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

Rhea-AI Summary

Chemed Corporation (NYSE:CHE) has authorized an additional $300 million for stock repurchase under its existing program, funded by operational cash and a revolving credit facility. This move aims to enhance shareholder value by reducing the number of outstanding shares, potentially leading to an increase in earnings per share (EPS). Chemed is known for its subsidiaries VITAS Healthcare, the largest hospice care provider, and Roto-Rooter, a leading plumbing service.

Positive

• Authorization of an additional $300 million for stock repurchase enhances shareholder value.
• Funding through operational cash and credit facility indicates financial stability.

Negative

• None.

CINCINNATI--(BUSINESS WIRE)-- 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/20211108006008/en/

David P. Williams

(513) 762-6901

Source: Chemed Corporation

FAQ

What is the significance of Chemed Corporation's $300 million stock repurchase announcement?

The $300 million stock repurchase is aimed at enhancing shareholder value by reducing the number of outstanding shares, which could positively impact the earnings per share (EPS).

How will Chemed Corporation fund the stock repurchase?

The stock repurchase will be funded through a combination of cash generated from operations and utilization of its revolving credit facility.

What effect could the stock buyback have on Chemed’s stock price?

The stock buyback could lead to an increase in stock price by reducing the number of shares available in the market, thereby enhancing earnings per share.