Chemed Reports First-Quarter 2022 Results

Rhea-AI Summary

Chemed Corporation (NYSE: CHE) reported Q1 2022 financial results, revealing a 0.6% revenue increase to $531 million. GAAP Diluted EPS rose 5.2% to $4.22, while Adjusted Diluted EPS increased 7.9% to $4.79. However, VITAS Healthcare's revenue declined 5.3% to $299 million, with significant drops in admissions and patient revenue. Conversely, Roto-Rooter experienced a 9.4% revenue growth to $231 million, contributing positively to overall performance. Chemed also repurchased shares valued at $27.4 million.

Positive

• Overall revenue increased 0.6% to $531 million.
• GAAP Diluted EPS rose 5.2% to $4.22.
• Adjusted Diluted EPS increased 7.9% to $4.79.
• Roto-Rooter segment revenue grew 9.4% to $231 million.
• Roto-Rooter adjusted EBITDA rose 15.9%.

Negative

• VITAS Healthcare's revenue declined 5.3% to $299 million.
• Average Daily Census decreased 4.1%.
• Admissions dropped by 8.9%.
• Net income for VITAS excluding discrete items fell 12.6%.
• Adjusted EBITDA for VITAS declined 9.8%.

CINCINNATI--(BUSINESS WIRE)-- 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 first quarter ended March 31, 2022, versus the comparable prior-year period, as follows:

Consolidated operating results:

• Revenue increased 0.6% to $531 million
• GAAP Diluted Earnings-per-Share (EPS) of $4.22, an increase of 5.2%
• Adjusted Diluted EPS of $4.79, an increase of 7.9%

VITAS segment operating results:

• Net Patient Revenue of $299 million, a decline of 5.3%
• Average Daily Census (ADC) of 17,313, a decline of 4.1%
• Admissions of 16,530, a decline of 8.9%
• Net Income, excluding certain discrete items, of $36.8 million, a decline of 12.6%
• Adjusted EBITDA, excluding Medicare Cap, of $52.5 million, a decline of 9.8%
• Adjusted EBITDA margin, excluding Medicare Cap, of 17.4%, a decrease of 95-basis points

Roto-Rooter segment operating results:

• Revenue of $231 million, an increase of 9.4%
• Net Income, excluding certain discrete items, of $46.4 million, an increase of 18.0%
• Adjusted EBITDA of $65.9 million, an increase of 15.9%
• Adjusted EBITDA margin of 28.5%, an increase of 160-basis points

VITAS

VITAS net revenue was $299 million in the first quarter of 2022, which is a decline of 5.3%, when compared to the prior-year period. This revenue decline is comprised primarily of a 4.1% decline in days-of-care partially offset by a geographically weighted average Medicare reimbursement rate increase of approximately 1.3%. Acuity mix shift had a net impact of reducing revenue approximately $7.1 million, or 2.2%, 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 increased this revenue decline by approximately 30-basis points.

In the first quarter of 2022, VITAS accrued $2.5 million in Medicare Cap billing limitations. This compares to $1.5 million in Medicare Cap billing limitation in the first quarter of 2021.

Of VITAS’ 30 Medicare provider numbers, 28 provider numbers have a Medicare Cap cushion of 10% or greater and two provider numbers have an estimated fiscal 2022 Medicare Cap billing limitation liability.

Average revenue per patient per day in the first quarter of 2022 was $196.89, which, including acuity mix shift, is 104-basis points below the prior-year period. Reimbursement for routine home care and high acuity care averaged $172.33 and $1,010.49, respectively. During the quarter, high acuity days-of-care were 2.9% of total days of care, 58-basis points less than the prior-year quarter.

The first quarter 2022 gross margin, excluding Medicare Cap and increased costs directly related to operating during the pandemic, was 24.8%. This is a 50-basis point margin decline when compared to the first quarter of 2021.

Selling, general and administrative expense, excluding increased costs directly related to operating during the pandemic, was $22.5 million in the first quarter of 2022 and compares to $22.0 million incurred in the prior-year quarter. Adjusted EBITDA, excluding Medicare Cap, totaled $52.5 million in the quarter, a decrease of 9.8%. Adjusted EBITDA margin in the quarter, excluding Medicare Cap, was 17.4%, which is 95-basis points below the prior-year period.

Roto-Rooter

Roto-Rooter generated quarterly revenue of $231 million in the first quarter of 2022, an increase of $19.8 million, or 9.4%, when compared to the prior-year quarter.

Roto-Rooter branch commercial revenue in the quarter totaled $54.4 million, an increase of $6.9 million, or 14.4%, over the prior year. This aggregate commercial revenue growth consisted of drain cleaning revenue increasing 17.0%, plumbing increasing 17.1%, water restoration increasing 8.6%, and excavation increasing 7.1%.

Roto-Rooter branch residential revenue in the quarter totaled $157 million, an increase of $10.5 million, or 7.2%, over the prior-year period. This aggregate residential revenue growth consisted of drain cleaning increasing 3.1%, plumbing expanding 14.6%, excavation increasing 5.9%, and water restoration increasing 7.7%.

Roto-Rooter’s gross margin in the quarter, excluding the impact from COVID, was 52.8%, an 87-basis point increase when compared to the first quarter of 2021. Adjusted EBITDA in the first quarter of 2022 totaled $65.9 million, an increase of 15.9%. The Adjusted EBITDA margin in the quarter was 28.5%, which is a 160-basis point improvement when compared to the prior year.

Chemed Consolidated

As of March 31, 2022, Chemed had total cash and cash equivalents of $18.2 million and $120 million of long-term debt.

In June 2018, Chemed entered into a five-year Amended and Restated Credit Agreement that consists of a $450 million revolving credit facility. The interest rate on this facility has a floating rate that is currently LIBOR plus 100-basis points. At March 31, 2022, the Company had approximately $284 million of undrawn borrowing capacity under this credit agreement.

During the quarter, the Company repurchased 57,500 shares of Chemed stock for $27.4 million which equates to a cost per share of $475.71. As of March 31, 2022, there was approximately $175 million of remaining share repurchase authorization under this plan.

Chemed restarted its share repurchase program in 2007. Since that time, Chemed has repurchased approximately 15.8 million shares, aggregating approximately $2.0 billion at an average share cost of $126.42. Including dividends over this period, Chemed has returned approximately $2.2 billion to shareholders.

Guidance for 2022

Management anticipates providing updated 2022 earnings guidance as part of the June 30, 2022, earnings press release.

Conference Call

Chemed will host a conference call and webcast at 10 a.m., ET, on Wednesday, April 27, 2022, to discuss the Company's quarterly results and to provide an update on its business. The dial-in number for the conference call is (844) 743-2500 for U.S. and Canadian participants and +1 (661) 378-9533 for international participants. The Conference ID is 1869526. 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 (855) 859-2056 for U.S. and Canadian callers and +1 (404) 537-3406 for international callers and will be available for one week following the live call. The replay Conference ID is 1869526. 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 17,300 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 March 31,
		2022				2021
Service revenues and sales		$	530,549			$	527,360
Cost of services provided and goods sold			336,552				340,473
Selling, general and administrative expenses (aa)			89,954				91,599
Depreciation			12,138				11,715
Amortization			2,518				2,510
Other operating expense			13				622
Total costs and expenses			441,175				446,919
Income from operations			89,374				80,441
Interest expense			(810	)			(381	)
Other (expense)/income--net (bb)			(3,862	)			3,602
Income before income taxes			84,702				83,662
Income taxes			(20,533	)			(18,262	)
Net income		$	64,169			$	65,400
Earnings Per Share
Net income		$	4.28			$	4.08
Average number of shares outstanding			14,986				16,010
Diluted Earnings Per Share
Net income		$	4.22			$	4.01
Average number of shares outstanding			15,192				16,310
(aa) Selling, general and administrative ("SG&A") expenses comprise (in thousands):
		Three Months Ended March 31,
		2022				2021
SG&A expenses before long-term incentive compensation
and the impact of market value adjustments related to
deferred compensation plans		$	92,578			$	86,668
Market value adjustments related to deferred
compensation trusts			(3,934	)			3,038
Long-term incentive compensation			1,310				1,893
Total SG&A expenses		$	89,954			$	91,599
(bb) Other (expense)/income--net comprises (in thousands):
		Three Months Ended March 31,
		2022				2021
Market value adjustments related to deferred
compensation trusts		$	(3,934	)		$	3,038
Interest income			73				92
Other			(1	)			472
Total other (expense)/income--net		$	(3,862	)		$	3,602

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)(unaudited)
		March 31,
		2022				2021
Assets
Current assets
Cash and cash equivalents		$	18,160			$	210,156
Accounts receivable less allowances			117,319				104,748
Inventories			10,540				6,777
Prepaid income taxes			9,143				3,518
Prepaid expenses			29,589				21,775
Total current assets			184,751				346,974
Investments of deferred compensation plans held in trust			100,139				93,705
Properties and equipment, at cost less accumulated depreciation			192,405				190,154
Lease right of use asset			134,169				124,104
Identifiable intangible assets less accumulated amortization			106,367				115,517
Goodwill			579,704				578,618
Other assets			8,222				9,061
Total Assets		$	1,305,757			$	1,458,133
Liabilities
Current liabilities
Accounts payable		$	64,710			$	55,447
Income taxes			15,390				24,774
Accrued insurance			58,952				57,533
Accrued compensation			62,205				73,907
Accrued legal			871				2,102
Short-term lease liability			38,856				37,897
Other current liabilities			38,667				38,555
Total current liabilities			279,651				290,215
Deferred income taxes			19,136				19,733
Long-term debt			120,000				-
Deferred compensation liabilities			100,812				93,755
Long-term lease liability			109,121				98,813
Other liabilities			10,332				26,733
Total Liabilities			639,052				529,249
Stockholders' Equity
Capital stock			36,579				36,345
Paid-in capital			1,064,448				982,739
Retained earnings			2,029,158				1,783,740
Treasury stock, at cost			(2,465,716	)			(1,876,315	)
Deferred compensation payable in Company stock			2,236				2,375
Total Stockholders' Equity			666,705				928,884
Total Liabilities and Stockholders' Equity		$	1,305,757			$	1,458,133

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)(unaudited)
		Three Months Ended March 31,
		2022				2021
Cash Flows from Operating Activities
Net income		$	64,169			$	65,400
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization			14,656				14,225
Stock option expense			7,451				6,106
Benefit for deferred payroll taxes			(4,047	)			(930	)
Noncash long-term incentive compensation			1,185				1,642
Amortization of debt issuance costs			76				76
Payments on previously accrued litigation settlements			-				(8,490	)
Changes in operating assets and liabilities, excluding
amounts acquired in business combinations:
Decrease in accounts receivable			19,610				22,773
(Increase)/decrease in inventories			(431	)			318
Decrease in prepaid expenses			3,099				4,402
Decrease in accounts payable and
other current liabilities			(30,332	)			(18,369	)
Change in current income taxes			23,530				18,395
Net change in lease assets and liabilities			743				(24	)
Increase in other assets			(1,562	)			(5,274	)
Increase in other liabilities			2,958				5,759
Other (uses)/sources			(15	)			710
Net cash provided by operating activities			101,090				106,719
Cash Flows from Investing Activities
Capital expenditures			(12,649	)			(17,697	)
Business combinations, net of cash acquired			(1,650	)			-
Other sources			351				274
Net cash used by investing activities			(13,948	)			(17,423	)
Cash Flows from Financing Activities
Payments on revolving line of credit			(86,500	)			-
Proceeds from revolving line of credit			21,500				-
Purchases of treasury stock			(27,794	)			(41,107	)
Proceeds from exercise of stock options			7,692				11,026
Change in cash overdrafts payable			(7,051	)			-
Dividends paid			(5,322	)			(5,437	)
Capital stock surrendered to pay taxes on stock-based compensation			(4,893	)			(6,613	)
Other sources			491				316
Net cash used by financing activities			(101,877	)			(41,815	)
(Decrease)/Increase in Cash and Cash Equivalents			(14,735	)			47,481
Cash and cash equivalents at beginning of year			32,895				162,675
Cash and cash equivalents at end of year		$	18,160			$	210,156

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 2022 AND 2021
(in thousands)(unaudited)
														Chemed
		VITAS				Roto-Rooter				Corporate				Consolidated
2022 (a)
Service revenues and sales		$	299,189			$	231,360			$	-			$	530,549
Cost of services provided and goods sold			227,240				109,312				-				336,552
Selling, general and administrative expenses			22,453				56,954				10,547				89,954
Depreciation			5,551				6,569				18				12,138
Amortization			24				2,494				-				2,518
Other operating expense/(income)			(148	)			161				-				13
Total costs and expenses			255,120				175,490				10,565				441,175
Income/(loss) from operations			44,069				55,870				(10,565	)			89,374
Interest expense			(52	)			(115	)			(643	)			(810	)
Intercompany interest income/(expense)			4,656				2,176				(6,832	)			-
Other income—net			37				35				(3,934	)			(3,862	)
Income/(loss) before income taxes			48,710				57,966				(21,974	)			84,702
Income taxes			(12,229	)			(14,029	)			5,725				(20,533	)
Net income/(loss)		$	36,481			$	43,937			$	(16,249	)		$	64,169
2021 (b)
Service revenues and sales		$	315,788			$	211,572			$	-			$	527,360
Cost of services provided and goods sold			238,667				101,806				-				340,473
Selling, general and administrative expenses			22,090				53,322				16,187				91,599
Depreciation			5,338				6,353				24				11,715
Amortization			18				2,492				-				2,510
Other operating expense			502				120				-				622
Total costs and expenses			266,615				164,093				16,211				446,919
Income/(loss) from operations			49,173				47,479				(16,211	)			80,441
Interest expense			(42	)			(89	)			(250	)			(381	)
Intercompany interest income/(expense)			4,525				1,620				(6,145	)			-
Other income—net			533				31				3,038				3,602
Income/(loss) before income taxes			54,189				49,041				(19,568	)			83,662
Income taxes			(13,419	)			(11,864	)			7,021				(18,262	)
Net income/(loss)		$	40,770			$	37,177			$	(12,547	)		$	65,400
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 MARCH 31, 2022 AND 2021
(in thousands)(unaudited)
														Chemed
		VITAS				Roto-Rooter				Corporate				Consolidated
2022
Net income/(loss)		$	36,481			$	43,937			$	(16,249	)		$	64,169
Add/(deduct):
Interest expense			52				115				643				810
Income taxes			12,229				14,029				(5,725	)			20,533
Depreciation			5,551				6,569				18				12,138
Amortization			24				2,494				-				2,518
EBITDA			54,337				67,144				(21,313	)			100,168
Add/(deduct):
Intercompany interest expense/(income)			(4,656	)			(2,176	)			6,832				-
Interest income			(37	)			(36	)			-				(73	)
Stock option expense			-				-				7,451				7,451
Direct costs related to COVID-19			391				961				-				1,352
Long-term incentive compensation			-				-				1,310				1,310
Adjusted EBITDA		$	50,035			$	65,893			$	(5,720	)		$	110,208
2021
Net income/(loss)		$	40,770			$	37,177			$	(12,547	)		$	65,400
Add/(deduct):
Interest expense			42				89				250				381
Income taxes			13,419				11,864				(7,021	)			18,262
Depreciation			5,338				6,353				24				11,715
Amortization			18				2,492				-				2,510
EBITDA			59,587				57,975				(19,294	)			98,268
Add/(deduct):
Intercompany interest expense/(income)			(4,525	)			(1,620	)			6,145				-
Interest income			(61	)			(31	)			-				(92	)
Stock option expense			-				-				6,106				6,106
Direct costs related to COVID-19			1,753				553				38				2,344
Long-term incentive compensation			-				-				1,893				1,893
Adjusted EBITDA		$	56,754			$	56,877			$	(5,112	)		$	108,519
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 March 31,
		2022				2021
Net income as reported		$	64,169			$	65,400
Add/(deduct) pre-tax cost of:
Stock option expense			7,451				6,106
Amortization of reacquired franchise agreements			2,352				2,352
Direct costs related to COVID-19			1,352				2,344
Long-term incentive compensation			1,310				1,893
Add/(deduct) tax impacts:
Tax impact of the above pre-tax adjustments (1)			(2,413	)			(2,487	)
Excess tax benefits on stock compensation			(1,441	)			(3,238	)
Adjusted net income		$	72,780			$	72,370
Diluted Earnings Per Share As Reported
Net income		$	4.22			$	4.01
Average number of shares outstanding			15,192				16,310
Adjusted Diluted Earnings Per Share
Adjusted net income		$	4.79			$	4.44
Average number of shares outstanding			15,192				16,310

(1) The tax impact of pre-tax adjustments was calculated using the effective tax rate of the operating unit for which each adjustment is associated.
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 March 31,
OPERATING STATISTICS	2022					2021
Net revenue ($000) (c)
Homecare	$	257,636				$	263,754
Inpatient		26,570					29,156
Continuous care		19,578					27,349
Other		3,007					2,938
Subtotal	$	306,791				$	323,197
Room and board, net		(2,117	)				(2,665	)
Contractual allowances		(2,985	)				(3,244	)
Medicare cap allowance		(2,500	)				(1,500	)
Net Revenue	$	299,189				$	315,788
Net revenue as a percent of total before Medicare cap allowance
Homecare		84.0		%			81.6		%
Inpatient		8.7					9.0
Continuous care		6.4					8.5
Other		0.9					0.9
Subtotal		100.0					100.0
Room and board, net		(0.7	)				(0.8	)
Contractual allowances		(1.0	)				(1.0	)
Medicare cap allowance		(0.8	)				(0.5	)
Net Revenue		97.5		%			97.7		%
Days of care
Homecare		1,258,672					1,329,892
Nursing home		248,468					232,783
Respite		5,368					4,840
Subtotal routine homecare and respite		1,512,508					1,567,515
Inpatient		24,587					27,674
Continuous care		21,082					29,300
Total		1,558,177					1,624,489
Number of days in relevant time period		90					90
Average daily census ("ADC") (days)
Homecare		13,985					14,777
Nursing home		2,761					2,586
Respite		60					54
Subtotal routine homecare and respite		16,806					17,417
Inpatient		273					307
Continuous care		234					326
Total		17,313					18,050
Total Admissions		16,530					18,135
Total Discharges		16,862					18,516
Average length of stay (days)		104.8					94.4
Median length of stay (days)		14.0					12.0
ADC by major diagnosis
Cerebro		36.7		%			35.9		%
Neurological		22.9					22.1
Cancer		11.1					12.2
Cardio		15.9					15.8
Respiratory		7.4					7.8
Other		6.0					6.2
Total		100.0		%			100.0		%
Admissions by major diagnosis
Cerebro		22.9		%			21.4		%
Neurological		12.9					12.3
Cancer		24.9					25.0
Cardio		14.1					14.2
Respiratory		11.1					11.0
Other		14.1					16.1
Total		100.0		%			100.0		%
Estimated uncollectible accounts as a percent of revenues		1.0		%			1.0		%
Accounts receivable --
Days of revenue outstanding-excluding unapplied Medicare payments		33.6					37.8
Days of revenue outstanding-including unapplied Medicare payments		23.9					26.9
The "Footnotes to Financial Statements" are integral parts of this financial information.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
FOOTNOTES TO FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 2022 AND 2021
(unaudited)
(a)	Included in the results of operations for 2022 are the following significant credits/(charges) which may not be indicative of ongoing operations
	(in thousands):
			Three Months Ended March 31, 2022
			VITAS				Roto-Rooter				Corporate				Consolidated
	Stock option expense		$	-			$	-			$	(7,451	)		$	(7,451	)
	Amortization of reacquired franchise agreements			-				(2,352	)			-				(2,352	)
	Direct costs related to COVID-19			(391	)			(961	)			-				(1,352	)
	Long-term incentive compensation			-				-				(1,310	)			(1,310	)
	Pretax impact on earnings			(391	)			(3,313	)			(8,761	)			(12,465	)
	Excess tax benefits on stock compensation			-				-				1,441				1,441
	Income tax benefit on the above			99				878				1,436				2,413
	After-tax impact on earnings		$	(292	)		$	(2,435	)		$	(5,884	)		$	(8,611	)
(b)	Included in the results of operations for 2021 are the following significant credits/(charges) which may not be indicative of ongoing operations
	(in thousands):
			Three Months Ended March 31, 2021
			VITAS				Roto-Rooter				Corporate				Consolidated
	Stock option expense		$	-			$	-			$	(6,106	)		$	(6,106	)
	Amortization of reacquired franchise agreements			-				(2,352	)			-				(2,352	)
	Direct costs related to COVID-19			(1,753	)			(553	)			(38	)			(2,344	)
	Long-term incentive compensation			-				-				(1,893	)			(1,893	)
	Pretax impact on earnings			(1,753	)			(2,905	)			(8,037	)			(12,695	)
	Excess tax benefits on stock compensation			-				-				3,238				3,238
	Income tax benefit on the above			445				769				1,273				2,487
	After-tax impact on earnings		$	(1,308	)		$	(2,136	)		$	(3,526	)		$	(6,970	)
(c)	VITAS has 8 large (greater than 450 ADC), 20 medium (greater than 200 but less than 450 ADC) and 24 small (less than 200 ADC) hospice programs. Of Vitas' 30 Medicare provider numbers, for the current cap year, 28 provider numbers have a Medicare cap cushion of greater than 10% and two provider numbers have a Medicare cap liability.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220420005853/en/

David P. Williams

(513) 762-6901

Source: Chemed Corporation

FAQ

What were Chemed's Q1 2022 financial results?

Chemed reported a 0.6% revenue increase to $531 million and a GAAP Diluted EPS of $4.22.

How did VITAS Healthcare perform in Q1 2022?

VITAS had a revenue decline of 5.3% to $299 million, with significant drops in admissions.

What is the performance of Roto-Rooter in Q1 2022?

Roto-Rooter reported a revenue increase of 9.4% to $231 million and a 15.9% rise in adjusted EBITDA.

What was Chemed's adjusted diluted EPS for Q1 2022?

Chemed's adjusted diluted EPS increased 7.9% to $4.79 in Q1 2022.

Did Chemed repurchase any shares in Q1 2022?

Yes, Chemed repurchased shares worth $27.4 million during Q1 2022.