Slides
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1 Results as of 06/30/26
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Safe Harbor and Regulation G Statement 2 This presentation contains information about Chemed’s EBITDA, Adjusted EBITDA, EBIT, Adjusted EBIT, Adjusted Net Income and Adjusted Diluted EPS, which are not measures derived in accordance with GAAP and which exclude components that are important to understanding Chemed’s financial performance. In reporting its operating results, Chemed provides EBITDA, Adjusted EBITDA, EBIT, Adjusted EBIT, Adjusted Net Income and Adjusted Diluted EPS measures to help investors and others evaluate the Company’s operating results, compare its operating performance with that of similar companies that have different capital structures and evaluate its ability to meet its future debt service, capital expenditures and working capital requirements. Chemed’s management similarly uses EBITDA, Adjusted EBITDA, EBIT, Adjusted EBIT, Adjusted Net Income and Adjusted Diluted EPS to assist it in evaluating the performance of the Company across fiscal periods and in assessing how its performance compares to its peer companies. These measures also help Chemed’s management estimate the resources required to meet Chemed’s future financial obligations and expenditures. Chemed’s EBITDA, Adjusted EBITDA, EBIT, Adjusted EBIT, Adjusted Net Income and Adjusted Diluted EPS should not be considered in isolation or as a substitute for comparable measures calculated and presented in accordance with GAAP. We calculated Adjusted EBITDA margin by dividing Adjusted EBITDA by service revenues and sales. We calculated Adjusted EBIT margin by dividing Adjusted EBIT by service revenues and sales. Adjusted Diluted EPS is calculated by dividing Adjusted Net Income by the number of diluted average shares outstanding, and Diluted EPS is calculated by dividing Net Income by the number of diluted average shares outstanding. A reconciliation of Chemed’s net income to its EBITDA, Adjusted EBITDA, EBIT, Adjusted EBIT and Adjusted Net Income is presented in appendix tables located in the back of this presentation. Forward-Looking Statements Certain statements contained in this presentation and the accompanying tables are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "hope," "anticipate," "plan" and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. Chemed does not undertake and specifically disclaims any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These statements are based on current expectations and assumptions and involve various risks and uncertainties, which could cause Chemed's actual results to differ from those expressed in such forward-looking statements. These risks and uncertainties arise from, among other things, possible changes in regulations governing the hospice care or plumbing and drain cleaning industries; periodic changes in reimbursement levels and procedures under Medicare and Medicaid programs; difficulties predicting patient length of stay and estimating potential Medicare reimbursement obligations; challenges inherent in Chemed's growth strategy; the current shortage of qualified nurses, other healthcare professionals and licensed plumbing and drain cleaning technicians; Chemed’s dependence on patient referral sources; and other factors detailed under the caption "Description of Business by Segment" or "Risk Factors" in Chemed’s most recent report on form 10-Q or 10-K and its other filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on such forward-looking statements and there are no assurances that the matters contained in such statements will be achieved. 2 Chemed Corporation Safe Harbor & Regulation G Statement
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33 CHEMED Corporation Results Since Vitas Acquisition (a) Chemed Revenue Growth from 2003 Revenue Base. Cumulative Results Since the VITAS Acquisition For the years ended December 31, 2003, through 2025 (1) (2) (3) One Three Twenty-Two Year Year Year (a) Chemed (1) Service revenues and sales 4.1% 5.8% 10.9% (2) Adj. net income (11.3%) 1.5% 18.2% (3) Adj. diluted EPS from continuing operations (6.8%) 3.0% 19.9% VITAS (4) Service revenues and sales 6.5% 10.7% 6.1% (5) Adj. net income (5.0%) 11.4% 11.2% Roto-Rooter (6) Service revenues and sales 0.0% (1.2%) 5.8% (7) Adj. net income (14.4%) (9.6%) 11.5% (a) Chemed Revenue Growth from 2003 Revenue Base CAGR
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4 Chemed – Purchase of Capital Stock For the Period January 1, 2007, through June 30, 2026 ($000) 4 Chemed Corporation Purchase of Capital Stock (1) (2) (3) (4) Total Free Shares Returned to Cash Flow Repurchased Dividends Shareholders Generated (1) (1) Activity in 2007 127,881$ 5,888$ 133,769$ 72,944$ (2) Activity in 2008 67,126 5,543 72,669 85,989 (3) Activity in 2009 742 8,157 8,899 139,336 (4) Activity in 2010 104,055 11,881 115,936 60,373 (5) Activity in 2011 143,875 12,538 156,413 144,751 (6) Activity in 2012 60,529 13,026 73,555 96,516 (7) Activity in 2013 92,911 14,148 107,059 121,523 (8) Activity in 2014 110,019 14,255 124,274 66,708 (9) Activity in 2015 59,323 15,605 74,928 127,365 (10) Activity in 2016 102,312 16,440 118,752 95,621 (11) Activity in 2017 94,640 17,371 112,011 98,195 (12) Activity in 2018 158,884 18,661 177,545 234,266 (13) Activity in 2019 92,631 19,788 112,419 248,227 (14) Activity in 2020 175,595 21,079 196,674 430,458 (15) Activity in 2021 576,483 22,016 598,499 249,922 (16) Activity in 2022 114,074 22,017 136,091 252,561 (17) Activity in 2023 73,813 23,501 97,314 273,445 (18) Activity in 2024 358,737 27,092 385,829 367,966 (19) Activity in 2025 428,035 31,696 459,731 325,477 (20) Activity in 2026 287,521 16,049 303,570 140,393 (21) Cumulative Activity 2007 - 2026 (2) 3,229,186$ 336,751$ 3,565,937$ 3,632,036$ (1) Net cash provided by operating activities less capital expenditures. (2) 18.4 million shares repurchased at an average cost of $175.83.
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5 (1) (2) Adj. EPS and Stock Price History Chemed has delivered strong and consistent EPS to stockholders since 2003, 19.9% 22-year CAGR 5 Chemed Corporation Adj. EPS / Stock Price History (1) Adjusted Diluted EPS (non GAAP); see Appendix at the back of this presentation for reconciliation from GAAP reported results to adjusted (non-GAAP) results. (2) Adjusted for stock split. Adj. Stock Price Adj. Diluted EPS
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Chemed – Consolidated Summary of Operations 6 (a) Continuing operations (b) See Appendix at the back of this presentation for reconciliation from GAAP reported results to adjusted non-GAAP results (c) Adj. Diluted EPS is calculated by dividing Adj. Net Income by Diluted Average Shares Outstanding, and Diluted EPS is calculated by dividing Net Income by Diluted Average Shares Outstanding For the years ended December 31, 2003, through 2025 (in thousands, except per share data) 6 Chemed Corporation Consolidated Summary of Operations (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) Average Annual 2003 2011 2013 2015 2017 2019 2021 2022 2023 2024 2025 Inc./(Dec.) (1) Service Revenues and Sales (a) 260,776$ 1,355,970$ 1,413,329$ 1,543,388$ 1,666,724$ 1,938,555$ 2,139,261$ 2,134,963$ 2,264,417$ 2,431,287$ 2,529,978$ 10.9% (2) EBITDA (b) 30,366 181,157 168,206 217,270 156,814 311,349 411,233 393,435 414,340 464,294 422,369 12.7% (3) Adj. EBITDA (b) 25,118 197,273 206,850 235,931 268,459 350,927 461,414 432,660 451,897 503,002 458,710 14.1% (4) Net Income (GAAP) 11,188 85,979 77,227 110,274 98,177 219,923 268,550 249,624 272,509 301,999 265,238 15.5% (5) Adj. Net Income (b) 7,894 100,030 104,372 121,667 141,054 230,473 308,007 283,609 308,515 351,188 311,580 18.2% (6) Diluted EPS (GAAP) 0.56 4.10 4.16 6.33 5.86 13.31 16.85 16.53 17.93 19.89 18.34 17.2% (7) Adj. Diluted EPS (b) (c) 0.40 4.78 5.62 6.98 8.43 13.95 19.33 18.78 20.30 23.13 21.55 19.9% (8) Diluted Average 19,908 20,945 18,585 17,422 16,742 16,527 15,938 15,099 15,200 15,186 14,460 (1.4%) Shares Outstanding
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Chemed - Results from Continuing Operations 7 (in thousands, except per share data) (a) See footnote (b) below and the Appendix at the back of this presentation for reconciliation from GAAP reported results to adjusted (non-GAAP) results. (b) Adj. Diluted EPS is calculated by dividing Adj. Net Income by Diluted Average Shares Outstanding, and Diluted EPS is calculated by dividing Net Income by Diluted Average Shares Outstanding. 7 Chemed Corporation Results from Continuing Operations (1) (2) (3) (4) (5) (6) Fav/(Unfav) Fav/(Unfav) 2024 2025 % Growth 2025 2026 % Growth (1) Service Revenues and Sales $2,431,287 $2,529,978 4.1% 1,265,741$ 1,330,764$ 5.1% (2) Adj. EBITDA (a) 503,002 458,710 (8.8%) 217,023 238,062 9.7% (3) Adj. EBITDA Margin (a) 20.7% 18.1% (2.6 pts.) 17.1% 17.9% 0.8 pts. (4) Adj. Net Income (a) 351,188 311,580 (11.3%) 145,796 157,421 8.0% (5) Adj. Diluted EPS (a) (b) 23.13 21.55 (6.8%) 9.90 11.71 18.3% (6) Capital Expenditures 49,531 62,795 (26.8%) 29,088 32,639 (12.2%) Full-Year Results Six Months Ended June 30,
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8 Chemed Adjusted EBITDA (a)Chemed Central Support Roto-Rooter Central Support Roto-Rooter COS VITAS Central Support VITAS COS Roto-Rooter VITAS Chemed Adjusted EBITDA (a) Chemed Central Support Roto-Rooter Central Support Roto-Rooter COS VITAS Central Support VITAS COS Roto-Rooter VITAS 8 Chemed Corporation 2024 2025 (a) See Appendix at the back of this presentation for reconciliation of EBITDA and Adjusted EBITDA to Net Income Chemed Corporation Revenue Results from Continuing Operations
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Company Overview
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10 Adjusted EBITDA 2025 Revenues 2025 (a) (a) See Appendix at the back of this presentation for reconciliation of EBITDA and Adjusted EBITDA to Net Income Franchise Fees Contractors Roto-Rooter Branches Product & Equipment Sales Company Overview Roto-Rooter Services Company Commercial Plumbing Commercial Drain Cleaning Residential PlumbingContractors Product & Equip. Residential Drain Cleaning Excavation Water Restoration Franchise Fees ● Largest provider of plumbing and drain cleaning services in North America ● Provides plumbing services to approximately 90% of the United States and 30% of the Canadian population ● Provides plumbing and drain cleaning services in 122 company-owned territories and 345 franchise territories ● Maintains an estimated 15% of the drain cleaning market and 2-3% share of the same-day service plumbing market ● Residential customers represent 70% of revenues, while commercial customers represent 25% of revenues Company Overview Other
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● Continue to increase efficiency ● Acquire franchisee territories at reasonable valuations ● $75 - $100 million in franchise street sales in desirable markets ● Purchase at 6-8 times Proforma Adjusted EBITDA ● Minimal capital expenditure ● Focus on earnings and cash flow Company-owned Territories 11 Roto-Rooter Services Company Chemed - Growth Strategy Chemed Growth Strategy – Roto-Rooter
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Roto-Rooter – Gross Revenue Analysis ($000) 12 $368.2 $453.6$427.8$392.1 $518.5 $592.0 (a) 2018 - 2025 reflect GAAP Revenue Recognition Accounting Standard. Prior years are not restated for the 2018 Revenue Recognition Accounting Standard. $750.7$663.6 $882.5 $938.0 $957.1 12 Roto-Rooter Services Company Gross Revenue Analysis $909.5 $911.7
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(a) Continuing Operations (b) See Appendix at the back of this presentation for reconciliation from GAAP reported results to adjusted (non-GAAP) results 13 Roto-Rooter Services Company Summary of Operations Roto-Rooter – Summary of Operations 2004 through 2011 (in thousands, except percentages) (1) (2) (3) (4) (5) (6) (7) (8) 2004 2005 2006 2007 2008 2009 2010 2011 (1) Service Revenues 276,611$ 297,337$ 319,495$ 344,632$ 340,496$ 335,893$ 354,735$ 369,698$ and Sales (a) (2) EBITDA (b) 38,314 52,598 59,307 72,030 62,924 62,107 59,369 64,948 (3) Adj. EBITDA (b) 42,355 49,234 55,548 69,188 59,922 59,862 58,516 64,176 (4) Adj. EBITDA Margin (b) 15.3% 16.6% 17.4% 20.1% 17.6% 17.8% 16.5% 17.4% (5) Net Income (GAAP) 18,795 27,626 32,454 38,971 33,427 33,040 31,678 34,879 (6) Adj. Net Income (b) 21,044 25,486 31,203 40,139 33,785 33,574 32,960 36,260
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14 Roto-Rooter Services Company Summary of Operations (a) Continuing Operations (b) See Appendix at the back of this presentation for reconciliation from GAAP reported results to adjusted (non-GAAP) results Roto-Rooter – Summary of Operations 2013 through 2025 (in thousands, except percentages) 14 (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Average Annual Inc./(Dec.) 2013 2015 2017 2019 2021 2022 2023 2024 2025 2004-2025 (1) Service Revenues 368,216$ 427,837$ 518,464$ 657,371$ 878,015$ 933,399$ 949,352$ 900,309$ 899,877$ 5.8% and Sales (a) (2) EBITDA (b) 56,398 91,911 123,194 159,325 254,133 282,255 279,557 251,519 220,521 8.7% (3) Adj. EBITDA (b) 70,936 87,614 116,670 155,759 249,166 273,760 269,570 237,087 204,729 7.8% (4) Adj. EBITDA Margin (b) 19.3% 20.5% 22.5% 23.7% 28.4% 29.3% 28.4% 26.3% 22.8% n.a. (5) Net Income (GAAP) 29,243 48,573 73,299 103,710 166,333 186,120 188,241 160,046 135,493 9.9% (6) Adj. Net Income (b) 39,845 48,680 65,667 110,092 174,965 193,761 193,475 167,288 143,115 9.6%
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(a) Excludes certain discreet items. (b) Reconciliation from GAAP reported results to adjusted (non-GAAP) results is provided in the Appendix at the back of this presentation. ($000) Results from Continuing Operations 15 Roto-Rooter Services Company Results from Continuing Operations (1) (2) (3) (4) (5) (6) Fav/(Unfav) Fav/(Unfav) 2024 2025 % Growth 2025 2026 % Growth (1) Service Revenues and Sales 900,309$ 899,877$ (0.0%) 462,141$ 467,406$ 1.1% (2) Net Income (GAAP) 160,046 135,493 (15.3%) 71,858 67,697 (5.8%) (3) Adj. EBITDA (a) (b) 237,087 204,729 (13.6%) 107,814 101,967 (5.4%) (4) Adj. EBITDA Margin (a) (b) 26.3% 22.8% (3.5 pts.) 23.3% 21.8% (1.5 pts.) (5) Adj. EBIT (a) (b) 194,555 161,349 (17.1%) 86,122 79,878 (7.3%) (6) Adj. EBIT Margin (a) (b) 21.6% 17.9% (3.7 pts.) 18.6% 17.1% (1.5 pts.) (7) Capital Expenditures 25,906 31,377 (21.1%) 17,961 19,517 (8.7%) Full-Year Results Six Months Ended June 30,
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⚫ Continue to Consolidate Franchises ● Purchase at reasonable multiples ● Avoid over-paying for current acquisitions ● Inflates expectations/demands of remaining franchisees ⚫ Utilize Cash Flow for: ● Purchase of franchises ● Acquisition of hospices ● Share buy-back, increased dividends ⚫ Roto-Rooter Divestiture Considerations: ● If after-tax proceeds can be reinvested at higher return, risk adjusted ● If Chemed’s capital structure and cash flow without Roto- Rooter provide it significant flexibility to support continued growth of VITAS ● If tax-free spin-off creates long-term stockholder value Future of Roto-Rooter 16 Roto-Rooter Services Company Future of Roto-Rooter
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Company Overview
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1818 VITAS Healthcare Company Overview ⚫ One of the largest providers of hospice services for patients with severe, life-limiting illnesses with approximately 7-8% of the U.S. market share ⚫ Operates a comprehensive range of hospice services through 59 operating programs in 15 states and the District of Columbia ⚫ Utilizes an approach for customized plans of care which is intended to maximize quality and enhance patient satisfaction ⚫ Operating statistics: ● Revenues: $443 million (Q2 2026) ● Average daily census per established program of ~ 400 ADC with the largest single program of ~ 2,200 (Q2 2026) ● Average length of stay: 101.2 (Q2 2026) ⚫ Approximately 11,700 employees, including approximately 5,200 nurses (Q2 2026) Company Overview Revenue - 2025 87% 8% 5% Routine Home Care General Inpatient Care Continuous Home Care Revenue by Payer - 2025 95% 2% 3% Medicare Medicaid Private
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Revenues - 2025Days of Care – 2025 Revenue and Expenses - 2025 Adjusted EBITDA - 2025 1919 VITAS Healthcare Analysis of Revenue Routine Home Care General Inpatient Continuous Home Care
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20 (1) 2018 - 2025 include the impact of the new revenue recognition accounting standard. Prior periods are not restated for the 2018 revenue recognition accounting standard. 20 VITAS Healthcare Operations – Percent of Revenue Operations as a Percent of Revenue
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Kansas City St. Louis Fairview Heights LaSalle Milwaukee Chicagoland Central Chicagoland Northwest Chicagoland South Cincinnati Dayton Columbus Pittsburgh Philadelphia Connecticut Metro New Jersey North New Jersey Shore New Jersey West Delaware Washington, DC Northern Virginia Atlanta Metro Houston San Antonio Dallas Fort Worth Greater Sacramento Valley & Foothills East Bay San Francisco Bay Inland Empire Fresno Orange County San Diego Las Angeles/ Venture County Bakersfield San Gabriel Cities Coastal Cities Daphne-Mobile Dothan Locations VITAS Locations 21 Austin See next page for Florida program locations
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22 Florida Locations 22 Pensacola Jacksonville Tallahassee Panama City Palm Beach Broward Miami-Dade/Monroe Treasure Coast Brevard Collier Volusia - Flagler Pasco Nature Coast Marion Citrus Southwest Florida Lake/Sumter Mid-State Florida Central Florida Pinellas Manatee
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23 VITAS 2025 Discharge Rate – Total Median 23 VITAS Healthcare 2025 Discharge Rate - Total
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24 VITAS 2025 Discharge Rate – Total After 180 Days 24 VITAS Healthcare 2025 Discharge Rate - Total
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25 VITAS Admission by Diagnosis - 2025 25 VITAS Healthcare Admission by Diagnosis - 2025
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26 VITAS 2025 Discharge Rate – All Diagnosis Population: 70,530 26 VITAS Healthcare Discharge Rate – All Diagnosis 100% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Cancer 26.1% of Total (MLOS 11) Cardio 14.7% of Total (MLOS 24) Cerebro 27.7% of Total (MLOS 52) Gastro 00.2% of Total (MLOS 4) HIV 00.1% of Total (MLOS 7) Ill Def 00.0% of Total (MLOS 0) Infect 00.1% of Total (MLOS 4) Neuro 07.1% of Total (MLOS 56) Other 13.3% of Total (MLOS 5) Resp 10.7% of Total (MLOS 6) Uknown 00.0% of Total (MLOS 0) Total 100.0% of Total (MLOS 18) Days
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27 Analysis of VITAS Discharges 2004-2025 Total Discharges Total Live Discharges 27 VITAS Healthcare Discharge Analysis 2004 - 2025
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28 VITAS Analysis of Gross Revenue By Level of Care 2003 through 2025 ($000) 28 VITAS Healthcare Gross Revenue by Level of Care 2003-2025
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29 VITAS Analysis of Average Daily Census (ADC) 2003 through 2025 10,030 14,383 7,428 11,477 11,980 13,406 15,385 15,992 16,550 17,742 18,846 19,042 18,003 17,325 - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 2003 2005 2007 2009 2011 2013 2015 2016 2017 2018 2019 2020 2021 2022 2023 Total Routine Care Continuous Care Inpatient Care 18,613 29 VITAS Healthcare Daily Census Average 2003 - 2025
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30 VITAS Analysis of Direct Gross Profit Contribution Margin By Level of Care 2003 through 2025 (in millions) 30 VITAS Healthcare Direct Gross Profit Contribution
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VITAS – Summary of Operations For The Years Ended December 31, 2004 through 2011 (in thousands, except percentages) 31 (a) Assumes VITAS was purchased on January 1, 2004 (b) See Appendix at the back of this presentation for reconciliation from GAAP reported results to adjusted (non-GAAP) results 31 VITAS Healthcare Summary of Operations (1) (2) (3) (4) (5) (6) (7) (8) 2004 2005 2006 2007 2008 2009 2010 2011 (1) Service Revenues and Sales 531,136$ 618,613$ 699,092$ 755,426$ 808,445$ 854,343$ 925,810$ 986,272$ (2) EBITDA (b) 65,685 65,259 89,237 110,515 119,901 132,935 146,652 147,243 (3) Adj. EBITDA (b) 64,553 80,455 85,880 103,953 115,278 129,685 143,656 144,944 (4) Adj. EBITDA Margin (b) 12.2% 13.0% 12.3% 13.8% 14.3% 15.2% 15.5% 14.7% (5) Net Income (GAAP) 33,052 34,982 43,546 61,034 64,304 71,696 79,796 80,358 (6) Adj. Net Income (b) 32,961 44,659 49,249 59,974 64,010 72,059 80,465 81,186 (7) Adj. Net Income as a percent of Sales 6.2% 7.2% 7.0% 7.9% 7.9% 8.4% 8.7% 8.2%
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VITAS – Summary of Operations For The Years Ended December 31, 2013 through 2025 (in thousands, except percentages) 32 (a) Assumes VITAS was purchased on January 1, 2004 (b) See Appendix at the back of this presentation for reconciliation from GAAP reported results to adjusted (non-GAAP) results 32 VITAS Healthcare Summary of Operations (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Average Annual Inc./(Dec.) 2013 2015 2017 2019 2021 2022 2023 2024 2025 2004-2025 (1) Service Revenues and Sales 1,045,113$ 1,115,551$ 1,148,260$ 1,281,184$ 1,261,246$ 1,201,564$ 1,315,065$ 1,530,978$ 1,630,101$ 5.5% (2) EBITDA (b) 142,770 169,768 92,899 224,757 238,202 196,680 224,867 304,871 291,129 7.3% (3) Adj. EBITDA (b) 151,156 167,498 172,401 216,880 236,120 182,009 204,389 285,535 271,911 7.1% (4) Adj. EBITDA Margin (b) 14.5% 15.0% 15.0% 16.9% 18.7% 15.1% 15.5% 18.7% 16.7% n.a. (5) Net Income (GAAP) 76,144 93,346 57,645 155,822 162,431 131,452 158,509 216,819 204,009 9.1% (6) Adj. Net Income (b) 84,023 96,418 103,121 163,752 175,972 134,770 156,737 217,651 206,712 9.1% (7) Adj. Net Income as a percent of Sales 8.0% 8.6% 9.0% 12.8% 14.0% 11.2% 11.9% 14.2% 12.7% n.a.
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33 (in thousands, except percentages) VITAS – Operating Results 33 VITAS Healthcare Operating Results (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) Average Annual 2003 (b) 2004 (b) 2006 2008 2010 2012 2014 2016 2018 2019 2021 2022 2023 2024 2025 Inc./(Dec.) (1) Net Service Revenue 441,017$ 531,136$ 699,092$ 808,445$ 925,810$ 1,067,037$ 1,064,205$ 1,123,317$ 1,197,562$ 1,281,184$ 1,261,246$ 1,201,564$ 1,315,065$ 1,530,978$ 1,630,101$ 6.1% (2) Cost of field patient care 345,189$ 415,341$ 557,260$ 625,177$ 709,094$ 831,321$ 825,739$ 878,092$ 929,306$ 982,056$ 953,420$ 931,861$ 1,017,623$ 1,146,803$ 1,257,704$ 6.1% (3) Gross profit 95,828$ 115,795$ 141,832$ 183,268$ 216,716$ 235,716$ 238,466$ 245,225$ 268,256$ 299,128$ 307,826$ 269,703$ 297,442$ 384,175$ 372,397$ 6.4% (4) Selling and G&A expenses 53,526$ 51,266$ 57,707$ 68,417$ 74,531$ 81,188$ 85,183$ 92,550$ 80,969$ 86,345$ 87,585$ 89,187$ 93,296$ 99,564$ 100,675$ 2.9% (5) Depreciation & amortization 9,285$ 10,149$ 11,923$ 16,317$ 18,124$ 18,349$ 19,049$ 19,090$ 19,700$ 20,055$ 23,185$ 22,056$ 20,063$ 20,467$ 21,412$ 3.9% (6) Other operating expense -$ -$ 272$ -$ -$ -$ -$ 4,491$ 1,130$ 6,546$ 876$ 3,337$ (12)$ 178$ 3,375$ n.a (7) Income from operations 33,017$ 54,380$ 71,930$ 98,534$ 124,061$ 136,179$ 134,234$ 129,094$ 166,457$ 186,182$ 196,180$ 155,123$ 184,095$ 263,966$ 246,935$ 9.6% (8) EBITDA 42,986$ 65,685$ 89,237$ 119,901$ 146,652$ 158,251$ 158,719$ 156,172$ 199,568$ 224,757$ 238,202$ 196,680$ 224,867$ 304,871$ 291,129$ 9.1% (9) Adjusted EBITDA 42,302$ 64,553$ 85,880$ 115,278$ 143,656$ 156,289$ 155,449$ 159,393$ 188,764$ 216,880$ 236,120$ 182,009$ 204,389$ 285,535$ 271,911$ 8.8% Percent of Sales (10) Net Service Revenue 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% (11) Cost of field patient care 78.3% 78.2% 79.7% 77.3% 76.6% 77.9% 77.6% 78.2% 77.6% 76.7% 75.6% 77.6% 77.4% 74.9% 77.2% (12) Gross profit 21.7% 21.8% 20.3% 22.7% 23.4% 22.1% 22.4% 21.8% 22.4% 23.3% 24.4% 22.4% 22.6% 25.1% 22.8% (13) Selling and G&A expenses 12.1% 9.7% 8.3% 8.5% 8.1% 7.6% 8.0% 8.2% 6.8% 6.7% 6.9% 7.4% 7.1% 6.5% 6.2% (14) Depreciation & amortization 2.1% 1.9% 1.7% 2.0% 2.0% 1.7% 1.8% 1.7% 1.6% 1.6% 1.8% 1.8% 1.5% 1.3% 1.3% (15) Other operating expense 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.4% 0.1% 0.5% 0.1% 0.3% (0.0%) 0.0% 0.2% (16) Income from operations 7.5% 10.2% 10.3% 12.2% 13.4% 12.8% 12.6% 11.5% 13.9% 14.5% 15.6% 12.9% 14.0% 17.2% 15.1% (17) EBITDA 9.7% 12.4% 12.8% 14.8% 15.8% 14.8% 14.9% 13.9% 16.7% 17.5% 18.9% 16.4% 17.1% 19.9% 17.9% (18) Adjusted EBITDA 9.6% 12.2% 12.3% 14.3% 15.5% 14.6% 14.6% 14.2% 15.8% 16.9% 18.7% 15.1% 15.5% 18.7% 16.7% (a) Continuing operations (b) VITAS was acquired in February 2004. This schedule assumes VITAS was acquired January 1, 2003.
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VITAS – Results from Continuing Operations 34 ($000) (a) Excludes certain discreet items. (b) Reconciliation from GAAP reported results to adjusted (non-GAAP) results is provided in the Appendix at the back of the presentation. 34 VITAS Healthcare Operating Results (1) (2) (3) (4) (5) (6) Fav/(Unfav) Fav/(Unfav) 2024 2025 % Growth 2025 2026 % Growth (1) Service Revenues Before Medicare Cap 1,539,392$ 1,657,262$ 7.7% 822,300$ 866,233$ 5.3% (2) Medicare Cap (8,414) (27,161) (222.8%) (18,700) (2,875) 84.6% (3) Net Service Revenues and Sales 1,530,978$ 1,630,101$ 6.5% 803,600$ 863,358$ (0.7 pts.)7.4% (4) Adj. Net Income (a) (b) 217,651$ 206,712$ (5.0%) 88,249$ 113,539$ 28.7% (5) Adj. EBITDA (a) (b) 285,535 271,911 (4.8%) 118,406 148,463 25.4% (6) Adj. EBITDA Margin (a) (b) 18.7% 16.7% (2.0 pts.) 14.7% 17.2% 2.5 pts. (7) Capital Expenditures 23,350 31,383 (34.4%) 11,122 13,097 (17.8%) Full-Year Results Six Months Ended June 30,
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Future of VITAS 35 ● Continue organic growth ● Acquisitions ● Fragmented industry ● Dominated by “Mom & Pop” not-for-profits ● Bottom 50% of provider numbers have an estimated average operating margin in hospice of 4% - 8%* ● Access to reasonably priced capital critical to expansion Short-term Long-term ● Government reimbursement structure will drive VITAS’ future ● Consolidation ● Will “pure play” dominate industry? ● Will continuum of care dominate? ● Self referral ● Control of patient Consolidation continues Acquire other healthcare providers Divest VITAS to diverse healthcare provider 35 VITAS Healthcare Future of VITAS *Source - MedPac
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VITAS – Operating Metrics ($000) 3636 VITAS Healthcare Operating Metrics 36 (a) Excludes any Medicare cap reduction (b) Includes any Medicare cap reduction (c) Excludes depreciation and amortization (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) (20) (21) (22) Operating Metrics Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 (1) Average Daily Census (ADC) 18,050 17,995 18,034 17,935 17,313 17,315 17,242 17,434 17,830 18,392 18,859 19,352 19,665 21,036 21,785 22,179 22,244 22,318 22,327 22,462 22,723 23,687 (2) Admissions 18,135 16,840 17,598 16,250 16,530 14,735 14,680 14,829 16,179 15,611 15,774 15,867 16,911 17,334 16,775 16,427 18,139 17,545 17,714 17,419 19,394 19,125 (3) Discharges 18,316 16,525 17,686 16,684 16,862 14,603 14,603 14,862 15,405 15,104 15,328 15,705 16,170 15,898 16,217 16,333 17,875 17,845 17,348 17,599 18,537 18,167 (4) Average Length of Stay (ALOS) (Days): 94.4 94.5 96.0 97.9 104.8 103.7 106.2 103.9 99.9 99.5 103.1 105.9 103.9 100.6 102.0 105.5 118.7 137.1 109.7 115.1 102.7 101.2 (5) Median Length of Stay (Days) 12 14 13 15 14 17 17 16 15 16 17 17 16 18 18 18 16 20 18 17 15 16 (6) Total Revenue Before Medicare Cap Reduction ($000) $317,288 $313,935 $317,508 $319,112 $301,689 $299,781 $297,154 $310,809 $313,228 $323,611 $333,853 $352,373 $356,382 $375,933 $393,645 $413,433 $409,725 $412,576 $413,827 $421,135 $422,393 $443,841 (7) Medicare Cap Reduction ($1,500) ($2,000) ($97) ($3,000) ($2,500) ($2,000) ($618) ($2,750) ($2,750) ($2,750) ($125) ($2,375) ($2,375) ($1,375) ($2,239) ($2,425) ($2,325) ($16,375) ($6,086) ($2,375) ($2,375) ($500) (8) Revenue After Medicare Cap Reduction ($000) $315,788 $311,935 $317,411 $316,112 $299,189 $297,781 $296,536 $308,059 $310,478 $320,861 $333,728 $349,998 $354,007 $374,558 $391,406 $411,008 $407,400 $396,201 $407,741 $418,760 $420,018 $443,341 (9) % Routine Home Care 81.6% 82.9% 83.1% 84.3% 84.0% 84.5% 84.7% 84.6% 83.7% 84.3% 84.3% 84.8% 83.9% 84.8% 84.8% 85.2% 84.6% 85.2% 86.0% 86.7% 86.2% 86.5% (10) % InPatient 9.0% 8.6% 9.1% 8.4% 8.7% 8.1% 8.1% 8.4% 9.1% 8.3% 8.2% 7.8% 8.3% 7.6% 7.5% 7.4% 8.2% 7.9% 7.9% 7.7% 8.3% 7.9% (11) % Continuous Care 8.5% 7.6% 6.8% 6.4% 6.4% 6.4% 6.1% 6.1% 6.2% 6.4% 6.5% 6.3% 6.7% 6.4% 6.5% 6.0% 5.9% 5.6% 4.7% 4.3% 4.2% 4.3% (12) % Other (0.9%) (0.9%) (0.7%) (0.6%) (0.8%) (0.7%) (0.7%) (1.0%) (0.8%) (0.8%) (1.1%) 1.1% (0.8%) (0.6%) (0.1%) 1.4% (0.1%) (0.5%) (0.2%) (0.6%) (0.6%) (0.7%) (13) % Medicare Cap (0.5%) (0.6%) 0.0% (0.9%) (0.8%) (0.7%) (0.2%) (0.9%) (0.9%) (0.8%) 0.0% (0.7%) (0.7%) (0.4%) (0.6%) (0.6%) (0.6%) (3.9%) (1.4%) (0.6%) (0.6%) (0.1%) Direct Care Margins: (a) (14) Routine Home Care 54.1% 53.8% 54.7% 57.2% 55.2% 55.1% 52.7% 55.3% 52.6% 52.0% 52.6% 55.4% 52.3% 52.5% 52.0% 54.6% 51.3% 49.9% 49.8% 53.4% 52.1% 53.2% (15) In Patient Care 11.1% 10.7% 15.0% 14.5% 13.4% 7.2% 12.0% 16.5% 17.8% 15.9% 20.5% 23.5% 18.5% 12.1% 13.5% 12.5% 10.5% 8.8% 8.8% 10.9% 10.5% 8.1% (16) Continuous Care 32.2% 30.6% 27.8% 28.2% 25.7% 25.7% 22.5% 24.6% 24.9% 23.6% 23.1% 25.0% 24.2% 23.8% 24.7% 28.4% 26.2% 25.1% 21.6% 23.5% 22.5% 21.9% (17) Gross Profit (Direct and Indirect) ($000) (b) (c) $77,121 $64,416 $79,199 $87,089 $71,949 $70,248 $56,781 $70,726 $56,824 $57,776 $80,096 $102,847 $82,111 $89,041 $96,470 $116,552 $94,593 $75,557 $86,876 $112,522 $94,551 $105,650 (18) Gross Profit Margin (b) (c) 24.4% 20.7% 25.0% 27.6% 24.0% 23.6% 19.1% 23.0% 18.3% 18.0% 24.0% 29.4% 23.2% 23.8% 24.6% 28.4% 23.2% 19.1% 21.3% 26.9% 22.5% 23.8% (19) Pro Forma Selling, General & Admin Exp (c) $22,090 $22,631 $21,372 $21,491 $22,453 $23,148 $21,581 $22,005 $23,336 $22,656 $25,256 $22,048 $23,792 $24,293 $25,883 $25,597 $26,538 $25,085 $25,236 $23,814 $26,109 $26,105 (20) Pro Forma Adjusted EBITDA ($000) (c) $56,754 $52,775 $60,261 $66,331 $50,035 $47,966 $35,173 $48,836 $33,544 $35,085 $54,796 $80,965 $58,312 $65,600 $70,887 $90,735 $67,990 $50,417 $64,296 $89,210 $68,390 $80,073 (21) Pro Forma Adjusted EBITDA Margin (c) 18.0% 16.9% 19.0% 21.0% 16.7% 16.1% 11.9% 15.9% 10.8% 10.9% 16.4% 23.1% 16.5% 17.5% 18.1% 22.1% 16.7% 12.7% 15.8% 21.3% 16.3% 18.1% 2026202520242021 2022 2023
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37 APPENDIX
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38 (1) Diluted EPS from continuing operations (GAAP) (2) Adjusted for stock splits38 Chemed Corporation EPS and Stock Price History EPS & Stock Price History Chemed has delivered strong and consistent EPS to stockholders since 2003, 17.2% 22-year CAGR Diluted EPS (GAAP) Adj. Stock Price $0 $25 $50 $75 $100 $125 $150 $175 $200 $225 $250 $275 $300 $325 $350 $375 $400 $425 $450 $475 $500 $525 $550 $575 $600 $625 $650 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 $10.00 $11.00 $12.00 $13.00 $14.00 $15.00 $16.00 $17.00 $18.00 $19.00 $20.00 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
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8% 39 Medicare Hospice Spending (in billions) Sources: MedPAC Report to the Congress – 2011 - 2025 Annual Report of the Boards of Trustees of the Federal Hospital Insurance and Federal Supplementary Medical Insurance Trust Funds - 2017 and 2018 7% 9% 0% 0% 5% 6% 7% 7% 9%$2.4 $12.0 $12.9 $13.8 $15.1 $15.1$15.1 $15.9 $16.8 $17.9 $19.2 $20.9 7% $22.4 $23.1 9.9% Compounded annual growth rate from 1999 to 2023 39 Chemed Corporation Medicare Hospice Spending $23.7 $25.7 8%
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Growth in Hospice Programs 4040 Appendix Growth in Hospice Programs Source: MedPAC Report to the Congress – 2011 through 2025
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4141 Appendix Reconciliation of Adj. EBITDA - Chemed (1) (2) (3) (4) (5) (6) (7) (8) (9) (9) (10) 2004 2011 2013 2015 2017 2019 2021 2022 2023 2024 2025 Reconciliation of Adjusted EBITDA (1) Net income/(loss) 27,512$ 85,979$ 77,227$ 110,274$ 98,177$ 219,923$ 268,550$ 249,624$ 272,509$ 301,999$ 265,238$ (2) Discontinued operations (8,417) - - - - - - - - - - (3) Interest expense 21,158 13,888 15,035 3,645 4,272 4,535 1,868 4,584 3,108 1,780 1,750 (4) Income taxes 13,736 54,577 46,602 69,852 18,740 41,686 81,764 80,055 77,858 97,466 90,540 (5) Depreciation 14,542 25,247 27,698 32,369 35,488 40,870 49,011 49,102 50,802 52,864 54,557 (6) Amortization 3,468 1,466 1,644 1,130 137 4,335 10,040 10,070 10,063 10,185 10,284 (7) EBITDA 71,999 181,157 168,206 217,270 156,814 311,349 411,233 393,435 414,340 464,294 422,369 Add/(deduct) (8) Interest income (1,874) (426) (847) (281) (427) (513) (377) (355) (6,270) (14,610) (8,746) (9) Equity in earnings of VITAS 4,105 - - - - - - - - - - (10) Advertising cost adjustment 528 (1,240) (1,166) (1,317) (1,371) - - - - - - (11) Long-term incentive compensation 8,783 3,012 1,301 7,519 4,994 7,630 9,167 7,801 11,689 20,152 5,625 (12) Loss/(gain) on extinguishment of debt 3,330 - - - - - - - - - - (13) Legal expenses of OIG investigation - 1,188 2,149 4,974 5,194 - - - - - - (14) Stock option expense - 8,376 6,042 5,445 10,485 14,831 22,502 26,254 30,082 32,033 32,671 (15) Stock award expense 311 2,786 3,046 2,107 1,230 - - - - - - (16) Lawsuit settlement 3,135 2,299 27,646 5 84,689 6,000 (98) 4,000 2,056 - 3,071 (17) Debt registration expenses 1,191 - - - - - - - - - - (18) VITAS transactions costs 442 - - - - - - - - - - (19) Acquisition Expenses - 121 62 172 - 4,834 - - - 1,133 - (20) Securities litigation - - 109 37 - - - - - - - (21) Severance arrangements - - 302 - - - - - - - - (22) Medicare Cap Sequestration adjustment - - - - 447 3,982 - 138 - - - (23) Other - - - - - 548 218 - - - 3,720 (24) Loss on sale of transportation equipment - - - - 5,266 2,266 - - - - - (25) Program closure expenses - - - - 1,138 - - - - - - (26) Direct costs related to COVID-19 - - - - - - 18,769 1,387 - - - (27) Adjusted EBITDA 91,950$ 197,273$ 206,850$ 235,931$ 268,459$ 350,927$ 461,414$ 432,660$ 451,897$ 503,002$ 458,710$ CHEMED CORPORATION RECONCILIATION OF ADJUSTED EBITDA FOR THE YEARS ENDED DECEMBER 31, 2004 THROUGH 2025 (IN THOUSANDS)
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4242 Appendix Reconciliation of Adj. Net Income - Chemed (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) 2004 2011 2013 2015 2017 2019 2021 2022 2023 2024 2025 Reconciliation of Adjusted Net Income (1) Net income/(loss) 27,512$ 85,979$ 77,227$ 110,274$ 98,177$ 219,923$ 268,550$ 249,624$ 272,509$ 301,999$ 265,238$ Add/(deduct): (2) Discontinued operations (8,417) - - - - - - - - - - (3) Equity in earnings of VITAS 4,105 - - - - - - - - - - (4) Long-term incentive compensation 5,437 1,880 822 4,752 3,243 6,440 8,094 6,858 10,379 18,504 4,972 (5) Loss/(gain) on extinguishment of debt 2,030 - 294 - - - - - - - - (6) Legal expenses of OIG investigation - 737 1,333 3,072 3,207 - - - - - - (7) Stock option expense - 5,298 3,813 3,439 6,892 12,237 18,879 22,028 25,405 27,053 27,659 (8) Lawsuit settlement 1,897 1,397 16,926 3 52,504 4,476 (72) 2,984 1,577 - 2,325 (9) Prior period tax adjustments (1,620) - (1,782) - - - - - - - - (10) Debt registration expenses 727 - - - - - - - - - - (11) VITAS transactions costs 222 - - - - - - - - - - (12) Non-cash interest on convertible debt - 4,664 5,448 - - - - - - - - (13) Impact of deferred rate tax change - - - - - - - - (4,241) - - (14) Acquisition Expenses - 75 38 104 - 3,557 - - - 858 - (15) Securities litigation - - 69 23 - - - - - - - (16) Severance arrangements - - 184 - - - - - - - - (17) Medicare cap sequestration adjustment - - - - 276 2,965 - 103 - - - (18) Other - - - - - 406 166 - - - 3,474 (19) Excess tax benefits on stock compensation - - - - (18,932) (24,177) (9,884) (5,928) (4,330) (4,442) 696 (20) Impact of tax reform - - - - (8,302) - - - - - - (21) Loss on sale of transportation equipment - - - - 3,314 1,733 - - - - - (22) Program closure expenses - - - - 675 - 1,384 - - - - (23) Amortization of acquired and cancelled franchise agreements - - - - - 2,913 6,915 6,915 7,216 7,216 7,216 (24) Direct costs related to COVID-19 - - - - - - 13,975 1,025 - - - (25) Adjusted net income 31,893$ 100,030$ 104,372$ 121,667$ 141,054$ 230,473$ 308,007$ 283,609$ 308,515$ 351,188$ 311,580$ CHEMED CORPORATION RECONCILIATION OF ADJUSTED NET INCOME FOR THE YEARS ENDED DECEMBER 31, 2004 THROUGH 2025 (IN THOUSANDS)
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4343 Appendix Reconciliation of Adj. EBITDA and Adj. Net Income– Roto-Rooter (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) 2004 2005 2006 2007 2008 2009 2010 2011 2013 2015 2017 2019 2021 2022 2023 2024 2025 Reconciliation of Adjusted EBITDA (1) Net income 18,795$ 27,626$ 32,454$ 38,971$ 33,427$ 33,040$ 31,678$ 34,879$ 29,243$ 48,573$ 73,299$ 103,710$ 166,333$ 186,120$ 188,241$ 160,046$ 135,493$ (2) Interest expense 206 563 368 495 246 186 233 358 322 348 323 345 595 396 442 431 611 (3) Income taxes 10,611 16,048 18,748 24,145 20,644 20,372 19,547 21,353 17,560 29,630 32,782 30,276 51,420 58,695 50,125 48,510 41,037 (4) Depreciation 8,583 8,271 7,665 8,365 8,294 8,068 7,775 8,130 9,014 12,988 16,667 20,730 25,816 27,075 30,790 32,452 33,200 (5) Amortization 119 90 72 54 313 441 136 228 259 372 123 4,264 9,969 9,969 9,959 10,080 10,180 (6) EBITDA 38,314 52,598 59,307 72,030 62,924 62,107 59,369 64,948 56,398 91,911 123,194 159,325 254,133 282,255 279,557 251,519 220,521 Add/(deduct) (7) Advertising cost adjustment 528 691 323 601 225 (540) (679) (1,240) (1,166) (1,317) (1,371) - - - - - - (8) Long-term incentive compensation 1,558 - - - - - - - - - - - - - - - - (9) Lawsuit settlement 3,135 - - 1,927 - 882 1,853 2,299 17,146 5 213 - (98) - 2,056 - - (10) Prior-period insurance adjustments - (1,663) - - 597 - - - - - - - - - - - - (11) Interest income (139) (156) (85) (377) (116) (73) (49) (40) (41) (40) (39) (133) (124) (138) (125) (69) (77) (12) Intercompany interest income (1,041) (2,236) (3,997) (4,993) (3,708) (2,514) (2,612) (2,136) (2,055) (3,385) (5,596) (8,152) (7,180) (9,345) (11,918) (14,397) (16,245) (13) Acquisition expenses - - - - - - 256 (26) 4 172 - 4,664 34 - (14) Severance arrangements - - - - - - - - 302 - - - - - - - - (15) Other - - - - - - - - - - - - - - - - 530 (16) Stock award amortization - - - - - - 378 371 348 268 269 - - - - - - (17) Direct costs related to COVID-19 - - - - - - - - - - - - 2,435 988 - - - (18) Non cash ASC 842 expenses - - - - - - - - - - - 55 - - - - - (19) Adjusted EBITDA 42,355$ 49,234$ 55,548$ 69,188$ 59,922$ 59,862$ 58,516$ 64,176$ 70,936$ 87,614$ 116,670$ 155,759$ 249,166$ 273,760$ 269,570$ 237,087$ 204,729$ Reconciliation of Adjusted Net Income (20) Net income 18,795$ 27,626$ 32,454$ 38,971$ 33,427$ 33,040$ 31,678$ 34,879$ (a)(a) 29,243$ (a)(a) 48,573$ (a)(a) 73,299$ 103,710$ 166,333$ 186,120$ 188,241$ 160,046$ 135,493$ Add/(deduct): (21) Long-term incentive compensation 982 - - - - - - - - - - - - - - - - (22) Lawsuit settlement 1,897 - - 1,168 - 534 1,126 1,397 10,416 3 129 - (72) - 1,577 - - (23) Prior-period insurance adjustments - (1,014) - - 358 - - - - - - - - - - - - (24) Prior-period tax adjustments (630) (1,126) (1,251) - - - - - - - - - - - - - - (25) Acquisition expenses - - - - - - 156 (16) 2 104 - 3,429 - - - 26 - (26) Severance arrangements - - - - - - - - 184 - - - - - - - - (27) Other - - - - - - - - - - - - - - - - 406 (27) Impact of deferred rate tax change - - - - - - - - - - - - - - (3,559) - - (28) Impact of tax reform - - - - - - - - - - (7,761) - - - - - - (29) Non cash ASC 842 expenses - - - - - - - - - - - 40 - - - - - (30) Amortization of acquired and cancelled franchise agreements - - - - - - - - - - - 2,913 6,915 6,915 7,216 7,216 7,216 (31) Direct costs related to COVID-19 - - - - - - - - - - - 2,913 1,789 726 - - - (32) Adjusted net income 21,044$ 25,486$ 31,203$ 40,139$ 33,785$ 33,574$ 32,960$ 36,260$ (a)(a) 39,845$ (a)(a) 48,680$ (a)(a) 65,667$ 113,005$ 174,965$ 193,761$ 193,475$ 167,288$ 143,115$ ROTO-ROOTER GROUP RECONCILIATION OF ADJUSTED EBITDA AND ADJUSTED NET INCOME FOR THE YEARS ENDED DECEMBER 31, 2004 THROUGH 2025 (IN THOUSANDS)
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4444 Appendix Reconciliation of Adj. EBITDA And Adj. Net Income - VITAS (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) 2004 2005 2006 2007 2008 2009 2010 2011 2013 2015 2017 2019 2021 2022 2023 2024 2025 Reconciliation of Adjusted EBITDA (1) Net income 33,052$ 34,982$ 43,546$ 61,034$ 64,304$ 71,696$ 79,796$ 80,358$ 76,144$ 93,346$ 57,645$ 155,822$ 162,431$ 131,452$ 158,509$ 216,819$ 204,009$ (2) Discontinued operations (91) (1,477) 4,872 (1,201) - - - - - - - - - - - - - (3) Interest expense 128 153 191 146 155 374 131 229 182 200 188 169 160 172 180 171 185 (4) Income taxes 22,447 20,097 28,705 35,722 38,710 43,921 48,601 48,835 46,910 56,675 16,436 48,711 52,426 43,000 46,115 67,414 65,523 (5) Depreciation 6,192 7,557 8,753 11,446 13,000 13,269 16,161 16,583 18,149 18,789 18,616 19,984 23,114 21,955 19,959 20,362 21,308 (6) Amortization 3,957 3,947 3,916 3,984 3,984 3,959 1,963 1,238 1,385 758 14 71 71 101 104 105 104 (7) EBITDA 65,685 65,259 89,983 111,131 120,153 133,219 146,652 147,243 142,770 169,768 92,899 224,757 238,202 196,680 224,867 304,871 291,129 Add/(deduct) (8) Legal expenses of OIG investigation - 637 1,068 227 46 586 1,012 1,188 2,149 4,974 5,194 - - - - - - (9) Lawsuit settlement - 17,350 272 - - - - - 10,500 - 84,476 6,000 - 4,000 - - 3,071 (10) Interest income (373) (237) (114) (151) (137) (267) (220) (295) (750) (241) (388) (380) (253) (218) (1,078) (224) (334) (11) Intercompany interest income (759) (2,554) (5,329) (7,254) (5,199) (4,314) (4,632) (3,998) (4,288) (7,499) (11,656) (18,135) (18,125) (18,901) (19,400) (20,211) (22,455) (12) Acquisition expenses - - - - - - 68 147 58 - - - - - - 1,099 - (13) Stock award amortization - - - - - - 776 659 717 496 291 - - - - - - (14) Other - - - - 415 461 - - - - - - - - - - 500 (15) Medicare cap sequestration adjustment - - - - - - - - - - 447 3,982 - 138 - - - (16) Program closure expenses - - - - - - - - - - 1,138 - - - - - - (17) Non cash ASC 842 expenses - - - - - - - - - - - 656 - - - - - (18) Cares Act grant - - - - - - - - - - - - - - - - - (19) Direct costs related to COVID-19 - - - - - - - - - - - 16,296 310 - - - (20) Adjusted EBITDA 64,553$ 80,455$ 85,880$ 103,953$ 115,278$ 129,685$ 143,656$ 144,944$ 151,156$ 167,498$ 172,401$ 216,880$ 236,120$ 182,009$ 204,389$ 285,535$ 271,911$ Reconciliation of Adjusted Net Income (21) Net income 33,052$ 34,982$ 43,546$ 61,034$ 64,304$ 71,696$ 79,796$ 80,358$ 76,144$ 93,346$ 57,645$ 155,822$ 162,431$ 131,452$ 158,509$ 216,819$ 204,009$ (22) Add/(deduct): (23) Discontinued operations (91) (1,477) 4,872 (1,201) - - - - - - - - - - - - - (24) Legal expenses of OIG investigation - 397 662 141 28 363 627 737 1,333 3,072 3,207 - (25) Lawsuit settlement - 10,757 169 - - - - - 6,510 - 52,375 4,476 - 2,984 - - 2,325 (26) Prior-period tax adjustments - - - - - - - - - - - - - - - - - (27) Acquisition expenses - - - - - - 42 91 36 - - - - - - 832 - (28) Early retirement expense - - - - - - - - - - - - - - - - - (29) Medicare cap sequestration adjustment - - - - - - - - - - 276 2,965 - 103 - - - (30) Program closure expenses - - - - - - - - - - 675 - 1,384 - - - - (31) Impact of tax reform - - - - - - - - - - (11,057) - - - - - - (32) Non cash ASC 842 expenses - - - - - - - - - - - 490 - - - - - (33) Other - - - - (322) - - - - - - - - - - - 378 (34) Impact of deferred rate tax change - - - - - - - - - - - - - - (1,772) - - (35) Direct costs related to COVID-19 - - - - - - - - - - - - 12,157 231 - - - (36) Adjusted net income 32,961$ 44,659$ 49,249$ 59,974$ 64,010$ 72,059$ 80,465$ 81,186$ 84,023$ 96,418$ 103,121$ 163,753$ 175,972$ 134,770$ 156,737$ 217,651$ 206,712$ (a) Assumes VITAS was purchased on January 1, 2004 (IN THOUSANDS) VITAS HEALTHCARE GROUP RECONCILIATION OF ADJUSTED EBITDA AND ADJUSTED NET INCOME FOR THE YEARS ENDED DECEMBER 31, 2004 THROUGH 2025 (a)
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4545 Appendix Reconciliation of Adj. EBITDA and Adj. Net Income - Chemed 2025 2026 Reconciliation of Adjusted EBITDA (1) Net income 124,250$ 134,005$ (2) Interest expense 772 2,301 (3) Income taxes 42,539 46,164 (4) Depreciation 27,134 28,570 (5) Amortization 5,143 5,289 (6) EBITDA 199,838 216,329 Add/(deduct) (7) Interest income (4,632) (1,104) (8) Stock option expense 18,307 18,302 (9) Long-term incentive compensation 3,510 3,753 (10) Legal expense - 548 (11) Acquisition expense - 234 (12) Adjusted EBITDA 217,023$ 238,062$ Reconciliation of Adjusted Net Income (13) Net income 124,250$ 134,005$ Add/(deduct): (14) Stock option expense 15,317 15,354 (15) Excess tax benefit/(expense) on stock compensation (513) 501 (16) Long-term incentive compensation 3,129 3,359 (17) Amortization of acquired and cancelled franchise agreements 3,613 3,608 (18) Legal expense - 415 (19) Acquisition expense - 179 (20) Adjusted net income 145,796$ 157,421$ CHEMED CORPORATION RECONCILIATION OF ADJUSTED EBITDA AND ADJUSTED NET INCOME FOR THE FIRST SIX MONTHS OF 2025 AND 2026 (IN THOUSANDS)
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4646 Appendix Reconciliation of Adj. EBITDA – Roto-Rooter RECONCILIATION OF ADJUSTED EBIT AND ADJUSTED EBITDA 2025 2026 Reconciliation of Adjusted EBIT and EBITDA (1) Net income 71,858$ 67,697$ (2) Interest expense 261 321 (3) Income taxes 21,936 20,747 (4) EBIT 94,055 88,765 Add/(deduct) (5) Interest income (33) (25) (6) Intercompany interest income (7,900) (9,088) (7) Acquisition expense - 226 (8) Adjusted EBIT 86,122 79,878 (9) Depreciation 16,601 16,853 (10) Amortization 5,091 5,236 (11) Adjusted EBITDA 107,814$ 101,967$ ROTO-ROOTER GROUP FOR THE FIRST SIX MONTHS OF 2025 AND 2026 (IN THOUSANDS)
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4747 Appendix Reconciliation of Adj. EBITDA – VITAS Reconciliation of Adjusted EBITDA 2025 2026 (1) Net income 88,249$ 113,118$ (2) Interest expense 95 104 (3) Income taxes 30,361 35,818 (4) Depreciation 10,509 11,693 (5) Amortization 52 53 (6) EBITDA 129,266 160,786 Add/(deduct) (7) Interest income (110) (162) (8) Intercompany interest income (10,750) (12,717) (9) Legal expense - 548 (10) Acquisition expense - 8 (11) Adjusted EBITDA 118,406$ 148,463$ VITAS HEALTHCARE GROUP RECONCILIATION OF ADJUSTED EBITDA FOR THE FIRST SIX MONTHS OF 2025 AND 2026 (IN THOUSANDS)
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255 East 5th Street Suite 2600 Cincinnati, OH 45202 (513) 762-6690 Phone (513) 762-6919 Fax www.chemed.com Kevin J. McNamara President and CEO kevin.mcnamara@chemed.com Michael D. Witzeman EVP, CFO and Controller michael.witzeman@chemed.com Chemed Corporation Rev. 02/2025