X
|
Quarterly Report Under Section 13 or 15 (d) of the Securities Exchange Act of 1934
For the Quarterly Period Ended June 30, 2011
|
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
Delaware
|
31-0791746
|
|
(State or other jurisdiction of incorporation or organization)
|
(IRS Employer Identification No.)
|
2600 Chemed Center, 255 E. Fifth Street, Cincinnati, Ohio
|
45202
|
|
(Address of principal executive offices)
|
(Zip code)
|
(513) 762-6900
(Registrant’s telephone number, including area code)
|
Yes
|
X
|
No
|
Yes
|
X
|
No
|
Large accelerated filer
|
X
|
Accelerated filer
|
Non-accelerated filer
|
Smaller reporting company
|
Yes
|
No
|
X
|
Class
|
Amount
|
Date
|
||
Capital Stock $1 Par Value
|
21,405,258 Shares
|
June 30, 2011
|
||
Page No.
|
||||
PART I. FINANCIAL INFORMATION:
|
||||
3 | ||||
4 | ||||
5 | ||||
6 | ||||
17 | ||||
31 | ||||
31 | ||||
PART II. OTHER INFORMATION
|
||||
31 | ||||
31 | ||||
32 | ||||
32 | ||||
32 | ||||
32 | ||||
33 |
PART I. FINANCIAL INFORMATION
|
|||||||||
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
|
|||||||||
(in thousands, except share and per share data)
|
|||||||||
June 30,
|
December 31,
|
||||||||
2011
|
2010
|
||||||||
ASSETS
|
|||||||||
Current assets
|
|||||||||
Cash and cash equivalents
|
$ | 50,941 | $ | 49,917 | |||||
Accounts receivable less allowances of $12,257 (2010 - $13,332)
|
118,281 | 112,999 | |||||||
Inventories
|
8,682 | 7,728 | |||||||
Current deferred income taxes
|
14,052 | 15,098 | |||||||
Prepaid income taxes
|
1,300 | 770 | |||||||
Prepaid expenses
|
10,344 | 10,285 | |||||||
Total current assets
|
203,600 | 196,797 | |||||||
Investments of deferred compensation plans
|
33,066 | 28,304 | |||||||
Properties and equipment, at cost, less accumulated depreciation of $142,247 (2010 - $132,696)
|
81,471 | 79,292 | |||||||
Identifiable intangible assets less accumulated amortization of $28,155 (2010 - $27,438)
|
56,358 | 56,410 | |||||||
Goodwill
|
460,793 | 458,343 | |||||||
Other assets
|
15,325 | 11,015 | |||||||
Total Assets
|
$ | 850,613 | $ | 830,161 | |||||
LIABILITIES
|
|||||||||
Current liabilities
|
|||||||||
Accounts payable
|
$ | 39,459 | $ | 55,829 | |||||
Income taxes
|
2,096 | 1,161 | |||||||
Accrued insurance
|
35,143 | 36,492 | |||||||
Accrued compensation
|
43,633 | 39,719 | |||||||
Other current liabilities
|
14,972 | 16,141 | |||||||
Total current liabilities
|
135,303 | 149,342 | |||||||
Deferred income taxes
|
24,053 | 25,085 | |||||||
Long-term debt
|
162,932 | 159,208 | |||||||
Deferred compensation liabilities
|
32,255 | 27,851 | |||||||
Other liabilities
|
6,736 | 6,626 | |||||||
Total Liabilities
|
361,279 | 368,112 | |||||||
STOCKHOLDERS' EQUITY
|
|||||||||
Capital stock - authorized 80,000,000 shares $1 par; issued 30,906,532 shares (2010 - 30,381,863 shares)
|
30,907 | 30,382 | |||||||
Paid-in capital
|
391,507 | 365,007 | |||||||
Retained earnings
|
505,736 | 473,316 | |||||||
Treasury stock - 9,600,834 shares (2010 - 9,103,185 shares), at cost
|
(440,809 | ) | (408,615 | ) | |||||
Deferred compensation payable in Company stock
|
1,993 | 1,959 | |||||||
Total Stockholders' Equity
|
489,334 | 462,049 | |||||||
Total Liabilities and Stockholders' Equity
|
$ | 850,613 | $ | 830,161 | |||||
See accompanying notes to unaudited financial statements.
|
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
|
|||||||||||||||||||
(in thousands, except per share data)
|
|||||||||||||||||||
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||||||
2011
|
2010
|
2011
|
2010
|
||||||||||||||||
Service revenues and sales
|
$ | 333,360 | $ | 314,995 | $ | 664,278 | $ | 623,808 | |||||||||||
Cost of services provided and goods sold (excluding depreciation)
|
239,597 | 223,702 | 477,055 | 442,839 | |||||||||||||||
Selling, general and administrative expenses
|
50,424 | 49,956 | 106,078 | 98,494 | |||||||||||||||
Depreciation
|
6,358 | 6,194 | 12,646 | 11,663 | |||||||||||||||
Amortization
|
1,139 | 1,287 | 2,109 | 2,511 | |||||||||||||||
Total costs and expenses
|
297,518 | 281,139 | 597,888 | 555,507 | |||||||||||||||
Income from operations
|
35,842 | 33,856 | 66,390 | 68,301 | |||||||||||||||
Interest expense
|
(3,461 | ) | (2,999 | ) | (6,705 | ) | (5,951 | ) | |||||||||||
Other income - net
|
714 | 10 | 2,816 | 196 | |||||||||||||||
Income before income taxes
|
33,095 | 30,867 | 62,501 | 62,546 | |||||||||||||||
Income taxes
|
(12,809 | ) | (12,012 | ) | (24,114 | ) | (24,333 | ) | |||||||||||
Net income
|
$ | 20,286 | $ | 18,855 | $ | 38,387 | $ | 38,213 | |||||||||||
Earnings Per Share
|
|||||||||||||||||||
Net income
|
$ | 0.96 | $ | 0.83 | $ | 1.82 | $ | 1.69 | |||||||||||
Average number of shares outstanding
|
21,115 | 22,644 | 21,067 | 22,608 | |||||||||||||||
Diluted Earnings Per Share
|
|||||||||||||||||||
Net income
|
$ | 0.94 | $ | 0.82 | $ | 1.78 | $ | 1.66 | |||||||||||
Average number of shares outstanding
|
21,637 | 23,080 | 21,586 | 23,012 | |||||||||||||||
Cash Dividends Per Share
|
$ | 0.14 | $ | 0.12 | $ | 0.28 | $ | 0.24 | |||||||||||
See accompanying notes to unaudited financial statements.
|
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
|
|||||||||
(in thousands)
|
|||||||||
Six Months Ended
|
|||||||||
June 30,
|
|||||||||
2011
|
2010
|
||||||||
Cash Flows from Operating Activities
|
|||||||||
Net income
|
$ | 38,387 | $ | 38,213 | |||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
|||||||||
Depreciation and amortization
|
14,755 | 14,174 | |||||||
Noncash long-term incentive compensation
|
2,595 | 1,580 | |||||||
Provision for uncollectible accounts receivable
|
4,365 | 4,863 | |||||||
Stock option expense
|
4,495 | 4,397 | |||||||
Amortization of discount on convertible notes
|
3,724 | 3,481 | |||||||
Provision for deferred income taxes
|
(18 | ) | (2,364 | ) | |||||
Changes in operating assets and liabilities, excluding amounts acquired in business combinations:
|
|||||||||
Increase in accounts receivable
|
(9,271 | ) | (53,169 | ) | |||||
Increase in inventories
|
(954 | ) | (435 | ) | |||||
Increase in prepaid expenses
|
(59 | ) | (35 | ) | |||||
Increase/(decrease) in accounts payable and other current liabilities
|
(6,603 | ) | 3,035 | ||||||
Increase in income taxes
|
3,738 | 6,902 | |||||||
Increase in other assets
|
(5,652 | ) | (1,935 | ) | |||||
Increase in other liabilities
|
4,514 | 2,938 | |||||||
Excess tax benefit on share-based compensation
|
(3,339 | ) | (1,802 | ) | |||||
Other sources
|
450 | 434 | |||||||
Net cash provided by operating activities
|
51,127 | 20,277 | |||||||
Cash Flows from Investing Activities
|
|||||||||
Capital expenditures
|
(14,960 | ) | (11,942 | ) | |||||
Business combinations, net of cash acquired
|
(3,689 | ) | (30 | ) | |||||
Other uses
|
(869 | ) | (197 | ) | |||||
Net cash used by investing activities
|
(19,518 | ) | (12,169 | ) | |||||
Cash Flows from Financing Activities
|
|||||||||
Purchases of treasury stock
|
(25,482 | ) | (10,149 | ) | |||||
Decrease in cash overdrafts payable
|
(7,814 | ) | (1,314 | ) | |||||
Proceeds from issuance of capital stock
|
7,698 | 3,475 | |||||||
Dividends paid
|
(5,967 | ) | (5,481 | ) | |||||
Debt issuance costs
|
(2,723 | ) | - | ||||||
Excess tax benefit on share-based compensation
|
3,339 | 1,802 | |||||||
Other sources
|
364 | 223 | |||||||
Net cash used by financing activities
|
(30,585 | ) | (11,444 | ) | |||||
Increase/(Decrease) in Cash and Cash Equivalents
|
1,024 | (3,336 | ) | ||||||
Cash and cash equivalents at beginning of year
|
49,917 | 112,416 | |||||||
Cash and cash equivalents at end of period
|
$ | 50,941 | $ | 109,080 | |||||
See accompanying notes to unaudited financial statements.
|
Three months ended
|
Six months ended
|
|||||||||||||
June 30,
|
June 30,
|
|||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||
$ | 1,763 | $ | 1,727 | $ | 3,522 | $ | 3,374 |
June 30,
|
|||||||||||
2011
|
2010
|
||||||||||
Beginning balance January 1,
|
$ | 1,371 | $ | 1,981 | |||||||
Reversal - 2011 measurement period
|
(743 | ) | - | ||||||||
Accrual - 2011 measurement period
|
299 | ||||||||||
Reversal - 2010 measurement period
|
- | (1,783 | ) | ||||||||
Other
|
(198 | ) | - | ||||||||
Ending balance June 30,
|
$ | 729 | $ | 198 |
Three months ended
|
Six months ended
|
|||||||||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||||||||
Service Revenues and Sales |
|
|
|
|||||||||||||||||||
VITAS
|
$ | 243,095 | $ | 226,638 | $ | 478,768 | $ | 449,578 | ||||||||||||||
Roto-Rooter
|
90,265 | 88,357 | 185,510 | 174,230 | ||||||||||||||||||
Total | $ | 333,360 | $ | 314,995 | $ | 664,278 | $ | 623,808 | ||||||||||||||
After-tax Earnings |
|
|||||||||||||||||||||
VITAS
|
$ | 18,589 | $ | 18,281 | $ | 36,714 | $ | 36,719 | ||||||||||||||
Roto-Rooter
|
9,092 | 8,860 | 17,602 | 16,673 | ||||||||||||||||||
Total | 27,681 | 27,141 | 54,316 | 53,392 | ||||||||||||||||||
Corporate
|
(7,395 | ) | (8,286 | ) | (15,929 | ) | (15,179 | ) | ||||||||||||||
Net income | $ | 20,286 | $ | 18,855 | $ | 38,387 | $ | 38,213 |
|
Earnings per share are computed using the weighted average number of shares of capital stock outstanding. Earnings and diluted earnings per share for 2011 and 2010 are computed as follows (in thousands, except per share data):
|
Net Income
|
|||||||||||||
For the Three Months Ended
June 30,
|
Income
|
Shares
|
Earnings per
Share
|
||||||||||
2011
|
|||||||||||||
Earnings
|
$ | 20,286 | 21,115 | $ | 0.96 | ||||||||
Dilutive stock options
|
- | 433 | |||||||||||
Nonvested stock awards
|
- | 89 | |||||||||||
Diluted earnings
|
$ | 20,286 | 21,637 | $ | 0.94 | ||||||||
2010
|
|||||||||||||
Earnings
|
$ | 18,855 | 22,644 | $ | 0.83 | ||||||||
Dilutive stock options
|
- | 348 | |||||||||||
Nonvested stock awards
|
- | 88 | |||||||||||
Diluted earnings
|
$ | 18,855 | 23,080 | $ | 0.82 |
Net Income
|
|||||||||||||
For the Six Months Ended
June 30,
|
Income
|
Shares
|
Earnings per
Share
|
||||||||||
2011
|
|||||||||||||
Earnings
|
$ | 38,387 | 21,067 | $ | 1.82 | ||||||||
Dilutive stock options
|
- | 433 | |||||||||||
Nonvested stock awards
|
- | 86 | |||||||||||
Diluted earnings
|
$ | 38,387 | 21,586 | $ | 1.78 | ||||||||
2010
|
|||||||||||||
Earnings
|
$ | 38,213 | 22,608 | $ | 1.69 | ||||||||
Dilutive stock options
|
- | 319 | |||||||||||
Nonvested stock awards
|
- | 85 | |||||||||||
Diluted earnings
|
$ | 38,213 | 23,012 | $ | 1.66 |
Shares
|
Total Treasury
|
Shares Due
|
Incremental
|
||||||||||||||||||||
Underlying 1.875%
|
Method
|
to the Company
|
Shares Issued/
|
||||||||||||||||||||
Share
|
Convertible
|
Warrant
|
Incremental
|
under Notes
|
Received by the Company
|
||||||||||||||||||
Price
|
Notes
|
Shares
|
Shares (a)
|
Hedges
|
upon Conversion (b)
|
||||||||||||||||||
$ | 80.73 | 23,877 | - | 23,877 | (25,542 | ) | (1,665 | ) | |||||||||||||||
$ | 90.73 | 279,119 | - | 279,119 | (298,594 | ) | (19,475 | ) | |||||||||||||||
$ | 100.73 | 483,684 | - | 483,684 | (517,430 | ) | (33,746 | ) | |||||||||||||||
$ | 110.73 | 651,299 | 119,575 | 770,874 | (696,741 | ) | 74,133 | ||||||||||||||||
$ | 120.73 | 791,148 | 316,987 | 1,108,135 | (846,347 | ) | 261,788 | ||||||||||||||||
$ | 130.73 | 909,602 | 484,198 | 1,393,800 | (973,065 | ) | 420,735 | ||||||||||||||||
a) Represents the number of incremental shares that must be included in the calculation of fully diluted shares under U.S. GAAP.
|
|||||||||||||||||||||||
b) Represents the number of incremental shares to be issued by the Company upon conversion of the 1.875% Convertible Notes, assuming concurrent settlement of the note hedges and warrants.
|
Description
|
Requirement
|
|||
Leverage Ratio (Consolidated Indebtedness/Consolidated Adj. EBITDA)
|
< 3.50 to 1.00
|
|||
Fixed Charge Coverage Ratio (Consolidated Free Cash Flow/Consolidated Fixed Charges)
|
> 1.50 to 1.00
|
|||
Annual Operating Lease Commitment
|
< $30.0 million
|
June 30, 2011
|
December 31, 2010
|
||||||||||
Principal amount of convertible debentures
|
$ | 186,956 | $ | 186,956 | |||||||
Unamortized debt discount
|
(24,024 | ) | (27,748 | ) | |||||||
Carrying amount of convertible debentures
|
$ | 162,932 | $ | 159,208 | |||||||
Additional paid in capital (net of tax)
|
$ | 31,310 | $ | 31,310 |
Three months ended
June 30,
|
Six months ended
June 30,
|
||||||||||||||||
2011
|
2010
|
2011
|
2010
|
||||||||||||||
Cash interest expense
|
$ | 1,288 | $ | 1,083 | $ | 2,440 | $ | 2,152 | |||||||||
Non-cash amortization of debt discount
|
1,878 | 1,755 | 3,724 | 3,481 | |||||||||||||
Amortization of debt costs
|
295 | 161 | 541 | 318 | |||||||||||||
Total interest expense
|
$ | 3,461 | $ | 2,999 | $ | 6,705 | $ | 5,951 |
Three months ended
June 30,
|
Six months ended
June 30,
|
||||||||||||||||||
2011
|
2010
|
2011
|
2010
|
||||||||||||||||
Market value gains/(losses) on assets held in deferred compensation trust
|
$ | 743 | $ | (83 | ) | $ | 2,807 | $ | 105 | ||||||||||
Gain /(loss) on disposal of property and equipment
|
32 | (58 | ) | 11 | (152 | ) | |||||||||||||
Interest income
|
62 | 150 | 123 | 225 | |||||||||||||||
Other - net
|
(123 | ) | 1 | (125 | ) | 18 | |||||||||||||
Other income - net
|
$ | 714 | $ | 10 | $ | 2,816 | $ | 196 |
Three months ended
June 30,
|
Six months ended
June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Revenues
|
$ | 6,528 | $ | 5,562 | $ | 13,039 | $ | 11,217 | ||||||||
Pretax profits
|
3,402 | 2,721 | 6,389 | 5,104 |
Three months ended
|
Six months ended
|
|||||||||||||
June 30,
|
June 30,
|
|||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||
$ | 2,871 | $ | 2,200 | $ | 6,954 | $ | 4,746 |
Fair Value Measure
|
||||||||||||||||
Carrying Value
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
Significant Other Observable Inputs (Level 2)
|
Significant Unobservable Inputs (Level 3)
|
|||||||||||||
Mutual fund investments of deferred compensation plans held in trust
|
$ | 33,066 | $ | 33,066 | $ | - | $ | - | ||||||||
Long-term debt
|
162,932 | 195,593 | - | - |
Three months ended
June 30,
|
Six months ended
June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Shares repurchased
|
- | 114,900 | 341,513 | 146,275 | ||||||||||||
Weighted average price per share
|
$ | - | $ | 54.99 | $ | 63.79 | $ | 53.32 |
Working capital
|
$ | 382 | ||
Identifiable intangible assets
|
664 | |||
Goodwill
|
2,345 | |||
Other assets and liabilities - net
|
298 | |||
$ | 3,689 |
June 30, 2011
|
Guarantor
|
Non-Guarantor
|
Consolidating
|
|||||||||||||||||||||
|
Parent
|
Subsidiaries
|
Subsidiaries
|
Adjustments
|
Consolidated
|
|||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Cash and cash equivalents
|
$ | 53,191 | $ | (8,582 | ) | $ | 6,332 | $ | - | $ | 50,941 | |||||||||||||
Accounts receivable, less allowances
|
904 | 116,492 | 885 | - | 118,281 | |||||||||||||||||||
Intercompany receivables
|
- | 190,014 | - | (190,014 | ) | - | ||||||||||||||||||
Inventories
|
- | 7,889 | 793 | - | 8,682 | |||||||||||||||||||
Current deferred income taxes
|
(1,291 | ) | 15,202 | 141 | - | 14,052 | ||||||||||||||||||
Prepaid income taxes
|
4,081 | (2,442 | ) | (339 | ) | - | 1,300 | |||||||||||||||||
Prepaid expenses
|
903 | 9,250 | 191 | - | 10,344 | |||||||||||||||||||
Total current assets
|
57,788 | 327,823 | 8,003 | (190,014 | ) | 203,600 | ||||||||||||||||||
Investments of deferred compensation plans
|
- | - | 33,066 | - | 33,066 | |||||||||||||||||||
Properties and equipment, at cost, less accumulated depreciation
|
12,043 | 66,916 | 2,512 | - | 81,471 | |||||||||||||||||||
Identifiable intangible assets less accumulated amortization
|
- | 56,358 | - | - | 56,358 | |||||||||||||||||||
Goodwill
|
- | 456,208 | 4,585 | - | 460,793 | |||||||||||||||||||
Other assets
|
8,262 | 4,433 | 2,630 | - | 15,325 | |||||||||||||||||||
Investments in subsidiaries
|
752,252 | 20,712 | - | (772,964 | ) | - | ||||||||||||||||||
Total assets
|
$ | 830,345 | $ | 932,450 | $ | 50,796 | $ | (962,978 | ) | $ | 850,613 | |||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||||||||||||||||||
Accounts payable
|
$ | (6 | ) | $ | 38,994 | $ | 471 | $ | - | $ | 39,459 | |||||||||||||
Intercompany payables
|
182,383 | - | 7,631 | (190,014 | ) | - | ||||||||||||||||||
Income taxes
|
504 | 2,354 | (762 | ) | - | 2,096 | ||||||||||||||||||
Accrued insurance
|
228 | 34,915 | - | - | 35,143 | |||||||||||||||||||
Accrued compensation
|
1,996 | 41,098 | 539 | - | 43,633 | |||||||||||||||||||
Other current liabilities
|
1,923 | 12,918 | 131 | - | 14,972 | |||||||||||||||||||
Total current liabilities
|
187,028 | 130,279 | 8,010 | (190,014 | ) | 135,303 | ||||||||||||||||||
Deferred income taxes
|
(11,774 | ) | 45,482 | (9,655 | ) | - | 24,053 | |||||||||||||||||
Long-term debt
|
162,932 | - | - | - | 162,932 | |||||||||||||||||||
Deferred compensation liabilities
|
- | - | 32,255 | - | 32,255 | |||||||||||||||||||
Other liabilities
|
2,825 | 3,328 | 583 | - | 6,736 | |||||||||||||||||||
Stockholders' equity
|
489,334 | 753,361 | 19,603 | (772,964 | ) | 489,334 | ||||||||||||||||||
Total liabilities and stockholders' equity
|
$ | 830,345 | $ | 932,450 | $ | 50,796 | $ | (962,978 | ) | $ | 850,613 |
December 31, 2010
|
Guarantor
|
Non-Guarantor
|
Consolidating
|
|||||||||||||||||||||
|
Parent
|
Subsidiaries
|
Subsidiaries
|
Adjustments
|
Consolidated
|
|||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Cash and cash equivalents
|
$ | 45,324 | $ | (1,571 | ) | $ | 6,164 | $ | - | $ | 49,917 | |||||||||||||
Accounts receivable, less allowances
|
802 | 111,716 | 481 | - | 112,999 | |||||||||||||||||||
Intercompany receivables
|
- | 172,426 | - | (172,426 | ) | - | ||||||||||||||||||
Inventories
|
- | 7,191 | 537 | - | 7,728 | |||||||||||||||||||
Current deferred income taxes
|
(688 | ) | 15,666 | 120 | - | 15,098 | ||||||||||||||||||
Prepaid income taxes
|
2,787 | (1,809 | ) | (208 | ) | - | 770 | |||||||||||||||||
Prepaid expenses
|
782 | 9,244 | 259 | - | 10,285 | |||||||||||||||||||
Total current assets
|
49,007 | 312,863 | 7,353 | (172,426 | ) | 196,797 | ||||||||||||||||||
Investments of deferred compensation plans
|
- | - | 28,304 | - | 28,304 | |||||||||||||||||||
Properties and equipment, at cost, less accumulated depreciation
|
12,513 | 64,743 | 2,036 | - | 79,292 | |||||||||||||||||||
Identifiable intangible assets less accumulated amortization
|
- | 56,410 | - | - | 56,410 | |||||||||||||||||||
Goodwill
|
- | 453,864 | 4,479 | - | 458,343 | |||||||||||||||||||
Other assets
|
6,049 | 2,791 | 2,175 | - | 11,015 | |||||||||||||||||||
Investments in subsidiaries
|
716,815 | 18,696 | - | (735,511 | ) | - | ||||||||||||||||||
Total assets
|
$ | 784,384 | $ | 909,367 | $ | 44,347 | $ | (907,937 | ) | $ | 830,161 | |||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||||||||||||||||||
Accounts payable
|
$ | 4,924 | $ | 50,457 | $ | 448 | $ | - | $ | 55,829 | ||||||||||||||
Intercompany payables
|
167,067 | - | 5,359 | (172,426 | ) | - | ||||||||||||||||||
Income taxes
|
(7,190 | ) | 8,745 | (394 | ) | - | 1,161 | |||||||||||||||||
Accrued insurance
|
906 | 35,586 | - | - | 36,492 | |||||||||||||||||||
Accrued compensation
|
4,235 | 35,016 | 468 | - | 39,719 | |||||||||||||||||||
Other current liabilities
|
1,549 | 13,447 | 1,145 | - | 16,141 | |||||||||||||||||||
Total current liabilities
|
171,491 | 143,251 | 7,026 | (172,426 | ) | 149,342 | ||||||||||||||||||
Deferred income taxes
|
(11,356 | ) | 45,168 | (8,727 | ) | - | 25,085 | |||||||||||||||||
Long-term debt
|
159,208 | - | - | - | 159,208 | |||||||||||||||||||
Deferred compensation liabilities
|
- | - | 27,851 | - | 27,851 | |||||||||||||||||||
Other liabilities
|
2,992 | 3,123 | 511 | - | 6,626 | |||||||||||||||||||
Stockholders' equity
|
462,049 | 717,825 | 17,686 | (735,511 | ) | 462,049 | ||||||||||||||||||
Total liabilities and stockholders' equity
|
$ | 784,384 | $ | 909,367 | $ | 44,347 | $ | (907,937 | ) | $ | 830,161 |
For the three months ended June 30, 2011
|
Guarantor
|
Non-Guarantor
|
Consolidating
|
|||||||||||||||||||||
|
Parent
|
Subsidiaries
|
Subsidiaries
|
Adjustments
|
Consolidated
|
|||||||||||||||||||
Continuing Operations
|
||||||||||||||||||||||||
Service revenues and sales
|
$ | - | $ | 326,406 | $ | 6,954 | $ | - | $ | 333,360 | ||||||||||||||
Cost of services provided and goods sold
|
- | 235,855 | 3,742 | - | 239,597 | |||||||||||||||||||
Selling, general and administrative expenses
|
5,574 | 42,441 | 2,409 | - | 50,424 | |||||||||||||||||||
Depreciation
|
237 | 5,919 | 202 | - | 6,358 | |||||||||||||||||||
Amortization
|
465 | 674 | - | - | 1,139 | |||||||||||||||||||
Total costs and expenses
|
6,276 | 284,889 | 6,353 | - | 297,518 | |||||||||||||||||||
Income/ (loss) from operations
|
(6,276 | ) | 41,517 | 601 | - | 35,842 | ||||||||||||||||||
Interest expense
|
(3,321 | ) | (140 | ) | - | - | (3,461 | ) | ||||||||||||||||
Other (expense)/income - net
|
3,862 | (3,888 | ) | 740 | - | 714 | ||||||||||||||||||
Income/ (loss) before income taxes
|
(5,735 | ) | 37,489 | 1,341 | - | 33,095 | ||||||||||||||||||
Income tax (provision)/ benefit
|
1,783 | (14,083 | ) | (509 | ) | - | (12,809 | ) | ||||||||||||||||
Equity in net income of subsidiaries
|
24,238 | 875 | - | (25,113 | ) | - | ||||||||||||||||||
Net income
|
$ | 20,286 | $ | 24,281 | $ | 832 | $ | (25,113 | ) | $ | 20,286 |
For the three months ended June 30, 2010
|
Guarantor
|
Non-Guarantor
|
Consolidating
|
|||||||||||||||||||||
|
Parent
|
Subsidiaries
|
Subsidiaries
|
Adjustments
|
Consolidated
|
|||||||||||||||||||
Continuing Operations
|
||||||||||||||||||||||||
Service revenues and sales
|
$ | - | $ | 308,825 | $ | 6,170 | $ | - | $ | 314,995 | ||||||||||||||
Cost of services provided and goods sold
|
- | 220,455 | 3,247 | - | 223,702 | |||||||||||||||||||
Selling, general and administrative expenses
|
6,508 | 42,302 | 1,146 | - | 49,956 | |||||||||||||||||||
Depreciation
|
244 | 5,749 | 201 | - | 6,194 | |||||||||||||||||||
Amortization
|
366 | 921 | - | - | 1,287 | |||||||||||||||||||
Total costs and expenses
|
7,118 | 269,427 | 4,594 | - | 281,139 | |||||||||||||||||||
Income/ (loss) from operations
|
(7,118 | ) | 39,398 | 1,576 | - | 33,856 | ||||||||||||||||||
Interest expense
|
(2,888 | ) | (111 | ) | - | - | (2,999 | ) | ||||||||||||||||
Other (expense)/income - net
|
3,670 | (3,562 | ) | (98 | ) | - | 10 | |||||||||||||||||
Income/ (loss) before income taxes
|
(6,336 | ) | 35,725 | 1,478 | - | 30,867 | ||||||||||||||||||
Income tax (provision)/ benefit
|
2,150 | (13,567 | ) | (595 | ) | - | (12,012 | ) | ||||||||||||||||
Equity in net income of subsidiaries
|
23,041 | 994 | - | (24,035 | ) | - | ||||||||||||||||||
Net income
|
$ | 18,855 | $ | 23,152 | $ | 883 | $ | (24,035 | ) | $ | 18,855 |
For the six months ended June 30, 2011
|
Guarantor
|
Non-Guarantor
|
Consolidating
|
|||||||||||||||||||||
|
Parent
|
Subsidiaries
|
Subsidiaries
|
Adjustments
|
Consolidated
|
|||||||||||||||||||
Continuing Operations
|
||||||||||||||||||||||||
Service revenues and sales
|
$ | - | $ | 650,563 | $ | 13,715 | $ | - | $ | 664,278 | ||||||||||||||
Cost of services provided and goods sold
|
- | 469,731 | 7,324 | - | 477,055 | |||||||||||||||||||
Selling, general and administrative expenses
|
12,258 | 88,022 | 5,798 | - | 106,078 | |||||||||||||||||||
Depreciation
|
476 | 11,781 | 389 | - | 12,646 | |||||||||||||||||||
Amortization
|
820 | 1,289 | - | - | 2,109 | |||||||||||||||||||
Total costs and expenses
|
13,554 | 570,823 | 13,511 | - | 597,888 | |||||||||||||||||||
Income/ (loss) from operations
|
(13,554 | ) | 79,740 | 204 | - | 66,390 | ||||||||||||||||||
Interest expense
|
(6,453 | ) | (252 | ) | - | - | (6,705 | ) | ||||||||||||||||
Other (expense)/income - net
|
7,632 | (7,617 | ) | 2,801 | - | 2,816 | ||||||||||||||||||
Income/ (loss) before income taxes
|
(12,375 | ) | 71,871 | 3,005 | - | 62,501 | ||||||||||||||||||
Income tax (provision)/ benefit
|
4,186 | (27,135 | ) | (1,165 | ) | - | (24,114 | ) | ||||||||||||||||
Equity in net income of subsidiaries
|
46,576 | 1,908 | - | (48,484 | ) | - | ||||||||||||||||||
Net income
|
$ | 38,387 | $ | 46,644 | $ | 1,840 | $ | (48,484 | ) | $ | 38,387 |
For the six months ended June 30, 2010
|
Guarantor
|
Non-Guarantor
|
Consolidating
|
|||||||||||||||||||||
|
Parent
|
Subsidiaries
|
Subsidiaries
|
Adjustments
|
Consolidated
|
|||||||||||||||||||
Continuing Operations
|
||||||||||||||||||||||||
Service revenues and sales
|
$ | - | $ | 611,827 | $ | 11,981 | $ | - | $ | 623,808 | ||||||||||||||
Cost of services provided and goods sold
|
- | 436,655 | 6,184 | - | 442,839 | |||||||||||||||||||
Selling, general and administrative expenses
|
12,206 | 83,619 | 2,669 | - | 98,494 | |||||||||||||||||||
Depreciation
|
380 | 10,882 | 401 | - | 11,663 | |||||||||||||||||||
Amortization
|
696 | 1,815 | - | - | 2,511 | |||||||||||||||||||
Total costs and expenses
|
13,282 | 532,971 | 9,254 | - | 555,507 | |||||||||||||||||||
Income/ (loss) from operations
|
(13,282 | ) | 78,856 | 2,727 | - | 68,301 | ||||||||||||||||||
Interest expense
|
(5,739 | ) | (212 | ) | - | - | (5,951 | ) | ||||||||||||||||
Other (expense)/income - net
|
7,291 | (7,199 | ) | 104 | - | 196 | ||||||||||||||||||
Income/ (loss) before income taxes
|
(11,730 | ) | 71,445 | 2,831 | - | 62,546 | ||||||||||||||||||
Income tax (provision)/ benefit
|
3,894 | (27,106 | ) | (1,121 | ) | - | (24,333 | ) | ||||||||||||||||
Equity in net income of subsidiaries
|
46,049 | 1,820 | - | (47,869 | ) | - | ||||||||||||||||||
Net income
|
$ | 38,213 | $ | 46,159 | $ | 1,710 | $ | (47,869 | ) | $ | 38,213 |
For the six months ended June 30, 2011
|
Guarantor
|
Non-Guarantor
|
|||||||||||||||||
Parent
|
Subsidiaries
|
Subsidiaries
|
Consolidated
|
||||||||||||||||
Cash Flow from Operating Activities:
|
|||||||||||||||||||
Net cash provided/(used) by operating activities
|
$ | 3,594 | $ | 48,849 | $ | (1,316 | ) | $ | 51,127 | ||||||||||
Cash Flow from Investing Activities:
|
|||||||||||||||||||
Capital expenditures
|
(5 | ) | (14,085 | ) | (870 | ) | (14,960 | ) | |||||||||||
Business combinations, net of cash acquired
|
- | (3,689 | ) | - | (3,689 | ) | |||||||||||||
Other sources/(uses) - net
|
(103 | ) | (771 | ) | 5 | (869 | ) | ||||||||||||
Net cash used by investing activities
|
(108 | ) | (18,545 | ) | (865 | ) | (19,518 | ) | |||||||||||
Cash Flow from Financing Activities:
|
|||||||||||||||||||
Change in cash overdrafts payable
|
698 | (8,512 | ) | - | (7,814 | ) | |||||||||||||
Change in intercompany accounts
|
26,733 | (28,804 | ) | 2,071 | - | ||||||||||||||
Dividends paid to shareholders
|
(5,967 | ) | - | - | (5,967 | ) | |||||||||||||
Purchases of treasury stock
|
(25,438 | ) | - | (44 | ) | (25,482 | ) | ||||||||||||
Proceeds from exercise of stock options
|
7,698 | - | - | 7,698 | |||||||||||||||
Realized excess tax benefit on share based compensation
|
3,339 | - | - | 3,339 | |||||||||||||||
Debt issuance cost
|
(2,723 | ) | - | - | (2,723 | ) | |||||||||||||
Other sources - net
|
41 | 1 | 322 | 364 | |||||||||||||||
Net cash provided/(used) by financing activities
|
4,381 | (37,315 | ) | 2,349 | (30,585 | ) | |||||||||||||
Net increase/(decrease) in cash and cash equivalents
|
7,867 | (7,011 | ) | 168 | 1,024 | ||||||||||||||
Cash and cash equivalents at beginning of year
|
45,324 | (1,571 | ) | 6,164 | 49,917 | ||||||||||||||
Cash and cash equivalents at end of period
|
$ | 53,191 | $ | (8,582 | ) | $ | 6,332 | $ | 50,941 |
For the six months ended June 30, 2010
|
Guarantor
|
Non-Guarantor
|
|||||||||||||||||
Parent
|
Subsidiaries
|
Subsidiaries
|
Consolidated
|
||||||||||||||||
Cash Flow from Operating Activities:
|
|||||||||||||||||||
Net cash provided/(used) by operating activities
|
$ | (3,737 | ) | $ | 24,585 | $ | (571 | ) | $ | 20,277 | |||||||||
Cash Flow from Investing Activities:
|
|||||||||||||||||||
Capital expenditures
|
(10 | ) | (11,454 | ) | (478 | ) | (11,942 | ) | |||||||||||
Business combinations, net of cash acquired
|
- | (30 | ) | - | (30 | ) | |||||||||||||
Other uses - net
|
(89 | ) | (88 | ) | (20 | ) | (197 | ) | |||||||||||
Net cash used by investing activities
|
(99 | ) | (11,572 | ) | (498 | ) | (12,169 | ) | |||||||||||
Cash Flow from Financing Activities:
|
|||||||||||||||||||
Change in cash overdrafts payable
|
1,338 | (2,652 | ) | - | (1,314 | ) | |||||||||||||
Change in intercompany accounts
|
9,830 | (11,478 | ) | 1,648 | - | ||||||||||||||
Dividends paid to shareholders
|
(5,481 | ) | - | - | (5,481 | ) | |||||||||||||
Purchases of treasury stock
|
(10,149 | ) | - | - | (10,149 | ) | |||||||||||||
Proceeds from exercise of stock options
|
3,475 | - | - | 3,475 | |||||||||||||||
Realized excess tax benefit on share based compensation
|
702 | 1,100 | - | 1,802 | |||||||||||||||
Other sources - net
|
- | - | 223 | 223 | |||||||||||||||
Net cash provided/ (used) by financing activities
|
(285 | ) | (13,030 | ) | 1,871 | (11,444 | ) | ||||||||||||
Net increase/(decrease) in cash and cash equivalents
|
(4,121 | ) | (17 | ) | 802 | (3,336 | ) | ||||||||||||
Cash and cash equivalents at beginning of year
|
109,331 | (1,221 | ) | 4,306 | 112,416 | ||||||||||||||
Cash and cash equivalents at end of period
|
$ | 105,210 | $ | (1,238 | ) | $ | 5,108 | $ | 109,080 |
Three months ended June 30,
|
Six months ended June 30,
|
||||||||||||||||
2011
|
2010
|
2011
|
2010
|
||||||||||||||
Service revenues and sales
|
$ | 333,360 | $ | 314,995 | $ | 664,278 | $ | 623,808 | |||||||||
Net income
|
$ | 20,286 | $ | 18,855 | $ | 38,387 | $ | 38,213 | |||||||||
Diluted EPS
|
$ | 0.94 | $ | 0.82 | $ | 1.78 | $ | 1.66 | |||||||||
Adjusted EBITDA
|
$ | 46,657 | $ | 44,886 | $ | 92,275 | $ | 87,957 | |||||||||
Adjusted EBITDA as a % of revenue
|
14.0 | % | 14.2 | % | 13.9 | % | 14.1 | % |
•
|
A $5.3 million increase in accounts receivable primarily at VITAS, related to timing of receipts from Medicare.
|
•
|
A $16.4 million decrease in accounts payable related to timing of payments and a reduction in cash overdrafts payable.
|
•
|
A $3.9 million increase in accrued compensation related to timing of payroll and bonus payments.
|
Increase/(Decrease)
|
||||||||
Amount
|
Percent
|
|||||||
VITAS
|
||||||||
Routine homecare
|
$ | 13,555 | 8.3 | |||||
Continuous care
|
2,111 | 5.7 | ||||||
General inpatient
|
1,194 | 4.6 | ||||||
Medicare cap
|
(403 | ) | -1151.4 | |||||
Roto-Rooter
|
||||||||
Plumbing
|
852 | 2.0 | ||||||
Drain cleaning
|
425 | 1.3 | ||||||
Other
|
631 | 5.0 | ||||||
Total
|
$ | 18,365 | 5.8 |
|
Three months ended
June 30,
|
||||||||
2011
|
2010
|
||||||||
SG&A expenses before long-term incentive
|
|||||||||
compensation and the impact of market gains and
|
|||||||||
losses of deferred compensation plans
|
$ | 49,681 | $ | 48,240 | |||||
Long-term incentive compensation
|
- | 1,799 | |||||||
Impact of market value gains on liabilities held in
|
|||||||||
deferred compensation trusts
|
743 | (83 | ) | ||||||
Total SG&A expenses
|
$ | 50,424 | $ | 49,956 |
Three months ended
June 30,
|
||||||||||
2011
|
2010
|
|||||||||
Market value gains/(losses) on assets held in deferred
|
||||||||||
compensation trusts
|
$ | 743 | $ | (83 | ) | |||||
Interest income
|
62 | 150 | ||||||||
Gain/(loss) on disposal of property and equipment
|
32 | (58 | ) | |||||||
Other
|
(123 | ) | 1 | |||||||
Total other income
|
$ | 714 | $ | 10 |
Three months ended
June 30,
|
|||||||||
2011
|
2010
|
||||||||
VITAS
|
|||||||||
Legal expenses of OIG investigation
|
$ | (301 | ) | $ | (74 | ) | |||
Acquisition expenses
|
(31 | ) | - | ||||||
Roto-Rooter
|
|||||||||
Expenses of class action litigation
|
(113 | ) | (63 | ) | |||||
Acquisition expenses
|
8 | - | |||||||
Corporate
|
|||||||||
Stock option expense
|
(1,620 | ) | (1,484 | ) | |||||
Noncash impact of change in accounting for convertible debt
|
(1,155 | ) | (1,068 | ) | |||||
Long-term incentive compensation
|
- | (1,124 | ) | ||||||
Total
|
$ | (3,212 | ) | $ | (3,813 | ) |
Increase/(Decrease)
|
||||||||
Amount
|
Percent
|
|||||||
VITAS
|
$ | 308 | 1.7 | |||||
Roto-Rooter
|
232 | 2.6 | ||||||
Corporate
|
891 | 10.8 | ||||||
$ | 1,431 | 7.6 |
Increase/(Decrease)
|
||||||||
Amount
|
Percent
|
|||||||
VITAS
|
||||||||
Routine homecare
|
$ | 24,981 | 7.8 | |||||
Continuous care
|
3,062 | 4.1 | ||||||
General inpatient
|
2,288 | 4.4 | ||||||
Medicare cap
|
(1,141 | ) | -64.0 | |||||
Roto-Rooter
|
||||||||
Plumbing
|
6,979 | 8.6 | ||||||
Drain cleaning
|
2,518 | 3.7 | ||||||
Other
|
1,783 | 7.2 | ||||||
Total
|
$ | 40,470 | 6.5 |
|
Six months ended
June 30,
|
|||||||
2011
|
2010
|
|||||||
SG&A expenses before long-term incentive
|
||||||||
compensation and the impact of market gains and
|
||||||||
losses of deferred compensation plans
|
$ | 100,259 | $ | 96,590 | ||||
Long-term incentive compensation
|
3,012 | 1,799 | ||||||
Impact of market value gains on liabilities held in
|
||||||||
deferred compensation trusts
|
2,807 | 105 | ||||||
Total SG&A expenses
|
$ | 106,078 | $ | 98,494 |
Six months ended
June 30,
|
|||||||||
2011
|
2010
|
||||||||
Market value gains on assets held in deferred
|
|||||||||
compensation trusts
|
$ | 2,807 | $ | 105 | |||||
Interest income
|
123 | 225 | |||||||
Gain/(loss) on disposal of property and equipment
|
11 | (152 | ) | ||||||
Other
|
(125 | ) | 18 | ||||||
Total other income
|
$ | 2,816 | $ | 196 |
Six months ended
June 30,
|
|||||||||
2011
|
2010
|
||||||||
VITAS
|
|||||||||
Legal expenses of OIG investigation
|
$ | (618 | ) | $ | (173 | ) | |||
Acquisition expenses
|
(71 | ) | - | ||||||
Roto-Rooter
|
|||||||||
Expenses of class action litigation
|
(414 | ) | (63 | ) | |||||
Acquisition expenses
|
4 | - | |||||||
Corporate
|
|||||||||
Stock option expense
|
(2,843 | ) | (2,782 | ) | |||||
Noncash impact of change in accounting for convertible debt
|
(2,287 | ) | (2,115 | ) | |||||
Long-term incentive compensation
|
(1,880 | ) | (1,124 | ) | |||||
Total
|
$ | (8,109 | ) | $ | (6,257 | ) |
Increase/(Decrease)
|
|||||||||
Amount
|
Percent
|
||||||||
VITAS
|
$ | (5 | ) | 0.0 | |||||
Roto-Rooter
|
929 | 5.6 | |||||||
Corporate
|
(750 | ) | -4.9 | ||||||
$ | 174 | 0.5 |
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
|
||||||||||||||||
CONSOLIDATING STATEMENT OF INCOME
|
||||||||||||||||
FOR THE THREE MONTHS ENDED JUNE 30, 2011
|
||||||||||||||||
(in thousands)(unaudited)
|
||||||||||||||||
VITAS
|
Roto-Rooter
|
Corporate
|
Chemed
Consolidated
|
|||||||||||||
2011 (a)
|
||||||||||||||||
Service revenues and sales
|
$ | 243,095 | $ | 90,265 | $ | - | $ | 333,360 | ||||||||
Cost of services provided and goods sold
|
189,940 | 49,657 | - | 239,597 | ||||||||||||
Selling, general and administrative expenses
|
19,735 | 24,384 | 6,305 | 50,424 | ||||||||||||
Depreciation
|
4,199 | 2,025 | 134 | 6,358 | ||||||||||||
Amortization
|
520 | 155 | 464 | 1,139 | ||||||||||||
Total costs and expenses
|
214,394 | 76,221 | 6,903 | 297,518 | ||||||||||||
Income/(loss) from operations
|
28,701 | 14,044 | (6,903 | ) | 35,842 | |||||||||||
Interest expense
|
(62 | ) | (77 | ) | (3,322 | ) | (3,461 | ) | ||||||||
Intercompany interest income/(expense)
|
1,215 | 652 | (1,867 | ) | - | |||||||||||
Other income/(expense) - net
|
(90 | ) | 15 | 789 | 714 | |||||||||||
Income/(expense) before income taxes
|
29,764 | 14,634 | (11,303 | ) | 33,095 | |||||||||||
Income taxes
|
(11,175 | ) | (5,542 | ) | 3,908 | (12,809 | ) | |||||||||
Net income/(loss)
|
$ | 18,589 | $ | 9,092 | $ | (7,395 | ) | $ | 20,286 | |||||||
(a) The following amounts are included in net income (in thousands):
|
||||||||||||||||
VITAS
|
Roto-Rooter
|
Corporate
|
Chemed
Consolidated |
|||||||||||||
Pretax benefit/(cost):
|
||||||||||||||||
Stock option expense
|
$ | - | $ | - | $ | (2,562 | ) | $ | (2,562 | ) | ||||||
Noncash impact of accounting for convertible debt
|
- | - | (1,825 | ) | (1,825 | ) | ||||||||||
Expenses of class action litigation
|
- | (186 | ) | - | (186 | ) | ||||||||||
Acquisition expenses
|
(51 | ) | 12 | - | (39 | ) | ||||||||||
Legal expenses of OIG investigation
|
(486 | ) | - | - | (486 | ) | ||||||||||
Total
|
$ | (537 | ) | $ | (174 | ) | $ | (4,387 | ) | $ | (5,098 | ) | ||||
After-tax benefit/(cost):
|
VITAS
|
Roto-Rooter
|
Corporate
|
Consolidated
|
||||||||||||
Stock option expense
|
$ | - | $ | - | $ | (1,620 | ) | $ | (1,620 | ) | ||||||
Noncash impact of accounting for convertible debt
|
- | - | (1,155 | ) | (1,155 | ) | ||||||||||
Expenses of class action litigation
|
- | (113 | ) | - | (113 | ) | ||||||||||
Acquisition expenses
|
(31 | ) | 8 | - | (23 | ) | ||||||||||
Legal expenses of OIG investigation
|
(301 | ) | - | - | (301 | ) | ||||||||||
Total
|
$ | (332 | ) | $ | (105 | ) | $ | (2,775 | ) | $ | (3,212 | ) |
|
||||||||||||||||
CONSOLIDATING STATEMENT OF INCOME
|
||||||||||||||||
FOR THE THREE MONTHS ENDED JUNE 30, 2010
|
||||||||||||||||
(in thousands)(unaudited)
|
||||||||||||||||
VITAS
|
Roto-Rooter
|
Corporate
|
Chemed Consolidated |
|||||||||||||
2010 (a)
|
||||||||||||||||
Service revenues and sales
|
$ | 226,638 | $ | 88,357 | $ | - | $ | 314,995 | ||||||||
Cost of services provided and goods sold
|
175,257 | 48,445 | - | 223,702 | ||||||||||||
Selling, general and administrative expenses
|
18,404 | 24,192 | 7,360 | 49,956 | ||||||||||||
Depreciation
|
4,103 | 1,950 | 141 | 6,194 | ||||||||||||
Amortization
|
788 | 132 | 367 | 1,287 | ||||||||||||
Total costs and expenses
|
198,552 | 74,719 | 7,868 | 281,139 | ||||||||||||
Income/(loss) from operations
|
28,086 | 13,638 | (7,868 | ) | 33,856 | |||||||||||
Interest expense
|
(48 | ) | (64 | ) | (2,887 | ) | (2,999 | ) | ||||||||
Intercompany interest income/(expense)
|
1,350 | 773 | (2,123 | ) | - | |||||||||||
Other income/(expense)—net
|
45 | 14 | (49 | ) | 10 | |||||||||||
Income/(expense) before income taxes
|
29,433 | 14,361 | (12,927 | ) | 30,867 | |||||||||||
Income taxes
|
(11,152 | ) | (5,501 | ) | 4,641 | (12,012 | ) | |||||||||
Net income/(loss)
|
$ | 18,281 | $ | 8,860 | $ | (8,286 | ) | $ | 18,855 | |||||||
(a) The following amounts are included in net income (in thousands):
|
||||||||||||||||
VITAS
|
Roto-Rooter
|
Corporate
|
Chemed
Consolidated |
|||||||||||||
Pretax benefit/(cost):
|
||||||||||||||||
Stock option expense
|
$ | - | $ | - | $ | (2,346 | ) | $ | (2,346 | ) | ||||||
Long-term incentive compensation
|
- | - | (1,799 | ) | (1,799 | ) | ||||||||||
Noncash impact of accounting for convertible debt
|
- | - | (1,688 | ) | (1,688 | ) | ||||||||||
Expenses of class action litigation
|
- | (105 | ) | - | (105 | ) | ||||||||||
Legal expenses of OIG investigation
|
(118 | ) | - | - | (118 | ) | ||||||||||
Total
|
$ | (118 | ) | $ | (105 | ) | $ | (5,833 | ) | $ | (6,056 | ) | ||||
VITAS
|
Roto-Rooter
|
Corporate
|
Consolidated
|
|||||||||||||
After-tax benefit/(cost):
|
||||||||||||||||
Stock option expense
|
$ | - | $ | - | $ | (1,484 | ) | $ | (1,484 | ) | ||||||
Long-term incentive compensation
|
- | - | (1,124 | ) | (1,124 | ) | ||||||||||
Noncash impact of accounting for convertible debt
|
- | - | (1,068 | ) | (1,068 | ) | ||||||||||
Expenses of class action litigation
|
- | (63 | ) | - | (63 | ) | ||||||||||
Legal expenses of OIG investigation
|
(74 | ) | - | - | (74 | ) | ||||||||||
Total
|
$ | (74 | ) | $ | (63 | ) | $ | (3,676 | ) | $ | (3,813 | ) |
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF INCOMEFOR THE SIX MONTHS ENDED JUNE 30, 2011
(in thousands)(unaudited)
|
||||||||||||||||
VITAS
|
Roto-Rooter
|
Corporate
|
Chemed
Consolidated |
|||||||||||||
2011 (a)
|
||||||||||||||||
Service revenues and sales
|
$ | 478,768 | $ | 185,510 | $ | - | $ | 664,278 | ||||||||
Cost of services provided and goods sold
|
374,241 | 102,814 | - | 477,055 | ||||||||||||
Selling, general and administrative expenses
|
38,446 | 51,124 | 16,508 | 106,078 | ||||||||||||
Depreciation
|
8,366 | 4,009 | 271 | 12,646 | ||||||||||||
Amortization
|
1,003 | 287 | 819 | 2,109 | ||||||||||||
Total costs and expenses
|
422,056 | 158,234 | 17,598 | 597,888 | ||||||||||||
Income/(loss) from operations
|
56,712 | 27,276 | (17,598 | ) | 66,390 | |||||||||||
Interest expense
|
(110 | ) | (142 | ) | (6,453 | ) | (6,705 | ) | ||||||||
Intercompany interest income/(expense)
|
2,428 | 1,291 | (3,719 | ) | - | |||||||||||
Other income/(expense)—net
|
(59 | ) | 5 | 2,870 | 2,816 | |||||||||||
Income/(expense) before income taxes
|
58,971 | 28,430 | (24,900 | ) | 62,501 | |||||||||||
Income taxes
|
(22,257 | ) | (10,828 | ) | 8,971 | (24,114 | ) | |||||||||
Net income/(loss)
|
$ | 36,714 | $ | 17,602 | $ | (15,929 | ) | $ | 38,387 | |||||||
(a) The following amounts are included in net income (in thousands):
|
||||||||||||||||
VITAS
|
Roto-Rooter
|
Corporate
|
Chemed
Consolidated |
|||||||||||||
Pretax benefit/(cost):
|
||||||||||||||||
Stock option expense
|
$ | - | $ | - | $ | (4,495 | ) | $ | (4,495 | ) | ||||||
Long-term incentive compensation
|
- | - | (3,012 | ) | (3,012 | ) | ||||||||||
Noncash impact of accounting for convertible debt
|
- | - | (3,615 | ) | (3,615 | ) | ||||||||||
Expenses of class action litigation
|
- | (681 | ) | - | (681 | ) | ||||||||||
Acquisition expenses
|
(115 | ) | 6 | - | (109 | ) | ||||||||||
Legal expenses of OIG investigation
|
(997 | ) | - | - | (997 | ) | ||||||||||
Total
|
$ | (1,112 | ) | $ | (675 | ) | $ | (11,122 | ) | $ | (12,909 | ) | ||||
VITAS
|
Roto-Rooter
|
Corporate
|
Consolidated
|
|||||||||||||
After-tax benefit/(cost):
|
||||||||||||||||
Stock option expense
|
$ | - | $ | - | $ | (2,843 | ) | $ | (2,843 | ) | ||||||
Long-term incentive compensation
|
- | - | (2,287 | ) | (2,287 | ) | ||||||||||
Noncash impact of accounting for convertible debt
|
- | - | (1,880 | ) | (1,880 | ) | ||||||||||
Expenses of class action litigation
|
- | (414 | ) | - | (414 | ) | ||||||||||
Acquisition expenses
|
(71 | ) | 4 | - | (67 | ) | ||||||||||
Legal expenses of OIG investigation
|
(618 | ) | - | - | (618 | ) | ||||||||||
Total
|
$ | (689 | ) | $ | (410 | ) | $ | (7,010 | ) | $ | (8,109 | ) |
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF INCOME
FOR THE SIX MONTHS ENDED JUNE 30, 2010
(in thousands)(unaudited)
|
||||||||||||||||
2010 (a)
|
VITAS
|
Roto-Rooter
|
Corporate
|
Chemed Consolidated |
||||||||||||
Service revenues and sales
|
$ | 449,578 | $ | 174,230 | $ | - | $ | 623,808 | ||||||||
Cost of services provided and goods sold
|
347,350 | 95,489 | - | 442,839 | ||||||||||||
Selling, general and administrative expenses
|
36,550 | 48,950 | 12,994 | 98,494 | ||||||||||||
Depreciation
|
7,587 | 3,901 | 175 | 11,663 | ||||||||||||
Amortization
|
1,559 | 255 | 697 | 2,511 | ||||||||||||
Total costs and expenses
|
393,046 | 148,595 | 13,866 | 555,507 | ||||||||||||
Income/(loss) from operations
|
56,532 | 25,635 | (13,866 | ) | 68,301 | |||||||||||
Interest expense
|
(80 | ) | (132 | ) | (5,739 | ) | (5,951 | ) | ||||||||
Intercompany interest income/(expense)
|
2,639 | 1,475 | (4,114 | ) | - | |||||||||||
Other income/(expense)—net
|
6 | 24 | 166 | 196 | ||||||||||||
Income/(expense) before income taxes
|
59,097 | 27,002 | (23,553 | ) | 62,546 | |||||||||||
Income taxes
|
(22,378 | ) | (10,329 | ) | 8,374 | (24,333 | ) | |||||||||
Net income/(loss)
|
$ | 36,719 | $ | 16,673 | $ | (15,179 | ) | $ | 38,213 | |||||||
(a) The following amounts are included in net income (in thousands):
|
||||||||||||||||
VITAS
|
Roto-Rooter
|
Corporate
|
Chemed
Consolidated |
|||||||||||||
Pretax benefit/(cost):
|
||||||||||||||||
Stock option expense
|
$ | - | $ | - | $ | (4,397 | ) | $ | (4,397 | ) | ||||||
Long-term incentive compensation
|
- | - | (1,799 | ) | (1,799 | ) | ||||||||||
Noncash impact of accounting for convertible debt
|
- | - | (3,343 | ) | (3,343 | ) | ||||||||||
Expenses of class action litigation
|
- | (105 | ) | - | (105 | ) | ||||||||||
Legal expenses of OIG investigation
|
(278 | ) | - | - | (278 | ) | ||||||||||
Total
|
$ | (278 | ) | $ | (105 | ) | $ | (9,539 | ) | $ | (9,922 | ) | ||||
VITAS
|
Roto-Rooter
|
Corporate
|
Consolidated
|
|||||||||||||
After-tax benefit/(cost):
|
||||||||||||||||
Stock option expense
|
$ | - | $ | - | $ | (2,782 | ) | $ | (2,782 | ) | ||||||
Long-term incentive compensation
|
- | - | (2,115 | ) | (2,115 | ) | ||||||||||
Noncash impact of accounting for convertible debt
|
- | - | (1,124 | ) | (1,124 | ) | ||||||||||
Expenses of class action litigation
|
- | (63 | ) | - | (63 | ) | ||||||||||
Legal expenses of OIG investigation
|
(173 | ) | - | - | (173 | ) | ||||||||||
Total
|
$ | (173 | ) | $ | (63 | ) | $ | (6,021 | ) | $ | (6,257 | ) |
Consolidating Summary and Reconciliation of Adjusted EBITDA
|
||||||||||||||||
Chemed Corporation and Subsidiary Companies
|
||||||||||||||||
(in thousands)
|
Chemed
|
|||||||||||||||
For the three months ended June 30, 2011
|
VITAS
|
Roto-Rooter
|
Corporate
|
Consolidated
|
||||||||||||
Net income/(loss)
|
$ | 18,589 | $ | 9,092 | $ | (7,395 | ) | $ | 20,286 | |||||||
Add/(deduct):
|
||||||||||||||||
Interest expense
|
62 | 77 | 3,322 | 3,461 | ||||||||||||
Income taxes
|
11,175 | 5,542 | (3,908 | ) | 12,809 | |||||||||||
Depreciation
|
4,199 | 2,025 | 134 | 6,358 | ||||||||||||
Amortization
|
520 | 155 | 464 | 1,139 | ||||||||||||
EBITDA
|
34,545 | 16,891 | (7,383 | ) | 44,053 | |||||||||||
Add/(deduct):
|
||||||||||||||||
Legal expenses of OIG investigation
|
486 | - | - | 486 | ||||||||||||
Acquisition expenses
|
51 | (12 | ) | - | 39 | |||||||||||
Expenses of class action litigation
|
- | 186 | - | 186 | ||||||||||||
Stock option expense
|
- | - | 2,562 | 2,562 | ||||||||||||
Advertising cost adjustment
|
- | (607 | ) | - | (607 | ) | ||||||||||
Interest income
|
(7 | ) | (9 | ) | (46 | ) | (62 | ) | ||||||||
Intercompany interest income/(expense)
|
(1,215 | ) | (652 | ) | 1,867 | - | ||||||||||
Adjusted EBITDA
|
$ | 33,860 | $ | 15,797 | $ | (3,000 | ) | $ | 46,657 | |||||||
Chemed
|
||||||||||||||||
For the three months ended June 30, 2010
|
VITAS
|
Roto-Rooter
|
Corporate
|
Consolidated
|
||||||||||||
Net income/(loss)
|
$ | 18,281 | $ | 8,860 | $ | (8,286 | ) | $ | 18,855 | |||||||
Add/(deduct):
|
||||||||||||||||
Interest expense
|
48 | 64 | 2,887 | 2,999 | ||||||||||||
Income taxes
|
11,152 | 5,501 | (4,641 | ) | 12,012 | |||||||||||
Depreciation
|
4,103 | 1,950 | 141 | 6,194 | ||||||||||||
Amortization
|
788 | 132 | 367 | 1,287 | ||||||||||||
EBITDA
|
34,372 | 16,507 | (9,532 | ) | 41,347 | |||||||||||
Add/(deduct):
|
||||||||||||||||
Legal expenses of OIG investigation
|
118 | - | - | 118 | ||||||||||||
Long-term incentive compensation
|
- | - | 1,799 | 1,799 | ||||||||||||
Expenses of class action litigation
|
- | 105 | - | 105 | ||||||||||||
Stock option expense
|
- | - | 2,346 | 2,346 | ||||||||||||
Advertising cost adjustment
|
- | (679 | ) | - | (679 | ) | ||||||||||
Interest income
|
(90 | ) | (25 | ) | (35 | ) | (150 | ) | ||||||||
Intercompany interest income/(expense)
|
(1,350 | ) | (773 | ) | 2,123 | - | ||||||||||
Adjusted EBITDA
|
$ | 33,050 | $ | 15,135 | $ | (3,299 | ) | $ | 44,886 |
Consolidating Summary and Reconciliation of Adjusted EBITDA
|
||||||||||||||||
Chemed Corporation and Subsidiary Companies
|
||||||||||||||||
(in thousands)
|
Chemed
|
|||||||||||||||
For the six months ended June 30, 2011
|
VITAS
|
Roto-Rooter
|
Corporate
|
Consolidated
|
||||||||||||
Net income/(loss)
|
$ | 36,714 | $ | 17,602 | $ | (15,929 | ) | $ | 38,387 | |||||||
Add/(deduct):
|
||||||||||||||||
Interest expense
|
110 | 142 | 6,453 | 6,705 | ||||||||||||
Income taxes
|
22,257 | 10,828 | (8,971 | ) | 24,114 | |||||||||||
Depreciation
|
8,366 | 4,009 | 271 | 12,646 | ||||||||||||
Amortization
|
1,003 | 287 | 819 | 2,109 | ||||||||||||
EBITDA
|
68,450 | 32,868 | (17,357 | ) | 83,961 | |||||||||||
Add/(deduct):
|
||||||||||||||||
Legal expenses of OIG investigation
|
997 | - | - | 997 | ||||||||||||
Acquisition expenses
|
115 | (6 | ) | - | 109 | |||||||||||
Expenses of class action litigation
|
- | 681 | - | 681 | ||||||||||||
Long-term incentive compensation
|
- | - | 3,012 | 3,012 | ||||||||||||
Stock option expense
|
- | - | 4,495 | 4,495 | ||||||||||||
Advertising cost adjustment
|
- | (857 | ) | - | (857 | ) | ||||||||||
Interest income
|
(44 | ) | (16 | ) | (63 | ) | (123 | ) | ||||||||
Intercompany interest income/(expense)
|
(2,428 | ) | (1,291 | ) | 3,719 | - | ||||||||||
Adjusted EBITDA
|
$ | 67,090 | $ | 31,379 | $ | (6,194 | ) | $ | 92,275 | |||||||
Chemed
|
||||||||||||||||
For the six months ended June 30, 2010
|
VITAS
|
Roto-Rooter
|
Corporate
|
Consolidated
|
||||||||||||
Net income/(loss)
|
$ | 36,719 | $ | 16,673 | $ | (15,179 | ) | $ | 38,213 | |||||||
Add/(deduct):
|
||||||||||||||||
Interest expense
|
80 | 132 | 5,739 | 5,951 | ||||||||||||
Income taxes
|
22,378 | 10,329 | (8,374 | ) | 24,333 | |||||||||||
Depreciation
|
7,587 | 3,901 | 175 | 11,663 | ||||||||||||
Amortization
|
1,559 | 255 | 697 | 2,511 | ||||||||||||
EBITDA
|
68,323 | 31,290 | (16,942 | ) | 82,671 | |||||||||||
Add/(deduct):
|
||||||||||||||||
Legal expenses of OIG investigation
|
278 | - | - | 278 | ||||||||||||
Expenses of class action litigation
|
- | 105 | - | 105 | ||||||||||||
Long-term incentive compensation
|
- | - | 1,799 | 1,799 | ||||||||||||
Stock option expense
|
- | - | 4,397 | 4,397 | ||||||||||||
Advertising cost adjustment
|
- | (1,068 | ) | - | (1,068 | ) | ||||||||||
Interest income
|
(135 | ) | (27 | ) | (63 | ) | (225 | ) | ||||||||
Intercompany interest income/(expense)
|
(2,639 | ) | (1,475 | ) | 4,114 | - | ||||||||||
Adjusted EBITDA
|
$ | 65,827 | $ | 28,825 | $ | (6,695 | ) | $ | 87,957 |
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
OPERATING STATISTICS FOR VITAS SEGMENT
(unaudited)
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
OPERATING STATISTICS
|
2011
|
2010
|
2011
|
2010
|
||||||||||||
Net revenue ($000)
|
||||||||||||||||
Homecare
|
$ | 177,067 | $ | 163,512 | $ | 345,719 | $ | 320,738 | ||||||||
Inpatient
|
27,183 | 25,989 | 54,569 | 52,281 | ||||||||||||
Continuous care
|
39,213 | 37,102 | 77,838 | 74,776 | ||||||||||||
Total before Medicare cap allowance
|
$ | 243,463 | $ | 226,603 | $ | 478,126 | $ | 447,795 | ||||||||
Medicare cap allowance
|
(368 | ) | 35 | 642 | 1,783 | |||||||||||
Total
|
$ | 243,095 | $ | 226,638 | $ | 478,768 | $ | 449,578 | ||||||||
Net revenue as a percent of total
|
||||||||||||||||
before Medicare cap allowance
|
||||||||||||||||
Homecare
|
72.7 | % | 72.1 | % | 72.2 | % | 71.6 | % | ||||||||
Inpatient
|
11.2 | 11.5 | 11.4 | 11.7 | ||||||||||||
Continuous care
|
16.1 | 16.4 | 16.4 | 16.7 | ||||||||||||
Total before Medicare cap allowance
|
100.0 | 100.0 | 100.0 | 100.0 | ||||||||||||
Medicare cap allowance
|
(0.2 | ) | - | 0.1 | 0.4 | |||||||||||
Total
|
99.8 | % | 100.0 | % | 100.1 | % | 100.4 | % | ||||||||
Average daily census (days)
|
||||||||||||||||
Homecare
|
9,229 | 8,345 | 9,031 | 8,229 | ||||||||||||
Nursing home
|
3,034 | 3,223 | 3,034 | 3,193 | ||||||||||||
Routine homecare
|
12,263 | 11,568 | 12,065 | 11,422 | ||||||||||||
Inpatient
|
447 | 433 | 449 | 438 | ||||||||||||
Continuous care
|
601 | 583 | 602 | 594 | ||||||||||||
Total
|
13,311 | 12,584 | 13,116 | 12,454 | ||||||||||||
Total Admissions
|
15,294 | 14,423 | 31,092 | 29,267 | ||||||||||||
Total Discharges
|
14,885 | 14,132 | 30,419 | 28,685 | ||||||||||||
Average length of stay (days)
|
77.1 | 77.4 | 78.0 | 76.6 | ||||||||||||
Median length of stay (days)
|
14.0 | 14.0 | 14.0 | 14.0 | ||||||||||||
ADC by major diagnosis
|
||||||||||||||||
Neurological
|
34.2 | % | 32.8 | % | 34.2 | % | 32.8 | % | ||||||||
Cancer
|
17.7 | 18.1 | 17.8 | 18.5 | ||||||||||||
Cardio
|
11.5 | 12.0 | 11.7 | 11.9 | ||||||||||||
Respiratory
|
6.9 | 6.5 | 6.8 | 6.6 | ||||||||||||
Other
|
29.7 | 30.6 | 29.5 | 30.2 | ||||||||||||
Total
|
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Admissions by major diagnosis
|
||||||||||||||||
Neurological
|
19.4 | % | 18.5 | % | 19.5 | % | 18.6 | % | ||||||||
Cancer
|
32.8 | 33.8 | 32.2 | 33.8 | ||||||||||||
Cardio
|
10.8 | 11.2 | 11.0 | 11.4 | ||||||||||||
Respiratory
|
8.5 | 8.5 | 8.8 | 8.5 | ||||||||||||
Other
|
28.5 | 28.0 | 28.5 | 27.7 | ||||||||||||
Total
|
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Direct patient care margins
|
||||||||||||||||
Routine homecare
|
52.4 | % | 52.1 | % | 51.7 | % | 51.6 | % | ||||||||
Inpatient
|
13.3 | 12.3 | 13.1 | 13.7 | ||||||||||||
Continuous care
|
20.2 | 21.2 | 20.4 | 21.0 | ||||||||||||
Homecare margin drivers (dollars per patient day)
|
||||||||||||||||
Labor costs
|
$ | 53.23 | $ | 52.52 | $ | 54.28 | $ | 53.21 | ||||||||
Drug costs
|
8.21 | 7.67 | 8.08 | 7.72 | ||||||||||||
Home medical equipment
|
6.66 | 7.26 | 6.66 | 7.38 | ||||||||||||
Medical supplies
|
2.83 | 2.46 | 2.79 | 2.45 | ||||||||||||
Inpatient margin drivers (dollars per patient day)
|
||||||||||||||||
Labor costs
|
$ | 311.26 | $ | 301.81 | $ | 308.97 | $ | 294.27 | ||||||||
Continuous care margin drivers (dollars per patient day)
|
||||||||||||||||
Labor costs
|
$ | 550.40 | $ | 530.05 | $ | 547.29 | $ | 528.23 | ||||||||
Bad debt expense as a percent of revenues
|
0.8 | % | 0.9 | % | 0.7 | % | 0.9 | % | ||||||||
Accounts receivable --
|
||||||||||||||||
Days of revenue outstanding- excluding unapplied Medicare payments
|
37.2 | 42.3 |
n.a.
|
n.a.
|
||||||||||||
Days of revenue outstanding- including unapplied Medicare payments
|
36.8 | 34.1 |
n.a.
|
n.a.
|
Weighted
|
Cumulative | |||||||||||||||
Total Number
|
Average
|
Shares
|
Dollar Amount
|
|||||||||||||
of Shares
|
Price Paid Per
|
Repurchased Under
|
Remaining Under
|
|||||||||||||
Repurchased
|
Share
|
the Program
|
The Program
|
|||||||||||||
April 2007 Program
|
||||||||||||||||
January 1 through January 31, 2011
|
300,513 | $ | 63.62 | 3,654,157 | $ | 24,543 | ||||||||||
February 1 through February 28, 2011
|
377 | 65.03 | 3,654,534 | - | ||||||||||||
March 1 through March 31, 2011
|
- | - | 3,654,534 | $ | - | |||||||||||
First Quarter Total - April 2007 Program
|
300,890 | $ | 63.62 | |||||||||||||
February 2011 Program
|
||||||||||||||||
January 1 through January 31, 2011
|
- | $ | - | - | $ | - | ||||||||||
February 22, 2011 Authorization
|
- | - | - | 100,000,000 | ||||||||||||
February 1 through February 28, 2011
|
40,623 | 65.03 | 40,623 | 97,358,313 | ||||||||||||
March 1 through March 31, 2011
|
- | - | 40,623 | $ | 97,358,313 | |||||||||||
First Quarter Total - February 2011 Program
|
40,623 | $ | 65.03 | |||||||||||||
April 1 through April 30, 2011
|
- | $ | - | - | $ | 97,358,313 | ||||||||||
May 1 through May 31, 2011
|
- | - | - | 97,358,313 | ||||||||||||
June 1 through June 30, 2011
|
- | - | - | $ | 97,358,313 | |||||||||||
Second Quarter Total - February 2011 Program
|
- | $ | - | |||||||||||||
On February 22, 2011 our Board of Directors authorized $100 million under the newly established February 2011 Repurchase Program.
|
Exhibit No.
|
Description
|
|
31.1
|
Certification by Kevin J. McNamara pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act of 1934.
|
|
31.2
|
Certification by David P. Williams pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act of 1934.
|
|
31.3
|
Certification by Arthur V. Tucker, Jr. pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act of 1934.
|
|
32.1
|
Certification by Kevin J. McNamara pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
32.2
|
Certification by David P. Williams pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
32.3
|
Certification by Arthur V. Tucker, Jr. pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
101.INS
|
XBRL Instance Document
|
|
101.SCH
|
XBRL Taxonomy Extension Schema
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase
|
Chemed Corporation
|
|||||||
(Registrant)
|
|||||||
Dated:
|
August 5, 2011
|
By:
|
Kevin J. McNamara
|
||||
Kevin J. McNamara
|
|||||||
(President and Chief Executive Officer)
|
|||||||
Dated:
|
August 5, 2011
|
By:
|
David P. Williams
|
||||
David P. Williams
|
|||||||
(Executive Vice President and Chief Financial Officer)
|
|||||||
Dated:
|
August 5, 2011
|
By:
|
Arthur V. Tucker, Jr.
|
||||
Arthur V. Tucker, Jr.
|
|||||||
(Vice President and Controller)
|