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Dec 31, 2021
Chemed Q4 2021 Earnings Report
Chemed's Q4 2021 financial results were reported, showing a mix of growth and decline across its segments.
Key Takeaways
Chemed Corporation reported a 1.4% increase in revenue to $541 million. GAAP EPS was $4.81 and adjusted EPS increased by 2.3% to $5.25. The VITAS segment experienced revenue and ADC declines while Roto-Rooter saw revenue and net income growth.
Consolidated revenue increased by 1.4% to $541 million.
GAAP Diluted Earnings-per-Share (EPS) was $4.81.
Adjusted Diluted EPS increased 2.3% to $5.25.
Roto-Rooter's revenue increased by 11.8% to $225 million.
Chemed
Chemed
Chemed Revenue by Segment
Revenue by Segment
VITAS Revenue
CapyFin.comRoto-Rooter Revenue
CapyFin.com Forward Guidance
Chemed provided guidance for 2022, anticipating challenges for VITAS due to senior housing occupancy and labor costs, while Roto-Rooter is expected to achieve revenue growth.
Positive Outlook
- Roto-Rooter is forecasted to achieve full-year 2022 revenue growth of 8.0% to 9.5%.
- Roto-Rooter’s adjusted EBITDA margin for 2022 is expected to be 28.5% to 29.5%.
- Chemed has a strong track record of navigating the pandemic environment.
- Chemed expects some moderation starting with the next reimbursement increase on October 1, 2022.
- Chemed's management is focused on key operating metrics.
Challenges Ahead
- VITAS 2022 revenue, prior to Medicare Cap, is estimated to decline 1.5% to 2.5% when compared to 2021.
- ADC is estimated to decline 1.0% to 1.5%.
- Full year adjusted EBITDA margin, prior to Medicare Cap, is estimated to be 15.5% to 16.0%.
- Medicare hospice reimbursement rate increases are based on a government formula that effectively delays actual wage inflation from impacting hospice reimbursement by 12 to 18 months.
- Labor cost increases and related margin pressure are anticipated to continue through all of 2022.
Revenue & Expenses
Visualization of income flow from segment revenue to net income