EX-99 2 che-20230223xex99.htm EX-99 Exhibit 99

Picture 2



CONTACT:  David P. Williams

(513) 762-6901



Chemed Reports Fourth-Quarter 2022 Results



CINCINNATI, February 23, 2023—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, 2022, versus the comparable prior-year period, as follows:



Consolidated operating results:

·

Revenue increased 1.0% to $547 million

·

GAAP Diluted Earnings-per-Share (EPS) of $4.13

·

Adjusted Diluted EPS of $5.39, an increase of 2.7%



VITAS segment operating results:

·

Net Patient Revenue of $308 million, a  decline of 2.5%

·

Average Daily Census (ADC) of 17,434, a decline of 2.8%

·

Admissions of 14,829, a decline of 8.7%

·

Net Income, excluding certain discrete items, of $44.2 million, a decline of 11.1%

·

Adjusted EBITDA, excluding Medicare Cap, of $61.7 million, a decline of 11.1%

·

Adjusted EBITDA margin, excluding Medicare Cap, of 19.8%, a decrease of 189-basis points



Roto-Rooter segment operating results:

·

Revenue of $239 million, an increase of 6.1%

·

Net Income, excluding certain discrete items, of $49.3 million, an increase of 11.4%

·

Adjusted EBITDA of $69.3 million, an increase of 11.4%

·

Adjusted EBITDA margin of 29.0%, an increase of 138-basis points





VITAS



VITAS net revenue was $308 million in the fourth quarter of 2022, which is a decline of 2.5%, when compared to the prior year period.  This revenue decline is comprised primarily of a 2.8% reduction in days-of-care and a geographically weighted average Medicare reimbursement rate increase of approximately 3.2%, 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 a net impact of reducing revenue approximately $1.8 million, or 0.6%, 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 30-basis points.

 

In the fourth quarter of 2022, VITAS accrued $2.7 million in Medicare Cap billing limitations.  This compares to a $3.0 million Medicare Cap billing limitation in the fourth quarter of 2021.



Of VITAS’ 30 Medicare provider numbers, 25 provider numbers have a Medicare Cap cushion of 10% or greater, one provider number has a cushion between 5% and 10%, and four provider numbers have a trailing 12-month billing limitation liability.



Average revenue per patient per day in the fourth quarter of 2022 was $197.39 which, including acuity mix shift, is 58-basis points above the prior-year period. Reimbursement for routine home care and high acuity care averaged $173.53 and $1,040.03, respectively.  During the quarter, high acuity days-of-care were 2.7% of total days of care, 14-basis points below the prior-year quarter.



The fourth quarter 2022 gross margin, excluding Medicare Cap and the hiring and retention bonus program, was 26.9%.  This is a 135-basis point margin decline when compared to the fourth quarter of 2021. VITAS has increased licensed healthcare staff by 275 since the inception of the retention program on July 1, 2022.  This higher staffing  increased aggregate cost of sales in the quarter by approximately $4.4 million.  Excluding this capacity expansion, fourth quarter 2022 gross margins would have reflected a modest margin improvement when compared to the prior year quarter.



Selling, general and administrative expenses were $22.0 million in the fourth quarter of 2022 and compares to $21.5 million incurred in the prior-year quarter.  Adjusted EBITDA, excluding Medicare Cap, totaled $61.7 million in the quarter, a decrease of 11.1%.  Adjusted EBITDA margin in the quarter, excluding Medicare Cap, was 19.8%, which is 189-basis points below the prior-year period.  This Adjusted EBITDA margin was also negatively impacted by 200-basis points for the reimplementation of sequestration and approximately 141-basis points due to increased staffing and patient capacity from VITAS’ hiring and retention program. 



Roto-Rooter



Roto-Rooter generated quarterly revenue of $239 million in the fourth quarter of 2022, an increase of 6.1%, when compared to the prior-year quarter.



Roto-Rooter branch commercial revenue in the quarter totaled $58.6 million, an increase of 8.7%, over the prior year.  This aggregate commercial revenue growth consisted of drain cleaning revenue increasing 5.5%, plumbing increasing 13.8%, excavation increasing 5.1%, and water restoration increasing 27.3%.



Roto-Rooter branch residential revenue in the quarter totaled $159 million, an increase of 5.0%, over the prior-year period.  This aggregate residential revenue growth consisted of drain cleaning decreasing 2.1%, plumbing expanding 7.0%, excavation expanding 4.9%, and water restoration


 

increasing 13.2%.



Roto-Rooter’s gross margin in the quarter was 53.0%, a 68-basis point increase when compared to the fourth quarter of 2021.  Adjusted EBITDA in the fourth quarter of 2022 totaled $69.3 million, an increase of 11.4%.  The Adjusted EBITDA margin in the quarter was 29.0%, which is a 138-basis point improvement when compared to the prior year.



Chemed Consolidated



As of December 31, 2022, Chemed had total cash and cash equivalents of $74.1 million and $97.5 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 consists 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.  On December 31, 2022, the Company had approximately $405 million of undrawn borrowing capacity under this credit agreement.



During the quarter, the Company repurchased 25,000 shares of Chemed stock for $13.0 million which equates to a cost per share of $519.00.  As of December 31, 2022, there was approximately $88 million of remaining share repurchase authorization under its plan.





Guidance for 2023

VITAS 2023 revenue, prior to Medicare Cap, is estimated to increase 6.0% to 7.0% when compared to 2022.  Forecasted revenue growth is negatively impacted by 75-basis points as a result of the sequestration relief in the first half of 2022 compared to a full year of sequestration in 2023.  ADC is estimated to increase 3.5% to 4.0%, with the majority of this census growth in the second half of 2023 as increased staffing and operational capacity generates increased census.  Full year adjusted EBITDA margin, prior to Medicare Cap and accrued retention bonuses related to the hiring initiatives announced last year, is estimated to be 16.3% to 16.6%.  We are currently estimating $11 million for Medicare Cap billing limitations in calendar year 2023.

Roto-Rooter is forecasted to achieve full-year 2023 revenue growth of 5.0% to 5.5%. Roto-Rooter’s adjusted EBITDA margin for 2023 is expected to be 29.3% to 29.5%.

Based upon the above, full-year 2023 earnings per diluted share, excluding non-cash expense for stock options, tax benefits from stock option exercises, costs related to litigation, retention program for licensed healthcare employees, and other discrete items, is estimated to be in the range of $20.75 to $21.10.  Current 2023 guidance assumes an effective corporate tax rate on adjusted earnings of 25.1% and a diluted share count of 15.0 million shares.  Chemed’s 2022 reported adjusted earnings per diluted share was $19.75.






 

Conference Call



Chemed will host a conference call and webcast at 10 a.m., ET, on Friday February 24, 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/rvyepdf9.  



Participants may also register via teleconference at:

https://register.vevent.com/register/BIa68c5dbaf8b34e36b34d624d6cd5cc4aOnce 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 17,300 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 December 31,

 

For the Years Ended December 31,



 

2022

 

2021

 

2022

 

2021

Service revenues and sales

 

$

546,654 

 

$

540,978 

 

 

2,134,963 

 

$

2,139,261 

Cost of services provided and goods sold

 

 

349,570 

 

 

336,328 

 

 

1,369,877 

 

 

1,369,458 

Selling, general and administrative expenses (aa)

 

 

96,928 

 

 

92,073 

 

 

358,727 

 

 

366,727 

Depreciation

 

 

12,096 

 

 

11,840 

 

 

49,102 

 

 

49,011 

Amortization

 

 

2,512 

 

 

2,510 

 

 

10,070 

 

 

10,040 

Other operating expense

 

 

4,221 

 

 

198 

 

 

3,691 

 

 

987 

Total costs and expenses

 

 

465,327 

 

 

442,949 

 

 

1,791,467 

 

 

1,796,223 

Income from operations

 

 

81,327 

 

 

98,029 

 

 

343,496 

 

 

343,038 

Interest expense

 

 

(1,601)

 

 

(525)

 

 

(4,584)

 

 

(1,868)

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

 

 

2,674 

 

 

(1,377)

 

 

(9,233)

 

 

9,144 

Income before income taxes

 

 

82,400 

 

 

96,127 

 

 

329,679 

 

 

350,314 

Income taxes

 

 

(20,274)

 

 

(21,502)

 

 

(80,055)

 

 

(81,764)

Net income

 

$

62,126 

 

$

74,625 

 

$

249,624 

 

$

268,550 

Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

4.17 

 

$

4.89 

 

$

16.72 

 

$

17.14 

Average number of shares outstanding

 

 

14,913 

 

 

15,266 

 

 

14,929 

 

 

15,671 

Diluted Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

4.13 

 

$

4.81 

 

$

16.53 

 

$

16.85 

Average number of shares outstanding

 

 

15,052 

 

 

15,513 

 

 

15,099 

 

 

15,938 



 

 

 

 

 

 

 

 

 

 

 

 

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



 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended December 31,

 

For the Years Ended December 31,



 

2022

 

2021

 

2022

 

2021

SG&A expenses before long-term incentive compensation

 

 

 

 

 

 

 

 

 

 

 

 

and the impact of market value adjustments related to

 

 

 

 

 

 

 

 

 

 

 

 

deferred compensation plans

 

$

91,779 

 

$

89,875 

 

$

360,896 

 

$

349,250 

Market value adjustments related to deferred

 

 

 

 

 

 

 

 

 

 

 

 

compensation trusts

 

 

2,226 

 

 

(1,460)

 

 

(9,970)

 

 

8,310 

Long-term incentive compensation

 

 

2,923 

 

 

3,658 

 

 

7,801 

 

 

9,167 

Total SG&A expenses

 

$

96,928 

 

$

92,073 

 

$

358,727 

 

$

366,727 



 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 



 

Three Months Ended December 31,

 

For the Years Ended December 31,



 

2022

 

2021

 

2022

 

2021

Market value adjustments related to deferred

 

 

 

 

 

 

 

 

 

 

 

 

compensation trusts

 

$

2,226 

 

$

(1,460)

 

$

(9,970)

 

$

8,310 

Interest income

 

 

65 

 

 

89 

 

 

355 

 

 

377 

Other

 

 

383 

 

 

(6)

 

 

382 

 

 

457 

Total other (expense)/income--net

 

$

2,674 

 

$

(1,377)

 

$

(9,233)

 

$

9,144 




 





 

 

 

 

 

 

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATED BALANCE SHEETS

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



 

 

 

 

 

 



 

December 31,



 

2022

 

2021

Assets

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

74,126 

 

$

32,895 

Accounts receivable less allowances

 

 

139,408 

 

 

137,217 

Inventories

 

 

10,272 

 

 

10,109 

Prepaid income taxes

 

 

18,515 

 

 

17,377 

Prepaid expenses

 

 

30,291 

 

 

32,688 

Total current assets

 

 

272,612 

 

 

230,286 

Investments of deferred compensation plans held in trust

 

 

93,196 

 

 

98,884 

Properties and equipment, at cost less accumulated depreciation

 

 

199,714 

 

 

193,680 

Lease right of use asset

 

 

135,662 

 

 

125,048 

Identifiable intangible assets less accumulated amortization

 

 

99,726 

 

 

108,096 

Goodwill

 

 

581,295 

 

 

578,591 

Other assets

 

 

59,807 

 

 

8,138 

Total Assets

 

$

1,442,012 

 

$

1,342,723 

Liabilities

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

 

$

41,884 

 

$

73,024 

Current portion of long-term debt

 

 

5,000 

 

 

 -

Income taxes

 

 

 -

 

 

41 

Accrued insurance

 

 

58,515 

 

 

55,918 

Accrued compensation

 

 

87,350 

 

 

95,598 

Accrued legal

 

 

4,456 

 

 

872 

Short-term lease liability

 

 

38,996 

 

 

37,913 

Other current liabilities

 

 

61,004 

 

 

39,033 

Total current liabilities

 

 

297,205 

 

 

302,399 

Deferred income taxes

 

 

38,613 

 

 

23,183 

Long-term debt

 

 

92,500 

 

 

185,000 

Deferred compensation liabilities

 

 

92,330 

 

 

98,597 

Long-term lease liability

 

 

110,513 

 

 

100,629 

Other liabilities

 

 

12,136 

 

 

9,642 

Total Liabilities

 

 

643,297 

 

 

719,450 

Stockholders' Equity

 

 

 

 

 

 

Capital stock

 

 

36,796 

 

 

36,514 

Paid-in capital

 

 

1,149,899 

 

 

1,044,341 

Retained earnings

 

 

2,197,918 

 

 

1,970,311 

Treasury stock, at cost

 

 

(2,588,145)

 

 

(2,430,094)

Deferred compensation payable in Company stock

 

 

2,247 

 

 

2,201 

Total Stockholders' Equity

 

 

798,715 

 

 

623,273 

Total Liabilities and Stockholders' Equity

 

$

1,442,012 

 

$

1,342,723 




 









 

 

 

 

 

 

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)(unaudited)



 

 

 

 

 

 



 

For the Years Ended December 31,



 

2022

 

2021

Cash Flows from Operating Activities

 

 

 

 

 

 

Net income

 

$

249,624 

 

$

268,550 

Adjustments to reconcile net income to net cash provided

 

 

 

 

 

 

by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

59,172 

 

 

59,051 

Stock option expense

 

 

26,254 

 

 

22,502 

Deferred payroll taxes

 

 

(18,175)

 

 

(18,175)

Provision for deferred income taxes

 

 

14,827 

 

 

2,400 

Noncash long-term incentive compensation

 

 

6,188 

 

 

7,745 

Litigation settlements/(payments)

 

 

4,000 

 

 

(9,440)

Noncash directors' compensation

 

 

1,170 

 

 

1,173 

Amortization of debt issuance costs

 

 

342 

 

 

306 

Changes in operating assets and liabilities, excluding

 

 

 

 

 

 

amounts acquired in business combinations:

 

 

 

 

 

 

Increase in accounts receivable

 

 

(2,414)

 

 

(8,431)

Increase in inventories

 

 

(162)

 

 

(3,014)

Decrease/(increase) in prepaid expenses

 

 

2,397 

 

 

(6,511)

Increase in accounts payable and

 

 

 

 

 

 

other current liabilities

 

 

15,343 

 

 

9,832 

Change in current income taxes

 

 

(996)

 

 

(20,401)

Net change in lease assets and liabilities

 

 

1,471 

 

 

(44)

Increase in other assets

 

 

(45,779)

 

 

(10,305)

(Decrease)/increase in other liabilities

 

 

(3,350)

 

 

12,074 

Other (uses)/sources

 

 

(26)

 

 

1,285 

Net cash provided by operating activities

 

 

309,886 

 

 

308,597 

Cash Flows from Investing Activities

 

 

 

 

 

 

Capital expenditures

 

   

(57,325)

 

   

(58,675)

Business combinations, net of cash acquired

 

 

(3,529)

 

 

 -

Proceeds from sale of fixed assets

 

 

2,330 

 

 

904 

Other (uses)/sources

 

 

(878)

 

 

14 

Net cash used by investing activities

 

 

(59,402)

 

 

(57,757)

Cash Flows from Financing Activities

 

 

 

 

 

 

Payments on revolving line of credit

 

 

(306,800)

 

 

(25,300)

Proceeds from revolving line of credit

 

 

121,800 

 

 

210,300 

Proceeds from other long-term debt

 

 

100,000 

 

 

 -

Payments on other long-term debt

 

 

(2,500)

 

 

 -

Purchases of treasury stock

 

 

(114,515)

 

 

(576,042)

Proceeds from exercise of stock options

 

 

44,968 

 

 

35,848 

Dividends paid

 

 

(22,017)

 

 

(22,016)

Capital stock surrendered to pay taxes on stock-based compensation

 

 

(15,611)

 

 

(15,129)

Change in cash overdrafts payable

 

 

(11,884)

 

 

11,884 

Debt issuance costs

 

 

(1,586)

 

 

 -

Other uses

 

 

(1,108)

 

 

(165)

Net cash used by financing activities

 

 

(209,253)

 

 

(380,620)

Increase/(decrease) in Cash and Cash Equivalents

 

 

41,231 

 

 

(129,780)

Cash and cash equivalents at beginning of year

 

 

32,895 

 

 

162,675 

Cash and cash equivalents at end of year

 

$

74,126 

 

$

32,895 










 





 

 

 

 

 

 

 

 

 

 

 

 

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATING STATEMENTS OF INCOME

FOR THE THREE MONTHS ENDED DECEMBER 31, 2022 AND 2021

(in thousands)(unaudited)



 

 

 

 

 

 

 

Chemed



 

VITAS

 

Roto-Rooter

 

Corporate

 

Consolidated

2022 (a)

 

 

 

 

 

 

 

 

 

 

 

 

Service revenues and sales

 

$

308,059 

 

$

238,595 

 

$

 -

 

$

546,654 

Cost of services provided and goods sold

 

 

237,333 

 

 

112,237 

 

 

 -

 

 

349,570 

Selling, general and administrative expenses

 

 

22,005 

 

 

57,096 

 

 

17,827 

 

 

96,928 

Depreciation

 

 

5,061 

 

 

7,017 

 

 

18 

 

 

12,096 

Amortization

 

 

26 

 

 

2,486 

 

 

 -

 

 

2,512 

Other operating expense/(income)

 

 

4,266 

 

 

(45)

 

 

 -

 

 

4,221 

Total costs and expenses

 

 

268,691 

 

 

178,791 

 

 

17,845 

 

 

465,327 

Income/(loss) from operations

 

 

39,368 

 

 

59,804 

 

 

(17,845)

 

 

81,327 

Interest expense

 

 

(31)

 

 

(76)

 

 

(1,494)

 

 

(1,601)

Intercompany interest income/(expense)

 

 

4,720 

 

 

2,594 

 

 

(7,314)

 

 

 -

Other income—net

 

 

417 

 

 

31 

 

 

2,226 

 

 

2,674 

Income/(loss) before income taxes

 

 

44,474 

 

 

62,353 

 

 

(24,427)

 

 

82,400 

Income taxes

 

 

(10,800)

 

 

(14,829)

 

 

5,355 

 

 

(20,274)

Net income/(loss)

 

$

33,674 

 

$

47,524 

 

$

(19,072)

 

$

62,126 



 

 

 

 

 

 

 

 

 

 

 

 

2021 (b)

 

 

 

 

 

 

 

 

 

 

 

 

Service revenues and sales

 

$

316,112 

 

$

224,866 

 

$

 -

 

$

540,978 

Cost of services provided and goods sold

 

 

229,023 

 

 

107,305 

 

 

 -

 

 

336,328 

Selling, general and administrative expenses

 

 

21,491 

 

 

56,246 

 

 

14,336 

 

 

92,073 

Depreciation

 

 

5,365 

 

 

6,456 

 

 

19 

 

 

11,840 

Amortization

 

 

18 

 

 

2,492 

 

 

 -

 

 

2,510 

Other operating expense/(income)

 

 

221 

 

 

(23)

 

 

 -

 

 

198 

Total costs and expenses

 

 

256,118 

 

 

172,476 

 

 

14,355 

 

 

442,949 

Income/(loss) from operations

 

 

59,994 

 

 

52,390 

 

 

(14,355)

 

 

98,029 

Interest expense

 

 

(31)

 

 

(132)

 

 

(362)

 

 

(525)

Intercompany interest income/(expense)

 

 

4,601 

 

 

2,064 

 

 

(6,665)

 

 

 -

Other income/(expense)—net

 

 

58 

 

 

26 

 

 

(1,461)

 

 

(1,377)

Income/(loss) before income taxes

 

 

64,622 

 

 

54,348 

 

 

(22,843)

 

 

96,127 

Income taxes

 

 

(15,621)

 

 

(12,519)

 

 

6,638 

 

 

(21,502)

Net income/(loss)

 

$

49,001 

 

$

41,829 

 

$

(16,205)

 

$

74,625 



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

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, 2022 AND 2021

(in thousands)(unaudited)



 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

Chemed



 

VITAS

 

Roto-Rooter

 

Corporate

 

Consolidated

2022 (a)

 

 

 

 

 

 

 

 

 

 

 

 

Service revenues and sales

 

$

1,201,564 

 

$

933,399 

 

$

 -

 

$

2,134,963 

Cost of services provided and goods sold

 

 

931,861 

 

 

438,016 

 

 

 -

 

 

1,369,877 

Selling, general and administrative expenses

 

 

89,187 

 

 

222,257 

 

 

47,283 

 

 

358,727 

Depreciation

 

 

21,955 

 

 

27,075 

 

 

72 

 

 

49,102 

Amortization

 

 

101 

 

 

9,969 

 

 

 -

 

 

10,070 

Other operating expense

 

 

3,337 

 

 

354 

 

 

 -

 

 

3,691 

Total costs and expenses

 

 

1,046,441 

 

 

697,671 

 

 

47,355 

 

 

1,791,467 

Income/(loss) from operations

 

 

155,123 

 

 

235,728 

 

 

(47,355)

 

 

343,496 

Interest expense

 

 

(172)

 

 

(396)

 

 

(4,016)

 

 

(4,584)

Intercompany interest income/(expense)

 

 

18,901 

 

 

9,345 

 

 

(28,246)

 

 

 -

Other income/(expense)—net

 

 

600 

 

 

138 

 

 

(9,971)

 

 

(9,233)

Income/(loss) before income taxes

 

 

174,452 

 

 

244,815 

 

 

(89,588)

 

 

329,679 

Income taxes

 

 

(43,000)

 

 

(58,695)

 

 

21,640 

 

 

(80,055)

Net income/(loss)

 

$

131,452 

 

$

186,120 

 

$

(67,948)

 

$

249,624 



 

 

 

 

 

 

 

 

 

 

 

 

2021 (b)

 

 

 

 

 

 

 

 

 

 

 

 

Service revenues and sales

 

$

1,261,246 

 

$

878,015 

 

$

 -

 

$

2,139,261 

Cost of services provided and goods sold

 

 

953,420 

 

 

416,038 

 

 

 -

 

 

1,369,458 

Selling, general and administrative expenses

 

 

87,585 

 

 

215,036 

 

 

64,106 

 

 

366,727 

Depreciation

 

 

23,114 

 

 

25,816 

 

 

81 

 

 

49,011 

Amortization

 

 

71 

 

 

9,969 

 

 

 -

 

 

10,040 

Other operating expense

 

 

876 

 

 

111 

 

 

 -

 

 

987 

Total costs and expenses

 

 

1,065,066 

 

 

666,970 

 

 

64,187 

 

 

1,796,223 

Income/(loss) from operations

 

 

196,180 

 

 

211,045 

 

 

(64,187)

 

 

343,038 

Interest expense

 

 

(160)

 

 

(595)

 

 

(1,113)

 

 

(1,868)

Intercompany interest income/(expense)

 

 

18,125 

 

 

7,180 

 

 

(25,305)

 

 

 -

Other income—net

 

 

712 

 

 

123 

 

 

8,309 

 

 

9,144 

Income/(loss) before income taxes

 

 

214,857 

 

 

217,753 

 

 

(82,296)

 

 

350,314 

Income taxes

 

 

(52,426)

 

 

(51,420)

 

 

22,082 

 

 

(81,764)

Net income/(loss)

 

$

162,431 

 

$

166,333 

 

$

(60,214)

 

$

268,550 



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

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, 2022 AND 2021

(in thousands)(unaudited)



 

 

 

 

 

 

 

Chemed



 

VITAS

 

Roto-Rooter

 

Corporate

 

Consolidated

2022

 

 

 

 

 

 

 

 

 

 

 

 

Net income/(loss)

 

$

33,674 

 

$

47,524 

 

$

(19,072)

 

$

62,126 

Add/(deduct):

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

31 

 

 

76 

 

 

1,494 

 

 

1,601 

Income taxes

 

 

10,800 

 

 

14,829 

 

 

(5,355)

 

 

20,274 

Depreciation

 

 

5,061 

 

 

7,017 

 

 

18 

 

 

12,096 

Amortization

 

 

26 

 

 

2,486 

 

 

 -

 

 

2,512 

EBITDA

 

 

49,592 

 

 

71,932 

 

 

(22,915)

 

 

98,609 

Add/(deduct):

 

 

 

 

 

 

 

 

 

 

 

 

Intercompany interest expense/(income)

 

 

(4,720)

 

 

(2,594)

 

 

7,314 

 

 

 -

Interest (income)/expense

 

 

(36)

 

 

(30)

 

 

 

 

(65)

Licensed healthcare retention bonus

 

 

10,075 

 

 

 -

 

 

 -

 

 

10,075 

Stock option expense

 

 

 -

 

 

 -

 

 

6,911 

 

 

6,911 

Litigation settlements

 

 

4,000 

 

 

 -

 

 

 -

 

 

4,000 

Long-term incentive compensation

 

 

 -

 

 

 -

 

 

2,923 

 

 

2,923 

Adjusted EBITDA

 

$

58,911 

 

$

69,308 

 

$

(5,766)

 

$

122,453 



 

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

Net income/(loss)

 

$

49,001 

 

$

41,829 

 

$

(16,205)

 

$

74,625 

Add/(deduct):

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

31 

 

 

132 

 

 

362 

 

 

525 

Income taxes

 

 

15,621 

 

 

12,519 

 

 

(6,638)

 

 

21,502 

Depreciation

 

 

5,365 

 

 

6,456 

 

 

19 

 

 

11,840 

Amortization

 

 

18 

 

 

2,492 

 

 

 -

 

 

2,510 

EBITDA

 

 

70,036 

 

 

63,428 

 

 

(22,462)

 

 

111,002 

Add/(deduct):

 

 

 

 

 

 

 

 

 

 

 

 

Intercompany interest expense/(income)

 

 

(4,601)

 

 

(2,064)

 

 

6,665 

 

 

 -

Interest income

 

 

(63)

 

 

(26)

 

 

 -

 

 

(89)

Stock option expense

 

 

 -

 

 

 -

 

 

6,159 

 

 

6,159 

Long-term incentive compensation

 

 

 -

 

 

 -

 

 

3,659 

 

 

3,659 

Direct costs related to COVID-19

 

 

959 

 

 

884 

 

 

 -

 

 

1,843 

Adjusted EBITDA

 

$

66,331 

 

$

62,222 

 

$

(5,979)

 

$

122,574 



 

 

 

 

 

 

 

 

 

 

 

 

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, 2022 AND 2021

(in thousands)(unaudited)



 

 

 

 

 

 

 

 

 

 

Chemed



 

VITAS

 

Roto-Rooter

 

Corporate

 

Consolidated

2022

 

 

 

 

 

 

 

 

 

 

 

 

Net income/(loss)

 

$

131,452 

 

$

186,120 

 

$

(67,948)

 

$

249,624 

Add/(deduct):

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

172 

 

 

396 

 

 

4,016 

 

 

4,584 

Income taxes

 

 

43,000 

 

 

58,695 

 

 

(21,640)

 

 

80,055 

Depreciation

 

 

21,955 

 

 

27,075 

 

 

72 

 

 

49,102 

Amortization

 

 

101 

 

 

9,969 

 

 

 -

 

 

10,070 

EBITDA

 

 

196,680 

 

 

282,255 

 

 

(85,500)

 

 

393,435 

Add/(deduct):

 

 

 

 

 

 

 

 

 

 

 

 

Intercompany interest expense/(income)

 

 

(18,901)

 

 

(9,345)

 

 

28,246 

 

 

 -

Interest (income)/expense

 

 

(218)

 

 

(138)

 

 

 

 

(355)

Stock option expense

 

 

 -

 

 

 -

 

 

26,254 

 

 

26,254 

Licensed healthcare retention bonus

 

 

19,634 

 

 

 -

 

 

 -

 

 

19,634 

Long-term incentive compensation

 

 

 -

 

 

 -

 

 

7,801 

 

 

7,801 

Litigation settlements

 

 

4,000 

 

 

 -

 

 

 -

 

 

4,000 

Direct costs related to COVID-19

 

 

310 

 

 

988 

 

 

89 

 

 

1,387 

Medicare cap sequestration adjustment

 

 

138 

 

 

 -

 

 

 -

 

 

138 

Adjusted EBITDA

 

$

201,643 

 

$

273,760 

 

$

(23,109)

 

$

452,294 

2021

 

 

 

 

 

 

 

 

 

 

 

 

Net income/(loss)

 

$

162,431 

 

$

166,333 

 

$

(60,214)

 

$

268,550 

Add/(deduct):

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

160 

 

 

595 

 

 

1,113 

 

 

1,868 

Income taxes

 

 

52,426 

 

 

51,420 

 

 

(22,082)

 

 

81,764 

Depreciation

 

 

23,114 

 

 

25,816 

 

 

81 

 

 

49,011 

Amortization

 

 

71 

 

 

9,969 

 

 

 -

 

 

10,040 

EBITDA

 

 

238,202 

 

 

254,133 

 

 

(81,102)

 

 

411,233 

Add/(deduct):

 

 

 

 

 

 

 

 

 

 

 

 

Intercompany interest expense/(income)

 

 

(18,125)

 

 

(7,180)

 

 

25,305 

 

 

 -

Interest income

 

 

(253)

 

 

(124)

 

 

 -

 

 

(377)

Stock option expense

 

 

 -

 

 

 -

 

 

22,502 

 

 

22,502 

Direct costs related to COVID-19

 

 

16,296 

 

 

2,435 

 

 

38 

 

 

18,769 

Long-term incentive compensation

 

 

 -

 

 

 -

 

 

9,167 

 

 

9,167 

Litigation settlements

 

 

 -

 

 

(98)

 

 

 -

 

 

(98)

Other

 

 

 -

 

 

 -

 

 

218 

 

 

218 

Adjusted EBITDA

 

$

236,120 

 

$

249,166 

 

$

(23,872)

 

$

461,414 



 

 

 

 

 

 

 

 

 

 

 

 

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 December 31,

 

For the Years Ended December 31,



 

2022

 

2021

 

2022

 

2021

Net income as reported

 

$

62,126 

 

$

74,625 

 

$

249,624 

 

$

268,550 

Add/(deduct) pre-tax cost of:

 

 

 

 

 

 

 

 

 

 

 

 

Stock option expense

 

 

6,911 

 

 

6,159 

 

 

26,254 

 

 

22,502 

Licensed healthcare worker retention bonus

 

 

10,075 

 

 

 -

 

 

19,634 

 

 

 -

Amortization of reacquired franchise agreements

 

 

2,352 

 

 

2,352 

 

 

9,408 

 

 

9,408 

Long-term incentive compensation

 

 

2,923 

 

 

3,659 

 

 

7,801 

 

 

9,167 

Litigation settlements

 

 

4,000 

 

 

 -

 

 

4,000 

 

 

(98)

Direct costs related to COVID-19

 

 

 -

 

 

1,843 

 

 

1,387 

 

 

18,769 

Medicare cap sequestration adjustment

 

 

 -

 

 

 -

 

 

138 

 

 

 -

Facility relocation expenses

 

 

 -

 

 

 -

 

 

 -

 

 

1,855 

Other

 

 

 -

 

 

 -

 

 

 -

 

 

218 

Add/(deduct) tax impacts:

 

 

 

 

 

 

 

 

 

 

 

 

Tax impact of the above pre-tax adjustments (1)

 

 

(5,710)

 

 

(2,606)

 

 

(14,062)

 

 

(12,480)

Excess tax benefits on stock compensation

 

 

(1,538)

 

 

(4,579)

 

 

(5,928)

 

 

(9,884)

Adjusted net income

 

$

81,139 

 

$

81,453 

 

$

298,256 

 

$

308,007 



 

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings Per Share As Reported

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

4.13 

 

$

4.81 

 

$

16.53 

 

$

16.85 

Average number of shares outstanding

 

 

15,052 

 

 

15,513 

 

 

15,099 

 

 

15,938 



 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Diluted Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income

 

$

5.39 

 

$

5.25 

 

$

19.75 

 

$

19.33 

Average number of shares outstanding

 

 

15,052 

 

 

15,513 

 

 

15,099 

 

 

15,938 



 

 

 

 

 

 

 

 

 

 

 

 

(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 December 31,

 

 

For the Years Ended December 31,

 

OPERATING STATISTICS

2022

 

2021

 

 

2022

 

2021

 

Net revenue ($000) (c)

 

 

 

 

 

 

 

 

 

 

 

 

 

Homecare

$

267,691 

 

$

272,949 

 

 

$

1,039,211 

 

$

1,069,766 

 

Inpatient

 

26,647 

 

 

27,291 

 

 

 

102,361 

 

 

113,187 

 

Continuous care

 

19,284 

 

 

20,680 

 

 

 

77,000 

 

 

94,338 

 

Other

 

2,977 

 

 

2,902 

 

 

 

12,438 

 

 

12,142 

 

Subtotal

$

316,599 

 

$

323,822 

 

 

$

1,231,010 

 

$

1,289,433 

 

Room and board, net

 

(2,778)

 

 

(2,609)

 

 

 

(9,574)

 

 

(10,060)

 

Contractual allowances

 

(3,012)

 

 

(2,101)

 

 

 

(12,004)

 

 

(11,530)

 

Medicare cap allowance

 

(2,750)

 

 

(3,000)

 

 

 

(7,868)

 

 

(6,597)

 

Net Revenue

$

308,059 

 

$

316,112 

 

 

$

1,201,564 

 

$

1,261,246 

 

Net revenue as a percent of total before Medicare cap allowance

 

 

 

 

 

 

 

 

 

 

 

 

 

Homecare

 

84.6 

%

 

84.3 

%

 

 

84.4 

%

 

83.0 

%

Inpatient

 

8.4 

 

 

8.4 

 

 

 

8.3 

 

 

8.8 

 

Continuous care

 

6.1 

 

 

6.4 

 

 

 

6.3 

 

 

7.3 

 

Other

 

0.9 

 

 

0.9 

 

 

 

1.0 

 

 

0.9 

 

Subtotal

 

100.0 

 

 

100.0 

 

 

 

100.0 

 

 

100.0 

 

Room and board, net

 

(0.9)

 

 

(0.9)

 

 

 

(0.8)

 

 

(0.8)

 

Contractual allowances

 

(0.9)

 

 

(0.6)

 

 

 

(1.0)

 

 

(0.9)

 

Medicare cap allowance

 

(0.9)

 

 

(0.9)

 

 

 

(0.6)

 

 

(0.5)

 

Net Revenue

 

97.3 

%

 

97.6 

%

 

 

97.6 

%

 

97.8 

%

Days of care

 

 

 

 

 

 

 

 

 

 

 

 

 

Homecare

 

1,289,067 

 

 

1,338,955 

 

 

 

5,086,021 

 

 

5,347,170 

 

Nursing home

 

264,895 

 

 

257,416 

 

 

 

1,036,816 

 

 

993,322 

 

Respite

 

5,807 

 

 

5,894 

 

 

 

23,905 

 

 

21,403 

 

Subtotal routine homecare and respite

 

1,559,769 

 

 

1,602,265 

 

 

 

6,146,742 

 

 

6,361,895 

 

Inpatient

 

24,254 

 

 

25,556 

 

 

 

95,431 

 

 

107,685 

 

Continuous care

 

19,909 

 

 

22,154 

 

 

 

81,890 

 

 

101,539 

 

Total

 

1,603,932 

 

 

1,649,975 

 

 

 

6,324,063 

 

 

6,571,119 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

Number of days in relevant time period

 

92 

 

 

92 

 

 

 

365 

 

 

365 

 

Average daily census ("ADC") (days)

 

 

 

 

 

 

 

 

 

 

 

 

 

Homecare

 

14,012 

 

 

14,554 

 

 

 

13,934 

 

 

14,649 

 

Nursing home

 

2,879 

 

 

2,798 

 

 

 

2,841 

 

 

2,721 

 

Respite

 

63 

 

 

64 

 

 

 

65 

 

 

59 

 

Subtotal routine homecare and respite

 

16,954 

 

 

17,416 

 

 

 

16,840 

 

 

17,429 

 

Inpatient

 

264 

 

 

278 

 

 

 

261 

 

 

295 

 

Continuous care

 

216 

 

 

241 

 

 

 

224 

 

 

279 

 

Total

 

17,434 

 

 

17,935 

 

 

 

17,325 

 

 

18,003 

 

Total Admissions

 

14,829 

 

 

16,250 

 

 

 

60,774 

 

 

68,823 

 

Total Discharges

 

14,862 

 

 

16,684 

 

 

 

60,930 

 

 

69,411 

 

Average length of stay (days)

 

103.9 

 

 

97.9 

 

 

 

104.6 

 

 

95.7 

 

Median length of stay (days)

 

16.0 

 

 

15.0 

 

 

 

16.0 

 

 

13.0 

 

ADC by major diagnosis

 

 

 

 

 

 

 

 

 

 

 

 

 

Cerebro

 

41.0 

%

 

36.5 

%

 

 

39.8 

%

 

36.7 

%

Neurological

 

20.3 

 

 

23.0 

 

 

 

21.2 

 

 

22.6 

 

Cancer

 

10.7 

 

 

11.5 

 

 

 

10.9 

 

 

11.9 

 

Cardio

 

15.7 

 

 

15.6 

 

 

 

15.7 

 

 

15.5 

 

Respiratory

 

7.2 

 

 

7.5 

 

 

 

7.3 

 

 

7.5 

 

Other

 

5.1 

 

 

5.9 

 

 

 

5.1 

 

 

5.8 

 

Total

 

100.0 

%

 

100.0 

%

 

 

100.0 

%

 

100.0 

%

Admissions by major diagnosis

 

 

 

 

 

 

 

 

 

 

 

 

 

Cerebro

 

25.6 

%

 

22.5 

%

 

 

24.6 

%

 

21.5 

%

Neurological

 

11.0 

 

 

12.7 

 

 

 

12.3 

 

 

12.3 

 

Cancer

 

26.7 

 

 

26.6 

 

 

 

26.3 

 

 

26.9 

 

Cardio

 

15.3 

 

 

14.8 

 

 

 

14.9 

 

 

14.5 

 

Respiratory

 

10.5 

 

 

11.0 

 

 

 

10.3 

 

 

10.9 

 

Other

 

10.9 

 

 

12.4 

 

 

 

11.6 

 

 

13.9 

 

Total

 

100.0 

%

 

100.0 

%

 

 

100.0 

%

 

100.0 

%



 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated uncollectible accounts as a percent of revenues

 

1.0 

%

 

0.7 

%

 

 

1.0 

%

 

0.9 

%



 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable --

 

 

 

 

 

 

 

 

 

 

 

 

 

Days of revenue outstanding-excluding unapplied Medicare payments

38.1 

 

 

33.8 

 

 

 

n.a.

 

 

n.a.

 

Days of revenue outstanding-including unapplied Medicare payments

28.0 

 

 

28.1 

 

 

 

n.a.

 

 

n.a.

 



 

 

 

 

 

 

 

 

 

 

 

 

 

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 AND YEARS ENDED DECEMBER 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 December 31, 2022



 

 

VITAS

 

Roto-Rooter

 

Corporate

 

Consolidated



 

 

 

 

 

 

 

 

 

 

 

 

 



Licensed healthcare worker retention bonus

 

$

(10,075)

 

$

 -

 

$

 -

 

$

(10,075)



Stock option expense

 

 

 -

 

 

 -

 

 

(6,911)

 

 

(6,911)



Litigation settlements

 

 

(4,000)

 

 

 -

 

 

 -

 

 

(4,000)



Long-term incentive compensation

 

 

 -

 

 

 -

 

 

(2,923)

 

 

(2,923)



Amortization of reacquired franchise agreements

 

 

 -

 

 

(2,352)

 

 

 -

 

 

(2,352)



Pretax impact on earnings

 

 

(14,075)

 

 

(2,352)

 

 

(9,834)

 

 

(26,261)



Excess tax benefits on stock compensation

 

 

 -

 

 

 -

 

 

1,538 

 

 

1,538 



Income tax benefit on the above

 

 

3,575 

 

 

623 

 

 

1,512 

 

 

5,710 



After-tax impact on earnings

 

$

(10,500)

 

$

(1,729)

 

$

(6,784)

 

$

(19,013)



 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

For the Year Ended December 31, 2022



 

 

VITAS

 

Roto-Rooter

 

Corporate

 

Consolidated



 

 

 

 

 

 

 

 

 

 

 

 

 



Stock option expense

 

$

 -

 

$

 -

 

$

(26,254)

 

$

(26,254)



Licensed healthcare worker retention bonus

 

 

(19,634)

 

 

 -

 

 

 -

 

 

(19,634)



Amortization of reacquired franchise agreements

 

 

 -

 

 

(9,408)

 

 

 -

 

 

(9,408)



Long-term incentive compensation

 

 

 -

 

 

 -

 

 

(7,801)

 

 

(7,801)



Litigation settlements

 

 

(4,000)

 

 

 -

 

 

 -

 

 

(4,000)



Direct costs related to COVID-19

 

 

(310)

 

 

(988)

 

 

(89)

 

 

(1,387)



Medicare cap sequestration adjustment

 

 

(138)

 

 

 -

 

 

 -

 

 

(138)



Pretax impact on earnings

 

 

(24,082)

 

 

(10,396)

 

 

(34,144)

 

 

(68,622)



Excess tax benefits on stock compensation

 

 

 -

 

 

 -

 

 

5,928 

 

 

5,928 



Income tax benefit on the above

 

 

6,117 

 

 

2,755 

 

 

5,190 

 

 

14,062 



After-tax impact on earnings

 

$

(17,965)

 

$

(7,641)

 

$

(23,026)

 

$

(48,632)



 

 

 

 

 

 

 

 

 

 

 

 

 




 



 

 

 

 

 

 

 

 

 

 

 

 

 

(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 December 31, 2021



 

 

VITAS

 

Roto-Rooter

 

Corporate

 

Consolidated



 

 

 

 

 

 

 

 

 

 

 

 

 



Stock option expense

 

$

 -

 

$

 -

 

$

(6,159)

 

$

(6,159)



Long-term incentive compensation

 

 

 -

 

 

 -

 

 

(3,659)

 

 

(3,659)



Amortization of reacquired franchise agreements

 

 

 -

 

 

(2,352)

 

 

 -

 

 

(2,352)



Direct costs related to COVID-19

 

 

(959)

 

 

(884)

 

 

 -

 

 

(1,843)



Pretax impact on earnings

 

 

(959)

 

 

(3,236)

 

 

(9,818)

 

 

(14,013)



Excess tax benefits on stock compensation

 

 

 -

 

 

 -

 

 

4,579 

 

 

4,579 



Income tax benefit on the above

 

 

243 

 

 

859 

 

 

1,504 

 

 

2,606 



After-tax impact on earnings

 

$

(716)

 

$

(2,377)

 

$

(3,735)

 

$

(6,828)



 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

For the Year Ended December 31, 2021



 

 

VITAS

 

Roto-Rooter

 

Corporate

 

Consolidated



 

 

 

 

 

 

 

 

 

 

 

 

 



Stock option expense

 

$

 -

 

$

 -

 

$

(22,502)

 

$

(22,502)



Direct costs related to COVID-19

 

 

(16,297)

 

 

(2,434)

 

 

(38)

 

 

(18,769)



Amortization of reacquired franchise agreements

 

 

 -

 

 

(9,408)

 

 

 -

 

 

(9,408)



Long-term incentive compensation

 

 

 -

 

 

 -

 

 

(9,167)

 

 

(9,167)



Facility relocation expenses

 

 

(1,855)

 

 

 -

 

 

 -

 

 

(1,855)



Litigation settlements

 

 

 -

 

 

98 

 

 

 -

 

 

98 



Other

 

 

 -

 

 

 -

 

 

(218)

 

 

(218)



Pretax impact on earnings

 

 

(18,152)

 

 

(11,744)

 

 

(31,925)

 

 

(61,821)



Excess tax benefits on stock compensation

 

 

 -

 

 

 -

 

 

9,884 

 

 

9,884 



Income tax benefit on the above

 

 

4,611 

 

 

3,112 

 

 

4,757 

 

 

12,480 



After-tax impact on earnings

 

$

(13,541)

 

$

(8,632)

 

$

(17,284)

 

$

(39,457)



 

 

 

 

 

 

 

 

 

 

 

 

 

(c)

VITAS has 9 large (greater than 450 ADC), 14 medium (greater than 200 but less than 450 ADC) and 27 small (less than 200 ADC) hospice programs.  Of Vitas' 30 Medicare provider numbers, for the current cap year, 23 provider numbers have a Medicare cap cushion of greater than 10%, two provider numbers have a Medicare cap cushion between 5% and 10% and five provider numbers have a Medicare cap liability.