Chemed Corp (CHE, Financial), which operates VITAS Healthcare Corporation and Roto-Rooter, reported its financial results for the third quarter ended September 30, 2023, on October 25, 2023. The company showed significant growth compared to the same period in the previous year.
VITAS Performance
VITAS net revenue was $334 million in the third quarter of 2023, an increase of 12.5% compared to the prior year period. This revenue increase is primarily due to a 9.4% increase in days-of-care and a geographically weighted average Medicare reimbursement rate increase of approximately 2.7%. Adjusted EBITDA for the quarter was $54.9 million, an increase of 53.4%.
Roto-Rooter Performance
Roto-Rooter generated quarterly revenue of $231 million in the third quarter of 2023, an increase of 0.4% compared to the prior-year quarter. However, Adjusted EBITDA in the third quarter of 2023 totaled $66.9 million, a decrease of 3.7%.
Financial Position
As of September 30, 2023, Chemed Corp (CHE, Financial) had total cash and cash equivalents of $173 million and no current or long-term debt. During the quarter, the company repurchased 28,457 shares of Chemed stock for $14.3 million.
2023 Guidance
Chemed Corp (CHE, Financial) increased its full-year guidance for 2023. The company now expects earnings per diluted share to be in the range of $19.82 to $20.02. This revised 2023 guidance compares to previous guidance, as recast to no longer exclude costs associated with the Retention Program, of $18.72 to $18.92.
Conference Call
Chemed will host a conference call and webcast at 10 a.m., ET, on Thursday, October 26, 2023, to discuss the company's quarterly results and to provide an update on its business.
Explore the complete 8-K earnings release (here) from Chemed Corp for further details.
