Chemed Reports First-Quarter 2018 Results
Consolidated operating results:
-
Revenue increased 8.2% to
$439 million -
GAAP Diluted Earnings-per-Share of
$2.66 , an increase of 49.4% -
Adjusted Diluted EPS of
$2.72 , an increase of 49.5%
VITAS segment operating results:
-
Net Patient Revenue of
$292 million , an increase of 3.4% - Average Daily Census (ADC) of 17,209, an increase of 6.1%
- Admissions of 18,279, an increase of 4.1%
-
Net Income of
$32.0 million , an increase of 55.4% -
Adjusted EBITDA of
$44.7 million , an increase of 16.3%
Roto-Rooter segment operating results:
-
Revenue of
$147 million , an increase of 19.1% -
Net Income of
$22.9 million , an increase of 56.9% -
Adjusted EBITDA of
$33.9 million , an increase of 28.7% - Adjusted EBITDA margin of 23.0%, an increase of 171 basis points
Effective
This resulted in the reclassification of net room and board expenses
associated with certain patients residing in nursing homes to be
reclassified from cost of services to revenue, effectively reducing
VITAS revenue and cost of sales by
The discussion of operating results below does recast net room and board and estimated uncollectable receivables in the first quarter of 2017 to facilitate analysis of operating results in a format consistent with the 2018 revenue recognition accounting standard.
VITAS
VITAS net revenue was
In the first quarter of 2018, VITAS reversed
At
Of VITAS’ 30 unique
Average revenue per patient per day in the quarter was
The first quarter of 2018 gross margin, excluding Medicare Cap, was 21.7%, which is a 97-basis point improvement when compared to the first quarter of 2017.
Selling, general and administrative expense was
Roto-Rooter
Roto-Rooter’s plumbing and drain cleaning business generated sales of
Roto-Rooter’s gross margin in the quarter was 47.5%, a 69-basis point
decline when compared to the first quarter of 2017. Adjusted EBITDA in
the first quarter of 2018 totaled
Chemed Consolidated
As of
In
During the quarter, the Company repurchased 300,000 shares of
Guidance for 2018
The first-quarter 2018 operating results did exceed
Conference Call
A taped replay of the conference call will be available beginning approximately 24 hours after the call's conclusion. It can be accessed by dialing (855) 859-2056 for U.S. and Canadian callers and +1 (404) 537-3406 for international callers and will be available for one week following the live call. The replay Conference ID is 9986979. An archived webcast will also be available at www.chemed.com.
This press release contains information about Chemed’s EBITDA, Adjusted
EBITDA and Adjusted Diluted EPS, which are not measures derived in
accordance with GAAP and which exclude components that are important to
understanding Chemed’s financial performance. In reporting its operating
results,
Forward-Looking Statements
Certain statements contained in this press release and the accompanying
tables are "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. The words "believe,"
"expect," "hope," "anticipate," "plan" and similar expressions identify
forward-looking statements, which speak only as of the date the
statement was made.
These risks and uncertainties arise from, among other things, possible
changes in regulations governing the hospice care or plumbing and drain
cleaning industries; periodic changes in reimbursement levels and
procedures under
10-K and its other filings with the
CHEMED CORPORATION AND SUBSIDIARY COMPANIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(in thousands, except per share data)(unaudited) | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2018 | 2017 | |||||||||||||||
Service revenues and sales | $ | 439,176 | $ | 405,864 | ||||||||||||
Cost of services provided and goods sold | 304,536 | 285,140 | ||||||||||||||
Selling, general and administrative expenses (aa) | 69,000 | 69,458 | ||||||||||||||
Depreciation | 9,267 | 8,893 | ||||||||||||||
Amortization | 27 | 46 | ||||||||||||||
Other operating (income)/expense | (51 | ) | 873 | |||||||||||||
Total costs and expenses | 382,779 | 364,410 | ||||||||||||||
Income from operations | 56,397 | 41,454 | ||||||||||||||
Interest expense | (1,207 | ) | (995 | ) | ||||||||||||
Other income--net (bb) | 1,018 | 2,463 | ||||||||||||||
Income before income taxes | 56,208 | 42,922 | ||||||||||||||
Income taxes | (11,212 | ) | (13,078 | ) | ||||||||||||
Net income | $ | 44,996 | $ | 29,844 | ||||||||||||
Earnings Per Share | ||||||||||||||||
Net income | $ | 2.79 | $ | 1.84 | ||||||||||||
Average number of shares outstanding | 16,100 | 16,219 | ||||||||||||||
Diluted Earnings Per Share | ||||||||||||||||
Net income | $ | 2.66 | $ | 1.78 | ||||||||||||
Average number of shares outstanding | 16,887 | 16,801 | ||||||||||||||
(aa) | Selling, general and administrative ("SG&A") expenses comprise (in thousands): | |||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2018 | 2017 | |||||||||||||||
SG&A expenses before long-term incentive compensation, expenses | ||||||||||||||||
related to the O.I.G. investigation and the impact of market value | ||||||||||||||||
adjustments related to deferred compensation trusts | $ | 66,220 | $ | 63,732 | ||||||||||||
Long-term incentive compensation | 1,920 | 961 | ||||||||||||||
Market value gains related to deferred compensation trusts | 860 | 2,615 | ||||||||||||||
Expenses related to O.I.G. investigation | - | 2,150 | ||||||||||||||
Total SG&A expenses | $ | 69,000 | $ | 69,458 | ||||||||||||
(bb) | Other income--net comprises (in thousands): | |||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2018 | 2017 | |||||||||||||||
Market value gains related to deferred compensation trusts | $ | 860 | $ | 2,615 | ||||||||||||
Interest income | 158 | 85 | ||||||||||||||
Loss on disposal of property and equipment | - | (236 | ) | |||||||||||||
Other | - | (1 | ) | |||||||||||||
Total other income--net | $ | 1,018 | $ | 2,463 | ||||||||||||
CHEMED CORPORATION AND SUBSIDIARY COMPANIES | |||||||||||||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||||||||||||
(in thousands, except per share data)(unaudited) | |||||||||||||||||||
March 31, | |||||||||||||||||||
2018 | 2017 | ||||||||||||||||||
Assets | |||||||||||||||||||
Current assets | |||||||||||||||||||
Cash and cash equivalents |
$ | 13,686 | $ | 47,049 | |||||||||||||||
Accounts receivable less allowances | 111,332 | 109,726 | |||||||||||||||||
Inventories | 5,274 | 5,433 | |||||||||||||||||
Prepaid income taxes | 16,160 | 1,663 | |||||||||||||||||
Prepaid expenses | 15,047 | 12,102 | |||||||||||||||||
Total current assets | 161,499 | 175,973 | |||||||||||||||||
Investments of deferred compensation plans held in trust | 66,163 | 56,596 | |||||||||||||||||
Properties and equipment, at cost less accumulated depreciation | 144,706 | 119,394 | |||||||||||||||||
Identifiable intangible assets less accumulated amortization | 55,163 | 54,976 | |||||||||||||||||
Goodwill | 477,964 | 472,391 | |||||||||||||||||
Other assets | 7,161 | 6,901 | |||||||||||||||||
Total Assets | $ | 912,656 | $ | 886,231 | |||||||||||||||
Liabilities | |||||||||||||||||||
Current liabilities | |||||||||||||||||||
Accounts payable | $ | 42,639 | $ | 29,341 | |||||||||||||||
Current portion of long-term debt | 10,000 | 9,375 | |||||||||||||||||
Income taxes | - | 12,614 | |||||||||||||||||
Accrued insurance | 48,303 | 54,150 | |||||||||||||||||
Accrued compensation | 49,685 | 37,382 | |||||||||||||||||
Accrued legal | 1,643 | 2,471 | |||||||||||||||||
Other current liabilities | 25,027 | 19,050 | |||||||||||||||||
Total current liabilities | 177,297 | 164,383 | |||||||||||||||||
Deferred income taxes | 13,832 | 11,875 | |||||||||||||||||
Long-term debt | 132,500 | 137,500 | |||||||||||||||||
Deferred compensation liabilities | 65,289 | 56,024 | |||||||||||||||||
Other liabilities | 16,779 | 15,805 | |||||||||||||||||
Total Liabilities | 405,697 | 385,587 | |||||||||||||||||
Stockholders' Equity | |||||||||||||||||||
Capital stock | 34,885 | 34,404 | |||||||||||||||||
Paid-in capital | 712,991 | 651,269 | |||||||||||||||||
Retained earnings | 1,078,690 | 983,742 | |||||||||||||||||
Treasury stock, at cost | (1,321,843 | ) | (1,170,933 | ) | |||||||||||||||
Deferred compensation payable in Company stock | 2,236 | 2,162 | |||||||||||||||||
Total Stockholders' Equity | 506,959 | 500,644 | |||||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 912,656 | $ | 886,231 | |||||||||||||||
CHEMED CORPORATION AND SUBSIDIARY COMPANIES | |||||||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||||||
(in thousands)(unaudited) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
March 31, | |||||||||||||||||||
2018 | 2017 | ||||||||||||||||||
Cash Flows from Operating Activities | |||||||||||||||||||
Net income | $ | 44,996 | $ | 29,844 | |||||||||||||||
Adjustments to reconcile net income to net cash provided | |||||||||||||||||||
by operating activities: | |||||||||||||||||||
Depreciation and amortization | 9,294 | 8,939 | |||||||||||||||||
Provision for uncollectible accounts receivable |
- |
4,249 | |||||||||||||||||
Stock option expense | 3,653 | 3,001 | |||||||||||||||||
Benefit for deferred income taxes | (2,807 | ) | (2,415 | ) | |||||||||||||||
Noncash long-term incentive compensation | 1,721 | 827 | |||||||||||||||||
Amortization of restricted stock awards | 291 | 336 | |||||||||||||||||
Amortization of debt issuance costs | 128 | 129 | |||||||||||||||||
Changes in operating assets and liabilities | |||||||||||||||||||
Decrease in accounts receivable |
1,591 |
|
17,972 | ||||||||||||||||
Decrease in inventories | 60 | 322 | |||||||||||||||||
Decrease in prepaid expenses | 1,045 | 1,003 | |||||||||||||||||
Decrease in accounts payable and other current liabilities | (7,911 | ) | (10,766 | ) | |||||||||||||||
Increase in income taxes | 13,642 | 14,655 | |||||||||||||||||
Increase in other assets |
(4,263 |
) | (2,140 | ) | |||||||||||||||
Increase in other liabilities | 3,758 | 1,992 | |||||||||||||||||
Other sources/(uses) | (5 | ) | 838 | ||||||||||||||||
Net cash provided by operating activities | 65,193 | 68,786 | |||||||||||||||||
Cash Flows from Investing Activities | |||||||||||||||||||
Capital expenditures | (12,648 | ) | (9,020 | ) | |||||||||||||||
Business combinations | (1,450 | ) | - | ||||||||||||||||
Other sources/(uses) | 181 | (70 | ) | ||||||||||||||||
Net cash used by investing activities | (13,917 | ) | (9,090 | ) | |||||||||||||||
Cash Flows from Financing Activities | |||||||||||||||||||
Proceeds from revolving line of credit | 134,300 | 116,000 | |||||||||||||||||
Payments on revolving line of credit | (90,500 | ) | (76,000 | ) | |||||||||||||||
Purchase of treasury stock | (81,125 | ) | (54,262 | ) | |||||||||||||||
Proceeds from exercise of stock options | 8,923 | 5,635 | |||||||||||||||||
Change in cash overdrafts payable | (6,671 | ) | (8,607 | ) | |||||||||||||||
Capital stock surrendered to pay taxes on stock-based compensation | (6,377 | ) | (4,744 | ) | |||||||||||||||
Dividends paid | (4,533 | ) | (4,251 | ) | |||||||||||||||
Payments on other long-term debt | (2,500 | ) | (1,875 | ) | |||||||||||||||
Other sources/(uses) | (228 | ) | 147 | ||||||||||||||||
Net cash used by financing activities | (48,711 | ) | (27,957 | ) | |||||||||||||||
Increase in Cash and Cash Equivalents | 2,565 | 31,739 | |||||||||||||||||
Cash and cash equivalents at beginning of year | 11,121 | 15,310 | |||||||||||||||||
Cash and cash equivalents at end of period | $ | 13,686 | $ | 47,049 | |||||||||||||||
CHEMED CORPORATION AND SUBSIDIARY COMPANIES |
|||||||||||||||||||||
CONSOLIDATING STATEMENTS OF INCOME | |||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2018 AND 2017 | |||||||||||||||||||||
(in thousands)(unaudited) | |||||||||||||||||||||
Chemed | |||||||||||||||||||||
VITAS | Roto-Rooter | Corporate | Consolidated | ||||||||||||||||||
2018 | |||||||||||||||||||||
Service revenues and sales | $ | 292,013 | $ | 147,163 | $ | - | $ | 439,176 | |||||||||||||
Cost of services provided and goods sold | 227,256 | 77,280 | - | 304,536 | |||||||||||||||||
Selling, general and administrative expenses (a) | 20,510 | 36,098 | 12,392 | 69,000 | |||||||||||||||||
Depreciation | 4,797 | 4,443 | 27 | 9,267 | |||||||||||||||||
Amortization | - | 27 | - | 27 | |||||||||||||||||
Other operating expenses | (18 | ) | (33 | ) | - | (51 | ) | ||||||||||||||
Total costs and expenses | 252,545 | 117,815 | 12,419 | 382,779 | |||||||||||||||||
Income/(loss) from operations | 39,468 | 29,348 | (12,419 | ) | 56,397 | ||||||||||||||||
Interest expense | (52 | ) | (91 | ) | (1,064 | ) | (1,207 | ) | |||||||||||||
Intercompany interest income/(expense) | 3,095 | 1,677 | (4,772 | ) | - | ||||||||||||||||
Other income/(expense)—net | 142 | 16 | 860 | 1,018 | |||||||||||||||||
Income/(loss) before income taxes | 42,653 | 30,950 | (17,395 | ) | 56,208 | ||||||||||||||||
Income taxes (a) | (10,638 | ) | (8,012 | ) | 7,438 | (11,212 | ) | ||||||||||||||
Net income/(loss) | $ | 32,015 | $ | 22,938 | $ | (9,957 | ) | $ | 44,996 | ||||||||||||
2017 | |||||||||||||||||||||
Service revenues and sales | $ | 282,316 | $ | 123,548 | $ | - | $ | 405,864 | |||||||||||||
Cost of services provided and goods sold | 221,678 | 63,462 | - | 285,140 | |||||||||||||||||
Selling, general and administrative expenses (b) | 24,294 | 33,460 | 11,704 | 69,458 | |||||||||||||||||
Depreciation | 4,778 | 3,984 | 131 | 8,893 | |||||||||||||||||
Amortization | 14 | 32 | - | 46 | |||||||||||||||||
Other operating expenses | 873 | - | - | 873 | |||||||||||||||||
Total costs and expenses | 251,637 | 100,938 | 11,835 | 364,410 | |||||||||||||||||
Income/(loss) from operations | 30,679 | 22,610 | (11,835 | ) | 41,454 | ||||||||||||||||
Interest expense | (55 | ) | (99 | ) | (841 | ) | (995 | ) | |||||||||||||
Intercompany interest income/(expense) | 2,702 | 1,310 | (4,012 | ) | - | ||||||||||||||||
Other income/(expense)-net | (80 | ) | (72 | ) | 2,615 | 2,463 | |||||||||||||||
Income/(loss) before income taxes | 33,246 | 23,749 | (14,073 | ) | 42,922 | ||||||||||||||||
Income taxes (b) | (12,649 | ) | (9,125 | ) | 8,696 | (13,078 | ) | ||||||||||||||
Net income/(loss) | $ | 20,597 | $ | 14,624 | $ | (5,377 | ) | $ | 29,844 |
The "Footnotes to Financial Statements" are integral parts of this financial information.
CHEMED CORPORATION AND SUBSIDIARY COMPANIES | ||||||||||||||||||||||
CONSOLIDATING SUMMARY OF EBITDA | ||||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2018 AND 2017 | ||||||||||||||||||||||
(in thousands)(unaudited) | ||||||||||||||||||||||
Chemed | ||||||||||||||||||||||
VITAS | Roto-Rooter | Corporate | Consolidated | |||||||||||||||||||
2018 | ||||||||||||||||||||||
Net income/(loss) | $ | 32,015 | $ | 22,938 | $ | (9,957 | ) | $ | 44,996 | |||||||||||||
Add/(deduct): | ||||||||||||||||||||||
Interest expense | 52 | 91 | 1,064 | 1,207 | ||||||||||||||||||
Income taxes | 10,638 | 8,012 | (7,438 | ) | 11,212 | |||||||||||||||||
Depreciation | 4,797 | 4,443 | 27 | 9,267 | ||||||||||||||||||
Amortization | - | 27 | - | 27 | ||||||||||||||||||
EBITDA | 47,502 | 35,511 | (16,304 | ) | 66,709 | |||||||||||||||||
Add/(deduct): | ||||||||||||||||||||||
Intercompany interest income/(expense) |
(3,095 | ) | (1,677 | ) | 4,772 | - | ||||||||||||||||
Interest income | (142 | ) | (16 | ) | - | (158 | ) | |||||||||||||||
Amortization of stock awards | 70 | 65 | 156 | 291 | ||||||||||||||||||
Medicare cap sequestration adjustment | 352 | - | - | 352 | ||||||||||||||||||
Stock option expense | - | - | 3,653 | 3,653 | ||||||||||||||||||
Long-term incentive compensation | - | - | 1,920 | 1,920 | ||||||||||||||||||
Adjusted EBITDA | $ | 44,687 | $ | 33,883 | $ | (5,803 | ) | $ | 72,767 | |||||||||||||
2017 | ||||||||||||||||||||||
Net income/(loss) | $ | 20,597 | $ | 14,624 | $ | (5,377 | ) | $ | 29,844 | |||||||||||||
Add/(deduct): | ||||||||||||||||||||||
Interest expense | 55 | 99 | 841 | 995 | ||||||||||||||||||
Income taxes | 12,649 | 9,125 | (8,696 | ) | 13,078 | |||||||||||||||||
Depreciation | 4,778 | 3,984 | 131 | 8,893 | ||||||||||||||||||
Amortization | 14 | 32 | - | 46 | ||||||||||||||||||
EBITDA | 38,093 | 27,864 | (13,101 | ) | 52,856 | |||||||||||||||||
Add/(deduct): | ||||||||||||||||||||||
Intercompany interest income/(expense) | (2,702 | ) | (1,310 | ) | 4,012 | - | ||||||||||||||||
Interest income | (70 | ) | (15 | ) | - | (85 | ) | |||||||||||||||
Expenses related to O.I.G. investigation | 2,150 | - | - | 2,150 | ||||||||||||||||||
Amortization of stock awards | 78 | 70 | 188 | 336 | ||||||||||||||||||
Program closure expenses | 873 | - | - | 873 | ||||||||||||||||||
Advertising cost adjustment | - | (274 | ) | - | (274 | ) | ||||||||||||||||
Stock option expense | - | - | 3,001 | 3,001 | ||||||||||||||||||
Long-term incentive compensation | - | - | 961 | 961 | ||||||||||||||||||
Adjusted EBITDA | $ | 38,422 | $ | 26,335 | $ | (4,939 | ) | $ | 59,818 |
The "Footnotes to Financial Statements" are integral parts of this financial information.
CHEMED CORPORATION AND SUBSIDIARY COMPANIES | ||||||||||||||
RECONCILIATION OF ADJUSTED NET INCOME | ||||||||||||||
(in thousands, except per share data)(unaudited) | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2018 | 2017 | |||||||||||||
Net income as reported | $ | 44,996 | $ | 29,844 | ||||||||||
Add after-tax cost of: | ||||||||||||||
Excess tax benefits on stock compensation | (3,798 | ) | (3,695 | ) | ||||||||||
Stock option expense | 2,891 | 1,897 | ||||||||||||
Long-term incentive compensation | 1,499 | 608 | ||||||||||||
Medicare cap sequestration adjustment | 263 | - | ||||||||||||
Expenses related to O.I.G. investigation | - | 1,328 | ||||||||||||
Program closure expenses | - | 513 | ||||||||||||
Adjusted net income | $ | 45,851 | $ | 30,495 | ||||||||||
Diluted Earnings Per Share As Reported | ||||||||||||||
Net income | $ | 2.66 | $ | 1.78 | ||||||||||
Average number of shares outstanding | 16,887 | 16,801 | ||||||||||||
Adjusted Diluted Earnings Per Share | ||||||||||||||
Adjusted net income | $ | 2.72 | $ | 1.82 | ||||||||||
Average number of shares outstanding | 16,887 | 16,801 |
The "Footnotes to Financial Statements" are integral parts of this financial information.
CHEMED CORPORATION AND SUBSIDIARY COMPANIES | ||||||||||||||
OPERATING STATISTICS FOR VITAS SEGMENT | ||||||||||||||
(unaudited) | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
OPERATING STATISTICS | 2018 | 2017 | ||||||||||||
Net revenue ($000) (c) |
||||||||||||||
Homecare | $ | 241,031 | $ |
224,562 |
||||||||||
Inpatient | 22,108 | 23,246 | ||||||||||||
Continuous care | 30,766 | 32,857 | ||||||||||||
Other | 1,741 |
1,651 |
||||||||||||
Subtotal |
$ | 295,646 | $ | 282,316 | ||||||||||
Room and board, net | (2,618 | ) | - | |||||||||||
Contractual allowances | (2,833 | ) | - | |||||||||||
Medicare cap allowance | 1,818 | - | ||||||||||||
Net Revenue | $ | 292,013 | $ | 282,316 | ||||||||||
Net revenue as a percent of total before Medicare cap allowance |
||||||||||||||
Homecare | 81.5 | % |
79.5 |
% | ||||||||||
Inpatient | 7.5 | 8.2 | ||||||||||||
Continuous care | 10.4 | 11.6 | ||||||||||||
Other | 0.6 |
0.7 |
||||||||||||
Subtotal |
100.0 | 100.0 | ||||||||||||
Room and board, net | (0.9 | ) | - | |||||||||||
Contractual allowances |
(0.9 |
) | - | |||||||||||
Medicare cap allowance | 0.6 | - | ||||||||||||
Net Revenue | 98.8 | % | 100.0 | % | ||||||||||
Average daily census ("ADC") (days) | ||||||||||||||
Homecare | 13,162 | 12,287 | ||||||||||||
Nursing home | 3,215 | 3,052 | ||||||||||||
Routine homecare | 16,377 | 15,339 | ||||||||||||
Inpatient | 352 | 378 | ||||||||||||
Continuous care | 480 | 505 | ||||||||||||
Total | 17,209 | 16,222 | ||||||||||||
Total Admissions | 18,279 | 17,563 | ||||||||||||
Total Discharges | 17,558 | 17,213 | ||||||||||||
Average length of stay (days) | 87.9 | 88.7 | ||||||||||||
Median length of stay (days) | 15.0 | 15.0 | ||||||||||||
ADC by major diagnosis | ||||||||||||||
Neurological | 18.5 | % | 19.7 | % | ||||||||||
Cerebro | 36.2 | 34.4 | ||||||||||||
Cancer | 13.9 | 15.1 | ||||||||||||
Cardio | 16.4 | 16.6 | ||||||||||||
Respiratory | 8.2 | 7.9 | ||||||||||||
Other | 6.8 | 6.3 | ||||||||||||
Total | 100.0 | % | 100.0 | % | ||||||||||
Admissions by major diagnosis | ||||||||||||||
Neurological | 11.4 | % | 10.9 | % | ||||||||||
Cerebro | 22.6 | 22.1 | ||||||||||||
Cancer | 28.0 | 29.5 | ||||||||||||
Cardio | 15.5 | 15.1 | ||||||||||||
Respiratory | 11.7 | 11.7 | ||||||||||||
Other | 10.8 | 10.7 | ||||||||||||
Total | 100.0 | % | 100.0 | % | ||||||||||
Direct patient care margins (d) |
||||||||||||||
Routine homecare |
52.1 |
% | 51.3 | % | ||||||||||
Inpatient |
7.5 |
5.9 | ||||||||||||
Continuous care |
17.7 |
15.6 | ||||||||||||
Homecare margin drivers (dollars per patient day) | ||||||||||||||
Labor costs | $ | 58.63 | $ | 58.64 | ||||||||||
Combined drug, home medical equipment and medical supplies cost |
14.47 | 15.14 | ||||||||||||
Inpatient margin drivers (dollars per patient day) | ||||||||||||||
Labor costs | $ | 362.75 |
|
$ | 369.99 | |||||||||
Continuous care margin drivers (dollars per patient day) | ||||||||||||||
Labor costs | $ | 567.51 | $ | 590.73 | ||||||||||
Estimated uncollectable accounts as a percent of revenues |
1.0 |
% |
1.2 | % | ||||||||||
Accounts receivable -- | ||||||||||||||
Days of revenue outstanding- excluding unapplied Medicare payments | 32.6 | 35.9 | ||||||||||||
Days of revenue outstanding- including unapplied Medicare payments | 31.4 | 24.9 |
The "Footnotes to Financial Statements" are integral parts of this financial information.
CHEMED CORPORATION AND SUBSIDIARY COMPANIES | |||||||||||||||||||
FOOTNOTES TO FINANCIAL STATEMENTS | |||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2018 AND 2017 | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
(a) |
Included in the results of operations for the three months ended
March 31, 2018, are the following significant credits/(charges) |
||||||||||||||||||
VITAS | Corporate | Total | |||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||
Medicare cap sequestration adjustment | $ | (352 | ) | $ | - | $ | (352 | ) | |||||||||||
Stock option expense | - | (3,653 | ) | (3,653 | ) | ||||||||||||||
Long-term incentive compensation | - | (1,920 | ) | (1,920 | ) | ||||||||||||||
Pretax impact on earnings | (352 | ) | (5,573 | ) | (5,925 | ) | |||||||||||||
Excess tax benefits on stock compensation | - | 3,798 | 3,798 | ||||||||||||||||
Income tax benefit on the above | 89 | 1,183 | 1,272 | ||||||||||||||||
After-tax impact on earnings | $ | (263 | ) | $ | (592 | ) | $ | (855 | ) | ||||||||||
|
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(b) |
Included in the results of operations for the three months ended
March 31, 2017, are the following significant credits/(charges) |
||||||||||||||||||
VITAS | Corporate | Total | |||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||
Expenses related to O.I.G. investigation | $ | (2,150 | ) | $ | - | $ | (2,150 | ) | |||||||||||
Program closure expenses | (873 | ) | - | (873 | ) | ||||||||||||||
Stock option expense | - | (3,001 | ) | (3,001 | ) | ||||||||||||||
Long-term incentive compensation | - | (961 | ) | (961 | ) | ||||||||||||||
Pretax impact on earnings | (3,023 | ) | (3,962 | ) | (6,985 | ) | |||||||||||||
Excess tax benefits on stock compensation | - | 3,695 | 3,695 | ||||||||||||||||
Income tax benefit on the above | 1,182 | 1,457 | 2,639 | ||||||||||||||||
After-tax impact on earnings | $ | (1,841 | ) | $ | 1,190 | $ | (651 | ) | |||||||||||
(c) |
VITAS has 11 large (greater than 450 ADC), 18 medium (greater than
200 but less than 450 ADC) and 16 small (less than 200 ADC) hospice |
||||||||||||||||||
(d) |
Amounts exclude indirect patient care and administrative costs, as well as Medicare Cap billing limitation. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20180419006333/en/
Source:
Chemed Corporation
David P. Williams, 513-762-6901