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Sep 30, 2020
Chemed Q3 2020 Earnings Report
Chemed's Q3 2020 financial results were reported, demonstrating revenue growth and increased earnings per share.
Key Takeaways
Chemed Corporation reported a 9.9% increase in revenue, reaching $528 million. GAAP diluted EPS increased by 16.3% to $4.14, and adjusted diluted EPS increased by 40.5% to $4.86. The VITAS segment saw a 4.8% increase in net patient revenue, while Roto-Rooter experienced a 20.4% increase in revenue.
Chemed's revenue increased by 9.9% to $528 million.
GAAP Diluted Earnings-per-Share (EPS) increased by 16.3% to $4.14.
VITAS segment net patient revenue increased by 4.8% to $337 million.
Roto-Rooter's revenue increased by 20.4% to $191 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 provides revenue and adjusted EPS guidance for the full year 2020, with the caveat that the pandemic may materially disrupt the healthcare system and general economy, impacting the ability to achieve this guidance.
Positive Outlook
- VITAS revenue growth for 2020 is estimated to be 4% prior to Medicare Cap.
- Average Daily Census in 2020 is estimated to expand approximately 1.3%.
- Full-year Adjusted EBITDA margin for VITAS, prior to Medicare Cap, is estimated to be 21%.
- Roto-Rooter is forecasted to achieve full-year 2020 revenue growth of 12.5% to 13.0%.
- Full-year 2020 adjusted earnings per diluted share is estimated to be in the range of $18.00 to $18.15.
Challenges Ahead
- The 2020 pandemic has made accurate modeling and providing meaningful earnings guidance exceptionally challenging.
- Governmental decisions have the potential for an immediate and material impact on VITAS and Roto-Rooter operating results.
- Future rules, regulations, and government mandates could materially impact the ability to achieve the provided guidance.
- There is an estimated $8.7 million for Medicare Cap billing limitations for calendar year 2020.
- Chemed’s full year adjusted earnings per share guidance eliminates any financial benefit from the CARES Act funds that relate to lost revenue.
Revenue & Expenses
Visualization of income flow from segment revenue to net income