che-20230630x8k
false000001958400000195842023-06-302023-06-30

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):

June 30, 2023

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 26, 2023, Chemed Corporation issued a press release announcing its financial results for the quarter ended June 30, 2023. 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 26, 2023

 

 

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 26, 2023

By:

/s/ Michael D. Witzeman

Michael D. Witzeman

Vice President and Controller

Page 3 of 3

Exhibit 99

Picture 2

CONTACT:  David P. Williams

(513) 762-6901

Chemed Reports Second-Quarter 2023 Results 



CINCINNATI, July 26, 2023—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, 2023, versus the comparable prior-year period, as follows:



Consolidated operating results:

·

Revenue increased 4.2% to $554 million

·

GAAP Diluted Earnings-per-Share (EPS) of $3.51

·

Adjusted Diluted EPS of $4.71, a decrease of 2.7%



VITAS segment operating results:

·

Net Patient Revenue of $321 million, an increase of 7.8%

·

Average Daily Census (ADC) of 18,392, an increase of 6.2%

·

Admissions of 15,611, an increase of 5.9%

·

Net Income, excluding certain discrete items, of $35.7 million, an increase of 1.3%

·

Adjusted EBITDA, excluding Medicare Cap, of $50.7 million, an increase of 1.4%

·

Adjusted EBITDA margin, excluding Medicare Cap, of 15.7%, a decline of 101-basis points



Roto-Rooter segment operating results:

·

Revenue of $233 million, a  decline of 0.2%

·

Net Income, excluding certain discrete items, of $46.1 million, a decrease of 5.6%

·

Adjusted EBITDA of $65.9 million, a decline of 4.5%

·

Adjusted EBITDA margin of 28.3%, a decline of 128-basis points





VITAS



VITAS net revenue was $321 million in the second quarter of 2023, which is an increase of 7.8% when compared to the prior year period.  This revenue increase is comprised primarily of a 6.2% increase in days-of-care and a geographically weighted average Medicare reimbursement rate increase of approximately 2.7%, partially offset by 100-basis points as a result of CMS reimplementing sequestration that was suspended at the start of the pandemic.  Acuity mix shift had minimal impact in the quarter when compared to the prior-year revenue and level-of-care mix. 


 

The combination of Medicare Cap and other contra revenue changes negatively impacted revenue growth by 10-basis points.

 

In the second quarter of 2023, VITAS accrued $2.75 million in Medicare Cap billing limitations.  This compares to a $2.0 million Medicare Cap billing limitation in the second quarter of 2022.



Of VITAS’ 30 Medicare provider numbers, 24 provider numbers have a trailing nine-month Medicare Cap cushion of 10% or greater, three provider numbers have a cushion between 5% and 10%, and three provider numbers have a trailing nine-month billing limitation liability.



Average revenue per patient per day in the second quarter of 2023 was $197.02 which is 178-basis points above the prior-year period. Reimbursement for routine home care and high acuity care averaged $172.91 and $1,031.58, respectively.  During the quarter, high acuity days-of-care were 2.8% of total days of care, essentially equal to the prior-year quarter.



The second quarter 2023 gross margin, excluding Medicare Cap and the hiring and retention bonus program, was 22.7%.  This is a 143-basis point increase when compared to the second quarter of 2022. The margin increase is net of sequestration which reduced reimbursement 100-basis points when compared to the prior year. During the quarter,  VITAS increased the licensed healthcare staff by 309 professionals.  This results in  total licensed staff increasing by 784 professionals since the inception of the retention program on July 1, 2022.  The increase of 309 net professionals hired during the second quarter of 2023, basically underutilized capacity, is estimated to have negatively impacted margins in the quarter by approximately 80-basis points. 



Selling, general and administrative expenses were $22.7 million in the second quarter of 2023 and compares to $23.1 million incurred in the prior-year quarter.  Adjusted EBITDA, excluding Medicare Cap, totaled $50.7 million in the quarter, an increase of 1.4%.  Adjusted EBITDA margin in the quarter, excluding Medicare Cap, was 15.7%, which is 101-basis points below the prior-year period.  This Adjusted EBITDA margin was negatively impacted by 100-basis points for the reimplementation of sequestration and approximately 80-basis points due to the addition of 309 licensed professionals during the second quarter of 2023. 

Roto-Rooter



Roto-Rooter generated quarterly revenue of $233 million in the second quarter of 2023, a decline of 0.2%, when compared to the prior-year quarter.



Roto-Rooter branch commercial revenue in the quarter totaled $55.5 million, an increase of 1.3%, over the prior year.  This aggregate commercial revenue growth consisted of drain cleaning revenue declining 3.0%, plumbing increasing 5.4%, excavation increasing 2.9%, and water restoration increasing 9.7%.



Roto-Rooter branch residential revenue in the quarter totaled $158 million, a decline of 1.1%, over the prior-year period.  This aggregate residential revenue growth consisted of drain cleaning decreasing 8.6%, plumbing declining 2.8%, excavation expanding 3.8%, and water restoration


 

increasing 2.5%.



Roto-Rooter’s gross margin in the quarter was 52.3%, an 89-basis point decline when compared to the second quarter of 2022.  Adjusted EBITDA in the second quarter of 2023 totaled $65.9 million, a decrease of 4.5%.  The Adjusted EBITDA margin in the quarter was 28.3%, which is  128-basis points below the prior year period.



Chemed Consolidated



As of June 30, 2023, Chemed had total cash and cash equivalents of $160 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.  During the quarter, the Company paid off the remaining portion of the term loan.  The Company has approximately $405 million of undrawn borrowing capacity under the Credit Agreement.



During the quarter, the Company repurchased 25,000 shares of Chemed stock for $13.4 million which equates to a cost per share of $536.98.  As of June 30, 2023, there was approximately $74 million of remaining share repurchase authorization under its plan.



Guidance for 2023



VITAS 2023 revenue, prior to Medicare Cap, is estimated to increase 8.5% to 9.5% when compared to 2022.  Forecasted revenue growth is negatively impacted by 75-basis points as a result of the sequestration relief in the first half of 2022 compared to a full year of sequestration in 2023.  ADC is estimated to increase 6.5% to 7.5%.  Full year adjusted EBITDA margin, prior to Medicare Cap and accrued retention bonuses related to the hiring initiatives, is estimated to be 16.5% to 17.0%.  We are currently estimating $11 million for Medicare Cap billing limitations in calendar year 2023.



Roto-Rooter is forecasted to achieve full-year 2023 revenue growth of 1.0% to 2.0%. Roto-Rooter’s adjusted EBITDA margin for 2023 is expected to be 28.0% to 28.5%.



Based upon the above, full-year 2023 earnings per diluted share, excluding: non-cash expense for stock options, tax benefits from stock option exercises, costs related to litigation, retention program for licensed healthcare employees, and other discrete items, is estimated to be in the range of $19.90 to $20.10.  Current 2023 guidance assumes an effective corporate tax rate on adjusted earnings of 24.7% and a diluted share count of 15.2 million shares.  Chemed’s 2022 reported adjusted earnings per diluted share was $19.75.





 


 

Conference Call

Chemed will host a conference call and webcast at 10 a.m., ET, on Thursday July 27, 2023, 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/ntafx2iw.

Participants may also register via teleconference at: https://register.vevent.com/register/BI8193ef2f50f34636bd3182c2d88daff9.    

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 approximately 18,400 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,



 

2023

 

2022

 

2023

 

2022

Service revenues and sales

 

$

553,816 

 

$

531,288 

 

 

1,113,973 

 

$

1,061,837 

Cost of services provided and goods sold

 

 

374,193 

 

 

336,821 

 

 

744,898 

 

 

673,373 

Selling, general and administrative expenses (aa)

 

 

94,987 

 

 

87,853 

 

 

195,082 

 

 

177,807 

Depreciation

 

 

12,634 

 

 

12,714 

 

 

24,920 

 

 

24,852 

Amortization

 

 

2,514 

 

 

2,520 

 

 

5,027 

 

 

5,038 

Other operating (income)/expense

 

 

(18)

 

 

(558)

 

 

1,721 

 

 

(545)

Total costs and expenses

 

 

484,310 

 

 

439,350 

 

 

971,648 

 

 

880,525 

Income from operations

 

 

69,506 

 

 

91,938 

 

 

142,325 

 

 

181,312 

Interest expense

 

 

(771)

 

 

(902)

 

 

(2,322)

 

 

(1,712)

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

 

 

1,609 

 

 

(4,930)

 

 

1,506 

 

 

(8,792)

Income before income taxes

 

 

70,344 

 

 

86,106 

 

 

141,509 

 

 

170,808 

Income taxes

 

 

(16,967)

 

 

(19,650)

 

 

(34,011)

 

 

(40,183)

Net income

 

$

53,377 

 

$

66,456 

 

$

107,498 

 

$

130,625 

Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

3.54 

 

$

4.45 

 

$

7.16 

 

$

8.73 

Average number of shares outstanding

 

 

15,058 

 

 

14,932 

 

 

15,013 

 

 

14,959 

Diluted Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

3.51 

 

$

4.40 

 

$

7.09 

 

$

8.62 

Average number of shares outstanding

 

 

15,219 

 

 

15,111 

 

 

15,167 

 

 

15,152 



 

 

 

 

 

 

 

 

 

 

 

 

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



 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended June 30,

 

Six Months Ended June 30,



 

2023

 

2022

 

2023

 

2022

SG&A expenses before long-term incentive compensation

 

 

 

 

 

 

 

 

 

 

 

 

and the impact of market value adjustments related to

 

 

 

 

 

 

 

 

 

 

 

 

deferred compensation plans

 

$

91,733 

 

$

91,422 

 

$

189,634 

 

$

184,000 

Long-term incentive compensation

 

 

1,750 

 

 

1,517 

 

 

4,264 

 

 

2,827 

Market value adjustments related to deferred

 

 

 

 

 

 

 

 

 

 

 

 

compensation trusts

 

 

1,504 

 

 

(5,086)

 

 

1,184 

 

 

(9,020)

Total SG&A expenses

 

$

94,987 

 

$

87,853 

 

$

195,082 

 

$

177,807 



 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 



 

Three Months Ended June 30,

 

Six Months Ended June 30,



 

2023

 

2022

 

2023

 

2022

Market value adjustments related to deferred

 

 

 

 

 

 

 

 

 

 

 

 

compensation trusts

 

$

1,504 

 

$

(5,086)

 

$

1,184 

 

$

(9,020)

Interest income

 

 

113 

 

 

154 

 

 

263 

 

 

226 

Other

 

 

(8)

 

 

 

 

59 

 

 

Total other income/(expense)--net

 

$

1,609 

 

$

(4,930)

 

$

1,506 

 

$

(8,792)




 





 

 

 

 

 

 

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATED BALANCE SHEETS

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



 

 

 

 

 

 



 

June 30,



 

2023

 

2022

Assets

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

159,924 

 

$

9,640 

Accounts receivable less allowances

 

 

120,314 

 

 

136,555 

Inventories

 

 

11,684 

 

 

10,696 

Prepaid income taxes

 

 

16,666 

 

 

17,256 

Prepaid expenses

 

 

28,572 

 

 

28,999 

Total current assets

 

 

337,160 

 

 

203,146 

Investments of deferred compensation plans held in trust

 

 

99,522 

 

 

96,061 

Properties and equipment, at cost less accumulated depreciation

 

 

208,101 

 

 

192,005 

Lease right of use asset

 

 

127,215 

 

 

128,290 

Identifiable intangible assets less accumulated amortization

 

 

94,932 

 

 

103,837 

Goodwill

 

 

581,542 

 

 

579,653 

Other assets

 

 

56,708 

 

 

9,972 

Total Assets

 

$

1,505,180 

 

$

1,312,964 

Liabilities

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

 

$

41,058 

 

$

73,975 

Current portion of long-term debt

 

 

 -

 

 

5,000 

Accrued insurance

 

 

57,461 

 

 

54,828 

Accrued compensation

 

 

74,384 

 

 

68,290 

Accrued legal

 

 

6,096 

 

 

808 

Short-term lease liability

 

 

38,779 

 

 

39,062 

Other current liabilities

 

 

84,709 

 

 

43,105 

Total current liabilities

 

 

302,487 

 

 

285,068 

Deferred income taxes

 

 

36,681 

 

 

21,054 

Long-term debt

 

 

 -

 

 

111,800 

Deferred compensation liabilities

 

 

98,941 

 

 

95,624 

Long-term lease liability

 

 

102,112 

 

 

103,389 

Other liabilities

 

 

12,880 

 

 

11,069 

Total Liabilities

 

 

553,101 

 

 

628,004 

Stockholders' Equity

 

 

 

 

 

 

Capital stock

 

 

36,996 

 

 

36,651 

Paid-in capital

 

 

1,240,415 

 

 

1,089,129 

Retained earnings

 

 

2,294,004 

 

 

2,090,214 

Treasury stock, at cost

 

 

(2,621,657)

 

 

(2,533,306)

Deferred compensation payable in Company stock

 

 

2,321 

 

 

2,272 

Total Stockholders' Equity

 

 

952,079 

 

 

684,960 

Total Liabilities and Stockholders' Equity

 

$

1,505,180 

 

$

1,312,964 




 









 

 

 

 

 

 

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)(unaudited)



 

 

 

 

 

 



 

For the Six Months Ended June 30,



 

2023

 

2022

Cash Flows from Operating Activities

 

 

 

 

 

 

Net income

 

$

107,498 

 

$

130,625 

Adjustments to reconcile net income to net cash provided

 

 

 

 

 

 

by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

29,947 

 

 

29,890 

Stock option expense

 

 

16,882 

 

 

14,667 

Noncash long-term incentive compensation

 

 

3,493 

 

 

2,497 

Benefit for deferred income taxes

 

 

(1,932)

 

 

(2,129)

Noncash directors' compensation

 

 

1,444 

 

 

1,170 

Amortization of debt issuance costs

 

 

420 

 

 

153 

Changes in operating assets and liabilities, excluding

 

 

 

 

 

 

amounts acquired in business combinations:

 

 

 

 

 

 

Decrease in accounts receivable

 

 

20,100 

 

 

887 

Increase in inventories

 

 

(1,412)

 

 

(587)

Decrease in prepaid expenses

 

 

1,719 

 

 

3,689 

Increase/(decrease) in accounts payable and

 

 

 

 

 

 

other current liabilities

 

 

8,561 

 

 

(24,001)

Change in current income taxes

 

 

1,865 

 

 

27 

Net change in lease assets and liabilities

 

 

(1,046)

 

 

705 

(Increase)/decrease in other assets

 

 

(3,810)

 

 

2,071 

Increase/(decrease) in other liabilities

 

 

7,344 

 

 

(1,491)

Other sources/(uses)

 

 

1,736 

 

 

(503)

Net cash provided by operating activities

 

 

192,809 

 

 

157,670 

Cash Flows from Investing Activities

 

 

 

 

 

 

Capital expenditures

 

   

(33,420)

 

   

(25,610)

Proceeds from sale of fixed assets

 

 

360 

 

 

1,757 

Business combinations, net of cash acquired

 

 

(305)

 

 

(1,650)

Other uses

 

 

(169)

 

 

(132)

Net cash used by investing activities

 

 

(33,534)

 

 

(25,635)

Cash Flows from Financing Activities

 

 

 

 

 

 

Payments on other long-term debt

 

 

(97,500)

 

 

 -

Proceeds from other long-term debt

 

 

 -

 

 

100,000 

Proceeds from exercise of stock options

 

 

53,675 

 

 

12,869 

Purchases of treasury stock

 

 

(13,425)

 

 

(77,214)

Dividends paid

 

 

(11,412)

 

 

(10,722)

Capital stock surrendered to pay taxes on stock-based compensation

 

 

(5,313)

 

 

(12,115)

Debt issuance costs

 

 

 -

 

 

(1,510)

Payments on revolving line of credit

 

 

 -

 

 

(263,300)

Proceeds from revolving line of credit

 

 

 -

 

 

95,100 

Change in cash overdrafts payable

 

 

 -

 

 

1,716 

Other sources/(uses)

 

 

498 

 

 

(114)

Net cash used by financing activities

 

 

(73,477)

 

 

(155,290)

Increase/(decrease) in Cash and Cash Equivalents

 

 

85,798 

 

 

(23,255)

Cash and cash equivalents at beginning of year

 

 

74,126 

 

 

32,895 

Cash and cash equivalents at end of year

 

$

159,924 

 

$

9,640 










 





 

 

 

 

 

 

 

 

 

 

 

 

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATING STATEMENTS OF INCOME

FOR THE THREE MONTHS ENDED JUNE 30, 2023 AND 2022

(in thousands)(unaudited)



 

 

 

 

 

 

 

Chemed



 

VITAS

 

Roto-Rooter

 

Corporate

 

Consolidated

2023 (a)

 

 

 

 

 

 

 

 

 

 

 

 

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 



 

 

 

 

 

 

 

 

 

 

 

 

2022 (b)

 

 

 

 

 

 

 

 

 

 

 

 

Service revenues and sales

 

$

297,781 

 

$

233,507 

 

$

 -

 

$

531,288 

Cost of services provided and goods sold

 

 

227,533 

 

 

109,288 

 

 

 -

 

 

336,821 

Selling, general and administrative expenses

 

 

23,148 

 

 

54,982 

 

 

9,723 

 

 

87,853 

Depreciation

 

 

6,062 

 

 

6,634 

 

 

18 

 

 

12,714 

Amortization

 

 

26 

 

 

2,494 

 

 

 -

 

 

2,520 

Other operating expense/(income)

 

 

(807)

 

 

249 

 

 

 -

 

 

(558)

Total costs and expenses

 

 

255,962 

 

 

173,647 

 

 

9,741 

 

 

439,350 

Income/(loss) from operations

 

 

41,819 

 

 

59,860 

 

 

(9,741)

 

 

91,938 

Interest expense

 

 

(44)

 

 

(115)

 

 

(743)

 

 

(902)

Intercompany interest income/(expense)

 

 

4,683 

 

 

2,205 

 

 

(6,888)

 

 

 -

Other income/(expense)—net

 

 

119 

 

 

37 

 

 

(5,086)

 

 

(4,930)

Income/(loss) before income taxes

 

 

46,577 

 

 

61,987 

 

 

(22,458)

 

 

86,106 

Income taxes

 

 

(11,365)

 

 

(14,915)

 

 

6,630 

 

 

(19,650)

Net income/(loss)

 

$

35,212 

 

$

47,072 

 

$

(15,828)

 

$

66,456 



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

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, 2023 AND 2022

(in thousands)(unaudited)



 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

Chemed



 

VITAS

 

Roto-Rooter

 

Corporate

 

Consolidated

2023 (a)

 

 

 

 

 

 

 

 

 

 

 

 

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 



 

 

 

 

 

 

 

 

 

 

 

 

2022 (b)

 

 

 

 

 

 

 

 

 

 

 

 

Service revenues and sales

 

$

596,970 

 

$

464,867 

 

$

 -

 

$

1,061,837 

Cost of services provided and goods sold

 

 

454,773 

 

 

218,600 

 

 

 -

 

 

673,373 

Selling, general and administrative expenses

 

 

45,600 

 

 

111,937 

 

 

20,270 

 

 

177,807 

Depreciation

 

 

11,613 

 

 

13,203 

 

 

36 

 

 

24,852 

Amortization

 

 

49 

 

 

4,989 

 

 

 -

 

 

5,038 

Other operating expense

 

 

(955)

 

 

410 

 

 

 -

 

 

(545)

Total costs and expenses

 

 

511,080 

 

 

349,139 

 

 

20,306 

 

 

880,525 

Income/(loss) from operations

 

 

85,890 

 

 

115,728 

 

 

(20,306)

 

 

181,312 

Interest expense

 

 

(96)

 

 

(229)

 

 

(1,387)

 

 

(1,712)

Intercompany interest income/(expense)

 

 

9,339 

 

 

4,381 

 

 

(13,720)

 

 

 -

Other income—net

 

 

156 

 

 

72 

 

 

(9,020)

 

 

(8,792)

Income/(loss) before income taxes

 

 

95,289 

 

 

119,952 

 

 

(44,433)

 

 

170,808 

Income taxes

 

 

(23,595)

 

 

(28,943)

 

 

12,355 

 

 

(40,183)

Net income/(loss)

 

$

71,694 

 

$

91,009 

 

$

(32,078)

 

$

130,625 



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

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, 2023 AND 2022

(in thousands)(unaudited)



 

 

 

 

 

 

 

Chemed



 

VITAS

 

Roto-Rooter

 

Corporate

 

Consolidated

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)

Licensed healthcare retention bonus

 

 

12,833 

 

 

 -

 

 

 -

 

 

12,833 

Stock option expense

 

 

 -

 

 

 -

 

 

8,400 

 

 

8,400 

Long-term incentive compensation

 

 

 -

 

 

 -

 

 

1,750 

 

 

1,750 

Adjusted EBITDA

 

$

47,918 

 

$

65,880 

 

$

(4,665)

 

$

109,133 



 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

Net income/(loss)

 

$

35,212 

 

$

47,072 

 

$

(15,828)

 

$

66,456 

Add/(deduct):

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

44 

 

 

115 

 

 

743 

 

 

902 

Income taxes

 

 

11,365 

 

 

14,915 

 

 

(6,630)

 

 

19,650 

Depreciation

 

 

6,062 

 

 

6,634 

 

 

18 

 

 

12,714 

Amortization

 

 

26 

 

 

2,494 

 

 

 -

 

 

2,520 

EBITDA