% from the prior-year period. This
aggregate commercial revenue change consisted of drain cleaning
revenue increasing 0.2%, plumbing declining 9.6%, excavation
increasing 7.6%, and water restoration increasing 19.8%.
Roto-Rooter branch residential revenue in the quarter totaled
$160.5 million, a decrease of 2.0%, over the prior-year period.
This aggregate residential revenue change consisted of drain
cleaning declining 2.8%, plumbing declining 9.6%, excavation
declining 1.9%, and water restoration increasing 2.8%.
Roto-Rooter’s fourth quarter 2024 gross margin was 51.3%. This
compares to the prior year quarter’s gross margin of 52.9%.
Roto-Rooter’s selling, general and administrative expenses were
$57.2 million in the quarter, which is a decrease of 4.1% compared
to the fourth quarter of 2023. The decline in selling, general and
administrative expenses was caused mainly by lower internet
marketing costs in the fourth quarter of 2024 compared to 2023.
Adjusted EBITDA in the fourth quarter of 2024 totaled $60.3
million, a decrease of 7.2% when compared to the fourth quarter of
2023. The Adjusted EBITDA margin in the quarter was 26.3% which
represents a 120-basis point decline from the fourth quarter of
2023.
Chemed
Consolidated
As of December 31, 2024, Chemed had total cash and cash
equivalents of $178.4 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 388,235 shares of
Chemed stock for $212.8 million which equates to a cost per share
of $548.13. As of December 31, 2024, there was approximately $255.3
million of remaining share repurchase authorization under its
plan.
Guidance for
2025
VITAS 2025 revenue, prior to Medicare Cap, is estimated to
increase 10.5% to 11.3% when compared to 2024. ADC is estimated to
increase 8.5% to 9.0%. Full year adjusted EBITDA margin, prior to
Medicare Cap, is estimated to be 18.4% to 18.9%. Medicare Cap
billing limitations are estimated to be $9.5 million in calendar
year 2025.
Roto-Rooter is forecasted to achieve full-year 2025 revenue
growth of 2.4% to 3.0%. Roto-Rooter’s adjusted EBITDA margin for
2025 is expected to be 25.7% to 26.3%.
Based upon the above, full-year 2025 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 $24.95 to
$25.45. This compares to full-year 2024 adjusted earnings per
diluted share of $23.13.
The 2025 earnings trajectory is weighted towards the second half
of the year. Roto-Rooter’s revenue and associated income is
expected to accelerate during the year, as Roto-Rooter management’s
business improvement initiatives continue to build momentum.
Additionally, the first quarter of 2024 was Roto-Rooter’s strongest
quarter making for difficult comparisons at the beginning of the
year. VITAS’ revenue growth and EBITDA margin, prior to Medicare
Cap in the second and third quarters, will be adversely impacted by
the initiatives required to moderate the impact of the Medicare Cap
rate differential discussed above. The impact to the first quarter
for VITAS will be mostly offset by the results of the Covenant
acquisition which occurred in April 2024.
The 2025 guidance assumes an effective corporate tax rate on
adjusted earnings of 24.0% and a diluted share count of 14.8
million shares.
Conference
Call
As previously disclosed, Chemed will host a conference call and
webcast at 10 a.m., ET, on Thursday February 27, 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/pxs2dghv/.
Participants may also register via teleconference at:
https://register.vevent.com/register/BIa60a1e9fbd7b47dab63b5406c1e907a2.
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 December
31,
For the Years Ended December
31,
2024
2023
2024
2023
Service revenues and sales
$
639,993
$
585,912
$
2,431,287
2,264,417
Cost of services provided and goods sold
405,875
358,346
1,576,939
1,465,602
Selling, general and administrative expenses (aa)
104,251
100,436
424,360
395,120
Depreciation
13,263
13,024
52,864
50,802
Amortization
2,568
2,515
10,185
10,063
Other operating expense
158
197
446
2,261
Total costs and expenses
526,115
474,518
2,064,794
1,923,848
Income from operations
113,878
111,394
366,493
340,569
Interest expense
(499
)
(342
)
(1,780
)
(3,108
)
Other income--net (bb)
6,744
4,541
34,752
12,906
Income before income taxes
120,123
115,593
399,465
350,367
Income taxes
(29,804
)
(25,540
)
(97,466
)
(77,858
)
Net income
$
90,319
$
90,053
$
301,999
$
272,509
Earnings Per Share Net income
$
6.08
$
5.96
$
20.10
$
18.11
Average number of shares outstanding
14,853
15,099
15,024
15,050
Diluted Earnings Per Share Net income
$
6.02
$
5.90
$
19.89
$
17.93
Average number of shares outstanding
14,992
15,270
15,186
15,200
(aa) Selling, general and administrative
("SG&A") expenses comprise (in thousands):
Three Months Ended December
31,
For the Years Ended December
31,
2024
2023
2024
2023
SG&A expenses before long-term incentive compensation and the
impact of market value adjustments related to deferred compensation
plans
$
96,358
$
95,601
$
384,069
$
377,027
Long-term incentive compensation
4,354
3,872
20,152
11,689
Market value adjustments related to deferred compensation trusts
3,539
963
20,139
6,404
Total SG&A expenses
$
104,251
$
100,436
$
424,360
$
395,120
(bb) Other income--net comprises (in thousands): Three
Months Ended December 31, For the Years Ended December 31,
2024
2023
2024
2023
Market value adjustments related to deferred compensation
trusts
$
3,539
$
963
$
20,139
$
6,404
Interest income
3,205
3,408
14,610
6,270
Other
-
170
3
232
Total other income--net
$
6,744
$
4,541
$
34,752
$
12,906
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS (in thousands, except per share
data)(unaudited)
December 31,
2024
2023
Assets Current assets Cash and cash equivalents
$
178,350
$
263,958
Accounts receivable less allowances
171,163
181,511
Inventories
8,193
12,004
Prepaid income taxes
11,068
13,166
Prepaid expenses
25,974
30,204
Total current assets
394,748
500,843
Investments of deferred compensation plans held in trust
130,960
106,126
Properties and equipment, at cost less accumulated depreciation
200,837
203,840
Lease right of use asset
127,323
126,387
Identifiable intangible assets less accumulated amortization
92,206
90,264
Goodwill
666,744
585,017
Other assets
55,757
55,618
Total Assets
$
1,668,575
$
1,668,095
Liabilities Current liabilities Accounts payable
$
44,146
$
64,034
Accrued insurance
56,703
58,568
Accrued income taxes
7,593
6,858
Accrued compensation
92,073
88,381
Short-term lease liability
42,306
38,635
Other current liabilities
42,874
55,574
Total current liabilities
285,695
312,050
Deferred income taxes
25,945
30,321
Deferred compensation liabilities
126,035
104,069
Long-term lease liability
98,538
100,776
Other liabilities
13,369
13,003
Total Liabilities
549,582
560,219
Stockholders' Equity Capital stock
37,422
37,184
Paid-in capital
1,484,176
1,341,273
Retained earnings
2,721,832
2,446,925
Treasury stock, at cost
(3,126,660
)
(2,719,588
)
Deferred compensation payable in Company stock
2,223
2,082
Total Stockholders' Equity
1,118,993
1,107,876
Total Liabilities and Stockholders' Equity
$
1,668,575
$
1,668,095
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (in
thousands)(unaudited)
For the Years Ended December
31,
2024
2023
Cash Flows from Operating Activities Net income
$
301,999
$
272,509
Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation and amortization
63,049
60,865
Stock option expense
32,033
30,082
Noncash long-term incentive compensation
18,794
9,267
Litigation settlements
(5,750
)
2,050
Benefit for deferred income taxes
(4,138
)
(8,027
)
Noncash directors' compensation
1,282
1,444
Amortization of debt issuance costs
321
580
Changes in operating assets and liabilities, excluding amounts
acquired in business combinations: Decrease/(increase) in accounts
receivable
10,678
(41,488
)
Decrease/(increase) in inventories
3,831
(1,732
)
Decrease in prepaid expenses
4,237
87
Decrease in accounts payable and other current liabilities
(9,279
)
(9,348
)
Change in current income taxes
2,182
11,748
Net change in lease assets and liabilities
(674
)
(1,424
)
Increase in other assets
(25,591
)
(9,952
)
Increase in other liabilities
22,749
12,802
Other sources
1,774
836
Net cash provided by operating activities
417,497
330,299
Cash Flows from Investing Activities Business combinations,
net of cash acquired
(97,400
)
(3,994
)
Capital expenditures
(49,531
)
(56,854
)
Proceeds from sale of fixed assets
3,315
640
Other uses
(295
)
(434
)
Net cash used by investing activities
(143,911
)
(60,642
)
Cash Flows from Financing Activities Purchases of treasury
stock
(361,389
)
(67,697
)
Proceeds from exercise of stock options
56,517
102,192
Dividends paid
(27,092
)
(23,502
)
Change in cash overdrafts payable
(15,749
)
15,749
Capital stock surrendered to pay taxes on stock-based compensation
(9,457
)
(9,557
)
Payments on long-term debt
-
(97,500
)
Other (uses)/sources
(2,024
)
490
Net cash used by financing activities
(359,194
)
(79,825
)
(Decrease)/increase in Cash and Cash Equivalents
(85,608
)
189,832
Cash and cash equivalents at beginning of year
263,958
74,126
Cash and cash equivalents at end of year
$
178,350
$
263,958
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENTS OF INCOME FOR THE THREE MONTHS
ENDED DECEMBER 31, 2024 AND 2023 (in thousands)(unaudited)
Chemed
VITAS
Roto-Rooter
Corporate
Consolidated
2024 (a) Service revenues and sales $
411,008
$
228,985
$
-
$
639,993
Cost of services provided and goods sold
294,456
111,419
-
405,875
Selling, general and administrative expenses
25,597
57,168
21,486
104,251
Depreciation
5,074
8,177
12
13,263
Amortization
26
2,542
-
2,568
Other operating expense
18
140
-
158
Total costs and expenses
325,171
179,446
21,498
526,115
Income/(loss) from operations
85,837
49,539
(21,498
)
113,878
Interest expense
(33
)
(81
)
(385
)
(499
)
Intercompany interest income/(expense)
5,114
3,759
(8,873
)
-
Other income—net
90
5
6,649
6,744
Income/(loss) before income taxes
91,008
53,222
(24,107
)
120,123
Income taxes
(20,897
)
(12,500
)
3,593
(29,804
)
Net income/(loss) $
70,111
$
40,722
$
(20,514
)
$
90,319
2023 (b) Service revenues and sales $
349,998
$
235,914
$
-
$
585,912
Cost of services provided and goods sold
247,151
111,195
-
358,346
Selling, general and administrative expenses
22,048
59,621
18,767
100,436
Depreciation
5,052
7,959
13
13,024
Amortization
26
2,489
-
2,515
Other operating expense
4
193
-
197
Total costs and expenses
274,281
181,457
18,780
474,518
Income/(loss) from operations
75,717
54,457
(18,780
)
111,394
Interest expense
(26
)
(55
)
(261
)
(342
)
Intercompany interest income/(expense)
5,008
3,265
(8,273
)
-
Other income—net
201
29
4,311
4,541
Income/(loss) before income taxes
80,900
57,696
(23,003
)
115,593
Income taxes
(17,613
)
(11,809
)
3,882
(25,540
)
Net income/(loss) $
63,287
$
45,887
$
(19,121
)
$
90,053
The "Footnotes to Financial Statements" are integral
parts of this financial information.
CHEMED
CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATING
STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 2024
AND 2023 (in thousands)(unaudited)
Chemed
VITAS
Roto-Rooter
Corporate
Consolidated
2024 (a) Service revenues and sales $
1,530,978
$
900,309
$
-
$
2,431,287
Cost of services provided and goods sold
1,146,803
430,136
-
1,576,939
Selling, general and administrative expenses
99,564
232,852
91,944
424,360
Depreciation
20,362
32,452
50
52,864
Amortization
105
10,080
-
10,185
Other operating expense
178
268
-
446
Total costs and expenses
1,267,012
705,788
91,994
2,064,794
Income/(loss) from operations
263,966
194,521
(91,994
)
366,493
Interest expense
(171
)
(431
)
(1,178
)
(1,780
)
Intercompany interest income/(expense)
20,211
14,397
(34,608
)
-
Other income—net
227
69
34,456
34,752
Income/(loss) before income taxes
284,233
208,556
(93,324
)
399,465
Income taxes
(67,414
)
(48,510
)
18,458
(97,466
)
Net income/(loss) $
216,819
$
160,046
$
(74,866
)
$
301,999
2023 (b) Service revenues and sales $
1,315,065
$
949,352
$
-
$
2,264,417
Cost of services provided and goods sold
1,017,623
447,979
-
1,465,602
Selling, general and administrative expenses
93,296
231,587
70,237
395,120
Depreciation
19,959
30,790
53
50,802
Amortization
104
9,959
-
10,063
Other operating expense/(income)
(12
)
2,273
-
2,261
Total costs and expenses
1,130,970
722,588
70,290
1,923,848
Income/(loss) from operations
184,095
226,764
(70,290
)
340,569
Interest expense
(180
)
(442
)
(2,486
)
(3,108
)
Intercompany interest income/(expense)
19,400
11,918
(31,318
)
-
Other income—net
1,309
126
11,471
12,906
Income/(loss) before income taxes
204,624
238,366
(92,623
)
350,367
Income taxes
(46,115
)
(50,125
)
18,382
(77,858
)
Net income/(loss) $
158,509
$
188,241
$
(74,241
)
$
272,509
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 DECEMBER 31, 2024 AND
2023 (in thousands)(unaudited)
Chemed VITAS
Roto-Rooter Corporate Consolidated
2024
Net income/(loss) $
70,111
$
40,722
$
(20,514
)
$
90,319
Add/(deduct): Interest expense
33
81
385
499
Income taxes
20,897
12,500
(3,593
)
29,804
Depreciation
5,074
8,177
12
13,263
Amortization
26
2,542
-
2,568
EBITDA
96,141
64,022
(23,710
)
136,453
Add/(deduct): Intercompany interest expense/(income)
(5,114
)
(3,759
)
8,873
-
Interest income
(89
)
(5
)
(3,111
)
(3,205
)
Stock option expense
-
-
8,100
8,100
Long-term incentive compensation
-
-
4,354
4,354
Acquisition expense
(203
)
(3
)
-
(206
)
Adjusted EBITDA $
90,735
$
60,255
$
(5,494
)
$
145,496
2023
Net income/(loss) $
63,287
$
45,887
$
(19,121
)
$
90,053
Add/(deduct): Interest expense
26
55
261
342
Income taxes
17,613
11,809
(3,882
)
25,540
Depreciation
5,052
7,959
13
13,024
Amortization
26
2,489
-
2,515
EBITDA
86,004
68,199
(22,729
)
131,474
Add/(deduct): Intercompany interest expense/(income)
(5,008
)
(3,265
)
8,273
-
Interest income
(31
)
(29
)
(3,348
)
(3,408
)
Stock option expense
-
-
7,706
7,706
Long-term incentive compensation
-
-
3,872
3,872
Adjusted EBITDA $
80,965
$
64,905
$
(6,226
)
$
139,644
The "Footnotes to Financial Statements" are integral parts
of this financial information.
CHEMED CORPORATION AND
SUBSIDIARY COMPANIES CONSOLIDATING SUMMARIES OF EBITDA
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 (in
thousands)(unaudited)
Chemed VITAS Roto-Rooter
Corporate Consolidated
2024
Net income/(loss) $
216,819
$
160,046
$
(74,866
)
$
301,999
Add/(deduct): Interest expense
171
431
1,178
1,780
Income taxes
67,414
48,510
(18,458
)
97,466
Depreciation
20,362
32,452
50
52,864
Amortization
105
10,080
-
10,185
EBITDA
304,871
251,519
(92,096
)
464,294
Add/(deduct): Intercompany interest expense/(income)
(20,211
)
(14,397
)
34,608
-
Interest income
(224
)
(69
)
(14,317
)
(14,610
)
Stock option expense
-
-
32,033
32,033
Long-term incentive compensation
-
-
14,815
14,815
Severance arrangement
-
-
5,337
5,337
Acquisition expense
1,099
34
-
1,133
Adjusted EBITDA $
285,535
$
237,087
$
(19,620
)
$
503,002
2023
Net income/(loss) $
158,509
$
188,241
$
(74,241
)
$
272,509
Add/(deduct): Interest expense
180
442
2,486
3,108
Income taxes
46,115
50,125
(18,382
)
77,858
Depreciation
19,959
30,790
53
50,802
Amortization
104
9,959
-
10,063
EBITDA
224,867
279,557
(90,084
)
414,340
Add/(deduct): Intercompany interest expense/(income)
(19,400
)
(11,918
)
31,318
-
Interest income
(1,078
)
(125
)
(5,067
)
(6,270
)
Stock option expense
-
-
30,082
30,082
Long-term incentive compensation
-
-
11,689
11,689
Litigation settlements
-
2,056
-
2,056
Adjusted EBITDA $
204,389
$
269,570
$
(22,062
)
$
451,897
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 December
31,
For the Years Ended December
31,
2024
2023
2024
2023
Net income as reported
$
90,319
$
90,053
$
301,999
$
272,509
Add/(deduct) pre-tax cost of: Stock option expense
8,100
7,706
32,033
30,082
Long-term incentive compensation
4,354
3,872
14,815
11,689
Amortization of reacquired franchise rights
2,352
2,352
9,408
9,408
Severance arrangement
-
-
5,337
-
Acquisition expense
(206
)
-
1,133
-
Litigation settlement
-
-
-
2,056
Add/(deduct) tax impacts: Tax impact of the above pre-tax
adjustments (1)
(2,333
)
(2,216
)
(9,095
)
(8,658
)
Tax impact of deferred tax rate change
-
-
-
(4,241
)
Excess tax benefits on stock compensation
(133
)
(954
)
(4,442
)
(4,330
)
Adjusted net income
$
102,453
$
100,813
$
351,188
$
308,515
Diluted Earnings Per Share As Reported Net income
$
6.02
$
5.90
$
19.89
$
17.93
Average number of shares outstanding
14,992
15,270
15,186
15,200
Adjusted Diluted Earnings Per Share Adjusted net income
$
6.83
$
6.60
$
23.13
$
20.30
Average number of shares outstanding
14,992
15,270
15,186
15,200
(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 December
31,
For the Years Ended December
31,
OPERATING STATISTICS
2024
2023
2024
2023
Net revenue ($000) (c) Homecare
$
358,507
$
303,883
$
1,326,488
$
1,136,437
Inpatient
31,307
28,107
120,604
112,419
Continuous care
25,451
22,620
99,746
85,674
Other
5,556
3,844
19,455
13,582
Subtotal
$
420,821
$
358,454
$
1,566,293
$
1,348,112
Room and board, net
(3,867
)
(2,535
)
(13,304
)
(10,851
)
Contractual allowances
(3,521
)
(3,546
)
(13,597
)
(14,196
)
Medicare cap allowance
(2,425
)
(2,375
)
(8,414
)
(8,000
)
Net Revenue
$
411,008
$
349,998
$
1,530,978
$
1,315,065
Net revenue as a percent of total before Medicare cap allowance
Homecare
85.2
%
84.8
%
84.7
%
84.3
%
Inpatient
7.4
7.8
7.7
8.3
Continuous care
6.0
6.3
6.4
6.4
Other
1.4
1.1
1.2
1.0
Subtotal
100.0
100.0
100.0
100.0
Room and board, net
(0.9
)
(0.7
)
(0.8
)
(0.8
)
Contractual allowances
(0.8
)
(1.0
)
(0.9
)
(1.1
)
Medicare cap allowance
(0.6
)
(0.7
)
(0.5
)
(0.6
)
Net Revenue
97.7
%
97.6
%
97.8
%
97.5
%
Days of care Homecare
1,656,206
1,439,494
6,277,961
5,457,963
Nursing home
322,713
285,616
1,230,726
1,118,728
Respite
11,155
7,394
37,961
26,605
Subtotal routine homecare and respite
1,990,074
1,732,504
7,546,648
6,603,296
Inpatient
27,235
24,918
106,299
101,905
Continuous care
23,189
23,001
95,524
88,631
Total
2,040,498
1,780,423
7,748,471
6,793,832
Number of days in relevant time period
92
92
366
365
Average daily census ("ADC") (days) Homecare
18,002
15,646
17,153
14,953
Nursing home
3,508
3,105
3,363
3,065
Respite
121
80
104
73
Subtotal routine homecare and respite
21,631
18,831
20,620
18,091
Inpatient
296
271
290
279
Continuous care
252
250
261
243
Total
22,179
19,352
21,171
18,613
Total Admissions
16,427
15,867
67,447
63,431
Total Discharges
16,333
15,705
64,618
61,242
Average length of stay (days)
105.5
105.9
103.0
102.2
Median length of stay (days)
18.0
17.0
17.0
16.0
ADC by major diagnosis Cerebro
44.2
%
42.8
%
44.0
%
42.5
%
Neurological
12.9
13.7
13.2
15.3
Cancer
9.9
10.3
10.0
10.5
Cardio
16.2
16.2
16.2
16.1
Respiratory
6.9
7.0
7.1
7.1
Other
9.9
10.0
9.5
8.5
Total
100.0
%
100.0
%
100.0
%
100.0
%
Admissions by major diagnosis Cerebro
28.0
%
26.5
%
27.8
%
26.4
%
Neurological
7.0
8.3
7.6
9.4
Cancer
25.9
25.9
25.3
26.0
Cardio
15.3
15.4
15.6
16.0
Respiratory
9.8
10.1
9.9
10.1
Other
14.0
13.8
13.8
12.1
Total
100.0
%
100.0
%
100.0
%
100.0
%
Estimated uncollectible accounts as a percent of revenues
0.9
%
1.0
%
0.9
%
1.1
%
Accounts receivable -- Days of revenue outstanding-excluding
unapplied Medicare payments
40.0
37.8
n.a. n.a. Days of revenue outstanding-including unapplied
Medicare payments
28.5
36.0
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 MONTHS AND YEARS ENDED DECEMBER 31,
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 December 31, 2024 VITAS
Roto-Rooter Corporate Consolidated
Stock option expense $
-
$
-
$
(8,100
)
$
(8,100
)
Long-term incentive compensation
-
-
(4,354
)
(4,354
)
Amortization of reacquired franchise agreements
-
(2,352
)
-
(2,352
)
Acquisition expense
203
3
-
206
Pretax impact on earnings
203
(2,349
)
(12,454
)
(14,600
)
Excess tax benefits on stock compensation
-
-
133
133
Income tax benefit on the above
(50
)
547
1,836
2,333
After-tax impact on earnings $
153
$
(1,802
)
$
(10,485
)
$
(12,134
)
For the Years Ended December 31, 2024 VITAS
Roto-Rooter Corporate Consolidated
Stock option expense $
-
$
-
$
(32,033
)
$
(32,033
)
Long-term incentive compensation
-
-
(14,815
)
(14,815
)
Amortization of reacquired franchise agreements
-
(9,408
)
-
(9,408
)
Severance arrangement
-
-
(5,337
)
(5,337
)
Acquisition expense
(1,099
)
(34
)
-
(1,133
)
Pretax impact on earnings
(1,099
)
(9,442
)
(52,185
)
(62,726
)
Excess tax benefits on stock compensation
-
-
4,442
4,442
Income tax benefit on the above
267
2,200
6,628
9,095
After-tax impact on earnings $
(832
)
$
(7,242
)
$
(41,115
)
$
(49,189
)
(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
December 31, 2023 VITAS Roto-Rooter
Corporate Consolidated Stock option expense $
-
$
-
$
(7,706
)
$
(7,706
)
Long-term incentive compensation
-
-
(3,872
)
(3,872
)
Amortization of reacquired franchise agreements
-
(2,352
)
-
(2,352
)
Pretax impact on earnings
-
(2,352
)
(11,578
)
(13,930
)
Excess tax benefits on stock compensation
-
-
954
954
Income tax benefit on the above
-
548
1,668
2,216
After-tax impact on earnings $
-
$
(1,804
)
$
(8,956
)
$
(10,760
)
For the Years Ended December 31, 2023 VITAS
Roto-Rooter Corporate Consolidated
Stock option expense $
-
$
-
$
(30,082
)
$
(30,082
)
Long-term incentive compensation
-
-
(11,689
)
(11,689
)
Amortization of reacquired franchise agreements
-
(9,408
)
-
(9,408
)
Litigation settlements
-
(2,056
)
-
(2,056
)
Pretax impact on earnings
-
(11,464
)
(41,771
)
(53,235
)
Excess tax benefits on stock compensation
-
-
4,330
4,330
Tax impact of deferred tax rate change
1,772
3,559
(1,090
)
4,241
Income tax benefit on the above
-
2,671
5,987
8,658
After-tax impact on earnings $
1,772
$
(5,234
)
$
(32,544
)
$
(36,006
)
(c) VITAS has 12 large (greater than 450 ADC), 22
medium (greater than 200 but less than 450 ADC) and 22 small (less
than 200 ADC) hospice programs. Of Vitas' 34 Medicare provider
numbers, for the trailing 12 months, 25 provider numbers have a
Medicare cap cushion of greater than 10%, five provider numbers
have a Medicare cap cushion between 0% and 10%, and four provider
numbers have a Medicare cap liability.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250226582395/en/
Michael D. Witzeman (513) 762-6714
Chemed (NYSE:CHE)
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