Chemed : Reports First-Quarter 2025 Results
CHE
CINCINNATI--(BUSINESS WIRE)--Apr. 23, 2025-- 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 first quarter ended March 31, 2025, versus the comparable prior-year period.
Results for Quarter Ended March 31, 2025
Consolidated operating results:
VITAS segment operating results:
Roto-Rooter segment operating results:
VITAS
As previously announced, VITAS completed its acquisition of the hospice assets and an assisted living facility of Covenant Health and Community Services, Inc. (Covenant Health) on April 17, 2024 for $85.0 million in cash. Before presenting VITAS' overall results, it is important to disclose the methodology used in determining the impact of Covenant Health's acquisition on VITAS' overall results. VITAS had significant operations in two of the three Florida locations we acquired from Covenant Health. Those locations require that we estimate the Covenant Health impact, as once the operations are integrated, there are not separate results. For instance, there are no VITAS-specific referral sources versus Covenant Health-specific referral sources in these locations. It is very likely that referral sources in the area have historically referred to both VITAS and Covenant Health. We have used historical operating trends in these locations to determine what is "legacy" VITAS activity. All activity above those historical operating trends have been attributed as the Covenant Health impact. We have included the specifically determined impact as it relates to new operating territories acquired. Based on the above, we discuss the range of impact that Covenant had on the overall VITAS operating metrics.
Covenant Health contributed approximately $11.5 million to $12.5 million of revenue in the first quarter of 2025. This revenue translated to net income of approximately $1.8 million to $2.0 million. Adjusted EBITDA in the quarter attributed to Covenant Health is between $2.5 million and $2.7 million.
VITAS net revenue was $407.4 million in the first quarter of 2025, which is an increase of 15.1% when compared to the prior-year period. This revenue increase is comprised primarily of a 11.9% increase in days-of-care and a geographically weighted average Medicare reimbursement rate increase of approximately 3.2%. Acuity mix shift negatively impacted revenue growth 112-basis points in the quarter when compared to the prior-year period's revenue and level-of-care mix. The combination of Medicare Cap and other contra revenue changes increased revenue growth by approximately 112-basis points.
In the first quarter of 2025, VITAS accrued $2.3 million in Medicare Cap billing limitation, essentially flat with the first quarter of 2024.
Of VITAS' 34 Medicare provider numbers, 24 provider numbers have a trailing 12-month Medicare Cap cushion of 10% or greater, four provider numbers have a cushion between 0% and 10%, and six provider numbers have a trailing 12-month Medicare Cap billing limitation totaling $19.6 million.
Average revenue per patient per day in the first quarter of 2025 was $207.58 which is 221-basis points above the prior-year period. Reimbursement for routine home care and high acuity care averaged $183.06 and $1,121.07, respectively. During the quarter, high acuity days-of-care were 2.6% of total days of care, a decline of 22-basis points when compared to the prior-year quarter.
The first quarter 2025 gross margin, excluding Medicare Cap, was 23.7% which is essentially flat with the same period of 2024. Selling, general and administrative expenses were $26.5 million in the first quarter of 2025 compared to $23.8 million in the prior-year quarter.
Adjusted EBITDA, excluding Medicare Cap, totaled $70.3 million in the quarter, an increase of 15.9% when compared to the prior year period. Adjusted EBITDA margin in the quarter, excluding Medicare Cap, was 17.2%.
Roto-Rooter
Roto-Rooter generated quarterly revenue of $239.5 million in the first quarter of 2025, an increase of 1.8%, when compared to the prior-year quarter.
Roto-Rooter branch commercial revenue in the quarter totaled $57.7 million, an increase of 7.3% from the prior-year period. This aggregate commercial revenue change consisted of plumbing declining 4.3%, excavation increasing 38.0%, and water restoration increasing 14.0%. Commercial drain cleaning revenue was essentially flat between quarters.
Roto-Rooter branch residential revenue in the quarter totaled $167.2 million, an increase of 1.7%, over the prior-year period. This aggregate residential revenue change consisted of drain cleaning declining 5.5%, plumbing declining 4.2%, excavation increasing 3.0%, and water restoration increasing 12.5%.
In the first quarter of 2025, revenue from independent contractors declined 6.4% as compared to the same period of 2024.
Roto-Rooter's first quarter 2025 gross margin was 50.9%. This compares to the prior year quarter's gross margin of 51.9%. Roto-Rooter's selling, general and administrative expenses were $62.6 million in the quarter, which is an increase of 2.3% compared to the first quarter of 2024.
Adjusted EBITDA in the first quarter of 2025 totaled $59.2 million, a decrease of 2.4% when compared to the first quarter of 2024. The Adjusted EBITDA margin in the quarter was 24.7% which represents a 108-basis point decline from the first quarter of 2024.
Chemed Consolidated
As of March 31, 2025, Chemed had total cash and cash equivalents of $173.9 million and no current or long-term debt.
In June 2022, Chemed entered into a five-year $550 million Amended and Restated Credit Agreement (Credit Agreement). This Credit Agreement consisted 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. There is approximately $404.5 million of undrawn borrowing capacity under the Credit Agreement after excluding $45.5 million for Letters of Credit.
During the quarter, the Company repurchased 50,000 shares of Chemed stock for $29.8 million which equates to a cost per share of $595.15. As of March 31, 2025, there was approximately $225.6 million of remaining share repurchase authorization under its plan.
Guidance for 2025
Management anticipates providing updated 2025 earnings guidance as part of the June 30, 2025 earnings press release.
Conference Call
As previously disclosed, Chemed will host a conference call and webcast at 10 a.m., ET, on Thursday April 24, 2025, 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/ey8mpmti.
Participants may also register via teleconference at:
https://register-conf.media-server.com/register/BI7c94b6cdd2574c8a8508d7a5a1235973.
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 investor relations section of Chemed's website.
Chemed operates in the healthcare field through its VITAS Healthcare Corporation subsidiary. VITAS provides daily hospice services to 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.
2025
2024
646,943
589,233
430,530
385,127
105,587
115,873
13,445
13,287
2,572
2,521
51
92
552,185
516,900
94,758
72,333
(329
)
(425
)
1,245
12,577
95,674
84,485
(23,917
)
(19,468
)
71,757
65,017
4.91
4.30
14,622
15,121
4.86
4.24
14,764
15,339
2025
2024
103,760
98,418
2,657
9,121
(830
)
8,334
105,587
115,873
2025
2024
2,076
4,243
(830
)
8,334
(1
)
-
1,245
12,577
2025
2024
173,882
313,350
285,873
177,334
7,790
10,712
4,436
9,790
30,404
28,431
502,385
539,617
127,949
117,649
199,679
202,784
131,150
131,751
89,929
88,137
666,940
591,519
8,483
56,176
1,726,515
1,727,633
47,692
56,203
65,743
62,055
38,247
27,353
59,905
49,802
42,976
39,279
35,993
47,282
290,556
281,974
11,771
24,899
127,292
117,550
102,082
106,861
13,052
12,854
544,753
544,138
37,535
37,297
1,538,419
1,398,733
2,786,264
2,505,892
(3,182,718
)
(2,760,543
)
2,262
2,116
1,181,762
1,183,495
1,726,515
1,727,633
2025
2024
71,757
65,017
16,017
15,808
9,091
9,025
2,420
9,106
(14,174
)
(5,422
)
80
80
(67,424
)
5,345
403
1,302
(4,430
)
1,909
(22,592
)
(43,012
)
37,286
23,871
169
25
3,034
(12,243
)
951
13,332
156
406
32,744
84,549
(13,280
)
(12,163
)
(225
)
(7,300
)
112
86
(281
)
(8
)
(13,674
)
(19,385
)
(33,222
)
(38,460
)
22,666
37,242
(7,325
)
(6,050
)
(6,254
)
(5,725
)
438
(2,115
)
159
(664
)
(23,538
)
(15,772
)
(4,468
)
49,392
178,350
263,958
173,882
313,350
407,400
239,543
-
646,943
312,807
117,723
-
430,530
26,538
62,649
16,400
105,587
5,196
8,237
12
13,445
26
2,546
-
2,572
64
(13
)
-
51
344,631
191,142
16,412
552,185
62,769
48,401
(16,412
)
94,758
(48
)
(132
)
(149
)
(329
)
5,296
3,930
(9,226
)
-
48
10
1,187
1,245
68,065
52,209
(24,600
)
95,674
(18,035
)
(12,265
)
6,383
(23,917
)
50,030
39,944
(18,217
)
71,757
354,007
235,226
-
589,233
271,896
113,231
-
385,127
23,792
61,260
30,821
115,873
5,166
8,108
13
13,287
26
2,495
-
2,521
7
85
-
92
300,887
185,179
30,834
516,900
53,120
50,047
(30,834
)
72,333
(46
)
(117
)
(262
)
(425
)
5,194
3,442
(8,636
)
-
29
22
12,526
12,577
58,297
53,394
(27,206
)
84,485
(14,327
)
(12,541
)
7,400
(19,468
)
43,970
40,853
(19,806
)
65,017
2025
50,030
39,944
(18,217
)
71,757
48
132
149
329
18,035
12,265
(6,383
)
23,917
5,196
8,237
12
13,445
26
2,546
-
2,572
73,335
63,124
(24,439
)
112,020
(5,296
)
(3,930
)
9,226
-
(49
)
(10
)
(2,017
)
(2,076
)
-
-
9,091
9,091
-
-
2,657
2,657
67,990
59,184
(5,482
)
121,692
2024
43,970
40,853
(19,806
)
65,017
46
117
262
425
14,327
12,541
(7,400
)
19,468
5,166
8,108
13
13,287
26
2,495
-
2,521
63,535
64,114
(26,931
)
100,718
(5,194
)
(3,442
)
8,636
-
(29
)
(22
)
(4,192
)
(4,243
)
-
-
9,026
9,026
-
-
5,337
5,337
-
-
3,784
3,784
58,312
60,650
(4,340
)
114,622
2025
2024
71,757
65,017
9,091
9,026
2,657
3,784
2,352
2,352
-
5,337
(2,320
)
(2,388
)
(463
)
(3,297
)
83,074
79,831
4.86
4.24
14,764
15,339
5.63
5.20
14,764
15,339
2025
2024
351,566
304,860
34,022
30,303
24,637
24,169
5,344
4,084
415,569
363,416
(3,525
)
(2,944
)
(2,319
)
(4,090
)
(2,325
)
(2,375
)
407,400
354,007
84.6
%
83.9
%
8.2
8.3
5.9
6.7
1.3
1.1
100.0
100.0
(0.8
)
(0.8
)
(0.6
)
(1.1
)
(0.6
)
(0.7
)
98.0
%
97.4
%
1,632,569
1,447,912
307,108
283,158
9,995
7,752
1,949,672
1,738,822
29,704
26,645
22,620
24,037
2,001,996
1,789,504
90
91
18,140
15,911
3,412
3,112
111
85
21,663
19,108
330
293
251
264
22,244
19,665
18,139
16,911
17,875
16,170
118.7
103.9
16.0
16.0
44.7
%
43.6
%
12.4
13.4
9.6
10.1
16.1
16.1
7.2
7.2
10.0
9.6
100.0
%
100.0
%
28.4
%
27.7
%
6.5
7.5
24.6
24.6
15.0
15.6
11.6
10.8
13.9
13.8
100.0
%
100.0
%
0.6
%
1.1
%
47.3
42.3
44.5
34.3
-
-
(9,091
)
(9,091
)
-
-
(2,657
)
(2,657
)
-
(2,352
)
-
(2,352
)
-
(2,352
)
(11,748
)
(14,100
)
-
-
463
463
-
546
1,774
2,320
-
(1,806
)
(9,511
)
(11,317
)
-
-
(9,026
)
(9,026
)
-
-
(5,337
)
(5,337
)
-
-
(3,784
)
(3,784
)
-
(2,352
)
-
(2,352
)
-
(2,352
)
(18,147
)
(20,499
)
-
-
3,297
3,297
-
548
1,840
2,388
-
(1,804
)
(13,010
)
(14,814
)
View source version on businesswire.com:https://www.businesswire.com/news/home/20250423887404/en/
Michael D. Witzeman (513) 762-6714
Source: Chemed Corporation
Disclaimer
Chemed Corporation published this content on April 23, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 23, 2025 at 20:20 UTC.