Chemed Reports $66.3M Q1 Profit, Raises EPS Guidance to $24–$24.75
Chemed posted Q1 net income of $66.3 million and adjusted EPS of $5.65 on $657.5 million revenue, with Vitas revenue up 3.1% to $420.0 million and Roto-Rooter revenue of $237.5 million. The company repurchased 500,000 shares for $197.7 million, secured a new five-year $450 million revolving credit facility, and raised full-year EPS guidance to $24.00–$24.75.
1. Q1 Financial Results
Chemed earned net income of $66.3 million in Q1, generating GAAP diluted EPS of $4.84 and adjusted EPS of $5.65 on consolidated revenue of $657.5 million, reflecting a 1.6% year-over-year increase.
2. VITAS Healthcare Performance
The hospice segment delivered net patient revenue of $420.0 million, up 3.1% driven by a 2.2% rise in average daily census to 22,723 and a 6.9% increase in admissions. Adjusted EBITDA grew 0.6% to $70.8 million with a 16.8% margin, despite a 41-basis-point margin contraction.
3. Roto-Rooter Segment Performance
Roto-Rooter generated $237.5 million in Q1 revenue, down 0.9%, with residential revenue decreasing 1.5% and commercial revenue down 1.9%. Adjusted EBITDA fell 9.6% to $53.5 million with a 22.5% margin, and the company invested $20.6 million to acquire two franchise territories in San Francisco and Fort Worth.
4. Capital Management and Guidance
During the quarter, Chemed repurchased 500,000 shares for $197.7 million and entered a five-year $450 million revolving credit agreement with $313.3 million undrawn capacity. Full-year adjusted EPS guidance was increased to a range of $24.00–$24.75 per share.