CHE Chemed Corporation

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, 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 March 31, 2023, the pretax and after-tax Retention Program expense was $10.9 million and $8.3 million, respectively. There was no material impact on financial results for the quarter-ended March 31, 2024 as a result of the Retention Program.

Results for Quarter Ended March 31, 2024

Consolidated operating results:

• Revenue increased 5.2% to $589.2 million
• GAAP Diluted Earnings-per-Share (EPS) of $4.24, an increase of 18.4%
• Adjusted Diluted EPS of $5.20, an increase of 21.5%

VITAS segment operating results:

• Net Patient Revenue of $354.0 million, an increase of 14.0%
• Average Daily Census (ADC) of 19,665, an increase of 10.3%
• Admissions of 16,911, an increase of 4.5%
• Net Income, excluding certain discrete items, of $44.0 million, an increase of 77.6%
• Adjusted EBITDA, excluding Medicare Cap, of $60.7 million, an increase of 67.2%
• Adjusted EBITDA margin, excluding Medicare Cap, of 17.0%, an increase of 544-basis points

Roto-Rooter segment operating results:

• Revenue of $235.2 million, a decrease of 5.8%
• Net Income, excluding certain discrete items, of $42.7 million, a decrease of 15.8%
• Adjusted EBITDA of $60.7 million, a decline of 15.6%
• Adjusted EBITDA margin of 25.8%, a decline of 299-basis points

VITAS

VITAS net revenue was $354.0 million in the first quarter of 2024, which is an increase of 14.0% when compared to the prior-year period. This revenue increase is comprised primarily of an 11.5% increase in days-of-care and a geographically weighted average Medicare reimbursement rate increase of approximately 2.6%. Acuity mix shift negatively impacted revenue growth 60-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 50-basis points.

In the first quarter of 2024, VITAS accrued $2.4 million in Medicare Cap billing limitations. This compares to a $2.8 million Medicare Cap billing limitation in the first quarter of 2023.

Of VITAS’ 30 Medicare provider numbers, 27 provider numbers have a trailing 12-month Medicare Cap cushion of 10% or greater, two provider numbers have a cushion between 0% and 10%, and one provider number has a trailing 12-month Medicare Cap billing limitation totaling $6.4 million.

Average revenue per patient per day in the first quarter of 2024 was $203.08 which is 212-basis points above the prior-year period. Reimbursement for routine home care and high acuity care averaged $177.67 and $1,074.78, respectively. During the quarter, high acuity days-of-care were 2.8% of total days of care, a decline of 10-basis points when compared to the prior-year quarter.

The first quarter 2024 gross margin, excluding Medicare Cap, was 23.7%. This compares to the prior year quarter’s gross margin of 19.0%, excluding Medicare Cap. Approximately 370-basis points of this difference is attributable to the expense associated with the Retention Program. Selling, general and administrative expenses were $23.8 million in the first quarter of 2024 and compares to $23.3 million in the prior-year quarter.

Adjusted EBITDA, excluding Medicare Cap, totaled $60.7 million in the quarter, an increase of 67.2%. Adjusted EBITDA margin in the quarter, excluding Medicare Cap, was 17.0%, which is 544-basis points above the prior-year period. Approximately 370-basis points of this difference is attributable to the expense associated with the Retention Program.

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 million in cash.

Roto-Rooter

Roto-Rooter generated quarterly revenue of $235.2 million in the first quarter of 2024, a decrease of 5.8%, when compared to the prior-year quarter.

Roto-Rooter branch commercial revenue in the quarter totaled $53.7 million, a decrease of 10.5% from the prior-year period. This aggregate commercial revenue decline consisted of drain cleaning revenue declining 9.9%, plumbing declining 11.9%, excavation declining 13.0%, and water restoration declining 2.5%.

Roto-Rooter branch residential revenue in the quarter totaled $162.9 million, a decrease of 3.5%, over the prior-year period. This aggregate residential revenue decline consisted of drain cleaning decreasing 5.6%, plumbing decreasing 1.1%, excavation expanding 1.5%, and water restoration decreasing 8.5%.

Roto-Rooter’s gross margin in the quarter was 51.9%, a 126-basis point decline when compared to the first quarter of 2023. Adjusted EBITDA in the first quarter of 2024 totaled $60.7 million, a decrease of 15.6%. The Adjusted EBITDA margin in the quarter was 25.8%, which is 299-basis points below the prior-year period.

Chemed Consolidated

As of March 31, 2024, Chemed had total cash and cash equivalents of $313.4 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 $404.8 million of undrawn borrowing capacity under the Credit Agreement after excluding $45.2 million for Letters of Credit.

During the quarter, the Company repurchased 50,000 shares of Chemed stock for $32.3 million which equates to a cost per share of $646.87. As of March 31, 2024, there was approximately $281.7 million of remaining share repurchase authorization under its plan.

Guidance for 2024

Management reiterates its estimated 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, guidance range of $23.30 to $23.70. Management anticipates providing updated 2024 earnings guidance and related subsidiary operating metrics as part of the June 30, 2024 earnings press release.

Conference Call

As previously disclosed, Chemed will host a conference call and webcast at 10 a.m., ET, on Thursday April 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/as75yrfc.

Participants may also register via teleconference at: https://register.vevent.com/register/BIc1af400b429d468491b37732bcb93819.

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 March 31,

2024

2023

Service revenues and sales $

589,233

 

$

560,157

 

Cost of services provided and goods sold

385,127

 

370,705

 

Selling, general and administrative expenses (aa)

115,873

 

100,095

 

Depreciation

13,287

 

12,286

 

Amortization

2,521

 

2,513

 

Other operating expense

92

 

1,739

 

Total costs and expenses

516,900

 

487,338

 

Income from operations

72,333

 

72,819

 

Interest expense

(425

)

(1,551

)

Other income/(expense)--net (bb)

12,577

 

(103

)

Income before income taxes

84,485

 

71,165

 

Income taxes

(19,468

)

(17,044

)

Net income $

65,017

 

$

54,121

 

Earnings Per Share Net income $

4.30

 

$

3.62

 

Average number of shares outstanding

15,121

 

14,966

 

Diluted Earnings Per Share Net income $

4.24

 

$

3.58

 

Average number of shares outstanding

15,339

 

15,110

 

  (aa) Selling, general and administrative ("SG&A") expenses comprise (in thousands):   Three Months Ended March 31,

2024

2023

SG&A expenses before long-term incentive compensation and the impact of market value adjustments related to deferred compensation plans $

98,418

 

$

97,902

 

Long-term incentive compensation

9,121

 

2,514

 

Market value adjustments related to deferred compensation trusts

8,334

 

(321

)

Total SG&A expenses $

115,873

 

$

100,095

 

  (bb) Other income/(expense)--net comprises (in thousands): Three Months Ended March 31,

2024

2023

Market value adjustments related to deferred compensation trusts $

8,334

 

$

(321

)

Interest income

4,243

 

150

 

Other

-

 

68

 

Total other income/(expense)--net $

12,577

 

$

(103

)

CHEMED CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATED BALANCE SHEETS (in thousands, except per share data)(unaudited)  

March 31,

2024

2023

Assets Current assets Cash and cash equivalents $

313,350

 

$

58,054

 

Accounts receivable less allowances

177,334

 

153,816

 

Inventories

10,712

 

10,663

 

Prepaid income taxes

9,790

 

10,633

 

Prepaid expenses

28,431

 

29,055

 

Total current assets

539,617

 

262,221

 

Investments of deferred compensation plans held in trust

117,649

 

97,436

 

Properties and equipment, at cost less accumulated depreciation

202,784

 

204,164

 

Lease right of use asset

131,751

 

131,219

 

Identifiable intangible assets less accumulated amortization

88,137

 

97,348

 

Goodwill

591,519

 

581,586

 

Other assets

56,176

 

57,511

 

Total Assets $

1,727,633

 

$

1,431,485

 

Liabilities Current liabilities Accounts payable $

56,203

 

$

40,279

 

Current portion of long-term debt

-

 

5,000

 

Income taxes

27,353

 

11,223

 

Accrued insurance

62,055

 

63,150

 

Accrued compensation

49,802

 

50,152

 

Accrued legal

7,183

 

6,061

 

Short-term lease liability

39,279

 

38,291

 

Other current liabilities

40,099

 

69,304

 

Total current liabilities

281,974

 

283,460

 

Deferred income taxes

24,899

 

35,418

 

Long-term debt

-

 

16,250

 

Deferred compensation liabilities

117,550

 

97,285

 

Long-term lease liability

106,861

 

106,212

 

Other liabilities

12,854

 

12,507

 

Total Liabilities

544,138

 

551,132

 

Stockholders' Equity Capital stock

37,297

 

36,884

 

Paid-in capital

1,398,733

 

1,186,119

 

Retained earnings

2,505,892

 

2,246,354

 

Treasury stock, at cost

(2,760,543

)

(2,591,588

)

Deferred compensation payable in Company stock

2,116

 

2,284

 

Total Stockholders' Equity

1,183,495

 

880,053

 

Total Liabilities and Stockholders' Equity $

1,727,633

 

$

1,431,185

 

CHEMED CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)(unaudited)

 

 

For the Three Months Ended March 31,

 

2024

2023

Cash Flows from Operating Activities

 

Net income

 

$

65,017

 

$

54,121

 

Adjustments to reconcile net income to net cash provided

 

by operating activities:

 

Depreciation and amortization

 

15,808

 

14,799

 

Noncash long-term incentive compensation

 

9,106

 

2,024

 

Stock option expense

 

9,025

 

8,482

 

Benefit for deferred income taxes

 

(5,422

)

(3,195

)

Amortization of debt issuance costs

 

80

 

95

 

Changes in operating assets and liabilities, excluding

 

amounts acquired in business combinations:

 

Decrease/(increase) in accounts receivable

 

5,345

 

(14,318

)

Decrease/(increase) in inventories

 

1,302

 

(391

)

Decrease in prepaid expenses

 

1,909

 

1,236

 

Decrease in accounts payable and

 

other current liabilities

 

(43,012

)

(24,109

)

Change in current income taxes

 

23,871

 

19,118

 

Net change in lease assets and liabilities

 

25

 

(632

)

Increase in other assets

 

(12,243

)

(2,173

)

Increase in other liabilities

 

13,332

 

5,313

 

Other sources

 

406

 

122

 

Net cash provided by operating activities

 

84,549

 

60,492

 

Cash Flows from Investing Activities

 

Capital expenditures

 

(12,163

)

(17,020

)

Business combinations, net of cash acquired

 

(7,300

)

-

 

Proceeds from sale of fixed assets

 

86

 

146

 

Other uses

 

(8

)

(139

)

Net cash used by investing activities

 

(19,385

)

(17,013

)

Cash Flows from Financing Activities

 

Purchases of treasury stock

 

(38,460

)

-

 

Proceeds from exercise of stock options

 

37,242

 

25,680

 

Dividends paid

 

(6,050

)

(5,685

)

Capital stock surrendered to pay taxes on stock-based compensation

 

(5,725

)

(3,166

)

Change in cash overdrafts payable

 

(2,115

)

-

 

Payments on long-term debt

 

-

 

(76,250

)

Other uses

 

(664

)

(130

)

Net cash used by financing activities

 

(15,772

)

(59,551

)

Increase/(decrease) in Cash and Cash Equivalents

 

49,392

 

(16,072

)

Cash and cash equivalents at beginning of year

 

263,958

 

74,126

 

Cash and cash equivalents at end of year

 

$

313,350

 

$

58,054

 

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATING STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023 (in thousands)(unaudited) Chemed VITAS Roto-Rooter Corporate Consolidated 2024 (a) 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

 

  2023 (b) Service revenues and sales $

310,478

 

$

249,679

 

$

-

 

$

560,157

 

Cost of services provided and goods sold

253,654

 

117,051

 

-

 

370,705

 

Selling, general and administrative expenses

23,336

 

60,813

 

15,946

 

100,095

 

Depreciation

4,958

 

7,312

 

16

 

12,286

 

Amortization

26

 

2,487

 

-

 

2,513

 

Other operating expense

12

 

1,727

 

-

 

1,739

 

Total costs and expenses

281,986

 

189,390

 

15,962

 

487,338

 

Income/(loss) from operations

28,492

 

60,289

 

(15,962

)

72,819

 

Interest expense

(50

)

(133

)

(1,368

)

(1,551

)

Intercompany interest income/(expense)

4,648

 

2,743

 

(7,391

)

-

 

Other income/(expense)—net

189

 

29

 

(321

)

(103

)

Income/(loss) before income taxes

33,279

 

62,928

 

(25,042

)

71,165

 

Income taxes

(8,515

)

(15,275

)

6,746

 

(17,044

)

Net income/(loss) $

24,764

 

$

47,653

 

$

(18,296

)

$

54,121

 

  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, 2024 AND 2023 (in thousands)(unaudited) Chemed VITAS Roto-Rooter Corporate Consolidated

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

 

 

2023

Net income/(loss) $

24,764

 

$

47,653

 

$

(18,296

)

$

54,121

 

Add/(deduct): Interest expense

50

 

133

 

1,368

 

1,551

 

Income taxes

8,515

 

15,275

 

(6,746

)

17,044

 

Depreciation

4,958

 

7,312

 

16

 

12,286

 

Amortization

26

 

2,487

 

-

 

2,513

 

EBITDA

38,313

 

72,860

 

(23,658

)

87,515

 

Add/(deduct): Intercompany interest expense/(income)

(4,648

)

(2,743

)

7,391

 

-

 

Interest income

(121

)

(29

)

-

 

(150

)

Stock option expense

-

 

-

 

8,482

 

8,482

 

Long-term incentive compensation

-

 

-

 

2,514

 

2,514

 

Litigation settlement

-

 

1,756

 

-

 

1,756

 

Adjusted EBITDA $

33,544

 

$

71,844

 

$

(5,271

)

$

100,117

 

    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,

2024

2023

Net income as reported $

65,017

 

$

54,121

 

Add/(deduct) pre-tax cost of: Stock option expense

9,026

 

8,482

 

Severance arrangement

5,337

 

-

 

Long-term incentive compensation

3,784

 

2,514

 

Amortization of reacquired franchise agreements

2,352

 

2,352

 

Litigation settlements

-

 

1,756

 

Add/(deduct) tax impacts: Tax impact of the above pre-tax adjustments (1)

(2,388

)

(2,852

)

Excess tax benefits on stock compensation

(3,297

)

(1,650

)

Adjusted net income $

79,831

 

$

64,723

 

  Diluted Earnings Per Share As Reported Net income $

4.24

 

$

3.58

 

Average number of shares outstanding

15,339

 

15,110

 

  Adjusted Diluted Earnings Per Share Adjusted net income $

5.20

 

$

4.28

 

Average number of shares outstanding

15,339

 

15,110

 

  (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

2024

2023

Net revenue ($000) (c) Homecare $

304,860

 

$

267,050

 

Inpatient

30,303

 

29,093

 

Continuous care

24,169

 

19,941

 

Other

4,084

 

3,021

 

Subtotal $

363,416

 

$

319,105

 

Room and board, net

(2,944

)

(2,769

)

Contractual allowances

(4,090

)

(3,108

)

Medicare cap allowance

(2,375

)

(2,750

)

Net Revenue $

354,007

 

$

310,478

 

Net revenue as a percent of total before Medicare cap allowance Homecare

83.9

%

83.7

%

Inpatient

8.3

 

9.1

 

Continuous care

6.7

 

6.2

 

Other

1.1

 

1.0

 

Subtotal

100.0

 

100.0

 

Room and board, net

(0.8

)

(0.8

)

Contractual allowances

(1.1

)

(1.0

)

Medicare cap allowance

(0.7

)

(0.9

)

Net Revenue

97.4

%

97.3

%

Days of care Homecare

1,447,912

 

1,286,437

 

Nursing home

283,158

 

265,429

 

Respite

7,752

 

5,760

 

Subtotal routine homecare and respite

1,738,822

 

1,557,626

 

Inpatient

26,645

 

26,369

 

Continuous care

24,037

 

20,686

 

Total

1,789,504

 

1,604,681

 

  Number of days in relevant time period

91

 

90

 

Average daily census ("ADC") (days) Homecare

15,911

 

14,294

 

Nursing home

3,112

 

2,949

 

Respite

85

 

64

 

Subtotal routine homecare and respite

19,108

 

17,307

 

Inpatient

293

 

293

 

Continuous care

264

 

230

 

Total

19,665

 

17,830

 

  Total Admissions

16,911

 

 

 

16,179

 

Total Discharges

16,170

 

 

 

15,405

 

Average length of stay (days)

103.9

 

 

 

99.9

 

Median length of stay (days)

16.0

 

 

 

15.0

 

 

 

 

 

ADC by major diagnosis

 

 

 

 

Cerebro

43.6

%

 

41.8

%

Neurological

13.4

 

 

 

19.3

 

Cancer

10.1

 

 

 

10.5

 

Cardio

16.1

 

 

 

16.0

 

Respiratory

7.2

 

 

 

7.3

 

Other

9.6

 

 

 

5.1

 

Total

100.0

%

 

100.0

%

Admissions by major diagnosis

 

 

 

 

Cerebro

27.7

%

 

26.4

%

Neurological

7.5

 

 

 

10.7

 

Cancer

24.6

 

 

 

24.7

 

Cardio

15.6

 

 

 

16.2

 

Respiratory

10.8

 

 

 

10.9

 

Other

13.8

 

 

 

11.1

 

Total

100.0

%

 

100.0

%

 

 

 

 

Estimated uncollectible accounts as a percent of revenues

1.1

%

 

1.0

%

 

 

 

 

Accounts receivable --

 

 

 

 

Days of revenue outstanding-excluding unapplied Medicare payments

42.3

 

 

 

34.7

 

Days of revenue outstanding-including unapplied Medicare payments

34.3

 

 

 

29.2

 

  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, 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 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

)

   

(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 March 31, 2023 VITAS Roto-Rooter Corporate Consolidated   Stock option expense $

-

$

-

 

$

(8,482

)

$

(8,482

)

Long-term incentive compensation

-

-

 

(2,514

)

(2,514

)

Amortization of reacquired franchise agreements

-

(2,352

)

-

 

(2,352

)

Litigation settlements

-

(1,756

)

-

 

(1,756

)

Pretax impact on earnings

-

(4,108

)

(10,996

)

(15,104

)

Excess tax benefits on stock compensation

-

-

 

1,650

 

1,650

 

Income tax benefit on the above

-

1,089

 

1,763

 

2,852

 

After-tax impact on earnings $

-

$

(3,019

)

$

(7,583

)

$

(10,602

)

   

(c)

VITAS has 11 large (greater than 450 ADC), 19 medium (greater than 200 but less than 450 ADC) and 20 small (less than 200 ADC) hospice programs. Of Vitas' 30 Medicare provider numbers, for the trailing 12 months, 27 provider numbers have a Medicare cap cushion of greater than 10%, one provider number has a Medicare cap cushion between 5% and 10%, one provider number has a Medicare cap cushion between 0% and 5%, and one provider number has a Medicare cap liability.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240424189490/en/

Michael D. Witzeman (513) 762-6714