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Chemed
🇺🇸 NYSE:CHE
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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.

Total Revenue
$539M
Previous year: $528M
+2.0%
EPS
$5.06
Previous year: $4.86
+4.1%
Admissions
17.6K
Previous year: 17.94K
-1.9%
Average Daily Census
18.03K
Previous year: 19.05K
-5.3%
Gross Profit
$197M
Previous year: $189M
+3.9%
Cash and Equivalents
$29M
Previous year: $113M
-74.3%
Free Cash Flow
$102M
Previous year: $114M
-10.6%
Total Assets
$1.32B
Previous year: $1.37B
-3.6%

Chemed

Chemed

Chemed Revenue by Segment

Chemed Revenue by Geographic Location

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%.
  • Full-year Adjusted EBITDA margin, prior to Medicare Cap, is estimated to be 18.8%.
  • The pandemic will continue to disrupt the healthcare system and general economy.
  • Future rules, regulations, and government mandates could materially impact the company’s ability to achieve the guidance.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Chemed