Chemed Reports First-Quarter 2022 Results
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Chemed Reports First-Quarter 2022 Results

CINCINNATI--(BUSINESS WIRE)--Apr. 26, 2022-- Chemed Corporation (Chemed) (NYSE: CHE), which operates VITAS Healthcare Corporation (VITAS), one of the nation’s largest providers of end-of-life care, and Roto-Rooter, the nation’s largest commercial and residential plumbing and drain cleaning services provider, reported financial results for its first quarter ended March 31, 2022, versus the comparable prior-year period, as follows:

Consolidated operating results:

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

VITAS segment operating results:

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

Roto-Rooter segment operating results:

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

VITAS

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

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

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

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

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

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

Roto-Rooter

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

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

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

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

Chemed Consolidated

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

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

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

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

Guidance for 2022

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

Conference Call

Chemed will host a conference call and webcast at 10 a.m., ET, on Wednesday, April 27, 2022, to discuss the Company's quarterly results and to provide an update on its business. The dial-in number for the conference call is (844) 743-2500 for U.S. and Canadian participants and +1 (661) 378-9533 for international participants. The Conference ID is 1869526. A live webcast of the call can be accessed on Chemed's website at www.chemed.com by clicking on Investor Relations Home.

A taped replay of the conference call will be available beginning approximately 24 hours after the call's conclusion. It can be accessed by dialing (855) 859-2056 for U.S. and Canadian callers and +1 (404) 537-3406 for international callers and will be available for one week following the live call. The replay Conference ID is 1869526. An archived webcast will also be available at www.chemed.com.

Chemed Corporation operates in the healthcare field through its VITAS Healthcare Corporation subsidiary. VITAS provides daily hospice services to approximately 17,300 patients with severe, life-limiting illnesses. This type of care is focused on making the terminally ill patient's final days as comfortable and pain-free as possible.

Chemed operates in the residential and commercial plumbing and drain cleaning industry under the brand name Roto-Rooter. Roto-Rooter provides plumbing, drain cleaning, and water cleanup services through company-owned branches, independent contractors and franchisees in the United States and Canada. Roto-Rooter also has licensed master franchisees in the republics of Indonesia and Singapore, and the Philippines.

This press release contains information about Chemed’s EBITDA, Adjusted EBITDA and Adjusted Diluted EPS, which are not measures derived in accordance with GAAP and which exclude components that are important to understanding Chemed’s financial performance. In reporting its operating results, Chemed provides EBITDA, Adjusted EBITDA and Adjusted Diluted EPS measures to help investors and others evaluate the Company’s operating results, compare its operating performance with that of similar companies that have different capital structures and evaluate its ability to meet its future debt service, capital expenditures and working capital requirements. Chemed’s management similarly uses EBITDA, Adjusted EBITDA and Adjusted Diluted EPS to assist it in evaluating the performance of the Company across fiscal periods and in assessing how its performance compares to its peer companies. These measures also help Chemed’s management to estimate the resources required to meet Chemed’s future financial obligations and expenditures. Chemed’s EBITDA, Adjusted EBITDA and Adjusted Diluted EPS should not be considered in isolation or as a substitute for comparable measures calculated and presented in accordance with GAAP. We calculated Adjusted EBITDA Margin by dividing Adjusted EBITDA by service revenue and sales. A reconciliation of Chemed’s net income to its EBITDA, Adjusted EBITDA and Adjusted Diluted EPS is presented in the tables following the text of this press release.

Forward-Looking Statements

Certain statements contained in this press release and the accompanying tables are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "hope," "anticipate," "plan" and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. Chemed does not undertake and specifically disclaims any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These statements are based on current expectations and assumptions and involve various risks and uncertainties, which could cause Chemed's actual results to differ from those expressed in such forward-looking statements.

These risks and uncertainties arise from, among other things, possible changes in regulations governing the hospice care or plumbing and drain cleaning industries; periodic changes in reimbursement levels and procedures under Medicare and Medicaid programs; difficulties predicting patient length of stay and estimating potential Medicare reimbursement obligations; challenges inherent in Chemed's growth strategy; the current shortage of qualified nurses, other healthcare professionals and licensed plumbing and drain cleaning technicians; Chemed’s dependence on patient referral sources; and other factors detailed under the caption "Description of Business by Segment" or "Risk Factors" in Chemed’s most recent report on form 10-Q or 10-K and its other filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on such forward-looking statements and there are no assurances that the matters contained in such statements will be achieved.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)(unaudited)
 

Three Months Ended March 31,

2022

2021

Service revenues and sales $

530,549

 

$

527,360

 

Cost of services provided and goods sold

336,552

 

340,473

 

Selling, general and administrative expenses (aa)

89,954

 

91,599

 

Depreciation

12,138

 

11,715

 

Amortization

2,518

 

2,510

 

Other operating expense

13

 

622

 

Total costs and expenses

441,175

 

446,919

 

Income from operations

89,374

 

80,441

 

Interest expense

(810

)

(381

)

Other (expense)/income--net (bb)

(3,862

)

3,602

 

Income before income taxes

84,702

 

83,662

 

Income taxes

(20,533

)

(18,262

)

Net income $

64,169

 

$

65,400

 

Earnings Per Share
Net income $

4.28

 

$

4.08

 

Average number of shares outstanding

14,986

 

16,010

 

Diluted Earnings Per Share
Net income $

4.22

 

$

4.01

 

Average number of shares outstanding

15,192

 

16,310

 

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

Three Months Ended March 31,

2022

 

2021

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

92,578

 

$

86,668

 

Market value adjustments related to deferred
compensation trusts

(3,934

)

3,038

 

Long-term incentive compensation

1,310

 

1,893

 

Total SG&A expenses $

89,954

 

$

91,599

 

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

Three Months Ended March 31,

2022

 

2021

Market value adjustments related to deferred
compensation trusts $

(3,934

)

$

3,038

 

Interest income

73

 

92

 

Other

(1

)

472

 

Total other (expense)/income--net $

(3,862

)

$

3,602

 

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

March 31,

2022

2021

Assets
Current assets
Cash and cash equivalents $

18,160

 

$

210,156

 

Accounts receivable less allowances

117,319

 

104,748

 

Inventories

10,540

 

6,777

 

Prepaid income taxes

9,143

 

3,518

 

Prepaid expenses

29,589

 

21,775

 

Total current assets

184,751

 

346,974

 

Investments of deferred compensation plans held in trust

100,139

 

93,705

 

Properties and equipment, at cost less accumulated depreciation

192,405

 

190,154

 

Lease right of use asset

134,169

 

124,104

 

Identifiable intangible assets less accumulated amortization

106,367

 

115,517

 

Goodwill

579,704

 

578,618

 

Other assets

8,222

 

9,061

 

Total Assets $

1,305,757

 

$

1,458,133

 

Liabilities
Current liabilities
Accounts payable $

64,710

 

$

55,447

 

Income taxes

15,390

 

24,774

 

Accrued insurance

58,952

 

57,533

 

Accrued compensation

62,205

 

73,907

 

Accrued legal

871

 

2,102

 

Short-term lease liability

38,856

 

37,897

 

Other current liabilities

38,667

 

38,555

 

Total current liabilities

279,651

 

290,215

 

Deferred income taxes

19,136

 

19,733

 

Long-term debt

120,000

 

-

 

Deferred compensation liabilities

100,812

 

93,755

 

Long-term lease liability

109,121

 

98,813

 

Other liabilities

10,332

 

26,733

 

Total Liabilities

639,052

 

529,249

 

Stockholders' Equity
Capital stock

36,579

 

36,345

 

Paid-in capital

1,064,448

 

982,739

 

Retained earnings

2,029,158

 

1,783,740

 

Treasury stock, at cost

(2,465,716

)

(1,876,315

)

Deferred compensation payable in Company stock

2,236

 

2,375

 

Total Stockholders' Equity

666,705

 

928,884

 

Total Liabilities and Stockholders' Equity $

1,305,757

 

$

1,458,133

 

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

2022

2021

Cash Flows from Operating Activities
Net income $

64,169

 

$

65,400

 

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

14,656

 

14,225

 

Stock option expense

7,451

 

6,106

 

Benefit for deferred payroll taxes

(4,047

)

(930

)

Noncash long-term incentive compensation

1,185

 

1,642

 

Amortization of debt issuance costs

76

 

76

 

Payments on previously accrued litigation settlements

-

 

(8,490

)

Changes in operating assets and liabilities, excluding
amounts acquired in business combinations:
Decrease in accounts receivable

19,610

 

22,773

 

(Increase)/decrease in inventories

(431

)

318

 

Decrease in prepaid expenses

3,099

 

4,402

 

Decrease in accounts payable and
other current liabilities

(30,332

)

(18,369

)

Change in current income taxes

23,530

 

18,395

 

Net change in lease assets and liabilities

743

 

(24

)

Increase in other assets

(1,562

)

(5,274

)

Increase in other liabilities

2,958

 

5,759

 

Other (uses)/sources

(15

)

710

 

Net cash provided by operating activities

101,090

 

106,719

 

Cash Flows from Investing Activities
Capital expenditures

(12,649

)

(17,697

)

Business combinations, net of cash acquired

(1,650

)

-

 

Other sources

351

 

274

 

Net cash used by investing activities

(13,948

)

(17,423

)

Cash Flows from Financing Activities
Payments on revolving line of credit

(86,500

)

-

 

Proceeds from revolving line of credit

21,500

 

-

 

Purchases of treasury stock

(27,794

)

(41,107

)

Proceeds from exercise of stock options

7,692

 

11,026

 

Change in cash overdrafts payable

(7,051

)

-

 

Dividends paid

(5,322

)

(5,437

)

Capital stock surrendered to pay taxes on stock-based compensation

(4,893

)

(6,613

)

Other sources

491

 

316

 

Net cash used by financing activities

(101,877

)

(41,815

)

(Decrease)/Increase in Cash and Cash Equivalents

(14,735

)

47,481

 

Cash and cash equivalents at beginning of year

32,895

 

162,675

 

Cash and cash equivalents at end of year $

18,160

 

$

210,156

 

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 2022 AND 2021
(in thousands)(unaudited)
Chemed
VITAS Roto-Rooter Corporate Consolidated
2022 (a)
Service revenues and sales $

299,189

 

$

231,360

 

$

-

 

$

530,549

 

Cost of services provided and goods sold

227,240

 

109,312

 

-

 

336,552

 

Selling, general and administrative expenses

22,453

 

56,954

 

10,547

 

89,954

 

Depreciation

5,551

 

6,569

 

18

 

12,138

 

Amortization

24

 

2,494

 

-

 

2,518

 

Other operating expense/(income)

(148

)

161

 

-

 

13

 

Total costs and expenses

255,120

 

175,490

 

10,565

 

441,175

 

Income/(loss) from operations

44,069

 

55,870

 

(10,565

)

89,374

 

Interest expense

(52

)

(115

)

(643

)

(810

)

Intercompany interest income/(expense)

4,656

 

2,176

 

(6,832

)

-

 

Other income—net

37

 

35

 

(3,934

)

(3,862

)

Income/(loss) before income taxes

48,710

 

57,966

 

(21,974

)

84,702

 

Income taxes

(12,229

)

(14,029

)

5,725

 

(20,533

)

Net income/(loss) $

36,481

 

$

43,937

 

$

(16,249

)

$

64,169

 

 
2021 (b)
Service revenues and sales $

315,788

 

$

211,572

 

$

-

 

$

527,360

 

Cost of services provided and goods sold

238,667

 

101,806

 

-

 

340,473

 

Selling, general and administrative expenses

22,090

 

53,322

 

16,187

 

91,599

 

Depreciation

5,338

 

6,353

 

24

 

11,715

 

Amortization

18

 

2,492

 

-

 

2,510

 

Other operating expense

502

 

120

 

-

 

622

 

Total costs and expenses

266,615

 

164,093

 

16,211

 

446,919

 

Income/(loss) from operations

49,173

 

47,479

 

(16,211

)

80,441

 

Interest expense

(42

)

(89

)

(250

)

(381

)

Intercompany interest income/(expense)

4,525

 

1,620

 

(6,145

)

-

 

Other income—net

533

 

31

 

3,038

 

3,602

 

Income/(loss) before income taxes

54,189

 

49,041

 

(19,568

)

83,662

 

Income taxes

(13,419

)

(11,864

)

7,021

 

(18,262

)

Net income/(loss) $

40,770

 

$

37,177

 

$

(12,547

)

$

65,400

 

 
The "Footnotes to Financial Statements" are integral parts of this financial information.
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING SUMMARIES OF EBITDA
FOR THE THREE MONTHS ENDED MARCH 31, 2022 AND 2021
(in thousands)(unaudited)
Chemed
VITAS Roto-Rooter Corporate Consolidated

2022

Net income/(loss) $

36,481

 

$

43,937

 

$

(16,249

)

$

64,169

 

Add/(deduct):
Interest expense

52

 

115

 

643

 

810

 

Income taxes

12,229

 

14,029

 

(5,725

)

20,533

 

Depreciation

5,551

 

6,569

 

18

 

12,138

 

Amortization

24

 

2,494

 

-

 

2,518

 

EBITDA

54,337

 

67,144

 

(21,313

)

100,168

 

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

(4,656

)

(2,176

)

6,832

 

-

 

Interest income

(37

)

(36

)

-

 

(73

)

Stock option expense

-

 

-

 

7,451

 

7,451

 

Direct costs related to COVID-19

391

 

961

 

-

 

1,352

 

Long-term incentive compensation

-

 

-

 

1,310

 

1,310

 

Adjusted EBITDA $

50,035

 

$

65,893

 

$

(5,720

)

$

110,208

 

 

2021

Net income/(loss) $

40,770

 

$

37,177

 

$

(12,547

)

$

65,400

 

Add/(deduct):
Interest expense

42

 

89

 

250

 

381

 

Income taxes

13,419

 

11,864

 

(7,021

)

18,262

 

Depreciation

5,338

 

6,353

 

24

 

11,715

 

Amortization

18

 

2,492

 

-

 

2,510

 

EBITDA

59,587

 

57,975

 

(19,294

)

98,268

 

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

(4,525

)

(1,620

)

6,145

 

-

 

Interest income

(61

)

(31

)

-

 

(92

)

Stock option expense

-

 

-

 

6,106

 

6,106

 

Direct costs related to COVID-19

1,753

 

553

 

38

 

2,344

 

Long-term incentive compensation

-

 

-

 

1,893

 

1,893

 

Adjusted EBITDA $

56,754

 

$

56,877

 

$

(5,112

)

$

108,519

 

 
The "Footnotes to Financial Statements" are integral parts of this financial information.
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
RECONCILIATION OF ADJUSTED NET INCOME
(in thousands, except per share data)(unaudited)
 
 
Three Months Ended March 31,

2022

2021

Net income as reported $

64,169

 

$

65,400

 

Add/(deduct) pre-tax cost of:
Stock option expense

7,451

 

6,106

 

Amortization of reacquired franchise agreements

2,352

 

2,352

 

Direct costs related to COVID-19

1,352

 

2,344

 

Long-term incentive compensation

1,310

 

1,893

 

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

(2,413

)

(2,487

)

Excess tax benefits on stock compensation

(1,441

)

(3,238

)

Adjusted net income $

72,780

 

$

72,370

 

 
Diluted Earnings Per Share As Reported
Net income $

4.22

 

$

4.01

 

Average number of shares outstanding

15,192

 

16,310

 

 
Adjusted Diluted Earnings Per Share
Adjusted net income $

4.79

 

$

4.44

 

Average number of shares outstanding

15,192

 

16,310

 

(1) The tax impact of pre-tax adjustments was calculated using the effective tax rate of the operating unit for which each adjustment is associated.
 
The "Footnotes to Financial Statements" are integral parts of this financial information.
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
OPERATING STATISTICS FOR VITAS SEGMENT
(unaudited)
 
Three Months Ended March 31,
OPERATING STATISTICS

2022

2021

Net revenue ($000) (c)
Homecare $

257,636

 

$

263,754

 

Inpatient

26,570

 

29,156

 

Continuous care

19,578

 

27,349

 

Other

3,007

 

2,938

 

Subtotal $

306,791

 

$

323,197

 

Room and board, net

(2,117

)

(2,665

)

Contractual allowances

(2,985

)

(3,244

)

Medicare cap allowance

(2,500

)

(1,500

)

Net Revenue $

299,189

 

$

315,788

 

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

84.0

 

%

81.6

 

%

Inpatient

8.7

 

9.0

 

Continuous care

6.4

 

8.5

 

Other

0.9

 

0.9

 

Subtotal

100.0

 

100.0

 

Room and board, net

(0.7

)

(0.8

)

Contractual allowances

(1.0

)

(1.0

)

Medicare cap allowance

(0.8

)

(0.5

)

Net Revenue

97.5

 

%

97.7

 

%

Days of care
Homecare

1,258,672

 

1,329,892

 

Nursing home

248,468

 

232,783

 

Respite

5,368

 

4,840

 

Subtotal routine homecare and respite

1,512,508

 

1,567,515

 

Inpatient

24,587

 

27,674

 

Continuous care

21,082

 

29,300

 

Total

1,558,177

 

1,624,489

 

 
Number of days in relevant time period

90

 

90

 

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

13,985

 

14,777

 

Nursing home

2,761

 

2,586

 

Respite

60

 

54

 

Subtotal routine homecare and respite

16,806

 

17,417

 

Inpatient

273

 

307

 

Continuous care

234

 

326

 

Total

17,313

 

18,050

 

Total Admissions

16,530

 

18,135

 

Total Discharges

16,862

 

18,516

 

Average length of stay (days)

104.8

 

94.4

 

Median length of stay (days)

14.0

 

12.0

 

ADC by major diagnosis
Cerebro

36.7

 

%

35.9

 

%

Neurological

22.9

 

22.1

 

Cancer

11.1

 

12.2

 

Cardio

15.9

 

15.8

 

Respiratory

7.4

 

7.8

 

Other

6.0

 

6.2

 

Total

100.0

 

%

100.0

 

%

Admissions by major diagnosis
Cerebro

22.9

 

%

21.4

 

%

Neurological

12.9

 

12.3

 

Cancer

24.9

 

25.0

 

Cardio

14.1

 

14.2

 

Respiratory

11.1

 

11.0

 

Other

14.1

 

16.1

 

Total

100.0

 

%

100.0

 

%

 
Estimated uncollectible accounts as a percent of revenues

1.0

 

%

1.0

 

%

 
Accounts receivable --
Days of revenue outstanding-excluding unapplied Medicare payments

33.6

 

37.8

 

Days of revenue outstanding-including unapplied Medicare payments

23.9

 

26.9

 

 
The "Footnotes to Financial Statements" are integral parts of this financial information.
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
FOOTNOTES TO FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 2022 AND 2021
(unaudited)
 
(a) Included in the results of operations for 2022 are the following significant credits/(charges) which may not be indicative of ongoing operations
(in thousands):
Three Months Ended March 31, 2022
VITAS Roto-Rooter Corporate Consolidated
 
Stock option expense $

-

 

$

-

 

$

(7,451

)

$

(7,451

)

Amortization of reacquired franchise agreements

-

 

(2,352

)

-

 

(2,352

)

Direct costs related to COVID-19

(391

)

(961

)

-

 

(1,352

)

Long-term incentive compensation

-

 

-

 

(1,310

)

(1,310

)

Pretax impact on earnings

(391

)

(3,313

)

(8,761

)

(12,465

)

Excess tax benefits on stock compensation

-

 

-

 

1,441

 

1,441

 

Income tax benefit on the above

99

 

878

 

1,436

 

2,413

 

After-tax impact on earnings $

(292

)

$

(2,435

)

$

(5,884

)

$

(8,611

)

 
(b) Included in the results of operations for 2021 are the following significant credits/(charges) which may not be indicative of ongoing operations
(in thousands):
Three Months Ended March 31, 2021
VITAS Roto-Rooter Corporate Consolidated
 
Stock option expense $

-

 

$

-

 

$

(6,106

)

$

(6,106

)

Amortization of reacquired franchise agreements

-

 

(2,352

)

-

 

(2,352

)

Direct costs related to COVID-19

(1,753

)

(553

)

(38

)

(2,344

)

Long-term incentive compensation

-

 

-

 

(1,893

)

(1,893

)

Pretax impact on earnings

(1,753

)

(2,905

)

(8,037

)

(12,695

)

Excess tax benefits on stock compensation

-

 

-

 

3,238

 

3,238

 

Income tax benefit on the above

445

 

769

 

1,273

 

2,487

 

After-tax impact on earnings $

(1,308

)

$

(2,136

)

$

(3,526

)

$

(6,970

)

 
(c) VITAS has 8 large (greater than 450 ADC), 20 medium (greater than 200 but less than 450 ADC) and 24 small (less than 200 ADC) hospice programs. Of Vitas' 30 Medicare provider numbers, for the current cap year, 28 provider numbers have a Medicare cap cushion of greater than 10% and two provider numbers have a Medicare cap liability.

 

David P. Williams
(513) 762-6901

Source: Chemed Corporation

All information current at time of original publication. Read complete disclaimer for details.
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Page last modified: 04/18/05