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Chemed
🇺🇸 NYSE:CHE
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Jun 30, 2024

Chemed Q2 2024 Earnings Report

Chemed's Q2 2024 financial results were reported, demonstrating growth in revenue and adjusted EPS, driven by strong performance in the VITAS segment, offset by a decline in Roto-Rooter's revenue.

Key Takeaways

Chemed Corporation reported a 7.6% increase in revenue to $595.9 million and a 34.1% increase in adjusted diluted EPS to $5.47 for the second quarter of 2024. The VITAS segment saw a significant revenue increase of 16.7%, while Roto-Rooter experienced a 5.0% revenue decrease.

Chemed's revenue increased by 7.6% to $595.9 million, and adjusted diluted EPS increased by 34.1% to $5.47.

VITAS segment revenue increased by 16.7% to $374.6 million, with a 14.4% increase in Average Daily Census (ADC).

Roto-Rooter segment revenue decreased by 5.0% to $221.3 million, with adjusted EBITDA declining by 9.2%.

Upward revision to guidance for 2024, with full-year adjusted earnings per diluted share estimated to be in the range of $23.55 to $23.80.

Total Revenue
$596M
Previous year: $554M
+7.6%
EPS
$5.47
Previous year: $4.71
+16.1%
Admissions
17.33K
Previous year: 15.61K
+11.0%
Average Daily Census
21.04K
Previous year: 18.39K
+14.4%
Gross Profit
$190M
Previous year: $180M
+6.0%
Cash and Equivalents
$223M
Previous year: $160M
+39.4%
Free Cash Flow
$66.5M
Previous year: $116M
-42.7%
Total Assets
$1.73B
Previous year: $1.51B
+15.3%

Chemed

Chemed

Chemed Revenue by Segment

Chemed Revenue by Geographic Location

Forward Guidance

Chemed provided an upward revision to its 2024 guidance, anticipating increased revenue and adjusted EBITDA margin for VITAS, while Roto-Rooter is expected to have a revenue decline. Full-year 2024 earnings per diluted share are estimated to be in the range of $23.55 to $23.80.

Positive Outlook

  • VITAS 2024 revenue, prior to Medicare Cap, is estimated to increase 16.3% to 17.3% when compared to 2023.
  • ADC is estimated to increase 13.3% to 14.4%.
  • Full year adjusted EBITDA margin, prior to Medicare Cap, is estimated to be 19.3% to 19.7%.
  • Covenant Health is estimated to contribute approximately $30 million to $32 million of revenue to VITAS’ full year revenue.
  • Full-year 2024 earnings per diluted share, excluding certain items, is estimated to be in the range of $23.55 to $23.80.

Challenges Ahead

  • Roto-Rooter is forecasted to have a 4.0% to 5.0% revenue decline in 2024 compared to 2023.
  • Roto-Rooter’s adjusted EBITDA margin for 2024 is expected to be 26.5% to 27.0%.
  • We are currently estimating $8.5 million in Medicare Cap billing limitations in calendar 2024.
  • The cost of the retention program negatively impacted VITAS’ 2023 full year adjusted EBITDA by 159 basis points.
  • Chemed’s previously issued 2024 guidance range was $23.30 to $23.70.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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