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Chemed Reports First-Quarter 2023 Results

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, 2023, versus the comparable prior-year period, as follows:

Consolidated operating results:

  • Revenue increased 5.6% to $560 million
  • GAAP Diluted Earnings-per-Share (EPS) of $3.58
  • Adjusted Diluted EPS of $4.82, an increase of 0.6%

VITAS segment operating results:

  • Net Patient Revenue of $310 million, an increase of 3.8%
  • Average Daily Census (ADC) of 17,830, an increase of 3.0%
  • Admissions of 16,179, a decline of 2.1%
  • Net Income, excluding certain discrete items, of $32.9 million, a decline of 10.5%
  • Adjusted EBITDA, excluding Medicare Cap, of $47.2 million, a decline of 10.1%
  • Adjusted EBITDA margin, excluding Medicare Cap, of 15.1%, a decrease of 234-basis points

Roto-Rooter segment operating results:

  • Revenue of $250 million, an increase of 7.9%
  • Net Income, excluding certain discrete items, of $50.7 million, an increase of 9.3%
  • Adjusted EBITDA of $71.8 million, an increase of 9.0%
  • Adjusted EBITDA margin of 28.8%, an increase of 29-basis points

VITAS

VITAS net revenue was $310 million in the first quarter of 2023, which is an increase of 3.8% when compared to the prior year period. This revenue increase is comprised primarily of a 3.0% increase in days-of-care and a geographically weighted average Medicare reimbursement rate increase of approximately 2.9%, partially offset by 200-basis points as a result of CMS reimplementing the 2% sequestration cut that was suspended at the start of the pandemic in 2020. Acuity mix shift had minimal impact 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 negatively impacted revenue growth by 10-basis points.

In the first quarter of 2023, VITAS accrued $2.75 million in Medicare Cap billing limitations. This compares to a $2.5 million Medicare Cap billing limitation in the first quarter of 2022.

Of VITAS’ 30 Medicare provider numbers, 25 provider numbers have a trailing six-month Medicare Cap cushion of 10% or greater, one provider number has a cushion between 5% and 10%, one provider number has a cushion between 0% and 5% and three provider numbers have a trailing six-month billing limitation liability.

Average revenue per patient per day in the first quarter of 2023 was $198.86 which is 100-basis points above the prior-year period. Reimbursement for routine home care and high acuity care averaged $173.39 and $1,042.06 respectively. During the quarter, high acuity days-of-care were 2.9% of total days of care, essentially equal to the prior-year quarter.

The first quarter 2023 gross margin, excluding Medicare Cap and the hiring and retention bonus program, was 22.5%. This is a 220-basis point margin decline when compared to the first quarter of 2022. The majority of this margin decline is the result of CMS reimplementing sequestration which reduced gross margins 200-basis points. During the quarter, VITAS increased the licensed healthcare staff by 200 professionals. This results in total licensed staff increasing by 475 professionals since the inception of the retention program on July 1, 2022. The increase of 200 professionals hired during the first quarter of 2023 is estimated to have negatively impacted margins in the quarter by approximately 50-basis points.

Selling, general and administrative expenses were $23.3 million in the first quarter of 2023 and compares to $22.5 million incurred in the prior-year quarter. Adjusted EBITDA, excluding Medicare Cap, totaled $47.2 million in the quarter, a decrease of 10.1%. Adjusted EBITDA margin in the quarter, excluding Medicare Cap, was 15.1%, which is 234-basis points below the prior-year period. This Adjusted EBITDA margin was negatively impacted by 200-basis points for the reimplementation of sequestration and approximately 50-basis points due to the addition of 200 licensed professionals during the first quarter of 2023.

Roto-Rooter

Roto-Rooter generated quarterly revenue of $250 million in the first quarter of 2023, an increase of 7.9%, when compared to the prior-year quarter.

Roto-Rooter branch commercial revenue in the quarter totaled $59.9 million, an increase of 10.1%, over the prior year. This aggregate commercial revenue growth consisted of drain cleaning revenue increasing 4.0%, plumbing increasing 10.7%, excavation increasing 26.2%, and water restoration increasing 7.4%.

Roto-Rooter branch residential revenue in the quarter totaled $169 million, an increase of 7.5%, over the prior-year period. This aggregate residential revenue growth consisted of drain cleaning decreasing 2.9%, plumbing expanding 3.6%, excavation expanding 3.9%, and water restoration increasing 27.4%.

Roto-Rooter’s gross margin in the quarter was 53.1%, a 37-basis point increase when compared to the first quarter of 2022. Adjusted EBITDA in the first quarter of 2023 totaled $71.8 million, an increase of 9.0%. The Adjusted EBITDA margin in the quarter was 28.8%, which is a 29-basis point improvement when compared to the prior year.

Chemed Consolidated

As of March 31, 2023, Chemed had total cash and cash equivalents of $58.1 million and $21.3 million of current and 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. During the quarter, the Company paid off the majority of the term loan, with $21.3 million remaining as of March 31, 2023. The Company has approximately $405 million of undrawn borrowing capacity under the revolving portion of the credit agreement.

Guidance for 2023

Management anticipates providing updated 2023 earnings guidance as part of the June 30, 2023, earnings press release.

Conference Call

Chemed will host a conference call and webcast at 10 a.m., ET, on Thursday April 27, 2023, 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/j92nc5np.

Participants may also register via teleconference at:

https://register.vevent.com/register/BI022164faf96b4f54a3fa9a29dc1a2511. 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 approximately 17,800 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,

2023

2022

Service revenues and sales $

560,157

 

$

530,549

 

Cost of services provided and goods sold

370,705

 

336,552

 

Selling, general and administrative expenses (aa)

100,095

 

89,954

 

Depreciation

12,286

 

12,138

 

Amortization

2,513

 

2,518

 

Other operating expense

1,739

 

13

 

Total costs and expenses

487,338

 

441,175

 

Income from operations

72,819

 

89,374

 

Interest expense

(1,551

)

(810

)

Other expense--net (bb)

(103

)

(3,862

)

Income before income taxes

71,165

 

84,702

 

Income taxes

(17,044

)

(20,533

)

Net income $

54,121

 

$

64,169

 

Earnings Per Share
Net income $

3.62

 

$

4.28

 

Average number of shares outstanding

14,966

 

14,986

 

Diluted Earnings Per Share
Net income $

3.58

 

$

4.22

 

Average number of shares outstanding

15,110

 

15,192

 

 
(aa) Selling, general and administrative ("SG&A") expenses comprise (in thousands):
 
Three Months Ended March 31,

2023

2022

SG&A expenses before long-term incentive compensation
and the impact of market value adjustments related to
deferred compensation plans $

97,902

 

$

92,578

 

Long-term incentive compensation

2,514

 

1,310

 

Market value adjustments related to deferred
compensation trusts

(321

)

(3,934

)

Total SG&A expenses $

100,095

 

$

89,954

 

 
(bb) Other expense--net comprises (in thousands):
Three Months Ended March 31,

2023

2022

Market value adjustments related to deferred
compensation trusts $

(321

)

$

(3,934

)

Interest income

150

 

73

 

Other

68

 

(1

)

Total other expense--net $

(103

)

$

(3,862

)

 
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)(unaudited)
 
March 31,

2023

2022

Assets
Current assets
Cash and cash equivalents $

58,054

 

$

18,160

 

Accounts receivable less allowances

153,816

 

117,319

 

Inventories

10,663

 

10,540

 

Prepaid income taxes

10,633

 

9,143

 

Prepaid expenses

29,055

 

29,589

 

Total current assets

262,221

 

184,751

 

Investments of deferred compensation plans held in trust

97,436

 

100,139

 

Properties and equipment, at cost less accumulated depreciation

204,164

 

192,405

 

Lease right of use asset

131,219

 

134,169

 

Identifiable intangible assets less accumulated amortization

97,348

 

106,367

 

Goodwill

581,286

 

579,704

 

Other assets

57,511

 

8,222

 

Total Assets $

1,431,185

 

$

1,305,757

 

Liabilities
Current liabilities
Accounts payable $

40,279

 

$

64,710

 

Current portion of long-term debt

5,000

 

-

 

Income taxes

11,223

 

15,390

 

Accrued insurance

63,150

 

58,952

 

Accrued compensation

50,152

 

62,205

 

Accrued legal

6,061

 

871

 

Short-term lease liability

38,291

 

38,856

 

Other current liabilities

69,304

 

38,667

 

Total current liabilities

283,460

 

279,651

 

Deferred income taxes

35,418

 

19,136

 

Long-term debt

16,250

 

120,000

 

Deferred compensation liabilities

97,285

 

100,812

 

Long-term lease liability

106,212

 

109,121

 

Other liabilities

12,507

 

10,332

 

Total Liabilities

551,132

 

639,052

 

Stockholders' Equity
Capital stock

36,884

 

36,579

 

Paid-in capital

1,186,119

 

1,064,448

 

Retained earnings

2,246,354

 

2,029,158

 

Treasury stock, at cost

(2,591,588

)

(2,465,716

)

Deferred compensation payable in Company stock

2,284

 

2,236

 

Total Stockholders' Equity

880,053

 

666,705

 

Total Liabilities and Stockholders' Equity $

1,431,185

 

$

1,305,757

 

 
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)(unaudited)
 
Three Months Ended March 31,

2023

2022

Cash Flows from Operating Activities
Net income $

54,121

 

$

64,169

 

Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization

14,799

 

14,656

 

Stock option expense

8,482

 

7,451

 

Benefit for deferred income taxes

(3,195

)

(4,047

)

Noncash long-term incentive compensation

2,024

 

1,185

 

Amortization of debt issuance costs

95

 

76

 

Changes in operating assets and liabilities, excluding
amounts acquired in business combinations:
(Increase)/decrease in accounts receivable

(14,318

)

19,610

 

Increase in inventories

(391

)

(431

)

Decrease in prepaid expenses

1,236

 

3,099

 

Decrease in accounts payable and
other current liabilities

(24,109

)

(30,332

)

Change in current income taxes

19,118

 

23,530

 

Net change in lease assets and liabilities

(632

)

743

 

Increase in other assets

(2,173

)

(1,562

)

Increase in other liabilities

5,313

 

2,958

 

Other sources/(uses)

122

 

(15

)

Net cash provided by operating activities

60,492

 

101,090

 

Cash Flows from Investing Activities
Capital expenditures

(17,020

)

(12,649

)

Business combinations, net of cash acquired

-

 

(1,650

)

Proceeds from sale of fixed assets

146

 

485

 

Other uses

(139

)

(134

)

Net cash used by investing activities

(17,013

)

(13,948

)

Cash Flows from Financing Activities
Payments on long-term debt

(76,250

)

-

 

Proceeds from exercise of stock options

25,680

 

7,692

 

Dividends paid

(5,685

)

(5,322

)

Capital stock surrendered to pay taxes on stock-based compensation

(3,166

)

(4,893

)

Payments on revolving line of credit

-

 

(86,500

)

Proceeds from revolving line of credit

-

 

21,500

 

Purchases of treasury stock

-

 

(27,794

)

Change in cash overdrafts payable

-

 

(7,051

)

Other (uses)/sources

(130

)

491

 

Net cash used by financing activities

(59,551

)

(101,877

)

Decrease in Cash and Cash Equivalents

(16,072

)

(14,735

)

Cash and cash equivalents at beginning of year

74,126

 

32,895

 

Cash and cash equivalents at end of year $

58,054

 

$

18,160

 

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 2023 AND 2022
(in thousands)(unaudited)
Chemed
VITAS Roto-Rooter Corporate Consolidated
2023 (a)
Service revenues and sales $

310,478

 

$

249,679

 

$

-

 

$

560,157

 

Cost of services provided and goods sold

253,654

 

117,051

 

-

 

370,705

 

Selling, general and administrative expenses

23,336

 

60,813

 

15,946

 

100,095

 

Depreciation

4,958

 

7,312

 

16

 

12,286

 

Amortization

26

 

2,487

 

-

 

2,513

 

Other operating expense

12

 

1,727

 

-

 

1,739

 

Total costs and expenses

281,986

 

189,390

 

15,962

 

487,338

 

Income/(loss) from operations

28,492

 

60,289

 

(15,962

)

72,819

 

Interest expense

(50

)

(133

)

(1,368

)

(1,551

)

Intercompany interest income/(expense)

4,648

 

2,743

 

(7,391

)

-

 

Other income/(expense)—net

189

 

29

 

(321

)

(103

)

Income/(loss) before income taxes

33,279

 

62,928

 

(25,042

)

71,165

 

Income taxes

(8,515

)

(15,275

)

6,746

 

(17,044

)

Net income/(loss) $

24,764

 

$

47,653

 

$

(18,296

)

$

54,121

 

 
2022 (b)
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/(expense)—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

 

 
 
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, 2023 AND 2022
(in thousands)(unaudited)
Chemed
VITAS Roto-Rooter Corporate Consolidated

2023

Net income/(loss) $

24,764

 

$

47,653

 

$

(18,296

)

$

54,121

 

Add/(deduct):
Interest expense

50

 

133

 

1,368

 

1,551

 

Income taxes

8,515

 

15,275

 

(6,746

)

17,044

 

Depreciation

4,958

 

7,312

 

16

 

12,286

 

Amortization

26

 

2,487

 

-

 

2,513

 

EBITDA

38,313

 

72,860

 

(23,658

)

87,515

 

Add/(deduct):
Intercompany interest expense/(income)

(4,648

)

(2,743

)

7,391

 

-

 

Interest (income)/expense

(121

)

(29

)

-

 

(150

)

Licensed healthcare retention bonus

10,916

 

-

 

-

 

10,916

 

Stock option expense

-

 

-

 

8,482

 

8,482

 

Long-term incentive compensation

-

 

-

 

2,514

 

2,514

 

Litigation settlements

-

 

1,756

 

-

 

1,756

 

Adjusted EBITDA $

44,460

 

$

71,844

 

$

(5,271

)

$

111,033

 

 

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

 

 
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,

2023

2022

Net income as reported $

54,121

 

$

64,169

 

Add/(deduct) pre-tax cost of:
Licensed healthcare worker retention bonus

10,916

 

-

 

Stock option expense

8,482

 

7,451

 

Long-term incentive compensation

2,514

 

1,310

 

Amortization of reacquired franchise agreements

2,352

 

2,352

 

Litigation settlements

1,756

 

-

 

Direct costs related to COVID-19

-

 

1,352

 

Add/(deduct) tax impacts:
Tax impact of the above pre-tax adjustments (1)

(5,624

)

(2,413

)

Excess tax benefits on stock compensation

(1,650

)

(1,441

)

Adjusted net income $

72,867

 

$

72,780

 

 
Diluted Earnings Per Share As Reported
Net income $

3.58

 

$

4.22

 

Average number of shares outstanding

15,110

 

15,192

 

 
Adjusted Diluted Earnings Per Share
Adjusted net income $

4.82

 

$

4.79

 

Average number of shares outstanding

15,110

 

15,192

 

 
(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

2023

2022

Net revenue ($000) (c)
Homecare $

267,050

 

$

257,636

 

Inpatient

29,093

 

26,570

 

Continuous care

19,941

 

19,578

 

Other

3,021

 

3,007

 

Subtotal $

319,105

 

$

306,791

 

Room and board, net

(2,769

)

(2,117

)

Contractual allowances

(3,108

)

(2,985

)

Medicare cap allowance

(2,750

)

(2,500

)

Net Revenue $

310,478

 

$

299,189

 

Net revenue as a percent of total before Medicare cap allowance
Homecare

83.7

 

%

84.0

 

%

Inpatient

9.1

 

8.7

 

Continuous care

6.2

 

6.4

 

Other

1.0

 

0.9

 

Subtotal

100.0

 

100.0

 

Room and board, net

(0.8

)

(0.7

)

Contractual allowances

(1.0

)

(1.0

)

Medicare cap allowance

(0.9

)

(0.8

)

Net Revenue

97.3

 

%

97.5

 

%

Days of care
Homecare

1,286,437

 

1,258,672

 

Nursing home

265,429

 

248,468

 

Respite

5,760

 

5,368

 

Subtotal routine homecare and respite

1,557,626

 

1,512,508

 

Inpatient

26,369

 

24,587

 

Continuous care

20,686

 

21,082

 

Total

1,604,681

 

1,558,177

 

 
Number of days in relevant time period

90

 

90

 

Average daily census ("ADC") (days)
Homecare

14,294

 

13,985

 

Nursing home

2,949

 

2,761

 

Respite

64

 

60

 

Subtotal routine homecare and respite

17,307

 

16,806

 

Inpatient

293

 

273

 

Continuous care

230

 

234

 

Total

17,830

 

17,313

 

Total Admissions

16,179

 

16,530

 

Total Discharges

15,405

 

16,862

 

Average length of stay (days)

99.9

 

104.8

 

Median length of stay (days)

15.0

 

14.0

 

ADC by major diagnosis
Cerebro

41.8

 

%

36.7

 

%

Neurological

19.3

 

22.9

 

Cancer

10.5

 

11.1

 

Cardio

16.0

 

15.9

 

Respiratory

7.3

 

7.4

 

Other

5.1

 

6.0

 

Total

100.0

 

%

100.0

 

%

Admissions by major diagnosis
Cerebro

26.4

 

%

22.9

 

%

Neurological

10.7

 

12.9

 

Cancer

24.7

 

24.9

 

Cardio

16.2

 

14.1

 

Respiratory

10.9

 

11.1

 

Other

11.1

 

14.1

 

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

34.7

 

33.6

 

Days of revenue outstanding-including unapplied Medicare payments

29.2

 

23.9

 

 
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, 2023 AND 2022
(unaudited)
 
(a) Included in the results of operations for 2023 are the following significant credits/(charges) which may not be indicative of ongoing operations
(in thousands):
Three Months Ended March 31, 2023
VITAS Roto-Rooter Corporate Consolidated
 
Licensed healthcare worker retention bonus $

(10,916

)

$

-

 

$

-

 

$

(10,916

)

Stock option expense

-

 

-

 

(8,482

)

(8,482

)

Long-term incentive compensation

-

 

-

 

(2,514

)

(2,514

)

Amortization of reacquired franchise agreements

-

 

(2,352

)

-

 

(2,352

)

Litigation settlements

-

 

(1,756

)

-

 

(1,756

)

Pretax impact on earnings

(10,916

)

(4,108

)

(10,996

)

(26,020

)

Excess tax benefits on stock compensation

-

 

-

 

1,650

 

1,650

 

Income tax benefit on the above

2,772

 

1,089

 

1,763

 

5,624

 

After-tax impact on earnings $

(8,144

)

$

(3,019

)

$

(7,583

)

$

(18,746

)

 
 
(b) 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

)

Long-term incentive compensation

-

 

-

 

(1,310

)

(1,310

)

Amortization of reacquired franchise agreements

-

 

(2,352

)

-

 

(2,352

)

Direct costs related to COVID-19

(391

)

(961

)

-

 

(1,352

)

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

)

 
 
(c) VITAS has 9 large (greater than 450 ADC), 17 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, 25 provider numbers have a Medicare cap cushion of greater than 10%, two provider numbers have a Medicare cap cushion between zero and 10% and three provider numbers have a Medicare cap liability.

 

Contacts

David P. Williams

(513) 762-6901

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