Chemed Reports First-Quarter 2015 Results CINCINNATI--(BUSINESS WIRE)

Reports First-Quarter 2015 Results

CINCINNATI--(BUSINESS WIRE)--April 28, 2015--Chemed Corporation (Chemed)

(NYSE:CHE), which operates VITAS Healthcare Corporation (VITAS),

the nation's largest provider of end-of-life care, and Roto-Rooter, the

nation's largest commercial and residential plumbing and drain cleaning

services provider, reported financial results for its first quarter

ended March 31, 2015, versus the comparable prior-year period, as

Consolidated operating results:

Revenue increased 5.1% to $377 million

GAAP Diluted EPS increased 25.0% to $1.40

Adjusted Diluted EPS increased 16.7% to $1.54

VITAS segment operating results:

Net Patient Revenue of $270 million, an increase of 3.5%

Average Daily Census (ADC) of 14,824, an increase of 3.5%

Admissions of 17,268, an increase of 5.6%

Net Income, including litigation costs, of $19.3 million, an increase

Adjusted EBITDA of $36.0 million, an increase of 5.9%

Adjusted EBITDA margin of 13.3%, an increase of 30 basis points

Roto-Rooter segment operating results:

Revenue of $107 million, an increase of 9.3%

Net Income of $12.0 million, an increase of 19.7%

Adjusted EBITDA of $21.4 million, an increase of 21.3%

Adjusted EBITDA margin of 20.0%, an increase of 197 basis points

Net revenue for VITAS was $270 million in the first quarter of 2015,

which is an increase of $9.2 million, or 3.5%, when compared to the

prior-year period. This revenue increase is comprised of an average

Medicare reimbursement rate increase of approximately 1.4%, a 3.5%

increase in average daily census, offset by the impact of the estimated

Medicare Cap billing limitation in 2015 when compared to the prior year.

In the first quarter of 2015, VITAS reversed $0.2 million in estimated

Medicare Cap billing limitations. This compares to $0.8 million of

Medicare Cap billing limitations reversed in the first quarter of 2014.

At March 31, 2015, VITAS had 35 Medicare provider numbers, none of which

has an estimated 2015 Medicare Cap billing limitation.

Of VITAS' 35 unique Medicare provider numbers, 34 provider numbers have

a Medicare Cap cushion of 10% or greater for the 2015 Medicare Cap

period, and one provider number has a cap cushion between 0% and 5%.

VITAS generated an aggregate cap cushion of $296 million during the

trailing twelve-month period.

Average revenue per patient per day in the quarter, excluding the impact

of Medicare Cap, was $201.96, which is 0.3% above the prior-year period.

Routine home care reimbursement and high acuity care averaged $164.72

and $702.36, respectively. During the quarter, high acuity days of care

were 6.9% of total days of care, 15 basis points less than the

The first quarter of 2015 gross margin, excluding the impact of Medicare

Cap, was 21.1%, which is a 27 basis point increase when compared to the

first quarter of 2014.

Selling, general and administrative expense was $22.0 million in the

first quarter of 2015, which is an increase of 1.2% when compared to the

prior-year quarter. Adjusted EBITDA, excluding Medicare Cap, totaled

$35.8 million in the quarter, an increase of 8.2% over the prior-year

period. Adjusted EBITDA margin, excluding the impact from Medicare Cap,

was 13.3% in the quarter which is 53 basis points favorable to the

Roto-Rooter's plumbing and drain cleaning business generated sales of

$107 million for the first quarter of 2015, an increase of $9.2 million,

or 9.3%, over the prior-year quarter. Water restoration accounted for

the majority of this revenue growth, with water and flood remediation

services increasing $8.9 million in the quarter.

Roto-Rooter's gross margin in the quarter was 47.3%, an 88 basis point

improvement when compared to the first quarter of 2014. Adjusted EBITDA

in the first quarter of 2015 totaled $21.4 million, an increase of

21.3%, and the Adjusted EBITDA margin was 20.0% in the quarter, 197

basis points higher than the prior year.

As of March 31, 2015, Chemed had total cash and cash equivalents of $28

million and debt of $161 million.

In June 2014 Chemed entered into a five-year Amended and Restated Credit

Agreement that consisted of a $100 million amortizable term loan and a

$350 million revolving credit facility. The interest rate on this

facility has a floating rate that is currently LIBOR plus 112.5 basis

points. At March 31, 2015, the Company had approximately $248 million of

undrawn borrowing capacity under this credit agreement.

Capital expenditures through March 31, 2015, aggregated $8.6 million and

compares to depreciation and amortization during the same period of $8.6

In the first quarter of 2015, Chemed's Board of Directors authorized an

additional $100 million for stock repurchase under Chemed's existing

share repurchase program. These share repurchases will be funded through

a combination of cash generated from operations as well as utilization

of its revolving credit facility. Chemed currently has $111.8 million of

authorization under this share repurchase plan. The Company did not

repurchase any Chemed stock in the first quarter of 2015.

Full-year 2015 revenue growth for VITAS, prior to Medicare Cap, is

estimated to be in the range of 3% to 4%. Admissions in 2015 are

estimated to increase 4% and full-year Adjusted EBITDA margin, prior to

Medicare Cap, is estimated to be 14% to 15%. Medicare Cap billing

limitations for calendar year 2015 are estimated to be $4.3 million.

Roto-Rooter is forecasted to achieve full-year 2015 revenue growth of 3%

to 4%. This revenue estimate is based upon continued expansion in water

restoration services coupled with increased job pricing of approximately

1%. Adjusted EBITDA margin for 2015 is estimated in the range of 19% to

Management estimates that full-year 2015 adjusted earnings per diluted

share, which excludes non-cash expense for stock options, costs related

to litigation, and other discrete items, will be in the range of $6.50

to $6.70. This compares to Chemed's 2014 reported adjusted earnings per

diluted share of $6.07.

Chemed will host a conference call and webcast at 10 a.m., ET, on

Wednesday, April 29, 2015, to discuss the Company's quarterly results

and to provide an update on its business. The dial-in number for the

conference call is (800) 706-7745 for U.S. and Canadian participants and

(617) 614-3472 for international participants. The participant passcode

is 44919288. A live webcast of the call can be accessed on Chemed's