Earnings release
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CONTACT: Michael D. Witzeman(513) 762-6714 Chemed Reports Second-Quarter 2026 Results Full-Year Guidance Increased Due Mainly to VITAS Outperformance CINCINNATI, July 28, 2026—Chemed Corporation (Chemed) (NYSE: CHE), whichoperates VITAS Healthcare Corporation (VITAS), the nation’s largest providers ofend-of-life care, and Roto-Rooter, the nation’s largest commercial and residentialplumbing and drain cleaning services provider, reported financial results for itssecond quarter ended June 30, 2026, versus the comparable prior-year period. Results for Quarter Ended June 30, 2026 Consolidated operating results:· Revenue increased 8.8% to $673.3 million· GAAP Diluted Earnings-per-Share (EPS) of $5.13, an increase of 43.7%· Adjusted Diluted EPS of $6.06, an increase of 41.9% VITAS segment operating results:· Net Patient Revenue of $443.3 million, an increase of 11.9%· Average Daily Census (ADC) of 23,687, an increase of 6.1%· Admissions of 19,125, an increase of 9.0%· Net Income, excluding certain discrete items, of $61.3 million, an increase of60.5%· Adjusted EBITDA, excluding Medicare Cap, of $80.6 million, an increase of20.6%· Adjusted EBITDA margin, excluding Medicare Cap, of 18.2%, an increase of196-basis points Roto-Rooter segment operating results:· Revenue of $229.9 million, an increase of 3.3%· Net Income, excluding certain discrete items, of $33.8 million, essentially flat· Adjusted EBITDA of $48.5 million, essentially flat· Adjusted EBITDA margin of 21.1%, a decline of 77-basis points
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VITAS VITAS net revenue was $443.3 million in the second quarter of 2026, which is anincrease of 11.9% when compared to the prior-year period. This revenue increase iscomprised primarily of a 6.1% increase in days-of-care and a geographicallyweighted average Medicare reimbursement rate increase of approximately 2.4%.Acuity mix shift negatively impacted revenue growth 115-basis points in the quarterwhen compared to the prior-year period’s revenue and level-of-care mix. Thecombination of Medicare Cap and other contra revenue changes positively impactedrevenue growth by 455-basis points. Total VITAS admissions increased 9.0% in the second quarter of 2026 compared tothe second quarter of 2025. In the second quarter of 2026, VITAS accrued $500,000 in Medicare Cap billinglimitation. This compares to the Medicare Cap billing limitation recorded in thesecond quarter of 2025 of $16.4 million. No Medicare Cap billing limitation wasrecorded in the second quarter of 2026 for the Florida combined program, and none isanticipated for the 2026 fiscal period. Of VITAS’ 33 Medicare provider numbers, 22 provider numbers have an anticipatedfull-year Medicare Cap cushion of 10% or greater, seven provider numbers have acushion between 0% and 10%, and four provider numbers have a Medicare Capbilling limitation totaling $7.0 million. Average revenue per patient per day in the second quarter of 2026 was $209.98which is 143-basis points above the prior-year period. Reimbursement for routinehome care and high-acuity care averaged $188.62 and $1,152.14, respectively.During the quarter, high-acuity days-of-care were 2.2% of total days of care, adecline of 24-basis points when compared to the prior-year quarter. The second quarter 2026 gross margin, excluding Medicare Cap, was 23.9%, a 164-basis point increase from the same period of 2025. Selling, general andadministrative expenses were $26.1 million in the second quarter of 2026 comparedto $25.1 million in the prior- year quarter. Adjusted EBITDA, excluding Medicare Cap, totaled $80.6 million in the quarter, anincrease of 20.6% when compared to the prior-year period. Adjusted EBITDA marginin the quarter, excluding Medicare Cap, was 18.2%. Roto-Rooter Roto-Rooter generated quarterly revenue of $229.9 million in the second quarter of2026, an increase of 3.3%, when compared to the prior-year quarter. Roto-Rooter branch commercial revenue in the quarter totaled $56.8 million, anincrease of 6.8% from the prior-year period. This aggregate commercial revenuechange consisted of plumbing increasing 11.9%, drain cleaning increasing 6.9%,water restoration increasing 3.7% and excavation increasing 2.3%.
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Roto-Rooter branch residential revenue in the quarter totaled $159.1 million, anincrease of 1.7%, over the prior-year period. This aggregate residential revenuechange consisted of excavation increasing 11.1%, plumbing increasing 3.3%, anddrain cleaning increasing 1.3%, offset by a decline in water restoration of 6.7%. In the second quarter of 2026, revenue from independent contractors was $17.1million which is a decline of 1.9% as compared to the same period of 2025. Roto-Rooter’s second quarter 2026 gross margin was 50.4%. This compares to theprior-year quarter’s gross margin of 49.0%. Roto-Rooter’s selling, general andadministrative expenses were $67.4 million in the quarter, which is an increase of11.3% compared to the second quarter of 2025. Adjusted EBITDA in the second quarter of 2026 totaled $48.5 million, essentially flatwhen compared to the second quarter of 2025. The Adjusted EBITDA margin in thequarter was 21.1% which represents a 77-basis point decline from the second quarterof 2025. Chemed Consolidated As of June 30, 2026, Chemed had total cash and cash equivalents of $40.2 millionand $140.0 million in long-term debt. In April 2026, Chemed entered into a new five-year $450 million Amended andRestated Credit Agreement (Credit Agreement). This Credit Agreement consists of a$450 million revolving line of credit and a $250 million expansion feature. Theinterest rate on this Credit Agreement has a floating rate that is currently SOFR plus100-basis points. There is approximately $262.7 million undrawn borrowing capacityunder the Credit Agreement after excluding $47.3 million for Letters of Credit. During the quarter, the Company repurchased 210,000 shares of Chemed stock for$89.8 million which equates to a cost per share of $427.81. Over the trailing 12-months, the Company has repurchased 1,517,500 shares of Chemed stock at anaverage price of $423.63 per share. This equates to a reduction in outstandingChemed shares of approximately 10.5% over that period. As of June 30, 2026, therewas approximately $139.8 million of remaining share repurchase authorization underits plan. Guidance Update Although, historically, we do not give quarterly updates, our guidance was revised inconjunction with the first quarter 2026 earnings release due to the materiallyimproved performance of VITAS, coupled with the level of share repurchases. Wehave updated the guidance again mainly to continue our normal, historical cadence ofupdating expectations at the mid-year earnings release. Barring any unusualdevelopments, updating guidance once per year in conjunction with our secondquarter press release is our on-going expectation. Further operational detail will beprovided during the investor conference call.
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VITAS’ initiatives to return to a normal growth pattern after managing the 2025Medicare Cap issue progressed more quickly than originally anticipated and continueto provide higher than expected growth in the business. The following shows theupdated key guidance metrics compared to the guidance metrics provided in the firstquarter 2026 earnings release: Roto-Rooter performed in-line with our expectations and therefore, full yearguidance for the segment remains unchanged. Full year anticipated revenue growthis 3.0% to 3.5%. Estimated adjusted EBITDA margin is 21.5% to 22.5%. Based on the above, full-year 2026 earnings per diluted share, excluding non-cashexpenses for stock options, tax benefits from stock option exercises, costs related tolitigation and other discrete items, are estimated to be in the range of $25.00 to$25.75. This compares to the guidance given in conjunction with the first quarter of2026 press release of $24.00 to $24.75 per diluted share. The mid-point of therevised guidance represents a 17.8% increase from 2025 adjusted earnings per dilutedshare of $21.55. The revised guidance assumes an effective corporate tax rate onadjusted earnings of 24.5% and a diluted share count of 13.5 million shares. Conference Call As previously disclosed, Chemed will host a conference call and webcast at 10 a.m.,ET, on Wednesday July 29, 2026, to discuss the company's quarterly results and toprovide an update on its business. Participants may access a live webcast of theconference call through the investor relations section of Chemed’s website, InvestorRelations Home | Chemed Corporation or the hosting website https://edge.media-server.com/mmc/p/u8u2qjst. Participants may also register via teleconference at:https://register-conf.media-server.com/register/BI55b09312fbd04f76b526dfcc5f7e174e. Once registration is completed, participants will be provided with a dial-in numbercontaining a personalized conference code to access the call. All participants areinstructed to dial-in 15 minutes prior to the start time. A taped replay of the conference call will be available beginning approximately twohours after the call's conclusion. You may access the replay via webcast through theinvestor relations section of Chemed’s website.
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Chemed operates in the healthcare field through its VITAS Healthcare Corporationsubsidiary. VITAS provides daily hospice services to patients with severe, life-limiting illnesses. This type of care is focused on making the terminally ill patient'sfinal days as comfortable and pain-free as possible. Chemed operates in the residential and commercial plumbing and drain cleaningindustry under the brand name Roto-Rooter. Roto-Rooter provides plumbing, draincleaning, and water cleanup services through company-owned branches, independentcontractors and franchisees in the United States and Canada. Roto-Rooter also haslicensed master franchisees in the republics of Indonesia and Singapore, and thePhilippines. This press release contains information about Chemed’s EBITDA, Adjusted EBITDA,and Adjusted Diluted EPS, which are not measures derived in accordance with GAAPand which exclude components that are important to understanding Chemed’sfinancial performance. In reporting its operating results, Chemed provides EBITDA,Adjusted EBITDA and Adjusted Diluted EPS measures to help investors and othersevaluate the Company’s operating results, compare its operating performance with thatof similar companies that have different capital structures and evaluate its ability tomeet its future debt service, capital expenditures and working capital requirements.Chemed’s management similarly uses EBITDA, Adjusted EBITDA, and AdjustedDiluted EPS to assist it in evaluating the performance of the Company across fiscalperiods and in assessing how its performance compares to its peer companies. Thesemeasures also help Chemed’s management to estimate the resources required to meetChemed’s future financial obligations and expenditures. Chemed’s EBITDA, AdjustedEBITDA and Adjusted Diluted EPS should not be considered in isolation or as asubstitute for comparable measures calculated and presented in accordance withGAAP. We calculated Adjusted EBITDA Margin by dividing Adjusted EBITDA byservice revenue and sales. A reconciliation of Chemed’s net income to its EBITDA,Adjusted EBITDA and Adjusted Diluted EPS is presented in the tables following thetext of this press release. SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATIONREFORM ACT OF 1995 REGARDING FORWARD-LOOKING INFORMATIONStatements in this press release contain forward-looking statements within themeaning of the safe harbor provisions of the U.S. Private Securities Litigation ReformAct of 1995. Forward-looking statements can be identified by words such as“anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,”“expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similarreferences to future periods and are based upon assumptions subject to certain knownand unknown risks, uncertainties, contingencies and other factors, including, but notlimited to, the impact of laws and regulations on Chemed’s operations, includingMedicare Cap and Medicare reimbursement rates, Chemed’s estimates of the effect ofMedicare Cap on VITAS’ revenues and future prospects, Chemed’s expectationsregarding VITAS’ patient mix and Chemed’s expectations regarding demand for Roto-Rooter’s services. Because forward looking statements relate to the future, they are subject to inherentuncertainties, risks and changes in circumstances that are difficult to predict andmany of which are outside of Chemed’s control. Chemed’s actual results and financialcondition may differ materially from those
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indicated in the forward-looking statements included in this press release, including asa result of the risks described above and those described in the Chemed’s AnnualReport on Form 10-K for the year ended December 31, 2025 and in its QuarterlyReports filed in 2026. Any forward-looking statement made by Chemed in this pressrelease is based only on information currently available to Chemed and speaks only asof the date on which it is made. Chemed undertakes no obligation to publicly updateany forward-looking statement, whether written or oral, that may be made from timeto time, whether as a result of new information, future developments or otherwise.
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CHEMED CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data)(unaudited) Three Months Ended June 30,Six Months Ended June 30, 2026 2025 2026 2025 Service revenues and sales $ 673,251 $ 618,798 $ 1,330,764 1,265,741 Cost of services provided and goods sold 451,780 434,105 893,529 864,635 Selling, general and administrative expenses(aa) 115,203 100,323 229,524 205,910 Depreciation 14,267 13,689 28,570 27,134 Amortization 2,719 2,571 5,289 5,143 Other operating expense 78 26 70 77 Total costs and expenses 584,047 550,714 1,156,982 1,102,899 Income from operations 89,204 68,084 173,782 162,842 Interest expense (1,789) (443) (2,301) (772) Other income--net (bb) 3,914 3,474 8,688 4,719 Income before income taxes 91,329 71,115 180,169 166,789 Income taxes (23,626) (18,622) (46,164) (42,539) Net income $ 67,703 $ 52,493 $ 134,005 $ 124,250 Earnings Per Share Net income $ 5.14 $ 3.60 $ 9.98 $ 8.51 Average number of shares outstanding 13,174 14,591 13,423 14,606 Diluted Earnings Per Share Net income $ 5.13 $ 3.57 $ 9.97 $ 8.43 Average number of shares outstanding 13,199 14,703 13,442 14,733 (aa) Selling, general and administrative ("SG&A") expenses comprise (in thousands): Three Months Ended June 30,Six Months Ended June 30, 2026 2025 2026 2025 SG&A expenses before long-term incentivecompensationand the impact of market value adjustmentsrelated to deferred compensation plans $ 109,256 $ 98,552 $ 218,187 $ 202,312 Market value adjustments related to deferred compensation trusts 3,699 918 7,584 88 Long-term incentive compensation 2,248 853 3,753 3,510 Total SG&A expenses $ 115,203 $ 100,323 $ 229,524 $ 205,910 (bb) Other income--net comprises (in thousands): Three Months Ended June 30,Six Months Ended June 30, 2026 2025 2026 2025 Market value adjustments related to deferred compensation trusts $ 3,699 $ 918 $ 7,584 $ 88 Interest income 214 2,555 1,104 4,631 Other 1 1 - - Total other income--net $ 3,914 $ 3,474 $ 8,688 $ 4,719
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CHEMED CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATED BALANCE SHEETS (in thousands, except per share data)(unaudited) June 30, 2026 2025 Assets Current assets Cash and cash equivalents $ 40,222 $ 249,904 Accounts receivable less allowances 188,634 184,880 Inventories 7,630 9,148 Prepaid income taxes 17,646 14,239 Prepaid expenses 37,103 33,206 Total current assets 291,235 491,377 Investments of deferred compensation plans held in trust 148,153 129,560 Properties and equipment, at cost less accumulated depreciation 208,499 202,281 Lease right of use asset 142,535 131,948 Identifiable intangible assets less accumulated amortization 78,601 87,360 Goodwill 699,398 666,996 Other assets 11,164 8,325 Total Assets $ 1,579,585 $ 1,717,847 Liabilities Current liabilities Accounts payable $ 84,713 $ 50,864 Accrued insurance 72,455 66,888 Accrued compensation 63,794 54,688 Short-term lease liability 41,277 43,700 Other current liabilities 57,607 47,746 Total current liabilities 319,846 263,886 Deferred income taxes 15,050 12,703 Deferred compensation liabilities 146,986 127,699 Long-term debt 140,000 - Long-term lease liability 113,516 101,861 Other liabilities 13,677 13,213 Total Liabilities 749,075 519,362 Stockholders' Equity Capital stock 37,613 37,593 Paid-in capital 1,617,125 1,576,165 Retained earnings 3,073,331 2,831,540 Treasury stock, at cost (3,900,000) (3,249,115) Deferred compensation payable in Company stock 2,441 2,302 Total Stockholders' Equity 830,510 1,198,485 Total Liabilities and Stockholders' Equity $ 1,579,585 $ 1,717,847
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CHEMED CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)(unaudited) For the Six Months Ended June 30, 2026 2025 Cash Flows from Operating Activities Net income $ 134,005 $ 124,250 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 33,859 32,277 Stock option expense 18,302 18,307 Benefit for deferred income taxes (4,262) (13,243) Noncash long-term incentive compensation 3,633 3,273 Noncash directors' compensation 1,191 1,123 Legal settlements 548 - Amortization of debt issuance costs 163 160 Changes in operating assets and liabilities, excluding amounts acquired in business combinations: Increase in accounts receivable (6,716) (13,466) Increase in inventories (87) (955) Increase in prepaid expenses (10,285) (7,232) Increase/(decrease) in accounts payable and other current liabilities 9,174 (12,449) Change in current income taxes (8,985) (10,764) Net change in lease assets and liabilities 292 (72) (Increase)/decrease in other assets (9,489) 48,426 Increase in other liabilities 11,191 1,521 Other sources 498 194 Net cash provided by operating activities 173,032 171,350 Cash Flows from Investing Activities Business combinations, net of cash acquired (33,540) (225) Capital expenditures (32,639) (29,088) Proceeds from sale of fixed assets 422 480 Other uses (270) (322) Net cash used by investing activities (66,027) (29,155) Cash Flows from Financing Activities Proceeds from revolving line of credit 491,480 - Payments on revolving line of credit (351,480) - Purchases of treasury stock (287,521) (76,168) Change in cash overdrafts payable 23,305 309 Dividends paid (16,049) (14,542) Proceeds from exercise of stock options 2,731 27,152 Capital stock surrendered to pay taxes on stock-basedcompensation (1,482) (8,484) Debt issuance costs (1,349) - Other (uses)/sources (933) 1,092 Net cash used by financing activities (141,298) (70,641) (Decrease)/increase in Cash and Cash Equivalents (34,293) 71,554 Cash and cash equivalents at beginning of year 74,515 178,350 Cash and cash equivalents at end of period $ 40,222 $ 249,904
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CHEMED CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED JUNE 30, 2026 AND 2025 (in thousands)(unaudited) Chemed VITAS Roto-Rooter Corporate Consolidated 2026 (a) Service revenues and sales $ 443,341 $ 229,910 $ - $ 673,251 Cost of services provided and goods sold 337,691 114,089 - 451,780 Selling, general and administrative expenses 26,105 67,373 21,725 115,203 Depreciation 5,781 8,474 12 14,267 Amortization 27 2,692 - 2,719 Other operating expense 28 50 - 78 Total costs and expenses 369,632 192,678 21,737 584,047 Income/(loss) from operations 73,709 37,232 (21,737) 89,204 Interest expense (54) (185) (1,550) (1,789) Intercompany interest income/(expense) 6,480 4,575 (11,055) - Other income—net 66 10 3,838 3,914 Income/(loss) before income taxes 80,201 41,632 (30,504) 91,329 Income taxes (19,290) (9,719) 5,383 (23,626) Net income/(loss) $ 60,911 $ 31,913 $ (25,121) $ 67,703 2025 (b) Service revenues and sales $ 396,201 $ 222,597 $ - $ 618,798 Cost of services provided and goods sold 320,644 113,461 - 434,105 Selling, general and administrative expenses 25,085 60,536 14,702 100,323 Depreciation 5,314 8,363 12 13,689 Amortization 26 2,545 - 2,571 Other operating expense/(income) 55 (29) - 26 Total costs and expenses 351,124 184,876 14,714 550,714 Income/(loss) from operations 45,077 37,721 (14,714) 68,084 Interest expense (47) (129) (267) (443) Intercompany interest income/(expense) 5,454 3,970 (9,424) - Other income—net 61 23 3,390 3,474 Income/(loss) before income taxes 50,545 41,585 (21,015) 71,115 Income taxes (12,326) (9,671) 3,375 (18,622) Net income/(loss) $ 38,219 $ 31,914 $ (17,640) $ 52,493 The "Footnotes to Financial Statements" are integral parts of this financial information.
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CHEMED CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENTS OF INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2026 AND 2025 (in thousands)(unaudited) Chemed VITAS Roto-Rooter Corporate Consolidated 2026 (a) Service revenues and sales $ 863,358 $ 467,406 $ - $ 1,330,764 Cost of services provided and goods sold 663,157 230,372 - 893,529 Selling, general and administrative expenses 52,213 135,302 42,009 229,524 Depreciation 11,693 16,853 24 28,570 Amortization 53 5,236 - 5,289 Other operating expense/(income) 80 (9) (1) 70 Total costs and expenses 727,196 387,754 42,032 1,156,982 Income/(loss) from operations 136,162 79,652 (42,032) 173,782 Interest expense (104) (321) (1,876) (2,301) Intercompany interest income/(expense) 12,717 9,088 (21,805) - Other income—net 161 25 8,502 8,688 Income/(loss) before income taxes 148,936 88,444 (57,211) 180,169 Income taxes (35,818) (20,747) 10,401 (46,164) Net income/(loss) $ 113,118 $ 67,697 $ (46,810) $ 134,005 2025 (b) Service revenues and sales $ 803,600 $ 462,141 $ - $ 1,265,741 Cost of services provided and goods sold 633,451 231,184 - 864,635 Selling, general and administrative expenses 51,624 123,184 31,102 205,910 Depreciation 10,509 16,601 24 27,134 Amortization 52 5,091 - 5,143 Other operating expense/(income) 119 (42) - 77 Total costs and expenses 695,755 376,018 31,126 1,102,899 Income/(loss) from operations 107,845 86,123 (31,126) 162,842 Interest expense (95) (261) (416) (772) Intercompany interest income/(expense) 10,750 7,900 (18,650) - Other income—net 110 32 4,577 4,719 Income/(loss) before income taxes 118,610 93,794 (45,615) 166,789 Income taxes (30,361) (21,936) 9,758 (42,539) Net income/(loss) $ 88,249 $ 71,858 $ (35,857) $ 124,250 The "Footnotes to Financial Statements" are integral parts of this financial information.
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CHEMED CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATING SUMMARIES OF EBITDA FOR THREE MONTHS ENDED JUNE 30, 2026 AND 2025 (in thousands)(unaudited) Chemed VITAS Roto-Rooter Corporate Consolidated 2026 Net income/(loss) $ 60,911 $ 31,913 $ (25,121) $ 67,703 Add/(deduct): Interest expense 54 185 1,550 1,789 Income taxes 19,290 9,719 (5,383) 23,626 Depreciation 5,781 8,474 12 14,267 Amortization 27 2,692 - 2,719 EBITDA 86,063 52,983 (28,942) 110,104 Add/(deduct):Intercompany interestexpense/(income) (6,480) (4,575) 11,055 - Interest income (66) (10) (138) (214) Stock option expense - - 9,052 9,052 Long-term incentive compensation - - 2,248 2,248 Legal settlements 548 - - 548 Acquisition expense 8 60 - 68 Adjusted EBITDA $ 80,073 $ 48,458 $ (6,725) $ 121,806 2025 Net income/(loss) $ 38,219 $ 31,914 $ (17,640) $ 52,493 Add/(deduct): Interest expense 47 129 267 443 Income taxes 12,326 9,671 (3,375) 18,622 Depreciation 5,314 8,363 12 13,689 Amortization 26 2,545 - 2,571 EBITDA 55,932 52,622 (20,736) 87,818 Add/(deduct):Intercompany interestexpense/(income) (5,454) (3,970) 9,424 - Interest income (61) (23) (2,472) (2,556) Stock option expense - - 9,216 9,216 Long-term incentive compensation - - 853 853 Adjusted EBITDA $ 50,417 $ 48,629 $ (3,715) $ 95,331 The "Footnotes to Financial Statements" are integral parts of this financial information.
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CHEMED CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATING SUMMARIES OF EBITDA FOR THE SIX MONTHS ENDED JUNE 30, 2026 AND 2025 (in thousands)(unaudited) Chemed VITAS Roto-Rooter Corporate Consolidated 2026 Net income/(loss) $ 113,118 $ 67,697 $ (46,810) $ 134,005 Add/(deduct): Interest expense 104 321 1,876 2,301 Income taxes 35,818 20,747 (10,401) 46,164 Depreciation 11,693 16,853 24 28,570 Amortization 53 5,236 - 5,289 EBITDA 160,786 110,854 (55,311) 216,329 Add/(deduct):Intercompany interestexpense/(income) (12,717) (9,088) 21,805 - Interest income (162) (25) (917) (1,104) Stock option expense - - 18,302 18,302 Long-term incentive compensation - - 3,753 3,753 Legal settlements 548 - - 548 Acquisition expense 8 226 - 234 Adjusted EBITDA $ 148,463 $ 101,967 $ (12,368) $ 238,062 2025 Net income/(loss) $ 88,249 $ 71,858 $ (35,857) $ 124,250 Add/(deduct): Interest expense 95 261 416 772 Income taxes 30,361 21,936 (9,758) 42,539 Depreciation 10,509 16,601 24 27,134 Amortization 52 5,091 - 5,143 EBITDA 129,266 115,747 (45,175) 199,838 Add/(deduct):Intercompany interestexpense/(income) (10,750) (7,900) 18,650 - Interest income (110) (33) (4,489) (4,632) Stock option expense - - 18,307 18,307 Long-term incentive compensation - - 3,510 3,510 Adjusted EBITDA $ 118,406 $ 107,814 $ (9,197) $ 217,023 The "Footnotes to Financial Statements" are integral parts of this financial information.
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CHEMED CORPORATION AND SUBSIDIARY COMPANIES RECONCILIATION OF ADJUSTED NET INCOME (in thousands, except per share data)(unaudited) Three Months Ended June30, Six Months Ended June 30, 2026 2025 2026 2025 Net income as reported $ 67,703 $ 52,493 $ 134,005 $ 124,250 Add/(deduct) pre-tax cost of: Stock option expense 9,052 9,216 18,302 18,307 Amortization of reacquired franchiserights 2,352 2,352 4,704 4,704 Long-term incentive compensation 2,248 853 3,753 3,510 Legal settlements 548 - 548 - Acquisition expense 68 - 234 - Add/(deduct) tax impacts:Tax impact of the above pre-taxadjustments (1) (2,377) (2,143) (4,626) (4,462) Excess tax expenses/(benefits) onstock compensation 445 (50) 501 (513) Adjusted net income $ 80,039 $ 62,721 $ 157,421 $ 145,796 Diluted Earnings Per Share As Reported Net income $ 5.13 $ 3.57 $ 9.97 $ 8.43 Average number of sharesoutstanding 13,199 14,703 13,442 14,733 Adjusted Diluted Earnings Per Share Adjusted net income $ 6.06 $ 4.27 $ 11.71 $ 9.90 Average number of sharesoutstanding 13,199 14,703 13,442 14,733 (1) The tax impact of pre-tax adjustments was calculated using the effective tax rate of the operatingunit for which each adjustment is associated. The "Footnotes to Financial Statements" are integral parts of this financial information.
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CHEMED CORPORATION AND SUBSIDIARY COMPANIESOPERATING STATISTICS FOR VITAS SEGMENT(unaudited) Three Months Ended June 30, For the Six Months Ended June 30, OPERATING STATISTICS 2026 2025 2026 2025 Net revenue ($000) (c) Homecare $ 391,348 $ 358,042 $ 762,438 $ 709,608 Inpatient 35,673 33,023 71,599 67,045 Continuous care 19,396 23,640 37,530 48,276 Other 6,206 5,747 11,783 11,092 Subtotal $ 452,623 $ 420,452 $ 883,350 $ 836,021 Room and board, net (3,938) (3,892) (7,196) (7,417) Contractual allowances (4,844) (3,984) (9,921) (6,304) Medicare cap allowance (500) (16,375) (2,875) (18,700) Net Revenue $ 443,341 $ 396,201 $ 863,358 $ 803,600 Net revenue as a percent of total before Medicarecap allowance Homecare 86.5 % 85.2 % 86.4 % 84.9 % Inpatient 7.9 7.9 8.1 8.0 Continuous care 4.3 5.6 4.2 5.8 Other 1.3 1.3 1.3 1.3 Subtotal 100.0 100.0 100.0 100.0 Room and board, net (0.9) (0.9) (0.9) (0.9) Contractual allowances (1.1) (0.9) (1.1) (0.8) Medicare cap allowance (0.1) (3.9) (0.3) (2.2) Net Revenue 97.9 % 94.3 % 97.7 % 96.1 % Days of care Homecare 1,792,360 1,662,455 3,483,979 3,295,024 Nursing home 303,053 307,158 597,871 614,266 Respite 12,307 11,440 23,182 21,435 Subtotal routine homecare and respite 2,107,720 1,981,053 4,105,032 3,930,725 Inpatient 29,703 28,213 60,177 57,917 Continuous care 18,094 21,647 35,382 44,267 Total 2,155,517 2,030,913 4,200,591 4,032,909 Number of days in relevant time period 91 91 181 181 Average daily census ("ADC") (days) Homecare 19,697 18,269 19,249 18,205 Nursing home 3,330 3,375 3,303 3,394 Respite 135 126 128 118 Subtotal routine homecare and respite 23,162 21,770 22,680 21,717 Inpatient 326 310 333 320 Continuous care 199 238 195 244 Total 23,687 22,318 23,208 22,281 Total Admissions 19,125 17,545 38,519 35,684 Total Discharges 18,167 17,845 36,704 35,583 Average length of stay (days) 101.2 137.1 101.9 127.9 Median length of stay (days) 16.0 20.0 15.0 18.0 ADC by major diagnosis Cerebro 44.2 % 44.4 % 44.4 % 44.6 % Neurological 11.1 12.1 11.2 12.2 Cancer 9.5 9.7 9.5 9.6 Cardio 16.6 16.2 16.5 16.1 Respiratory 8.0 7.5 7.8 7.3 Other 10.6 10.1 10.6 10.2 Total 100.0 % 100.0 % 100.0 % 100.0 % Admissions by major diagnosis Cerebro 27.3 % 26.7 % 27.1 % 27.6 % Neurological 7.1 7.2 7.0 6.8 Cancer 24.7 26.6 24.1 25.6 Cardio 15.2 14.9 15.5 15.0 Respiratory 11.8 10.7 12.1 11.1 Other 13.9 13.9 14.2 13.9 Total 100.0 % 100.0 % 100.0 % 100.0 %
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Estimated uncollectible accounts as a percent ofrevenues 0.7 % 1.0 % 1.1 % 0.8 % Accounts receivable -- Days of revenue outstanding-excluding unappliedMedicare payments 39.7 37.5 n.a. n.a. Days of revenue outstanding-including unappliedMedicare payments 26.9 26.9 n.a. n.a.
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CHEMED CORPORATION AND SUBSIDIARY COMPANIES FOOTNOTES TO FINANCIAL STATEMENTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025 (unaudited) (a)Included in the results of operations for 2026 are the following significant credits/(charges) which may not be indicative of ongoingoperations (in thousands): Three Months Ended June 30, 2026 VITAS Roto-Rooter Corporate Consolidated Stock option expense $ - $ - $ (9,052) $ (9,052) Amortization of reacquired franchise agreements - (2,352) - (2,352) Long-term incentive compensation - - (2,248) (2,248) Legal expense (548) - - (548) Acquisition expense (8) (60) - (68) Pretax impact on earnings (556) (2,412) (11,300) (14,268) Excess tax expenses on stock compensation - - (445) (445) Income tax benefit on the above 135 562 1,680 2,377 After-tax impact on earnings $ (421) $ (1,850) $ (10,065) $ (12,336) Six Months Ended June 30, 2026 VITAS Roto-Rooter Corporate Consolidated Stock option expense $ - $ - $ (18,302) $ (18,302) Amortization of reacquired franchise agreements - (4,704) - (4,704) Long-term incentive compensation - - (3,753) (3,753) Legal settlements (548) - - (548) Acquisition expense (8) (226) - (234) Pretax impact on earnings (556) (4,930) (22,055) (27,541) Excess tax expenses on stock compensation - - (501) (501) Income tax benefit on the above 135 1,149 3,342 4,626 After-tax impact on earnings $ (421) $ (3,781) $ (19,214) $ (23,416) (b)Included in the results of operations for 2025 are the following significant credits/(charges) which may not be indicative of ongoingoperations (in thousands): Three Months Ended June 30, 2025 VITAS Roto-Rooter Corporate Consolidated Stock option expense $ - $ - $ (9,216) $ (9,216) Amortization of reacquired franchise agreements - (2,352) - (2,352) Long-term incentive compensation - - (853) (853) Pretax impact on earnings - (2,352) (10,069) (12,421) Excess tax benefits on stock compensation - - 50 50 Income tax benefit on the above - 546 1,597 2,143 After-tax impact on earnings $ - $ (1,806) $ (8,422) $ (10,228) Six Months Ended June 30, 2025 VITAS Roto-Rooter Corporate Consolidated Stock option expense $ - $ - $ (18,307) $ (18,307) Amortization of reacquired franchise agreements - (4,704) - (4,704) Long-term incentive compensation - - (3,510) (3,510) Pretax impact on earnings - (4,704) (21,817) (26,521) Excess tax benefits on stock compensation - - 513 513 Income tax benefit on the above - 1,091 3,371 4,462 After-tax impact on earnings $ - $ (3,613) $ (17,933) $ (21,546) (c)VITAS has 13 large (greater than 450 ADC), 24 medium (greater than 200 but less than 450 ADC) and 23 small (less than 200 ADC)hospice programs. Of Vitas' 33 Medicare provider numbers, for the current cap year, 22 provider numbers have a Medicare cap cushionof greater than 10%, seven provider numbers have a Medicare cap cushion between 0% and 10%, and four provider numbers have aMedicare cap liability.