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Chemed Reports First-Quarter 2024 Results
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 March 31, 2023, the pretax and after-tax Retention Program expense was $10.9 million and $8.3 million, respectively. There was no material impact on financial results for the quarter-ended March 31, 2024 as a result of the Retention Program.
Results for Quarter Ended March 31, 2024
Consolidated operating results:
Revenue increased 5.2% to $589.2 million GAAP Diluted Earnings-per-Share (EPS) of $4.24, an increase of 18.4% Adjusted Diluted EPS of $5.20, an increase of 21.5%
VITAS segment operating results:
Net Patient Revenue of $354.0 million, an increase of 14.0% Average Daily Census (ADC) of 19,665, an increase of 10.3% Admissions of 16,911, an increase of 4.5% Net Income, excluding certain discrete items, of $44.0 million, an increase of 77.6% Adjusted EBITDA, excluding Medicare Cap, of $60.7 million, an increase of 67.2% Adjusted EBITDA margin, excluding Medicare Cap, of 17.0%, an increase of 544-basis points
Roto-Rooter segment operating results:
Revenue of $235.2 million, a decrease of 5.8% Net Income, excluding certain discrete items, of $42.7 million, a decrease of 15.8% Adjusted EBITDA of $60.7 million, a decline of 15.6% Adjusted EBITDA margin of 25.8%, a decline of 299-basis points
VITAS
VITAS net revenue was $354.0 million in the first quarter of 2024, which is an increase of 14.0% when compared to the prior-year period. This revenue increase is comprised primarily of an 11.5% increase in days-of-care and a geographically weighted average Medicare reimbursement rate increase of approximately 2.6%. Acuity mix shift negatively impacted revenue growth 60-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 50-basis points.
In the first quarter of 2024, VITAS accrued $2.4 million in Medicare Cap billing limitations. This compares to a $2.8 million Medicare Cap billing limitation in the first quarter of 2023.
Of VITAS' 30 Medicare provider numbers, 27 provider numbers have a trailing 12-month Medicare Cap cushion of 10% or greater, two provider numbers have a cushion between 0% and 10%, and one provider number has a trailing 12-month Medicare Cap billing limitation totaling $6.4 million.
Average revenue per patient per day in the first quarter of 2024 was $203.08 which is 212-basis points above the prior-year period. Reimbursement for routine home care and high acuity care averaged $177.67 and $1,074.78, respectively. During the quarter, high acuity days-of-care were 2.8% of total days of care, a decline of 10-basis points when compared to the prior-year quarter.
The first quarter 2024 gross margin, excluding Medicare Cap, was 23.7%. This compares to the prior year quarter's gross margin of 19.0%, excluding Medicare Cap. Approximately 370-basis points of this difference is attributable to the expense associated with the Retention Program. Selling, general and administrative expenses were $23.8 million in the first quarter of 2024 and compares to $23.3 million in the prior-year quarter.
Adjusted EBITDA, excluding Medicare Cap, totaled $60.7 million in the quarter, an increase of 67.2%. Adjusted EBITDA margin in the quarter, excluding Medicare Cap, was 17.0%, which is 544-basis points above the prior-year period. Approximately 370-basis points of this difference is attributable to the expense associated with the Retention Program.
As previously announced, VITAS completed its acquisition of the hospice assets and an assisted living facility of Covenant Health and Community Services, Inc. (Covenant Health) on April 17, 2024 for $85 million in cash.
Roto-Rooter
Roto-Rooter generated quarterly revenue of $235.2 million in the first quarter of 2024, a decrease of 5.8%, when compared to the prior-year quarter.
Roto-Rooter branch commercial revenue in the quarter totaled $53.7 million, a decrease of 10.5% from the prior-year period. This aggregate commercial revenue decline consisted of drain cleaning revenue declining 9.9%, plumbing declining 11.9%, excavation declining 13.0%, and water restoration declining 2.5%.
Roto-Rooter branch residential revenue in the quarter totaled $162.9 million, a decrease of 3.5%, over the prior-year period. This aggregate residential revenue decline consisted of drain cleaning decreasing 5.6%, plumbing decreasing 1.1%, excavation expanding 1.5%, and water restoration decreasing 8.5%.
Roto-Rooter's gross margin in the quarter was 51.9%, a 126-basis point decline when compared to the first quarter of 2023. Adjusted EBITDA in the first quarter of 2024 totaled $60.7 million, a decrease of 15.6%. The Adjusted EBITDA margin in the quarter was 25.8%, which is 299-basis points below the prior-year period.
Chemed Consolidated
As of March 31, 2024, Chemed had total cash and cash equivalents of $313.4 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. 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 50,000 shares of Chemed stock for $32.3 million which equates to a cost per share of $646.87. As of March 31, 2024, there was approximately $281.7 million of remaining share repurchase authorization under its plan.
Guidance for 2024
Management reiterates its estimated 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, guidance range of $23.30 to $23.70. Management anticipates providing updated 2024 earnings guidance and related subsidiary operating metrics as part of the June 30, 2024 earnings press release.
Conference Call
As previously disclosed, Chemed will host a conference call and webcast at 10 a.m., ET, on Thursday April 25, 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/as75yrfc.
Participants may also register via teleconference at: https://register.vevent.com/register/BIc1af400b429d468491b37732bcb93819.
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 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, Three Months Ended March 31, Three Months Ended March 31,
------------------------------------------------------- ---------------------------- -------------------------------------------------------------------------------------------------------------------------------
2024 2024 2024 2023 2023
------------------------------------------------------- ---------------------------- -------------------------------------------------- -------------------- --------------------------------------------------
Service revenues and sales $ $ 589,233 $ $ 560,157
---------------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
Cost of services provided and goods sold 385,127 385,127 385,127 370,705 370,705 370,705
Selling, general and administrative expenses (aa) 115,873 115,873 115,873 100,095 100,095 100,095
Depreciation 13,287 13,287 13,287 12,286 12,286 12,286
Amortization 2,521 2,521 2,521 2,513 2,513 2,513
Other operating expense 92 92 92 1,739 1,739 1,739
---------------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
Total costs and expenses 516,900 516,900 516,900 487,338 487,338 487,338
---------------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
Income from operations 72,333 72,333 72,333 72,819 72,819 72,819
Interest expense (425 (425 (425 ) (1,551 (1,551 (1,551 )
Other income/(expense)--net (bb) 12,577 12,577 12,577 (103 (103 (103 )
---------------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
Income before income taxes 84,485 84,485 84,485 71,165 71,165 71,165
Income taxes (19,468 (19,468 (19,468 ) (17,044 (17,044 (17,044 )
---------------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
Net income $ $ 65,017 $ $ 54,121
============================ ==================== ========== ==================== ==================== ==================== ========== ====================
Earnings Per Share
Net income $ $ 4.30 $ $ 3.62
============================ ==================== ========== ==================== ==================== ==================== ========== ====================
Average number of shares outstanding 15,121 15,121 15,121 14,966 14,966 14,966
============================ ==================== ========== ==================== ==================== ==================== ========== ====================
Diluted Earnings Per Share
Net income $ $ 4.24 $ $ 3.58
============================ ==================== ========== ==================== ==================== ==================== ========== ====================
Average number of shares outstanding 15,339 15,339 15,339 15,110 15,110 15,110
============================ ==================== ========== ==================== ==================== ==================== ========== ====================
------------------------------------------------------- ---------------------------- -------------------- ---------------------------------------------------- -------------------- --------------------------------
(aa) Selling, general and administrative ("SG&A") expenses comprise (in thousands):
Three Months Ended March 31, Three Months Ended March 31, Three Months Ended March 31,
------------------------------------------------------- ---------------------------- -------------------------------------------------------------------------------------------------------------------------------
2024 2024 2024 2023 2023
------------------------------------------------------- ---------------------------- -------------------------------------------------- -------------------- --------------------------------------------------
SG&A expenses before long-term incentive compensation
and the impact of market value adjustments related to
deferred compensation plans $ $ 98,418 $ $ 97,902
Long-term incentive compensation 9,121 9,121 9,121 2,514 2,514 2,514
Market value adjustments related to deferred
compensation trusts 8,334 8,334 8,334 (321 (321 (321 )
---------------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
Total SG&A expenses $ $ 115,873 $ $ 100,095
============================ ==================== ========== ==================== ==================== ==================== ========== ====================
(bb) Other income/(expense)--net comprises (in thousands):
Three Months Ended March 31, Three Months Ended March 31, Three Months Ended March 31,
------------------------------------------------------- ---------------------------- -------------------------------------------------------------------------------------------------------------------------------
2024 2024 2024 2023 2023
------------------------------------------------------- ---------------------------- -------------------------------------------------- -------------------- --------------------------------------------------
Market value adjustments related to deferred
compensation trusts $ $ 8,334 $ $ (321 )
Interest income 4,243 4,243 4,243 150 150 150
Other - - - 68 68 68
---------------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)(unaudited)
March 31, March 31, March 31,
--------------------------------------------------------------------- -------------------- ------------------------------------------------------------------------------------------------------------------------
2024 2024 2024 2023 2023
--------------------------------------------------------------------- -------------------- -------------------------------------------------- -------------------- --------------------------------------------------
Assets
Current assets
Cash and cash equivalents $ $ 313,350 $ $ 58,054
Accounts receivable less allowances 177,334 177,334 177,334 153,816 153,816 153,816
Inventories 10,712 10,712 10,712 10,663 10,663 10,663
Prepaid income taxes 9,790 9,790 9,790 10,633 10,633 10,633
Prepaid expenses 28,431 28,431 28,431 29,055 29,055 29,055
-------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
Total current assets 539,617 539,617 539,617 262,221 262,221 262,221
Investments of deferred compensation plans held in trust 117,649 117,649 117,649 97,436 97,436 97,436
Properties and equipment, at cost less accumulated depreciation 202,784 202,784 202,784 204,164 204,164 204,164
Lease right of use asset 131,751 131,751 131,751 131,219 131,219 131,219
Identifiable intangible assets less accumulated amortization 88,137 88,137 88,137 97,348 97,348 97,348
Goodwill 591,519 591,519 591,519 581,586 581,586 581,586
Other assets 56,176 56,176 56,176 57,511 57,511 57,511
-------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
Total Assets $ $ 1,727,633 $ $ 1,431,485
==================== ==================== ========== ==================== ==================== ==================== ========== ====================
Liabilities
Current liabilities
Accounts payable $ $ 56,203 $ $ 40,279
Current portion of long-term debt - - - 5,000 5,000 5,000
Income taxes 27,353 27,353 27,353 11,223 11,223 11,223
Accrued insurance 62,055 62,055 62,055 63,150 63,150 63,150
Accrued compensation 49,802 49,802 49,802 50,152 50,152 50,152
Accrued legal 7,183 7,183 7,183 6,061 6,061 6,061
Short-term lease liability 39,279 39,279 39,279 38,291 38,291 38,291
Other current liabilities 40,099 40,099 40,099 69,304 69,304 69,304
-------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
Total current liabilities 281,974 281,974 281,974 283,460 283,460 283,460
Deferred income taxes 24,899 24,899 24,899 35,418 35,418 35,418
Long-term debt - - - 16,250 16,250 16,250
Deferred compensation liabilities 117,550 117,550 117,550 97,285 97,285 97,285
Long-term lease liability 106,861 106,861 106,861 106,212 106,212 106,212
Other liabilities 12,854 12,854 12,854 12,507 12,507 12,507
-------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
Total Liabilities 544,138 544,138 544,138 551,132 551,132 551,132
-------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
Stockholders' Equity
Capital stock 37,297 37,297 37,297 36,884 36,884 36,884
Paid-in capital 1,398,733 1,398,733 1,398,733 1,186,119 1,186,119 1,186,119
Retained earnings 2,505,892 2,505,892 2,505,892 2,246,354 2,246,354 2,246,354
Treasury stock, at cost (2,760,543 (2,760,543 (2,760,543 ) (2,591,588 (2,591,588 (2,591,588 )
Deferred compensation payable in Company stock 2,116 2,116 2,116 2,284 2,284 2,284
-------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
Total Stockholders' Equity 1,183,495 1,183,495 1,183,495 880,053 880,053 880,053
-------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)(unaudited)
For the Three Months Ended March 31,
---------------------------------------------------------------------------
2024 2023 2023
---------------------------------- ------- ----------------------------------
Cash Flows from Operating Activities
Net income $ 65,017 $ $ 54,121
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization 15,808 15,808 14,799 14,799 14,799
Noncash long-term incentive compensation 9,106 9,106 2,024 2,024 2,024
Stock option expense 9,025 9,025 8,482 8,482 8,482
Benefit for deferred income taxes (5,422 (5,422 ) (3,195 (3,195 (3,195 )
Amortization of debt issuance costs 80 80 95 95 95
Changes in operating assets and liabilities, excluding
amounts acquired in business combinations:
Decrease/(increase) in accounts receivable 5,345 5,345 (14,318 (14,318 (14,318 )
Decrease/(increase) in inventories 1,302 1,302 (391 (391 (391 )
Decrease in prepaid expenses 1,909 1,909 1,236 1,236 1,236
Decrease in accounts payable and
(43,012 (43,012 ) (24,109 (24,109 (24,109 )
other current liabilities
Change in current income taxes 23,871 23,871 19,118 19,118 19,118
Net change in lease assets and liabilities 25 25 (632 (632 (632 )
Increase in other assets (12,243 (12,243 ) (2,173 (2,173 (2,173 )
Increase in other liabilities 13,332 13,332 5,313 5,313 5,313
Other sources 406 406 122 122 122
------- ------- -------------------- ------- ------- ------- --------------------
Net cash provided by operating activities 84,549 84,549 60,492 60,492 60,492
------- ------- -------------------- ------- ------- ------- --------------------
Cash Flows from Investing Activities
Capital expenditures (12,163 (12,163 ) (17,020 (17,020 (17,020 )
Business combinations, net of cash acquired (7,300 (7,300 ) - - -
Proceeds from sale of fixed assets 86 86 146 146 146
Other uses (8 (8 ) (139 (139 (139 )
------- ------- -------------------- ------- ------- ------- --------------------
Net cash used by investing activities (19,385 (19,385 ) (17,013 (17,013 (17,013 )
------- ------- -------------------- ------- ------- ------- --------------------
Cash Flows from Financing Activities
Purchases of treasury stock (38,460 (38,460 ) - - -
Proceeds from exercise of stock options 37,242 37,242 25,680 25,680 25,680
Dividends paid (6,050 (6,050 ) (5,685 (5,685 (5,685 )
Capital stock surrendered to pay taxes on stock-based compensation (5,725 (5,725 ) (3,166 (3,166 (3,166 )
Change in cash overdrafts payable (2,115 (2,115 ) - - -
Payments on long-term debt - - (76,250 (76,250 (76,250 )
Other uses (664 (664 ) (130 (130 (130 )
------- ------- -------------------- ------- ------- ------- --------------------
Net cash used by financing activities (15,772 (15,772 ) (59,551 (59,551 (59,551 )
------- ------- -------------------- ------- ------- ------- --------------------
Increase/(decrease) in Cash and Cash Equivalents 49,392 49,392 (16,072 (16,072 (16,072 )
Cash and cash equivalents at beginning of year 263,958 263,958 74,126 74,126 74,126
------- ------- -------------------- ------- ------- ------- --------------------
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023
(in thousands)(unaudited)
Chemed Chemed Chemed Chemed Chemed Chemed Chemed Chemed Chemed
VITAS VITAS VITAS Roto-Rooter Roto-Rooter Corporate Corporate Consolidated Consolidated
--------------------------------------------- -------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- -----------------------------------------------------
2024 (a)
---------------------------------------------
Service revenues and sales $ $ 354,007 $ $ 235,226 $ $ - $ $ 589,233
-------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
Cost of services provided and goods sold 271,896 271,896 271,896 113,231 113,231 113,231 - - - 385,127 385,127 385,127
Selling, general and administrative expenses 23,792 23,792 23,792 61,260 61,260 61,260 30,821 30,821 30,821 115,873 115,873 115,873
Depreciation 5,166 5,166 5,166 8,108 8,108 8,108 13 13 13 13,287 13,287 13,287
Amortization 26 26 26 2,495 2,495 2,495 - - - 2,521 2,521 2,521
Other operating expense 7 7 7 85 85 85 - - - 92 92 92
-------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
Total costs and expenses 300,887 300,887 300,887 185,179 185,179 185,179 30,834 30,834 30,834 516,900 516,900 516,900
-------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
Income/(loss) from operations 53,120 53,120 53,120 50,047 50,047 50,047 (30,834 (30,834 (30,834 ) 72,333 72,333 72,333
Interest expense (46 (46 (46 ) (117 (117 (117 ) (262 (262 (262 ) (425 (425 (425 )
Intercompany interest income/(expense) 5,194 5,194 5,194 3,442 3,442 3,442 (8,636 (8,636 (8,636 ) - - -
Other income--net 29 29 29 22 22 22 12,526 12,526 12,526 12,577 12,577 12,577
-------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
Income/(loss) before income taxes 58,297 58,297 58,297 53,394 53,394 53,394 (27,206 (27,206 (27,206 ) 84,485 84,485 84,485
Income taxes (14,327 (14,327 (14,327 ) (12,541 (12,541 (12,541 ) 7,400 7,400 7,400 (19,468 (19,468 (19,468 )
-------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
Net income/(loss) $ $ 43,970 $ $ 40,853 $ $ (19,806 ) $ $ 65,017
==================== ==================== ========== ==================== ==================== ==================== ========== ==================== ==================== ==================== ========== ==================== ==================== ==================== ========== ====================
2023 (b)
---------------------------------------------
Service revenues and sales $ $ 310,478 $ $ 249,679 $ $ - $ $ 560,157
-------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
Cost of services provided and goods sold 253,654 253,654 253,654 117,051 117,051 117,051 - - - 370,705 370,705 370,705
Selling, general and administrative expenses 23,336 23,336 23,336 60,813 60,813 60,813 15,946 15,946 15,946 100,095 100,095 100,095
Depreciation 4,958 4,958 4,958 7,312 7,312 7,312 16 16 16 12,286 12,286 12,286
Amortization 26 26 26 2,487 2,487 2,487 - - - 2,513 2,513 2,513
Other operating expense 12 12 12 1,727 1,727 1,727 - - - 1,739 1,739 1,739
-------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
Total costs and expenses 281,986 281,986 281,986 189,390 189,390 189,390 15,962 15,962 15,962 487,338 487,338 487,338
-------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
Income/(loss) from operations 28,492 28,492 28,492 60,289 60,289 60,289 (15,962 (15,962 (15,962 ) 72,819 72,819 72,819
Interest expense (50 (50 (50 ) (133 (133 (133 ) (1,368 (1,368 (1,368 ) (1,551 (1,551 (1,551 )
Intercompany interest income/(expense) 4,648 4,648 4,648 2,743 2,743 2,743 (7,391 (7,391 (7,391 ) - - -
Other income/(expense)--net 189 189 189 29 29 29 (321 (321 (321 ) (103 (103 (103 )
-------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
Income/(loss) before income taxes 33,279 33,279 33,279 62,928 62,928 62,928 (25,042 (25,042 (25,042 ) 71,165 71,165 71,165
Income taxes (8,515 (8,515 (8,515 ) (15,275 (15,275 (15,275 ) 6,746 6,746 6,746 (17,044 (17,044 (17,044 )
-------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
Net income/(loss) $ $ 24,764 $ $ 47,653 $ $ (18,296 ) $ $ 54,121
==================== ==================== ========== ==================== ==================== ==================== ========== ==================== ==================== ==================== ========== ==================== ==================== ==================== ========== ====================
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING SUMMARIES OF EBITDA
FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023
(in thousands)(unaudited)
Chemed Chemed Chemed Chemed Chemed Chemed Chemed Chemed Chemed
VITAS VITAS VITAS Roto-Rooter Roto-Rooter Corporate Corporate Consolidated Consolidated
---------------------------------------------------- -------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- -----------------------------------------------------
2024
----------------------------------------------------
Net income/(loss) $ $ 43,970 $ $ 40,853 $ $ (19,806 ) $ $ 65,017
Add/(deduct):
Interest expense 46 46 46 117 117 117 262 262 262 425 425 425
Income taxes 14,327 14,327 14,327 12,541 12,541 12,541 (7,400 (7,400 (7,400 ) 19,468 19,468 19,468
Depreciation 5,166 5,166 5,166 8,108 8,108 8,108 13 13 13 13,287 13,287 13,287
Amortization 26 26 26 2,495 2,495 2,495 - - - 2,521 2,521 2,521
-------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
EBITDA 63,535 63,535 63,535 64,114 64,114 64,114 (26,931 (26,931 (26,931 ) 100,718 100,718 100,718
Add/(deduct):
Intercompany interest expense/(income) (5,194 (5,194 (5,194 ) (3,442 (3,442 (3,442 ) 8,636 8,636 8,636 - - -
Interest income (29 (29 (29 ) (22 (22 (22 ) (4,192 (4,192 (4,192 ) (4,243 (4,243 (4,243 )
Stock option expense - - - - - - 9,026 9,026 9,026 9,026 9,026 9,026
Severance arrangement - - - - - - 5,337 5,337 5,337 5,337 5,337 5,337
Long-term incentive compensation - - - - - - 3,784 3,784 3,784 3,784 3,784 3,784
-------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
Adjusted EBITDA $ $ 58,312 $ $ 60,650 $ $ (4,340 ) $ $ 114,622
==================== ==================== ========== ==================== ==================== ==================== ========== ==================== ==================== ==================== ========== ==================== ==================== ==================== ========== ====================
2023
----------------------------------------------------
Net income/(loss) $ $ 24,764 $ $ 47,653 $ $ (18,296 ) $ $ 54,121
Add/(deduct):
Interest expense 50 50 50 133 133 133 1,368 1,368 1,368 1,551 1,551 1,551
Income taxes 8,515 8,515 8,515 15,275 15,275 15,275 (6,746 (6,746 (6,746 ) 17,044 17,044 17,044
Depreciation 4,958 4,958 4,958 7,312 7,312 7,312 16 16 16 12,286 12,286 12,286
Amortization 26 26 26 2,487 2,487 2,487 - - - 2,513 2,513 2,513
-------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------------------
EBITDA 38,313 38,313 38,313 72,860 72,860 72,860 (23,658 (23,658 (23,658 ) 87,515 87,515 87,515
Add/(deduct):
Intercompany interest expense/(income) (4,648 (4,648 (4,648 ) (2,743 (2,743 (2,743 ) 7,391 7,391 7,391 - - -
Interest income (121 (121 (121 ) (29 (29 (29 ) - - - (150 (150 (150 )
Stock option expense - - - - - - 8,482 8,482 8,482 8,482 8,482 8,482
Long-term incentive compensation - - - - - - 2,514 2,514 2,514 2,514 2,514 2,514
Litigation settlement - - - 1,756 1,756 1,756 - - - 1,756 1,756 1,756
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Adjusted EBITDA $ $ 33,544 $ $ 71,844 $ $ (5,271 ) $ $ 100,117
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CHEMED CORPORATION AND SUBSIDIARY COMPANIES
RECONCILIATION OF ADJUSTED NET INCOME
(in thousands, except per share data)(unaudited)
Three Months Ended March 31, Three Months Ended March 31, Three Months Ended March 31,
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