Q3 2024 Chemed Corp Earnings Call Transcript
Key Points
- VITAS Healthcare, a subsidiary of Chemed Corp (CHE), reported a 17.3% increase in net revenue for the third quarter of 2024 compared to the prior year.
- Admissions at VITAS totaled 16,775, marking a 6.3% improvement from the same period in 2023.
- The acquisition of Covenant Health positively impacted VITAS' performance, contributing $10 million to $11 million in revenue for the quarter.
- VITAS has successfully expanded its clinical workforce capacity for nine consecutive quarters, supporting sustained growth.
- Chemed Corp (CHE) is optimistic about VITAS' growth prospects, expecting above-average historical growth both organically and through acquisitions.
- Roto-Rooter, another subsidiary of Chemed Corp (CHE), experienced a 6.9% decline in quarterly revenue compared to the prior year.
- Residential revenue at Roto-Rooter decreased by 6.3%, and commercial revenue declined by 5.9% year-over-year.
- Roto-Rooter's call volume was down 11.7% compared to the prior year quarter, impacting revenue negatively.
- The transition to a new search engine marketing firm caused disruptions, contributing to the softness in Roto-Rooter's residential revenue.
- Chemed Corp (CHE) reduced its full-year 2024 earnings guidance due to continued softness in Roto-Rooter's performance.
Good day, and thank you for standing by. Welcome to the Chemed Corporation third-quarter 2024 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your first speaker today, Holley Schmidt, Chemed, Assistant Controller. Please go ahead.
Good morning. Our conference call this morning will review the financial results for the third quarter of 2024 ended September 30, 2024.
Before we begin, let me remind you that the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 apply to this conference call. During the course of this call, the company will make various remarks concerning management's expectations, predictions, plans and prospects that constitute forward-looking statements.
Actual results may differ materially from those projected by these forward-looking statements as a result of a variety of factors, including those identified in the company's news
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