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Dec 31, 2019
Chemed Q4 2019 Earnings Report
Chemed's Q4 2019 results reflected revenue growth and increased earnings per share.
Key Takeaways
Chemed Corporation reported a 14.2% increase in revenue to $522 million for Q4 2019. GAAP diluted EPS increased by 21.5% to $3.96, and adjusted diluted EPS increased by 26.0% to $4.22.
Consolidated revenue increased by 14.2% to $522 million.
GAAP diluted EPS increased by 21.5% to $3.96.
Adjusted diluted EPS increased by 26.0% to $4.22.
VITAS segment net patient revenue increased by 10.7% to $340 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
Revenue growth for VITAS in 2020, prior to Medicare Cap, is estimated to be in the range of 8.5% to 9.5%. Roto-Rooter is forecasted to achieve full-year 2020 revenue growth of 13.0% to 14.0%. Based upon the above, full-year 2020 adjusted earnings per diluted share, excluding non-cash expense for stock options, tax benefits from stock options, costs related to litigation, intangible amortization of reacquired franchise rights and other discrete items, is estimated to be in the range of $16.20 to $16.50.
Positive Outlook
- Revenue growth for VITAS in 2020, prior to Medicare Cap, is estimated to be in the range of 8.5% to 9.5%.
- Admissions and Average Daily Census in 2020 are estimated to expand approximately 3.5% to 4.5%.
- Roto-Rooter is forecasted to achieve full-year 2020 revenue growth of 13.0% to 14.0%.
- Roto-Rooter’s Adjusted EBITDA margin for 2020 is estimated to be in the range of 23.0% to 23.5%.
- Full-year 2020 adjusted earnings per diluted share, excluding non-cash expense for stock options, tax benefits from stock options, costs related to litigation, intangible amortization of reacquired franchise rights and other discrete items, is estimated to be in the range of $16.20 to $16.50.
Challenges Ahead
- We are currently estimating $18 million for Medicare Cap billing limitations for calendar year 2020.
- High acuity days-of-care are estimated at 4.1% of total 2020 days-of-care.
- Full-year Adjusted EBITDA margin, prior to Medicare Cap, is estimated to be 18.7% to 19.0%.
- This 2020 guidance assumes an effective corporate tax rate of 25.2%.
- Chemed’s 2019 reported adjusted earnings per diluted share was $13.96.
Revenue & Expenses
Visualization of income flow from segment revenue to net income