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Dec 31, 2020
Chemed Q4 2020 Earnings Report
Chemed reported mixed Q4 2020 results with revenue increase and EPS growth.
Key Takeaways
Chemed Corporation reported a 2.1% increase in revenue to $533 million. GAAP diluted EPS increased by 75.8% to $6.96, and adjusted diluted EPS increased by 21.6% to $5.13. VITAS segment revenue declined by 2.3%, while Roto-Rooter's revenue increased by 10.2%.
Consolidated revenue increased by 2.1% to $533 million.
GAAP diluted EPS increased by 75.8% to $6.96.
Adjusted diluted EPS increased by 21.6% to $5.13.
Roto-Rooter revenue increased by 10.2% to $201 million.
Chemed
Chemed
Chemed Revenue by Segment
Revenue by Segment
VITAS Revenue
CapyFin.comRoto-Rooter Revenue
CapyFin.com Forward Guidance
Chemed provided guidance for the full year 2021, anticipating challenges due to the COVID-19 pandemic. VITAS is expected to experience a revenue decline and ADC decrease, while Roto-Rooter is forecasted to achieve revenue growth. Full-year adjusted earnings per diluted share are estimated to be in the range of $17.00 to $17.50.
Positive Outlook
- Roto-Rooter is forecasted to achieve full-year 2021 revenue growth of 5% to 6%.
- Roto-Rooter’s Adjusted EBITDA margin for 2021 is estimated to be 26.0%.
- Full-year 2021 adjusted earnings per diluted share, excluding certain items, is estimated to be in the range of $17.00 to $17.50.
- This 2021 guidance assumes an effective corporate tax rate on adjusted earnings of 24.7%.
- Chemed’s 2020 reported adjusted earnings per diluted share was $18.08.
Challenges Ahead
- VITAS 2021 revenue, prior to Medicare Cap, is estimated to decline approximately 4.0% when compared to the prior year.
- Average Daily Census in 2021 is estimated to decline approximately 5.0%.
- Full-year Adjusted EBITDA margin, prior to Medicare Cap, is estimated to be 19.4%.
- The guidance anticipates continued weak occupancy and corresponding weak referrals from senior housing for the first half of 2021.
- We are currently estimating $10 million for Medicare Cap billing limitations in calendar year 2021.
Revenue & Expenses
Visualization of income flow from segment revenue to net income