Business Wire | Oct 28, 2021 04:16PM EDT

Chemed Reports Third-Quarter 2021 Results - Full-Year 2021 Earnings Guidance Increased

Oct. 28, 2021

CINCINNATI--(BUSINESS WIRE)--Oct. 28, 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 third quarter ended September 30, 2021, versus the comparable prior-year period, as follows:

Consolidated operating results:

* Revenue increased 2.0% to $539 million * GAAP Diluted Earnings-per-Share (EPS) of $4.55, an increase of 9.9% * Adjusted Diluted EPS of $5.06, an increase of 4.1%

VITAS segment operating results:

* Net Patient Revenue of $317 million, a decline of 5.8% * Average Daily Census (ADC) of 18,034, a decline of 5.3% * Admissions of 17,598, a decline of 1.9% * Net Income, excluding certain discrete items, of $44.8 million, a decline of 18.7% * Adjusted EBITDA, excluding Medicare Cap, of $60.4 million, a decline of 11.5% * Adjusted EBITDA margin, excluding Medicare Cap, of 19.0%, a decrease of 146-basis points

Roto-Rooter segment operating results:

* Revenue of $221 million, an increase of 15.7% * Net Income, excluding certain discrete items, of $46.6 million, an increase of 28.9% * Adjusted EBITDA of $65.8 million, an increase of 27.1% * Adjusted EBITDA margin of 29.7%, an increase of 266-basis points

VITAS

VITAS net revenue was $317 million in the third quarter of 2021, which is a decline of 5.8%, when compared to the prior-year period. This revenue decline is comprised primarily of a 5.3% decline in days-of-care partially offset by a geographically weighted average Medicare reimbursement rate increase (including the suspension of sequestration) of approximately 1.2%. Acuity mix shift had a net impact of reducing revenue approximately $3.0 million, or 0.9%, 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 negatively impacted revenue growth an additional 80-basis points.

In the third quarter of 2021, VITAS accrued $0.1 million in Medicare Cap billing limitations. This compares to a $4.1 million reversal of Medicare Cap billing limitation in the third 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 have a fiscal 2021 Medicare Cap billing limitation liability.

Average revenue per patient per day in the third quarter of 2021 was $194.53, which, including acuity mix shift, is 22-basis points above the prior-year period. Reimbursement for routine home care and high acuity care averaged $168.88 and $983.43, respectively. During the quarter, high acuity days-of-care were 3.1% of total days of care, 28-basis points less than the prior-year quarter.

The third 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 25.8%. This is a 158-basis point margin decline when compared to the third quarter of 2020.

Selling, general and administrative expense was $21.4 million in the third quarter of 2021 and compares to $21.8 million incurred in the prior-year quarter. Adjusted EBITDA, excluding Medicare Cap, totaled $60.4 million in the quarter, a decrease of 11.5%. Adjusted EBITDA margin in the quarter, excluding Medicare Cap, was 19.0%, which is 146-basis points less than the prior-year period.

Roto-Rooter

Roto-Rooter generated quarterly revenue of $221 million in the third quarter of 2021, an increase of $30.1 million, or 15.7%, when compared to the prior-year quarter.

Roto-Rooter branch commercial revenue in the quarter totaled $52.3 million, an increase of $4.7 million, or 10.0%, over the prior year. This aggregate commercial revenue growth consisted of drain cleaning revenue increasing 17.6%, plumbing increasing 9.3% and excavation declining 1.3%. Water restoration increased 9.4%.

Roto-Rooter branch residential revenue in the quarter totaled $151 million, an increase of $22.2 million, or 17.2%, over the prior-year period. This aggregate residential revenue growth consisted of drain cleaning increasing 11.7%, plumbing expanding 17.4%, excavation increasing 14.1%, and water restoration increasing 28.0%.

Roto-Rooter's gross margin in the quarter, excluding the impact from COVID, was 53.2%, a 95-basis point increase when compared to the third quarter of 2020. Adjusted EBITDA in the third quarter of 2021 totaled $65.8 million, an increase of 27.1%. The Adjusted EBITDA margin in the quarter was 29.7%, which is a 266-basis point improvement when compared to the prior year.

Chemed Consolidated

As of September 30, 2021, Chemed had total cash and cash equivalents of $29 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 September 30, 2021, the Company had approximately $404 million of undrawn borrowing capacity under this credit agreement.

During the quarter, the Company repurchased 350,000 shares of Chemed stock for $164 million which equates to a cost per share of $467.80. As of September 30, 2021, there was approximately $148 million of remaining share repurchase authorization under this plan.

Chemed restarted its share repurchase program in 2007. Since that time, Chemed has repurchased approximately 15.2 million shares, aggregating approximately $1.7 billion at an average share cost of $113.04. Including dividends over this period, Chemed has returned approximately $1.9 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 15.6% of VITAS' third-quarter 2021 patient census. This compares to nursing home patients averaging 18.2% of total census just prior to the pandemic.

Based upon the above discussion, VITAS 2021 revenue, prior to Medicare Cap, is estimated to decline approximately 5% when compared to the prior year. Average Daily Census in 2021 is estimated to decline approximately 5.5%. Full-year Adjusted EBITDA margin, prior to Medicare Cap, is estimated to be 18.8%. We are currently estimating $6.6 million for Medicare Cap billing limitations in calendar year 2021.

Roto-Rooter is forecasted to achieve full-year 2021 revenue growth of 17.3%. Roto-Rooter's Adjusted EBITDA margin for 2021 is estimated to be between 28.5% to 29.0%.

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 $19.00 to $19.20. 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 25.1%. 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 Friday, October 29, 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 6082999. 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 6082999. 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 COMPANIESCONSOLIDATED STATEMENTS OF INCOME(in thousands, except per share data)(unaudited) Three Months Ended Nine Months Ended September September 30, 30,

2021 2020 2021 2020

Service revenues and $ 538,667 $ 528,297 1,598,283 $ 1,546,294 salesCost of services 342,164 339,240 1,033,130 1,043,148 provided and goodssoldSelling, general and 89,217 88,317 274,654 243,413 administrativeexpenses (aa)Depreciation 11,844 11,714 37,171 34,761

Amortization 2,510 2,511 7,530 7,476

Other operating 63 12,207 789 (28,935 )expense/(income)Total costs and 445,798 453,989 1,353,274 1,299,863 expensesIncome from 92,869 74,308 245,009 246,431 operationsInterest expense (583 ) (379 ) (1,343 ) (2,005 )

Other income--net 3,134 7,675 10,521 5,723 (bb)Income before income 95,420 81,604 254,187 250,149 taxesIncome taxes (23,417 ) (13,882 ) (60,262 ) (44,435 )

Net income $ 72,003 $ 67,722 $ 193,925 $ 205,714

Earnings Per Share

Net income $ 4.62 $ 4.25 $ 12.27 $ 12.90

Average number of 15,587 15,940 15,808 15,948 shares outstandingDiluted Earnings Per ShareNet income $ 4.55 $ 4.14 $ 12.06 $ 12.53

Average number of 15,842 16,373 16,083 16,419 shares outstanding (aa) Selling, general and administrative ("SG&A") expenses comprise (inthousands): Three Months Ended Nine Months Ended September September 30, 30,

2021 2020 2021 2020

SG&A expenses beforelong-term incentivecompensationand the impact ofmarket valueadjustments relatedtodeferred $ 84,197 $ 79,287 $ 259,376 $ 232,797 compensation plansMarket value adjustments relatedto deferredcompensation trusts 3,078 7,256 9,770 5,093

Long-term incentive 1,942 1,774 5,508 5,523 compensationTotal SG&A expenses $ 89,217 $ 88,317 $ 274,654 $ 243,413

(bb) Other income--net comprises (inthousands): Three Months Ended Nine Months Ended September September 30, 30,

2021 2020 2021 2020

Market valueadjustments relatedto deferredcompensation trusts $ 3,078 $ 7,256 $ 9,770 $ 5,093

Interest income 57 423 288 647

Other (1 ) (4 ) 463 (17 )

Total other $ 3,134 $ 7,675 $ 10,521 $ 5,723 income--netCHEMED CORPORATION AND SUBSIDIARY COMPANIESCONSOLIDATED BALANCE SHEETS(in thousands, except per share data)(unaudited)September 30,

2021

2020

AssetsCurrent assetsCash and cash equivalents$

28,743

$

112,765

Accounts receivable less allowances118,193

110,839

Inventories8,394

7,546

Prepaid income taxes12,940

14,224

Prepaid expenses32,294

25,222

Total current assets200,564

270,596

Investments of deferred compensation plans held in trust102,045

86,865

Properties and equipment, at cost less accumulated depreciation190,781

181,386

Lease right of use asset127,077

120,382

Identifiable intangible assets less accumulated amortization110,606

120,401

Goodwill578,610

578,519

Other assets8,450

8,805

Total Assets$

1,318,133

$

1,366,954

LiabilitiesCurrent liabilitiesAccounts payable$

60,042

$

39,268

Income taxes180

-

Accrued insurance52,645

50,727

Accrued compensation97,256

101,868

Accrued legal1,497

9,561

Short-term lease liability35,148

33,311

Unutilized CARES Act Grant-

48,041

Other current liabilities39,318

46,387

Total current liabilities286,086

329,163

Deferred income taxes20,100

19,222

Deferred compensation liabilities100,409

86,875

Long-term lease liability104,198

99,241

Other liabilities27,621

31,045

Total Liabilities538,414

565,546

Stockholders' EquityCapital stock36,402

36,137

Paid-in capital1,007,506

925,271

Retained earnings1,901,245

1,615,465

Treasury stock, at cost(2,167,640

)

(1,777,809

)

Deferred compensation payable in Company stock2,206

2,344

Total Stockholders' Equity779,719

801,408

Total Liabilities and Stockholders' Equity$

1,318,133

$

1,366,954

CHEMED CORPORATION AND SUBSIDIARY COMPANIESCONSOLIDATED BALANCE SHEETS(in thousands, except per share data)(unaudited) September 30,

2021 2020

AssetsCurrent assetsCash and cash equivalents $ 28,743 $ 112,765

Accounts receivable less allowances 118,193 110,839

Inventories 8,394 7,546

Prepaid income taxes 12,940 14,224

Prepaid expenses 32,294 25,222

Total current assets 200,564 270,596

Investments of deferred compensation plans held 102,045 86,865 in trustProperties and equipment, at cost less 190,781 181,386 accumulated depreciationLease right of use asset 127,077 120,382

Identifiable intangible assets less accumulated 110,606 120,401 amortizationGoodwill 578,610 578,519

Other assets 8,450 8,805

Total Assets $ 1,318,133 $ 1,366,954

Liabilities

Current liabilities

Accounts payable $ 60,042 $ 39,268

Income taxes 180 -

Accrued insurance 52,645 50,727

Accrued compensation 97,256 101,868

Accrued legal 1,497 9,561

Short-term lease liability 35,148 33,311

Unutilized CARES Act Grant - 48,041

Other current liabilities 39,318 46,387

Total current liabilities 286,086 329,163

Deferred income taxes 20,100 19,222

Deferred compensation liabilities 100,409 86,875

Long-term lease liability 104,198 99,241

Other liabilities 27,621 31,045

Total Liabilities 538,414 565,546

Stockholders' Equity

Capital stock 36,402 36,137

Paid-in capital 1,007,506 925,271

Retained earnings 1,901,245 1,615,465

Treasury stock, at cost (2,167,640 ) (1,777,809 )

Deferred compensation payable in Company stock 2,206 2,344

Total Stockholders' Equity 779,719 801,408

Total Liabilities and Stockholders' Equity $ 1,318,133 $ 1,366,954

CHEMED CORPORATION AND SUBSIDIARY COMPANIESCONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)(unaudited)For the Nine Months Ended September 30,

2021

2020

Cash Flows from Operating ActivitiesNet income$

193,925

$

205,714

Adjustments to reconcile net income to net cash providedby operating activities:Depreciation and amortization44,701

42,237

Stock option expense16,342

13,296

Litigation settlements(9,440

)

2,684

Noncash long-term incentive compensation5,344

5,301

Noncash directors' compensation1,173

1,171

(Benefit)/provision for deferred income taxes(561

)

831

Amortization of debt issuance costs229

229

Unutilized CARES Act grant-

48,041

Deferred payroll taxes-

22,941

Changes in operating assets and liabilities, excludingamounts acquired in business combinations:Decrease in accounts receivable9,247

27,993

Increase in inventories(1,299

)

(84

)

Increase in prepaid expenses(6,117

)

(2,072

)

Increase in accounts payable andother current liabilities6,330

34,526

Change in current income taxes(15,749

)

(4,366

)

Net change in lease assets and liabilities15

1,583

Increase in other assets(13,561

)

(9,646

)

Increase in other liabilities13,474

10,735

Other sources974

1,298

Net cash provided by operating activities245,027

402,412

Cash Flows from Investing ActivitiesCapital expenditures(44,472

)

(42,670

)

Business combinations-

(3,600

)

Other sources760

672

Net cash used by investing activities(43,712

)

(45,598

)

Cash Flows from Financing ActivitiesPurchases of treasury stock(330,380

)

(147,123

)

Proceeds from exercise of stock options17,918

31,498

Dividends paid(16,457

)

(15,639

)

Capital stock surrendered to pay taxes on stock-based compensation(9,445

)

(18,707

)

Change in cash overdrafts payable3,054

(9,849

)

Payments on revolving line of credit(1,500

)

(264,900

)

Proceeds from revolving line of credit1,500

174,900

Other sources/(uses)63

(387

)

Net cash used by financing activities(335,247

)

(250,207

)

(Decrease)/Increase in Cash and Cash Equivalents(133,932

)

106,607

Cash and cash equivalents at beginning of year162,675

6,158

Cash and cash equivalents at end of year$

28,743

$

112,765

CHEMED CORPORATION AND SUBSIDIARY COMPANIESCONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)(unaudited) For the Nine Months Ended September 30,

2021 2020

Cash Flows from Operating ActivitiesNet income $ 193,925 $ 205,714

Adjustments to reconcile net income to net cash providedby operating activities:

Depreciation and amortization 44,701 42,237

Stock option expense 16,342 13,296

Litigation settlements (9,440 ) 2,684

Noncash long-term incentive compensation 5,344 5,301

Noncash directors' compensation 1,173 1,171

(Benefit)/provision for deferred income taxes (561 ) 831

Amortization of debt issuance costs 229 229

Unutilized CARES Act grant - 48,041

Deferred payroll taxes - 22,941

Changes in operating assets and liabilities, excludingamounts acquired in business combinations:

Decrease in accounts receivable 9,247 27,993

Increase in inventories (1,299 ) (84 )

Increase in prepaid expenses (6,117 ) (2,072 )

Increase in accounts payable and

other current liabilities 6,330 34,526

Change in current income taxes (15,749 ) (4,366 )

Net change in lease assets and liabilities 15 1,583

Increase in other assets (13,561 ) (9,646 )

Increase in other liabilities 13,474 10,735

Other sources 974 1,298

Net cash provided by operating activities 245,027 402,412

Cash Flows from Investing Activities

Capital expenditures (44,472 ) (42,670 )

Business combinations - (3,600 )

Other sources 760 672

Net cash used by investing activities (43,712 ) (45,598 )

Cash Flows from Financing Activities

Purchases of treasury stock (330,380 ) (147,123 )

Proceeds from exercise of stock options 17,918 31,498

Dividends paid (16,457 ) (15,639 )

Capital stock surrendered to pay taxes on (9,445 ) (18,707 )stock-based compensationChange in cash overdrafts payable 3,054 (9,849 )

Payments on revolving line of credit (1,500 ) (264,900 )

Proceeds from revolving line of credit 1,500 174,900

Other sources/(uses) 63 (387 )

Net cash used by financing activities (335,247 ) (250,207 )

(Decrease)/Increase in Cash and Cash (133,932 ) 106,607 EquivalentsCash and cash equivalents at beginning of year 162,675 6,158

Cash and cash equivalents at end of year $ 28,743 $ 112,765

CHEMED CORPORATION AND SUBSIDIARY COMPANIESCONSOLIDATING STATEMENTS OF INCOMEFOR THE THREE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020(in thousands)(unaudited)Chemed

VITAS

Roto-Rooter

Corporate

Consolidated

2021 (a)Service revenues and sales$

317,411

$

221,256

$

-

$

538,667

Cost of services provided and goods sold238,212

103,952

-

342,164

Selling, general and administrative expenses21,372

51,914

15,931

89,217

Depreciation5,286

6,539

19

11,844

Amortization18

2,492

-

2,510

Other operating expense/(income)65

(3

)

1

63

Total costs and expenses264,953

164,894

15,951

445,798

Income/(loss) from operations52,458

56,362

(15,951

)

92,869

Interest expense(43

)

(285

)

(255

)

(583

)

Intercompany interest income/(expense)4,513

1,847

(6,360

)

-

Other income-net22

34

3,078

3,134

Income/(loss) before income taxes56,950

57,958

(19,488

)

95,420

Income taxes(14,000

)

(13,404

)

3,987

(23,417

)

Net income/(loss)$

42,950

$

44,554

$

(15,501

)

$

72,003

2020 (b)Service revenues and sales$

337,097

$

191,200

$

-

$

528,297

Cost of services provided and goods sold246,636

92,604

-

339,240

Selling, general and administrative expenses21,799

48,074

18,444

88,317

Depreciation5,592

6,089

33

11,714

Amortization18

2,493

-

2,511

Other operating expense9,052

3,155

-

12,207

Total costs and expenses283,097

152,415

18,477

453,989

Income/(loss) from operations54,000

38,785

(18,477

)

74,308

Interest expense(47

)

(80

)

(252

)

(379

)

Intercompany interest income/(expense)5,337

1,651

(6,988

)

-

Other income-net381

38

7,256

7,675

Income/(loss) before income taxes59,671

40,394

(18,461

)

81,604

Income taxes(13,934

)

(9,218

)

9,270

(13,882

)

Net income/(loss)$

45,737

$

31,176

$

(9,191

)

$

67,722

The "Footnotes to Financial Statements" are integral parts of this financial information.CHEMED CORPORATION AND SUBSIDIARY COMPANIESCONSOLIDATING STATEMENTS OF INCOMEFOR THE THREE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020(in thousands)(unaudited) Chemed

VITAS Roto-Rooter Corporate Consolidated

2021 (a)

Service revenues and $ 317,411 $ 221,256 $ - $ 538,667 salesCost of services 238,212 103,952 - 342,164 provided and goods soldSelling, general and 21,372 51,914 15,931 89,217 administrative expensesDepreciation 5,286 6,539 19 11,844

Amortization 18 2,492 - 2,510

Other operating expense 65 (3 ) 1 63 /(income)Total costs and 264,953 164,894 15,951 445,798 expensesIncome/(loss) from 52,458 56,362 (15,951 ) 92,869 operationsInterest expense (43 ) (285 ) (255 ) (583 )

Intercompany interest 4,513 1,847 (6,360 ) - income/(expense)Other income-net 22 34 3,078 3,134

Income/(loss) before 56,950 57,958 (19,488 ) 95,420 income taxesIncome taxes (14,000 ) (13,404 ) 3,987 (23,417 )

Net income/(loss) $ 42,950 $ 44,554 $ (15,501 ) $ 72,003



2020 (b)

Service revenues and $ 337,097 $ 191,200 $ - $ 528,297 salesCost of services 246,636 92,604 - 339,240 provided and goods soldSelling, general and 21,799 48,074 18,444 88,317 administrative expensesDepreciation 5,592 6,089 33 11,714

Amortization 18 2,493 - 2,511

Other operating expense 9,052 3,155 - 12,207

Total costs and 283,097 152,415 18,477 453,989 expensesIncome/(loss) from 54,000 38,785 (18,477 ) 74,308 operationsInterest expense (47 ) (80 ) (252 ) (379 )

Intercompany interest 5,337 1,651 (6,988 ) - income/(expense)Other income-net 381 38 7,256 7,675

Income/(loss) before 59,671 40,394 (18,461 ) 81,604 income taxesIncome taxes (13,934 ) (9,218 ) 9,270 (13,882 )

Net income/(loss) $ 45,737 $ 31,176 $ (9,191 ) $ 67,722

The "Footnotes to Financial Statements" are integral parts of this financialinformation.CHEMED CORPORATION AND SUBSIDIARY COMPANIESCONSOLIDATING STATEMENTS OF INCOMEFOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020(in thousands)(unaudited)ChemedVITASRoto-Rooter

CorporateConsolidated2021 (a)Service revenues and sales$

945,135

$

653,148

$

-

$

1,598,283

Cost of services provided and goods sold724,398

308,732

-

1,033,130

Selling, general and administrative expenses66,094

158,791

49,769

274,654

Depreciation17,749

19,359

63

37,171

Amortization53

7,477

-

7,530

Other operating expense655

133

1

789

Total costs and expenses808,949

494,492

49,833

1,353,274

Income/(loss) from operations136,186

158,656

(49,833

)

245,009

Interest expense(129

)

(464

)

(750

)

(1,343

)

Intercompany interest income/(expense)13,524

5,116

(18,640

)

-

Other income-net654

97

9,770

10,521

Income/(loss) before income taxes150,235

163,405

(59,453

)

254,187

Income taxes(36,805

)

(38,901

)

15,444

(60,262

)

Net income/(loss)$

113,430

$

124,504

$

(44,009

)

$

193,925

2020 (b)Service revenues and sales$

1,002,477

$

543,817

$

-

$

1,546,294

Cost of services provided and goods sold772,880

270,268

-

1,043,148

Selling, general and administrative expenses65,141

138,587

39,685

243,413

Depreciation16,622

18,035

104

34,761

Amortization53

7,423

-

7,476

Other operating (income)/expense(31,661

)

2,725

1

(28,935

)

Total costs and expenses823,035

437,038

39,790

1,299,863

Income/(loss) from operations179,442

106,779

(39,790

)

246,431

Interest expense(137

)

(272

)

(1,596

)

(2,005

)

Intercompany interest income/(expense)14,463

4,422

(18,885

)

-

Other income-net549

68

5,106

5,723

Income/(loss) before income taxes194,317

110,997

(55,165

)

250,149

Income taxes(47,055

)

(26,031

)

28,651

(44,435

)

Net income/(loss)$

147,262

$

84,966

$

(26,514

)

$

205,714

The "Footnotes to Financial Statements" are integral parts of this financial information.CHEMED CORPORATION AND SUBSIDIARY COMPANIESCONSOLIDATING STATEMENTS OF INCOMEFOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020(in thousands)(unaudited) Chemed VITAS Roto-Rooter Corporate Consolidated

2021 (a)Service revenues and $ 945,135 $ 653,148 $ - $ 1,598,283 salesCost of services 724,398 308,732 - 1,033,130 provided and goods soldSelling, general and 66,094 158,791 49,769 274,654 administrative expensesDepreciation 17,749 19,359 63 37,171

Amortization 53 7,477 - 7,530

Other operating expense 655 133 1 789

Total costs and 808,949 494,492 49,833 1,353,274 expensesIncome/(loss) from 136,186 158,656 (49,833 ) 245,009 operationsInterest expense (129 ) (464 ) (750 ) (1,343 )

Intercompany interest 13,524 5,116 (18,640 ) - income/(expense)Other income-net 654 97 9,770 10,521

Income/(loss) before 150,235 163,405 (59,453 ) 254,187 income taxesIncome taxes (36,805 ) (38,901 ) 15,444 (60,262 )

Net income/(loss) $ 113,430 $ 124,504 $ (44,009 ) $ 193,925



2020 (b)

Service revenues and $ 1,002,477 $ 543,817 $ - $ 1,546,294 salesCost of services 772,880 270,268 - 1,043,148 provided and goods soldSelling, general and 65,141 138,587 39,685 243,413 administrative expensesDepreciation 16,622 18,035 104 34,761

Amortization 53 7,423 - 7,476

Other operating (31,661 ) 2,725 1 (28,935 )(income)/expenseTotal costs and 823,035 437,038 39,790 1,299,863 expensesIncome/(loss) from 179,442 106,779 (39,790 ) 246,431 operationsInterest expense (137 ) (272 ) (1,596 ) (2,005 )

Intercompany interest 14,463 4,422 (18,885 ) - income/(expense)Other income-net 549 68 5,106 5,723

Income/(loss) before 194,317 110,997 (55,165 ) 250,149 income taxesIncome taxes (47,055 ) (26,031 ) 28,651 (44,435 )

Net income/(loss) $ 147,262 $ 84,966 $ (26,514 ) $ 205,714

The "Footnotes to Financial Statements" are integral parts of this financialinformation.CHEMED CORPORATION AND SUBSIDIARY COMPANIESCONSOLIDATING SUMMARIES OF EBITDAFOR THE THREE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020(in thousands)(unaudited)ChemedVITASRoto-Rooter

CorporateConsolidated2021

Net income/(loss)$

42,950

$

44,554

$

(15,501

)

$

72,003

Add/(deduct):Interest expense43

285

255

583

Income taxes14,000

13,404

(3,987

)

23,417

Depreciation5,286

6,539

19

11,844

Amortization18

2,492

-

2,510

EBITDA62,297

67,274

(19,214

)

110,357

Add/(deduct):Intercompany interest expense/(income)(4,513

)

(1,847

)

6,360

-

Interest income(24

)

(34

)

-

(58

)

Stock option expense-

-

3,998

3,998

Direct costs related to COVID-192,501

415

-

2,916

Long-term incentive compensation-

-

1,942

1,942

Other-

-

218

218

Adjusted EBITDA$

60,261

$

65,808

$

(6,696

)

$

119,373

2020

Net income/(loss)$

45,737

$

31,176

$

(9,191

)

$

67,722

Add/(deduct):Interest expense47

80

252

379

Income taxes13,934

9,218

(9,270

)

13,882

Depreciation5,592

6,089

33

11,714

Amortization18

2,493

-

2,511

EBITDA65,328

49,056

(18,176

)

96,208

Add/(deduct):Intercompany interest expense/(income)(5,337

)

(1,651

)

6,988

-

Interest income(385

)

(38

)

-

(423

)

CARES Act grant8,805

-

-

8,805

Direct costs related to COVID-196,945

1,321

-

8,266

Stock option expense-

-

3,182

3,182

Litigation settlement-

3,095

-

3,095

COVID-19 related Medicare cap(2,250

)

-

-

(2,250

)

Long-term incentive compensation-

-

1,774

1,774

Medicare cap sequestration adjustment(852

)

-

-

(852

)

Adjusted EBITDA$

72,254

$

51,783

$

(6,232

)

$

117,805

The "Footnotes to Financial Statements" are integral parts of this financial information.CHEMED CORPORATION AND SUBSIDIARY COMPANIESCONSOLIDATING SUMMARIES OF EBITDAFOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020(in thousands)(unaudited)Chemed

VITAS

Roto-Rooter

Corporate

Consolidated

2021

Net income/(loss)$

113,430

$

124,504

$

(44,009

)

$

193,925

Add/(deduct):Interest expense129

464

750

1,343

Income taxes36,805

38,901

(15,444

)

60,262

Depreciation17,749

19,359

63

37,171

Amortization53

7,477

-

7,530

EBITDA168,166

190,705

(58,640

)

300,231

Add/(deduct):Intercompany interest expense/(income)(13,524

)

(5,116

)

18,640

-

Interest income(191

)

(97

)

-

(288

)

Direct costs related to COVID-1915,338

1,551

38

16,927

Stock option expense-

-

16,342

16,342

Long-term incentive compensation-

-

5,508

5,508

Litigation settlements-

(98

)

-

(98

)

Other-

-

218

218

Adjusted EBITDA$

169,789

$

186,945

$

(17,894

)

$

338,840

2020

Net income/(loss)$

147,262

$

84,966

$

(26,514

)

$

205,714

Add/(deduct):Interest expense137

272

1,596

2,005

Income taxes47,055

26,031

(28,651

)

44,435

Depreciation16,622

18,035

104

34,761

Amortization53

7,423

-

7,476

EBITDA211,129

136,727

(53,465

)

294,391

Add/(deduct):Intercompany interest expense/(income)(14,463

)

(4,422

)

18,885

-

Interest income(566

)

(68

)

(13

)

(647

)

Direct costs related to COVID-1932,184

3,299

-

35,483

CARES Act grant(32,184

)

-

-

(32,184

)

Stock option expense-

-

13,296

13,296

Long-term incentive compensation-

-

5,523

5,523

Litigation settlements-

3,095

-

3,095

Medicare cap sequestration adjustment619

-

-

619

Adjusted EBITDA$

196,719

$

138,631

$

(15,774

)

$

319,576

The "Footnotes to Financial Statements" are integral parts of this financial information.CHEMED CORPORATION AND SUBSIDIARY COMPANIESCONSOLIDATING SUMMARIES OF EBITDAFOR THE THREE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020(in thousands)(unaudited) Chemed VITAS Roto-Rooter Corporate Consolidated

2021

Net income/(loss) $ 42,950 $ 44,554 $ (15,501 ) $ 72,003

Add/(deduct):

Interest expense 43 285 255 583

Income taxes 14,000 13,404 (3,987 ) 23,417

Depreciation 5,286 6,539 19 11,844

Amortization 18 2,492 - 2,510

EBITDA 62,297 67,274 (19,214 ) 110,357

Add/(deduct):

Intercompany interest (4,513 ) (1,847 ) 6,360 - expense/(income)Interest income (24 ) (34 ) - (58 )

Stock option expense - - 3,998 3,998

Direct costs related to 2,501 415 - 2,916 COVID-19Long-term incentive - - 1,942 1,942 compensationOther - - 218 218

Adjusted EBITDA $ 60,261 $ 65,808 $ (6,696 ) $ 119,373



2020

Net income/(loss) $ 45,737 $ 31,176 $ (9,191 ) $ 67,722

Add/(deduct):

Interest expense 47 80 252 379

Income taxes 13,934 9,218 (9,270 ) 13,882

Depreciation 5,592 6,089 33 11,714

Amortization 18 2,493 - 2,511

EBITDA 65,328 49,056 (18,176 ) 96,208

Add/(deduct):

Intercompany interest (5,337 ) (1,651 ) 6,988 - expense/(income)Interest income (385 ) (38 ) - (423 )

CARES Act grant 8,805 - - 8,805

Direct costs related to 6,945 1,321 - 8,266 COVID-19Stock option expense - - 3,182 3,182

Litigation settlement - 3,095 - 3,095

COVID-19 related (2,250 ) - - (2,250 )Medicare capLong-term incentive - - 1,774 1,774 compensationMedicare cap (852 ) - - (852 )sequestrationadjustmentAdjusted EBITDA $ 72,254 $ 51,783 $ (6,232 ) $ 117,805

The "Footnotes to Financial Statements" are integral parts of this financialinformation. CHEMED CORPORATION AND SUBSIDIARY COMPANIESCONSOLIDATING SUMMARIES OF EBITDAFOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020(in thousands)(unaudited) Chemed

VITAS Roto-Rooter Corporate Consolidated

2021

Net income/(loss) $ 113,430 $ 124,504 $ (44,009 ) $ 193,925

Add/(deduct):

Interest expense 129 464 750 1,343

Income taxes 36,805 38,901 (15,444 ) 60,262

Depreciation 17,749 19,359 63 37,171

Amortization 53 7,477 - 7,530

EBITDA 168,166 190,705 (58,640 ) 300,231

Add/(deduct):

Intercompany interest (13,524 ) (5,116 ) 18,640 - expense/(income)Interest income (191 ) (97 ) - (288 )

Direct costs related to 15,338 1,551 38 16,927 COVID-19Stock option expense - - 16,342 16,342

Long-term incentive - - 5,508 5,508 compensationLitigation settlements - (98 ) - (98 )

Other - - 218 218

Adjusted EBITDA $ 169,789 $ 186,945 $ (17,894 ) $ 338,840

2020

Net income/(loss) $ 147,262 $ 84,966 $ (26,514 ) $ 205,714

Add/(deduct):

Interest expense 137 272 1,596 2,005

Income taxes 47,055 26,031 (28,651 ) 44,435

Depreciation 16,622 18,035 104 34,761

Amortization 53 7,423 - 7,476

EBITDA 211,129 136,727 (53,465 ) 294,391

Add/(deduct):

Intercompany interest (14,463 ) (4,422 ) 18,885 - expense/(income)Interest income (566 ) (68 ) (13 ) (647 )

Direct costs related to 32,184 3,299 - 35,483 COVID-19CARES Act grant (32,184 ) - - (32,184 )

Stock option expense - - 13,296 13,296

Long-term incentive - - 5,523 5,523 compensationLitigation settlements - 3,095 - 3,095

Medicare cap 619 - - 619 sequestrationadjustmentAdjusted EBITDA $ 196,719 $ 138,631 $ (15,774 ) $ 319,576

The "Footnotes to Financial Statements" are integral parts of this financialinformation.CHEMED CORPORATION AND SUBSIDIARY COMPANIESRECONCILIATION OF ADJUSTED NET INCOME(in thousands, except per share data)(unaudited)Three Months Ended September 30,

Nine Months Ended September 30,

2021

2020

2021

2020

Net income as reported$

72,003

$

67,722

$

193,925

$

205,714

Add/(deduct) pre-tax cost of:Direct costs related to COVID-192,916

8,266

16,927

35,483

Stock option expense3,998

3,182

16,342

13,296

Amortization of reacquired franchise agreements2,352

2,352

7,056

7,056

Long-term incentive compensation1,942

1,774

5,508

5,523

Facility relocation expenses-

-

1,855

-

Litigation settlements-

3,095

(98

)

3,095

Other218

-

218

-

CARES Act grant-

8,805

-

(32,184

)

COVID-19 Medicare cap-

(2,250

)

-

-

Medicare cap sequestration adjustments-

(852

)

-

619

Add/(deduct) tax impacts:Tax impact of the above pre-tax adjustments (1)(2,146

)

(5,351

)

(9,874

)

(6,165

)

Excess tax benefits on stock compensation(1,199

)

(7,187

)

(5,305

)

(19,943

)

Adjusted net income$

80,084

$

79,556

$

226,554

$

212,494

Diluted Earnings Per Share As ReportedNet income$

4.55

$

4.14

$

12.06

$

12.53

Average number of shares outstanding15,842

16,373

16,083

16,419

Adjusted Diluted Earnings Per ShareAdjusted net income$

5.06

$

4.86

$

14.09

$

12.94

Average number of shares outstanding15,842

16,373

16,083

16,419

(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 COMPANIESRECONCILIATION OF ADJUSTED NET INCOME(in thousands, except per share data)(unaudited) Three Months Ended Nine Months Ended September 30, September 30,

2021 2020 2021 2020

Net income as reported $ 72,003 $ 67,722 $ 193,925 $ 205,714

Add/(deduct) pre-tax cost of:Direct costs related to 2,916 8,266 16,927 35,483 COVID-19Stock option expense 3,998 3,182 16,342 13,296

Amortization of reacquired 2,352 2,352 7,056 7,056 franchise agreementsLong-term incentive 1,942 1,774 5,508 5,523 compensationFacility relocation - - 1,855 - expensesLitigation settlements - 3,095 (98 ) 3,095

Other 218 - 218 -

CARES Act grant - 8,805 - (32,184 )

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

Medicare cap sequestration - (852 ) - 619 adjustmentsAdd/(deduct) tax impacts:

Tax impact of the above (2,146 ) (5,351 ) (9,874 ) (6,165 )pre-tax adjustments (1)Excess tax benefits on (1,199 ) (7,187 ) (5,305 ) (19,943 )stock compensationAdjusted net income $ 80,084 $ 79,556 $ 226,554 $ 212,494



Diluted Earnings Per Share As ReportedNet income $ 4.55 $ 4.14 $ 12.06 $ 12.53

Average number of shares 15,842 16,373 16,083 16,419 outstanding

Adjusted Diluted Earnings Per ShareAdjusted net income $ 5.06 $ 4.86 $ 14.09 $ 12.94

Average number of shares 15,842 16,373 16,083 16,419 outstanding (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 COMPANIESOPERATING STATISTICS FOR VITAS SEGMENT(unaudited)Three Months Ended September 30,

Nine Months Ended September 30,

OPERATING STATISTICS2021

2020

2021

2020

Net revenue ($000) (c)Homecare$

268,137

$

278,856

$

796,817

$

826,954

Inpatient29,368

27,633

85,895

85,983

Continuous care22,027

30,699

73,658

105,836

Other3,225

2,910

9,241

8,175

Subtotal$

322,757

$

340,098

$

965,611

$

1,026,948

Room and board, net(2,130

)

(3,289

)

(7,451

)

(9,317

)

Contractual allowances(3,119

)

(3,784

)

(9,428

)

(10,976

)

Medicare cap allowance(97

)

4,072

(3,597

)

(4,178

)

Net Revenue$

317,411

$

337,097

$

945,135

$

1,002,477

Net revenue as a percent of total before Medicare cap allowanceHomecare83.1

%

82.0

%

82.5

%

80.5

%

Inpatient9.1

8.1

8.9

8.4

Continuous care6.8

9.0

7.6

10.3

Other1.0

0.9

1.0

0.8

Subtotal100.0

100.0

100.0

100.0

Room and board, net(0.7

)

(1.0

)

(0.8

)

(0.9

)

Contractual allowances(1.0

)

(1.1

)

(1.0

)

(1.1

)

Medicare cap allowance-

1.2

(0.3

)

(0.4

)

Net Revenue98.3

%

99.1

%

97.9

%

97.6

%

Days of careHomecare1,342,841

1,426,191

4,008,215

4,192,681

Nursing home258,700

261,396

735,906

844,232

Respite5,331

4,566

15,509

15,416

Subtotal routine homecare and respite1,606,872

1,692,153

4,759,630

5,052,329

Inpatient27,962

27,017

82,129

84,907

Continuous care24,299

33,013

79,385

110,200

Total1,659,133

1,752,183

4,921,144

5,247,436

Number of days in relevant time period92

92

273

274

Average daily census ("ADC") (days)Homecare14,596

15,502

14,682

15,302

Nursing home2,812

2,841

2,696

3,081

Respite58

50

57

56

Subtotal routine homecare and respite17,466

18,393

17,435

18,439

Inpatient304

294

301

310

Continuous care264

358

291

402

Total18,034

19,045

18,027

19,151

Total Admissions17,598

17,943

52,573

53,368

Total Discharges17,686

18,205

52,747

51,281

Average length of stay (days)96.0

97.1

95.0

92.9

Median length of stay (days)13.0

14.0

13.0

14.0

ADC by major diagnosisCerebro36.4

%

35.1

%

36.7

%

35.7

%

Neurological22.7

22.1

22.5

21.7

Cancer12.0

12.5

12.1

12.6

Cardio15.5

16.1

15.5

15.9

Respiratory7.5

8.0

7.5

8.2

Other5.9

6.2

5.7

5.9

Total100.0

%

100.0

%

100.0

%

100.0

%

Admissions by major diagnosisCerebro20.3

%

21.4

%

21.1

%

21.2

%

Neurological12.1

13.2

12.2

13.0

Cancer27.0

27.4

26.9

27.8

Cardio14.1

13.6

14.4

14.5

Respiratory11.3

9.9

10.9

10.6

Other15.2

14.5

14.5

12.9

Total100.0

%

100.0

%

100.0

%

100.0

%

Estimated uncollectible accounts as a percent of revenues1.0

%

1.1

%

1.0

%

1.1

%

Accounts receivable --Days of revenue outstanding-excluding unapplied Medicare payments33.7

33.4

n.a.

n.a.

Days of revenue outstanding-including unapplied Medicare payments23.4

22.1

n.a.

n.a.

The "Footnotes to Financial Statements" are integral parts of this financial information.CHEMED CORPORATION AND SUBSIDIARY COMPANIESOPERATING STATISTICS FOR VITAS SEGMENT(unaudited) Three Months Ended September Nine Months Ended September 30, 30,

OPERATING STATISTICS 2021 2020 2021 2020

Net revenue ($000)(c)Homecare $ 268,137 $ 278,856 $ 796,817 $ 826,954

Inpatient 29,368 27,633 85,895 85,983

Continuous care 22,027 30,699 73,658 105,836

Other 3,225 2,910 9,241 8,175

Subtotal $ 322,757 $ 340,098 $ 965,611 $ 1,026,948

Room and board, net (2,130 ) (3,289 ) (7,451 ) (9,317 )

Contractual (3,119 ) (3,784 ) (9,428 ) (10,976 )allowancesMedicare cap (97 ) 4,072 (3,597 ) (4,178 )allowanceNet Revenue $ 317,411 $ 337,097 $ 945,135 $ 1,002,477

Net revenue as apercent of total before Medicare capallowanceHomecare 83.1 % 82.0 % 82.5 % 80.5 %

Inpatient 9.1 8.1 8.9 8.4

Continuous care 6.8 9.0 7.6 10.3

Other 1.0 0.9 1.0 0.8

Subtotal 100.0 100.0 100.0 100.0

Room and board, net (0.7 ) (1.0 ) (0.8 ) (0.9 )

Contractual (1.0 ) (1.1 ) (1.0 ) (1.1 )allowancesMedicare cap - 1.2 (0.3 ) (0.4 )allowanceNet Revenue 98.3 % 99.1 % 97.9 % 97.6 %

Days of care

Homecare 1,342,841 1,426,191 4,008,215 4,192,681

Nursing home 258,700 261,396 735,906 844,232

Respite 5,331 4,566 15,509 15,416

Subtotal routine 1,606,872 1,692,153 4,759,630 5,052,329 homecare and respiteInpatient 27,962 27,017 82,129 84,907

Continuous care 24,299 33,013 79,385 110,200

Total 1,659,133 1,752,183 4,921,144 5,247,436



Number of days in 92 92 273 274 relevant time periodAverage daily census ("ADC") (days)Homecare 14,596 15,502 14,682 15,302

Nursing home 2,812 2,841 2,696 3,081

Respite 58 50 57 56

Subtotal routine 17,466 18,393 17,435 18,439 homecare and respiteInpatient 304 294 301 310

Continuous care 264 358 291 402

Total 18,034 19,045 18,027 19,151

Total Admissions 17,598 17,943 52,573 53,368

Total Discharges 17,686 18,205 52,747 51,281

Average length of 96.0 97.1 95.0 92.9 stay (days)Median length of stay 13.0 14.0 13.0 14.0 (days)ADC by major diagnosisCerebro 36.4 % 35.1 % 36.7 % 35.7 %

Neurological 22.7 22.1 22.5 21.7

Cancer 12.0 12.5 12.1 12.6

Cardio 15.5 16.1 15.5 15.9

Respiratory 7.5 8.0 7.5 8.2

Other 5.9 6.2 5.7 5.9

Total 100.0 % 100.0 % 100.0 % 100.0 %

Admissions by major diagnosisCerebro 20.3 % 21.4 % 21.1 % 21.2 %

Neurological 12.1 13.2 12.2 13.0

Cancer 27.0 27.4 26.9 27.8

Cardio 14.1 13.6 14.4 14.5

Respiratory 11.3 9.9 10.9 10.6

Other 15.2 14.5 14.5 12.9

Total 100.0 % 100.0 % 100.0 % 100.0 %



Estimateduncollectible 1.0 % 1.1 % 1.0 % 1.1 %accounts as a percentof revenues

Accounts receivable --Days of revenueoutstanding-excluding 33.7 33.4 n.a. n.a.unapplied MedicarepaymentsDays of revenueoutstanding-including 23.4 22.1 n.a. n.a.unapplied Medicarepayments The "Footnotes to Financial Statements" are integral parts of this financialinformation.CHEMED CORPORATION AND SUBSIDIARY COMPANIESFOOTNOTES TO FINANCIAL STATEMENTSFOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 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 September 30, 2021VITASRoto-RooterCorporateConsolidatedStock option expense$

-

$

-

$

(3,998

)

$

(3,998

)

Direct costs related to COVID-19(2,501

)

(415

)

-

(2,916

)

Amortization of reacquired franchise agreements-

(2,352

)

-

(2,352

)

Long-term incentive compensation-

-

(1,942

)

(1,942

)

Other-

-

(218

)

(218

)

Pretax impact on earnings(2,501

)

(2,767

)

(6,158

)

(11,426

)

Excess tax benefits on stock compensation-

-

1,199

1,199

Income tax benefit on the above635

733

778

2,146

After-tax impact on earnings$

(1,866

)

$

(2,034

)

$

(4,181

)

$

(8,081

)

Nine Months Ended September 30, 2021VITASRoto-RooterCorporateConsolidatedDirect costs related to COVID-19$

(15,338

)

$

(1,551

)

$

(38

)

$

(16,927

)

Stock option expense-

-

(16,342

)

(16,342

)

Amortization of reacquired franchise agreements-

(7,056

)

-

(7,056

)

Long-term incentive compensation-

-

(5,508

)

(5,508

)

Facility relocation expenses(1,855

)

-

-

(1,855

)

Litigation settlements-

98

-

98

Other-

-

(218

)

(218

)

Pretax impact on earnings(17,193

)

(8,509

)

(22,106

)

(47,808

)

Excess tax benefits on stock compensation-

-

5,305

5,305

Income tax benefit on the above4,367

2,255

3,252

9,874

After-tax impact on earnings$

(12,826

)

$

(6,254

)

$

(13,549

)

$

(32,629

)

(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 September 30, 2020VITASRoto-RooterCorporateConsolidatedCARES Act grant$

(8,805

)

$

-

$

-

$

(8,805

)

Direct costs related to COVID-19(6,945

)

(1,321

)

-

(8,266

)

Stock option expense-

-

(3,182

)

(3,182

)

Litigation settlement-

(3,095

)

-

(3,095

)

Amortization of reacquired franchise agreements-

(2,352

)

-

(2,352

)

COVID-19 Medicare cap2,250

-

-

2,250

Long-term incentive compensation-

-

(1,774

)

(1,774

)

Medicare cap sequestration adjustment852

-

-

852

Pretax impact on earnings(12,648

)

(6,768

)

(4,956

)

(24,372

)

Excess tax benefits on stock compensation-

-

7,187

7,187

Income tax benefit on the above3,253

1,794

304

5,351

After-tax impact on earnings$

(9,395

)

$

(4,974

)

$

2,535

$

(11,834

)

Nine Months Ended September 30, 2020VITASRoto-RooterCorporateConsolidatedDirect costs related to COVID-19$

(32,184

)

$

(3,299

)

$

-

$

(35,483

)

CARES Act grant32,184

-

-

32,184

Stock option expense-

-

(13,296

)

(13,296

)

Amortization of reacquired franchise agreements-

(7,056

)

-

(7,056

)

Long-term incentive compensation-

-

(5,523

)

(5,523

)

Litigation settlement-

(3,095

)

-

(3,095

)

Medicare cap sequestration adjustment(619

)

-

-

(619

)

Pretax impact on earnings(619

)

(13,450

)

(18,819

)

(32,888

)

Excess tax benefits on stock compensation-

-

19,943

19,943

Income tax benefit on the above157

3,564

2,444

6,165

After-tax impact on earnings$

(462

)

$

(9,886

)

$

3,568

$

(6,780

)

(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/20211028006059/en/

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