Earnings release
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CONTACT: Michael D. Witzeman(513) 762-6714 Chemed Reports Third-Quarter 2026 Results CINCINNATI, October 27, 2026—Chemed Corporation (Chemed) (NYSE:CHE), which operates VITAS Healthcare Corporation (VITAS), the nation’s largestproviders of end-of-life care, and Roto-Rooter, the nation’s largest commercial andresidential plumbing and drain cleaning services provider, reported financial resultsfor its third quarter ended September 30, 2026, versus the comparable prior-yearperiod. Results for Quarter Ended September 30, 2026 Consolidated operating results:· Revenue increased 10.6% to $690.9 million· GAAP Diluted Earnings-per-Share (EPS) of $5.45, an increase of 22.2%· Adjusted Diluted EPS of $6.75, an increase of 28.1% VITAS segment operating results:· Net Patient Revenue of $457.4 million, an increase of 12.2%· Average Daily Census (ADC) of 24,428, an increase of 9.4%· Admissions of 18,995, an increase of 7.2%· Net Income, excluding certain discrete items, of $70.8 million, an increase of44.7%· Adjusted EBITDA, excluding Medicare Cap, of $92.5 million, an increase of31.4%· Adjusted EBITDA margin, excluding Medicare Cap, of 20.2%, an increase of318-basis points Roto-Rooter segment operating results:· Revenue of $233.5 million, an increase of 7.5%· Net Income, excluding certain discrete items, of $33.3 million, a decline of1.8%· Adjusted EBITDA of $48.2 million, a decline of 2.5%· Adjusted EBITDA margin of 20.6%, a decline of 213-basis points
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VITAS VITAS net revenue was $457.4 million in the third quarter of 2026, which is anincrease of 12.2% when compared to the prior-year period. This revenue increase iscomprised primarily of a 9.4% increase in days-of-care and a geographicallyweighted average Medicare reimbursement rate increase of approximately 2.2%.Acuity mix shift negatively impacted revenue growth 25-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 85-basis points. Total VITAS admissions increased 7.2% in the third quarter of 2026 compared to thethird quarter of 2025. In the third quarter of 2026, VITAS accrued $828,000 in Medicare Cap billinglimitation. This compares to the Medicare Cap billing limitation recorded in the thirdquarter of 2025 of $6.1 million. No Medicare Cap billing limitation was recorded inthe third quarter of 2026 for the Florida combined program, and none is anticipatedfor the 2026 fiscal period. Of VITAS’ 33 Medicare provider numbers, 21 provider numbers have an anticipatedfull-year Medicare Cap cushion of 10% or greater, seven provider numbers have acushion between 0% and 10%, and five provider numbers have a Medicare Capbilling limitation totaling $6.1 million. Average revenue per patient per day in the third quarter of 2026 was $209.11 whichis 196-basis points above the prior-year period. Reimbursement for routine home careand high-acuity care averaged $187.69 and $1,147.26, respectively. During thequarter, high-acuity days-of-care were 2.2% of total days of care, a decline of 5-basispoints when compared to the prior-year quarter. The third quarter 2026 gross margin, excluding Medicare Cap, was 25.4%, a 221-basis point increase from the same period of 2025. Selling, general andadministrative expenses were $23.1 million in the third quarter of 2026 compared to$25.2 million in the prior-year quarter. Adjusted EBITDA, excluding Medicare Cap, totaled $92.5 million in the quarter, anincrease of 31.4% when compared to the prior-year period. Adjusted EBITDA marginin the quarter, excluding Medicare Cap, was 20.2%. Roto-Rooter Roto-Rooter generated quarterly revenue of $233.5 million in the third quarter of2026, an increase of 7.5%, when compared to the prior-year quarter. Roto-Rooter branch commercial revenue in the quarter totaled $59.9 million, anincrease of 9.0% from the prior-year period. This aggregate commercial revenuechange consisted of plumbing increasing 10.6%, drain cleaning increasing 6.8%,excavation increasing 5.5% and water restoration increasing 30.7%.
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Roto-Rooter branch residential revenue in the quarter totaled $158.8 million, anincrease of 5.2% over the prior-year period. This aggregate residential revenuechange consisted of excavation increasing 7.8%, plumbing increasing 5.9%, waterrestoration increasing 6.2% and drain cleaning increasing 4.5%. In the third quarter of 2026, revenue from independent contractors was $16.9 millionwhich is flat compared to the same period of 2025. Roto-Rooter’s third quarter 2026 gross margin was 50.3%. This compares to theprior-year quarter’s gross margin of 50.7%. Roto-Rooter’s selling, general andadministrative expenses were $71.0 million in the quarter, which is an increase of17.1% compared to the third quarter of 2025. Adjusted EBITDA in the third quarter of 2026 totaled $48.2 million, a decline of2.5% when compared to the third quarter of 2025. Adjusted EBITDA margin in thequarter was 20.6% which represents a 213-basis point decline from the third quarterof 2025. During the third quarter of 2026, Roto-Rooter re-acquired multiple franchiseterritories in California for approximately $62.5 million. Collectively, theseterritories include a population of over 12 million people. Slightly over half of therevenue associated with acquired territories will become part of our owned andoperated branch locations. Two new branches will be established in Sacramento andSan Diego while other territories will be absorbed by existing branches. Theremaining locations will become part of our independent contractor operating model. Chemed Consolidated As of September 30, 2026, Chemed had total cash and cash equivalents of $48.4million and $236.0 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 $166.7 million undrawn borrowing capacityunder the Credit Agreement after excluding $47.3 million for Letters of Credit. During the quarter, the Company repurchased 125,000 shares of Chemed stock for$66.0 million which equates to a cost per share of $528.24. Over the trailing 12-months, the Company has repurchased 1,235,000 shares of Chemed stock at anaverage price of $427.62 per share. As of September 30, 2026, there wasapproximately $73.7 million of remaining share repurchase authorization under theCompany’s plan.
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Guidance Update Based on the Company’s financial results through September 30, 2026, we estimatethat we will be at or slightly above the high-end of our full-year 2026 adjusted EPSguidance issued in conjunction with our press release, dated July 28, 2026, discussingour second quarter 2026 earnings. Further operational detail will be provided duringthe investor conference call. Conference Call As previously disclosed, Chemed will host a conference call and webcast at 10 a.m.ET, on Wednesday October 28, 2026, to discuss the company's quarterly results andto provide 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/v5gcs68f. Participants may also register via teleconference at:https://register-conf.media-server.com/register/BId8ccb8a390cc4b6fbb29ab2b99a55028. 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. 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 INFORMATION
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Statements 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 indicated in the forward-looking statementsincluded in this press release, including as a result of the risks described above andthose described in Chemed’s Annual Report on Form 10-K for the year endedDecember 31, 2025 and in its Quarterly Reports filed in 2026. Any forward-lookingstatement made by Chemed in this press release is based only on information currentlyavailable to Chemed and speaks only as of the date on which it is made. Chemedundertakes no obligation to publicly update any forward-looking statement, whetherwritten or oral, that may be made from time to time, whether as a result of newinformation, 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 September 30,Nine Months Ended September 30, 2026 2025 2026 2025 Service revenues and sales $ 690,940 $ 624,900 $ 2,021,704 1,890,641 Cost of services provided and goods sold 457,978 425,143 1,351,507 1,289,778 Selling, general and administrative expenses(aa) 111,469 105,775 340,993 311,685 Depreciation 14,427 13,664 42,997 40,798 Amortization 2,974 2,570 8,263 7,713 Other operating expense 7,670 2,998 7,740 3,075 Total costs and expenses 594,518 550,150 1,751,500 1,653,049 Income from operations 96,422 74,750 270,204 237,592 Interest expense (2,097) (457) (4,398) (1,229) Other income--net (bb) 2,383 9,251 11,071 13,970 Income before income taxes 96,708 83,544 276,877 250,333 Income taxes (25,060) (19,307) (71,224) (61,846) Net income $ 71,648 $ 64,237 $ 205,653 $ 188,487 Earnings Per Share Net income $ 5.49 $ 4.46 $ 15.46 $ 12.97 Average number of shares outstanding 13,058 14,394 13,300 14,535 Diluted Earnings Per Share Net income $ 5.45 $ 4.46 $ 15.43 $ 12.89 Average number of shares outstanding 13,135 14,409 13,329 14,620 (aa) Selling, general and administrative ("SG&A") expenses comprise (in thousands): Three Months Ended September 30,Nine Months Ended September 30, 2026 2025 2026 2025 SG&A expenses before long-term incentivecompensationand the impact of market value adjustmentsrelated to deferred compensation plans $ 106,241 $ 99,288 $ 324,428 $ 301,600 Market value adjustments related to deferred compensation trusts 2,077 6,703 9,661 6,791 Long-term incentive compensation 3,151 (216) 6,904 3,294 Total SG&A expenses $ 111,469 $ 105,775 $ 340,993 $ 311,685 (bb) Other income--net comprises (in thousands): Three Months Ended September 30,Nine Months Ended September 30, 2026 2025 2026 2025 Market value adjustments related to deferred compensation trusts $ 2,077 $ 6,703 $ 9,661 $ 6,791 Interest income 295 2,555 1,399 7,186 Other 11 (7) 11 (7) Total other income--net $ 2,383 $ 9,251 $ 11,071 $ 13,970
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CHEMED CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATED BALANCE SHEETS (in thousands, except per share data)(unaudited) September 30, 2026 2025 Assets Current assets Cash and cash equivalents $ 48,427 $ 129,752 Accounts receivable less allowances 254,861 215,570 Inventories 7,748 8,238 Prepaid income taxes 16,346 7,106 Prepaid expenses 38,346 34,577 Total current assets 365,728 395,243 Investments of deferred compensation plans held in trust 144,845 136,021 Properties and equipment, at cost less accumulated depreciation 216,961 203,939 Lease right of use asset 144,029 128,362 Identifiable intangible assets less accumulated amortization 78,791 84,930 Goodwill 754,758 666,987 Other assets 13,327 8,137 Total Assets $ 1,718,439 $ 1,623,619 Liabilities Current liabilities Accounts payable $ 65,297 $ 48,095 Accrued insurance 77,044 65,733 Accrued income taxes - 1,469 Accrued compensation 89,044 79,668 Short-term lease liability 41,209 42,013 Other current liabilities 58,340 55,063 Total current liabilities 330,934 292,041 Deferred income taxes 18,855 9,687 Deferred compensation liabilities 142,421 132,380 Long-term debt 236,000 - Long-term lease liability 114,985 99,461 Other liabilities 13,823 13,367 Total Liabilities 857,018 546,936 Stockholders' Equity Capital stock 37,762 37,593 Paid-in capital 1,693,508 1,581,067 Retained earnings 3,135,794 2,887,123 Treasury stock, at cost (4,008,128) (3,431,475) Deferred compensation payable in Company stock 2,485 2,375 Total Stockholders' Equity 861,421 1,076,683 Total Liabilities and Stockholders' Equity $ 1,718,439 $ 1,623,619
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CHEMED CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)(unaudited) For the Nine Months Ended September30, 2026 2025 Cash Flows from Operating Activities Net income $ 205,653 $ 188,487 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 51,260 48,511 Stock option expense 24,285 24,374 Noncash long-term incentive compensation 6,784 3,057 Legal settlements 6,000 1,850 Noncash directors' compensation 1,191 1,123 Benefit for deferred income taxes (456) (16,259) Amortization of debt issuance costs 255 241 Changes in operating assets and liabilities, excluding amounts acquired in business combinations: Increase in accounts receivable (71,304) (44,403) Increase in inventories (205) (45) Increase in prepaid expenses (11,528) (8,603) Increase in accounts payable and other current liabilities 27,783 10,102 Change in current income taxes (7,685) (2,162) Net change in lease assets and liabilities (667) (576) (Increase)/decrease in other assets (9,356) 42,048 Increase in other liabilities 6,772 6,355 Other sources 840 639 Net cash provided by operating activities 229,622 254,739 Cash Flows from Investing Activities Business combinations, net of cash acquired (96,050) (225) Capital expenditures (51,355) (46,447) Proceeds from sale of fixed assets 488 3,751 Other uses (502) (468) Net cash used by investing activities (147,419) (43,389) Cash Flows from Financing Activities Proceeds from revolving line of credit 843,280 - Payments on revolving line of credit (607,280) - Purchases of treasury stock (350,042) (256,944) Proceeds from exercise of stock options 30,281 27,152 Dividends paid (25,234) (23,196) Change in cash overdrafts payable 6,818 610 Capital stock surrendered to pay taxes on stock-basedcompensation (3,832) (8,484) Debt issuance costs (1,349) - Other (uses)/sources (933) 914 Net cash used by financing activities (108,291) (259,948) Decrease in Cash and Cash Equivalents (26,088) (48,598) Cash and cash equivalents at beginning of year 74,515 178,350 Cash and cash equivalents at end of period $ 48,427 $ 129,752
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CHEMED CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATING STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025 (in thousands)(unaudited) Chemed VITAS Roto-Rooter Corporate Consolidated 2026 (a) Service revenues and sales $ 457,403 $ 233,537 $ - $ 690,940 Cost of services provided and goods sold 341,993 115,985 - 457,978 Selling, general and administrative expenses 23,100 71,033 17,336 111,469 Depreciation 5,791 8,624 12 14,427 Amortization 25 2,949 - 2,974 Other operating expense 7,352 88 230 7,670 Total costs and expenses 378,261 198,679 17,578 594,518 Income/(loss) from operations 79,142 34,858 (17,578) 96,422 Interest expense (54) (145) (1,898) (2,097) Intercompany interest income/(expense) 6,766 4,574 (11,340) - Other income—net 124 5 2,254 2,383 Income/(loss) before income taxes 85,978 39,292 (28,562) 96,708 Income taxes (20,270) (9,152) 4,362 (25,060) Net income/(loss) $ 65,708 $ 30,140 $ (24,200) $ 71,648 2025 (b) Service revenues and sales $ 407,741 $ 217,159 $ - $ 624,900 Cost of services provided and goods sold 318,015 107,128 - 425,143 Selling, general and administrative expenses 25,236 60,672 19,867 105,775 Depreciation 5,354 8,298 12 13,664 Amortization 26 2,544 - 2,570 Other operating expense/(income) 3,036 (38) - 2,998 Total costs and expenses 351,667 178,604 19,879 550,150 Income/(loss) from operations 56,074 38,555 (19,879) 74,750 Interest expense (56) (132) (269) (457) Intercompany interest income/(expense) 5,685 4,030 (9,715) - Other income—net 61 25 9,165 9,251 Income/(loss) before income taxes 61,764 42,478 (20,698) 83,544 Income taxes (14,993) (10,407) 6,093 (19,307) Net income/(loss) $ 46,771 $ 32,071 $ (14,605) $ 64,237 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 NINE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025 (in thousands)(unaudited) Chemed VITAS Roto-Rooter Corporate Consolidated 2026 (a) Service revenues and sales $ 1,320,762 $ 700,942 $ - $ 2,021,704 Cost of services provided and goods sold 1,005,150 346,357 - 1,351,507 Selling, general and administrative expenses 75,314 206,335 59,344 340,993 Depreciation 17,484 25,477 36 42,997 Amortization 78 8,185 - 8,263 Other operating expense 7,432 78 230 7,740 Total costs and expenses 1,105,458 586,432 59,610 1,751,500 Income/(loss) from operations 215,304 114,510 (59,610) 270,204 Interest expense (158) (466) (3,774) (4,398) Intercompany interest income/(expense) 19,484 13,661 (33,145) - Other income—net 285 31 10,755 11,071 Income/(loss) before income taxes 234,915 127,736 (85,774) 276,877 Income taxes (56,088) (29,899) 14,763 (71,224) Net income/(loss) $ 178,827 $ 97,837 $ (71,011) $ 205,653 2025 (b) Service revenues and sales $ 1,211,341 $ 679,300 $ - $ 1,890,641 Cost of services provided and goods sold 951,466 338,312 - 1,289,778 Selling, general and administrative expenses 76,861 183,856 50,968 311,685 Depreciation 15,863 24,899 36 40,798 Amortization 78 7,635 - 7,713 Other operating expense/(income) 3,155 (80) - 3,075 Total costs and expenses 1,047,423 554,622 51,004 1,653,049 Income/(loss) from operations 163,918 124,678 (51,004) 237,592 Interest expense (150) (394) (685) (1,229) Intercompany interest income/(expense) 16,436 11,930 (28,366) - Other income—net 170 58 13,742 13,970 Income/(loss) before income taxes 180,374 136,272 (66,313) 250,333 Income taxes (45,353) (32,344) 15,851 (61,846) Net income/(loss) $ 135,021 $ 103,928 $ (50,462) $ 188,487 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 SEPTEMBER 30, 2026 AND 2025 (in thousands)(unaudited) Chemed VITAS Roto-Rooter Corporate Consolidated 2026 Net income/(loss) $ 65,708 $ 30,140 $ (24,200) $ 71,648 Add/(deduct): Interest expense 54 145 1,898 2,097 Income taxes 20,270 9,152 (4,362) 25,060 Depreciation 5,791 8,624 12 14,427 Amortization 25 2,949 - 2,974 EBITDA 91,848 51,010 (26,652) 116,206 Add/(deduct):Intercompany interestexpense/(income) (6,766) (4,574) 11,340 - Interest income (113) (5) (177) (295) Legal settlements 6,705 - 308 7,013 Stock option expense - - 5,984 5,984 Long-term incentive compensation - - 3,151 3,151 Acquisition expense - 1,726 - 1,726 Adjusted EBITDA $ 91,674 $ 48,157 $ (6,046) $ 133,785 2025 Net income/(loss) $ 46,771 $ 32,071 $ (14,605) $ 64,237 Add/(deduct): Interest expense 56 132 269 457 Income taxes 14,993 10,407 (6,093) 19,307 Depreciation 5,354 8,298 12 13,664 Amortization 26 2,544 - 2,570 EBITDA 67,200 53,452 (20,417) 100,235 Add/(deduct):Intercompany interestexpense/(income) (5,685) (4,030) 9,715 - Interest income (69) (25) (2,462) (2,556) Stock option expense - - 6,067 6,067 Legal settlements 2,850 - - 2,850 Long-term incentive compensation - - (216) (216) Other - - 2,665 2,665 Adjusted EBITDA $ 64,296 $ 49,397 $ (4,648) $ 109,045 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 NINE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025 (in thousands)(unaudited) Chemed VITAS Roto-Rooter Corporate Consolidated 2026 Net income/(loss) $ 178,827 $ 97,837 $ (71,011) $ 205,653 Add/(deduct): Interest expense 158 466 3,774 4,398 Income taxes 56,088 29,899 (14,763) 71,224 Depreciation 17,484 25,477 36 42,997 Amortization 78 8,185 - 8,263 EBITDA 252,635 161,864 (81,964) 332,535 Add/(deduct):Intercompany interestexpense/(income) (19,484) (13,661) 33,145 - Interest income (274) (31) (1,094) (1,399) Stock option expense - - 24,285 24,285 Legal settlements 7,253 - 308 7,561 Long-term incentive compensation - - 6,904 6,904 Acquisition expense 8 1,953 - 1,961 Adjusted EBITDA $ 240,138 $ 150,125 $ (18,416) $ 371,847 2025 Net income/(loss) $ 135,021 $ 103,928 $ (50,462) $ 188,487 Add/(deduct): Interest expense 150 394 685 1,229 Income taxes 45,353 32,344 (15,851) 61,846 Depreciation 15,863 24,899 36 40,798 Amortization 78 7,635 - 7,713 EBITDA 196,465 169,200 (65,592) 300,073 Add/(deduct):Intercompany interestexpense/(income) (16,436) (11,930) 28,366 - Interest income (176) (58) (6,952) (7,186) Stock option expense - - 24,374 24,374 Long-term incentive compensation - - 3,294 3,294 Legal settlements 2,850 - - 2,850 Other - - 2,665 2,665 Adjusted EBITDA $ 182,703 $ 157,212 $ (13,845) $ 326,070 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 Nine Months Ended September 30, September 30, 2026 2025 2026 2025 Net income as reported $ 71,648 $ 64,237 $ 205,653 $ 188,487 Add/(deduct) pre-tax cost of: Stock option expense 5,984 6,067 24,285 24,374 Legal settlements 7,013 2,850 7,561 2,850 Amortization of reacquired franchiserights 2,352 2,352 7,056 7,056 Long-term incentive compensation 3,151 (216) 6,904 3,294 Acquisition expense 1,726 - 1,961 - Other - 2,665 - 2,665 Add/(deduct) tax impacts:Tax impact of the above pre-taxadjustments (1) (3,670) (2,049) (8,296) (6,512) Excess tax expenses/(benefits) on stock compensation 521 - 1,022 (513) Adjusted net income $ 88,725 $ 75,906 $ 246,146 $ 221,701 Diluted Earnings Per Share As Reported Net income $ 5.45 $ 4.46 $ 15.43 $ 12.89 Average number of shares outstanding 13,135 14,409 13,329 14,620 Adjusted Diluted Earnings Per Share Adjusted net income $ 6.75 $ 5.27 $ 18.47 $ 15.16 Average number of shares outstanding 13,135 14,409 13,329 14,620 (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 September 30, For the Nine Months Ended September30, OPERATING STATISTICS 2026 2025 2026 2025 Net revenue ($000) (c) Homecare $ 405,969 $ 362,405 $ 1,168,407 $ 1,072,014 Inpatient 36,407 33,099 108,006 100,145 Continuous care 21,159 19,946 58,689 68,222 Other 6,421 5,807 18,204 16,898 Subtotal $ 469,956 $ 421,257 $ 1,353,306 $ 1,257,279 Room and board, net (3,982) (3,859) (11,178) (11,277) Contractual allowances (7,743) (3,571) (17,663) (9,875) Medicare cap allowance (828) (6,086) (3,703) (24,786) Net Revenue $ 457,403 $ 407,741 $ 1,320,762 $ 1,211,341 Net revenue as a percent of total before Medicarecap allowance Homecare 86.4 % 86.0 % 86.3 % 85.3 % Inpatient 7.7 7.9 8.0 8.0 Continuous care 4.5 4.7 4.3 5.4 Other 1.4 1.4 1.4 1.3 Subtotal 100.0 100.0 100.0 100.0 Room and board, net (0.8) (0.8) (0.8) (0.9) Contractual allowances (1.7) (0.8) (1.3) (0.8) Medicare cap allowance (0.2) (1.4) (0.3) (2.0) Net Revenue 97.3 % 97.0 % 97.6 % 96.3 % Days of care Homecare 1,872,071 1,685,859 5,356,050 4,980,883 Nursing home 312,663 309,192 910,534 923,458 Respite 12,502 12,184 35,684 33,619 Subtotal routine homecare and respite 2,197,236 2,007,235 6,302,268 5,937,960 Inpatient 30,494 28,530 90,671 86,447 Continuous care 19,683 18,309 55,065 62,576 Total 2,247,413 2,054,074 6,448,004 6,086,983 Number of days in relevant time period 92 92 273 273 Average daily census ("ADC") (days) Homecare 20,348 18,325 19,619 18,245 Nursing home 3,399 3,361 3,335 3,383 Respite 136 132 131 123 Subtotal routine homecare and respite 23,883 21,818 23,085 21,751 Inpatient 331 310 332 317 Continuous care 214 199 202 229 Total 24,428 22,327 23,619 22,297 Total Admissions 18,995 17,714 57,514 53,398 Total Discharges 18,426 17,348 55,130 52,931 Average length of stay (days) 103.5 109.7 102.5 121.9 Median length of stay (days) 17.0 18.0 16.0 18.0 ADC by major diagnosis Cerebro 44.1 % 44.1 % 44.4 % 44.6 % Neurological 11.2 11.6 11.1 11.8 Cancer 9.2 10.1 9.4 9.8 Cardio 16.8 15.9 16.6 16.0 Respiratory 8.1 7.7 7.9 7.4 Other 10.6 10.6 10.6 10.4 Total 100.0 % 100.0 % 100.0 % 100.0 % Admissions by major diagnosis Cerebro 28.0 % 27.1 % 27.5 % 27.6 % Neurological 6.7 6.9 6.9 6.8 Cancer 24.7 26.6 24.3 25.9 Cardio 14.9 14.3 15.3 14.7 Respiratory 12.3 10.5 12.2 10.9 Other 13.4 14.6 13.8 14.1 Total 100.0 % 100.0 % 100.0 % 100.0 %
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Estimated uncollectible accounts as a percent ofrevenues 1.2 % 0.9 % 1.3 % 0.8 % Accounts receivable -- Days of revenue outstanding-excluding unappliedMedicare payments 39.0 37.5 n.a. n.a. Days of revenue outstanding-including unappliedMedicare payments 37.4 34.0 n.a. n.a.
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CHEMED CORPORATION AND SUBSIDIARY COMPANIES FOOTNOTES TO FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 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 September 30, 2026 VITAS Roto-Rooter Corporate Consolidated Legal settlements $ (6,705) $ - $ (308) $ (7,013) Stock option expense - - (5,984) (5,984) Long-term incentive compensation - - (3,151) (3,151) Amortization of reacquired franchise agreements - (2,352) - (2,352) Acquisition expense - (1,726) - (1,726) Pretax impact on earnings (6,705) (4,078) (9,443) (20,226) Excess tax expenses on stock compensation - - (521) (521) Income tax benefit on the above 1,629 950 1,091 3,670 After-tax impact on earnings $ (5,076) $ (3,128) $ (8,873) $ (17,077) Nine Months Ended September 30, 2026 VITAS Roto-Rooter Corporate Consolidated Stock option expense $ - $ - $ (24,285) $ (24,285) Legal settlements (7,253) - (308) (7,561) Amortization of reacquired franchise agreements - (7,056) - (7,056) Long-term incentive compensation - - (6,904) (6,904) Acquisition expense (8) (1,953) - (1,961) Pretax impact on earnings (7,261) (9,009) (31,497) (47,767) Excess tax expenses on stock compensation - - (1,022) (1,022) Income tax benefit on the above 1,764 2,100 4,432 8,296 After-tax impact on earnings $ (5,497) $ (6,909) $ (28,087) $ (40,493) (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 September 30, 2025 VITAS Roto-Rooter Corporate Consolidated Stock option expense $ - $ - $ (6,067) $ (6,067) Legal settlements (2,850) - - (2,850) Amortization of reacquired franchise agreements - (2,352) - (2,352) Long-term incentive compensation - - 216 216 Other - - (2,665) (2,665) Pretax impact on earnings (2,850) (2,352) (8,516) (13,718) Income tax benefit on the above 698 546 805 2,049 After-tax impact on earnings $ (2,152) $ (1,806) $ (7,711) $ (11,669) Nine Months Ended September 30, 2025 VITAS Roto-Rooter Corporate Consolidated Stock option expense $ - $ - $ (24,374) $ (24,374) Amortization of reacquired franchise agreements - (7,056) - (7,056) Long-term incentive compensation - - (3,294) (3,294) Legal settlements (2,850) - - (2,850) Other - - (2,665) (2,665) Pretax impact on earnings (2,850) (7,056) (30,333) (40,239) Excess tax benefits on stock compensation - - 513 513 Income tax benefit on the above 698 1,637 4,177 6,512 After-tax impact on earnings $ (2,152) $ (5,419) $ (25,643) $ (33,214)
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(c) VITAS has 14large (greaterthan 450ADC), 25medium(greater than200 but lessthan 450ADC) and 21small (lessthan 200ADC) hospiceprograms. OfVitas' 33Medicareprovidernumbers, forthe current capyear, 21providernumbers havea Medicarecap cushion ofgreater than10%, sevenprovidernumbers havea Medicarecap cushionbetween 0%and 10%, andfive providernumbers havea Medicarecap liability.