EX-99 2 che-20210223xex99.htm EX-99 Exhibit 99

Picture 2

CONTACT:  David P. Williams

(513) 762-6901



Chemed Reports Fourth-Quarter 2020 Results





CINCINNATI, February 23, 2021—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 fourth quarter ended December 31, 2020, versus the comparable prior-year period, as follows:



Consolidated operating results:

·

Revenue increased 2.1% to $533 million

·

GAAP Diluted Earnings-per-Share (EPS) of $6.96, an increase of 75.8%

·

Adjusted Diluted EPS of $5.13, an increase of 21.6%



VITAS segment operating results:

·

Net Patient Revenue of $332 million, a decline of 2.3%

·

Average Daily Census (ADC) of 18,718, a decline of 2.8%

·

Admissions of 17,960 an increase of 2.8%

·

Net Income, excluding certain discrete items, of $58.1 million, an increase of 16.0%

·

Adjusted EBITDA, excluding Medicare Cap, of $78.7 million, an increase of 11.7%

·

Adjusted EBITDA margin, excluding Medicare Cap, of 23.5%, an increase of 306-basis points



Roto-Rooter segment operating results:

·

Revenue of $201 million, an increase of 10.2%

·

Net Income, excluding certain discrete items, of $37.9 million, an increase of 24.6%

·

Adjusted EBITDA of $54.5 million, an increase of 24.7%

·

Adjusted EBITDA margin of 27.1%, an increase of 313-basis points





VITAS



VITAS net revenue was $332 million in the fourth quarter of 2020, which is a decline of 2.3%, when compared to the prior-year period.  This revenue decline is comprised primarily of a 2.8% decline in days-of-care, a geographically weighted average Medicare reimbursement rate increase (including the suspension of sequestration on May 1, 2020) of approximately 2.4%, and acuity mix


 

shift which then reduced the blended average Medicare rate increase approximately 255-basis points.  The combination of lower Medicare Cap and a decrease in Medicaid net room and board pass-through, increased revenue growth an additional 64-basis points in the quarter.

 

In the fourth quarter of 2020, VITAS accrued $2.5 million in Medicare Cap billing limitations.  This compares to a $4.5 million Medicare Cap billing limitation in the fourth quarter of 2019.



Of VITAS’ 30 Medicare provider numbers, 23 provider numbers currently have a Medicare Cap cushion of 10% or greater, four provider numbers have a cap cushion between 5% and 10%, one provider number has a cap cushion between 0% and 5% and two provider numbers currently have a fiscal 2021 Medicare Cap billing limitation liability.



Average revenue per patient per day in the fourth quarter of 2020 was $198.33, which, including acuity mix shift, is 7-basis points below the prior-year period. Reimbursement for routine home care and high acuity care averaged $169.83 and $997.37, respectively.  During the quarter, high acuity days-of-care were 3.4% of total days of care, 62-basis points less than the prior-year quarter.



The fourth quarter 2020 gross margin, excluding Medicare Cap, increased costs for personal protection equipment (PPE), disinfecting facilities and other costs related to operating during the pandemic, was 29.9%.  This is a 357-basis point margin improvement when compared to the fourth quarter of 2019.  This increase in gross margin is attributed to a level-of-care mix shift to higher margin routine home care and the temporary suspension of sequestration which increased reimbursement 200-basis points.



Selling, general and administrative expense was $20.3 million in the fourth quarter of 2020, which is a favorable decrease of 4.0% compared to the prior-year quarter.  Adjusted EBITDA, excluding Medicare Cap, totaled $78.7 million in the quarter, an increase of 11.7%.  Adjusted EBITDA margin, excluding Medicare Cap, was 23.5% in the quarter, which is a 306-basis point improvement when compared to the prior-year period.





Roto-Rooter



Roto-Rooter generated quarterly revenue of $201 million in the fourth quarter of 2020, an increase of $18.7 million, or 10.2%, over the prior-year quarter.  On a unit-for-unit basis, which excludes the Oakland and HSW acquisitions completed in July 2019 and September 2019, respectively, Roto-Rooter generated quarterly revenue of $183 million for the fourth quarter of 2020, an increase of 12.8% over the prior-year quarter.



Total commercial revenue in the quarter, excluding acquisitions, decreased 9.8%.  This aggregate commercial revenue decline consisted of drain cleaning revenue declining 11.6%, commercial plumbing and excavation declining 8.9%, and commercial water restoration increasing 1.0%.



Total residential revenue, excluding acquisitions, increased 20.8%.  This aggregate residential revenue growth consisted of residential drain cleaning increasing 17.1%, plumbing and excavation expanding 25.5%, and residential water restoration increasing 16.8%.


 

Roto-Rooter’s gross margin in the quarter was 51.6%, a 301-basis point increase when compared to the fourth quarter of 2019.  Adjusted EBITDA in the fourth quarter of 2020 totaled $54.5 million, an increase of 24.7%.  The Adjusted EBITDA margin in the quarter was 27.1% which is a 313-basis point increase when compared to the prior year.





Chemed Consolidated



As of December 31, 2020, Chemed had total cash and cash equivalents of $163 million and no 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 December 31, 2020, the Company had approximately $412 million of undrawn borrowing capacity under this credit agreement.



During the quarter, the Company repurchased 59,252 shares of Chemed stock for $28.5 million which equates to a cost per share of $480.52.  As of December 31, 2020, there was approximately $178 million of remaining share repurchase authorization under this plan.



Chemed restarted its share repurchase program in 2007.  Since that time, Chemed has repurchased approximately 14.5 million shares, aggregating approximately $1.4 billion at an average share cost of $95.75.  Including dividends over this period, Chemed has returned approximately $1.6 billion to shareholders.





Guidance for 2021



Historically, Chemed earnings guidance has been developed using previous years’ key operating metrics which are then modeled and projected out for the calendar year.  Critical within these projections is the understanding of traditional patterned correlations among key operating metrics. Once we complete this phase of our projected operating results, we would then modify the projections for the timing of price increases, changes in commission structure, wages, marketing programs and a variety of continuous improvement initiatives that our business segments plan on executing over the coming year.  This modeling exercise also takes into consideration anticipated industry and macro-economic issues outside of management’s control but are somewhat predictable in terms of timing and impact on our business segments’ operating results.



The COVID-19 pandemic has made accurate modeling and providing meaningful earnings guidance exceptionally challenging.  Federal, state and local government authorities are forced to make swift decisions within our healthcare system, labor pools and general economy. These governmental decisions have the potential for an immediate and material impact on VITAS and Roto-Rooter operating results.



Since the start of the pandemic, Chemed has been able to successfully navigate within this rapidly changing environment and produce operating results that we believe provide us with the ability to


 

issue earnings guidance for the 2021 calendar year.  However, this guidance should be taken with the recognition the pandemic will continue to materially disrupt all aspects of our healthcare system and general economy to such an extent that future rules, regulations and government mandates could materially impact our ability to achieve this guidance.



Statistically, patients residing in senior housing are identified as hospice appropriate earlier into their terminal prognosis and have a much greater probability of having a length of stay in excess of 90 days.   Hospice patients referred from hospitals, oncology practices and similar referral sources are generally more acute and have a significantly lower probability of lengths-of-stay exceeding 90 days.  According to data released by the National Investment Center for Seniors Housing & Care, COVID-19 continues to adversely affect senior housing occupancy, which reached another record low in the third quarter of 2020.  This reduced occupancy in senior housing has had a corresponding reduction in VITAS nursing home admissions.  Nursing home patients represented 14.7% of the VITAS fourth quarter 2020 patient census, a 310-basis point reduction when compared the fourth quarter of 2019.



VITAS anticipates continued weak occupancy and corresponding weak referrals from senior housing for the first half of 2021.  This guidance anticipates senior housing occupancy will begin to normalize to pre-pandemic occupancy starting in the second half of calendar year 2021.

 

Based upon the above discussion, VITAS 2021 revenue, prior to Medicare Cap, is estimated to decline approximately 4.0% when compared to the prior year. Average Daily Census in 2021 is estimated to decline approximately 5.0%.  Full-year Adjusted EBITDA margin, prior to Medicare Cap, is estimated to be 19.4%.  We are currently estimating $10 million for Medicare Cap billing limitations in calendar year 2021. 



Roto-Rooter is forecasted to achieve full-year 2021 revenue growth of 5% to 6%.  Roto-Rooter’s Adjusted EBITDA margin for 2021 is estimated to be 26.0%.



Based upon the above, full-year 2021 adjusted 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, is estimated to be in the range of $17.00 to $17.50.  This 2021 guidance assumes an effective corporate tax rate on adjusted earnings of 24.7%. Chemed’s 2020 reported adjusted earnings per diluted share was $18.08. 





Conference Call



Chemed will host a conference call and webcast at 10 a.m., ET, on Wednesday, February 24, 2021, 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 7865216.  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 7865216.  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 19,000 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 December 31,

 

For the Years Ended December 31,



 

2020

 

2019

 

2020

 

2019

Service revenues and sales

 

$

533,289 

 

$

522,324 

 

 

2,079,583 

 

$

1,938,555 

Cost of services provided and goods sold

 

 

335,049 

 

 

347,355 

 

 

1,378,197 

 

 

1,321,126 

Selling, general and administrative expenses (aa)

 

 

86,805 

 

 

83,291 

 

 

330,218 

 

 

305,712 

Depreciation

 

 

11,835 

 

 

11,126 

 

 

46,596 

 

 

40,870 

Amortization

 

 

2,511 

 

 

2,969 

 

 

9,987 

 

 

4,335 

Other operating (income)/expenses

 

 

(46,160)

 

 

131 

 

 

(75,095)

 

 

9,132 

Total costs and expenses

 

 

390,040 

 

 

444,872 

 

 

1,689,903 

 

 

1,681,175 

Income from operations

 

 

143,249 

 

 

77,452 

 

 

389,680 

 

 

257,380 

Interest expense

 

 

(350)

 

 

(1,133)

 

 

(2,355)

 

 

(4,535)

Other income--net (bb)

 

 

2,942 

 

 

3,276 

 

 

8,665 

 

 

8,764 

Income before income taxes

 

 

145,841 

 

 

79,595 

 

 

395,990 

 

 

261,609 

Income taxes

 

 

(32,089)

 

 

(14,015)

 

 

(76,524)

 

 

(41,686)

Net income

 

$

113,752 

 

$

65,580 

 

$

319,466 

 

$

219,923 

Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

7.12 

 

$

4.09 

 

$

20.02 

 

$

13.77 

Average number of shares outstanding

 

 

15,973 

 

 

16,022 

 

 

15,955 

 

 

15,969 

Diluted Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

6.96 

 

$

3.96 

 

$

19.48 

 

$

13.31 

Average number of shares outstanding

 

 

16,348 

 

 

16,565 

 

 

16,398 

 

 

16,527 



 

 

 

 

 

 

 

 

 

 

 

 

(aa)    Selling, general and administrative ("SG&A") expenses comprise (in thousands):



 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended December 31,

 

For the Years Ended December 31,



 

2020

 

2019

 

2020

 

2019

SG&A expenses before long-term incentive compensation

 

 

 

 

 

 

 

 

 

 

 

 

and the impact of market value adjustments related to

 

 

 

 

 

 

 

 

 

 

 

 

deferred compensation plans

 

$

80,551 

 

$

77,053 

 

$

313,348 

 

$

289,828 

Long-term incentive compensation

 

 

3,414 

 

 

3,078 

 

 

8,937 

 

 

7,630 

Market value adjustments related to deferred

 

 

 

 

 

 

 

 

 

 

 

 

compensation trusts

 

 

2,840 

 

 

3,160 

 

 

7,933 

 

 

8,254 

Total SG&A expenses

 

$

86,805 

 

$

83,291 

 

$

330,218 

 

$

305,712 



 

 

 

 

 

 

 

 

 

 

 

 

(bb)    Other income--net comprises (in thousands):

 

 

 

 

 

 



 

Three Months Ended December 31,

 

For the Years Ended December 31,



 

2020

 

2019

 

2020

 

2019

Market value adjustments related to deferred

 

 

 

 

 

 

 

 

 

 

 

 

compensation trusts

 

$

2,840 

 

$

3,160 

 

$

7,933 

 

$

8,254 

Interest income

 

 

109 

 

 

126 

 

 

757 

 

 

513 

Other

 

 

(7)

 

 

(10)

 

 

(25)

 

 

(3)

Total other income--net

 

$

2,942 

 

$

3,276 

 

$

8,665 

 

$

8,764 




 





 

 

 

 

 

 

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)(unaudited)



 

 

 

 

 

 



 

December 31,



 

2020

 

2019

Assets

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

162,675 

 

$

6,158 

Accounts receivable less allowances

 

 

126,853 

 

 

143,827 

Inventories

 

 

7,095 

 

 

7,462 

Prepaid income taxes

 

 

6,603 

 

 

10,074 

Prepaid expenses

 

 

26,177 

 

 

23,150 

Total current assets

 

 

329,403 

 

 

190,671 

Investments of deferred compensation plans held in trust

 

 

88,811 

 

 

77,446 

Properties and equipment, at cost less accumulated depreciation

 

 

187,820 

 

 

175,763 

Lease right of use asset

 

 

123,448 

 

 

111,652 

Identifiable intangible assets less accumulated amortization

 

 

118,085 

 

 

126,370 

Goodwill

 

 

578,585 

 

 

577,367 

Other assets

 

 

8,759 

 

 

9,048 

Total Assets

 

$

1,434,911 

 

$

1,268,317 

Liabilities

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

 

$

54,234 

 

$

51,101 

Income taxes

 

 

9,464 

 

 

131 

Accrued insurance

 

 

54,703 

 

 

50,328 

Accrued compensation

 

 

91,282 

 

 

70,814 

Accrued legal

 

 

10,632 

 

 

6,941 

Short-term lease liability

 

 

36,200 

 

 

39,280 

Other current liabilities

 

 

42,593 

 

 

43,625 

Total current liabilities

 

 

299,108 

 

 

262,220 

Deferred income taxes

 

 

20,664 

 

 

18,504 

Long-term debt

 

 

 -

 

 

90,000 

Deferred compensation liabilities

 

 

88,456 

 

 

76,446 

Long-term lease liability

 

 

99,210 

 

 

86,656 

Other liabilities

 

 

26,273 

 

 

7,883 

Total Liabilities

 

 

533,711 

 

 

541,709 

Stockholders' Equity

 

 

 

 

 

 

Capital stock

 

 

36,259 

 

 

35,811 

Paid-in capital

 

 

961,404 

 

 

860,671 

Retained earnings

 

 

1,723,777 

 

 

1,425,752 

Treasury stock, at cost

 

 

(1,822,579)

 

 

(1,597,940)

Deferred compensation payable in Company stock

 

 

2,339 

 

 

2,314 

Total Stockholders' Equity

 

 

901,200 

 

 

726,608 

Total Liabilities and Stockholders' Equity

 

$

1,434,911 

 

$

1,268,317 






 









 

 

 

 

 

 

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)(unaudited)



 

 

 

 

 

 



 

For the Years Ended December 31,



 

2020

 

2019

Cash Flows from Operating Activities

 

 

 

 

 

 

Net income

 

$

319,466 

 

$

219,923 

Adjustments to reconcile net income to net cash provided

 

 

 

 

 

 

by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

56,583 

 

 

45,205 

Stock option expense

 

 

18,422 

 

 

14,831 

Deferred payroll taxes

 

 

36,350 

 

 

 -

Noncash long-term incentive compensation

 

 

7,208 

 

 

5,740 

Litigation settlement

 

 

2,684 

 

 

6,000 

Deferred tax provision/(benefit)

 

 

1,433 

 

 

(2,770)

Noncash directors' compensation

 

 

1,171 

 

 

767 

Amortization of debt issuance costs

 

 

306 

 

 

306 

Asset impairment loss

 

 

 -

 

 

2,266 

Changes in operating assets and liabilities, excluding

 

 

 

 

 

 

amounts acquired in business combinations:

 

 

 

 

 

 

Decrease/(increase) in accounts receivable

 

 

12,773 

 

 

(19,247)

Decrease/(increase) in inventories

 

 

367 

 

 

(1,757)

Increase in prepaid expenses

 

 

(3,027)

 

 

(3,491)

Increase in accounts payable and

 

 

 

 

 

 

other current liabilities

 

 

19,096 

 

 

28,417 

Change in current income taxes

 

 

13,525 

 

 

161 

Net change in lease assets and liabilities

 

 

1,206 

 

 

3,108 

Increase in other assets

 

 

(11,834)

 

 

(11,963)

Increase in other liabilities

 

 

12,323 

 

 

12,354 

Other sources

 

 

1,237 

 

 

1,399 

Net cash provided by operating activities

 

 

489,289 

 

 

301,249 

Cash Flows from Investing Activities

 

 

 

 

 

 

Capital expenditures

 

   

(58,831)

 

   

(53,022)

Business combinations

 

 

(3,600)

 

 

(138,010)

Other sources

 

 

871 

 

 

272 

Net cash used by investing activities

 

 

(61,560)

 

 

(190,760)

Cash Flows from Financing Activities

 

 

 

 

 

 

Payments on revolving line of credit

 

 

(264,900)

 

 

(482,100)

Proceeds from revolving line of credit

 

 

174,900 

 

 

482,900 

Purchases of treasury stock

 

 

(175,594)

 

 

(92,631)

Proceeds from exercise of stock options

 

 

50,382 

 

 

34,380 

Capital stock surrendered to pay taxes on stock-based compensation

 

 

(25,328)

 

 

(28,474)

Dividends paid

 

 

(21,079)

 

 

(19,788)

Change in cash overdrafts payable

 

 

(9,849)

 

 

(3,927)

Other sources

 

 

256 

 

 

478 

Net cash used by financing activities

 

 

(271,212)

 

 

(109,162)

Increase in Cash and Cash Equivalents

 

 

156,517 

 

 

1,327 

Cash and cash equivalents at beginning of year

 

 

6,158 

 

 

4,831 

Cash and cash equivalents at end of year

 

$

162,675 

 

$

6,158 










 





 

 

 

 

 

 

 

 

 

 

 

 

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATING STATEMENTS OF INCOME

FOR THE THREE MONTHS ENDED DECEMBER 31, 2020 AND 2019

(in thousands)(unaudited)



 

 

 

Roto-

 

 

 

Chemed



 

VITAS

 

Rooter

 

Corporate

 

Consolidated

2020 (a)

 

 

 

 

 

 

 

 

 

 

 

 

Service revenues and sales

 

$

332,190 

 

$

201,099 

 

$

 -

 

$

533,289 

Cost of services provided and goods sold

 

 

237,812 

 

 

97,237 

 

 

 -

 

 

335,049 

Selling, general and administrative expenses

 

 

20,305 

 

 

49,679 

 

 

16,821 

 

 

86,805 

Depreciation

 

 

5,546 

 

 

6,257 

 

 

32 

 

 

11,835 

Amortization

 

 

18 

 

 

2,493 

 

 

 -

 

 

2,511 

Other operating expense/(income)

 

 

(46,929)

 

 

769 

 

 

 -

 

 

(46,160)

Total costs and expenses

 

 

216,752 

 

 

156,435 

 

 

16,853 

 

 

390,040 

Income/(loss) from operations

 

 

115,438 

 

 

44,664 

 

 

(16,853)

 

 

143,249 

Interest expense

 

 

(29)

 

 

(68)

 

 

(253)

 

 

(350)

Intercompany interest income/(expense)

 

 

5,434 

 

 

1,834 

 

 

(7,268)

 

 

 -

Other income—net

 

 

95 

 

 

 

 

2,840 

 

 

2,942 

Income/(loss) before income taxes

 

 

120,938 

 

 

46,437 

 

 

(21,534)

 

 

145,841 

Income taxes

 

 

(29,419)

 

 

(11,007)

 

 

8,337 

 

 

(32,089)

Net income/(loss)

 

$

91,519 

 

$

35,430 

 

$

(13,197)

 

$

113,752 



 

 

 

 

 

 

 

 

 

 

 

 

2019 (b)

 

 

 

 

 

 

 

 

 

 

 

 

Service revenues and sales

 

$

339,905 

 

$

182,419 

 

$

 -

 

$

522,324 

Cost of services provided and goods sold

 

 

253,659 

 

 

93,696 

 

 

 -

 

 

347,355 

Selling, general and administrative expenses

 

 

21,162 

 

 

46,198 

 

 

15,931 

 

 

83,291 

Depreciation

 

 

5,341 

 

 

5,747 

 

 

38 

 

 

11,126 

Amortization

 

 

18 

 

 

2,951 

 

 

 -

 

 

2,969 

Other operating expense

 

 

25 

 

 

106 

 

 

 -

 

 

131 

Total costs and expenses

 

 

280,205 

 

 

148,698 

 

 

15,969 

 

 

444,872 

Income/(loss) from operations

 

 

59,700 

 

 

33,721 

 

 

(15,969)

 

 

77,452 

Interest expense

 

 

(19)

 

 

(72)

 

 

(1,042)

 

 

(1,133)

Intercompany interest income/(expense)

 

 

4,740 

 

 

1,543 

 

 

(6,283)

 

 

 -

Other income—net

 

 

76 

 

 

40 

 

 

3,160 

 

 

3,276 

Income/(loss) before income taxes

 

 

64,497 

 

 

35,232 

 

 

(20,134)

 

 

79,595 

Income taxes

 

 

(15,075)

 

 

(7,823)

 

 

8,883 

 

 

(14,015)

Net income/(loss)

 

$

49,422 

 

$

27,409 

 

$

(11,251)

 

$

65,580 



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

The "Footnotes to Financial Statements" are integral parts of this financial information.




 





 

 

 

 

 

 

 

 

 

 

 

 

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATING STATEMENTS OF INCOME

FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019

(in thousands)(unaudited)



 

 

 

 

 

 

 

 

 



 

 

 

Roto-

 

 

 

Chemed



 

VITAS

 

Rooter

 

Corporate

 

Consolidated

2020 (a)

 

 

 

 

 

 

 

 

 

 

 

 

Service revenues and sales

 

$

1,334,667 

 

$

744,916 

 

$

 -

 

$

2,079,583 

Cost of services provided and goods sold

 

 

1,010,693 

 

 

367,504 

 

 

 -

 

 

1,378,197 

Selling, general and administrative expenses

 

 

85,445 

 

 

188,268 

 

 

56,505 

 

 

330,218 

Depreciation

 

 

22,168 

 

 

24,292 

 

 

136 

 

 

46,596 

Amortization

 

 

71 

 

 

9,916 

 

 

 -

 

 

9,987 

Other operating (income)/expense

 

 

(78,590)

 

 

3,495 

 

 

 -

 

 

(75,095)

Total costs and expenses

 

 

1,039,787 

 

 

593,475 

 

 

56,641 

 

 

1,689,903 

Income/(loss) from operations

 

 

294,880 

 

 

151,441 

 

 

(56,641)

 

 

389,680 

Interest expense

 

 

(166)

 

 

(340)

 

 

(1,849)

 

 

(2,355)

Intercompany interest income/(expense)

 

 

19,897 

 

 

6,256 

 

 

(26,153)

 

 

 -

Other income—net

 

 

644 

 

 

75 

 

 

7,946 

 

 

8,665 

Income/(loss) before income taxes

 

 

315,255 

 

 

157,432 

 

 

(76,697)

 

 

395,990 

Income taxes

 

 

(76,473)

 

 

(37,038)

 

 

36,987 

 

 

(76,524)

Net income/(loss)

 

$

238,782 

 

$

120,394 

 

$

(39,710)

 

$

319,466 



 

 

 

 

 

 

 

 

 

 

 

 

2019 (b)

 

 

 

 

 

 

 

 

 

 

 

 

Service revenues and sales

 

$

1,281,184 

 

$

657,371 

 

$

 -

 

$

1,938,555 

Cost of services provided and goods sold

 

 

982,056 

 

 

339,070 

 

 

 -

 

 

1,321,126 

Selling, general and administrative expenses

 

 

86,345 

 

 

166,934 

 

 

52,433 

 

 

305,712 

Depreciation

 

 

19,984 

 

 

20,730 

 

 

156 

 

 

40,870 

Amortization

 

 

71 

 

 

4,264 

 

 

 -

 

 

4,335 

Other operating expense

 

 

6,546 

 

 

320 

 

 

2,266 

 

 

9,132 

Total costs and expenses

 

 

1,095,002 

 

 

531,318 

 

 

54,855 

 

 

1,681,175 

Income/(loss) from operations

 

 

186,182 

 

 

126,053 

 

 

(54,855)

 

 

257,380 

Interest expense

 

 

(169)

 

 

(345)

 

 

(4,021)

 

 

(4,535)

Intercompany interest income/(expense)

 

 

18,135 

 

 

8,152 

 

 

(26,287)

 

 

 -

Other income—net

 

 

385 

 

 

126 

 

 

8,253 

 

 

8,764 

Income/(loss) before income taxes

 

 

204,533 

 

 

133,986 

 

 

(76,910)

 

 

261,609 

Income taxes

 

 

(48,711)

 

 

(30,276)

 

 

37,301 

 

 

(41,686)

Net income/(loss)

 

$

155,822 

 

$

103,710 

 

$

(39,609)

 

$

219,923 



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

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 DECEMBER 31, 2020 AND 2019

(in thousands)(unaudited)



 

 

 

 

 

 

 

Chemed



 

VITAS

 

Roto-Rooter

 

Corporate

 

Consolidated

2020

 

 

 

 

 

 

 

 

 

 

 

 

Net income/(loss)

 

$

91,519 

 

$

35,430 

 

$

(13,197)

 

$

113,752 

Add/(deduct):

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

29 

 

 

68 

 

 

253 

 

 

350 

Income taxes

 

 

29,419 

 

 

11,007 

 

 

(8,337)

 

 

32,089 

Depreciation

 

 

5,546 

 

 

6,257 

 

 

32 

 

 

11,835 

Amortization

 

 

18 

 

 

2,493 

 

 

 -

 

 

2,511 

EBITDA

 

 

126,531 

 

 

55,255 

 

 

(21,249)

 

 

160,537 

Add/(deduct):

 

 

 

 

 

 

 

 

 

 

 

 

Intercompany interest expense/(income)

 

 

(5,434)

 

 

(1,834)

 

 

7,268 

 

 

 -

Interest income

 

 

(102)

 

 

(7)

 

 

 -

 

 

(109)

CARES Act grant

 

 

(48,041)

 

 

 -

 

 

 -

 

 

(48,041)

Direct costs related to COVID-19

 

 

3,257 

 

 

520 

 

 

 -

 

 

3,777 

Stock option expense

 

 

 -

 

 

 -

 

 

5,127 

 

 

5,127 

Long-term incentive compensation

 

 

 -

 

 

 -

 

 

3,413 

 

 

3,413 

Litigation settlement

 

 

 -

 

 

544 

 

 

 -

 

 

544 

Adjusted EBITDA

 

$

76,211 

 

$

54,478 

 

$

(5,441)

 

$

125,248 



 

 

 

 

 

 

 

 

 

 

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

Net income/(loss)

 

$

49,422 

 

$

27,409 

 

$

(11,251)

 

$

65,580 

Add/(deduct):

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

19 

 

 

72 

 

 

1,042 

 

 

1,133 

Income taxes

 

 

15,075 

 

 

7,823 

 

 

(8,883)

 

 

14,015 

Depreciation

 

 

5,341 

 

 

5,747 

 

 

38 

 

 

11,126 

Amortization

 

 

18 

 

 

2,951 

 

 

 -

 

 

2,969 

EBITDA

 

 

69,875 

 

 

44,002 

 

 

(19,054)

 

 

94,823 

Add/(deduct):

 

 

 

 

 

 

 

 

 

 

 

 

Intercompany interest expense/(income)

 

 

(4,740)

 

 

(1,543)

 

 

6,283 

 

 

 -

Interest income

 

 

(84)

 

 

(42)

 

 

 -

 

 

(126)

Stock option expense

 

 

 -

 

 

 -

 

 

4,102 

 

 

4,102 

Long-term incentive compensation

 

 

 -

 

 

 -

 

 

3,079 

 

 

3,079 

Acquisition expense

 

 

 -

 

 

1,286 

 

 

50 

 

 

1,336 

Medicare cap sequestration adjustment

 

 

919 

 

 

 -

 

 

 -

 

 

919 

Adjusted EBITDA

 

$

65,970 

 

$

43,703 

 

$

(5,540)

 

$

104,133 



 

 

 

 

 

 

 

 

 

 

 

 

The "Footnotes to Financial Statements" are integral parts of this financial information.









 

 

 

 

 

 

 

 

 

 

 

 


 



CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATING SUMMARIES OF EBITDA

FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019

(in thousands)(unaudited)



 

 

 

 

 

 

 

 

 

 

Chemed



 

VITAS

 

Roto-Rooter

 

Corporate

 

Consolidated

2020

 

 

 

 

 

 

 

 

 

 

 

 

Net income/(loss)

 

$

238,782 

 

$

120,394 

 

$

(39,710)

 

$

319,466 

Add/(deduct):

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

166 

 

 

340 

 

 

1,849 

 

 

2,355 

Income taxes

 

 

76,473 

 

 

37,038 

 

 

(36,987)

 

 

76,524 

Depreciation

 

 

22,168 

 

 

24,292 

 

 

136 

 

 

46,596 

Amortization

 

 

71 

 

 

9,916 

 

 

 -

 

 

9,987 

EBITDA

 

 

337,660 

 

 

191,980 

 

 

(74,712)

 

 

454,928 

Add/(deduct):

 

 

 

 

 

 

 

 

 

 

 

 

Intercompany interest expense/(income)

 

 

(19,897)

 

 

(6,256)

 

 

26,153 

 

 

 -

Interest income

 

 

(668)

 

 

(76)

 

 

(13)

 

 

(757)

CARES Act grant

 

 

(80,225)

 

 

 -

 

 

 -

 

 

(80,225)

Direct costs related to COVID-19

 

 

35,441 

 

 

3,819 

 

 

 -

 

 

39,260 

Stock option expense

 

 

 -

 

 

 -

 

 

18,422 

 

 

18,422 

Long-term incentive compensation

 

 

 -

 

 

 -

 

 

8,937 

 

 

8,937 

Litigation settlement costs

 

 

 -

 

 

3,639 

 

 

 -

 

 

3,639 

Medicare cap sequestration adjustment

 

 

619 

 

 

 -

 

 

 -

 

 

619 

Adjusted EBITDA

 

$

272,930 

 

$

193,106 

 

$

(21,213)

 

$

444,823 

2019