Delaware
|
31-0791746
|
|
(State or other jurisdiction of incorporation or organization)
|
(IRS Employer Identification No.)
|
|
255 E. Fifth Street, Suite 2600, Cincinnati, Ohio
|
45202
|
|
(Address of principal executive offices)
|
(Zip code)
|
|
(513) 762-6500
(Registrant’s telephone number, including area code)
|
Yes
|
x
|
No
|
o
|
Yes
|
x
|
No
|
o
|
Large accelerated
filer
|
x
|
Accelerated
filer
|
o
|
Non-accelerated
filer
|
o
|
Smaller reporting
company
|
o
|
Yes
|
o
|
No
|
x
|
Class
|
Amount
|
Date
|
||
Capital Stock $1 Par Value
|
17,634,176 Shares
|
September 30, 2013
|
||
Page No.
|
|
PART I. FINANCIAL INFORMATION:
|
|
Item 1. Financial Statements
|
|
PART II. OTHER INFORMATION
|
|
EX – 31.1
|
|
EX – 31.2
|
|
EX – 31.3
|
|
EX – 32.1
|
|
EX – 32.2
|
|
EX – 32.3
|
|
EX – 101.INS
|
|
EX – 101.SCH
|
|
EX – 101.CAL
|
|
EX – 101.DEF
|
|
EX – 101.LAB
|
|
EX – 101.PRE
|
PART I. FINANCIAL INFORMATION
|
||||||||
Item 1. Financial Statements
|
||||||||
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
|
||||||||
(in thousands, except share and per share data)
|
||||||||
September 30,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
ASSETS
|
||||||||
Current assets
|
||||||||
Cash and cash equivalents
|
$ | 83,204 | $ | 69,531 | ||||
Accounts receivable less allowances of $12,555 (2012 - $10,892)
|
80,117 | 93,333 | ||||||
Inventories
|
6,729 | 7,058 | ||||||
Current deferred income taxes
|
25,101 | 13,659 | ||||||
Prepaid income taxes
|
3,538 | 2,643 | ||||||
Prepaid expenses
|
17,684 | 11,447 | ||||||
Total current assets
|
216,373 | 197,671 | ||||||
Investments of deferred compensation plans
|
40,683 | 36,089 | ||||||
Properties and equipment, at cost, less accumulated depreciation of $178,720 (2012 - $164,607)
|
89,800 | 91,934 | ||||||
Identifiable intangible assets less accumulated amortization of $31,633 (2012 - $30,414)
|
56,979 | 57,177 | ||||||
Goodwill
|
466,940 | 465,832 | ||||||
Other assets
|
10,765 | 10,923 | ||||||
Total Assets
|
$ | 881,540 | $ | 859,626 | ||||
LIABILITIES
|
||||||||
Current liabilities
|
||||||||
Accounts payable
|
$ | 44,523 | $ | 48,472 | ||||
Current portion of long-term debt
|
181,340 | - | ||||||
Income taxes
|
5,529 | 4,938 | ||||||
Accrued insurance
|
41,737 | 40,654 | ||||||
Accrued compensation
|
46,689 | 45,457 | ||||||
Other current liabilities
|
56,536 | 17,301 | ||||||
Total current liabilities
|
376,354 | 156,822 | ||||||
Deferred income taxes
|
27,454 | 27,662 | ||||||
Long-term debt
|
- | 174,890 | ||||||
Deferred compensation liabilities
|
39,406 | 35,599 | ||||||
Other liabilities
|
11,499 | 11,362 | ||||||
Total Liabilities
|
454,713 | 406,335 | ||||||
Commitments and contingencies
|
||||||||
STOCKHOLDERS' EQUITY
|
||||||||
Capital stock - authorized 80,000,000 shares $1 par; issued 32,085,561 shares (2012 - 31,589,366 shares)
|
32,086 | 31,589 | ||||||
Paid-in capital
|
469,934 | 437,364 | ||||||
Retained earnings
|
666,894 | 623,035 | ||||||
Treasury stock - 14,548,735 shares (2012 - 13,057,270)
|
(744,210 | ) | (640,732 | ) | ||||
Deferred compensation payable in Company stock
|
2,123 | 2,035 | ||||||
Total Stockholders' Equity
|
426,827 | 453,291 | ||||||
Total Liabilities and Stockholders' Equity
|
$ | 881,540 | $ | 859,626 | ||||
See accompanying notes to unaudited consolidated financial statements.
|
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
|
||||||||||||||||
(in thousands, except per share data)
|
||||||||||||||||
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Service revenues and sales
|
$ | 340,886 | $ | 354,353 | $ | 1,064,725 | $ | 1,061,466 | ||||||||
Cost of services provided and goods sold (excluding depreciation)
|
243,184 | 256,610 | 762,850 | 771,423 | ||||||||||||
Selling, general and administrative expenses
|
48,870 | 52,955 | 157,537 | 155,892 | ||||||||||||
Depreciation
|
6,971 | 6,557 | 20,665 | 19,178 | ||||||||||||
Amortization
|
1,190 | 1,135 | 3,498 | 3,375 | ||||||||||||
Other operating expenses
|
11,461 | 1,126 | 26,221 | 1,126 | ||||||||||||
Total costs and expenses
|
311,676 | 318,383 | 970,771 | 950,994 | ||||||||||||
Income from operations
|
29,210 | 35,970 | 93,954 | 110,472 | ||||||||||||
Interest expense
|
(3,500 | ) | (3,743 | ) | (11,291 | ) | (11,032 | ) | ||||||||
Other income/(expense) - net
|
(90 | ) | 1,840 | 3,312 | 2,965 | |||||||||||
Income before income taxes
|
25,620 | 34,067 | 85,975 | 102,405 | ||||||||||||
Income taxes
|
(8,188 | ) | (13,222 | ) | (31,657 | ) | (39,841 | ) | ||||||||
Net income
|
$ | 17,432 | $ | 20,845 | $ | 54,318 | $ | 62,564 | ||||||||
Earnings Per Share
|
||||||||||||||||
Net income
|
$ | 0.96 | $ | 1.10 | $ | 2.95 | $ | 3.30 | ||||||||
Average number of shares outstanding
|
18,184 | 18,960 | 18,436 | 18,977 | ||||||||||||
Diluted Earnings Per Share
|
||||||||||||||||
Net income
|
$ | 0.94 | $ | 1.07 | $ | 2.89 | $ | 3.23 | ||||||||
Average number of shares outstanding
|
18,522 | 19,404 | 18,824 | 19,382 | ||||||||||||
Cash Dividends Per Share
|
$ | 0.20 | $ | 0.18 | $ | 0.56 | $ | 0.50 | ||||||||
See accompanying notes to unaudited consolidated financial statements.
|
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
|
||||||||
(in thousands)
|
||||||||
Nine Months Ended
|
||||||||
September 30,
|
||||||||
2013
|
2012
|
|||||||
Cash Flows from Operating Activities
|
||||||||
Net income
|
$ | 54,318 | $ | 62,564 | ||||
Adjustments to reconcile net income to net cash provided
|
||||||||
by operating activities:
|
||||||||
Depreciation and amortization
|
24,163 | 22,553 | ||||||
Deferred income taxes
|
(11,681 | ) | (6,808 | ) | ||||
Provision for uncollectible accounts receivable
|
8,211 | 7,303 | ||||||
Amortization of discount on convertible notes
|
6,450 | 6,028 | ||||||
Stock option expense
|
4,732 | 6,709 | ||||||
Amortization of debt issuance costs
|
1,421 | 940 | ||||||
Noncash long-term incentive compensation
|
1,161 | - | ||||||
Changes in operating assets and liabilities, excluding
|
||||||||
amounts acquired in business combinations:
|
||||||||
Decrease/(increase) in accounts receivable
|
5,293 | (30,409 | ) | |||||
Decrease in inventories
|
329 | 1,029 | ||||||
Decrease/(increase) in prepaid expenses
|
(6,183 | ) | 1,554 | |||||
Increase in accounts payable and other current liabilities
|
48,967 | 4,454 | ||||||
Increase in income taxes
|
1,923 | 1,292 | ||||||
Increase in other assets
|
(5,002 | ) | (3,944 | ) | ||||
Increase in other liabilities
|
3,978 | 6,648 | ||||||
Excess tax benefit on share-based compensation
|
(2,507 | ) | (2,714 | ) | ||||
Other sources
|
285 | 138 | ||||||
Net cash provided by operating activities
|
135,858 | 77,337 | ||||||
Cash Flows from Investing Activities
|
||||||||
Capital expenditures
|
(18,887 | ) | (26,489 | ) | ||||
Business combinations, net of cash acquired
|
(2,210 | ) | (5,900 | ) | ||||
Other sources
|
139 | 528 | ||||||
Net cash used by investing activities
|
(20,958 | ) | (31,861 | ) | ||||
Cash Flows from Financing Activities
|
||||||||
Purchases of treasury stock
|
(89,611 | ) | (11,724 | ) | ||||
Dividends paid
|
(10,459 | ) | (9,641 | ) | ||||
Capital stock surrendered to pay taxes on stock-based compensation
|
(4,280 | ) | (3,236 | ) | ||||
Proceeds from exercise of stock options
|
13,125 | 10,483 | ||||||
Excess tax benefit on share-based compensation
|
2,507 | 2,714 | ||||||
Decrease in cash overdrafts payable
|
(10,928 | ) | (3,299 | ) | ||||
Debt issuance costs
|
(1,108 | ) | - | |||||
Other sources/(uses)
|
(473 | ) | 442 | |||||
Net cash used by financing activities
|
(101,227 | ) | (14,261 | ) | ||||
Increase in Cash and Cash Equivalents
|
13,673 | 31,215 | ||||||
Cash and cash equivalents at beginning of year
|
69,531 | 38,081 | ||||||
Cash and cash equivalents at end of period
|
$ | 83,204 | $ | 69,296 | ||||
See accompanying notes to unaudited consolidated financial statements.
|
September 30,
|
||||||||
2013
|
2012
|
|||||||
Beginning balance January 1,
|
$ | 1,261 | $ | 2,965 | ||||
2013 measurement period
|
3,161 | - | ||||||
2012 measurement period
|
- | (2,577 | ) | |||||
Ending balance September 30,
|
$ | 4,422 | $ | 388 |
Three months ended September 30,
|
Nine months ended September 30,
|
|||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||
$ | 1,909 | $ | 1,983 | $ | 5,793 | $ | 6,021 |
Three months ended September 30,
|
Nine months ended September 30,
|
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Service Revenues and Sales
|
|
|
||||||||||||||
VITAS
|
$ | 254,001 | $ | 267,990 | $ | 788,896 | $ | 794,050 | ||||||||
Roto-Rooter
|
86,885 | 86,363 | 275,829 | 267,416 | ||||||||||||
Total
|
$ | 340,886 | $ | 354,353 | $ | 1,064,725 | $ | 1,061,466 | ||||||||
After-tax Earnings
|
||||||||||||||||
VITAS
|
$ | 14,608 | $ | 21,940 | $ | 55,237 | $ | 61,999 | ||||||||
Roto-Rooter
|
8,181 | 6,145 | 19,218 | 21,715 | ||||||||||||
Total
|
22,789 | 28,085 | 74,455 | 83,714 | ||||||||||||
Corporate
|
(5,357 | ) * | (7,240 | ) | (20,137 | ) * | (21,150 | ) | ||||||||
Net income
|
$ | 17,432 | $ | 20,845 | $ | 54,318 | $ | 62,564 |
Net Income
|
|||||||||
For the Three Months Ended September 30,
|
Income
|
Shares
|
Earnings per Share
|
||||||
2013
|
|||||||||
Earnings
|
$
|
17,432
|
18,184
|
$
|
0.96
|
||||
Dilutive stock options
|
-
|
235
|
|||||||
Nonvested stock awards
|
-
|
103
|
|||||||
Diluted earnings
|
$
|
17,432
|
18,522
|
$
|
0.94
|
||||
2012
|
|||||||||
Earnings
|
$
|
20,845
|
18,960
|
$
|
1.10
|
||||
Dilutive stock options
|
-
|
341
|
|||||||
Nonvested stock awards
|
-
|
103
|
|||||||
Diluted earnings
|
$
|
20,845
|
19,404
|
$
|
1.07
|
||||
Net Income
|
|||||||||
For the Nine Months Ended September 30,
|
Income
|
Shares
|
Earnings per Share
|
||||||
2013
|
|||||||||
Earnings
|
$
|
54,318
|
18,436
|
$
|
2.95
|
||||
Dilutive stock options
|
-
|
287
|
|||||||
Nonvested stock awards
|
-
|
101
|
|||||||
Diluted earnings
|
$
|
54,318
|
18,824
|
$
|
2.89
|
||||
2012
|
|||||||||
Earnings
|
$
|
62,564
|
18,977
|
$
|
3.30
|
||||
Dilutive stock options
|
-
|
313
|
|||||||
Nonvested stock awards
|
-
|
92
|
|||||||
Diluted earnings
|
$
|
62,564
|
19,382
|
$
|
3.23
|
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 | 61,766 | - | 61,766 | (66,076 | ) | (4,310 | ) | ||||||||||||||
$ | 90.73 | 317,009 | - | 317,009 | (339,127 | ) | (22,118 | ) | ||||||||||||||
$ | 100.73 | 521,573 | - | 521,573 | (557,964 | ) | (36,391 | ) | ||||||||||||||
$ | 110.73 | 689,189 | 121,511 | 810,700 | (737,274 | ) | 73,426 | |||||||||||||||
$ | 120.73 | 829,038 | 322,121 | 1,151,159 | (886,880 | ) | 264,279 | |||||||||||||||
$ | 130.73 | 947,492 | 492,040 | 1,439,532 | (1,013,599 | ) | 425,933 |
|
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
|
September 30, 2013
|
December 31, 2012
|
|||||||
Principal amount of convertible debentures
|
$ | 186,956 | $ | 186,956 | ||||
Unamortized debt discount
|
(5,616 | ) | (12,066 | ) | ||||
Carrying amount of convertible debentures
|
$ | 181,340 | $ | 174,890 | ||||
Additional paid in capital (net of tax)
|
$ | 31,310 | $ | 31,310 |
Three months ended September 30,
|
Nine months ended September 30,
|
||||||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||||||
Cash interest expense
|
$ | 990 | $ | 1,381 | $ | 3,420 | $ | 4,064 | |||||||
Non-cash amortization of debt discount
|
2,186 | 2,043 | 6,450 | 6,028 | |||||||||||
Amortization and write-off of debt costs
|
324 | 319 | 1,421 | 940 | |||||||||||
Total interest expense
|
$ | 3,500 | $ | 3,743 | $ | 11,291 | $ | 11,032 |
Three months ended September 30,
|
Nine months ended September 30,
|
||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||
Market value gains/(losses) on assets held in
|
|||||||||||
deferred compensation trust
|
$
|
(189)
|
$
|
1,576
|
$
|
2,346
|
$
|
2,761
|
|||
Loss on disposal of property and equipment
|
(101)
|
(80)
|
(180)
|
(228)
|
|||||||
Interest income
|
192
|
291
|
1,165
|
401
|
|||||||
Other - net
|
8
|
53
|
(19)
|
31
|
|||||||
Total other income/(expense) - net
|
$
|
(90)
|
$
|
1,840
|
$
|
3,312
|
$
|
2,965
|
Three months ended September 30,
|
Nine months ended September 30,
|
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Revenues
|
$ | 8,054 | $ | 6,942 | $ | 24,418 | $ | 20,434 | ||||||||
Pretax profits
|
4,243 | 3,611 | 13,015 | 10,424 |
Three months ended September 30,
|
Nine months ended September 30,
|
|||||||||
2013
|
2012
|
2013
|
2012
|
|||||||
$
|
2,098
|
$
|
2,646
|
$
|
9,796
|
$
|
8,501
|
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
|
$ | 40,683 | $ | 40,683 | $ | - | $ | - | ||||||||
Long-term debt
|
181,340 | 195,257 | - | - |
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
|
$ | 36,089 | $ | 36,089 | $ | - | $ | - | ||||||||
Long-term debt
|
174,890 | 197,874 | - | - |
Three months ended September 30,
|
Nine months ended September 30, | ||||||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||||||
Shares repurchased
|
1,032,754 | 9,334 | 1,313,455 | 209,234 | |||||||||||
Weighted average price per share
|
$ | 68.91 | $ | 62.75 | $ | 68.23 | $ | 56.03 |
Three months ended September 30,
|
Nine months ended September 30,
|
||||||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||||||
Litigation settlement of VITAS segment (a)
|
$ | 10,500 | $ | - | $ | 10,500 | $ | - | |||||||
Settlements of Roto-Rooter segment (b)
|
961 | - | 15,721 | - | |||||||||||
Severance and other operating costs related
|
|||||||||||||||
to closing Roto-Rooter's HVAC business
|
- | 1,126 | - | 1,126 | |||||||||||
Total other operating expenses
|
$ | 11,461 | $ | 1,126 | $ | 26,221 | $ | 1,126 |
September 30, 2013
|
Guarantor
|
Non-Guarantor
|
Consolidating
|
|||||||||||||||||
|
Parent
|
Subsidiaries
|
Subsidiaries
|
Adjustments
|
Consolidated
|
|||||||||||||||
ASSETS
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 84,842 | $ | (10,511 | ) | $ | 8,873 | $ | - | $ | 83,204 | |||||||||
Accounts receivable, including intercompany
|
960 | 496,001 | 741 | (417,585 | ) | 80,117 | ||||||||||||||
Inventories
|
- | 6,175 | 554 | - | 6,729 | |||||||||||||||
Current deferred income taxes
|
- | 27,237 | 177 | (2,313 | ) | 25,101 | ||||||||||||||
Prepaid income taxes
|
6,583 | - | 218 | (3,263 | ) | 3,538 | ||||||||||||||
Prepaid expenses
|
7,199 | 10,245 | 240 | - | 17,684 | |||||||||||||||
Total current assets
|
99,584 | 529,147 | 10,803 | (423,161 | ) | 216,373 | ||||||||||||||
Investments of deferred compensation plans
|
- | - | 40,683 | - | 40,683 | |||||||||||||||
Properties and equipment, at cost less accumulated depreciation
|
10,361 | 76,957 | 2,482 | - | 89,800 | |||||||||||||||
Identifiable intangible assets less accumulated amortization
|
- | 56,979 | - | - | 56,979 | |||||||||||||||
Goodwill
|
- | 462,489 | 4,451 | - | 466,940 | |||||||||||||||
Other assets
|
18,155 | 1,770 | 15,177 | (24,337 | ) | 10,765 | ||||||||||||||
Investments in subsidiaries
|
924,423 | 27,629 | - | (952,052 | ) | - | ||||||||||||||
Total assets
|
$ | 1,052,523 | $ | 1,154,971 | $ | 73,596 | $ | (1,399,550 | ) | $ | 881,540 | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||||||||||||||
Accounts payable, including intercompany
|
$ | 421,662 | $ | 35,005 | $ | 5,441 | $ | (417,585 | ) | $ | 44,523 | |||||||||
Current portion of long-term debt
|
181,340 | - | - | - | 181,340 | |||||||||||||||
Income taxes
|
5,034 | 3,349 | 409 | (3,263 | ) | 5,529 | ||||||||||||||
Accrued insurance
|
153 | 41,584 | - | - | 41,737 | |||||||||||||||
Accrued compensation
|
3,226 | 43,131 | 332 | - | 46,689 | |||||||||||||||
Other current liabilities
|
11,023 | 47,646 | 180 | (2,313 | ) | 56,536 | ||||||||||||||
Total current liabilities
|
622,438 | 170,715 | 6,362 | (423,161 | ) | 376,354 | ||||||||||||||
Deferred income taxes
|
- | 51,791 | - | (24,337 | ) | 27,454 | ||||||||||||||
Deferred compensation liabilities
|
- | - | 39,406 | - | 39,406 | |||||||||||||||
Other liabilities
|
3,258 | 7,265 | 976 | - | 11,499 | |||||||||||||||
Stockholders' equity
|
426,827 | 925,200 | 26,852 | (952,052 | ) | 426,827 | ||||||||||||||
Total liabilities and stockholders' equity
|
$ | 1,052,523 | $ | 1,154,971 | $ | 73,596 | $ | (1,399,550 | ) | $ | 881,540 | |||||||||
December 31, 2012
|
Guarantor
|
Non-Guarantor
|
Consolidating
|
|||||||||||||||||
|
Parent
|
Subsidiaries
|
Subsidiaries
|
Adjustments
|
Consolidated
|
|||||||||||||||
ASSETS
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 56,342 | $ | 4,674 | $ | 8,515 | $ | - | $ | 69,531 | ||||||||||
Accounts receivable, including intercompany
|
925 | 427,341 | 889 | (335,822 | ) | 93,333 | ||||||||||||||
Inventories
|
- | 6,505 | 553 | - | 7,058 | |||||||||||||||
Current deferred income taxes
|
- | 14,633 | 173 | (1,147 | ) | 13,659 | ||||||||||||||
Prepaid income taxes
|
4,043 | - | - | (1,400 | ) | 2,643 | ||||||||||||||
Prepaid expenses
|
564 | 10,656 | 227 | - | 11,447 | |||||||||||||||
Total current assets
|
61,874 | 463,809 | 10,357 | (338,369 | ) | 197,671 | ||||||||||||||
Investments of deferred compensation plans
|
- | - | 36,089 | - | 36,089 | |||||||||||||||
Properties and equipment, at cost less accumulated depreciation
|
10,984 | 78,236 | 2,714 | - | 91,934 | |||||||||||||||
Identifiable intangible assets less accumulated amortization
|
- | 57,177 | - | - | 57,177 | |||||||||||||||
Goodwill
|
- | 461,277 | 4,555 | - | 465,832 | |||||||||||||||
Other assets
|
19,025 | 2,005 | 13,797 | (23,904 | ) | 10,923 | ||||||||||||||
Investments in subsidiaries
|
874,692 | 24,298 | - | (898,990 | ) | - | ||||||||||||||
Total assets
|
$ | 966,575 | $ | 1,086,802 | $ | 67,512 | $ | (1,261,263 | ) | $ | 859,626 | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||||||||||||||
Accounts payable, including intercompany
|
$ | 325,916 | $ | 53,934 | $ | 4,444 | $ | (335,822 | ) | $ | 48,472 | |||||||||
Income taxes
|
1,019 | 3,816 | 1,503 | (1,400 | ) | 4,938 | ||||||||||||||
Accrued insurance
|
1,339 | 39,315 | - | - | 40,654 | |||||||||||||||
Accrued compensation
|
4,119 | 40,891 | 447 | - | 45,457 | |||||||||||||||
Other current liabilities
|
2,786 | 13,903 | 1,759 | (1,147 | ) | 17,301 | ||||||||||||||
Total current liabilities
|
335,179 | 151,859 | 8,153 | (338,369 | ) | 156,822 | ||||||||||||||
Deferred income taxes
|
- | 51,566 | - | (23,904 | ) | 27,662 | ||||||||||||||
Long-term debt
|
174,890 | - | - | - | 174,890 | |||||||||||||||
Deferred compensation liabilities
|
- | - | 35,599 | - | 35,599 | |||||||||||||||
Other liabilities
|
3,215 | 7,352 | 795 | - | 11,362 | |||||||||||||||
Stockholders' equity
|
453,291 | 876,025 | 22,965 | (898,990 | ) | 453,291 | ||||||||||||||
Total liabilities and stockholders' equity
|
$ | 966,575 | $ | 1,086,802 | $ | 67,512 | $ | (1,261,263 | ) | $ | 859,626 |
For the three months ended September 30, 2013
|
Guarantor
|
Non-Guarantor
|
Consolidating
|
|||||||||||||||||
|
Parent
|
Subsidiaries
|
Subsidiaries
|
Adjustments
|
Consolidated
|
|||||||||||||||
Continuing Operations
|
||||||||||||||||||||
Service revenues and sales
|
$ | - | $ | 333,750 | $ | 7,136 | $ | - | $ | 340,886 | ||||||||||
Cost of services provided and goods sold
|
- | 239,122 | 4,062 | - | 243,184 | |||||||||||||||
Selling, general and administrative expenses
|
5,562 | 42,113 | 1,195 | - | 48,870 | |||||||||||||||
Depreciation
|
240 | 6,497 | 234 | - | 6,971 | |||||||||||||||
Amortization
|
501 | 689 | - | - | 1,190 | |||||||||||||||
Other operating expenses
|
- | 11,461 | - | - | 11,461 | |||||||||||||||
Total costs and expenses
|
6,303 | 299,882 | 5,491 | - | 311,676 | |||||||||||||||
Income/ (loss) from operations
|
(6,303 | ) | 33,868 | 1,645 | - | 29,210 | ||||||||||||||
Interest expense
|
(3,579 | ) | (131 | ) | 210 | - | (3,500 | ) | ||||||||||||
Other (expense)/income - net
|
3,944 | (3,840 | ) | (194 | ) | - | (90 | ) | ||||||||||||
Income/ (loss) before income taxes
|
(5,938 | ) | 29,897 | 1,661 | - | 25,620 | ||||||||||||||
Income tax (provision)/ benefit
|
2,042 | (11,393 | ) | 1,163 | - | (8,188 | ) | |||||||||||||
Equity in net income of subsidiaries
|
21,328 | 2,086 | - | (23,414 | ) | - | ||||||||||||||
Net income
|
$ | 17,432 | $ | 20,590 | $ | 2,824 | $ | (23,414 | ) | $ | 17,432 | |||||||||
For the three months ended September 30, 2012
|
Guarantor
|
Non-Guarantor
|
Consolidating
|
|||||||||||||||||
|
Parent
|
Subsidiaries
|
Subsidiaries
|
Adjustments
|
Consolidated
|
|||||||||||||||
Continuing Operations
|
||||||||||||||||||||
Service revenues and sales
|
$ | - | $ | 347,384 | $ | 6,969 | $ | - | $ | 354,353 | ||||||||||
Cost of services provided and goods sold
|
- | 252,688 | 3,922 | - | 256,610 | |||||||||||||||
Selling, general and administrative expenses
|
5,991 | 43,992 | 2,972 | - | 52,955 | |||||||||||||||
Depreciation
|
237 | 6,099 | 221 | - | 6,557 | |||||||||||||||
Amortization
|
486 | 649 | - | - | 1,135 | |||||||||||||||
Other operating expenses
|
- | 1,126 | - | - | 1,126 | |||||||||||||||
Total costs and expenses
|
6,714 | 304,554 | 7,115 | - | 318,383 | |||||||||||||||
Income/ (loss) from operations
|
(6,714 | ) | 42,830 | (146 | ) | - | 35,970 | |||||||||||||
Interest expense
|
(3,517 | ) | (211 | ) | (15 | ) | - | (3,743 | ) | |||||||||||
Other (expense)/income - net
|
4,450 | (4,184 | ) | 1,574 | - | 1,840 | ||||||||||||||
Income/ (loss) before income taxes
|
(5,781 | ) | 38,435 | 1,413 | - | 34,067 | ||||||||||||||
Income tax (provision)/ benefit
|
1,877 | (14,560 | ) | (539 | ) | - | (13,222 | ) | ||||||||||||
Equity in net income of subsidiaries
|
24,749 | 885 | - | (25,634 | ) | - | ||||||||||||||
Net income
|
$ | 20,845 | $ | 24,760 | $ | 874 | $ | (25,634 | ) | $ | 20,845 | |||||||||
For the nine months ended September 30, 2013
|
Guarantor
|
Non-Guarantor
|
Consolidating
|
|||||||||||||||||
|
Parent
|
Subsidiaries
|
Subsidiaries
|
Adjustments
|
Consolidated
|
|||||||||||||||
Continuing Operations
|
||||||||||||||||||||
Service revenues and sales
|
$ | - | $ | 1,042,449 | $ | 22,276 | $ | - | $ | 1,064,725 | ||||||||||
Cost of services provided and goods sold
|
- | 750,230 | 12,620 | - | 762,850 | |||||||||||||||
Selling, general and administrative expenses
|
17,290 | 133,419 | 6,828 | - | 157,537 | |||||||||||||||
Depreciation
|
718 | 19,241 | 706 | - | 20,665 | |||||||||||||||
Amortization
|
1,480 | 2,018 | - | - | 3,498 | |||||||||||||||
Other operating expenses
|
- | 26,221 | - | - | 26,221 | |||||||||||||||
Total costs and expenses
|
19,488 | 931,129 | 20,154 | - | 970,771 | |||||||||||||||
Income/ (loss) from operations
|
(19,488 | ) | 111,320 | 2,122 | - | 93,954 | ||||||||||||||
Interest expense
|
(11,089 | ) | (384 | ) | 182 | - | (11,291 | ) | ||||||||||||
Other (expense)/income - net
|
12,526 | (11,549 | ) | 2,335 | - | 3,312 | ||||||||||||||
Income/ (loss) before income taxes
|
(18,051 | ) | 99,387 | 4,639 | - | 85,975 | ||||||||||||||
Income tax (provision)/ benefit
|
6,036 | (37,755 | ) | 62 | - | (31,657 | ) | |||||||||||||
Equity in net income of subsidiaries
|
66,333 | 4,057 | - | (70,390 | ) | - | ||||||||||||||
Net income
|
$ | 54,318 | $ | 65,689 | $ | 4,701 | $ | (70,390 | ) | $ | 54,318 | |||||||||
For the nine months ended September 30, 2012
|
Guarantor
|
Non-Guarantor
|
Consolidating
|
|||||||||||||||||
|
Parent
|
Subsidiaries
|
Subsidiaries
|
Adjustments
|
Consolidated
|
|||||||||||||||
Continuing Operations
|
||||||||||||||||||||
Service revenues and sales
|
$ | - | $ | 1,040,015 | $ | 21,451 | $ | - | $ | 1,061,466 | ||||||||||
Cost of services provided and goods sold
|
- | 759,549 | 11,874 | - | 771,423 | |||||||||||||||
Selling, general and administrative expenses
|
17,124 | 131,695 | 7,073 | - | 155,892 | |||||||||||||||
Depreciation
|
704 | 17,816 | 658 | - | 19,178 | |||||||||||||||
Amortization
|
1,437 | 1,938 | - | - | 3,375 | |||||||||||||||
Other operating expenses
|
- | 1,126 | - | - | 1,126 | |||||||||||||||
Total costs and expenses
|
19,265 | 912,124 | 19,605 | - | 950,994 | |||||||||||||||
Income/ (loss) from operations
|
(19,265 | ) | 127,891 | 1,846 | - | 110,472 | ||||||||||||||
Interest expense
|
(10,437 | ) | (551 | ) | (44 | ) | - | (11,032 | ) | |||||||||||
Other (expense)/income - net
|
13,196 | (12,982 | ) | 2,751 | - | 2,965 | ||||||||||||||
Income/ (loss) before income taxes
|
(16,506 | ) | 114,358 | 4,553 | - | 102,405 | ||||||||||||||
Income tax (provision)/ benefit
|
5,376 | (43,442 | ) | (1,775 | ) | - | (39,841 | ) | ||||||||||||
Equity in net income of subsidiaries
|
73,694 | 2,857 | - | (76,551 | ) | - | ||||||||||||||
Net income
|
$ | 62,564 | $ | 73,773 | $ | 2,778 | $ | (76,551 | ) | $ | 62,564 |
For the nine months ended September 30, 2013
|
Guarantor
|
Non-Guarantor
|
||||||||||||||
Parent
|
Subsidiaries
|
Subsidiaries
|
Consolidated
|
|||||||||||||
Cash Flow from Operating Activities:
|
||||||||||||||||
Net cash provided by operating activities
|
$ | 16,336 | $ | 118,998 | $ | 524 | $ | 135,858 | ||||||||
Cash Flow from Investing Activities:
|
||||||||||||||||
Capital expenditures
|
(96 | ) | (18,297 | ) | (494 | ) | (18,887 | ) | ||||||||
Business combinations, net of cash acquired
|
- | (2,210 | ) | - | (2,210 | ) | ||||||||||
Other sources/(uses) - net
|
(53 | ) | 171 | 21 | 139 | |||||||||||
Net cash used by investing activities
|
(149 | ) | (20,336 | ) | (473 | ) | (20,958 | ) | ||||||||
Cash Flow from Financing Activities:
|
||||||||||||||||
Increase /(decrease) in cash overdrafts payable
|
5,378 | (16,306 | ) | - | (10,928 | ) | ||||||||||
Change in intercompany accounts
|
96,731 | (97,541 | ) | 810 | - | |||||||||||
Dividends paid
|
(10,459 | ) | - | - | (10,459 | ) | ||||||||||
Debt issuance costs
|
(1,108 | ) | - | - | (1,108 | ) | ||||||||||
Capital stock surrendered to pay taxes on stock-based compensation
|
(4,280 | ) | - | - | (4,280 | ) | ||||||||||
Purchases of treasury stock
|
(89,611 | ) | - | - | (89,611 | ) | ||||||||||
Proceeds from exercise of stock options
|
13,125 | - | - | 13,125 | ||||||||||||
Excess tax benefit on share-based compensation
|
2,507 | - | - | 2,507 | ||||||||||||
Other sources/(uses) - net
|
30 | - | (503 | ) | (473 | ) | ||||||||||
Net cash provided/(used) by financing activities
|
12,313 | (113,847 | ) | 307 | (101,227 | ) | ||||||||||
Net increase/(decrease) in cash and cash equivalents
|
28,500 | (15,185 | ) | 358 | 13,673 | |||||||||||
Cash and cash equivalents at beginning of year
|
56,342 | 4,674 | 8,515 | 69,531 | ||||||||||||
Cash and cash equivalents at end of period
|
$ | 84,842 | $ | (10,511 | ) | $ | 8,873 | $ | 83,204 | |||||||
For the nine months ended September 30, 2012
|
Guarantor
|
Non-Guarantor
|
||||||||||||||
Parent
|
Subsidiaries
|
Subsidiaries
|
Consolidated
|
|||||||||||||
Cash Flow from Operating Activities:
|
||||||||||||||||
Net cash provided by operating activities
|
$ | 1,486 | $ | 74,206 | $ | 1,645 | $ | 77,337 | ||||||||
Cash Flow from Investing Activities:
|
||||||||||||||||
Capital expenditures
|
(196 | ) | (25,491 | ) | (802 | ) | (26,489 | ) | ||||||||
Business combinations, net of cash acquired
|
- | (5,900 | ) | - | (5,900 | ) | ||||||||||
Other sources/(uses) - net
|
201 | 359 | (32 | ) | 528 | |||||||||||
Net cash provided/(used) by investing activities
|
5 | (31,032 | ) | (834 | ) | (31,861 | ) | |||||||||
Cash Flow from Financing Activities:
|
||||||||||||||||
Increase/(decrease) in cash overdrafts payable
|
(4,580 | ) | 1,281 | - | (3,299 | ) | ||||||||||
Change in intercompany accounts
|
40,489 | (40,022 | ) | (467 | ) | - | ||||||||||
Dividends paid
|
(9,641 | ) | - | - | (9,641 | ) | ||||||||||
Capital stock surrendered to pay taxes on stock-based compensation
|
(3,236 | ) | - | - | (3,236 | ) | ||||||||||
Purchases of treasury stock
|
(11,724 | ) | - | - | (11,724 | ) | ||||||||||
Proceeds from exercise of stock options
|
10,483 | - | - | 10,483 | ||||||||||||
Excess tax benefit on share-based compensation
|
2,714 | - | - | 2,714 | ||||||||||||
Other sources/(uses) - net
|
(17 | ) | (1 | ) | 460 | 442 | ||||||||||
Net cash provided/(used) by financing activities
|
24,488 | (38,742 | ) | (7 | ) | (14,261 | ) | |||||||||
Net increase in cash and cash equivalents
|
25,979 | 4,432 | 804 | 31,215 | ||||||||||||
Cash and cash equivalents at beginning of year
|
32,470 | (1,422 | ) | 7,033 | 38,081 | |||||||||||
Cash and cash equivalents at end of period
|
$ | 58,449 | $ | 3,010 | $ | 7,837 | $ | 69,296 |
|
Three months ended September 30,
|
Nine months ended September 30,
|
||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Service revenues and sales
|
$ | 340,886 | $ | 354,353 | $ | 1,064,725 | $ | 1,061,466 | ||||||||
Net income
|
$ | 17,432 | $ | 20,845 | $ | 54,318 | $ | 62,564 | ||||||||
Diluted EPS
|
$ | 0.94 | $ | 1.07 | $ | 2.89 | $ | 3.23 | ||||||||
Adjusted net income
|
$ | 25,098 | $ | 24,749 | $ | 78,470 | $ | 72,419 | ||||||||
Adjusted diluted EPS
|
$ | 1.36 | $ | 1.28 | $ | 4.17 | $ | 3.74 | ||||||||
Adjusted EBITDA
|
$ | 49,739 | $ | 49,020 | $ | 153,978 | $ | 143,533 | ||||||||
Adjusted EBITDA as a % of revenue
|
14.6 | % | 13.8 | % | 14.5 | % | 13.5 | % |
|
•
|
A $39.2 million increase in other current liabilities primarily due to tentative litigation settlements and the Medicare cap liability.
|
|
•
|
A $13.2 million decrease in accounts receivable related to the timing of receipts.
|
|
•
|
A $11.4 million increase in current deferred income taxes due to the accrual of tentative litigation settlements.
|
|
•
|
A reclass of our convertible notes from long-term to current as they are due in May 2014.
|
Increase/(Decrease)
|
|||||||
Amount
|
Percent
|
||||||
VITAS
|
|||||||
Routine homecare
|
$
|
(1,288
|
) |
(0.7
|
) | ||
Continuous care
|
(6,264
|
) |
(14.9
|
) | |||
General inpatient
|
(3,258
|
) |
(11.6
|
) | |||
Medicare cap
|
(3,179
|
) |
-
|
||||
Roto-Rooter
|
|||||||
Plumbing
|
(346
|
) |
(0.8
|
) | |||
Drain cleaning
|
(155
|
) |
(0.5
|
) | |||
Contractor operations
|
1,112
|
16.0
|
|||||
HVAC operations
|
1
|
100.0
|
|||||
Other
|
(90
|
) |
(1.7
|
) | |||
Total
|
$
|
(13,467
|
) |
(3.8
|
) |
Three months ended September 30,
|
|||||||
2013
|
2012
|
||||||
SG&A expenses before the impact of market gains/(losses) of deferred compensation
|
|||||||
plans, long-term incentive compensation, and OIG investigation expenses
|
$ | 49,705 | $ | 50,896 | |||
Long-term incentive compensation
|
(55 | ) | - | ||||
Expenses/(cost recovery) related to OIG investigation
|
(591 | ) | 483 | ||||
Impact of market value gains/(losses) on liabilities held in
|
|||||||
deferred compensation trusts
|
(189 | ) | 1,576 | ||||
Total SG&A expenses
|
$ | 48,870 | $ | 52,955 |
Three months ended September 30,
|
|||||||
2013
|
2012
|
||||||
Litigation settlement of VITAS segment (a)
|
$ | 10,500 | $ | - | |||
Settlements of Roto-Rooter segment (b)
|
961 | - | |||||
Severance and other operating costs related
|
|||||||
to closing Roto-Rooter's HVAC business
|
- | 1,126 | |||||
Total other operating expenses
|
$ | 11,461 | $ | 1,126 | |||
(a) Santos claims discussed in Note 10.
|
|||||||
(b) Estimated cost of certain customer claims currently under negotiation.
|
Three months ended September 30,
|
||||||||
2013
|
2012
|
|||||||
Market value gains/(losses) on assets held in deferred
|
||||||||
compensation trusts
|
$ | (189 | ) | $ | 1,576 | |||
Loss on disposal of property and equipment
|
(101 | ) | (80 | ) | ||||
Interest income
|
192 | 291 | ||||||
Other
|
8 | 53 | ||||||
Total other income/(expense) - net
|
$ | (90 | ) | $ | 1,840 |
Three months ended September 30,
|
||||||||
2013
|
2012
|
|||||||
VITAS
|
||||||||
Litigation settlement
|
$ | (6,510 | ) | $ | - | |||
Legal expenses of OIG investigation
|
367 | (300 | ) | |||||
Acquisition expenses
|
(11 | ) | (1 | ) | ||||
Roto-Rooter
|
||||||||
Litigation settlement
|
(584 | ) | - | |||||
Expenses related to litigation settlements
|
(269 | ) | (70 | ) | ||||
HVAC shut down costs
|
- | (649 | ) | |||||
Acquisition expenses
|
(1 | ) | (52 | ) | ||||
Corporate
|
||||||||
Stock option expense
|
(1,030 | ) | (1,516 | ) | ||||
Noncash impact of change in accounting for convertible debt
|
(1,375 | ) | (1,272 | ) | ||||
Uncertain tax position adjustments
|
1,782 | - | ||||||
Long-term incentive compensation
|
(34 | ) | - | |||||
Expenses related to securities litigation
|
(1 | ) | (44 | ) | ||||
Total
|
$ | (7,666 | ) | $ | (3,904 | ) |
Increase/(Decrease)
|
||||||||
Amount
|
Percent
|
|||||||
VITAS
|
$ | (7,332 | ) | (33.4 | ) | |||
Roto-Rooter
|
2,036 | 33.1 | ||||||
Corporate
|
1,883 | 26.0 | ||||||
$ | (3,413 | ) | (16.4 | ) |
Increase/(Decrease)
|
|||||||
Amount
|
Percent
|
||||||
VITAS
|
|||||||
Routine homecare
|
$
|
15,899
|
2.8
|
||||
Continuous care
|
(8,015
|
) |
(6.3
|
) | |||
General inpatient
|
(7,300
|
) |
(8.4
|
||||
Medicare cap
|
(5,738
|
) |
(222.7
|
) | |||
Roto-Rooter
|
|||||||
Plumbing
|
685
|
0.5
|
|||||
Drain cleaning
|
5,242
|
5.2
|
|||||
Contractor operations
|
3,984
|
19.5
|
|||||
HVAC operations
|
(1,121
|
) |
(100.0
|
) | |||
Other
|
(377
|
) |
(2.2
|
) | |||
Total
|
$
|
3,259
|
0.3
|
Nine months ended September 30,
|
||||||||
2013
|
2012
|
|||||||
SG&A expenses before long-term incentive
|
||||||||
compensation and the impact of market gains and
|
||||||||
losses of deferred compensation plans
|
$ | 154,908 | $ | 152,382 | ||||
Long-term incentive compensation
|
(1,161 | ) | - | |||||
Expenses related to OIG investigation
|
1,444 | 749 | ||||||
Impact of market value gains on liabilities held in
|
||||||||
deferred compensation trusts
|
2,346 | 2,761 | ||||||
Total SG&A expenses
|
$ | 157,537 | $ | 155,892 |
Nine months ended September 30,
|
|||||||
2013
|
2012
|
||||||
Litigation settlement of VITAS segment (a)
|
$ | 10,500 | $ | - | |||
Settlements of Roto-Rooter segment (b)
|
15,721 | - | |||||
Severance and other operating costs related
|
|||||||
to closing Roto-Rooter's HVAC business
|
- | 1,126 | |||||
Total other operating expenses
|
$ | 26,221 | $ | 1,126 | |||
(a) Santos claims discussed in Note 10.
|
|||||||
(b) Morangelli claims discussed in Note 10 and estimated cost of certain customer claims currently under negotiation.
|
Nine months ended September 30,
|
||||||||
2013
|
2012
|
|||||||
Market value gains on assets held in deferred
|
||||||||
compensation trusts
|
$ | 2,346 | $ | 2,761 | ||||
Loss on disposal of property and equipment
|
(180 | ) | (228 | ) | ||||
Interest income
|
1,165 | 401 | ||||||
Other
|
(19 | ) | 31 | |||||
Total other income - net
|
$ | 3,312 | $ | 2,965 |
Nine Months Ended September 30,
|
||||||||
2013
|
2012
|
|||||||
VITAS
|
||||||||
Litigation settlement
|
$ | (6,510 | ) | $ | - | |||
Legal expenses of OIG investigation
|
(895 | ) | (465 | ) | ||||
Acquisition expenses
|
(23 | ) | (1 | ) | ||||
Roto-Rooter
|
||||||||
Litigation settlements
|
(9,551 | ) | - | |||||
Expenses related to litigation settlements
|
(699 | ) | (512 | ) | ||||
HVAC shut down costs
|
- | (649 | ) | |||||
Expenses of severance arrangements
|
(184 | ) | - | |||||
Acquisition expenses
|
(2 | ) | (73 | ) | ||||
Corporate
|
||||||||
Stock option expense
|
(2,993 | ) | (4,243 | ) | ||||
Noncash impact of change in accounting for convertible debt
|
(4,046 | ) | (3,744 | ) | ||||
Uncertain tax position adjustments
|
1,782 | - | ||||||
Long-term incentive compensation
|
(734 | ) | - | |||||
Expenses of securities litigation
|
(3 | ) | (168 | ) | ||||
Loss on extinguishment of debt
|
(294 | ) | - | |||||
Total
|
$ | (24,152 | ) | $ | (9,855 | ) |
Increase/(Decrease)
|
|||||||
Amount
|
Percent
|
||||||
VITAS
|
$ | (6,762 | ) | (10.9 | ) | ||
Roto-Rooter
|
(2,497 | ) | (11.5 | ) | |||
Corporate
|
1,013 | 4.8 | |||||
$ | (8,246 | ) | (13.2 | ) |
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
|
||||||||||||||||
CONSOLIDATING STATEMENT OF INCOME
|
||||||||||||||||
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2013
|
||||||||||||||||
(in thousands)(unaudited)
|
||||||||||||||||
Chemed
|
||||||||||||||||
VITAS
|
Roto-Rooter
|
Corporate
|
Consolidated
|
|||||||||||||
2013 (a)
|
||||||||||||||||
Service revenues and sales
|
$ | 254,001 | $ | 86,885 | $ | - | $ | 340,886 | ||||||||
Cost of services provided and goods sold
|
197,387 | 45,797 | - | 243,184 | ||||||||||||
Selling, general and administrative expenses
|
18,637 | 25,009 | 5,224 | 48,870 | ||||||||||||
Depreciation
|
4,545 | 2,292 | 134 | 6,971 | ||||||||||||
Amortization
|
538 | 151 | 501 | 1,190 | ||||||||||||
Other operating expenses
|
10,500 | 961 | - | 11,461 | ||||||||||||
Total costs and expenses
|
231,607 | 74,210 | 5,859 | 311,676 | ||||||||||||
Income/(loss) from operations
|
22,394 | 12,675 | (5,859 | ) | 29,210 | |||||||||||
Interest expense
|
(48 | ) | (82 | ) | (3,370 | ) | (3,500 | ) | ||||||||
Intercompany interest income/(expense)
|
1,231 | 579 | (1,810 | ) | - | |||||||||||
Other income/(expense)—net
|
73 | 8 | (171 | ) | (90 | ) | ||||||||||
Income/(expense) before income taxes
|
23,650 | 13,180 | (11,210 | ) | 25,620 | |||||||||||
Income taxes
|
(9,042 | ) | (4,999 | ) | 5,853 | (8,188 | ) | |||||||||
Net income/(loss)
|
$ | 14,608 | $ | 8,181 | $ | (5,357 | ) | $ | 17,432 | |||||||
(a) The following amounts are included in net income (in thousands):
|
||||||||||||||||
Chemed
|
||||||||||||||||
VITAS
|
Roto-Rooter
|
Corporate
|
Consolidated
|
|||||||||||||
Pretax benefit/(cost):
|
||||||||||||||||
Stock option expense
|
$ | - | $ | - | $ | (1,629 | ) | $ | (1,629 | ) | ||||||
Noncash impact of accounting for convertible debt
|
- | - | (2,174 | ) | (2,174 | ) | ||||||||||
Long-term incentive compensation
|
- | - | (55 | ) | (55 | ) | ||||||||||
Litigation settlement
|
(10,500 | ) | (961 | ) | - | (11,461 | ) | |||||||||
Expenses related to litigation settlements
|
- | (443 | ) | - | (443 | ) | ||||||||||
Expenses related to securities litigation
|
- | - | (1 | ) | (1 | ) | ||||||||||
Acquisition expenses
|
(18 | ) | (3 | ) | - | (21 | ) | |||||||||
Expenses/(cost recovery) related to OIG investigation
|
591 | - | - | 591 | ||||||||||||
Total
|
$ | (9,927 | ) | $ | (1,407 | ) | $ | (3,859 | ) | $ | (15,193 | ) | ||||
Chemed
|
||||||||||||||||
VITAS
|
Roto-Rooter
|
Corporate
|
Consolidated
|
|||||||||||||
After-tax benefit/(cost):
|
||||||||||||||||
Stock option expense
|
$ | - | $ | - | $ | (1,030 | ) | $ | (1,030 | ) | ||||||
Noncash impact of accounting for convertible debt
|
- | - | (1,375 | ) | (1,375 | ) | ||||||||||
Uncertain tax position adjustments
|
- | - | 1,782 | 1,782 | ||||||||||||
Long-term incentive compensation
|
- | - | (34 | ) | (34 | ) | ||||||||||
Litigation settlement
|
(6,510 | ) | (584 | ) | - | (7,094 | ) | |||||||||
Expenses related to litigation settlements
|
- | (269 | ) | - | (269 | ) | ||||||||||
Expenses related to securities litigation
|
- | - | (1 | ) | (1 | ) | ||||||||||
Acquisition expenses
|
(11 | ) | (1 | ) | - | (12 | ) | |||||||||
Expenses related to OIG investigation
|
367 | - | - | 367 | ||||||||||||
Total
|
$ | (6,154 | ) | $ | (854 | ) | $ | (658 | ) | $ | (7,666 | ) |
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
|
||||||||||||||||
CONSOLIDATING STATEMENT OF INCOME
|
||||||||||||||||
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2012
|
||||||||||||||||
(in thousands)(unaudited)
|
||||||||||||||||
Chemed
|
||||||||||||||||
VITAS
|
Roto-Rooter
|
Corporate
|
Consolidated
|
|||||||||||||
2012 (a)
|
||||||||||||||||
Service revenues and sales
|
$ | 267,990 | $ | 86,363 | $ | - | $ | 354,353 | ||||||||
Cost of services provided and goods sold
|
208,473 | 48,137 | - | 256,610 | ||||||||||||
Selling, general and administrative expenses
|
20,148 | 25,350 | 7,457 | 52,955 | ||||||||||||
Depreciation
|
4,333 | 2,093 | 131 | 6,557 | ||||||||||||
Amortization
|
489 | 160 | 486 | 1,135 | ||||||||||||
Other operating expenses
|
- | 1,126 | - | 1,126 | ||||||||||||
Total costs and expenses
|
233,443 | 76,866 | 8,074 | 318,383 | ||||||||||||
Income/(loss) from operations
|
34,547 | 9,497 | (8,074 | ) | 35,970 | |||||||||||
Interest expense
|
(62 | ) | (150 | ) | (3,531 | ) | (3,743 | ) | ||||||||
Intercompany interest income/(expense)
|
795 | 396 | (1,191 | ) | - | |||||||||||
Other income/(expense)—net
|
176 | 63 | 1,601 | 1,840 | ||||||||||||
Income/(expense) before income taxes
|
35,456 | 9,806 | (11,195 | ) | 34,067 | |||||||||||
Income taxes
|
(13,516 | ) | (3,661 | ) | 3,955 | (13,222 | ) | |||||||||
Net income/(loss)
|
$ | 21,940 | $ | 6,145 | $ | (7,240 | ) | $ | 20,845 | |||||||
(a) The following amounts are included in net income (in thousands):
|
||||||||||||||||
Chemed
|
||||||||||||||||
VITAS
|
Roto-Rooter
|
Corporate
|
Consolidated
|
|||||||||||||
Pretax benefit/(cost):
|
||||||||||||||||
Stock option expense
|
$ | - | $ | - | $ | (2,397 | ) | $ | (2,397 | ) | ||||||
Noncash impact of accounting for convertible debt
|
- | - | (2,011 | ) | (2,011 | ) | ||||||||||
Expenses related to securities litigation
|
- | - | (68 | ) | (68 | ) | ||||||||||
Expenses related to litigation settlements
|
- | (116 | ) | - | (116 | ) | ||||||||||
Acquisition expenses
|
(2 | ) | (85 | ) | - | (87 | ) | |||||||||
Expenses of OIG investigation
|
(483 | ) | - | - | (483 | ) | ||||||||||
HVAC shut down costs
|
- | (1,126 | ) | - | (1,126 | ) | ||||||||||
Total
|
$ | (485 | ) | $ | (1,327 | ) | $ | (4,476 | ) | $ | (6,288 | ) | ||||
Chemed
|
||||||||||||||||
VITAS
|
Roto-Rooter
|
Corporate
|
Consolidated
|
|||||||||||||
After-tax benefit/(cost):
|
||||||||||||||||
Stock option expense
|
$ | - | $ | - | $ | (1,516 | ) | $ | (1,516 | ) | ||||||
Noncash impact of accounting for convertible debt
|
- | - | (1,272 | ) | (1,272 | ) | ||||||||||
Expenses related to securities litigation
|
- | - | (44 | ) | (44 | ) | ||||||||||
Expenses related to litigation settlements
|
- | (70 | ) | - | (70 | ) | ||||||||||
Acquisition expenses
|
(1 | ) | (52 | ) | - | (53 | ) | |||||||||
Expenses of OIG investigation
|
(300 | ) | - | - | (300 | ) | ||||||||||
HVAC shut down costs
|
- | (649 | ) | - | (649 | ) | ||||||||||
Total
|
$ | (301 | ) | $ | (771 | ) | $ | (2,832 | ) | $ | (3,904 | ) |
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
|
||||||||||||||||
CONSOLIDATING STATEMENT OF INCOME
|
||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013
|
||||||||||||||||
(in thousands)(unaudited)
|
||||||||||||||||
Chemed
|
||||||||||||||||
VITAS
|
Roto-Rooter
|
Corporate
|
Consolidated
|
|||||||||||||
2013 (a)
|
||||||||||||||||
Service revenues and sales
|
$ | 788,896 | $ | 275,829 | $ | - | $ | 1,064,725 | ||||||||
Cost of services provided and goods sold
|
616,334 | 146,516 | - | 762,850 | ||||||||||||
Selling, general and administrative expenses
|
61,304 | 76,901 | 19,332 | 157,537 | ||||||||||||
Depreciation
|
13,579 | 6,685 | 401 | 20,665 | ||||||||||||
Amortization
|
1,564 | 454 | 1,480 | 3,498 | ||||||||||||
Other operating expenses
|
10,500 | 15,721 | - | 26,221 | ||||||||||||
Total costs and expenses
|
703,281 | 246,277 | 21,213 | 970,771 | ||||||||||||
Income/(loss) from operations
|
85,615 | 29,552 | (21,213 | ) | 93,954 | |||||||||||
Interest expense
|
(145 | ) | (239 | ) | (10,907 | ) | (11,291 | ) | ||||||||
Intercompany interest income/(expense)
|
2,940 | 1,443 | (4,383 | ) | - | |||||||||||
Other income/(expense)—net
|
878 | 42 | 2,392 | 3,312 | ||||||||||||
Income/(expense) before income taxes
|
89,288 | 30,798 | (34,111 | ) | 85,975 | |||||||||||
Income taxes
|
(34,051 | ) | (11,580 | ) | 13,974 | (31,657 | ) | |||||||||
Net income/(loss)
|
$ | 55,237 | $ | 19,218 | $ | (20,137 | ) | $ | 54,318 | |||||||
(a) The following amounts are included in net income (in thousands):
|
||||||||||||||||
Chemed
|
||||||||||||||||
VITAS
|
Roto-Rooter
|
Corporate
|
Consolidated
|
|||||||||||||
Pretax benefit/(cost):
|
||||||||||||||||
Stock option expense
|
$ | - | $ | - | $ | (4,732 | ) | $ | (4,732 | ) | ||||||
Noncash impact of accounting for convertible debt
|
- | - | (6,397 | ) | (6,397 | ) | ||||||||||
Long-term incentive compensation
|
- | - | (1,161 | ) | (1,161 | ) | ||||||||||
Expenses of severance arrangements
|
- | (302 | ) | - | (302 | ) | ||||||||||
Loss on extinguishment of debt
|
- | - | (465 | ) | (465 | ) | ||||||||||
Litigation settlement
|
(10,500 | ) | (15,721 | ) | - | (26,221 | ) | |||||||||
Expenses related to litigation settlements
|
- | (1,151 | ) | - | (1,151 | ) | ||||||||||
Expenses related to securities litigation
|
- | - | (4 | ) | (4 | ) | ||||||||||
Acquisition expenses
|
(38 | ) | (4 | ) | - | (42 | ) | |||||||||
Expenses related to OIG investigation
|
(1,444 | ) | - | - | (1,444 | ) | ||||||||||
Total
|
$ | (11,982 | ) | $ | (17,178 | ) | $ | (12,759 | ) | $ | (41,919 | ) | ||||
Chemed
|
||||||||||||||||
VITAS
|
Roto-Rooter
|
Corporate
|
Consolidated
|
|||||||||||||
After-tax benefit/(cost):
|
||||||||||||||||
Stock option expense
|
$ | - | $ | - | $ | (2,993 | ) | $ | (2,993 | ) | ||||||
Noncash impact of accounting for convertible debt
|
- | - | (4,046 | ) | (4,046 | ) | ||||||||||
Long-term incentive compensation
|
- | - | (734 | ) | (734 | ) | ||||||||||
Uncertain tax position adjustments
|
- | - | 1,782 | 1,782 | ||||||||||||
Expenses of severance arrangements
|
- | (184 | ) | - | (184 | ) | ||||||||||
Loss on extinguishment of debt
|
- | - | (294 | ) | (294 | ) | ||||||||||
Litigation settlement
|
(6,510 | ) | (9,551 | ) | - | (16,061 | ) | |||||||||
Expenses related to litigation settlements
|
- | (699 | ) | - | (699 | ) | ||||||||||
Expenses related to securities litigation
|
- | - | (3 | ) | (3 | ) | ||||||||||
Acquisition expenses
|
(23 | ) | (2 | ) | - | (25 | ) | |||||||||
Expenses related to OIG investigation
|
(895 | ) | - | - | (895 | ) | ||||||||||
Total
|
$ | (7,428 | ) | $ | (10,436 | ) | $ | (6,288 | ) | $ | (24,152 | ) | ||||
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
|
||||||||||||||||
CONSOLIDATING STATEMENT OF INCOME
|
||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012
|
||||||||||||||||
(in thousands)(unaudited)
|
||||||||||||||||
Chemed
|
||||||||||||||||
VITAS
|
Roto-Rooter
|
Corporate
|
Consolidated
|
|||||||||||||
2012 (a)
|
||||||||||||||||
Service revenues and sales
|
$ | 794,050 | $ | 267,416 | $ | - | $ | 1,061,466 | ||||||||
Cost of services provided and goods sold
|
621,933 | 149,490 | - | 771,423 | ||||||||||||
Selling, general and administrative expenses
|
60,367 | 75,875 | 19,650 | 155,892 | ||||||||||||
Depreciation
|
12,521 | 6,264 | 393 | 19,178 | ||||||||||||
Amortization
|
1,467 | 471 | 1,437 | 3,375 | ||||||||||||
Other operating expenses
|
- | 1,126 | - | 1,126 | ||||||||||||
Total costs and expenses
|
696,288 | 233,226 | 21,480 | 950,994 | ||||||||||||
Income/(loss) from operations
|
97,762 | 34,190 | (21,480 | ) | 110,472 | |||||||||||
Interest expense
|
(188 | ) | (364 | ) | (10,480 | ) | (11,032 | ) | ||||||||
Intercompany interest income/(expense)
|
2,361 | 1,221 | (3,582 | ) | - | |||||||||||
Other income/(expense)—net
|
144 | 9 | 2,812 | 2,965 | ||||||||||||
Income/(expense) before income taxes
|
100,079 | 35,056 | (32,730 | ) | 102,405 | |||||||||||
Income taxes
|
(38,080 | ) | (13,341 | ) | 11,580 | (39,841 | ) | |||||||||
Net income/(loss)
|
$ | 61,999 | $ | 21,715 | $ | (21,150 | ) | $ | 62,564 | |||||||
(a) The following amounts are included in net income (in thousands):
|
||||||||||||||||
Chemed
|
||||||||||||||||
VITAS
|
Roto-Rooter
|
Corporate
|
Consolidated
|
|||||||||||||
Pretax benefit/(cost):
|
||||||||||||||||
Stock option expense
|
$ | - | $ | - | $ | (6,709 | ) | $ | (6,709 | ) | ||||||
Noncash impact of accounting for convertible debt
|
- | - | (5,919 | ) | (5,919 | ) | ||||||||||
Expenses related to securities litigation
|
- | - | (265 | ) | (265 | ) | ||||||||||
Expenses related to litigation settlements
|
- | (843 | ) | - | (843 | ) | ||||||||||
Acquisition expenses
|
(2 | ) | (120 | ) | - | (122 | ) | |||||||||
Expenses related to OIG investigation
|
(749 | ) | - | - | (749 | ) | ||||||||||
HVAC shut down costs
|
- | (1,126 | ) | - | (1,126 | ) | ||||||||||
Total
|
$ | (751 | ) | $ | (2,089 | ) | $ | (12,893 | ) | $ | (15,733 | ) | ||||
Chemed
|
||||||||||||||||
VITAS
|
Roto-Rooter
|
Corporate
|
Consolidated
|
|||||||||||||
After-tax benefit/(cost):
|
||||||||||||||||
Stock option expense
|
$ | - | $ | - | $ | (4,243 | ) | $ | (4,243 | ) | ||||||
Noncash impact of accounting for convertible debt
|
- | - | (3,744 | ) | (3,744 | ) | ||||||||||
Expenses related to securities litigation
|
- | - | (168 | ) | (168 | ) | ||||||||||
Expenses related to litigation settlements
|
- | (512 | ) | - | (512 | ) | ||||||||||
Acquisition expenses
|
(1 | ) | (73 | ) | - | (74 | ) | |||||||||
Expenses related to OIG investigation
|
(465 | ) | - | - | (465 | ) | ||||||||||
HVAC shut down costs
|
- | (649 | ) | - | (649 | ) | ||||||||||
Total
|
$ | (466 | ) | $ | (1,234 | ) | $ | (8,155 | ) | $ | (9,855 | ) | ||||
Consolidating Summary and Reconciliation of
Adjusted EBITDA
|
||||||||||||||||
Chemed Corporation and Subsidiary Companies
|
||||||||||||||||
(in thousands)
|
Chemed
|
|||||||||||||||
For the three months ended September 30, 2013
|
VITAS
|
Roto-Rooter
|
Corporate
|
Consolidated
|
||||||||||||
Net income/(loss)
|
$ | 14,608 | $ | 8,181 | $ | (5,357 | ) | $ | 17,432 | |||||||
Add/(deduct):
|
||||||||||||||||
Interest expense
|
48 | 82 | 3,370 | 3,500 | ||||||||||||
Income taxes
|
9,042 | 4,999 | (5,853 | ) | 8,188 | |||||||||||
Depreciation
|
4,545 | 2,292 | 134 | 6,971 | ||||||||||||
Amortization
|
538 | 151 | 501 | 1,190 | ||||||||||||
EBITDA
|
28,781 | 15,705 | (7,205 | ) | 37,281 | |||||||||||
Add/(deduct):
|
||||||||||||||||
Intercompany interest expense/(income)
|
(1,231 | ) | (579 | ) | 1,810 | - | ||||||||||
Interest income
|
(163 | ) | (10 | ) | (19 | ) | (192 | ) | ||||||||
Expenses/(cost recovery) related to OIG investigation
|
(591 | ) | - | - | (591 | ) | ||||||||||
Acquisition expenses
|
18 | 3 | - | 21 | ||||||||||||
Litigation settlements
|
10,500 | 961 | - | 11,461 | ||||||||||||
Expenses related to litigation settlements
|
- | 443 | - | 443 | ||||||||||||
Advertising cost adjustment
|
- | (369 | ) | - | (369 | ) | ||||||||||
Stock option expense
|
- | - | 1,629 | 1,629 | ||||||||||||
Long-term incentive compensation
|
- | - | 55 | 55 | ||||||||||||
Expenses related to securities litigation
|
- | - | 1 | 1 | ||||||||||||
Adjusted EBITDA
|
$ | 37,314 | $ | 16,154 | $ | (3,729 | ) | $ | 49,739 | |||||||
Chemed
|
||||||||||||||||
For the three months ended September 30, 2012
|
VITAS
|
Roto-Rooter
|
Corporate
|
Consolidated
|
||||||||||||
Net income/(loss)
|
$ | 21,940 | $ | 6,145 | $ | (7,240 | ) | $ | 20,845 | |||||||
Add/(deduct):
|
||||||||||||||||
Interest expense
|
62 | 150 | 3,531 | 3,743 | ||||||||||||
Income taxes
|
13,516 | 3,661 | (3,955 | ) | 13,222 | |||||||||||
Depreciation
|
4,333 | 2,093 | 131 | 6,557 | ||||||||||||
Amortization
|
489 | 160 | 486 | 1,135 | ||||||||||||
EBITDA
|
40,340 | 12,209 | (7,047 | ) | 45,502 | |||||||||||
Add/(deduct):
|
||||||||||||||||
Intercompany interest expense/(income)
|
(795 | ) | (396 | ) | 1,191 | - | ||||||||||
Interest income
|
(256 | ) | (12 | ) | (23 | ) | (291 | ) | ||||||||
Expenses related to OIG investigation
|
483 | - | - | 483 | ||||||||||||
Acquisition expenses
|
2 | 85 | - | 87 | ||||||||||||
HVAC shut down costs
|
- | 1,126 | - | 1,126 | ||||||||||||
Expenses related to litigation settlements
|
- | 116 | - | 116 | ||||||||||||
Advertising cost adjustment
|
- | (468 | ) | - | (468 | ) | ||||||||||
Stock option expense
|
- | - | 2,397 | 2,397 | ||||||||||||
Expenses related to securities litigation
|
- | - | 68 | 68 | ||||||||||||
Adjusted EBITDA
|
$ | 39,774 | $ | 12,660 | $ | (3,414 | ) | $ | 49,020 |
Consolidating Summary and Reconciliation of
Adjusted EBITDA
|
||||||||||||||||
Chemed Corporation and Subsidiary Companies
|
||||||||||||||||
(in thousands)
|
Chemed
|
|||||||||||||||
For the nine months ended September 30, 2013
|
VITAS
|
Roto-Rooter
|
Corporate
|
Consolidated
|
||||||||||||
Net income/(loss)
|
$ | 55,237 | $ | 19,218 | $ | (20,137 | ) | $ | 54,318 | |||||||
Add/(deduct):
|
||||||||||||||||
Interest expense
|
145 | 239 | 10,907 | 11,291 | ||||||||||||
Income taxes
|
34,051 | 11,580 | (13,974 | ) | 31,657 | |||||||||||
Depreciation
|
13,579 | 6,685 | 401 | 20,665 | ||||||||||||
Amortization
|
1,564 | 454 | 1,480 | 3,498 | ||||||||||||
EBITDA
|
104,576 | 38,176 | (21,323 | ) | 121,429 | |||||||||||
Add/(deduct):
|
||||||||||||||||
Intercompany interest expense/(income)
|
(2,940 | ) | (1,443 | ) | 4,383 | - | ||||||||||
Interest income
|
(1,051 | ) | (66 | ) | (48 | ) | (1,165 | ) | ||||||||
Expenses related to OIG investigation
|
1,444 | - | - | 1,444 | ||||||||||||
Acquisition expenses
|
38 | 4 | - | 42 | ||||||||||||
Litigation settlement
|
10,500 | 15,721 | - | 26,221 | ||||||||||||
Expenses related to litigation settlements
|
- | 1,151 | - | 1,151 | ||||||||||||
Advertising cost adjustment
|
- | (1,343 | ) | - | (1,343 | ) | ||||||||||
Expenses of severance arrangements
|
- | 302 | - | 302 | ||||||||||||
Stock option expense
|
- | - | 4,732 | 4,732 | ||||||||||||
Long-term incentive compensation
|
- | - | 1,161 | 1,161 | ||||||||||||
Expenses related to securities litigation
|
- | - | 4 | 4 | ||||||||||||
Adjusted EBITDA
|
$ | 112,567 | $ | 52,502 | $ | (11,091 | ) | $ | 153,978 | |||||||
Chemed
|
||||||||||||||||
For the nine months ended September 30, 2012
|
VITAS
|
Roto-Rooter
|
Corporate
|
Consolidated
|
||||||||||||
Net income/(loss)
|
$ | 61,999 | $ | 21,715 | $ | (21,150 | ) | $ | 62,564 | |||||||
Add/(deduct):
|
||||||||||||||||
Interest expense
|
188 | 364 | 10,480 | 11,032 | ||||||||||||
Income taxes
|
38,080 | 13,341 | (11,580 | ) | 39,841 | |||||||||||
Depreciation
|
12,521 | 6,264 | 393 | 19,178 | ||||||||||||
Amortization
|
1,467 | 471 | 1,437 | 3,375 | ||||||||||||
EBITDA
|
114,255 | 42,155 | (20,420 | ) | 135,990 | |||||||||||
Add/(deduct):
|
||||||||||||||||
Intercompany interest expense/(income)
|
(2,361 | ) | (1,221 | ) | 3,582 | - | ||||||||||
Interest income
|
(328 | ) | (22 | ) | (51 | ) | (401 | ) | ||||||||
Expenses related to OIG investigation
|
749 | - | - | 749 | ||||||||||||
Acquisition expenses
|
2 | 120 | - | 122 | ||||||||||||
HVAC shut down costs
|
- | 1,126 | - | 1,126 | ||||||||||||
Expenses related to litigation settlements
|
- | 843 | - | 843 | ||||||||||||
Advertising cost adjustment
|
- | (1,870 | ) | - | (1,870 | ) | ||||||||||
Stock option expense
|
- | - | 6,709 | 6,709 | ||||||||||||
Expenses related to securities litigation
|
- | - | 265 | 265 | ||||||||||||
Adjusted EBITDA
|
$ | 112,317 | $ | 41,131 | $ | (9,915 | ) | $ | 143,533 |
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
|
||||||||||||||||
RECONCILIATION OF ADJUSTED NET INCOME
|
||||||||||||||||
(in thousands, except per share data)(unaudited)
|
||||||||||||||||
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Net income as reported
|
$ | 17,432 | $ | 20,845 | $ | 54,318 | $ | 62,564 | ||||||||
Add/(deduct) after-tax cost of:
|
||||||||||||||||
Litigation settlement
|
7,094 | - | 16,061 | - | ||||||||||||
Uncertain tax position adjustments
|
(1,782 | ) | - | (1,782 | ) | - | ||||||||||
Additional interest expense resulting from the change
|
||||||||||||||||
in accounting for the conversion feature of the
|
||||||||||||||||
convertible notes
|
1,375 | 1,272 | 4,046 | 3,744 | ||||||||||||
Stock option expense
|
1,030 | 1,516 | 2,993 | 4,243 | ||||||||||||
HVAC shut down costs
|
- | 649 | - | 649 | ||||||||||||
Expenses of OIG investigation
|
(367 | ) | 300 | 895 | 465 | |||||||||||
Expenses related to litigation settlements
|
269 | 70 | 699 | 512 | ||||||||||||
Long-term incentive compensation
|
34 | - | 734 | - | ||||||||||||
Acquisition expenses
|
12 | 53 | 25 | 74 | ||||||||||||
Expenses related to securities litigation
|
1 | 44 | 3 | 168 | ||||||||||||
Loss on extinguishment of debt
|
- | - | 294 | - | ||||||||||||
Severance arrangements
|
- | - | 184 | - | ||||||||||||
Adjusted net income
|
$ | 25,098 | $ | 24,749 | $ | 78,470 | $ | 72,419 | ||||||||
Earnings Per Share As Reported
|
||||||||||||||||
Net income
|
$ | 0.96 | $ | 1.10 | $ | 2.95 | $ | 3.30 | ||||||||
Average number of shares outstanding
|
18,184 | 18,960 | 18,436 | 18,977 | ||||||||||||
Diluted Earnings Per Share As Reported
|
||||||||||||||||
Net income
|
$ | 0.94 | $ | 1.07 | $ | 2.89 | $ | 3.23 | ||||||||
Average number of shares outstanding
|
18,522 | 19,404 | 18,824 | 19,382 | ||||||||||||
Adjusted Earnings Per Share
|
||||||||||||||||
Net income
|
$ | 1.38 | $ | 1.31 | $ | 4.26 | $ | 3.82 | ||||||||
Average number of shares outstanding
|
18,184 | 18,960 | 18,436 | 18,977 | ||||||||||||
Adjusted Diluted Earnings Per Share
|
||||||||||||||||
Net income
|
$ | 1.36 | $ | 1.28 | $ | 4.17 | $ | 3.74 | ||||||||
Average number of shares outstanding
|
18,522 | 19,404 | 18,824 | 19,382 | ||||||||||||
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 September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
OPERATING STATISTICS
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Net revenue ($000)
|
||||||||||||||||
Homecare
|
$ | 196,476 | $ | 197,764 | $ | 593,410 | $ | 577,511 | ||||||||
Inpatient
|
24,824 | 28,082 | 79,181 | 86,481 | ||||||||||||
Continuous care
|
35,880 | 42,144 | 119,466 | 127,481 | ||||||||||||
Total before Medicare cap allowance
|
$ | 257,180 | $ | 267,990 | $ | 792,057 | $ | 791,473 | ||||||||
Medicare cap allowance
|
(3,179 | ) | - | (3,161 | ) | 2,577 | ||||||||||
Total
|
$ | 254,001 | $ | 267,990 | $ | 788,896 | $ | 794,050 | ||||||||
Net revenue as a percent of total
|
||||||||||||||||
before Medicare cap allowance
|
||||||||||||||||
Homecare
|
76.4 | % | 73.8 | % | 74.9 | % | 73.0 | % | ||||||||
Inpatient
|
9.7 | 10.5 | 10.0 | 10.9 | ||||||||||||
Continuous care
|
14.0 | 15.7 | 15.2 | 16.1 | ||||||||||||
Total before Medicare cap allowance
|
100.1 | 100.0 | 100.1 | 100.0 | ||||||||||||
Medicare cap allowance
|
(1.3 | ) | - | (0.4 | ) | 0.3 | ||||||||||
Total
|
98.8 | % | 100.0 | % | 99.7 | % | 100.3 | % | ||||||||
Average daily census (days)
|
||||||||||||||||
Homecare
|
10,373 | 10,123 | 10,482 | 9,904 | ||||||||||||
Nursing home
|
2,911 | 3,073 | 2,928 | 3,031 | ||||||||||||
Routine homecare
|
13,284 | 13,196 | 13,410 | 12,935 | ||||||||||||
Inpatient
|
417 | 460 | 440 | 466 | ||||||||||||
Continuous care
|
540 | 621 | 600 | 630 | ||||||||||||
Total
|
14,241 | 14,277 | 14,450 | 14,031 | ||||||||||||
Total Admissions
|
14,555 | 15,539 | 47,413 | 47,773 | ||||||||||||
Total Discharges
|
14,971 | 15,340 | 47,603 | 47,064 | ||||||||||||
Average length of stay (days)
|
82.2 | 78.5 | 81.3 | 78.3 | ||||||||||||
Median length of stay (days)
|
16.0 | 15.0 | 15.0 | 15.0 | ||||||||||||
ADC by major diagnosis
|
||||||||||||||||
Neurological
|
37.8 | % | 33.9 | % | 36.8 | % | 34.1 | % | ||||||||
Cancer
|
17.1 | 17.3 | 17.0 | 17.6 | ||||||||||||
Cardio
|
13.9 | 11.2 | 12.8 | 11.4 | ||||||||||||
Respiratory
|
7.8 | 6.7 | 7.5 | 6.7 | ||||||||||||
Other
|
23.4 | 30.9 | 25.9 | 30.2 | ||||||||||||
Total
|
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Admissions by major diagnosis
|
||||||||||||||||
Neurological
|
21.0 | % | 19.3 | % | 20.3 | % | 19.3 | % | ||||||||
Cancer
|
34.4 | 34.0 | 33.0 | 33.3 | ||||||||||||
Cardio
|
13.8 | 10.5 | 13.0 | 11.1 | ||||||||||||
Respiratory
|
9.0 | 7.4 | 9.3 | 8.1 | ||||||||||||
Other
|
21.8 | 28.8 | 24.4 | 28.2 | ||||||||||||
Total
|
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Direct patient care margins
|
||||||||||||||||
Routine homecare
|
52.5 | % | 52.5 | % | 52.2 | % | 51.8 | % | ||||||||
Inpatient
|
1.7 | 9.2 | 5.6 | 12.0 | ||||||||||||
Continuous care
|
14.8 | 19.0 | 15.8 | 19.6 | ||||||||||||
Homecare margin drivers (dollars per patient day)
|
||||||||||||||||
Labor costs
|
$ | 54.64 | $ | 54.69 | $ | 55.61 | $ | 55.64 | ||||||||
Drug costs
|
7.52 | 8.11 | 7.55 | 8.25 | ||||||||||||
Home medical equipment
|
6.67 | 7.03 | 6.69 | 6.88 | ||||||||||||
Medical supplies
|
2.83 | 2.77 | 2.96 | 2.77 | ||||||||||||
Inpatient margin drivers (dollars per patient day)
|
||||||||||||||||
Labor costs
|
$ | 354.09 | $ | 326.95 | $ | 339.84 | $ | 320.79 | ||||||||
Continuous care margin drivers (dollars per patient day)
|
||||||||||||||||
Labor costs
|
$ | 594.25 | $ | 575.21 | $ | 592.15 | $ | 571.56 | ||||||||
Bad debt expense as a percent of revenues
|
0.9 | % | 0.8 | % | 0.9 | % | 0.8 | % | ||||||||
Accounts receivable --
|
||||||||||||||||
Days of revenue outstanding- excluding unapplied Medicare payments
|
34.6 | 35.4 |
n.a
|
n.a
|
||||||||||||
Days of revenue outstanding- including unapplied Medicare payments
|
21.9 | 27.9 |
n.a
|
n.a
|
Total Number
|
Weighted Average
|
Cumulative Shares
|
Dollar Amount
|
||||||
of Shares
|
Price Paid Per
|
Repurchased Under
|
Remaining Under
|
||||||
Repurchased
|
Share
|
the Program
|
The Program
|
||||||
February 2011 Program
|
|||||||||
January 1 through January 31, 2013
|
-
|
$
|
-
|
-
|
$
|
14,739,197
|
|||
February 1 through February 28, 2013
|
-
|
-
|
-
|
114,739,197
|
|||||
March 1 through March 31, 2013
|
-
|
-
|
-
|
$
|
114,739,197
|
||||
First Quarter Total
|
-
|
$
|
-
|
||||||
April 1 through April 30, 2013
|
-
|
$
|
-
|
-
|
$
|
114,739,197
|
|||
May 31 through May 31, 2013
|
280,701
|
65.72
|
280,701
|
96,291,009
|
|||||
June 1 through June 30, 2013
|
-
|
-
|
280,701
|
$
|
96,291,009
|
||||
Second Quarter Total
|
280,701
|
$
|
65.72
|
||||||
July 1 through July 31, 2013
|
219,830
|
$
|
70.66
|
500,531
|
$
|
80,758,769
|
|||
August 1 through August 31, 2013
|
49,522
|
71.02
|
550,053
|
77,241,690
|
|||||
September 1 through September 30, 2013
|
763,402
|
68.26
|
1,313,455
|
$
|
25,128,231
|
||||
Third Quarter Total
|
1,032,754
|
$
|
68.91
|
||||||
On February 20, 2013, our Board of Directors authorized an additional $100 million under the 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.DEF
|
XBRL Taxonomy Extension Definition Linkbase
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase
|
|
Chemed Corporation
|
||||||||
(Registrant)
|
||||||||
Dated:
|
November 1, 2013
|
By:
|
/s/ Kevin J. McNamara
|
|||||
Kevin J. McNamara
|
||||||||
(President and Chief Executive Officer)
|
||||||||
Dated:
|
November 1, 2013
|
By:
|
/s/ David P. Williams
|
|||||
David P. Williams
|
||||||||
(Executive Vice President and Chief Financial Officer)
|
||||||||
Dated:
|
November 1, 2013
|
By:
|
/s/ Arthur V. Tucker, Jr.
|
|||||
Arthur V. Tucker, Jr.
|
||||||||
(Vice President and Controller)
|