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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported):

July 27, 2022

CHEMED CORPORATION

(Exact name of registrant as specified in its charter)


Delaware	1-8351	31-0791746
(State or other ‎jurisdiction of ‎incorporation)	(Commission File Number)	(I.R.S. Employer ‎Identification ‎Number)

2600 First Financial Center, 255 East 5th Street, Cincinnati, OH 45202

(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code:

(513) 762-6690

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

[_] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240-14a-12)

[_] Pre-commencement communications pursuant to Rule 14d-2(b) under Exchange Act (17 CFR 240-14d-2(b))

[_] Pre-commencement communications pursuant to Rule 13e-4 (c) under Exchange Act (17 CFR 240-13e-4(c))

Securities registered pursuant to 12(b) of the Act:

Title of each class

Trading symbol

Name of each exchange on which

registered

Capital stock $1 par value

CHE

NYSE

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934. [_]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [_]

Page 1 of 3

Item 2.02 Results of Operations and Financial Condition

On July 27, 2022 Chemed Corporation issued a press release announcing its financial results for the quarter ended June 30, 2022. A copy of the release is furnished herewith as Exhibit 99.

Item 9.01 Financial Statements and Exhibits


d)	Exhibit

	(99) Registrant’s press release dated July 27, 2022
	104 The cover page from this Current Report on Form 8-K formatted in Inline XBRL

Page 2 of 3

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	CHEMED CORPORATION

Dated: July 27, 2022	By:	/s/ Michael D. Witzeman
		Michael D. Witzeman
		Vice President and Controller

Page 3 of 3

Exhibit 99

CONTACT: David P. Williams

(513) 762-6901

Chemed Reports Second-Quarter 2022 Results

CINCINNATI, July 27, 2022—Chemed Corporation (Chemed) (NYSE: CHE), which operates VITAS Healthcare Corporation (VITAS), one of the nation’s largest providers of end-of-life care, and Roto-Rooter, the nation’s largest commercial and residential plumbing and drain cleaning services provider, reported financial results for its second quarter ended June 30, 2022, versus the comparable prior-year period, as follows:

Consolidated operating results:

Revenue declined 0.2% to $531 million

GAAP Diluted Earnings-per-Share (EPS) of $4.40, an increase of 25.4%

Adjusted Diluted EPS of $4.84, an increase of 5.2%

VITAS segment operating results:

Net Patient Revenue of $298 million, a decline of 4.5%

Average Daily Census (ADC) of 17,315, a decline of 3.8%

Admissions of 14,735, a decline of 12.5%

Net Income, excluding certain discrete items, of $35.3 million, a decline of 10.4%

Adjusted EBITDA, excluding Medicare Cap, of $50.0 million, a decline of 8.8%

Adjusted EBITDA margin, excluding Medicare Cap, of 16.7%, a decrease of 78-basis points

Roto-Rooter segment operating results:

Revenue of $233 million, an increase of 6.0%

Net Income, excluding certain discrete items, of $48.8 million, an increase of 8.8%

Adjusted EBITDA of $69.0 million, an increase of 7.4%

Adjusted EBITDA margin of 29.6%, an increase of 39-basis points

VITAS

VITAS net revenue was $298 million in the second quarter of 2022, which is a decline of 4.5%, when compared to the prior-year period. This revenue decline is comprised primarily of a 3.8% decline in days-of-care partially offset by a geographically weighted average Medicare reimbursement rate increase of approximately 0.8%. Acuity mix shift had a net impact of reducing

revenue approximately $5.2 million, or 1.6%, in the quarter when compared to the prior-year revenue and level-of-care mix. The combination of Medicare Cap and other contra revenue changes reduced the revenue decline by approximately 10-basis points.

In the second quarter of 2022, VITAS accrued $2.0 million in Medicare Cap billing limitations. This is equal to the Medicare Cap billing limitation in the second quarter of 2021.

Of VITAS’ 30 Medicare provider numbers, 27 provider numbers have a Medicare Cap cushion of 10% or greater, one provider number has a cushion between 5% and 10%, and two provider numbers have an estimated fiscal 2022 Medicare Cap billing limitation liability.

Average revenue per patient per day in the second quarter of 2022 was $193.57 which, including acuity mix shift, is 84-basis points below the prior-year period. Reimbursement for routine home care and high acuity care averaged $170.29 and $1,004.55, respectively. During the quarter, high acuity days-of-care were 2.8% of total days of care, 40-basis points less than the prior-year quarter.

The second quarter 2022 gross margin, excluding Medicare Cap and increased costs directly related to operating during the pandemic, was 24.1%. This is a 61-basis point margin decline when compared to the second quarter of 2021.

Selling, general and administrative expense was $23.1 million in the second quarter of 2022 and compares to $22.6 million incurred in the prior-year quarter. Adjusted EBITDA, excluding Medicare Cap, totaled $50.0 million in the quarter, a decrease of 8.8%. Adjusted EBITDA margin in the quarter, excluding Medicare Cap, was 16.7%, which is 78-basis points below the prior-year period.

Roto-Rooter

Roto-Rooter generated quarterly revenue of $233 million in the second quarter of 2022, an increase of $13.2 million, or 6.0%, when compared to the prior-year quarter.

Roto-Rooter branch commercial revenue in the quarter totaled $54.8 million, an increase of $3.8 million, or 7.5%, over the prior year. This aggregate commercial revenue growth consisted of drain cleaning revenue increasing 8.4%, plumbing increasing 10.4%, water restoration increasing 4.1%, and excavation increasing 4.2%.

Roto-Rooter branch residential revenue in the quarter totaled $159 million, an increase of $7.6 million, or 5.0%, over the prior-year period. This aggregate residential revenue growth consisted of drain cleaning remaining essentially equal to the prior year quarter, plumbing expanding 9.3%, excavation declining 0.1%, and water restoration increasing 14.0%.

Roto-Rooter’s gross margin in the quarter was 53.2%, a 6-basis point decline when compared to the second quarter of 2021. Adjusted EBITDA in the second quarter of 2022 totaled $69.0 million, an increase of 7.4%. The Adjusted EBITDA margin in the quarter was 29.6%, which is a 39-basis point improvement when compared to the prior year.

Chemed Consolidated

As of June 30, 2022, Chemed had total cash and cash equivalents of $9.6 million and $117 million of current and long-term debt.

In June 2022, Chemed entered into a five-year $550 million Amended and Restated Credit Agreement (Credit Agreement). This Credit Agreement consists of a $100 million amortizable term loan and a $450 million revolving credit facility. The interest rate on this Credit Agreement has a floating rate that is currently SOFR plus 100-basis points. On June 30, 2022, the Company had approximately $387 million of undrawn borrowing capacity under this credit agreement.

During the quarter, the Company repurchased 100,000 shares of Chemed stock for $49.9 million which equates to a cost per share of $498.61. As of June 30, 2022, there was approximately $125 million of remaining share repurchase authorization under this plan.

Chemed restarted its share repurchase program in 2007. Since that time, Chemed has repurchased approximately 15.9 million shares, aggregating approximately $2.0 billion at an average share cost of $128.76. Including dividends over this period, Chemed has returned approximately $2.3 billion to shareholders.

Guidance for 2022

Historically, Chemed earnings guidance has been developed using previous periods’ key operating metrics which are then modeled and projected out for future periods. Critical within these projections is the understanding of traditional patterned correlations among key operating metrics. This modeling exercise also takes into consideration anticipated industry and macro-economic issues outside of management’s control but are somewhat predictable in terms of timing and impact on our business segments’ operating results.

The COVID-19 pandemic, uncertainty regarding forward looking inflation, and a potential economic recession, has made accurate modeling and providing meaningful earnings guidance exceptionally challenging. Since the start of the pandemic, Chemed has been able to successfully navigate within this rapidly changing environment and produce operating results that we believe provide us with the ability to issue earnings guidance for the remainder of the 2022 calendar year. However, this guidance should be taken with the recognition the above macro issues could materially impact the company’s ability to achieve this guidance.

Based upon the above discussion, VITAS 2022 revenue, prior to Medicare Cap, is estimated to decline 4.5% to 5.0% when compared to 2021. A portion of the estimated revenue reduction, approximately $15 million, is the result of the phase out of sequestration relief over the first half of 2022 compared to a full year of sequestration relief in 2021. ADC is estimated to decline 3.5%. Full year adjusted EBITDA margin, prior to Medicare Cap, is estimated to be 17.0% to 17.2%. We are currently estimating $10 million for Medicare Cap billing limitations in calendar year 2022.

Roto-Rooter is forecasted to achieve full-year 2022 revenue growth of 5.5% to 5.7%. Roto-Rooter’s adjusted EBITDA margin for 2022 is expected to be 29.2% to 29.5%.

Based upon the above, full-year 2022 earnings per diluted share, excluding non-cash expense for stock options, tax benefits from stock option exercises, costs related to litigation and other discrete items, is estimated to be in the range of $19.30 to $19.50. This compares to our previous 2022 adjusted earnings per share guidance of $19.10 to $19.50. Current 2022 guidance assumes an effective corporate tax rate on adjusted earnings of 25.1% and a diluted share count of 15.12 million shares. Chemed’s 2021 reported adjusted earnings per diluted share was $19.33.

Conference Call

Chemed will host a conference call and webcast at 10 a.m., ET, on Thursday, July 28, 2022, to discuss the company's quarterly results and to provide an update on its business. Participants may access a live webcast of the conference call through the investor relations section of Chemed’s website, Investor Relations Home | Chemed Corporation or the hosting website https://edge.media-server.com/mmc/p/z8752xj3.

Participants may also register via teleconference at:

https://register.vevent.com/register/BIb15c9a69666f4f3f8c4010ce89314068. Once registration is completed, participants will be provided with a dial-in number containing a personalized conference code to access the call. All participants are instructed to dial-in 15 minutes prior to the start time.

A taped replay of the conference call will be available beginning approximately two hours after the call's conclusion. You may access the replay via webcast through the investors relations section of Chemed’s website.

Chemed Corporation operates in the healthcare field through its VITAS Healthcare Corporation subsidiary. VITAS provides daily hospice services to approximately 17,300 patients with severe, life-limiting illnesses. This type of care is focused on making the terminally ill patient's final days as comfortable and pain-free as possible.

Chemed operates in the residential and commercial plumbing and drain cleaning industry under the brand name Roto-Rooter. Roto-Rooter provides plumbing, drain cleaning, and water cleanup services through company-owned branches, independent contractors and franchisees in the United States and Canada. Roto-Rooter also has licensed master franchisees in the republics of Indonesia and Singapore, and the Philippines.

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, Chemed provides EBITDA, Adjusted EBITDA and Adjusted Diluted EPS measures to help investors and others evaluate the Company’s operating results, compare its operating performance with that of similar companies that have different capital structures and evaluate its ability to meet its future debt service, capital expenditures and working capital requirements. Chemed’s management similarly uses EBITDA, Adjusted EBITDA and Adjusted Diluted EPS to assist it in evaluating the performance of the Company across fiscal periods and in assessing how its performance compares to its peer companies. These measures also help Chemed’s management to estimate the resources required to meet Chemed’s future financial obligations and expenditures. Chemed’s EBITDA, Adjusted EBITDA and Adjusted Diluted EPS should not be considered in isolation or as a substitute for comparable measures calculated and presented in accordance with GAAP. We calculated Adjusted EBITDA Margin by dividing Adjusted EBITDA by service revenue and sales. A reconciliation of Chemed’s net income to its EBITDA, Adjusted EBITDA and Adjusted Diluted EPS is presented in the tables following the text of this press release.

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. Chemed does not undertake and specifically disclaims any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These statements are based on current expectations and assumptions and involve various risks and uncertainties, which could cause Chemed's actual results to differ from those expressed in such forward-looking statements.

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 Medicare and Medicaid programs; difficulties predicting patient length of stay and estimating potential Medicare reimbursement obligations; challenges inherent in Chemed's growth strategy; the current shortage of qualified nurses, other healthcare professionals and licensed plumbing and drain cleaning technicians; Chemed’s dependence on patient referral sources; and other factors detailed under the caption "Description of Business by Segment" or "Risk Factors" in Chemed’s most recent report on form 10-Q or 10-K and its other filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on such forward-looking statements and there are no assurances that the matters contained in such statements will be achieved.


CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)(unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Service revenues and sales	$	531,288	$	532,256		1,061,837	$	1,059,616
Cost of services provided and goods sold		336,821		350,493		673,373		690,966
Selling, general and administrative expenses (aa)		87,853		93,838		177,807		185,437
Depreciation		12,714		13,612		24,852		25,327
Amortization		2,520		2,510		5,038		5,020
Other operating (income)/expense		(558)		104		(545)		726
Total costs and expenses		439,350		460,557		880,525		907,476
Income from operations		91,938		71,699		181,312		152,140
Interest expense		(902)		(379)		(1,712)		(760)
Other (expense)/income--net (bb)		(4,930)		3,785		(8,792)		7,387
Income before income taxes		86,106		75,105		170,808		158,767
Income taxes		(19,650)		(18,583)		(40,183)		(36,845)
Net income	$	66,456	$	56,522	$	130,625	$	121,922
Earnings Per Share
Net income	$	4.45	$	3.57	$	8.73	$	7.66
Average number of shares outstanding		14,932		15,829		14,959		15,919
Diluted Earnings Per Share
Net income	$	4.40	$	3.51	$	8.62	$	7.52
Average number of shares outstanding		15,111		16,101		15,152		16,205

(aa) Selling, general and administrative ("SG&A") expenses comprise (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
SG&A expenses before long-term incentive compensation
and the impact of market value adjustments related to
deferred compensation plans	$	91,422	$	88,510	$	184,000	$	175,178
Market value adjustments related to deferred
compensation trusts		(5,086)		3,655		(9,020)		6,693
Long-term incentive compensation		1,517		1,673		2,827		3,566
Total SG&A expenses	$	87,853	$	93,838	$	177,807	$	185,437

(bb) Other (expense)/income--net comprises (in thousands):
	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Market value adjustments related to deferred
compensation trusts	$	(5,086)	$	3,655	$	(9,020)	$	6,693
Interest income		154		138		226		230
Other		2		(8)		2		464
Total other (expense)/income--net	$	(4,930)	$	3,785	$	(8,792)	$	7,387


CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)(unaudited)

	June 30,
	2022		2021
Assets
Current assets
Cash and cash equivalents	$	9,640	$	92,120
Accounts receivable less allowances		136,555		123,329
Inventories		10,696		7,411
Prepaid income taxes		17,256		23,386
Prepaid expenses		28,999		22,840
Total current assets		203,146		269,086
Investments of deferred compensation plans held in trust		96,061		98,256
Properties and equipment, at cost less accumulated depreciation		192,005		192,653
Lease right of use asset		128,290		123,207
Identifiable intangible assets less accumulated amortization		103,837		113,137
Goodwill		579,653		578,650
Other assets		9,972		8,807
Total Assets	$	1,312,964	$	1,383,796
Liabilities
Current liabilities
Accounts payable	$	73,975	$	55,975
Current portion of long-term debt		5,000		-
Income taxes		-		5
Accrued insurance		54,828		51,963
Accrued compensation		68,290		83,608
Accrued legal		808		1,391
Short-term lease liability		39,062		36,440
Other current liabilities		43,105		38,020
Total current liabilities		285,068		267,402
Deferred income taxes		21,054		21,713
Long-term debt		111,800		-
Deferred compensation liabilities		95,624		97,374
Long-term lease liability		103,389		99,093
Other liabilities		11,069		27,440
Total Liabilities		628,004		513,022
Stockholders' Equity
Capital stock		36,651		36,385
Paid-in capital		1,089,129		999,697
Retained earnings		2,090,214		1,834,835
Treasury stock, at cost		(2,533,306)		(2,002,326)
Deferred compensation payable in Company stock		2,272		2,183
Total Stockholders' Equity		684,960		870,774
Total Liabilities and Stockholders' Equity	$	1,312,964	$	1,383,796


CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)(unaudited)

	For the Six Months Ended June 30,
	2022		2021
Cash Flows from Operating Activities
Net income	$	130,625	$	121,922
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization		29,890		30,347
Stock option expense		14,667		12,345
(Benefit)/provision for deferred income taxes		(2,129)		1,051
Noncash long-term incentive compensation		2,497		3,402
Noncash directors' compensation		1,170		1,173
Amortization of debt issuance costs		153		153
Provision for bad debts		-		40
Payments on previously accrued litigation settlements		-		(9,440)
Changes in operating assets and liabilities, excluding
amounts acquired in business combinations:
Decrease in accounts receivable		887		4,722
Increase in inventories		(587)		(316)
Decrease in prepaid expenses		3,689		3,337
Decrease in accounts payable and
other current liabilities		(24,001)		(10,815)
Change in current income taxes		27		(26,242)
Net change in lease assets and liabilities		705		(436)
Decrease/(increase) in other assets		2,071		(10,088)
(Decrease)/increase in other liabilities		(1,491)		10,088
Other (uses)/sources		(503)		796
Net cash provided by operating activities		157,670		132,039
Cash Flows from Investing Activities
Capital expenditures		(25,610)		(33,604)
Proceeds from sale of fixed assets		1,757		522
Business combinations, net of cash acquired		(1,650)		-
Other uses		(132)		(220)
Net cash used by investing activities		(25,635)		(33,302)
Cash Flows from Financing Activities
Payments on revolving line of credit		(263,300)		-
Proceeds from revolving line of credit		95,100		-
Proceeds from other long-term debt		100,000		-
Purchases of treasury stock		(77,214)		(166,649)
Proceeds from exercise of stock options		12,869		16,186
Capital stock surrendered to pay taxes on stock-based compensation		(12,115)		(8,598)
Dividends paid		(10,722)		(10,864)
Change in cash overdrafts payable		1,716		-
Debt issuance costs		(1,510)		-
Other (uses)/sources		(114)		633
Net cash used by financing activities		(155,290)		(169,292)
Decrease in Cash and Cash Equivalents		(23,255)		(70,555)
Cash and cash equivalents at beginning of year		32,895		162,675
Cash and cash equivalents at end of year	$	9,640	$	92,120


CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED JUNE 30, 2022 AND 2021
(in thousands)(unaudited)
							Chemed
	VITAS		Roto-Rooter		Corporate		Consolidated
2022 (a)
Service revenues and sales	$	297,781	$	233,507	$	-	$	531,288
Cost of services provided and goods sold		227,533		109,288		-		336,821
Selling, general and administrative expenses		23,148		54,982		9,723		87,853
Depreciation		6,062		6,634		18		12,714
Amortization		26		2,494		-		2,520
Other operating (income)/expense		(807)		249		-		(558)
Total costs and expenses		255,962		173,647		9,741		439,350
Income/(loss) from operations		41,819		59,860		(9,741)		91,938
Interest expense		(44)		(115)		(743)		(902)
Intercompany interest income/(expense)		4,683		2,205		(6,888)		-
Other income/(expense)—net		119		37		(5,086)		(4,930)
Income/(loss) before income taxes		46,577		61,987		(22,458)		86,106
Income taxes		(11,365)		(14,915)		6,630		(19,650)
Net income/(loss)	$	35,212	$	47,072	$	(15,828)	$	66,456

2021 (b)
Service revenues and sales	$	311,935	$	220,321	$	-	$	532,256
Cost of services provided and goods sold		247,519		102,974		-		350,493
Selling, general and administrative expenses		22,631		53,556		17,651		93,838
Depreciation		7,125		6,468		19		13,612
Amortization		18		2,492		-		2,510
Other operating expense		87		17		-		104
Total costs and expenses		277,380		165,507		17,670		460,557
Income/(loss) from operations		34,555		54,814		(17,670)		71,699
Interest expense		(43)		(89)		(247)		(379)
Intercompany interest income/(expense)		4,486		1,649		(6,135)		-
Other income—net		99		32		3,654		3,785
Income/(loss) before income taxes		39,097		56,406		(20,398)		75,105
Income taxes		(9,385)		(13,633)		4,435		(18,583)
Net income/(loss)	$	29,712	$	42,773	$	(15,963)	$	56,522


The "Footnotes to Financial Statements" are integral parts of this financial information.


CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENTS OF INCOME
FOR THE SIX MONTHS ENDED JUNE 30, 2022 AND 2021
(in thousands)(unaudited)

							Chemed
	VITAS		Roto-Rooter		Corporate		Consolidated
2022 (a)
Service revenues and sales	$	596,970	$	464,867	$	-	$	1,061,837
Cost of services provided and goods sold		454,773		218,600		-		673,373
Selling, general and administrative expenses		45,600		111,937		20,270		177,807
Depreciation		11,613		13,203		36		24,852
Amortization		49		4,989		-		5,038
Other operating (income)/expense		(955)		410		-		(545)
Total costs and expenses		511,080		349,139		20,306		880,525
Income/(loss) from operations		85,890		115,728		(20,306)		181,312
Interest expense		(96)		(229)		(1,387)		(1,712)
Intercompany interest income/(expense)		9,339		4,381		(13,720)		-
Other income/(expense)—net		156		72		(9,020)		(8,792)
Income/(loss) before income taxes		95,289		119,952		(44,433)		170,808
Income taxes		(23,595)		(28,943)		12,355		(40,183)
Net income/(loss)	$	71,694	$	91,009	$	(32,078)	$	130,625

2021 (b)
Service revenues and sales	$	627,723	$	431,893	$	-	$	1,059,616
Cost of services provided and goods sold		486,186		204,780		-		690,966
Selling, general and administrative expenses		44,721		106,878		33,838		185,437
Depreciation		12,462		12,821		44		25,327
Amortization		36		4,984		-		5,020
Other operating expense		590		136		-		726
Total costs and expenses		543,995		329,599		33,882		907,476
Income/(loss) from operations		83,728		102,294		(33,882)		152,140
Interest expense		(85)		(179)		(496)		(760)
Intercompany interest income/(expense)		9,011		3,269		(12,280)		-
Other income—net		632		63		6,692		7,387
Income/(loss) before income taxes		93,286		105,447		(39,966)		158,767
Income taxes		(22,805)		(25,497)		11,457		(36,845)
Net income/(loss)	$	70,481	$	79,950	$	(28,509)	$	121,922


The "Footnotes to Financial Statements" are integral parts of this financial information.


CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING SUMMARIES OF EBITDA
FOR THE THREE MONTHS ENDED JUNE 30, 2022 AND 2021
(in thousands)(unaudited)
							Chemed
	VITAS		Roto-Rooter		Corporate		Consolidated
2022
Net income/(loss)	$	35,212	$	47,072	$	(15,828)	$	66,456
Add/(deduct):
Interest expense		44		115		743		902
Income taxes		11,365		14,915		(6,630)		19,650
Depreciation		6,062		6,634		18		12,714
Amortization		26		2,494		-		2,520
EBITDA		52,709		71,230		(21,697)		102,242
Add/(deduct):
Intercompany interest expense/(income)		(4,683)		(2,205)		6,888		-
Interest income		(118)		(37)		1		(154)
Stock option expense		-		-		7,216		7,216
Long-term incentive compensation		-		-		1,517		1,517
Medicare cap sequestration adjustment		138		-		-		138
Direct costs related to COVID-19		(80)		-		-		(80)
Other		-		28		-		28
Adjusted EBITDA	$	47,966	$	69,016	$	(6,075)	$	110,907

2021
Net income/(loss)	$	29,712	$	42,773	$	(15,963)	$	56,522
Add/(deduct):
Interest expense		43		89		247		379
Income taxes		9,385		13,633		(4,435)		18,583
Depreciation		7,125		6,468		19		13,612
Amortization		18		2,492		-		2,510
EBITDA		46,283		65,455		(20,132)		91,606
Add/(deduct):
Intercompany interest expense/(income)		(4,486)		(1,649)		6,135		-
Interest income		(106)		(32)		-		(138)
Direct costs related to COVID-19		11,084		582		-		11,666
Stock option expense		-		-		6,239		6,239
Long-term incentive compensation		-		-		1,673		1,673
Litigation settlements		-		(98)		-		(98)
Adjusted EBITDA	$	52,775	$	64,258	$	(6,085)	$	110,948

The "Footnotes to Financial Statements" are integral parts of this financial information.


CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING SUMMARIES OF EBITDA
FOR THE SIX MONTHS ENDED JUNE 30, 2022 AND 2021
(in thousands)(unaudited)
							Chemed
	VITAS		Roto-Rooter		Corporate		Consolidated
2022
Net income/(loss)	$	71,694	$	91,009	$	(32,078)	$	130,625
Add/(deduct):
Interest expense		96		229		1,387		1,712
Income taxes		23,595		28,943		(12,355)		40,183
Depreciation		11,613		13,203		36		24,852
Amortization		49		4,989		-		5,038
EBITDA		107,047		138,373		(43,010)		202,410
Add/(deduct):
Intercompany interest expense/(income)		(9,339)		(4,381)		13,720		-
Interest income		(155)		(71)		-		(226)
Stock option expense		-		-		14,667		14,667
Long-term incentive compensation		-		-		2,827		2,827
Direct costs related to COVID-19		310		960		-		1,270
Medicare cap sequestration adjustment		138		-		-		138
Other		-		28		-		28
Adjusted EBITDA	$	98,001	$	134,909	$	(11,796)	$	221,114
2021
Net income/(loss)	$	70,481	$	79,950	$	(28,509)	$	121,922
Add/(deduct):
Interest expense		85		179		496		760
Income taxes		22,805		25,497		(11,457)		36,845
Depreciation		12,462		12,821		44		25,327
Amortization		36		4,984		-		5,020
EBITDA		105,869		123,431		(39,426)		189,874
Add/(deduct):
Intercompany interest expense/(income)		(9,011)		(3,269)		12,280		-
Interest income		(167)		(63)		-		(230)
Direct costs related to COVID-19		12,836		1,136		38		14,010
Stock option expense		-		-		12,345		12,345
Long-term incentive compensation		-		-		3,566		3,566
Litigation settlements		-		(98)		-		(98)
Adjusted EBITDA	$	109,527	$	121,137	$	(11,197)	$	219,467

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 June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Net income as reported	$	66,456	$	56,522	$	130,625	$	121,922
Add/(deduct) pre-tax cost of:
Stock option expense		7,216		6,239		14,667		12,345
Amortization of reacquired franchise agreements		2,352		2,352		4,704		4,704
Long-term incentive compensation		1,517		1,673		2,827		3,566
Direct costs related to COVID-19		(80)		11,666		1,270		14,010
Medicare cap sequestration adjustment		138		-		138		-
Other		28		-		28		-
Facility relocation expenses		-		1,855		-		1,855
Litigation settlements		-		(98)		-		(98)
Add/(deduct) tax impacts:
Tax impact of the above pre-tax adjustments (1)		(2,038)		(5,241)		(4,449)		(7,728)
Excess tax benefits on stock compensation		(2,499)		(868)		(3,940)		(4,106)
Adjusted net income	$	73,090	$	74,100	$	145,870	$	146,470

Diluted Earnings Per Share As Reported
Net income	$	4.40	$	3.51	$	8.62	$	7.52
Average number of shares outstanding		15,111		16,101		15,152		16,205

Adjusted Diluted Earnings Per Share
Adjusted net income	$	4.84	$	4.60	$	9.63	$	9.04
Average number of shares outstanding		15,111		16,101		15,152		16,205

(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 June 30,						Six Months Ended June 30,
OPERATING STATISTICS	2022			2021			2022			2021
Net revenue ($000) (c)
Homecare	$	257,631		$	264,926		$	515,267		$	528,680
Inpatient		24,619			27,371			51,189			56,527
Continuous care		19,538			24,282			39,116			51,631
Other		3,213			3,078			6,220			6,016
Subtotal	$	305,001		$	319,657		$	611,792		$	642,854
Room and board, net		(2,166)			(2,657)			(4,283)			(5,322)
Contractual allowances		(3,054)			(3,065)			(6,039)			(6,309)
Medicare cap allowance		(2,000)			(2,000)			(4,500)			(3,500)
Net Revenue	$	297,781		$	311,935		$	596,970		$	627,723
Net revenue as a percent of total before Medicare cap allowance
Homecare		84.5	%		82.9	%		84.2	%		82.2	%
Inpatient		8.1			8.6			8.4			8.8
Continuous care		6.4			7.6			6.4			8.0
Other		1.0			0.9			1.0			1.0
Subtotal		100.0			100.0			100.0			100.0
Room and board, net		(0.7)			(0.8)			(0.7)			(0.8)
Contractual allowances		(1.0)			(1.0)			(1.0)			(1.0)
Medicare cap allowance		(0.7)			(0.6)			(0.7)			(0.6)
Net Revenue		97.6	%		97.6	%		97.6	%		97.6	%
Days of care
Homecare		1,266,604			1,335,482			2,525,276			2,665,374
Nursing home		259,046			244,423			507,514			477,206
Respite		6,095			5,338			11,463			10,178
Subtotal routine homecare and respite		1,531,745			1,585,243			3,044,253			3,152,758
Inpatient		23,155			26,493			47,742			54,167
Continuous care		20,802			25,786			41,884			55,086
Total		1,575,702			1,637,522			3,133,879			3,262,011

Number of days in relevant time period		91			91			181			181
Average daily census ("ADC") (days)
Homecare		13,918			14,676			13,952			14,726
Nursing home		2,847			2,686			2,804			2,636
Respite		67			59			63			57
Subtotal routine homecare and respite		16,832			17,421			16,819			17,419
Inpatient		254			291			264			299
Continuous care		229			283			231			304
Total		17,315			17,995			17,314			18,022
Total Admissions		14,735			16,840			31,265			34,975
Total Discharges		14,603			16,525			31,465			35,054
Average length of stay (days)		103.7			94.5			104.3			94.4
Median length of stay (days)		17.0			14.0			16.0			13.0
ADC by major diagnosis
Cerebro		37.6	%		36.8	%		37.5	%		36.5	%
Neurological		22.7			22.4			22.8			22.3
Cancer		11.2			12.1			11.2			12.2
Cardio		15.8			15.6			15.8			15.6
Respiratory		7.2			7.3			7.3			7.5
Other		5.5			5.8			5.4			5.9
Total		100.0	%		100.0	%		100.0	%		100.0	%
Admissions by major diagnosis
Cerebro		23.8	%		21.4	%		23.4	%		21.5	%
Neurological		13.0			12.3			12.9			12.3
Cancer		27.3			28.9			26.0			26.9
Cardio		15.4			14.8			14.7			14.5
Respiratory		9.9			10.5			10.6			10.7
Other		10.6			12.1			12.4			14.1
Total		100.0	%		100.0	%		100.0	%		100.0	%

Estimated uncollectible accounts as a percent of revenues		1.0	%		1.0	%		1.0	%		1.0	%

Accounts receivable --
Days of revenue outstanding-excluding unapplied Medicare payments		33.7			36.3			n.a.			n.a.
Days of revenue outstanding-including unapplied Medicare payments		28.2			21.0			n.a.			n.a.

The "Footnotes to Financial Statements" are integral parts of this financial information.


CHEMED CORPORATION AND SUBSIDIARY COMPANIES
FOOTNOTES TO FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2022 AND 2021
(unaudited)

(a)	Included in the results of operations for 2022 are the following significant credits/(charges) which may not be indicative of ongoing operations
	(in thousands):
		Three Months Ended June 30, 2022
		VITAS		Roto-Rooter		Corporate		Consolidated

	Stock option expense	$	-	$	-	$	(7,216)	$	(7,216)
	Amortization of reacquired franchise agreements		-		(2,352)		-		(2,352)
	Long-term incentive compensation		-		-		(1,517)		(1,517)
	Medicare cap sequestration adjustment		(138)		-		-		(138)
	Direct costs related to COVID-19		80		-		-		80
	Other		-		(28)		-		(28)
	Pretax impact on earnings		(58)		(2,380)		(8,733)		(11,171)
	Excess tax benefits on stock compensation		-		-		2,499		2,499
	Income tax benefit on the above		15		631		1,392		2,038
	After-tax impact on earnings	$	(43)	$	(1,749)	$	(4,842)	$	(6,634)

		Six Months Ended June 30, 2022
		VITAS		Roto-Rooter		Corporate		Consolidated

	Stock option expense	$	-	$	-	$	(14,667)	$	(14,667)
	Amortization of reacquired franchise agreements		-		(4,704)		-		(4,704)
	Long-term incentive compensation		-		-		(2,827)		(2,827)
	Direct costs related to COVID-19		(310)		(960)		-		(1,270)
	Medicare cap sequestration adjustment		(138)		-		-		(138)
	Other		-		(28)		-		(28)
	Pretax impact on earnings		(448)		(5,692)		(17,494)		(23,634)
	Excess tax benefits on stock compensation		-		-		3,940		3,940
	Income tax benefit on the above		114		1,508		2,827		4,449
	After-tax impact on earnings	$	(334)	$	(4,184)	$	(10,727)	$	(15,245)


(b)	Included in the results of operations for 2021 are the following significant credits/(charges) which may not be indicative of ongoing operations
	(in thousands):
		Three Months Ended June 30, 2021
		VITAS		Roto-Rooter		Corporate		Consolidated

	Direct costs related to COVID-19	$	(11,084)	$	(582)	$	-	$	(11,666)
	Stock option expense		-		-		(6,239)		(6,239)
	Amortization of reacquired franchise agreements		-		(2,352)		-		(2,352)
	Facility relocation expenses		(1,855)		-		-		(1,855)
	Long-term incentive compensation		-		-		(1,673)		(1,673)
	Litigation settlements		-		98		-		98
	Pretax impact on earnings		(12,939)		(2,836)		(7,912)		(23,687)
	Excess tax benefits on stock compensation		-		-		868		868
	Income tax benefit on the above		3,287		751		1,203		5,241
	After-tax impact on earnings	$	(9,652)	$	(2,085)	$	(5,841)	$	(17,578)

		Six Months Ended June 30, 2021
		VITAS		Roto-Rooter		Corporate		Consolidated

	Direct costs related to COVID-19	$	(12,836)	$	(1,136)	$	(38)	$	(14,010)
	Stock option expense		-		-		(12,345)		(12,345)
	Amortization of reacquired franchise agreements		-		(4,704)		-		(4,704)
	Long-term incentive compensation		-		-		(3,566)		(3,566)
	Facility relocation expenses		(1,855)		-		-		(1,855)
	Litigation settlements		-		98		-		98
	Pretax impact on earnings		(14,691)		(5,742)		(15,949)		(36,382)
	Excess tax benefits on stock compensation		-		-		4,106		4,106
	Income tax benefit on the above		3,731		1,522		2,475		7,728
	After-tax impact on earnings	$	(10,960)	$	(4,220)	$	(9,368)	$	(24,548)

(c)	VITAS has 8 large (greater than 450 ADC), 21 medium (greater than 200 but less than 450 ADC) and 23 small (less than 200 ADC) hospice programs. Of Vitas' 30 Medicare provider numbers, for the current cap year, 27 provider numbers have a Medicare cap cushion of greater than 10%, one provider number has Medicare cap cushion between 5% and 10% and two provider numbers have a Medicare cap liability.