Chemed Reports First-Quarter 2019 Results
Consolidated operating results:
-
Revenue increased 5.2% to
$462 million -
GAAP Diluted Earnings-per-Share (EPS) of
$2.70 -
Adjusted Diluted EPS of
$2.92 , an increase of 7.4%
VITAS segment operating results:
-
Net Patient Revenue of
$307 million , an increase of 5.1% - Average Daily Census (ADC) of 18,345, an increase of 6.6%
- Admissions of 17,758, a decline of 2.9%
-
Net Income, excluding certain discrete items, of
$34.6 million , an increase of 7.3% -
Adjusted EBITDA, excluding cap, of
$49.7 million , an increase of 16.0%
Roto-Rooter segment operating results:
-
Revenue of
$155 million , an increase of 5.5% -
Net Income, excluding certain discrete items, of
$23.3 million , an increase of 1.8% -
Adjusted EBITDA of
$33.5 million , a slight decline of 1.1% - Adjusted EBITDA margin of 21.6%, a decrease of 145-basis points
VITAS
VITAS net revenue was
In the first quarter of 2019, VITAS accrued
Of VITAS’ 30
Average revenue per patient per day in the quarter was
The first quarter of 2019 gross margin, excluding Medicare Cap, was 22.7%, which is a 102-basis point increase when compared to the first quarter of 2018.
Selling, general and administrative expense was
Roto-Rooter
Roto-Rooter generated quarterly revenue of
Commercial drain cleaning revenue increased 8.3%, commercial plumbing and excavation increased 5.3% and commercial water restoration declined 26.4%. Overall, commercial revenue increased 3.4%.
Residential drain cleaning increased 5.8%, plumbing and excavation increased 7.5% and residential water restoration increased 3.8%. Aggregate residential sales increased 5.9%.
Roto-Rooter’s gross margin in the quarter was 47.0%, a 44-basis point
decline when compared to the first quarter of 2018. Adjusted EBITDA in
the first quarter of 2019 totaled
Chemed Consolidated
As of
In
During the quarter, the Company repurchased 150,000 shares of
Guidance for 2019
Revenue growth for VITAS in 2019, prior to Medicare Cap, is estimated to
be in the range of 5.5% to 6.0%. Admissions are estimated to expand
approximately 3.0% to 4.0% and Average Daily Census in 2019 is estimated
to expand approximately 4.0% to 5.0%. Full-year Adjusted EBITDA margin,
prior to Medicare Cap, is estimated to be 15.9%. We are currently
estimating
Roto-Rooter is forecasted to achieve full-year 2019 revenue growth of 9.0% to 10.0%. This revenue estimate is based upon increased job pricing of approximately 2%, continued growth in core plumbing and drain cleaning services as well as continued but slowing revenue growth from water restoration services. Roto-Rooter’s Adjusted EBITDA margin for 2019 is estimated at 23.7%.
Based upon the above, full-year 2019 adjusted earnings per diluted
share, excluding non-cash expense for stock options, tax benefits from
stock options, costs related to litigation, and other discrete items, is
estimated to be in the range of
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 5375966. 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
CHEMED CORPORATION AND SUBSIDIARY COMPANIES |
|||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME |
|||||||||||||||||||
(in thousands, except per share data)(unaudited) |
|||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||
2019 | 2018 | ||||||||||||||||||
Service revenues and sales | $ | 462,034 | $ | 439,176 | |||||||||||||||
Cost of services provided and goods sold | 321,951 | 304,536 | |||||||||||||||||
Selling, general and administrative expenses (aa) | 74,029 | 69,000 | |||||||||||||||||
Depreciation | 9,710 | 9,267 | |||||||||||||||||
Amortization | 519 | 27 | |||||||||||||||||
Other operating (income)/expense | 6,353 | (51 | ) | ||||||||||||||||
Total costs and expenses | 412,562 | 382,779 | |||||||||||||||||
Income from operations | 49,472 | 56,397 | |||||||||||||||||
Interest expense | (1,124 | ) | (1,207 | ) | |||||||||||||||
Other income--net (bb) | 2,439 | 1,018 | |||||||||||||||||
Income before income taxes | 50,787 | 56,208 | |||||||||||||||||
Income taxes | (6,120 | ) | (11,212 | ) | |||||||||||||||
Net income | $ | 44,667 | $ | 44,996 | |||||||||||||||
Earnings Per Share | |||||||||||||||||||
Net income | $ | 2.80 | $ | 2.79 | |||||||||||||||
Average number of shares outstanding | 15,954 | 16,100 | |||||||||||||||||
Diluted Earnings Per Share | |||||||||||||||||||
Net income | $ | 2.70 | $ | 2.66 | |||||||||||||||
Average number of shares outstanding | 16,525 | 16,887 | |||||||||||||||||
(aa) | Selling, general and administrative ("SG&A") expenses comprise (in thousands): | ||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||
2019 | 2018 | ||||||||||||||||||
SG&A expenses before long-term incentive compensation and the impact of market value adjustments related to deferred compensation trusts |
$ | 70,203 | $ | 66,220 | |||||||||||||||
Market value gains related to deferred compensation trusts | 2,338 | 860 | |||||||||||||||||
Long-term incentive compensation | 1,488 | 1,920 | |||||||||||||||||
Total SG&A expenses | $ | 74,029 | $ | 69,000 | |||||||||||||||
(bb) | Other income--net comprises (in thousands): | ||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||
2019 | 2018 | ||||||||||||||||||
Market value gains related to deferred compensation trusts | $ | 2,338 | $ | 860 | |||||||||||||||
Interest income | 101 | 158 | |||||||||||||||||
Total other income--net | $ | 2,439 | $ | 1,018 | |||||||||||||||
CHEMED CORPORATION AND SUBSIDIARY COMPANIES |
|||||||||||||||||||||
CONSOLIDATED BALANCE SHEETS |
|||||||||||||||||||||
(in thousands, except per share data)(unaudited) |
|||||||||||||||||||||
March 31, | |||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||
Assets | |||||||||||||||||||||
Current assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 8,768 | $ | 13,686 | |||||||||||||||||
Accounts receivable | 119,575 | 111,332 | |||||||||||||||||||
Inventories | 6,315 | 5,274 | |||||||||||||||||||
Prepaid income taxes | 5,349 | 16,160 | |||||||||||||||||||
Prepaid expenses | 19,148 | 15,047 | |||||||||||||||||||
Total current assets | 159,155 | 161,499 | |||||||||||||||||||
Investments of deferred compensation plans held in trust | 70,632 | 66,163 | |||||||||||||||||||
Properties and equipment, at cost less accumulated depreciation | 164,629 | 144,706 | |||||||||||||||||||
Lease right of use assets | 87,811 | - | |||||||||||||||||||
Identifiable intangible assets less accumulated amortization | 67,868 | 55,163 | |||||||||||||||||||
Goodwill | 510,598 | 477,964 | |||||||||||||||||||
Other assets | 9,138 | 7,161 | |||||||||||||||||||
Total Assets | $ | 1,069,831 | $ | 912,656 | |||||||||||||||||
Liabilities | |||||||||||||||||||||
Current liabilities | |||||||||||||||||||||
Accounts payable | $ | 39,737 | $ | 42,639 | |||||||||||||||||
Current portion of long-term debt | - | 10,000 | |||||||||||||||||||
Income taxes | 3,922 | - | |||||||||||||||||||
Accrued insurance | 48,477 | 48,303 | |||||||||||||||||||
Accrued compensation | 52,526 | 49,685 | |||||||||||||||||||
Accrued legal | 8,163 | 1,643 | |||||||||||||||||||
Short-term lease liability | 30,699 | - | |||||||||||||||||||
Other current liabilities | 33,576 | 25,027 | |||||||||||||||||||
Total current liabilities | 217,100 | 177,297 | |||||||||||||||||||
Deferred income taxes | 18,108 | 13,832 | |||||||||||||||||||
Long-term debt | 100,000 | 132,500 | |||||||||||||||||||
Deferred compensation liabilities | 70,934 | 65,289 | |||||||||||||||||||
Long-term lease liability | 67,960 | - | |||||||||||||||||||
Other liabilities | 7,719 | 16,779 | |||||||||||||||||||
Total Liabilities | 481,821 | 405,697 | |||||||||||||||||||
Stockholders' Equity | |||||||||||||||||||||
Capital stock | 35,521 | 34,885 | |||||||||||||||||||
Paid-in capital | 803,701 | 712,991 | |||||||||||||||||||
Retained earnings | 1,265,485 | 1,078,690 | |||||||||||||||||||
Treasury stock, at cost | (1,519,077 | ) | (1,321,843 | ) | |||||||||||||||||
Deferred compensation payable in Company stock | 2,380 | 2,236 | |||||||||||||||||||
Total Stockholders' Equity | 588,010 | 506,959 | |||||||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 1,069,831 | $ | 912,656 | |||||||||||||||||
CHEMED CORPORATION AND SUBSIDIARY COMPANIES |
|||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||||||||||||||||||
(in thousands)(unaudited) | |||||||||||||||||||||||||
Three Months Ended |
|||||||||||||||||||||||||
March 31, |
|||||||||||||||||||||||||
2019 |
2018 | ||||||||||||||||||||||||
Cash Flows from Operating Activities | |||||||||||||||||||||||||
Net income | $ | 44,667 | $ | 44,996 | |||||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||||||||||||||||||||
Depreciation and amortization | 10,229 | 9,294 | |||||||||||||||||||||||
Litigation settlement | 6,000 | - | |||||||||||||||||||||||
Stock option expense | 4,089 | 3,653 | |||||||||||||||||||||||
Benefit for deferred income taxes | (3,489 | ) | (2,807 | ) | |||||||||||||||||||||
Noncash long-term incentive compensation | 1,119 | 1,721 | |||||||||||||||||||||||
Amortization of restricted stock awards | - | 291 | |||||||||||||||||||||||
Amortization of debt issuance costs | 76 | 128 | |||||||||||||||||||||||
Changes in operating assets and liabilities | |||||||||||||||||||||||||
(Increase)/decrease in accounts receivable | (81 | ) | 1,591 | ||||||||||||||||||||||
(Increase)/decrease in inventories | (610 | ) | 60 | ||||||||||||||||||||||
Decrease in prepaid expenses | 6 | 1,045 | |||||||||||||||||||||||
Increase/(decrease) in accounts payable and other current liabilities | 348 | (7,911 | ) | ||||||||||||||||||||||
Change in current income taxes | 9,219 | 13,642 | |||||||||||||||||||||||
Increase in other assets | (5,006 | ) | (4,263 | ) | |||||||||||||||||||||
Increase in other liabilities | 6,459 | 3,758 | |||||||||||||||||||||||
Other sources/(uses) | 559 | (5 | ) | ||||||||||||||||||||||
Net cash provided by operating activities | 73,585 | 65,193 | |||||||||||||||||||||||
Cash Flows from Investing Activities | |||||||||||||||||||||||||
Capital expenditures | (13,866 | ) | (12,648 | ) | |||||||||||||||||||||
Business combinations | - | (1,450 | ) | ||||||||||||||||||||||
Other (uses)/sources | (68 | ) | 181 | ||||||||||||||||||||||
Net cash used by investing activities | (13,934 | ) | (13,917 | ) | |||||||||||||||||||||
Cash Flows from Financing Activities | |||||||||||||||||||||||||
Proceeds from revolving line of credit | 125,100 | 134,300 | |||||||||||||||||||||||
Payments on revolving line of credit | (114,300 | ) | (90,500 | ) | |||||||||||||||||||||
Purchase of treasury stock | (49,250 | ) | (81,125 | ) | |||||||||||||||||||||
Change in cash overdrafts payable | (13,303 | ) | (6,671 | ) | |||||||||||||||||||||
Proceeds from exercise of stock options | 11,827 | 8,923 | |||||||||||||||||||||||
Capital stock surrendered to pay taxes on stock-based compensation | (11,170 | ) | (6,377 | ) | |||||||||||||||||||||
Dividends paid | (4,799 | ) | (4,533 | ) | |||||||||||||||||||||
Payments on other long-term debt | - | (2,500 | ) | ||||||||||||||||||||||
Other sources/(uses) | 181 | (228 | ) | ||||||||||||||||||||||
Net cash used by financing activities | (55,714 | ) | (48,711 | ) | |||||||||||||||||||||
Increase in Cash and Cash Equivalents | 3,937 | 2,565 | |||||||||||||||||||||||
Cash and cash equivalents at beginning of year | 4,831 | 11,121 | |||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 8,768 | $ | 13,686 | |||||||||||||||||||||
CHEMED CORPORATION AND SUBSIDIARY COMPANIES |
||||||||||||||||||||||
CONSOLIDATING STATEMENTS OF INCOME |
||||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2019 AND 2018 |
||||||||||||||||||||||
(in thousands)(unaudited) | ||||||||||||||||||||||
Chemed | ||||||||||||||||||||||
VITAS | Roto-Rooter | Corporate | Consolidated | |||||||||||||||||||
2019 | ||||||||||||||||||||||
Service revenues and sales (a) | $ | 306,781 | $ | 155,253 | $ | - | $ | 462,034 | ||||||||||||||
Cost of services provided and goods sold | 239,743 | 82,208 | - | 321,951 | ||||||||||||||||||
Selling, general and administrative expenses (a) | 21,536 | 39,601 | 12,892 | 74,029 | ||||||||||||||||||
Depreciation | 4,708 | 4,963 | 39 | 9,710 | ||||||||||||||||||
Amortization | 18 | 501 | - | 519 | ||||||||||||||||||
Other operating expenses (a) | 6,354 | (1 | ) | - | 6,353 | |||||||||||||||||
Total costs and expenses | 272,359 | 127,272 | 12,931 | 412,562 | ||||||||||||||||||
Income/(loss) from operations | 34,422 | 27,981 | (12,931 | ) | 49,472 | |||||||||||||||||
Interest expense | (47 | ) | (95 | ) | (982 | ) | (1,124 | ) | ||||||||||||||
Intercompany interest income/(expense) | 4,394 | 2,195 | (6,589 | ) | - | |||||||||||||||||
Other income-net | 88 | 14 | 2,337 | 2,439 | ||||||||||||||||||
Income/(loss) before income taxes | 38,857 | 30,095 | (18,165 | ) | 50,787 | |||||||||||||||||
Income taxes (a) | (9,569 | ) | (7,109 | ) | 10,558 | (6,120 | ) | |||||||||||||||
Net income/(loss) | $ | 29,288 | $ | 22,986 | $ | (7,607 | ) | $ | 44,667 | |||||||||||||
2018 | ||||||||||||||||||||||
Service revenues and sales (b) | $ | 292,013 | $ | 147,163 | $ | - | $ | 439,176 | ||||||||||||||
Cost of services provided and goods sold | 227,256 | 77,280 | - | 304,536 | ||||||||||||||||||
Selling, general and administrative expenses (b) | 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-net | 142 | 16 | 860 | 1,018 | ||||||||||||||||||
Income/(loss) before income taxes | 42,653 | 30,950 | (17,395 | ) | 56,208 | |||||||||||||||||
Income taxes (b) | (10,638 | ) | (8,012 | ) | 7,438 | (11,212 | ) | |||||||||||||||
Net income/(loss) | $ | 32,015 | $ | 22,938 | $ | (9,957 | ) | $ | 44,996 |
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, 2019 AND 2018 |
||||||||||||||||||||||||||
(in thousands)(unaudited) | ||||||||||||||||||||||||||
Chemed | ||||||||||||||||||||||||||
VITAS | Roto-Rooter | Corporate | Consolidated | |||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||
Net income/(loss) | $ | 29,288 | $ | 22,986 | $ | (7,607 | ) | $ | 44,667 | |||||||||||||||||
Add/(deduct): | ||||||||||||||||||||||||||
Interest expense | 47 | 95 | 982 | 1,124 | ||||||||||||||||||||||
Income taxes | 9,569 | 7,109 | (10,558 | ) | 6,120 | |||||||||||||||||||||
Depreciation | 4,708 | 4,963 | 39 | 9,710 | ||||||||||||||||||||||
Amortization | 18 | 501 | - | 519 | ||||||||||||||||||||||
EBITDA | 43,630 | 35,654 | (17,144 | ) | 62,140 | |||||||||||||||||||||
Add/(deduct): | ||||||||||||||||||||||||||
Intercompany interest income/(expense) | (4,394 | ) | (2,195 | ) | 6,589 | - | ||||||||||||||||||||
Interest income | (88 | ) | (14 | ) | - | (102 | ) | |||||||||||||||||||
Litigation settlement | 6,000 | - | - | 6,000 | ||||||||||||||||||||||
Non cash ASC 842 expenses/(benefit) | 656 | 55 | (163 | ) | 548 | |||||||||||||||||||||
Medicare cap sequestration adjustment | 515 | - | - | 515 | ||||||||||||||||||||||
Acquisition expenses | - | - | 120 | 120 | ||||||||||||||||||||||
Stock option expense | - | - | 4,089 | 4,089 | ||||||||||||||||||||||
Long-term incentive compensation | - | - | 1,488 | 1,488 | ||||||||||||||||||||||
Adjusted EBITDA | $ | 46,319 | $ | 33,500 | $ | (5,021 | ) | $ | 74,798 | |||||||||||||||||
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 |
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, |
||||||||||||||||
2019 | 2018 | |||||||||||||||
Net income as reported | $ | 44,667 | $ | 44,996 | ||||||||||||
Add/(deduct) pre-tax cost of: | ||||||||||||||||
Litigation settlement | 6,000 | - | ||||||||||||||
Stock option expense | 4,089 | 3,653 | ||||||||||||||
Long-term incentive compensation | 1,488 | 1,920 | ||||||||||||||
Non cash ASC 842 expenses | 548 | - | ||||||||||||||
Medicare cap sequestration adjustment | 515 | 352 | ||||||||||||||
Amortization of acquired and cancelled franchise agreements | 441 | - | ||||||||||||||
Acquisition expenses | 120 | - | ||||||||||||||
Add/(deduct) tax impacts: | ||||||||||||||||
Tax impact of the above pre-tax adjustments (1) | (2,961 | ) | (1,272 | ) | ||||||||||||
Excess tax benefits on stock compensation | (6,732 | ) | (3,798 | ) | ||||||||||||
Adjusted net income | $ | 48,175 | $ | 45,851 | ||||||||||||
Diluted Earnings Per Share As Reported | ||||||||||||||||
Net income | $ | 2.70 | $ | 2.66 | ||||||||||||
Average number of shares outstanding | 16,525 | 16,887 | ||||||||||||||
Adjusted Diluted Earnings Per Share | ||||||||||||||||
Adjusted net income | $ | 2.92 | $ | 2.72 | ||||||||||||
Average number of shares outstanding | 16,525 | 16,887 |
(1) |
The tax impact of pre-tax adjustments was calculated using the effective tax rate of the operating unit for which each adjustment is associated. |
|
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 | 2019 | 2018 | ||||||||||||||||||||
Net revenue ($000) (c) | ||||||||||||||||||||||
Homecare | $ | 258,847 | $ | 241,031 | ||||||||||||||||||
Inpatient | 22,570 | 22,108 | ||||||||||||||||||||
Continuous care | 32,244 | 30,766 | ||||||||||||||||||||
Other | 2,010 | 1,741 | ||||||||||||||||||||
Subtotal | $ | 315,671 | $ | 295,646 | ||||||||||||||||||
Room and board, net | (2,542 | ) | (2,618 | ) | ||||||||||||||||||
Contractual allowances | (2,948 | ) | (2,833 | ) | ||||||||||||||||||
Medicare cap allowance | (3,400 | ) | 1,818 | |||||||||||||||||||
Net Revenue | $ | 306,781 | $ | 292,013 | ||||||||||||||||||
Net revenue as a percent of total before Medicare cap allowance |
||||||||||||||||||||||
Homecare | 82.0 | % | 81.5 | |||||||||||||||||||
Inpatient | 7.1 | 7.5 | ||||||||||||||||||||
Continuous care | 10.2 | 10.4 | ||||||||||||||||||||
Other | 0.7 | 0.6 | ||||||||||||||||||||
Subtotal | 100.0 | 100.0 | ||||||||||||||||||||
Room and board, net | (0.9 | ) | (0.9 | ) | ||||||||||||||||||
Contractual allowances | (1.0 | ) | (0.9 | ) | ||||||||||||||||||
Medicare cap allowance | (0.9 | ) | 0.6 | |||||||||||||||||||
Net Revenue | 97.2 | % | 98.8 | |||||||||||||||||||
Average daily census ("ADC") (days) | ||||||||||||||||||||||
Homecare | 14,243 | 13,162 | ||||||||||||||||||||
Nursing home | 3,254 | 3,215 | ||||||||||||||||||||
Routine homecare | 17,497 | 16,377 | ||||||||||||||||||||
Inpatient | 360 | 352 | ||||||||||||||||||||
Continuous care | 488 | 480 | ||||||||||||||||||||
Total | 18,345 | 17,209 | ||||||||||||||||||||
Total Admissions | 17,758 | 18,279 | ||||||||||||||||||||
Total Discharges | 17,339 | 17,558 | ||||||||||||||||||||
Average length of stay (days) | 91.3 | 87.9 | ||||||||||||||||||||
Median length of stay (days) | 15.0 | 15.0 | ||||||||||||||||||||
ADC by major diagnosis | ||||||||||||||||||||||
Neurological | 19.9 | % | 18.5 | |||||||||||||||||||
Cerebro | 35.6 | 36.2 | ||||||||||||||||||||
Cancer | 13.1 | 13.9 | ||||||||||||||||||||
Cardio | 16.9 | 16.4 | ||||||||||||||||||||
Respiratory | 8.2 | 8.2 | ||||||||||||||||||||
Other | 6.3 | 6.8 | ||||||||||||||||||||
Total | 100.0 | % | 100.0 | |||||||||||||||||||
Admissions by major diagnosis | ||||||||||||||||||||||
Neurological | 12.8 | % | 11.4 | |||||||||||||||||||
Cerebro | 20.7 | 22.6 | ||||||||||||||||||||
Cancer | 28.0 | 28.0 | ||||||||||||||||||||
Cardio | 16.3 | 15.5 | ||||||||||||||||||||
Respiratory | 12.0 | 11.7 | ||||||||||||||||||||
Other | 10.2 | 10.8 | ||||||||||||||||||||
Total | 100.0 | % | 100.0 | |||||||||||||||||||
Direct patient care margins (d) | ||||||||||||||||||||||
Routine homecare | 52.7 | % | 52.1 | |||||||||||||||||||
Inpatient | 6.5 | 7.5 | ||||||||||||||||||||
Continuous care | 18.2 | 17.7 | ||||||||||||||||||||
Homecare margin drivers (dollars per patient day) | ||||||||||||||||||||||
Labor costs | $ | 59.42 | $ | 58.63 | ||||||||||||||||||
Combined drug, home medical equipment and medical supplies cost |
13.08 | 14.47 | ||||||||||||||||||||
Inpatient margin drivers (dollars per patient day) | ||||||||||||||||||||||
Labor costs | $ | 364.62 | $ | 362.75 | ||||||||||||||||||
Continuous care margin drivers (dollars per patient day) | ||||||||||||||||||||||
Labor costs | $ | 582.54 | $ | 567.51 | ||||||||||||||||||
Estimated uncollectible accounts as a percent of revenues |
1.0 | % | 1.0 | |||||||||||||||||||
Accounts receivable -- | ||||||||||||||||||||||
Days of revenue outstanding- excluding unapplied Medicare payments | 34.9 | 32.6 | ||||||||||||||||||||
Days of revenue outstanding- including unapplied Medicare payments | 23.3 | 22.6 |
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, 2019 AND 2018 | ||||||||||||||||||||||||||
(unaudited) |
||||||||||||||||||||||||||
(a) |
Included in the results of operations for the three months ended March 31, 2019, are the following significant credits/(charges) which may not be indicative of ongoing operations (in thousands): |
|||||||||||||||||||||||||
VITAS | Roto-Rooter | Corporate | Total | |||||||||||||||||||||||
Service revenues and sales: | ||||||||||||||||||||||||||
Medicare cap sequestration adjustment | $ | (515 | ) | $ | - | $ | - | $ | (515 | ) | ||||||||||||||||
Selling, general and administrative expenses: | ||||||||||||||||||||||||||
Non cash ASC 842 (expenses)/benefit | (656 | ) | (55 | ) | 163 | (548 | ) | |||||||||||||||||||
Amortization of acquired and cancelled franchise agreements | - | (441 | ) | - | (441 | ) | ||||||||||||||||||||
Acquisition expense | - | - | (120 | ) | (120 | ) | ||||||||||||||||||||
Stock option expense | - | - | (4,089 | ) | (4,089 | ) | ||||||||||||||||||||
Long term incentive compensation | - | - | (1,488 | ) | (1,488 | ) | ||||||||||||||||||||
Other operating expenses: | ||||||||||||||||||||||||||
Litigation settlement | (6,000 | ) | - | - | (6,000 | ) | ||||||||||||||||||||
Pretax impact on earnings | (7,171 | ) | (496 | ) | (5,534 | ) | (13,201 | ) | ||||||||||||||||||
Excess tax benefits on stock compensation | - | - | 6,732 | 6,732 | ||||||||||||||||||||||
Income tax benefit on the above | 1,819 | 132 | 1,010 | 2,961 | ||||||||||||||||||||||
After-tax impact on earnings | $ | (5,352 | ) | $ | (364 | ) | $ | 2,208 | $ | (3,508 | ) | |||||||||||||||
(b) |
Included in the results of operations for the three months ended March 31, 2018, are the following significant credits/(charges) which may not be indicative of ongoing operations (in thousands): |
|||||||||||||||||||||||||
VITAS | Corporate | Total | ||||||||||||||||||||||||
Service revenues and sales: | ||||||||||||||||||||||||||
Medicare cap sequestration adjustment | $ | (352 | ) | $ | - | $ | (352 | ) | ||||||||||||||||||
Selling, general and administrative expenses: | ||||||||||||||||||||||||||
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 | ) | |||||||||||||||||
(c) |
VITAS has 12 large (greater than 450 ADC), 18 medium (greater than 200 but less than 450 ADC) and 17 small (less than 200 ADC) hospice programs. Of VITAS' 30 unique Medicare provider numbers, 25 provider numbers have a Medicare cap cushion of 5% or greater, two provider number has a cap cushion between 0% and 5% and three provider numbers have a Medicare cap billing limitation for the 2019 Medicare cap period. |
|||||||||||||||||||||||||
|
||||||||||||||||||||||||||
(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/20190429005574/en/
Source:
David P. Williams
(513) 762-6901