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):
October 29, 2012

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 Chemed Center, 255 East 5th Street, Cincinnati, OH 45202	
(Address of principal executive offices)           (Zip Code)	

Registrant’s telephone number, including area code:
(513) 762-6900
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 the Exchange Act (17 CFR 240.14d-2(b))

⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Page 1 of 2

Item 2.02     Results of Operations and Financial Condition

On October 29, 2012 Chemed Corporation issued a press release announcing its financial results for the quarter ended September 30, 2012.  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 October 29, 2012    

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:	October 29, 2012	By:	  /s/  Arthur V. Tucker, Jr.	
 	 	 	Arthur V. Tucker, Jr.	
 	 	 	Vice President and Controller	
Page 2 of 2

Exhibit 99

Chemed Reports Third-Quarter 2012 Results

CINCINNATI--(BUSINESS WIRE)--October 29, 2012--Chemed Corporation (Chemed) (NYSE:CHE), which operates VITAS Healthcare Corporation (VITAS), the nation’s largest provider 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 third quarter ended September 30, 2012, versus the comparable prior-year period, as follows:

Consolidated operating results:
Revenue increased 3.8% to $354 million
GAAP Diluted EPS increased 2.9% to $1.07
Adjusted Diluted EPS increased 6.7% to $1.28

VITAS segment operating results:
Net Patient Revenue of $268 million, an increase of 5.9%
Average Daily Census (ADC) of 14,277, an increase of 4.5%
Admissions of 15,539, an increase of 4.4%
Net Income of $21.9 million, an increase of 4.6%
Adjusted EBITDA of $39.8 million, an increase of 5.2%
Adjusted EBITDA margin of 14.8%, a decrease of 11 basis points

Roto-Rooter segment operating results:
Revenue of $86.4 million, a decrease of 2.4%
Unit-for-unit job count of 157,815, a decrease of 3.0%
Net Income of $6.1 million, a decrease of 23.3%
Adjusted EBITDA of $12.7 million, a decrease of 15.3%
Adjusted EBITDA margin of 14.7%, a decrease of 223 basis points

VITAS

Net revenue for VITAS was $268 million in the third quarter of 2012, which is an increase of 5.9% over the prior-year period. This revenue growth was the result of increased ADC of 4.5%, driven by an increase in admissions of 4.4%, increased discharges of 4.5% and Medicare price increases of approximately 2.5%. Revenue growth was partially offset by mix shift between routine home care and high acuity care.

Average revenue per patient per day in the quarter, excluding the impact of Medicare Cap, was $204.03, which is 1.5% above the prior-year period. Routine home care reimbursement and high acuity care averaged $162.90 and $706.19, respectively, per patient per day in the third quarter of 2012. During the quarter, high acuity days of care were 7.57% of total days of care, 15 basis points lower than the prior-year quarter.

VITAS did not incur any Medicare Cap billing limitations in the third quarter of 2012. The Medicare Cap 2012 fiscal year is based upon Medicare admissions from September 29, 2011, through September 28, 2012, and is compared to Medicare hospice billings from November 1, 2011, through October 31, 2012. Based upon admissions during this period, VITAS estimates there will not be any billing limitations for the 2012 Medicare Cap fiscal year.

Of VITAS’ 35 unique Medicare provider numbers, 29 provider numbers have a Medicare Cap cushion of 10% or greater during the 2012 Medicare Cap year; two provider numbers have a Medicare Cap cushion between 5% and 10%; and four provider numbers have a cap cushion between 0% and 5%. VITAS generated an aggregate cap cushion of $217 million during in the 2012 Medicare Cap fiscal year.

The third quarter of 2012 gross margin was 22.2%, which is equal to the gross margin in the third quarter of 2011 when you exclude the impact of Medicare Cap in the prior-year quarter.

Selling, general and administrative expense was $20.1 million in the third quarter of 2012, which is an increase of 6.3% when compared to the prior-year quarter. Adjusted EBITDA totaled $39.8 million in the quarter, an increase of 5.2% over the prior-year period. Adjusted EBITDA margin, excluding the impact from Medicare Cap, was 14.8% in the quarter which is equal to the prior year.

Roto-Rooter

Roto-Rooter’s plumbing and drain cleaning business generated sales of $86.4 million for the third quarter of 2012, a decrease of $2.1 million, or 2.4%, over the prior-year quarter. Approximately $1.0 million, or 113 basis points, of this decline is attributed to Roto-Rooter eliminating a small HVAC operation in an East Coast market. This resulted in effectively zero HVAC revenue in the third quarter of 2012.

Unit-for-unit job count in the third quarter of 2012 declined 3.0% when compared to the prior-year period. During the third quarter of 2012, total residential jobs decreased 4.8%, as residential plumbing jobs declined 4.6% and residential drain cleaning jobs decreased 4.9%, when compared to the third quarter of 2011. Residential jobs represented 69% of total job count in the quarter. Total commercial jobs increased 1.1%, with commercial plumbing/excavation job count increasing 5.6% and commercial drain cleaning declining 0.4% when compared to the prior-year quarter. The “All Other” residential and commercial job category, which represents 1.6% of aggregate job count, decreased 8.6%.

Roto-Rooter’s gross margin in the quarter was 44.3%, a 76 basis point decline when compared to the third quarter of 2011. Adjusted EBITDA in the third quarter of 2012 totaled $12.7 million, a decline of 15.3%, and the Adjusted EBITDA margin was 14.7% in the quarter, a decline of 223 basis points.

Chemed Consolidated

Chemed had total debt of $173 million at September 30, 2012. This debt is net of the discount taken as a result of convertible debt accounting requirements. Excluding this discount, aggregate debt is $187 million and is due in May 2014. Chemed’s total debt equates to less than one times trailing twelve-month adjusted EBITDA.

In March 2011 Chemed entered into a five-year Credit Agreement that consists of a $350 million revolving credit facility. The interest rate on this Credit Agreement has a floating rate that is currently LIBOR plus 175 basis points. In addition, an expansion feature is included in this Credit Agreement that provides Chemed the opportunity to increase its revolver and/or enter into term loans for an additional $150 million. At September 30, 2012, this facility had approximately $321 million of undrawn borrowing capacity after deducting $29 million for letters of credit issued to secure the Company’s workers’ compensation insurance.

Capital expenditures through September 2012 aggregated $26.5 million and compares to depreciation and amortization during the same period of $22.6 million.

During the quarter, the Company purchased 9,334 shares of Chemed stock at an aggregate cost of $586,000. The Company has $63.5 million remaining under Chemed’s previously announced share repurchase program.

Guidance for 2012

VITAS expects to achieve full-year 2012 revenue growth, prior to Medicare Cap, of 7.5% to 8.0%. Admissions in 2012 are estimated to increase approximately 4.0% to 4.5% and full-year Adjusted EBITDA margin, prior to Medicare Cap, is estimated to be 14.5% to 15.0%. Effective October 1, 2012, Medicare increased the average hospice reimbursement rates by approximately 0.9%. Guidance assumes VITAS will incur $1.25 million of estimated Medicare contractual billing limitations for the remainder of calendar year 2012.

Roto-Rooter expects to achieve full-year 2012 revenue 2.0% below the prior year. The revenue estimate is a result of increased pricing of approximately 1.5%, a favorable mix shift to higher revenue jobs, with job count estimated to decrease 3% to 4%. Adjusted EBITDA margin for 2012 is estimated in the range of 15.8% to 16.3%.

Based upon the above, management estimates 2012 earnings per diluted share, excluding non-cash expense for stock options, the non-cash interest expense related to the accounting for convertible debt and other items not indicative of ongoing operations, will be in the range of $5.20 to $5.30. This compares to Chemed’s 2011 reported adjusted earnings per diluted share of $4.78.

Conference Call

Chemed will host a conference call and webcast at 10 a.m., ET, on Tuesday, October 30, 2012, to discuss the Company's quarterly results and to provide an update on its business. The dial-in number for the conference call is (866) 700-0133 for U.S. and Canadian participants and (617) 213-8831 for international participants. The participant passcode is 88495350. A live webcast of the call can be accessed on Chemed's website at  www.chemed.com  by clicking on Investor Relations Home.

A taped replay of the conference call will be available beginning approximately 24 hours after the call's conclusion. It can be accessed by dialing (888) 286-8010 for U.S. and Canadian callers and (617) 801-6888 for international callers and will be available for one week following the live call. The replay passcode is 32895198. An archived webcast will also be available at  www.chemed.com .

Chemed Corporation operates in the healthcare field through its VITAS Healthcare Corporation subsidiary. VITAS provides daily hospice services to approximately 14,000 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 and drain service through company-owned branches, independent contractors and franchisees in the United States and Canada. Roto-Rooter also has licensed master franchisees in Indonesia, Singapore, Japan, 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 STATEMENT OF INCOME	
(in thousands, except per share data)(unaudited)	

 	 	 	 	 	 	 	 	 	 	Three Months Ended	 	Nine Months Ended	
 	 	 	 	 	 	 	 	 	 	September 30,	 	September 30,	
 	 	 	 	 	 	 	 	 	 	2012	 	2011	 	2012	 	2011	
Service revenues and sales	 	$	354,353	 	 	$	341,439	 	 	$	1,061,466	 	 	$	1,005,717	 	
Cost of services provided and goods sold	 	 	256,610	 	 	 	245,063	 	 	 	771,423	 	 	 	722,118	 	
Selling, general and administrative expenses (aa)	 	 	52,955	 	 	 	47,618	 	 	 	155,892	 	 	 	153,696	 	
Depreciation	 	 	6,557	 	 	 	6,313	 	 	 	19,178	 	 	 	18,959	 	
Amortization	 	 	1,135	 	 	 	1,134	 	 	 	3,375	 	 	 	3,243	 	
Other operating expenses (bb)	 	 	1,126	 	 	 	-	 	 	 	1,126	 	 	 	-	 	
 	Total costs and expenses	 	 	318,383	 	 	 	300,128	 	 	 	950,994	 	 	 	898,016	 	
 	Income from operations	 	 	35,970	 	 	 	41,311	 	 	 	110,472	 	 	 	107,701	 	
Interest expense	 	 	(3,743	)	 	 	(3,555	)	 	 	(11,032	)	 	 	(10,260	)	
Other income/(expense)--net (cc)	 	 	1,840	 	 	 	(1,935	)	 	 	2,965	 	 	 	881	 	
 	Income before income taxes	 	 	34,067	 	 	 	35,821	 	 	 	102,405	 	 	 	98,322	 	
Income taxes	 	 	(13,222	)	 	 	(13,934	)	 	 	(39,841	)	 	 	(38,048	)	
Net income	 	$	20,845	 	 	$	21,887	 	 	$	62,564	 	 	$	60,274	 	

Earnings Per Share	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Net income	 	$	1.10	 	 	$	1.06	 	 	$	3.30	 	 	$	2.88	 	
 	Average number of shares outstanding	 	 	18,960	 	 	 	20,674	 	 	 	18,977	 	 	 	20,934	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted Earnings Per Share	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Net income	 	$	1.07	 	 	$	1.04	 	 	$	3.23	 	 	$	2.82	 	
 	Average number of shares outstanding	 	 	19,404	 	 	 	21,055	 	 	 	19,382	 	 	 	21,400	 	

(aa)	Selling, general and administrative ("SG&A") expenses comprise (in thousands):	
 	 	 	 	 	 	 	 	 	 	Three Months Ended September 30,	 	Nine Months Ended September 30,	
 	 	 	 	 	 	 	 	 	 	2012	 	2011	 	2012	 	2011	
 	 	SG&A expenses before long-term incentive compensation and the impact of market gains and losses of deferred compensation plans	 	$	51,379	 	 	$	49,629	 	 	$	153,131	 	 	$	149,888	 	
 	 	Market value gains/(losses) related to assets held in deferred compensation trusts	 	 	1,576	 	 	 	(2,011	)	 	 	2,761	 	 	 	796	 	
 	 	Long-term incentive compensation	 	 	-	 	 	 	-	 	 	 	-	 	 	 	3,012	 	
 	 	 	Total SG&A expenses	 	 	 	 	$	52,955	 	 	$	47,618	 	 	$	155,892	 	 	$	153,696	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(bb)	Other operating expenses comprise severance and other costs related to closing Roto-Rooter's HVAC business in the third quarter of 2012.	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(cc)	Other income/(expense)--net comprises (in thousands):	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	Three Months Ended September 30,	 	Nine Months Ended September 30,	
 	 	 	 	 	 	 	 	 	 	2012	 	2011	 	2012	 	2011	
 	 	Market value gains/(losses) related to assets held in deferred compensation trusts	 	$	1,576	 	 	$	(2,011	)	 	$	2,761	 	 	$	796	 	
 	 	Interest income	 	 	291	 	 	 	74	 	 	 	401	 	 	 	197	 	
 	 	Loss on disposal of property and equipment	 	 	(80	)	 	 	(79	)	 	 	(228	)	 	 	(68	)	
 	 	Other	 	 	53	 	 	 	81	 	 	 	31	 	 	 	(44	)	
 	 	 	Total other income--net	 	$	1,840	 	 	$	(1,935	)	 	$	2,965	 	 	$	881	 	

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

 	 	 	 	 	 	 	 	 	 	 	 	 	September 30,	
 	 	 	 	 	 	 	 	 	 	 	 	 	2012	 	2011	
Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Current assets	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Cash and cash equivalents	 	$	69,296	 	 	$	21,342	 	
 	 	Accounts receivable less allowances	 	 	101,152	 	 	 	112,721	 	
 	 	Inventories	 	 	7,639	 	 	 	8,888	 	
 	 	Current deferred income taxes	 	 	14,118	 	 	 	14,850	 	
 	 	Prepaid income taxes	 	 	3,044	 	 	 	764	 	
 	 	Prepaid expenses	 	 	9,855	 	 	 	10,031	 	
 	 	 	Total current assets	 	 	205,104	 	 	 	168,596	 	
 	Investments of deferred compensation plans held in trust	 	 	35,053	 	 	 	31,339	 	
 	Properties and equipment, at cost less accumulated depreciation	 	 	90,135	 	 	 	83,484	 	
 	Identifiable intangible assets less accumulated amortization	 	 	57,507	 	 	 	58,644	 	
 	Goodwill	 	 	465,861	 	 	 	460,747	 	
 	Other assets	 	 	11,127	 	 	 	12,246	 	
 	 	 	 	Total Assets	 	$	864,787	 	 	$	815,056	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Current liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Accounts payable	 	$	44,056	 	 	$	59,186	 	
 	 	Income taxes	 	 	1,496	 	 	 	8,267	 	
 	 	Accrued insurance	 	 	39,518	 	 	 	35,655	 	
 	 	Accrued compensation	 	 	44,117	 	 	 	40,376	 	
 	 	Other current liabilities	 	 	18,494	 	 	 	17,308	 	
 	 	 	Total current liabilities	 	 	147,681	 	 	 	160,792	 	
 	Deferred income taxes	 	 	24,264	 	 	 	23,262	 	
 	Long-term debt	 	 	172,812	 	 	 	164,841	 	
 	Deferred compensation liabilities	 	 	34,626	 	 	 	30,267	 	
 	Other liabilities	 	 	10,779	 	 	 	9,559	 	
 	 	 	 	Total Liabilities	 	 	390,162	 	 	 	388,721	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Stockholders' Equity	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Capital stock	 	 	31,451	 	 	 	30,913	 	
 	Paid-in capital	 	 	428,232	 	 	 	394,822	 	
 	Retained earnings	 	 	599,680	 	 	 	524,197	 	
 	Treasury stock, at cost	 	 	(586,744	)	 	 	(525,555	)	
 	Deferred compensation payable in Company stock	 	 	2,006	 	 	 	1,958	 	
 	 	 	 	Total Stockholders' Equity	 	 	474,625	 	 	 	426,335	 	
 	 	 	 	Total Liabilities and Stockholders' Equity	 	$	864,787	 	 	$	815,056	 	

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

 	 	 	 	 	 	 	 	 	 	 	 	 	Nine Months Ended September 30,	
 	 	 	 	 	 	 	 	 	 	 	 	 	2012	 	2011	
Cash Flows from Operating Activities	 	 	 	 	 	 	 	 	
 	Net income	 	$	62,564	 	 	$	60,274	 	
 	Adjustments to reconcile net income to net cash provided by operating activities:	 	 	 	 	 	 	
 	 	 	Depreciation and amortization	 	 	22,553	 	 	 	22,202	 	
 	 	 	Provision for uncollectible accounts receivable	 	 	7,303	 	 	 	6,640	 	
 	 	 	Provision for deferred income taxes	 	 	(6,808	)	 	 	(1,608	)	
 	 	 	Stock option expense	 	 	6,709	 	 	 	6,903	 	
 	 	 	Amortization of discount on convertible notes	 	 	6,028	 	 	 	5,633	 	
 	 	 	Noncash long-term incentive compensation	 	 	-	 	 	 	2,595	 	
 	 	 	Changes in operating assets and liabilities, excluding amounts acquired in business combinations:	 	 	 	 	 	 	
 	 	 	 	 	Increase in accounts receivable	 	 	(30,409	)	 	 	(5,991	)	
 	 	 	 	 	Decrease/(increase) in inventories	 	 	1,029	 	 	 	(1,160	)	
 	 	 	 	 	Decrease in prepaid expenses	 	 	1,554	 	 	 	254	 	
 	 	 	 	 	Increase in accounts payable and other current liabilities	 	 	4,454	 	 	 	2,654	 	
 	 	 	 	 	Increase in income taxes	 	 	1,292	 	 	 	12,253	 	
 	 	 	 	 	Increase in other assets	 	 	(3,944	)	 	 	(3,811	)	
 	 	 	 	 	Increase in other liabilities	 	 	6,648	 	 	 	3,567	 	
 	 	 	Excess tax benefit on share-based compensation	 	 	(2,714	)	 	 	(3,368	)	
 	 	 	Other sources	 	 	1,078	 	 	 	899	 	
 	 	 	 	Net cash provided by operating activities	 	 	77,337	 	 	 	107,936	 	
Cash Flows from Investing Activities	 	 	 	 	 	 	 	 	
 	Capital expenditures	 	 	(26,489	)	 	 	(23,459	)	
 	Business combinations, net of cash acquired	 	 	(5,900	)	 	 	(3,689	)	
 	Other uses	 	 	528	 	 	 	(829	)	
 	 	 	 	Net cash used by investing activities	 	 	(31,861	)	 	 	(27,977	)	
Cash Flows from Financing Activities	 	 	 	 	 	 	 	 	
 	Purchases of treasury stock	 	 	(15,047	)	 	 	(110,288	)	
 	Proceeds from issuance of capital stock	 	 	10,483	 	 	 	7,979	 	
 	Dividends paid	 	 	(9,641	)	 	 	(9,393	)	
 	Increase/(decrease) in cash overdrafts payable	 	 	(3,299	)	 	 	2,297	 	
 	Excess tax benefit on share-based compensation	 	 	2,714	 	 	 	3,368	 	
 	Debt issuances costs	 	 	-	 	 	 	(2,723	)	
 	Other sources	 	 	529	 	 	 	226	 	
 	 	 	 	Net cash used by financing activities	 	 	(14,261	)	 	 	(108,534	)	
Increase/(Decrease) in Cash and Cash Equivalents	 	 	31,215	 	 	 	(28,575	)	
Cash and cash equivalents at beginning of year	 	 	38,081	 	 	 	49,917	 	
Cash and cash equivalents at end of period	 	$	69,296	 	 	$	21,342	 	

CHEMED CORPORATION AND SUBSIDIARY COMPANIES	
CONSOLIDATING STATEMENT OF INCOME	
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011	
(in thousands)(unaudited)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Chemed	
 	 	 	 	 	 	 	VITAS	 	Roto-Rooter	 	Corporate	 	Consolidated	
 2012	 	 	 	 	 	 	 	 	 	 	 	 	
Service revenues and sales	 	$	267,990	 	 	$	86,363	 	 	$	-	 	 	$	354,353	 	
Cost of services provided and goods sold	 	 	208,473	 	 	 	48,137	 	 	 	-	 	 	 	256,610	 	
Selling, general and administrative expenses (a)	 	 	20,148	 	 	 	25,350	 	 	 	7,457	 	 	 	52,955	 	
Depreciation	 	 	4,333	 	 	 	2,093	 	 	 	131	 	 	 	6,557	 	
Amortization	 	 	489	 	 	 	160	 	 	 	486	 	 	 	1,135	 	
Other operating expenses (a)	 	 	-	 	 	 	1,126	 	 	 	-	 	 	 	1,126	 	
 	Total costs and expenses	 	 	233,443	 	 	 	76,866	 	 	 	8,074	 	 	 	318,383	 	
 	Income/(loss) from operations	 	 	34,547	 	 	 	9,497	 	 	 	(8,074	)	 	 	35,970	 	
Interest expense (a)	 	 	(62	)	 	 	(150	)	 	 	(3,531	)	 	 	(3,743	)	
Intercompany interest income/(expense)	 	 	795	 	 	 	396	 	 	 	(1,191	)	 	 	-	 	
Other income/(expense)—net	 	 	176	 	 	 	63	 	 	 	1,601	 	 	 	1,840	 	
 	Income/(loss) before income taxes	 	 	35,456	 	 	 	9,806	 	 	 	(11,195	)	 	 	34,067	 	
Income taxes (a)	 	 	(13,516	)	 	 	(3,661	)	 	 	3,955	 	 	 	(13,222	)	
 	Net income/(loss)	 	$	21,940	 	 	$	6,145	 	 	$	(7,240	)	 	$	20,845	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 2011	 	 	 	 	 	 	 	 	 	 	 	 	
Service revenues and sales	 	$	252,944	 	 	$	88,495	 	 	$	-	 	 	$	341,439	 	
Cost of services provided and goods sold	 	 	196,407	 	 	 	48,656	 	 	 	-	 	 	 	245,063	 	
Selling, general and administrative expenses (b)	 	 	18,945	 	 	 	25,057	 	 	 	3,616	 	 	 	47,618	 	
Depreciation	 	 	4,123	 	 	 	2,058	 	 	 	132	 	 	 	6,313	 	
Amortization	 	 	510	 	 	 	156	 	 	 	468	 	 	 	1,134	 	
 	Total costs and expenses	 	 	219,985	 	 	 	75,927	 	 	 	4,216	 	 	 	300,128	 	
 	Income/(loss) from operations	 	 	32,959	 	 	 	12,568	 	 	 	(4,216	)	 	 	41,311	 	
Interest expense (b)	 	 	(62	)	 	 	(132	)	 	 	(3,361	)	 	 	(3,555	)	
Intercompany interest income/(expense)	 	 	834	 	 	 	451	 	 	 	(1,285	)	 	 	-	 	
Other income/(expense)—net	 	 	62	 	 	 	(7	)	 	 	(1,990	)	 	 	(1,935	)	
 	Income/(loss) before income taxes	 	 	33,793	 	 	 	12,880	 	 	 	(10,852	)	 	 	35,821	 	
Income taxes (b)	 	 	(12,823	)	 	 	(4,864	)	 	 	3,753	 	 	 	(13,934	)	
 	Net income/(loss)	 	$	20,970	 	 	$	8,016	 	 	$	(7,099	)	 	$	21,887	 	
 	 	 	 	 	
The "Footnotes to Financial Statements" are integral parts of this financial information.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES	
CONSOLIDATING STATEMENT OF INCOME	
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011	
(in thousands)(unaudited)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Chemed	
 	 	 	 	 	 	 	VITAS	 	Roto-Rooter	 	Corporate	 	Consolidated	
 2012	 	 	 	 	 	 	 	 	 	 	 	 	
Service revenues and sales	 	$	794,050	 	 	$	267,416	 	 	$	-	 	 	$	1,061,466	 	
Cost of services provided and goods sold	 	 	621,933	 	 	 	149,490	 	 	 	-	 	 	 	771,423	 	
Selling, general and administrative expenses (a)	 	 	60,367	 	 	 	75,875	 	 	 	19,650	 	 	 	155,892	 	
Depreciation	 	 	12,521	 	 	 	6,264	 	 	 	393	 	 	 	19,178	 	
Amortization	 	 	1,467	 	 	 	471	 	 	 	1,437	 	 	 	3,375	 	
Other operating expenses (a)	 	 	-	 	 	 	1,126	 	 	 	-	 	 	 	1,126	 	
 	Total costs and expenses	 	 	696,288	 	 	 	233,226	 	 	 	21,480	 	 	 	950,994	 	
 	Income/(loss) from operations	 	 	97,762	 	 	 	34,190	 	 	 	(21,480	)	 	 	110,472	 	
Interest expense (a)	 	 	(188	)	 	 	(364	)	 	 	(10,480	)	 	 	(11,032	)	
Intercompany interest income/(expense)	 	 	2,361	 	 	 	1,221	 	 	 	(3,582	)	 	 	-	 	
Other income/(expense)—net	 	 	144	 	 	 	9	 	 	 	2,812	 	 	 	2,965	 	
 	Income/(loss) before income taxes	 	 	100,079	 	 	 	35,056	 	 	 	(32,730	)	 	 	102,405	 	
Income taxes (a)	 	 	(38,080	)	 	 	(13,341	)	 	 	11,580	 	 	 	(39,841	)	
 	Net income/(loss)	 	$	61,999	 	 	$	21,715	 	 	$	(21,150	)	 	$	62,564	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 2011	 	 	 	 	 	 	 	 	 	 	 	 	
Service revenues and sales	 	$	731,712	 	 	$	274,005	 	 	$	-	 	 	$	1,005,717	 	
Cost of services provided and goods sold	 	 	570,648	 	 	 	151,470	 	 	 	-	 	 	 	722,118	 	
Selling, general and administrative expenses (b)	 	 	57,392	 	 	 	76,181	 	 	 	20,123	 	 	 	153,696	 	
Depreciation	 	 	12,489	 	 	 	6,067	 	 	 	403	 	 	 	18,959	 	
Amortization	 	 	1,513	 	 	 	443	 	 	 	1,287	 	 	 	3,243	 	
 	Total costs and expenses	 	 	642,042	 	 	 	234,161	 	 	 	21,813	 	 	 	898,016	 	
 	Income/(loss) from operations	 	 	89,670	 	 	 	39,844	 	 	 	(21,813	)	 	 	107,701	 	
Interest expense (b)	 	 	(172	)	 	 	(274	)	 	 	(9,814	)	 	 	(10,260	)	
Intercompany interest income/(expense)	 	 	3,263	 	 	 	1,742	 	 	 	(5,005	)	 	 	-	 	
Other income/(expense)—net	 	 	3	 	 	 	(2	)	 	 	880	 	 	 	881	 	
 	Income/(loss) before income taxes	 	 	92,764	 	 	 	41,310	 	 	 	(35,752	)	 	 	98,322	 	
Income taxes (b)	 	 	(35,080	)	 	 	(15,692	)	 	 	12,724	 	 	 	(38,048	)	
 	Net income/(loss)	 	$	57,684	 	 	$	25,618	 	 	$	(23,028	)	 	$	60,274	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
The "Footnotes to Financial Statements" are integral parts of this financial information.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES	
CONSOLIDATING SUMMARY OF EBITDA	
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011	
(in thousands)(unaudited)	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Chemed	
 	 	 	 	 	 	 	 	VITAS	 	Roto-Rooter	 	Corporate	 	Consolidated	
 2012	 	 	 	 	 	 	 	 	 	 	 	 	
Net income/(loss)	 	$	21,940	 	 	$	6,145	 	 	$	(7,240	)	 	$	20,845	 	
Add/(deduct):	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Interest expense	 	 	62	 	 	 	150	 	 	 	3,531	 	 	 	3,743	 	
 	 	Income taxes	 	 	13,516	 	 	 	3,661	 	 	 	(3,955	)	 	 	13,222	 	
 	 	Depreciation	 	 	4,333	 	 	 	2,093	 	 	 	131	 	 	 	6,557	 	
 	 	Amortization	 	 	489	 	 	 	160	 	 	 	486	 	 	 	1,135	 	
 	 	 	EBITDA	 	 	40,340	 	 	 	12,209	 	 	 	(7,047	)	 	 	45,502	 	
Add/(deduct):	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Intercompany interest expense/(income)	 	 	(795	)	 	 	(396	)	 	 	1,191	 	 	 	-	 	
 	 	Interest income	 	 	(256	)	 	 	(12	)	 	 	(23	)	 	 	(291	)	
 	 	Legal expenses of OIG investigation	 	 	483	 	 	 	-	 	 	 	-	 	 	 	483	 	
 	 	Acquisition expenses	 	 	2	 	 	 	85	 	 	 	-	 	 	 	87	 	
 	 	Cost to shut down HVAC operations	 	 	-	 	 	 	1,126	 	 	 	-	 	 	 	1,126	 	
 	 	Advertising cost adjustment (c)	 	 	-	 	 	 	(468	)	 	 	-	 	 	 	(468	)	
 	 	Expenses of class action litigation	 	 	-	 	 	 	116	 	 	 	-	 	 	 	116	 	
 	 	Stock option expense	 	 	-	 	 	 	-	 	 	 	2,397	 	 	 	2,397	 	
 	 	Expenses of securities litigation	 	 	-	 	 	 	-	 	 	 	68	 	 	 	68	 	
 	 	 	Adjusted EBITDA	 	$	39,774	 	 	$	12,660	 	 	$	(3,414	)	 	$	49,020	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 2011	 	 	 	 	 	 	 	 	 	 	 	 	
Net income/(loss)	 	$	20,970	 	 	$	8,016	 	 	$	(7,099	)	 	$	21,887	 	
Add/(deduct):	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Interest expense	 	 	62	 	 	 	132	 	 	 	3,361	 	 	 	3,555	 	
 	 	Income taxes	 	 	12,823	 	 	 	4,864	 	 	 	(3,753	)	 	 	13,934	 	
 	 	Depreciation	 	 	4,123	 	 	 	2,058	 	 	 	132	 	 	 	6,313	 	
 	 	Amortization	 	 	510	 	 	 	156	 	 	 	468	 	 	 	1,134	 	
 	 	 	EBITDA	 	 	38,488	 	 	 	15,226	 	 	 	(6,891	)	 	 	46,823	 	
Add/(deduct):	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Intercompany interest expense/(income)	 	 	(834	)	 	 	(451	)	 	 	1,285	 	 	 	-	 	
 	 	Interest income	 	 	(43	)	 	 	(12	)	 	 	(19	)	 	 	(74	)	
 	 	Legal expenses of OIG investigation	 	 	212	 	 	 	-	 	 	 	-	 	 	 	212	 	
 	 	Acquisition expenses	 	 	2	 	 	 	-	 	 	 	-	 	 	 	2	 	
 	 	Advertising cost adjustment (c)	 	 	-	 	 	 	(585	)	 	 	-	 	 	 	(585	)	
 	 	Expenses of class action litigation	 	 	-	 	 	 	770	 	 	 	-	 	 	 	770	 	
 	 	Stock option expense	 	 	-	 	 	 	-	 	 	 	2,408	 	 	 	2,408	 	
 	 	 	Adjusted EBITDA	 	$	37,825	 	 	$	14,948	 	 	$	(3,217	)	 	$	49,556	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
The "Footnotes to Financial Statements" are integral parts of this financial information.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES	
CONSOLIDATING SUMMARY OF EBITDA	
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011	
(in thousands)(unaudited)	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Chemed	
 	 	 	 	 	 	 	VITAS	 	Roto-Rooter	 	Corporate	 	Consolidated	
 2012	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income/(loss)	 	 	$	61,999	 	 	$	21,715	 	 	$	(21,150	)	 	$	62,564	 	
Add/(deduct):	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Interest expense	 	 	 	188	 	 	 	364	 	 	 	10,480	 	 	 	11,032	 	
 	 	Income taxes	 	 	 	38,080	 	 	 	13,341	 	 	 	(11,580	)	 	 	39,841	 	
 	 	Depreciation	 	 	 	12,521	 	 	 	6,264	 	 	 	393	 	 	 	19,178	 	
 	 	Amortization	 	 	 	1,467	 	 	 	471	 	 	 	1,437	 	 	 	3,375	 	
 	 	 	EBITDA	 	 	 	114,255	 	 	 	42,155	 	 	 	(20,420	)	 	 	135,990	 	
Add/(deduct):	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Intercompany interest expense/(income)	 	 	 	(2,361	)	 	 	(1,221	)	 	 	3,582	 	 	 	-	 	
 	 	Interest income	 	 	 	(328	)	 	 	(22	)	 	 	(51	)	 	 	(401	)	
 	 	Legal expenses of OIG investigation	 	 	 	749	 	 	 	-	 	 	 	-	 	 	 	749	 	
 	 	Acquisition expenses	 	 	 	2	 	 	 	120	 	 	 	-	 	 	 	122	 	
 	 	Cost to shut down HVAC operations	 	 	 	-	 	 	 	1,126	 	 	 	-	 	 	 	1,126	 	
 	 	Expenses of class action litigation	 	 	 	-	 	 	 	843	 	 	 	-	 	 	 	843	 	
 	 	Advertising cost adjustment (c)	 	 	 	-	 	 	 	(1,870	)	 	 	-	 	 	 	(1,870	)	
 	 	Stock option expense	 	 	 	-	 	 	 	-	 	 	 	6,709	 	 	 	6,709	 	
 	 	Expenses of securities litigation	 	 	 	-	 	 	 	-	 	 	 	265	 	 	 	265	 	
 	 	 	Adjusted EBITDA	 	 	$	112,317	 	 	$	41,131	 	 	$	(9,915	)	 	$	143,533	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 2011	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income/(loss)	 	 	$	57,684	 	 	$	25,618	 	 	$	(23,028	)	 	$	60,274	 	
Add/(deduct):	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Interest expense	 	 	 	172	 	 	 	274	 	 	 	9,814	 	 	 	10,260	 	
 	 	Income taxes	 	 	 	35,080	 	 	 	15,692	 	 	 	(12,724	)	 	 	38,048	 	
 	 	Depreciation	 	 	 	12,489	 	 	 	6,067	 	 	 	403	 	 	 	18,959	 	
 	 	Amortization	 	 	 	1,513	 	 	 	443	 	 	 	1,287	 	 	 	3,243	 	
 	 	 	EBITDA	 	 	 	106,938	 	 	 	48,094	 	 	 	(24,248	)	 	 	130,784	 	
Add/(deduct):	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Intercompany interest expense/(income)	 	 	 	(3,263	)	 	 	(1,742	)	 	 	5,005	 	 	 	-	 	
 	 	Interest income	 	 	 	(86	)	 	 	(28	)	 	 	(83	)	 	 	(197	)	
 	 	Legal expenses of OIG investigation	 	 	 	1,209	 	 	 	-	 	 	 	-	 	 	 	1,209	 	
 	 	Acquisition expenses	 	 	 	117	 	 	 	(6	)	 	 	-	 	 	 	111	 	
 	 	Expenses of class action litigation	 	 	 	-	 	 	 	1,451	 	 	 	-	 	 	 	1,451	 	
 	 	Advertising cost adjustment (c)	 	 	 	-	 	 	 	(1,442	)	 	 	-	 	 	 	(1,442	)	
 	 	Stock option expense	 	 	 	-	 	 	 	-	 	 	 	6,903	 	 	 	6,903	 	
 	 	Long-term incentive compensation	 	 	 	-	 	 	 	-	 	 	 	3,012	 	 	 	3,012	 	
 	 	 	Adjusted EBITDA	 	 	$	104,915	 	 	$	46,327	 	 	$	(9,411	)	 	$	141,831	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
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	 	Nine Months Ended	
 	 	 	 	 	 	 	 	September 30,	 	September 30,	
 	 	 	 	 	 	 	 	2012	 	2011	 	2012	 	2011	
Net income as reported	 	$	20,845	 	$	21,887	 	$	62,564	 	$	60,274	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Add/(deduct) impact of:	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	After-tax stock option expense	 	 	1,516	 	 	1,523	 	 	4,243	 	 	4,366	
 	 	After-tax additional interest expense resulting from the change in accounting for the conversion feature of the convertible notes	 	 	1,272	 	 	1,177	 	 	3,744	 	 	3,464	
 	 	After-tax cost to shut down HVAC operations	 	 	649	 	 	-	 	 	649	 	 	-	
 	 	After-tax cost of legal expenses of OIG investigation	 	 	300	 	 	131	 	 	465	 	 	749	
 	 	After-tax cost of expenses of class action litigation	 	 	70	 	 	467	 	 	512	 	 	881	
 	 	After-tax cost of acquisition expenses	 	 	53	 	 	2	 	 	74	 	 	69	
 	 	After-tax cost of securities litigation	 	 	44	 	 	-	 	 	168	 	 	-	
 	 	After-tax long-term incentive compensation	 	 	-	 	 	-	 	 	-	 	 	1,880	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted net income	 	$	24,749	 	$	25,187	 	$	72,419	 	$	71,683	

Earnings Per Share As Reported	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Net income	 	$	1.10	 	$	1.06	 	$	3.30	 	$	2.88	
 	 	Average number of shares outstanding	 	 	18,960	 	 	20,674	 	 	18,977	 	 	20,934	
Diluted Earnings Per Share As Reported	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Net income	 	$	1.07	 	$	1.04	 	$	3.23	 	$	2.82	
 	 	Average number of shares outstanding	 	 	19,404	 	 	21,055	 	 	19,382	 	 	21,400	

Adjusted Earnings Per Share	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Net income	 	$	1.31	 	$	1.22	 	$	3.82	 	$	3.42	
 	 	Average number of shares outstanding	 	 	18,960	 	 	20,674	 	 	18,977	 	 	20,934	
Adjusted Diluted Earnings Per Share	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Net income	 	$	1.28	 	$	1.20	 	$	3.74	 	$	3.35	
 	 	Average number of shares outstanding	 	 	19,404	 	 	21,055	 	 	19,382	 	 	21,400	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
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	 	 	Nine Months Ended	 	
 	 	 	 	 	 	 	September 30,	 	 	September 30,	 	
OPERATING STATISTICS	 	2012	 	 	2011	 	 	2012	 	 	2011	 	
 	Net revenue ($000) (d)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Homecare	 	$	197,764	 	 	$	184,155	 	 	$	577,511	 	 	$	529,874	 	
 	 	Inpatient	 	 	28,082	 	 	 	28,292	 	 	 	86,481	 	 	 	82,861	 	
 	 	Continuous care	 	 	42,144	 	 	 	40,113	 	 	 	127,481	 	 	 	117,950	 	
 	 	 	Total before Medicare cap allowance	 	$	267,990	 	 	$	252,560	 	 	$	791,473	 	 	$	730,685	 	
 	 	Medicare cap allowance	 	 	-	 	 	 	384	 	 	 	2,577	 	 	 	1,027	 	
 	 	 	Total	 	$	267,990	 	 	$	252,944	 	 	$	794,050	 	 	$	731,712	 	
 	Net revenue as a percent of total before Medicare cap allowance	 	 	 	 	 	 	 	 	
 	 	Homecare	 	 	73.8	%	 	 	72.9	%	 	 	73.0	%	 	 	72.5	%	
 	 	Inpatient	 	 	10.5	 	 	 	11.2	 	 	 	10.9	 	 	 	11.3	 	
 	 	Continuous care	 	 	15.7	 	 	 	15.9	 	 	 	16.1	 	 	 	16.2	 	
 	 	 	Total before Medicare cap allowance	 	 	100.0	 	 	 	100.0	 	 	 	100.0	 	 	 	100.0	 	
 	 	Medicare cap allowance	 	 	-	 	 	 	0.2	 	 	 	0.3	 	 	 	0.1	 	
 	 	 	Total	 	 	100.0	%	 	 	100.2	%	 	 	100.3	%	 	 	100.1	%	
 	Average daily census ("ADC") (days)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Homecare	 	 	10,123	 	 	 	9,485	 	 	 	9,904	 	 	 	9,185	 	
 	 	Nursing home	 	 	3,073	 	 	 	3,118	 	 	 	3,031	 	 	 	3,062	 	
 	 	 	Routine homecare	 	 	13,196	 	 	 	12,603	 	 	 	12,935	 	 	 	12,247	 	
 	 	Inpatient	 	 	460	 	 	 	456	 	 	 	466	 	 	 	451	 	
 	 	Continuous care	 	 	621	 	 	 	599	 	 	 	630	 	 	 	601	 	
 	 	 	Total	 	 	14,277	 	 	 	13,658	 	 	 	14,031	 	 	 	13,299	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Total Admissions	 	 	15,539	 	 	 	14,879	 	 	 	47,773	 	 	 	45,971	 	
 	Total Discharges	 	 	15,340	 	 	 	14,682	 	 	 	47,064	 	 	 	45,104	 	
 	Average length of stay (days)	 	 	78.5	 	 	 	80.1	 	 	 	78.3	 	 	 	78.7	 	
 	Median length of stay (days)	 	 	15.0	 	 	 	15.0	 	 	 	15.0	 	 	 	14.0	 	
 	ADC by major diagnosis	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Neurological	 	 	33.9	%	 	 	34.3	%	 	 	34.1	%	 	 	34.4	%	
 	 	Cancer	 	 	17.3	 	 	 	17.5	 	 	 	17.6	 	 	 	17.7	 	
 	 	Cardio	 	 	11.2	 	 	 	11.3	 	 	 	11.4	 	 	 	11.6	 	
 	 	Respiratory	 	 	6.7	 	 	 	6.6	 	 	 	6.7	 	 	 	6.8	 	
 	 	Other	 	 	30.9	 	 	 	30.3	 	 	 	30.2	 	 	 	29.5	 	
 	 	 	Total	 	 	100.0	%	 	 	100.0	%	 	 	100.0	%	 	 	100.0	%	
 	Admissions by major diagnosis	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Neurological	 	 	19.3	%	 	 	19.0	%	 	 	19.3	%	 	 	19.3	%	
 	 	Cancer	 	 	34.0	 	 	 	34.7	 	 	 	33.3	 	 	 	33.1	 	
 	 	Cardio	 	 	10.5	 	 	 	10.4	 	 	 	11.1	 	 	 	10.9	 	
 	 	Respiratory	 	 	7.4	 	 	 	7.8	 	 	 	8.1	 	 	 	8.5	 	
 	 	Other	 	 	28.8	 	 	 	28.1	 	 	 	28.2	 	 	 	28.2	 	
 	 	 	Total	 	 	100.0	%	 	 	100.0	%	 	 	100.0	%	 	 	100.0	%	
 	Direct patient care margins (e)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Routine homecare	 	 	52.5	%	 	 	52.4	%	 	 	51.8	%	 	 	52.0	%	
 	 	Inpatient	 	 	9.2	 	 	 	12.4	 	 	 	12.0	 	 	 	12.9	 	
 	 	Continuous care	 	 	19.0	 	 	 	20.7	 	 	 	19.6	 	 	 	20.5	 	
 	Homecare margin drivers (dollars per patient day)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Labor costs	 	$	54.69	 	 	$	53.13	 	 	$	55.64	 	 	$	53.88	 	
 	 	Drug costs	 	 	8.11	 	 	 	8.26	 	 	 	8.25	 	 	 	8.14	 	
 	 	Home medical equipment	 	 	7.03	 	 	 	6.64	 	 	 	6.88	 	 	 	6.65	 	
 	 	Medical supplies	 	 	2.77	 	 	 	2.81	 	 	 	2.77	 	 	 	2.80	 	
 	Inpatient margin drivers (dollars per patient day)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Labor costs	 	$	326.95	 	 	$	312.72	 	 	$	320.79	 	 	$	310.25	 	
 	Continuous care margin drivers (dollars per patient day)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Labor costs	 	$	575.21	 	 	$	555.63	 	 	$	571.56	 	 	$	550.09	 	
 	Bad debt expense as a percent of revenues	 	 	0.8	%	 	 	0.8	%	 	 	0.8	%	 	 	0.7	%	
 	Accounts receivable --	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Days of revenue outstanding- excluding unapplied Medicare payments	 	 	35.4	 	 	 	38.9	 	 	 	n.a.	 	 	 	n.a.	 	
 	Days of revenue outstanding- including unapplied Medicare payments	 	 	27.9	 	 	 	34.6	 	 	 	n.a.	 	 	 	n.a.	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
The "Footnotes to Financial Statements" are integral parts of this financial information.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES	
FOOTNOTES TO FINANCIAL STATEMENTS	
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011	
(unaudited)	

(a)	Included in the results of operations 2012 are the following significant credits/(charges) which may not be indicative of ongoing operations	
 	(in thousands):	
 	 	 	 	 	 	 	 	 	 	Three Months Ended September 30, 2012	
 	 	 	 	 	 	 	 	 	 	VITAS	 	Roto-Rooter	 	Corporate	 	Consolidated	
 	Selling, general and administrative expenses:	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Legal expenses of OIG investigation	 	$	(483	)	 	$	-	 	 	$	-	 	 	$	(483	)	
 	 	Acquisition expenses	 	 	(2	)	 	 	(85	)	 	 	-	 	 	 	(87	)	
 	 	Expenses of class action litigation	 	 	-	 	 	 	(116	)	 	 	-	 	 	 	(116	)	
 	 	Stock option expense	 	 	-	 	 	 	-	 	 	 	(2,397	)	 	 	(2,397	)	
 	 	Expenses of securities litigation	 	 	-	 	 	 	-	 	 	 	(68	)	 	 	(68	)	
 	Other operating expenses	 	 	-	 	 	 	(1,126	)	 	 	-	 	 	 	(1,126	)	
 	Interest expense:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Additional interest expense resulting from the change in accounting for the conversion feature of the convertible notes	 	 	-	 	 	 	-	 	 	 	(2,011	)	 	 	(2,011	)	
 	 	 	Pretax impact on earnings	 	 	(485	)	 	 	(1,327	)	 	 	(4,476	)	 	 	(6,288	)	
 	Income tax benefit on the above	 	 	184	 	 	 	556	 	 	 	1,644	 	 	 	2,384	 	
 	 	 	After-tax impact on earnings	 	$	(301	)	 	$	(771	)	 	$	(2,832	)	 	$	(3,904	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	Nine Months Ended September 30, 2012	
 	 	 	 	 	 	 	 	 	 	VITAS	 	Roto-Rooter	 	Corporate	 	Consolidated	
 	Selling, general and administrative expenses:	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Legal expenses of OIG investigation	 	$	(749	)	 	$	-	 	 	$	-	 	 	$	(749	)	
 	 	Acquisition expenses	 	 	(2	)	 	 	(120	)	 	 	-	 	 	 	(122	)	
 	 	Expenses of class action litigation	 	 	-	 	 	 	(843	)	 	 	-	 	 	 	(843	)	
 	 	Stock option expense	 	 	-	 	 	 	-	 	 	 	(6,709	)	 	 	(6,709	)	
 	 	Expenses of securities litigation	 	 	-	 	 	 	-	 	 	 	(265	)	 	 	(265	)	
 	Other operating expenses	 	 	-	 	 	 	(1,126	)	 	 	-	 	 	 	(1,126	)	
 	Interest expense:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Additional interest expense resulting from the change in accounting for the conversion feature of the convertible notes	 	 	-	 	 	 	-	 	 	 	(5,919	)	 	 	(5,919	)	
 	 	 	Pretax impact on earnings	 	 	(751	)	 	 	(2,089	)	 	 	(12,893	)	 	 	(15,733	)	
 	Income tax benefit on the above	 	 	285	 	 	 	855	 	 	 	4,738	 	 	 	5,878	 	
 	 	 	After-tax impact on earnings	 	$	(466	)	 	$	(1,234	)	 	$	(8,155	)	 	$	(9,855	)	

(b)	Included in the results of operations 2011 are the following significant credits/(charges) which may not be indicative of ongoing operations	
 	(in thousands):	
 	 	 	 	 	 	 	 	 	 	Three Months Ended September 30, 2011	
 	 	 	 	 	 	 	 	 	 	VITAS	 	Roto-Rooter	 	Corporate	 	Consolidated	
 	Selling, general and administrative expenses:	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Legal expenses of OIG investigation	 	$	(212	)	 	$	-	 	 	$	-	 	 	$	(212	)	
 	 	Acquisition expenses	 	 	(2	)	 	 	-	 	 	 	-	 	 	 	(2	)	
 	 	Expenses of class action litigation	 	 	-	 	 	 	(770	)	 	 	-	 	 	 	(770	)	
 	 	Stock option expense	 	 	-	 	 	 	-	 	 	 	(2,408	)	 	 	(2,408	)	
 	Interest expense:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Additional interest expense resulting from the change in accounting for the conversion feature of the convertible notes	 	 	-	 	 	 	-	 	 	 	(1,861	)	 	 	(1,861	)	
 	 	 	Pretax impact on earnings	 	 	(214	)	 	 	(770	)	 	 	(4,269	)	 	 	(5,253	)	
 	Income tax benefit on the above	 	 	81	 	 	 	303	 	 	 	1,569	 	 	 	1,953	 	
 	 	 	After-tax impact on earnings	 	$	(133	)	 	$	(467	)	 	$	(2,700	)	 	$	(3,300	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	Nine Months Ended September 30, 2011	
 	 	 	 	 	 	 	 	 	 	VITAS	 	Roto-Rooter	 	Corporate	 	Consolidated	
 	Selling, general and administrative expenses:	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Legal expenses of OIG investigation	 	$	(1,209	)	 	$	-	 	 	$	-	 	 	$	(1,209	)	
 	 	Acquisition expenses	 	 	(117	)	 	 	6	 	 	 	-	 	 	 	(111	)	
 	 	Expenses of class action litigation	 	 	-	 	 	 	(1,451	)	 	 	-	 	 	 	(1,451	)	
 	 	Stock option expense	 	 	-	 	 	 	-	 	 	 	(6,903	)	 	 	(6,903	)	
 	 	Long-term incentive compensation	 	 	-	 	 	 	-	 	 	 	(3,012	)	 	 	(3,012	)	
 	Interest expense:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	Additional interest expense resulting from the change in accounting for the conversion feature of the convertible notes	 	 	-	 	 	 	-	 	 	 	(5,476	)	 	 	(5,476	)	
 	 	 	Pretax impact on earnings	 	 	(1,326	)	 	 	(1,445	)	 	 	(15,391	)	 	 	(18,162	)	
 	Income tax benefit on the above	 	 	504	 	 	 	568	 	 	 	5,681	 	 	 	6,753	 	
 	 	 	After-tax impact on earnings	 	$	(822	)	 	$	(877	)	 	$	(9,710	)	 	$	(11,409	)	

(c)	 	Under Generally Accepted Accounting Principles ("GAAP"), the Roto-Rooter segment expenses all advertising, including the cost of telephone directories, immediately upon the initial release of the advertising. Telephone directories are generally in circulation 12 months. If a directory is in circulation for a time period greater or less than 12 months, the publisher adjusts the directory billing for the change in billing period. The timing of when a telephone directory is published can and does fluctuate significantly on a quarterly basis. This "direct expensing" results in significant fluctuations in quarterly advertising expense. In the third quarters of 2012 and 2011, GAAP advertising expense for Roto-Rooter totaled $5,784,000 and $5,239,000, respectively. If the expense of the telephone directories were spread over the periods they are in circulation, advertising expense for the third quarters of 2012 and 2011 would total $6,252,000 and $5,824,000, respectively.	
 	 	 	
 	 	Similarly, for the first nine months of 2012 and 2011, GAAP advertising expense for Roto-Rooter totaled $16,678,000 and $16,461,00, respectively. If the expense of the telephone directories were spread over the periods they are in circulation, advertising expense for the first nine months of 2012 and 2011 would total $18,548,000 and $17,903,000, respectively.	
 	 	 	
(d)	 	VITAS has 8 large (greater than 450 ADC), 16 medium (greater than 200 but less than 450 ADC) and 27 small (less than 200 ADC) hospice programs. For the current Medicare cap year there are no programs with a cap liability and six programs with Medicare cap cushion of less than 10%.	
 	 	 	
(e)	 	Amounts exclude indirect patient care and administrative costs, as well as Medicare Cap billing limitation.	

CONTACT:
Chemed Corporation
David P. Williams, 513-762-6901