Business Wire | Jul 27, 2021 04:19PM EDT

Chemed Reports Second-Quarter 2021 Results - Full-Year 2021 Guidance Increased

Jul. 27, 2021

CINCINNATI--(BUSINESS WIRE)--Jul. 27, 2021--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, 2021, versus the comparable prior-year period, as follows:

Consolidated operating results:

* Revenue increased 6.0% to $532 million * GAAP Diluted Earnings-per-Share (EPS) of $3.51, a decrease of 29.9% * Adjusted Diluted EPS of $4.60, an increase of 4.3%

VITAS segment operating results:

* Net Patient Revenue of $312 million, a decline of 4.7% * Average Daily Census (ADC) of 17,995, a decline of 6.3% * Admissions of 16,840, an increase of 0.1% * Net Income, excluding certain discrete items, of $39.4 million, a decline of 21.4% * Adjusted EBITDA, excluding Medicare Cap, of $54.8 million, a decline of 24.4% * Adjusted EBITDA margin, excluding Medicare Cap, of 17.4%, a decrease of 430-basis points

Roto-Rooter segment operating results:

* Revenue of $220 million, an increase of 26.1% * Net Income, excluding certain discrete items, of $44.9 million, an increase of 40.1% * Adjusted EBITDA of $64.3 million, an increase of 37.2% * Adjusted EBITDA margin of 29.2%, an increase of 236-basis points

VITAS

VITAS net revenue was $312 million in the second quarter of 2021, which is a decline of 4.7%, when compared to the prior-year period. This revenue decline is comprised primarily of a 6.3% decline in days-of-care offset by a geographically weighted average Medicare reimbursement rate increase (including the suspension of sequestration on May 1, 2020) of approximately 1.8%. Acuity mix shift had a net impact of reducing revenue approximately $3.8 million, or 1.2%, in the quarter when compared to the prior-year revenue and level-of-care mix. The combination of a lower Medicare Cap and other contra revenue changes offset a portion of the revenue decline by approximately 90-basis points.

In the second quarter of 2021, VITAS accrued $2.0 million in Medicare Cap billing limitations. This compares to a $5.7 million Medicare Cap billing limitation in the second quarter of 2020.

Of VITAS' 30 Medicare provider numbers, 27 provider numbers currently have a Medicare Cap cushion of 10% or greater, one provider number has a cap cushion between 0% and 5% and two provider numbers currently have a fiscal 2021 Medicare Cap billing limitation liability.

Average revenue per patient per day in the second quarter of 2021 was $195.21, which, including acuity mix shift, is 61-basis points above the prior-year period. Reimbursement for routine home care and high acuity care averaged $169.06 and $988.03, respectively. During the quarter, high acuity days-of-care were 3.2% of total days of care, 32-basis points less than the prior-year quarter.

The second quarter 2021 gross margin, excluding Medicare Cap, increased costs for personal protection equipment (PPE), disinfecting facilities and other costs related to operating during the pandemic, was 24.7%. This is a 252-basis point margin decline when compared to the second quarter of 2020.

Selling, general and administrative expense was $22.6 million in the second quarter of 2021 and compares to $21.1 million incurred in the prior-year quarter. Adjusted EBITDA, excluding Medicare Cap, totaled $54.8 million in the quarter, a decrease of 24.4%. Adjusted EBITDA margin in the quarter, excluding Medicare Cap, was 17.4%, which is 430-basis points less than the prior-year period.

Roto-Rooter

Roto-Rooter generated quarterly revenue of $220 million in the second quarter of 2021, an increase of $45.6 million, or 26.1%, over the prior-year quarter.

Total Roto-Rooter branch commercial revenue in the quarter totaled $50.3 million, an increase of 31.8% over the prior year. This aggregate commercial revenue growth consisted of drain cleaning revenue increasing 39.8%, plumbing increasing 32.4% and excavation expanding 25.8%. Water restoration increased 8.3%.

Total Roto-Rooter branch residential revenue in the quarter totaled $149 million, an increase of 23.7% over the prior-year period. This aggregate residential revenue growth consisted of drain cleaning increasing 20.6%, plumbing expanding 30.7%, excavation increasing 22.4%, and water restoration increasing 23.1%.

Roto-Rooter's gross margin in the quarter was 53.3%, a 211-basis point increase when compared to the second quarter of 2020. Adjusted EBITDA in the second quarter of 2021 totaled $64.3 million, an increase of 37.2%. The Adjusted EBITDA margin in the quarter was 29.2%, which is a 236-basis point increase when compared to the prior year.

Chemed Consolidated

As of June 30, 2021, Chemed had total cash and cash equivalents of $92 million and no long-term debt.

In June 2018, Chemed entered into a five-year Amended and Restated Credit Agreement that consists of a $450 million revolving credit facility. The interest rate on this facility has a floating rate that is currently LIBOR plus 100-basis points. At June 30, 2021, the Company had approximately $404 million of undrawn borrowing capacity under this credit agreement.

During the quarter, the Company repurchased 250,000 shares of Chemed stock for $122 million which equates to a cost per share of $487.53. As of June 30, 2021, there was approximately $312 million of remaining share repurchase authorization under this plan.

Chemed restarted its share repurchase program in 2007. Since that time, Chemed has repurchased approximately 14.9 million shares, aggregating approximately $1.6 billion at an average share cost of $104.70. Including dividends over this period, Chemed has returned approximately $1.8 billion to shareholders.

Guidance for 2021

Historically, Chemed earnings guidance has been developed using previous years' key operating metrics which are then modeled and projected out for the calendar year. 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 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 2021 calendar year. However, this guidance should be taken with the recognition the pandemic will continue to disrupt our healthcare system and general economy to such an extent that future rules, regulations and government mandates could materially impact the company's ability to achieve this guidance.

Statistically, patients residing in senior housing are identified as hospice appropriate earlier into their terminal prognosis and have a much greater probability of having a length of stay in excess of 90 days. Hospice patients referred from hospitals, oncology practices and similar referral sources are generally more acute and have a significantly lower probability of lengths-of-stay exceeding 90 days. According to data released by the National Investment Center for Seniors Housing & Care, COVID-19 continues to adversely affect senior housing occupancy. This reduced occupancy in senior housing has had a corresponding reduction in VITAS nursing home admissions. Nursing home patients represented 14.9% of VITAS' second-quarter 2021 patient census. This compares to nursing home patients averaging 18.2% of total census just prior to the pandemic.

This guidance anticipates senior housing occupancy will begin to normalize to pre-pandemic occupancy starting in the second half of calendar year 2021.

Based upon the above discussion, VITAS 2021 revenue, prior to Medicare Cap, is estimated to decline approximately 4.5% when compared to the prior year. Average Daily Census in 2021 is estimated to decline approximately 5.0%. Full-year Adjusted EBITDA margin, prior to Medicare Cap, is estimated to be 18.3%. We are currently estimating $7.5 million for Medicare Cap billing limitations in calendar year 2021.

Roto-Rooter is forecasted to achieve full-year 2021 revenue growth of 15.0% to 15.5%. Roto-Rooter's Adjusted EBITDA margin for 2021 is estimated to be between 28% to 29%.

Based upon the above, full-year 2021 adjusted 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 $18.20 to $18.50. This compares to initial 2021 adjusted earnings per diluted share guidance of $17.00 to $17.50. This revised 2021 guidance assumes an effective corporate tax rate on adjusted earnings of 24.7%. Chemed's 2020 reported adjusted earnings per diluted share was $18.08.

Conference Call

Chemed will host a conference call and webcast at 10 a.m., ET, on Wednesday, July 28, 2021, to discuss the Company's quarterly results and to provide an update on its business. The dial-in number for the conference call is (844) 743-2500 for U.S. and Canadian participants and +1 (661) 378-9533 for international participants. The Conference ID is 4172673. A live webcast of the call can be accessed on Chemed's website at www.chemed.com by clicking on Investor Relations Home.

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 4172673. An archived webcast will also be available at www.chemed.com.

Chemed Corporation operates in the healthcare field through its VITAS Healthcare Corporation subsidiary. VITAS provides daily hospice services to approximately 18,000 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 Six Months Ended June 30, 30,

2021 2020 2021 2020

Service revenues $ 532,256 $ 502,199 1,059,616 $ 1,017,997 and salesCost of services 350,493 352,163 690,966 703,908 provided and goodssoldSelling, general 93,838 84,513 185,437 155,096 and administrativeexpenses (aa)Depreciation 13,612 11,659 25,327 23,047

Amortization 2,510 2,488 5,020 4,965

Other operating 104 (41,384 ) 726 (41,142 )expense/(income)Total costs and 460,557 409,439 907,476 845,874 expensesIncome from 71,699 92,760 152,140 172,123 operationsInterest expense (379 ) (651 ) (760 ) (1,626 )

Other income/ 3,785 7,514 7,387 (1,952 )(expense)--net (bb)Income before 75,105 99,623 158,767 168,545 income taxesIncome taxes (18,583 ) (17,522 ) (36,845 ) (30,553 )

Net income $ 56,522 $ 82,101 $ 121,922 $ 137,992

Earnings Per ShareNet income $ 3.57 $ 5.16 $ 7.66 $ 8.65

Average number of 15,829 15,914 15,919 15,953 shares outstandingDiluted EarningsPer ShareNet income $ 3.51 $ 5.01 $ 7.52 $ 8.39

Average number of 16,101 16,373 16,205 16,445 shares outstanding (aa) Selling, general and administrative ("SG&A") expenses comprise (inthousands): Three Months Ended June Six Months Ended June 30, 30,

2021 2020 2021 2020

SG&A expensesbefore long-termincentivecompensation and 88,510 75,176 175,178 153,511 the impact of $ $ $ $market valueadjustments relatedto deferredcompensation plansMarket valueadjustments related 3,655 7,408 6,693 (2,164 )to deferredcompensation trustsLong-term incentive 1,673 1,929 3,566 3,749 compensationTotal SG&A expenses $ 93,838 $ 84,513 $ 185,437 $ 155,096

(bb) Other income/(expense)--net comprises (inthousands): Three Months Ended June Six Months Ended June 30, 30,

2021 2020 2021 2020

Market valueadjustments related $ 3,655 $ 7,408 $ 6,693 $ (2,164 )to deferredcompensation trustsInterest income 138 116 230 225

Other (8 ) (10 ) 464 (13 )

Total other income/ $ 3,785 $ 7,514 $ 7,387 $ (1,952 )(expense)--netCHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)(unaudited)

June 30,

2021

2020

AssetsCurrent assetsCash and cash equivalents$92,120

$20,376

Accounts receivable less allowances123,329

132,487

Inventories7,411

7,467

Prepaid income taxes23,386

5,794

Prepaid expenses22,840

23,183

Total current assets269,086

189,307

Investments of deferred compensation plans held in trust98,256

80,113

Properties and equipment, at cost less accumulated depreciation192,653

183,017

Lease right of use asset123,207

128,418

Identifiable intangible assets less accumulated amortization113,137

122,791

Goodwill578,650

578,491

Other assets8,807

9,055

Total Assets$1,383,796

$1,291,192

LiabilitiesCurrent liabilitiesAccounts payable$55,975

$36,704

Income taxes5

19,576

Accrued insurance51,963

50,847

Accrued compensation83,608

80,552

Accrued legal1,391

6,959

Short-term lease liability36,440

36,093

Unutilized CARES Act Grant-

39,236

Other current liabilities38,020

48,549

Total current liabilities267,402

318,516

Deferred income taxes21,713

21,108

Deferred compensation liabilities97,374

77,639

Long-term lease liability99,093

104,444

Other liabilities27,440

18,789

Total Liabilities513,022

540,496

Stockholders' EquityCapital stock36,385

36,040

Paid-in capital999,697

904,421

Retained earnings1,834,835

1,553,144

Treasury stock, at cost(2,002,326

)

(1,745,299

)

Deferred compensation payable in Company stock2,183

2,390

Total Stockholders' Equity870,774

750,696

Total Liabilities and Stockholders' Equity$1,383,796

$1,291,192

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)(unaudited)



June 30,

2021 2020

AssetsCurrent assetsCash and cash equivalents $ 92,120 $ 20,376

Accounts receivable less allowances 123,329 132,487

Inventories 7,411 7,467

Prepaid income taxes 23,386 5,794

Prepaid expenses 22,840 23,183

Total current assets 269,086 189,307

Investments of deferred compensation plans held 98,256 80,113 in trustProperties and equipment, at cost less 192,653 183,017 accumulated depreciationLease right of use asset 123,207 128,418

Identifiable intangible assets less accumulated 113,137 122,791 amortizationGoodwill 578,650 578,491

Other assets 8,807 9,055

Total Assets $ 1,383,796 $ 1,291,192

LiabilitiesCurrent liabilitiesAccounts payable $ 55,975 $ 36,704

Income taxes 5 19,576

Accrued insurance 51,963 50,847

Accrued compensation 83,608 80,552

Accrued legal 1,391 6,959

Short-term lease liability 36,440 36,093

Unutilized CARES Act Grant - 39,236

Other current liabilities 38,020 48,549

Total current liabilities 267,402 318,516

Deferred income taxes 21,713 21,108

Deferred compensation liabilities 97,374 77,639

Long-term lease liability 99,093 104,444

Other liabilities 27,440 18,789

Total Liabilities 513,022 540,496

Stockholders' EquityCapital stock 36,385 36,040

Paid-in capital 999,697 904,421

Retained earnings 1,834,835 1,553,144

Treasury stock, at cost (2,002,326 ) (1,745,299 )

Deferred compensation payable in Company stock 2,183 2,390

Total Stockholders' Equity 870,774 750,696

Total Liabilities and Stockholders' Equity $ 1,383,796 $ 1,291,192

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)(unaudited)

For the Six Months Ended June 30,

2021

2020

Cash Flows from Operating ActivitiesNet income$121,922

$137,992

Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization30,347

28,012

Stock option expense12,345

10,113

Litigation settlements paid(9,440

)

-

Noncash long-term incentive compensation3,402

3,527

Noncash directors' compensation1,173

1,171

Provision for deferred income taxes1,051

2,717

Amortization of debt issuance costs153

153

Provision for bad debts40

871

Unutilized CARES Act grant-

39,236

Deferred payroll taxes-

10,716

Changes in operating assets and liabilities, excluding amounts acquired in business combinations:Decrease in accounts receivable4,722

6,696

Increase in inventories(316

)

(5

)

Decrease/(increase) in prepaid expenses3,337

(33

)

(Decrease)/increase in accounts payable and other current liabilities(10,815)13,303Change in current income taxes(26,242

)

23,725

Net change in lease assets and liabilities(436

)

1,287

Increase in other assets(10,088

)

(2,988

)

Increase in other liabilities10,088

1,383

Other sources/(uses)796

(54

)

Net cash provided by operating activities132,039

277,822

Cash Flows from Investing ActivitiesCapital expenditures(33,604

)

(32,251

)

Business combinations-

(3,600

)

Other sources302

473

Net cash used by investing activities(33,302

)

(35,378

)

Cash Flows from Financing ActivitiesPurchases of treasury stock(166,649

)

(122,148

)

Proceeds from exercise of stock options16,186

19,440

Dividends paid(10,864

)

(10,238

)

Capital stock surrendered to pay taxes on stock-based compensation(8,598

)

(14,845

)

Payments on revolving line of credit-

(264,900

)

Proceeds from revolving line of credit-

174,900

Change in cash overdrafts payable-

(9,849

)

Other sources/(uses)633

(586

)

Net cash used by financing activities(169,292

)

(228,226

)

(Decrease)/Increase in Cash and Cash Equivalents(70,555

)

14,218

Cash and cash equivalents at beginning of year162,675

6,158

Cash and cash equivalents at end of year$92,120

$20,376

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)(unaudited)



For the Six Months Ended June 30,

2021 2020

Cash Flows from Operating ActivitiesNet income $ 121,922 $ 137,992

Adjustments to reconcile net income to net cashprovided by operating activities:Depreciation and amortization 30,347 28,012

Stock option expense 12,345 10,113

Litigation settlements paid (9,440 ) -

Noncash long-term incentive compensation 3,402 3,527

Noncash directors' compensation 1,173 1,171

Provision for deferred income taxes 1,051 2,717

Amortization of debt issuance costs 153 153

Provision for bad debts 40 871

Unutilized CARES Act grant - 39,236

Deferred payroll taxes - 10,716

Changes in operating assets and liabilities,excluding amounts acquired in businesscombinations:Decrease in accounts receivable 4,722 6,696

Increase in inventories (316 ) (5 )

Decrease/(increase) in prepaid expenses 3,337 (33 )

(Decrease)/increase in accounts payable and other (10,815 ) 13,303current liabilitiesChange in current income taxes (26,242 ) 23,725

Net change in lease assets and liabilities (436 ) 1,287

Increase in other assets (10,088 ) (2,988 )

Increase in other liabilities 10,088 1,383

Other sources/(uses) 796 (54 )

Net cash provided by operating activities 132,039 277,822

Cash Flows from Investing ActivitiesCapital expenditures (33,604 ) (32,251 )

Business combinations - (3,600 )

Other sources 302 473

Net cash used by investing activities (33,302 ) (35,378 )

Cash Flows from Financing ActivitiesPurchases of treasury stock (166,649 ) (122,148 )

Proceeds from exercise of stock options 16,186 19,440

Dividends paid (10,864 ) (10,238 )

Capital stock surrendered to pay taxes on (8,598 ) (14,845 )stock-based compensationPayments on revolving line of credit - (264,900 )

Proceeds from revolving line of credit - 174,900

Change in cash overdrafts payable - (9,849 )

Other sources/(uses) 633 (586 )

Net cash used by financing activities (169,292 ) (228,226 )

(Decrease)/Increase in Cash and Cash Equivalents (70,555 ) 14,218

Cash and cash equivalents at beginning of year 162,675 6,158

Cash and cash equivalents at end of year $ 92,120 $ 20,376

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATING STATEMENTS OF INCOME

FOR THE THREE MONTHS ENDED JUNE 30, 2021 AND 2020

(in thousands)(unaudited)

Chemed

VITAS

Roto-Rooter

Corporate

Consolidated

2021 (a)Service revenues and sales$311,935

$220,321

$-

$532,256

Cost of services provided and goods sold247,519

102,974

-

350,493

Selling, general and administrative expenses22,631

53,556

17,651

93,838

Depreciation7,125

6,468

19

13,612

Amortization18

2,492

-

2,510

Other operating expense87

17

-

104

Total costs and expenses277,380

165,507

17,670

460,557

Income/(loss) from operations34,555

54,814

(17,670

)

71,699

Interest expense(43

)

(89

)

(247

)

(379

)

Intercompany interest income/(expense)4,486

1,649

(6,135

)

-

Other income-net99

32

3,654

3,785

Income/(loss) before income taxes39,097

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

2020 (b)Service revenues and sales$327,465

$174,734

$-

$502,199

Cost of services provided and goods sold266,815

85,348

-

352,163

Selling, general and administrative expenses21,072

44,231

19,210

84,513

Depreciation5,556

6,069

34

11,659

Amortization18

2,470

-

2,488

Other operating income(40,826

)

(558

)

-

(41,384

)

Total costs and expenses252,635

137,560

19,244

409,439

Income/(loss) from operations74,830

37,174

(19,244

)

92,760

Interest expense(45

)

(90

)

(516

)

(651

)

Intercompany interest income/(expense)4,739

1,422

(6,161

)

-

Other income/(expense)-net104

(10

)

7,420

7,514

Income/(loss) before income taxes79,628

38,496

(18,501

)

99,623

Income taxes(19,383

)

(9,028

)

10,889

(17,522

)

Net income/(loss)$60,245

$29,468

$(7,612

)

$82,101

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATING STATEMENTS OF INCOME

FOR THE THREE MONTHS ENDED JUNE 30, 2021 AND 2020

(in thousands)(unaudited)

Chemed

VITAS Roto-Rooter Corporate Consolidated

2021 (a)Service revenues and $ 311,935 $ 220,321 $ - $ 532,256 salesCost of services 247,519 102,974 - 350,493 provided and goodssoldSelling, general and 22,631 53,556 17,651 93,838 administrativeexpensesDepreciation 7,125 6,468 19 13,612

Amortization 18 2,492 - 2,510

Other operating 87 17 - 104 expenseTotal costs and 277,380 165,507 17,670 460,557 expensesIncome/(loss) from 34,555 54,814 (17,670 ) 71,699 operationsInterest expense (43 ) (89 ) (247 ) (379 )

Intercompany interest 4,486 1,649 (6,135 ) - income/(expense)Other income-net 99 32 3,654 3,785

Income/(loss) before 39,097 56,406 (20,398 ) 75,105 income taxesIncome taxes (9,385 ) (13,633 ) 4,435 (18,583 )

Net income/(loss) $ 29,712 $ 42,773 $ (15,963 ) $ 56,522

2020 (b)Service revenues and $ 327,465 $ 174,734 $ - $ 502,199 salesCost of services 266,815 85,348 - 352,163 provided and goodssoldSelling, general and 21,072 44,231 19,210 84,513 administrativeexpensesDepreciation 5,556 6,069 34 11,659

Amortization 18 2,470 - 2,488

Other operating income (40,826 ) (558 ) - (41,384 )

Total costs and 252,635 137,560 19,244 409,439 expensesIncome/(loss) from 74,830 37,174 (19,244 ) 92,760 operationsInterest expense (45 ) (90 ) (516 ) (651 )

Intercompany interest 4,739 1,422 (6,161 ) - income/(expense)Other income/(expense) 104 (10 ) 7,420 7,514 -netIncome/(loss) before 79,628 38,496 (18,501 ) 99,623 income taxesIncome taxes (19,383 ) (9,028 ) 10,889 (17,522 )

Net income/(loss) $ 60,245 $ 29,468 $ (7,612 ) $ 82,101

The "Footnotes to Financial Statements" are integral parts of this financial information.The "Footnotes to Financial Statements" are integral parts of this financialinformation.CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATING STATEMENTS OF INCOME

FOR THE SIX MONTHS ENDED JUNE 30, 2021 AND 2020

(in thousands)(unaudited)

Chemed

VITAS

Roto-Rooter

Corporate

Consolidated

2021 (a)Service revenues and sales$627,723

$431,893

$-

$1,059,616

Cost of services provided and goods sold486,186

204,780

-

690,966

Selling, general and administrative expenses44,721

106,878

33,838

185,437

Depreciation12,462

12,821

44

25,327

Amortization36

4,984

-

5,020

Other operating expense590

136

-

726

Total costs and expenses543,995

329,599

33,882

907,476

Income/(loss) from operations83,728

102,294

(33,882

)

152,140

Interest expense(85

)

(179

)

(496

)

(760

)

Intercompany interest income/(expense)9,011

3,269

(12,280

)

-

Other income-net632

63

6,692

7,387

Income/(loss) before income taxes93,286

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

2020 (b)Service revenues and sales$665,380

$352,617

$-

$1,017,997

Cost of services provided and goods sold526,244

177,664

-

703,908

Selling, general and administrative expenses43,341

90,513

21,242

155,096

Depreciation11,030

11,947

70

23,047

Amortization36

4,929

-

4,965

Other operating expense(40,712

)

(430

)

-

(41,142

)

Total costs and expenses539,939

284,623

21,312

845,874

Income/(loss) from operations125,441

67,994

(21,312

)

172,123

Interest expense(90

)

(192

)

(1,344

)

(1,626

)

Intercompany interest income/(expense)9,125

2,771

(11,896

)

-

Other income/(expense)-net169

30

(2,151

)

(1,952

)

Income/(loss) before income taxes134,645

70,603

(36,703

)

168,545

Income taxes(33,121

)

(16,813

)

19,381

(30,553

)

Net income/(loss)$101,524

$53,790

$(17,322

)

$137,992

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATING STATEMENTS OF INCOME

FOR THE SIX MONTHS ENDED JUNE 30, 2021 AND 2020

(in thousands)(unaudited)



Chemed

VITAS Roto-Rooter Corporate Consolidated

2021 (a)Service revenues and $ 627,723 $ 431,893 $ - $ 1,059,616 salesCost of services 486,186 204,780 - 690,966 provided and goodssoldSelling, general and 44,721 106,878 33,838 185,437 administrativeexpensesDepreciation 12,462 12,821 44 25,327

Amortization 36 4,984 - 5,020

Other operating 590 136 - 726 expenseTotal costs and 543,995 329,599 33,882 907,476 expensesIncome/(loss) from 83,728 102,294 (33,882 ) 152,140 operationsInterest expense (85 ) (179 ) (496 ) (760 )

Intercompany interest 9,011 3,269 (12,280 ) - income/(expense)Other income-net 632 63 6,692 7,387

Income/(loss) before 93,286 105,447 (39,966 ) 158,767 income taxesIncome taxes (22,805 ) (25,497 ) 11,457 (36,845 )

Net income/(loss) $ 70,481 $ 79,950 $ (28,509 ) $ 121,922

2020 (b)Service revenues and $ 665,380 $ 352,617 $ - $ 1,017,997 salesCost of services 526,244 177,664 - 703,908 provided and goodssoldSelling, general and 43,341 90,513 21,242 155,096 administrativeexpensesDepreciation 11,030 11,947 70 23,047

Amortization 36 4,929 - 4,965

Other operating (40,712 ) (430 ) - (41,142 )expenseTotal costs and 539,939 284,623 21,312 845,874 expensesIncome/(loss) from 125,441 67,994 (21,312 ) 172,123 operationsInterest expense (90 ) (192 ) (1,344 ) (1,626 )

Intercompany interest 9,125 2,771 (11,896 ) - income/(expense)Other income/ 169 30 (2,151 ) (1,952 )(expense)-netIncome/(loss) before 134,645 70,603 (36,703 ) 168,545 income taxesIncome taxes (33,121 ) (16,813 ) 19,381 (30,553 )

Net income/(loss) $ 101,524 $ 53,790 $ (17,322 ) $ 137,992

The "Footnotes to Financial Statements" are integral parts of this financial information.The "Footnotes to Financial Statements" are integral parts of this financialinformation.CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATING SUMMARIES OF EBITDA

FOR THE THREE MONTHS ENDED JUNE 30, 2021 AND 2020

(in thousands)(unaudited)

Chemed

VITAS

Roto-Rooter

Corporate

Consolidated

2021

Net income/(loss)$29,712

$42,773

$(15,963

)

$56,522

Add/(deduct):Interest expense43

89

247

379

Income taxes9,385

13,633

(4,435

)

18,583

Depreciation7,125

6,468

19

13,612

Amortization18

2,492

-

2,510

EBITDA46,283

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-1911,084

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

2020

Net income/(loss)$60,245

$29,468

$(7,612

)

$82,101

Add/(deduct):Interest expense45

90

516

651

Income taxes19,383

9,028

(10,889

)

17,522

Depreciation5,556

6,069

34

11,659

Amortization18

2,470

-

2,488

EBITDA85,247

47,125

(17,951

)

114,421

Add/(deduct):Intercompany interest expense/(income)(4,739

)

(1,422

)

6,161

-

Interest (income)/expense(113

)

10

(13

)

(116

)

CARES Act grant(40,989

)

-

-

(40,989

)

Direct costs related to COVID-1924,265

1,117

-

25,382

Stock option expense-

-

5,068

5,068

COVID-19 related Medicare cap2,250

-

-

2,250

Long-term incentive compensation-

-

1,929

1,929

Medicare cap sequestration adjustment796

-

-

796

Adjusted EBITDA$66,717

$46,830

$(4,806

)

$108,741

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATING SUMMARIES OF EBITDA

FOR THE THREE MONTHS ENDED JUNE 30, 2021 AND 2020

(in thousands)(unaudited)

Chemed

VITAS Roto-Rooter Corporate Consolidated

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 (4,486 ) (1,649 ) 6,135 - expense/(income)Interest income (106 ) (32 ) - (138 )

Direct costs related 11,084 582 - 11,666 to COVID-19Stock option expense - - 6,239 6,239

Long-term incentive - - 1,673 1,673 compensationLitigation settlements - (98 ) - (98 )

Adjusted EBITDA $ 52,775 $ 64,258 $ (6,085 ) $ 110,948

2020

Net income/(loss) $ 60,245 $ 29,468 $ (7,612 ) $ 82,101

Add/(deduct):Interest expense 45 90 516 651

Income taxes 19,383 9,028 (10,889 ) 17,522

Depreciation 5,556 6,069 34 11,659

Amortization 18 2,470 - 2,488

EBITDA 85,247 47,125 (17,951 ) 114,421

Add/(deduct):Intercompany interest (4,739 ) (1,422 ) 6,161 - expense/(income)Interest (income)/ (113 ) 10 (13 ) (116 )expenseCARES Act grant (40,989 ) - - (40,989 )

Direct costs related 24,265 1,117 - 25,382 to COVID-19Stock option expense - - 5,068 5,068

COVID-19 related 2,250 - - 2,250 Medicare capLong-term incentive - - 1,929 1,929 compensationMedicare cap 796 - - 796 sequestrationadjustmentAdjusted EBITDA $ 66,717 $ 46,830 $ (4,806 ) $ 108,741

The "Footnotes to Financial Statements" are integral parts of this financial information.The "Footnotes to Financial Statements" are integral parts of this financialinformation.CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATING SUMMARIES OF EBITDA

FOR THE SIX MONTHS ENDED JUNE 30, 2021 AND 2020

(in thousands)(unaudited)

Chemed

VITAS

Roto-Rooter

Corporate

Consolidated

2021

Net income/(loss)$70,481

$79,950

$(28,509

)

$121,922

Add/(deduct):Interest expense85

179

496

760

Income taxes22,805

25,497

(11,457

)

36,845

Depreciation12,462

12,821

44

25,327

Amortization36

4,984

-

5,020

EBITDA105,869

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-1912,836

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

2020

Net income/(loss)$101,524

$53,790

$(17,322

)

$137,992

Add/(deduct):Interest expense90

192

1,344

1,626

Income taxes33,121

16,813

(19,381

)

30,553

Depreciation11,030

11,947

70

23,047

Amortization36

4,929

-

4,965

EBITDA145,801

87,671

(35,289

)

198,183

Add/(deduct):Intercompany interest expense/(income)(9,125

)

(2,771

)

11,896

-

Interest income(181

)

(31

)

(13

)

(225

)

Direct costs related to COVID-1925,238

1,978

-

27,216

CARES Act grant(40,989

)

-

-

(40,989

)

Stock option expense-

-

10,114

10,114

Long-term incentive compensation-

-

3,749

3,749

COVID-19 Medicare cap2,250

-

-

2,250

Medicare cap sequestration adjustment1,472

-

-

1,472

Adjusted EBITDA$124,466

$86,847

$(9,543

)

$201,770

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATING SUMMARIES OF EBITDA

FOR THE SIX MONTHS ENDED JUNE 30, 2021 AND 2020

(in thousands)(unaudited)

Chemed

VITAS Roto-Rooter Corporate Consolidated

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 (9,011 ) (3,269 ) 12,280 - expense/(income)Interest income (167 ) (63 ) - (230 )

Direct costs related 12,836 1,136 38 14,010 to COVID-19Stock option expense - - 12,345 12,345

Long-term incentive - - 3,566 3,566 compensationLitigation settlements - (98 ) - (98 )

Adjusted EBITDA $ 109,527 $ 121,137 $ (11,197 ) $ 219,467

2020

Net income/(loss) $ 101,524 $ 53,790 $ (17,322 ) $ 137,992

Add/(deduct):Interest expense 90 192 1,344 1,626

Income taxes 33,121 16,813 (19,381 ) 30,553

Depreciation 11,030 11,947 70 23,047

Amortization 36 4,929 - 4,965

EBITDA 145,801 87,671 (35,289 ) 198,183

Add/(deduct):Intercompany interest (9,125 ) (2,771 ) 11,896 - expense/(income)Interest income (181 ) (31 ) (13 ) (225 )

Direct costs related 25,238 1,978 - 27,216 to COVID-19CARES Act grant (40,989 ) - - (40,989 )

Stock option expense - - 10,114 10,114

Long-term incentive - - 3,749 3,749 compensationCOVID-19 Medicare cap 2,250 - - 2,250

Medicare cap 1,472 - - 1,472 sequestrationadjustmentAdjusted EBITDA $ 124,466 $ 86,847 $ (9,543 ) $ 201,770

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

2021

2020

2021

2020

Net income as reported$56,522

$82,101

$121,922

$137,992

Add/(deduct) pre-tax cost of:Direct costs related to COVID-1911,666

25,382

14,010

27,216

Stock option expense6,239

5,068

12,345

10,114

Amortization of reacquired franchise agreements2,352

2,352

4,704

4,704

Long-term incentive compensation1,673

1,929

3,566

3,749

Facility relocation expenses1,855

-

1,855

-

Litigation settlements(98

)

-

(98

)

-

CARES Act grant-

(40,989

)

-

(40,989

)

COVID-19 Medicare cap-

2,250

-

2,250

Medicare cap sequestration adjustments-

796

-

1,472

Add/(deduct) tax impacts:Tax impact of the above pre-tax adjustments (1)(5,241

)

1,537

(7,728

)

(814

)

Excess tax benefits on stock compensation(868

)

(8,203

)

(4,106

)

(12,756

)

Adjusted net income$74,100

$72,223

$146,470

$132,938

Diluted Earnings Per Share As ReportedNet income$3.51

$5.01

$7.52

$8.39

Average number of shares outstanding16,101

16,373

16,205

16,445

Adjusted Diluted Earnings Per ShareAdjusted net income$4.60

$4.41

$9.04

$8.08

Average number of shares outstanding16,101

16,373

16,205

16,445

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

RECONCILIATION OF ADJUSTED NET INCOME

(in thousands, except per share data)(unaudited)



Three Months Ended June Six Months Ended June 30, 30,

2021 2020 2021 2020

Net income as reported $ 56,522 $ 82,101 $ 121,922 $ 137,992

Add/(deduct) pre-taxcost of:Direct costs related to 11,666 25,382 14,010 27,216 COVID-19Stock option expense 6,239 5,068 12,345 10,114

Amortization of 2,352 2,352 4,704 4,704 reacquired franchiseagreementsLong-term incentive 1,673 1,929 3,566 3,749 compensationFacility relocation 1,855 - 1,855 - expensesLitigation settlements (98 ) - (98 ) -

CARES Act grant - (40,989 ) - (40,989 )

COVID-19 Medicare cap - 2,250 - 2,250

Medicare cap - 796 - 1,472 sequestrationadjustmentsAdd/(deduct) taximpacts:Tax impact of the above (5,241 ) 1,537 (7,728 ) (814 )pre-tax adjustments (1)Excess tax benefits on (868 ) (8,203 ) (4,106 ) (12,756 )stock compensationAdjusted net income $ 74,100 $ 72,223 $ 146,470 $ 132,938

Diluted Earnings PerShare As ReportedNet income $ 3.51 $ 5.01 $ 7.52 $ 8.39

Average number of shares 16,101 16,373 16,205 16,445 outstanding Adjusted DilutedEarnings Per ShareAdjusted net income $ 4.60 $ 4.41 $ 9.04 $ 8.08

Average number of shares 16,101 16,373 16,205 16,445 outstanding(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.(1) The tax impact of pre-tax adjustments was calculated using the effectivetax rate of the operating unit for which each adjustment is associated.The "Footnotes to Financial Statements" are integral parts of this financialinformation.CHEMED CORPORATION AND SUBSIDIARY COMPANIES

OPERATING STATISTICS FOR VITAS SEGMENT

(unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

OPERATING STATISTICS2021

2020

2021

2020

Net revenue ($000) (c)Homecare$264,926

$276,345

$528,680

$548,098

Inpatient27,371

25,868

56,527

58,350

Continuous care24,282

34,582

51,631

75,137

Other3,078

2,109

6,016

5,265

Subtotal$319,657

$338,904

$642,854

$686,850

Room and board, net(2,657

)

(2,647

)

(5,322

)

(6,028

)

Contractual allowances(3,065

)

(3,042

)

(6,309

)

(7,192

)

Medicare cap allowance(2,000

)

(5,750

)

(3,500

)

(8,250

)

Net Revenue$311,935

$327,465

$627,723

$665,380

Net revenue as a percent of total before Medicare cap allowanceHomecare82.9

%

81.5

%

82.2

%

79.8

%

Inpatient8.6

7.6

8.8

8.5

Continuous care7.6

10.2

8.0

10.9

Other0.9

0.7

1.0

0.8

Subtotal100.0

100.0

100.0

100.0

Room and board, net(0.8

)

(0.8

)

(0.8

)

(0.9

)

Contractual allowances(1.0

)

(0.9

)

(1.0

)

(1.0

)

Medicare cap allowance(0.6

)

(1.7

)

(0.6

)

(1.2

)

Net Revenue97.6

%

96.6

%

97.6

%

96.9

%

Days of careHomecare1,335,482

1,401,744

2,665,374

2,766,490

Nursing home244,423

279,462

477,206

582,836

Respite5,338

4,158

10,178

10,850

Subtotal routine homecare and respite1,585,243

1,685,364

3,152,758

3,360,176

Inpatient26,493

25,542

54,167

57,890

Continuous care25,786

35,814

55,086

77,187

Total1,637,522

1,746,720

3,262,011

3,495,253

Number of days in relevant time period91

91

181

182

Average daily census ("ADC") (days)Homecare14,676

15,404

14,726

15,201

Nursing home2,686

3,071

2,636

3,202

Respite59

45

57

60

Subtotal routine homecare and respite17,421

18,520

17,419

18,463

Inpatient291

281

299

318

Continuous care283

394

304

424

Total17,995

19,195

18,022

19,205

Total Admissions16,840

16,822

34,975

35,425

Total Discharges16,525

17,000

35,054

35,208

Average length of stay (days)94.5

90.9

94.4

90.8

Median length of stay (days)14.0

14.0

13.0

14.0

ADC by major diagnosisCerebro36.8

%

35.2

%

36.5

%

35.7

%

Neurological22.4

21.7

22.3

21.6

Cancer12.1

12.8

12.2

12.7

Cardio15.6

16.1

15.6

15.9

Respiratory7.3

8.2

7.5

8.3

Other5.8

6.0

5.9

5.8

Total100.0

%

100.0

%

100.0

%

100.0

%

Admissions by major diagnosisCerebro21.4

%

20.9

%

21.5

%

21.0

%

Neurological12.3

13.4

12.3

12.9

Cancer28.9

27.6

26.9

28.0

Cardio14.8

14.6

14.5

14.9

Respiratory10.5

9.8

10.7

10.9

Other12.1

13.7

14.1

12.3

Total100.0

%

100.0

%

100.0

%

100.0

%

Estimated uncollectible accounts as a percent of revenues1.0

%

0.9

%

1.0

%

1.1

%

Accounts receivable --Days of revenue outstanding-excluding unapplied Medicare payments36.3

31.9

n.a.n.a.Days of revenue outstanding-including unapplied Medicare payments21.0

26.7

n.a.n.a. CHEMED CORPORATION AND SUBSIDIARY COMPANIES

OPERATING STATISTICS FOR VITAS SEGMENT

(unaudited)



Three Months Ended June 30, Six Months Ended June 30,

OPERATING 2021 2020 2021 2020STATISTICSNet revenue ($000)(c)Homecare $ 264,926 $ 276,345 $ 528,680 $ 548,098

Inpatient 27,371 25,868 56,527 58,350

Continuous care 24,282 34,582 51,631 75,137

Other 3,078 2,109 6,016 5,265

Subtotal $ 319,657 $ 338,904 $ 642,854 $ 686,850

Room and board, net (2,657 ) (2,647 ) (5,322 ) (6,028 )

Contractual (3,065 ) (3,042 ) (6,309 ) (7,192 )allowancesMedicare cap (2,000 ) (5,750 ) (3,500 ) (8,250 )allowanceNet Revenue $ 311,935 $ 327,465 $ 627,723 $ 665,380

Net revenue as apercent of totalbefore Medicare capallowanceHomecare 82.9 % 81.5 % 82.2 % 79.8 %

Inpatient 8.6 7.6 8.8 8.5

Continuous care 7.6 10.2 8.0 10.9

Other 0.9 0.7 1.0 0.8

Subtotal 100.0 100.0 100.0 100.0

Room and board, net (0.8 ) (0.8 ) (0.8 ) (0.9 )

Contractual (1.0 ) (0.9 ) (1.0 ) (1.0 )allowancesMedicare cap (0.6 ) (1.7 ) (0.6 ) (1.2 )allowanceNet Revenue 97.6 % 96.6 % 97.6 % 96.9 %

Days of careHomecare 1,335,482 1,401,744 2,665,374 2,766,490

Nursing home 244,423 279,462 477,206 582,836

Respite 5,338 4,158 10,178 10,850

Subtotal routine 1,585,243 1,685,364 3,152,758 3,360,176 homecare andrespiteInpatient 26,493 25,542 54,167 57,890

Continuous care 25,786 35,814 55,086 77,187

Total 1,637,522 1,746,720 3,262,011 3,495,253

Number of days in 91 91 181 182 relevant timeperiodAverage dailycensus ("ADC")(days)Homecare 14,676 15,404 14,726 15,201

Nursing home 2,686 3,071 2,636 3,202

Respite 59 45 57 60

Subtotal routine 17,421 18,520 17,419 18,463 homecare andrespiteInpatient 291 281 299 318

Continuous care 283 394 304 424

Total 17,995 19,195 18,022 19,205

Total Admissions 16,840 16,822 34,975 35,425

Total Discharges 16,525 17,000 35,054 35,208

Average length of 94.5 90.9 94.4 90.8 stay (days)Median length of 14.0 14.0 13.0 14.0 stay (days)ADC by majordiagnosisCerebro 36.8 % 35.2 % 36.5 % 35.7 %

Neurological 22.4 21.7 22.3 21.6

Cancer 12.1 12.8 12.2 12.7

Cardio 15.6 16.1 15.6 15.9

Respiratory 7.3 8.2 7.5 8.3

Other 5.8 6.0 5.9 5.8

Total 100.0 % 100.0 % 100.0 % 100.0 %

Admissions by majordiagnosisCerebro 21.4 % 20.9 % 21.5 % 21.0 %

Neurological 12.3 13.4 12.3 12.9

Cancer 28.9 27.6 26.9 28.0

Cardio 14.8 14.6 14.5 14.9

Respiratory 10.5 9.8 10.7 10.9

Other 12.1 13.7 14.1 12.3

Total 100.0 % 100.0 % 100.0 % 100.0 %

Estimateduncollectible 1.0 % 0.9 % 1.0 % 1.1 %accounts as apercent of revenues Accounts receivable--Days of revenueoutstanding-excluding 36.3 31.9 n.a. n.a.unapplied MedicarepaymentsDays of revenueoutstanding-including 21.0 26.7 n.a. n.a.unapplied MedicarepaymentsThe "Footnotes to Financial Statements" are integral parts of this financial information.The "Footnotes to Financial Statements" are integral parts of this financialinformation.CHEMED CORPORATION AND SUBSIDIARY COMPANIESFOOTNOTES TO FINANCIAL STATEMENTSFOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2021 AND 2020(unaudited)(a)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

(12,939

)

(2,836

)

(7,912

)

(23,687

)

Excess tax benefits on stock compensation-

-

868

868

Income tax benefit on the above3,287

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 above3,731

1,522

2,475

7,728

After-tax impact on earnings$(10,960

)

$(4,220

)

$(9,368

)

$(24,548

)

(b)Included in the results of operations for 2020 are the following significant credits/(charges) which may not be indicative of ongoing operations(in thousands):Three Months Ended June 30, 2020

VITAS

Roto-Rooter

Corporate

Consolidated

CARES Act grant$40,989

$-

$-

$40,989

Direct costs related to COVID-19(24,265

)

(1,117

)

-

(25,382

)

Stock option expense-

-

(5,068

)

(5,068

)

Amortization of reacquired franchise agreements-

(2,352

)

-

(2,352

)

COVID-19 Medicare cap(2,250

)

-

-

(2,250

)

Long-term incentive compensation-

-

(1,929

)

(1,929

)

Medicare cap sequestration adjustment(796

)

-

-

(796

)

Pretax impact on earnings13,678

(3,469

)

(6,997

)

3,212

Excess tax benefits on stock compensation-

-

8,203

8,203

Income tax benefit on the above(3,515

)

918

1,060

(1,537

)

After-tax impact on earnings$10,163

$(2,551

)

$2,266

$9,878

Six Months Ended June 30, 2020

VITAS

Roto-Rooter

Corporate

Consolidated

CARES Act grant$40,989

$-

$-

$40,989

Direct costs related to COVID-19(25,238

)

(1,978

)

-

(27,216

)

Stock option expense-

-

(10,114

)

(10,114

)

Amortization of reacquired franchise agreements-

(4,704

)

-

(4,704

)

Long-term incentive compensation-

-

(3,749

)

(3,749

)

COVID-19 Medicare cap(2,250

)

-

-

(2,250

)

Medicare cap sequestration adjustment(1,472

)

-

-

(1,472

)

Pretax impact on earnings12,029

(6,682

)

(13,863

)

(8,516

)

Excess tax benefits on stock compensation-

-

12,756

12,756

Income tax benefit on the above(3,096

)

1,770

2,140

814

After-tax impact on earnings$8,933

$(4,912

)

$1,033

$5,054



CHEMED CORPORATION AND SUBSIDIARY COMPANIESFOOTNOTES TO FINANCIAL STATEMENTSFOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2021 AND 2020(unaudited) Included in the results of operations for 2021 are the following(a) 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 $ (11,084 ) $ (582 ) $ - $ (11,666 ) related to COVID-19 Stock option - - (6,239 ) (6,239 ) expense Amortization of reacquired - (2,352 ) - (2,352 ) franchise agreements Facility relocation (1,855 ) - - (1,855 ) expenses Long-term incentive - - (1,673 ) (1,673 ) compensation Litigation - 98 - 98 settlements (12,939 ) (2,836 ) (7,912 ) (23,687 )

Excess tax benefits - - 868 868 on stock compensation Income tax benefit 3,287 751 1,203 5,241 on the above After-tax impact on $ (9,652 ) $ (2,085 ) $ (5,841 ) $ (17,578 ) earnings Six Months Ended June 30, 2021

VITAS Roto-Rooter Corporate Consolidated

Direct costs $ (12,836 ) $ (1,136 ) $ (38 ) $ (14,010 ) related to COVID-19 Stock option - - (12,345 ) (12,345 ) expense Amortization of reacquired - (4,704 ) - (4,704 ) franchise agreements Long-term incentive - - (3,566 ) (3,566 ) compensation Facility relocation (1,855 ) - - (1,855 ) expenses Litigation - 98 - 98 settlements Pretax impact on (14,691 ) (5,742 ) (15,949 ) (36,382 ) earnings Excess tax benefits - - 4,106 4,106 on stock compensation Income tax benefit 3,731 1,522 2,475 7,728 on the above After-tax impact on $ (10,960 ) $ (4,220 ) $ (9,368 ) $ (24,548 ) earnings Included in the results of operations for 2020 are the following(b) significant credits/(charges) which may not be indicative of ongoing operations (in thousands): Three Months Ended June 30, 2020

VITAS Roto-Rooter Corporate Consolidated

CARES Act grant $ 40,989 $ - $ - $ 40,989

Direct costs (24,265 ) (1,117 ) - (25,382 ) related to COVID-19 Stock option - - (5,068 ) (5,068 ) expense Amortization of reacquired - (2,352 ) - (2,352 ) franchise agreements COVID-19 Medicare (2,250 ) - - (2,250 ) cap Long-term incentive - - (1,929 ) (1,929 ) compensation Medicare cap (796 ) - - (796 ) sequestration adjustment Pretax impact on 13,678 (3,469 ) (6,997 ) 3,212 earnings Excess tax benefits - - 8,203 8,203 on stock compensation Income tax benefit (3,515 ) 918 1,060 (1,537 ) on the above After-tax impact on $ 10,163 $ (2,551 ) $ 2,266 $ 9,878 earnings Six Months Ended June 30, 2020

VITAS Roto-Rooter Corporate Consolidated

CARES Act grant $ 40,989 $ - $ - $ 40,989

Direct costs (25,238 ) (1,978 ) - (27,216 ) related to COVID-19 Stock option - - (10,114 ) (10,114 ) expense Amortization of reacquired - (4,704 ) - (4,704 ) franchise agreements Long-term incentive - - (3,749 ) (3,749 ) compensation COVID-19 Medicare (2,250 ) - - (2,250 ) cap Medicare cap (1,472 ) - - (1,472 ) sequestration adjustment Pretax impact on 12,029 (6,682 ) (13,863 ) (8,516 ) earnings Excess tax benefits - - 12,756 12,756 on stock compensation Income tax benefit (3,096 ) 1,770 2,140 814 on the above After-tax impact on $ 8,933 $ (4,912 ) $ 1,033 $ 5,054 earnings(c)VITAS has 10 large (greater than 450 ADC), 18 medium (greater than 200 but less than 450 ADC) and 21 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 10% or greater, one provider number has a cap cushion between 0% and 5%, and two provider numbers have a Medicare cap liability. View source version on businesswire.com: https://www.businesswire.com/news/home/20210727006033/en/

CONTACT: David P. Williams (513) 762-6901