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 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Service revenues and sales	$	532,256		$	502,199			1,059,616		$	1,017,997
Cost of services provided and goods sold		350,493			352,163			690,966			703,908
Selling, general and administrative expenses (aa)		93,838			84,513			185,437			155,096
Depreciation		13,612			11,659			25,327			23,047
Amortization		2,510			2,488			5,020			4,965
Other operating expense/(income)		104			(41,384	)		726			(41,142	)
Total costs and expenses		460,557			409,439			907,476			845,874
Income from operations		71,699			92,760			152,140			172,123
Interest expense		(379	)		(651	)		(760	)		(1,626	)
Other income/(expense)--net (bb)		3,785			7,514			7,387			(1,952	)
Income before income taxes		75,105			99,623			158,767			168,545
Income taxes		(18,583	)		(17,522	)		(36,845	)		(30,553	)
Net income	$	56,522		$	82,101		$	121,922		$	137,992
Earnings Per Share
Net income	$	3.57		$	5.16		$	7.66		$	8.65
Average number of shares outstanding		15,829			15,914			15,919			15,953
Diluted Earnings Per Share
Net income	$	3.51		$	5.01		$	7.52		$	8.39
Average number of shares outstanding		16,101			16,373			16,205			16,445

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
SG&A expenses before long-term incentive compensation and the impact of market value adjustments related to deferred compensation plans	$	88,510		$	75,176		$	175,178		$	153,511
Market value adjustments related to deferred compensation trusts		3,655			7,408			6,693			(2,164	)
Long-term incentive compensation		1,673			1,929			3,566			3,749
Total SG&A expenses	$	93,838		$	84,513		$	185,437		$	155,096

(bb) Other income/(expense)--net comprises (in thousands):
	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Market value adjustments related to deferred compensation trusts	$	3,655		$	7,408		$	6,693		$	(2,164	)
Interest income		138			116			230			225
Other		(8	)		(10	)		464			(13	)
Total other income/(expense)--net	$	3,785		$	7,514		$	7,387		$	(1,952	)




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

	June 30,
	2021			2020
Assets
Current assets
Cash 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 in trust		98,256			80,113
Properties and equipment, at cost less accumulated depreciation		192,653			183,017
Lease right of use asset		123,207			128,418
Identifiable intangible assets less accumulated amortization		113,137			122,791
Goodwill		578,650			578,491
Other assets		8,807			9,055
Total Assets	$	1,383,796		$	1,291,192
Liabilities
Current liabilities
Accounts 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' Equity
Capital 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 Activities
Net income	$	121,922		$	137,992
Adjustments to reconcile net income to net cash provided 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 business combinations:
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 current liabilities		(10,815	)		13,303
Change 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 Activities
Capital 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 Activities
Purchases 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 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 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 sold		247,519			102,974			-			350,493
Selling, general and administrative expenses		22,631			53,556			17,651			93,838
Depreciation		7,125			6,468			19			13,612
Amortization		18			2,492			-			2,510
Other operating expense		87			17			-			104
Total costs and expenses		277,380			165,507			17,670			460,557
Income/(loss) from operations		34,555			54,814			(17,670	)		71,699
Interest expense		(43	)		(89	)		(247	)		(379	)
Intercompany interest income/(expense)		4,486			1,649			(6,135	)		-
Other income—net		99			32			3,654			3,785
Income/(loss) before income taxes		39,097			56,406			(20,398	)		75,105
Income taxes		(9,385	)		(13,633	)		4,435			(18,583	)
Net income/(loss)	$	29,712		$	42,773		$	(15,963	)	$	56,522

2020 (b)
Service revenues and sales	$	327,465		$	174,734		$	-		$	502,199
Cost of services provided and goods sold		266,815			85,348			-			352,163
Selling, general and administrative expenses		21,072			44,231			19,210			84,513
Depreciation		5,556			6,069			34			11,659
Amortization		18			2,470			-			2,488
Other operating income		(40,826	)		(558	)		-			(41,384	)
Total costs and expenses		252,635			137,560			19,244			409,439
Income/(loss) from operations		74,830			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)—net		104			(10	)		7,420			7,514
Income/(loss) before income taxes		79,628			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

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




CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENTS OF INCOME
FOR THE SIX MONTHS ENDED JUNE 30, 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 sold		486,186			204,780			-			690,966
Selling, general and administrative expenses		44,721			106,878			33,838			185,437
Depreciation		12,462			12,821			44			25,327
Amortization		36			4,984			-			5,020
Other operating expense		590			136			-			726
Total costs and expenses		543,995			329,599			33,882			907,476
Income/(loss) from operations		83,728			102,294			(33,882	)		152,140
Interest expense		(85	)		(179	)		(496	)		(760	)
Intercompany interest income/(expense)		9,011			3,269			(12,280	)		-
Other income—net		632			63			6,692			7,387
Income/(loss) before income taxes		93,286			105,447			(39,966	)		158,767
Income taxes		(22,805	)		(25,497	)		11,457			(36,845	)
Net income/(loss)	$	70,481		$	79,950		$	(28,509	)	$	121,922

2020 (b)
Service revenues and sales	$	665,380		$	352,617		$	-		$	1,017,997
Cost of services provided and goods sold		526,244			177,664			-			703,908
Selling, general and administrative expenses		43,341			90,513			21,242			155,096
Depreciation		11,030			11,947			70			23,047
Amortization		36			4,929			-			4,965
Other operating expense		(40,712	)		(430	)		-			(41,142	)
Total costs and expenses		539,939			284,623			21,312			845,874
Income/(loss) from operations		125,441			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)—net		169			30			(2,151	)		(1,952	)
Income/(loss) before income taxes		134,645			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

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




CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING SUMMARIES OF EBITDA
FOR THE THREE MONTHS ENDED JUNE 30, 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 expense/(income)		(4,486	)		(1,649	)		6,135			-
Interest income		(106	)		(32	)		-			(138	)
Direct costs related to COVID-19		11,084			582			-			11,666
Stock option expense		-			-			6,239			6,239
Long-term incentive compensation		-			-			1,673			1,673
Litigation settlements		-			(98	)		-			(98	)
Adjusted EBITDA	$	52,775		$	64,258		$	(6,085	)	$	110,948

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 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-19		24,265			1,117			-			25,382
Stock option expense		-			-			5,068			5,068
COVID-19 related Medicare cap		2,250			-			-			2,250
Long-term incentive compensation		-			-			1,929			1,929
Medicare cap sequestration adjustment		796			-			-			796
Adjusted EBITDA	$	66,717		$	46,830		$	(4,806	)	$	108,741

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




CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING SUMMARIES OF EBITDA
FOR THE SIX MONTHS ENDED JUNE 30, 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 expense/(income)		(9,011	)		(3,269	)		12,280			-
Interest income		(167	)		(63	)		-			(230	)
Direct costs related to COVID-19		12,836			1,136			38			14,010
Stock option expense		-			-			12,345			12,345
Long-term incentive compensation		-			-			3,566			3,566
Litigation settlements		-			(98	)		-			(98	)
Adjusted EBITDA	$	109,527		$	121,137		$	(11,197	)	$	219,467
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 expense/(income)		(9,125	)		(2,771	)		11,896			-
Interest income		(181	)		(31	)		(13	)		(225	)
Direct costs related to COVID-19		25,238			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 cap		2,250			-			-			2,250
Medicare cap sequestration adjustment		1,472			-			-			1,472
Adjusted EBITDA	$	124,466		$	86,847		$	(9,543	)	$	201,770

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




CHEMED CORPORATION AND SUBSIDIARY COMPANIES
RECONCILIATION OF ADJUSTED NET INCOME
(in thousands, except per share data)(unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	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-19		11,666			25,382			14,010			27,216
Stock option expense		6,239			5,068			12,345			10,114
Amortization of reacquired franchise agreements		2,352			2,352			4,704			4,704
Long-term incentive compensation		1,673			1,929			3,566			3,749
Facility relocation expenses		1,855			-			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 Reported
Net income	$	3.51		$	5.01		$	7.52		$	8.39
Average number of shares outstanding		16,101			16,373			16,205			16,445

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

(1) The tax impact of pre-tax adjustments was calculated using the effective tax rate of the operating unit for which each adjustment is associated.

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




CHEMED CORPORATION AND SUBSIDIARY COMPANIES
OPERATING STATISTICS FOR VITAS SEGMENT
(unaudited)

		Three Months Ended June 30,					Six Months Ended June 30,
OPERATING STATISTICS		2021		2020			2021			2020
Net 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 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 allowance
Homecare		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 allowances		(1.0	)		(0.9	)		(1.0	)		(1.0	)
Medicare cap allowance		(0.6	)		(1.7	)		(0.6	)		(1.2	)
Net Revenue		97.6	%		96.6	%		97.6	%		96.9	%
Days of care
Homecare		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 homecare and respite		1,585,243			1,685,364			3,152,758			3,360,176
Inpatient		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 relevant time period		91			91			181			182
Average daily census ("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 homecare and respite		17,421			18,520			17,419			18,463
Inpatient		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 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 diagnosis
Cerebro		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 major diagnosis
Cerebro		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	%

Estimated uncollectible accounts as a percent of revenues		1.0	%		0.9	%		1.0	%		1.1	%

Accounts receivable --
Days of revenue outstanding-excluding unapplied Medicare payments		36.3			31.9			n.a.			n.a.
Days of revenue outstanding-including unapplied Medicare payments		21.0			26.7			n.a.			n.a.

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




CHEMED CORPORATION AND SUBSIDIARY COMPANIES
FOOTNOTES TO FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 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 above		3,287			751			1,203			5,241
	After-tax impact on earnings	$	(9,652	)	$	(2,085	)	$	(5,841	)	$	(17,578	)

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

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

(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 earnings		13,678			(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 earnings		12,029			(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

(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/

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