Chemed Corporation’s Board of Directors Authorizes an Additional $300 Million for Stock Repurchase

Rhea-AI Summary

Chemed Corporation (NYSE:CHE) has announced a $300 million increase in its existing stock repurchase program, signaling strong confidence in its financial position. The repurchases will be funded through operational cash and a revolving credit facility, emphasizing Chemed's commitment to enhancing shareholder value. As a leader in hospice care and plumbing services via its subsidiaries, VITAS Healthcare and Roto-Rooter, this move is expected to positively impact earnings per share (EPS) and reflect robust operational cash flow.

Positive

• Authorization of an additional $300 million for stock repurchase.
• Funding through operational cash indicates strong cash flow.
• Increased EPS anticipated from the buyback program.

Negative

• None.

Chemed Corporation (NYSE:CHE) announced today that the Board of Directors has formally authorized an additional $300 million for stock repurchase under Chemed’s existing share repurchase program. These share repurchases will be funded through a combination of cash generated from operations as well as utilization of its revolving credit facility.

Listed on the New York Stock Exchange and headquartered in Cincinnati, Ohio, Chemed Corporation (www.chemed.com) operates two wholly owned subsidiaries: VITAS Healthcare and Roto-Rooter. VITAS is the nation’s largest provider of end-of-life hospice care and Roto-Rooter is the nation’s leading provider of plumbing and drain cleaning services.

Statements in this press release or in other Chemed communications may relate to future events or Chemed’s future performance. Such statements are forward-looking statements and are based on present information Chemed has related to its existing business circumstances. Investors are cautioned that such forward-looking statements are subject to inherent risk that actual results may differ materially from such forward-looking statements. Further, investors are cautioned that Chemed does not assume any obligation to update forward-looking statements based on unanticipated events or changed expectations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210518005138/en/

FAQ

What is the recent stock repurchase announcement by Chemed Corporation?

Chemed Corporation announced a $300 million increase to its stock repurchase program.

How will Chemed fund the stock buyback?

The stock buyback will be funded through cash generated from operations and a revolving credit facility.

What are the expected effects of the stock repurchase on CHE's stock price?

The buyback is expected to enhance shareholder value and potentially increase the stock price by improving EPS.

When was the stock repurchase program authorized?

The authorization for the additional stock repurchase was announced today.