che-20240227x8k
false000001958400000195842024-02-272024-02-27

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):

February 27, 2024

CHEMED CORPORATION

(Exact name of registrant as specified in its charter)

Delaware

     1-8351

  31-0791746

(State or other
jurisdiction of
incorporation)

(Commission File Number)

(I.R.S. Employer
Identification
Number)

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

(Address of principal executive offices)             (Zip Code)

Registrant's telephone number, including area code:

(513) 762-6690

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

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

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

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

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

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

 

Title of each class

 

Trading symbol

Name of each exchange on which

registered

Capital stock $1 par value

CHE

NYSE

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

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

Page 1 of 3


Item 2.02 Results of Operations and Financial Condition

On February 27, 2024, Chemed Corporation issued a press release announcing its financial results for the quarter ended December 31, 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 February 27, 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:   February 27, 2024

By:

/s/ Michael D. Witzeman

Michael D. Witzeman

Vice President and Chief Financial Officer

Page 3 of 3

Exhibit 99

Picture 2

CONTACT:  Michael D. Witzeman

(513) 762-6714



Chemed Reports Fourth-Quarter 2023 Results





CINCINNATI, February 27, 2024—Chemed Corporation (Chemed) (NYSE: CHE), which operates VITAS Healthcare Corporation (VITAS), one of the nation’s largest providers of end-of-life care, and Roto-Rooter, the nation’s largest commercial and residential plumbing and drain cleaning services provider, reported financial results for its fourth quarter ended December 31, 2023, 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 December 31, 2023, there is a pre-tax and after-tax expense reversal related to the Retention Program of $2.9 million and $2.2 million, respectively.  For the quarter-ended December 31, 2022, the pretax and after-tax Retention Program expense was $10.1 million and $7.5 million, respectively.



For the year ended December 31, 2023 pretax and after-tax expense for the Retention Program is $20.8 million and $15.8 million, respectively.  For the year ended December 31, 2022 pretax and after-tax expense for the Retention Program was $19.6 million and $14.6 million, respectively.




 

Results for Quarter Ended December 31, 2023



Consolidated operating results:

·

Revenue increased 7.2% to $585.9 million

·

GAAP Diluted Earnings-per-Share (EPS) of $5.90, an increase of 42.9%

·

Adjusted Diluted EPS of $6.60, an increase of 35.0%



VITAS segment operating results:

·

Net Patient Revenue of $350.0 million, an increase of 13.6%

·

Average Daily Census (ADC) of 19,352, an increase of 11.0%

·

Admissions of 15,867, an increase of 7.0%

·

Net Income, excluding certain discrete items, of $63.3 million, an increase of 72.6%

·

Adjusted EBITDA, excluding Medicare Cap, of $83.3 million, an increase of 61.6%

·

Adjusted EBITDA margin, excluding Medicare Cap, of 23.7%, an increase of 705-basis points



Roto-Rooter segment operating results:

·

Revenue of $235.9 million, a decrease of 1.1%

·

Net Income, excluding certain discrete items, of $47.7 million, a decrease of 3.2%

·

Adjusted EBITDA of $64.9 million, a decline of 6.4%

·

Adjusted EBITDA margin of 27.5%, a decline of 154-basis points







VITAS





VITAS net revenue was $350.0 million in the fourth quarter of 2023, which is an increase of 13.6% when compared to the prior-year period.  This revenue increase is comprised primarily of an 11.0% increase in days-of-care and a geographically weighted average Medicare reimbursement rate increase of approximately 2.3%.  Acuity mix shift negatively impacted revenue growth 38-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 61-basis points.

 

In the fourth quarter of 2023, VITAS accrued $2.4 million in Medicare Cap billing limitations.  This compares to a $2.8 million Medicare Cap billing limitation in the fourth quarter of 2022.



Of VITAS’ 30 Medicare provider numbers, 26 provider numbers have a trailing 12-month Medicare Cap cushion of 10% or greater, two provider numbers have a cushion between 5% and 10%, no provider number has a cushion between 0% and 5%, and two provider numbers have a trailing 12-month Medicare Cap billing limitation totaling $7.8 million.



Average revenue per patient per day in the fourth quarter of 2023 was $201.33 which is 200-basis points above the prior-year period. Reimbursement for routine home care and high acuity care


 

averaged $177.62 and $1,058.60, respectively.  During the quarter, high acuity days-of-care were 2.7% of total days of care, a decline of 6-basis points when compared to the prior-year quarter.



The fourth quarter 2023 gross margin, excluding Medicare Cap, was 29.9%.  This compares to the prior year gross margin of 23.6%, excluding Medicare Cap.  Approximately 406-basis points of this difference is attributable to the expense associated with the Retention Program.  Selling, general and administrative expenses were $22.0 million in the fourth quarter of 2023 and compares to $22.0 million in the prior-year quarter. 



Adjusted EBITDA, excluding Medicare Cap, totaled $83.3 million in the quarter, an increase of 61.6%.  Adjusted EBITDA margin in the quarter, excluding Medicare Cap, was 23.7%, which is 705-basis points above the prior-year period.  Approximately 406-basis points of this difference is attributable to the expense associated with the Retention Program.



Roto-Rooter



Roto-Rooter generated quarterly revenue of $235.9 million in the fourth quarter of 2023, a decrease of 1.1%, when compared to the prior-year quarter.



Roto-Rooter branch commercial revenue in the quarter totaled $54.0 million, a decrease of 7.9% from the prior-year.  This aggregate commercial revenue decline consisted of drain cleaning revenue declining 8.6%, plumbing declining 6.3%, excavation declining 5.9%, and water restoration declining 16.1%.



Roto-Rooter branch residential revenue in the quarter totaled $162.5 million, an increase of 2.0%, over the prior-year period.  This aggregate residential revenue growth consisted of drain cleaning decreasing 5.6%, plumbing increasing 1.4%, excavation expanding 4.0%, and water restoration increasing 8.6%.



Roto-Rooter’s gross margin in the quarter was 52.9%, a 9-basis point decline when compared to the fourth quarter of 2022.  Adjusted EBITDA in the fourth quarter of 2023 totaled $64.9 million, a decrease of 6.4%.  The Adjusted EBITDA margin in the quarter was 27.5%, which is 154-basis points below the prior-year period.





Chemed Consolidated



As of December 31, 2023, Chemed had total cash and cash equivalents of $264.0 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.  The Company paid off the remaining portion of the term loan in the second quarter of 2023.  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 79,512 shares of Chemed stock for $46.0 million which equates to a cost per share of $579.09.  As of December 31, 2023, there was approximately $314.1 million of remaining share repurchase authorization under its plan.





Guidance for 2024



VITAS 2024 revenue, prior to Medicare Cap, is estimated to increase 9.0% to 9.8% when compared to 2023.  ADC is estimated to increase 6.5% to 7.0%.  Full year adjusted EBITDA margin, prior to Medicare Cap, is estimated to be 17.8% to 18.3%.  Medicare Cap billing limitations are estimated to be $9.5 million in calendar year 2024.



Roto-Rooter is forecasted to achieve full-year 2024 revenue growth of 3.5% to 4.0%. Roto-Rooter’s adjusted EBITDA margin for 2024 is expected to be 28.7% to 29.1%.



Based upon the above, full-year 2024 earnings per diluted share, excluding: non-cash expense for stock options, tax benefits from stock option exercises, costs related to litigation, and other discrete items, is estimated to be in the range of $23.30 to $23.70.



The 2024 guidance assumes an effective corporate tax rate on adjusted earnings of 24.2% and a diluted share count of 15.2 million shares.  Chemed’s 2023 adjusted earnings per diluted share was $20.30, including $1.04 per share for costs associated with the 2023 portion of the Retention Program.





 

Conference Call







As previously disclosed, Chemed will host a conference call and webcast at 10 a.m., ET, on Wednesday February 28, 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/586r6wmh.



Participants may also register via teleconference at: https://register.vevent.com/register/BIefc8b6001c2b43b09e16a655471d87c4.  

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 18,600 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,



 

2023

 

2022

 

2023

 

2022

Service revenues and sales

 

$

585,912 

 

$

546,654 

 

 

2,264,417 

 

$

2,134,963 

Cost of services provided and goods sold

 

 

358,346 

 

 

349,570 

 

 

1,465,602 

 

 

1,369,877 

Selling, general and administrative expenses (aa)

 

 

100,436 

 

 

96,928 

 

 

395,120 

 

 

358,727 

Depreciation

 

 

13,024 

 

 

12,096 

 

 

50,802 

 

 

49,102 

Amortization

 

 

2,515 

 

 

2,512 

 

 

10,063 

 

 

10,070 

Other operating expense

 

 

197 

 

 

4,221 

 

 

2,261 

 

 

3,691 

Total costs and expenses

 

 

474,518 

 

 

465,327 

 

 

1,923,848 

 

 

1,791,467 

Income from operations

 

 

111,394 

 

 

81,327 

 

 

340,569 

 

 

343,496 

Interest expense

 

 

(342)

 

 

(1,601)

 

 

(3,108)

 

 

(4,584)

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

 

 

4,541 

 

 

2,674 

 

 

12,906 

 

 

(9,233)

Income before income taxes

 

 

115,593 

 

 

82,400 

 

 

350,367 

 

 

329,679 

Income taxes

 

 

(25,540)

 

 

(20,274)

 

 

(77,858)

 

 

(80,055)

Net income

 

$

90,053 

 

$

62,126 

 

$

272,509 

 

$

249,624 

Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

5.96 

 

$

4.17 

 

$

18.11 

 

$

16.72 

Average number of shares outstanding

 

 

15,099 

 

 

14,913 

 

 

15,050 

 

 

14,929 

Diluted Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

5.90 

 

$

4.13 

 

$

17.93 

 

$

16.53 

Average number of shares outstanding

 

 

15,270 

 

 

15,052 

 

 

15,200 

 

 

15,099 



 

 

 

 

 

 

 

 

 

 

 

 

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



 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended December 31,

 

For the Years  Ended December 31,



 

2023

 

2022

 

2023

 

2022

SG&A expenses before long-term incentive compensation

 

 

 

 

 

 

 

 

 

 

 

 

and the impact of market value adjustments related to

 

 

 

 

 

 

 

 

 

 

 

 

deferred compensation plans

 

$

95,601 

 

$

91,779 

 

$

377,027 

 

$

360,896 

Long-term incentive compensation

 

 

3,872 

 

 

2,923 

 

 

11,689 

 

 

7,801 

Market value adjustments related to deferred

 

 

 

 

 

 

 

 

 

 

 

 

compensation trusts

 

 

963 

 

 

2,226 

 

 

6,404 

 

 

(9,970)

Total SG&A expenses

 

$

100,436 

 

$

96,928 

 

$

395,120 

 

$

358,727 



 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 



 

Three Months Ended December 31,

 

For the Years  Ended December 31,



 

2023

 

2022

 

2023

 

2022

Market value adjustments related to deferred

 

 

 

 

 

 

 

 

 

 

 

 

compensation trusts

 

$

963 

 

$

2,226 

 

$

6,404 

 

$

(9,970)

Interest income

 

 

3,408 

 

 

65 

 

 

6,270 

 

 

355 

Other

 

 

170 

 

 

383 

 

 

232 

 

 

382 

Total other income/(expense)--net

 

$

4,541 

 

$

2,674 

 

$

12,906 

 

$

(9,233)




 





 

 

 

 

 

 

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATED BALANCE SHEETS

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



 

 

 

 

 

 



 

December 31,



 

2023

 

2022

Assets

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

263,958 

 

$

74,126 

Accounts receivable less allowances

 

 

181,511 

 

 

139,408 

Inventories

 

 

12,004 

 

 

10,272 

Prepaid income taxes

 

 

13,166 

 

 

18,515 

Prepaid expenses

 

 

30,204 

 

 

30,291 

Total current assets

 

 

500,843 

 

 

272,612 

Investments of deferred compensation plans held in trust

 

 

106,126 

 

 

93,196 

Properties and equipment, at cost less accumulated depreciation

 

 

203,840 

 

 

199,714 

Lease right of use asset

 

 

126,387 

 

 

135,662 

Identifiable intangible assets less accumulated amortization

 

 

90,264 

 

 

99,726 

Goodwill

 

 

585,017 

 

 

581,295 

Other assets

 

 

55,618 

 

 

59,807 

Total Assets

 

$

1,668,095 

 

$

1,442,012 

Liabilities

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

 

$

64,034 

 

$

41,884 

Current portion of long-term debt

 

 

 -

 

 

5,000 

Income taxes

 

 

6,858 

 

 

 -

Accrued insurance

 

 

58,568 

 

 

58,515 

Accrued compensation

 

 

88,381 

 

 

87,350 

Accrued legal

 

 

6,386 

 

 

4,456 

Short-term lease liability

 

 

38,635 

 

 

38,996 

Other current liabilities

 

 

49,188 

 

 

61,004 

Total current liabilities

 

 

312,050 

 

 

297,205 

Deferred income taxes

 

 

30,321 

 

 

38,613 

Long-term debt

 

 

 -

 

 

92,500 

Deferred compensation liabilities

 

 

104,069 

 

 

92,330 

Long-term lease liability

 

 

100,776 

 

 

110,513 

Other liabilities

 

 

13,003 

 

 

12,136 

Total Liabilities

 

 

560,219 

 

 

643,297 

Stockholders' Equity

 

 

 

 

 

 

Capital stock

 

 

37,184 

 

 

36,796 

Paid-in capital

 

 

1,341,273 

 

 

1,149,899 

Retained earnings

 

 

2,446,925 

 

 

2,197,918 

Treasury stock, at cost

 

 

(2,719,588)

 

 

(2,588,145)

Deferred compensation payable in Company stock

 

 

2,082 

 

 

2,247 

Total Stockholders' Equity

 

 

1,107,876 

 

 

798,715 

Total Liabilities and Stockholders' Equity

 

$

1,668,095 

 

$

1,442,012 




 









 

 

 

 

 

 

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)(unaudited)



 

 

 

 

 

 



 

For the Years Ended December 31,



 

2023

 

2022

Cash Flows from Operating Activities

 

 

 

 

 

 

Net income

 

$

272,509 

 

$

249,624 

Adjustments to reconcile net income to net cash provided

 

 

 

 

 

 

by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

60,865 

 

 

59,172 

Stock option expense

 

 

30,082 

 

 

26,254 

Deferred payroll taxes

 

 

 -

 

 

(18,175)

Noncash long-term incentive compensation

 

 

9,267 

 

 

6,188 

(Benefit)/provision for deferred income taxes

 

 

(8,027)

 

 

14,827 

Litigation settlements

 

 

2,050 

 

 

4,000 

Noncash directors' compensation

 

 

1,444 

 

 

1,170 

Amortization of debt issuance costs

 

 

580 

 

 

342 

Changes in operating assets and liabilities, excluding

 

 

 

 

 

 

amounts acquired in business combinations:

 

 

 

 

 

 

Increase in accounts receivable

 

 

(41,488)

 

 

(2,414)

Increase in inventories

 

 

(1,732)

 

 

(162)

Decrease in prepaid expenses

 

 

87 

 

 

2,397 

(Decrease)/increase in accounts payable and

 

 

 

 

 

 

other current liabilities

 

 

(9,348)

 

 

15,343 

Change in current income taxes

 

 

11,748 

 

 

(996)

Net change in lease assets and liabilities

 

 

(1,424)

 

 

1,471 

Increase in other assets

 

 

(9,952)

 

 

(45,779)

Increase/(decrease) in other liabilities

 

 

12,802 

 

 

(3,350)

Other sources/(uses)

 

 

836 

 

 

(26)

Net cash provided by operating activities

 

 

330,299 

 

 

309,886 

Cash Flows from Investing Activities

 

 

 

 

 

 

Capital expenditures

 

   

(56,854)

 

   

(57,325)

Business combinations, net of cash acquired

 

 

(3,994)

 

 

(3,529)

Proceeds from sale of fixed assets

 

 

640 

 

 

2,330 

Other uses

 

 

(434)

 

 

(878)

Net cash used by investing activities

 

 

(60,642)

 

 

(59,402)

Cash Flows from Financing Activities

 

 

 

 

 

 

Proceeds from exercise of stock options

 

 

102,192 

 

 

44,968 

Payments on other long-term debt

 

 

(97,500)

 

 

(2,500)

Proceeds from other long-term debt

 

 

 -

 

 

100,000 

Purchases of treasury stock

 

 

(67,697)

 

 

(114,515)

Dividends paid

 

 

(23,502)

 

 

(22,017)

Change in cash overdrafts payable

 

 

15,749 

 

 

(11,884)

Capital stock surrendered to pay taxes on stock-based compensation

 

 

(9,557)

 

 

(15,611)

Debt issuance costs

 

 

 -

 

 

(1,586)

Payments on revolving line of credit

 

 

 -

 

 

(306,800)

Proceeds from revolving line of credit

 

 

 -

 

 

121,800 

Other sources/(uses)

 

 

490 

 

 

(1,108)

Net cash used by financing activities

 

 

(79,825)

 

 

(209,253)

Increase/(decrease) in Cash and Cash Equivalents

 

 

189,832 

 

 

41,231 

Cash and cash equivalents at beginning of year

 

 

74,126 

 

 

32,895 

Cash and cash equivalents at end of year

 

$

263,958 

 

$

74,126 










 





 

 

 

 

 

 

 

 

 

 

 

 

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATING STATEMENTS OF INCOME

FOR THE THREE MONTHS ENDED DECEMBER 31, 2023 AND 2022

(in thousands)(unaudited)



 

 

 

 

 

 

 

Chemed



 

VITAS

 

Roto-Rooter

 

Corporate

 

Consolidated

2023 (a)

 

 

 

 

 

 

 

 

 

 

 

 

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 (income)/expense

 

 

 

 

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 



 

 

 

 

 

 

 

 

 

 

 

 

2022 (b)

 

 

 

 

 

 

 

 

 

 

 

 

Service revenues and sales

 

$

308,059 

 

$

238,595 

 

$

 -

 

$

546,654 

Cost of services provided and goods sold

 

 

237,333 

 

 

112,237 

 

 

 -

 

 

349,570 

Selling, general and administrative expenses

 

 

22,005 

 

 

57,096 

 

 

17,827 

 

 

96,928 

Depreciation

 

 

5,061 

 

 

7,017 

 

 

18 

 

 

12,096 

Amortization

 

 

26 

 

 

2,486 

 

 

 -

 

 

2,512 

Other operating expense/(income)

 

 

4,266 

 

 

(45)

 

 

 -

 

 

4,221 

Total costs and expenses

 

 

268,691 

 

 

178,791 

 

 

17,845 

 

 

465,327 

Income/(loss) from operations

 

 

39,368 

 

 

59,804 

 

 

(17,845)

 

 

81,327 

Interest expense

 

 

(31)

 

 

(76)

 

 

(1,494)

 

 

(1,601)

Intercompany interest income/(expense)

 

 

4,720 

 

 

2,594 

 

 

(7,314)

 

 

 -

Other income/(expense)—net

 

 

417 

 

 

31 

 

 

2,226 

 

 

2,674 

Income/(loss) before income taxes

 

 

44,474 

 

 

62,353 

 

 

(24,427)

 

 

82,400 

Income taxes

 

 

(10,800)

 

 

(14,829)

 

 

5,355 

 

 

(20,274)

Net income/(loss)

 

$

33,674 

 

$

47,524 

 

$

(19,072)

 

$

62,126 



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

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, 2023 AND 2022

(in thousands)(unaudited)



 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

Chemed



 

VITAS

 

Roto-Rooter

 

Corporate

 

Consolidated

2023 (a)

 

 

 

 

 

 

 

 

 

 

 

 

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 (income)/expense

 

 

(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 



 

 

 

 

 

 

 

 

 

 

 

 

2022 (b)

 

 

 

 

 

 

 

 

 

 

 

 

Service revenues and sales

 

$

1,201,564 

 

$

933,399 

 

$

 -

 

$

2,134,963 

Cost of services provided and goods sold

 

 

931,861 

 

 

438,016 

 

 

 -

 

 

1,369,877 

Selling, general and administrative expenses

 

 

89,187 

 

 

222,257 

 

 

47,283 

 

 

358,727 

Depreciation

 

 

21,955 

 

 

27,075 

 

 

72 

 

 

49,102 

Amortization

 

 

101 

 

 

9,969 

 

 

 -

 

 

10,070 

Other operating (income)/expense

 

 

3,337 

 

 

354 

 

 

 -

 

 

3,691 

Total costs and expenses

 

 

1,046,441 

 

 

697,671 

 

 

47,355 

 

 

1,791,467 

Income/(loss) from operations

 

 

155,123 

 

 

235,728 

 

 

(47,355)

 

 

343,496 

Interest expense

 

 

(172)

 

 

(396)

 

 

(4,016)

 

 

(4,584)

Intercompany interest income/(expense)

 

 

18,901 

 

 

9,345 

 

 

(28,246)

 

 

 -

Other income/(expense)—net

 

 

600 

 

 

138 

 

 

(9,971)

 

 

(9,233)

Income/(loss) before income taxes

 

 

174,452 

 

 

244,815 

 

 

(89,588)

 

 

329,679 

Income taxes

 

 

(43,000)

 

 

(58,695)

 

 

21,640 

 

 

(80,055)

Net income/(loss)

 

$

131,452 

 

$

186,120 

 

$

(67,948)

 

$

249,624 



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

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, 2023 AND 2022

(in thousands)(unaudited)



 

 

 

 

 

 

 

Chemed



 

VITAS

 

Roto-Rooter

 

Corporate

 

Consolidated

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 



 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

Net income/(loss)

 

$

33,674 

 

$

47,524 

 

$

(19,072)

 

$

62,126 

Add/(deduct):

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

31 

 

 

76 

 

 

1,494 

 

 

1,601 

Income taxes

 

 

10,800 

 

 

14,829 

 

 

(5,355)

 

 

20,274 

Depreciation