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Sep 30, 2021
Chemed Q3 2021 Earnings Report
Chemed's Q3 2021 performance reflected a mix of challenges and growth, with revenue increase driven by Roto-Rooter's strong performance offsetting a decline in VITAS' revenue, and adjusted EPS showing a modest increase.
Key Takeaways
Chemed Corporation reported a 2.0% increase in revenue to $539 million. GAAP diluted EPS increased by 9.9% to $4.55, and adjusted diluted EPS increased by 4.1% to $5.06. The VITAS segment experienced a revenue decline, while Roto-Rooter demonstrated strong revenue growth.
Consolidated revenue increased by 2.0% to $539 million.
GAAP diluted EPS increased by 9.9% to $4.55.
Adjusted diluted EPS increased by 4.1% to $5.06.
Roto-Rooter's revenue increased by 15.7%, offsetting a decline in VITAS' revenue.
Revenue by Segment
Forward Guidance
Chemed anticipates full-year 2021 adjusted earnings per diluted share to be in the range of $19.00 to $19.20, compared to the initial guidance of $17.00 to $17.50. This revised guidance assumes an effective corporate tax rate on adjusted earnings of 25.1%. VITAS revenue is estimated to decline approximately 5%, and Roto-Rooter is forecasted to achieve full-year 2021 revenue growth of 17.3%.
Positive Outlook
- Full-year 2021 adjusted earnings per diluted share are estimated to be in the range of $19.00 to $19.20.
- The revised guidance is higher than the initial 2021 adjusted earnings per diluted share guidance of $17.00 to $17.50.
- Roto-Rooter is forecasted to achieve full-year 2021 revenue growth of 17.3%.
- Roto-Rooter’s Adjusted EBITDA margin for 2021 is estimated to be between 28.5% to 29.0%.
- The company has successfully navigated within the rapidly changing environment during the pandemic.
Challenges Ahead
- VITAS 2021 revenue, prior to Medicare Cap, is estimated to decline approximately 5% when compared to the prior year.
- Average Daily Census in 2021 is estimated to decline approximately 5.5%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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