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Jun 30, 2022
Chemed Q2 2022 Earnings Report
Chemed reported results for the second quarter of 2022.
Key Takeaways
Chemed Corporation reported a slight decline in revenue but an increase in GAAP diluted earnings per share. The VITAS segment experienced revenue and ADC declines, while Roto-Rooter saw revenue growth.
Consolidated revenue declined 0.2% to $531 million.
GAAP Diluted Earnings-per-Share (EPS) increased 25.4% to $4.40.
VITAS net patient revenue declined 4.5% to $298 million.
Roto-Rooter revenue increased 6.0% to $233 million.
Chemed
Chemed
Chemed Revenue by Segment
Chemed Revenue by Geographic Location
Revenue by Segment
VITAS Revenue
CapyFin.comRoto-Rooter Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.com Forward Guidance
Chemed provided guidance for the remainder of 2022, anticipating challenges due to the COVID-19 pandemic, inflation, and potential economic recession.
Positive Outlook
- Full-year 2022 earnings per diluted share are expected to be in the range of $19.30 to $19.50.
- Roto-Rooter is forecasted to achieve full-year 2022 revenue growth of 5.5% to 5.7%.
- Roto-Rooter’s adjusted EBITDA margin for 2022 is expected to be 29.2% to 29.5%.
- VITAS adjusted EBITDA margin, prior to Medicare Cap, is estimated to be 17.0% to 17.2%.
- Undrawn borrowing capacity of approximately $387 million under the credit agreement.
Challenges Ahead
- VITAS 2022 revenue, prior to Medicare Cap, is estimated to decline 4.5% to 5.0% when compared to 2021.
- ADC is estimated to decline 3.5%.
- Approximately $15 million revenue reduction due to the phase out of sequestration relief.
- Currently estimating $10 million for Medicare Cap billing limitations in calendar year 2022.
- COVID-19 pandemic, uncertainty regarding forward looking inflation, and a potential economic recession could materially impact the company’s ability to achieve this guidance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income