NYSE$CHE

Chemed Corp · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Chemed's Q4 2019 results reflected revenue growth and increased earnings per share.

Chemed Corporation reported a 14.2% increase in revenue to $522 million for Q4 2019. GAAP diluted EPS increased by 21.5% to $3.96, and adjusted diluted EPS increased by 26.0% to $4.22.

  • Consolidated revenue increased by 14.2% to $522 million.
  • GAAP diluted EPS increased by 21.5% to $3.96.
  • Adjusted diluted EPS increased by 26.0% to $4.22.
  • VITAS segment net patient revenue increased by 10.7% to $340 million.

Headline financials

Total Revenue

$522M

Previous: $458M+14.2%
EPS (adj)

$4.22

Previous: $3.35+26.0%
Average Daily Census

19.3K

Previous: 18.1K+6.1%
VITAS Admissions

17.5K

Previous: 16.6K+5.4%
Capital Expenditures

$13.3M

Previous: $16.3M-18.7%
Free Cash Flow

$50.3M

Previous: $40.2M+25.2%
Net Income

$65.6M

Previous: $54.3M+20.7%
Operating Income

$77.5M

Previous: $67.4M+14.9%
Gross Profit

$175M

Previous: $144M+21.1%
Cash & Equivalents

$6.2M

Previous: $4.83M+28.3%
Total Assets

$1.27B

Previous: $976M+30.0%

Revenue & EPS history

Chemed · Revenue · Quarterly

$522M

Q4 2019+14.2%vs Q4 2018
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Chemed · $522M total across 2 segments · Q4 2019

  • VITAS Healthcare
    $340M+10.8%
  • Roto-Rooter
    $182M+20.9%

Forward guidance

Revenue growth for VITAS in 2020, prior to Medicare Cap, is estimated to be in the range of 8.5% to 9.5%. Roto-Rooter is forecasted to achieve full-year 2020 revenue growth of 13.0% to 14.0%. Based upon the above, full-year 2020 adjusted earnings per diluted share, excluding non-cash expense for stock options, tax benefits from stock options, costs related to litigation, intangible amortization of reacquired franchise rights and other discrete items, is estimated to be in the range of $16.20 to $16.50.

Tailwinds

  • Revenue growth for VITAS in 2020, prior to Medicare Cap, is estimated to be in the range of 8.5% to 9.5%.
  • Admissions and Average Daily Census in 2020 are estimated to expand approximately 3.5% to 4.5%.
  • Roto-Rooter is forecasted to achieve full-year 2020 revenue growth of 13.0% to 14.0%.
  • Roto-Rooter’s Adjusted EBITDA margin for 2020 is estimated to be in the range of 23.0% to 23.5%.
  • Full-year 2020 adjusted earnings per diluted share, excluding non-cash expense for stock options, tax benefits from stock options, costs related to litigation, intangible amortization of reacquired franchise rights and other discrete items, is estimated to be in the range of $16.20 to $16.50.

Headwinds

  • We are currently estimating $18 million for Medicare Cap billing limitations for calendar year 2020.
  • High acuity days-of-care are estimated at 4.1% of total 2020 days-of-care.
  • Full-year Adjusted EBITDA margin, prior to Medicare Cap, is estimated to be 18.7% to 19.0%.
  • This 2020 guidance assumes an effective corporate tax rate of 25.2%.
  • Chemed’s 2019 reported adjusted earnings per diluted share was $13.96.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2019

Historical avgQ4 2019

+0.7%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+2.1%

Avg return

30 days after

53%

36 / 68 earnings

Positive

+13.0%

Q3 2015

Best reaction

-14.8%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.4%-0.1%+4.0%
Q4 2025-14.8%-9.1%-21.0%
Q3 2025+6.0%+0.4%+0.1%
Q1 2025-6.6%-1.8%-2.7%
Q4 2024+7.4%+7.7%+11.0%
Q3 2024-12.0%-12.7%-6.2%
Q2 2024-0.1%+2.4%+5.7%
Q1 2024-7.0%-8.1%-9.9%
Q4 2023+5.1%+2.6%+7.3%
Q3 2023+9.3%+10.9%+14.4%
Q2 2023-8.1%-8.0%-10.8%
Q1 2023-3.7%-2.2%-4.1%
Q4 2022+3.3%+1.7%+1.9%
Q3 2022+3.2%+4.1%+12.6%
Q2 2022-6.8%-9.2%-8.3%
Q1 2022-1.4%-1.0%+0.8%
Q4 2021+5.1%+5.8%+3.8%
Q3 2021+9.2%+9.0%+9.4%
Q2 2021-4.4%-0.4%-2.4%
Q1 2021+1.5%+2.3%+6.1%
Q4 2020-0.8%-6.7%-3.9%
Q3 2020+1.2%+3.5%+0.2%
Q2 2020+9.0%+10.3%+12.2%
Q1 2020-3.9%-6.5%+5.6%
Q4 2019+3.2%-1.2%-23.1%
Q3 2019-1.7%+0.6%+5.9%
Q2 2019+3.7%+8.1%+13.9%
Q1 2019-0.6%+0.7%+0.3%
Q4 2018+1.3%+2.8%+1.9%
Q3 2018+6.2%+6.6%+7.6%
Q2 2018+0.4%-2.5%+0.1%
Q1 2018+3.0%+3.3%+13.4%
Q4 2017+2.4%+2.1%+12.9%
Q3 2017+9.1%+5.0%+12.7%
Q2 2017-1.1%-2.3%-6.3%
Q1 2017+10.0%+9.4%+9.0%
Q4 2016+1.9%+2.0%+9.1%
Q3 2016-0.3%+1.8%+6.3%
Q2 2016+5.0%+3.0%-7.9%
Q1 2016-6.7%
Q4 2015-5.6%
Q3 2015+13.0%
Q2 2015+5.1%
Q1 2015-4.7%
Q4 2014+7.5%
Q3 2014-1.2%
Q2 2014+4.3%
Q1 2014-3.3%
Q4 2013+10.5%
Q3 2013-5.2%
Q2 2013-7.3%
Q1 2013+3.4%
Q4 2012+4.9%
Q3 2012-2.0%
Q2 2012+5.1%
Q1 2012+2.9%
Q4 2011+0.0%
Q3 2011+1.5%
Q2 2011-5.8%
Q1 2010-2.6%
Q1 2011+1.8%
Q4 2008-1.6%
Q4 2010-1.6%
Q3 2009+1.4%
Q3 2010+1.4%
Q2 2010-0.9%
Q2 2009-0.9%
Q4 2009-0.9%

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