Slide 1: Results as of December 31, 2023
Results as of December 31, 2023
Slide 2: Safe Harbor and Regulation G Statement
Safe Harbor and Regulation G Statement 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 understan
Slide 3: Cumulative Results Since the VITAS Acquisition
Cumulative Results Since the VITAS Acquisition For the years ended December 31, 2003 through 2023 (1) (2) (3) CAGR One Three Twenty Year Year Year (a) Chemed (1) Service revenues and sales 6.1% 2.9% 11.4% (2) Adj. net income 8.8% 1.3% 20.1% (3) Adj. diluted EPS from continuing operations 8.1% 3.9% 2
Slide 4: Chemed – Purchase of Capital Stock
Chemed – Purchase of Capital Stock For the Period January 1, 2007, through December 31, 2023 (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,
Slide 5: Adj. EPS and Stock Price History
(1) (2) Adj. EPS and Stock Price History Chemed has delivered strong and consistent EPS to Adj. Diluted stockholders since 2003, 21.7% 20-year CAGR Adj. Stock EPS Price $21.00 $600 $20.00 $575 $19.00 $550 $18.00 $525 $17.00 $500 $16.00 $475 $450 $15.00 $425 $14.00 $400 $13.00 $375 $12.00 $350 $11.00
Slide 6: Chemed – Consolidated Summary of Operations
Chemed – Consolidated Summary of Operations For the years ended December 31, 2003 through 2023 (in thousands, except per share data) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) Average Annual 2003 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Inc./(Dec.) (1)
Slide 7: Chemed - Results from Continuing Operations
Chemed - Results from Continuing Operations (in thousands, except per share data) (1) (2) (3) Full-Year Results Fav/(Unfav) 2022 2023 % Growth (1) Service Revenues and Sales $2,134,963 $2,264,417 6.1% (2) Adj. EBITDA (a) 432,660 451,897 4.4% (3) Adj. EBITDA Margin (a) 20.3% 20.0% (0.3 pts.) (4) Adj.
Slide 8: Chemed Corporation Revenue
Chemed Corporation Revenue 2022 2023 Roto-Rooter Roto-Rooter 44% 42% 56% 58% VITAS VITAS Chemed Chemed Roto-Rooter Central Support Chemed Roto-Rooter Central Support Chemed Central Support 1.3% Central Support 1.1% Adjusted EBITDA Adjusted EBITDA 10.4% (a) 10.1% (a) Roto-Rooter 20.3% 20.0% COS Roto-
Slide 9: Plumbing & Water Cleanup
PLUMBING & WATER CLEANUP
Slide 10: Roto-Rooter Company Overview
Roto-Rooter Company Overview ◆ Largest provider of plumbing and drain cleaning services in North America Provides plumbing services to approximately 90% of the United States and 40% of the Canadian population ◆ Provides plumbing and drain cleaning services in 127 company-owned territories and 369
Slide 11: Chemed Growth Strategy – Roto-Rooter
Chemed Growth Strategy – Roto-Rooter ◆ 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
Slide 12: Roto-Rooter – Gross Revenue Analysis
Roto-Rooter – Gross Revenue Analysis ($000) $368.2 $392.1 $427.8 $453.6 $518.5 $592.0 $663.6 $750.7 $882.5 $938.0 $957.1 $1,000 $950 $900 $850 $800 $750 $700 $650 Millions $600 $550 $500 $450 $400 $350 $300 $250 $200 $150 $100 $50 $0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Drain Clean
Slide 13: Roto-Rooter – Summary of Operations 2004-2012
Roto-Rooter – Summary of Operations 2004 through 2012 (in thousands, except percentages) (1) (2) (3) (4) (5) (6) (7) (8) (9) 2004 2005 2006 2007 2008 2009 2010 2011 2012 (1) Service Revenues $ 276,611 $ 297,337 $ 319,495 $ 344,632 $ 340,496 $ 335,893 $ 354,735 $ 369,698 $ 363,006 and Sales (a) (2) E
Slide 14: Roto-Rooter – Summary of Operations 2013-2023
Roto-Rooter – Summary of Operations 2013 through 2023 (in thousands, except percentages) (1) (2) (3) (4) (5) (6) (7) (8) (9) (9) (10) (11) Average Annual Inc./(Dec.) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2004-2023 (1) Service Revenues $ 368,216 $ 392,077 $ 427,837 $ 453,564 $ 518,46
Slide 15: Roto-Rooter – Results from Continuing Operations
Roto-Rooter – Results from Continuing Operations ($000) (1) (2) (3) Full-Year Results Fav/(Unfav) 2022 2023 % Growth (1) Service Revenues and Sales $ 933,399 $ 949,352 1.7% (2) Net Income (GAAP) 186,120 188,241 1.1% (3) Adj. EBITDA (a) (b) 273,760 269,570 (1.5%) (4) Adj. EBITDA Margin (a) (b) 29.3%
Slide 16: Future of Roto-Rooter
Future of Roto-Rooter ◆ 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 d
Slide 17: VITAS Healthcare
_ VITAS Healthcare
Slide 18: VITAS Healthcare Company Overview
VITAS Healthcare Company Overview ◆ One of the largest providers of hospice services for patients with severe, life-limiting illnesses with approximately 7% of the U.S. market share ◆ Operates a comprehensive range of hospice services through 50 operating programs in 14 states and the District of Co
Slide 19: VITAS – Analysis of Revenue
VITAS – Analysis of Revenue Days of Care - 2023 Revenues - 2023 1.5% 1.3% 8% 7% 97.2% 85% Revenue and Expenses - 2023 Adjusted EBITDA - 2023 Field Patient Hospice Program 77.4% Care Direct 51.5% 12.1% Income 7.1% 7.1% Taxes 24.3% 17.1% 3.5% Hospice Central Net Depreciation - Program Central Amortiza
Slide 20: VITAS – Operations as a Percent of Revenue
VITAS – Operations as a Percent of Revenue 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2004 2006 2008 2010 2012 2014 2016 2017 2018 2019 2020 2021 2022 2023 Revenue Cost of Field Based Patient Care as a % of Sales Central Support Overhead as a % of Revenue Adj. Net Income as a % of Sales (1) 2018 -
Slide 21: VITAS – Locations
VITAS – 50 Locations (as of December 31, 2023) 21 Chemed Corporation
Slide 22: VITAS 2023 Discharge Rate – Total
VITAS 2023 Discharge Rate – Total Population: 61,542 patients (MLOS 16) Median 22 Chemed Corporation
Slide 23: VITAS 2023 Discharge Rate – Total
VITAS 2023 Discharge Rate – Total After 180 Days Population: 9,378 patients 23 Chemed Corporation
Slide 24: VITAS Admissions by Diagnosis - 2023
VITAS Admissions by Diagnosis - 2023 Cancer 12.1% 26.0% 9.4% Cardio 10.1% Cerebro 16.0% 26.4% Respiratory Neurological All Other 24 Chemed Corporation
Slide 25: VITAS 2023 Discharge Rate – All Diagnosis
VITAS 2023 Discharge Rate – All Diagnosis Population: 61,542 25 Chemed Corporation
Slide 26: Analysis of VITAS Discharges 2004-2023
Analysis of VITAS Discharges 2004-2023 Total Discharges Total Live Discharges 26 Chemed Corporation
Slide 27: VITAS Analysis of Gross Revenue By Level of Care
VITAS Analysis of Gross Revenue By Level of Care 2003 through 2023 ($000) 1,400,000 1,300,000 1,200,000 1,100,000 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 - 2003 2005 2007 2009 2011 2013 2015 2016 2017 2018 2019 2020 2021 2022 2023 Total Routine Care Continuo
Slide 28: VITAS Analysis of Average Daily Census (ADC)
VITAS Analysis of Average Daily Census (ADC) 2003 through 2023 20,000 17,742 18,846 19,042 18,613 18,003 16,550 15,992 17,325 18,000 15,385 14,383 16,000 13,406 14,000 11,980 11,477 10,030 12,000 10,000 7,428 8,000 6,000 4,000 2,000 - 2003 2005 2007 2009 2011 2013 2015 2016 2017 2018 2019 2020 2021
Slide 29: VITAS Direct Gross Profit Contribution Margin By Level of Care
VITAS Analysis of Direct Gross Profit Contribution Margin By Level of Care 2003 through 2023 (in millions) $700 $600 $500 $400 $300 $200 $100 $0 2003 2005 2007 2009 2011 2013 2015 2016 2017 2018 2019 2020 2021 2022 2023 Total Routine Care Continuous Care Inpatient Care 29 Chemed Corporation
Slide 30: VITAS – Summary of Operations 2004-2012
VITAS – Summary of Operations (a) For The Years Ended December 31, 2004 through 2012 (in thousands, except percentages) (1) (2) (3) (4) (5) (6) (7) (8) (9) 2004 2005 2006 2007 2008 2009 2010 2011 2012 (1) Service Revenues and Sales $ 531,136 $ 618,613 $ 699,092 $ 755,426 $ 808,445 $ 854,343 $ 925,81
Slide 31: VITAS – Summary of Operations 2013-2023
VITAS – Summary of Operations For The Years Ended December 31, 2013 through 2023 (in thousands, except percentages) (1) (2) (3) (4) (5) (6) (7) (8) (9) (9) (10) (11) Average Annual Inc./(Dec.) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2004-2023 (1) Service Revenues and Sales $ 1,045,113
Slide 32: VITAS – Operating Results
(a) VITAS – Operating Results (in thousands, except percentages) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (1) (14) (15) Average Annual 2003 (b) 2004 (b) 2006 2008 2010 2012 2014 2016 2017 2018 2019 2020 2021 2022 2023 Inc./(Dec.) (1) Net Service Revenue $ 441,017 $ 531,136 $ 699,092 $
Slide 33: VITAS – Results from Continuing Operations
VITAS – Results from Continuing Operations ($000) (1) (2) (3) Full-Year Results Fav/(Unfav) 2022 2023 % Growth (1) Service Revenues Before Medicare Cap $ 1,209,432 $ 1,323,065 9.4% (2) Medicare Cap (7,868) (8,000) (1.7%) (3) Net Service Revenues and Sales $ 1,201,564 $ 1,315,065 9.4% (4) Adj. Net In
Slide 34: Future of VITAS
Future of VITAS Short-term ◆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 Long-term ◆
Slide 35: VITAS – Operating Metrics ($000)
VITAS – Operating Metrics ($000) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) (20) 2019 2020 2021 2022 2023 Operating Metrics Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 (1) Average Daily Census (ADC) 18,345 18,681 19,086 19,258 19,215 19,195
Slide 36: Appendix
Appendix
Slide 37: EPS and Stock Price History
(1) (2) EPS and Stock Price History Chemed has delivered strong and consistent EPS to Diluted EPS stockholders since 2003, 18.9% 20-year CAGR Adj. Stock (GAAP) Price $20.00 $600 $19.00 $575 $18.00 $550 $525 $17.00 $500 $16.00 $475 $15.00 $450 $14.00 $425 $13.00 $400 $375 $12.00 $350 $11.00 $325 $10.
Slide 38: Medicare Hospice Spending (in billions)
Medicare Hospice Spending (in billions) $22.4 $23.1 $24.0 $20.9 $22.0 $19.2 $17.9 $20.0 $16.8 $15.9 $18.0 $15.1 $15.1 $15.1 $13.8 $16.0 $12.9 $12.0 $14.0 $12.0 $10.0 $8.0 $6.0 $4.0 $2.4 8% 7% 9% 0% 0% 5% 6% 7% 7% 9% 7% 3% $2.0 $0.0 1999 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 202
Slide 39: Growth in Hospice Programs
Growth in Hospice Programs 5,358 5,058 4,840 4,488 4,639 4,382 4,092 4,199 3,928 3,585 3,727 3,498 2,255 2000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Source: MedPAC Report to the Congress – 2011 through 2023 39 Chemed Corporation
Slide 40: Reconciliation of Adjusted EBITDA 2004-2023
CHEMED CORPORATION RECONCILIATION OF ADJUSTED EBITDA FOR THE YEARS ENDED DECEMBER 31, 2004 THROUGH 2023 (IN THOUSANDS) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) 2004 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Reconciliation of Adjusted EBITDA (1) Ne
Slide 41: Reconciliation of Adjusted Net Income 2004-2023
CHEMED CORPORATION RECONCILIATION OF ADJUSTED NET INCOME FOR THE YEARS ENDED DECEMBER 31, 2004 THROUGH 2023 (IN THOUSANDS) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) 2004 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Reconciliation of Adjusted Net Incom
Slide 42: Roto-Rooter Group Reconciliation of Adjusted EBITDA and Net Income
ROTO-ROOTER GROUP RECONCILIATION OF ADJUSTED EBITDA and ADJUSTED NET INCOME FOR THE YEARS ENDED DECEMBER 31, 2004 THROUGH 2023 (IN THOUSANDS) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) (20) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 20
Slide 43: VITAS Healthcare Group Reconciliation of Adjusted EBITDA and Net Income
VITAS HEALTHCARE GROUP RECONCILIATION OF ADJUSTED EBITDA and ADJUSTED NET INCOME FOR THE YEARS ENDED DECEMBER 31, 2004 THROUGH 2023 (a) (IN THOUSANDS) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) 2004 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Reconcil
Slide 44: Reconciliation of Adjusted EBITDA and Adjusted Net Income 2022-2023
CHEMED CORPORATION RECONCILIATION OF ADJUSTED EBITDA AND ADJUSTED NET INCOME FOR THE YEARS OF 2022 AND 2023 (IN THOUSANDS) 2022 2023 Reconciliation of Adjusted EBITDA (1) Net income $ 249,624 $ 272,509 (2) Interest expense 4,584 3,108 (3) Income taxes 80,055 77,858 (4) Depreciation 49,102 50,802 (5)
Slide 45: Roto-Rooter Reconciliation of Adjusted EBIT and Adjusted EBITDA
ROTO-ROOTER GROUP RECONCILIATION OF ADJUSTED EBIT AND ADJUSTED EBITDA FOR THE YEARS OF 2022 AND 2023 (IN THOUSANDS) 2022 2023 Reconciliation of Adjusted EBIT and EBITDA (1) Net income $ 186,120 $ 188,241 (2) Interest expense 396 442 (3) Income taxes 58,695 50,125 (4) EBIT 245,211 238,808 Add/(deduct
Slide 46: VITAS Reconciliation of Adjusted EBITDA 2022-2023
RECONCILIATION OF ADJUSTED EBITDA FOR THE YEARS OF 2022 AND 2023 (IN THOUSANDS) Reconciliation of Adjusted EBITDA 2022 2023 (1) Net income $ 131,452 $ 158,509 (2) Interest expense 172 180 (3) Income taxes 43,000 46,115 (4) Depreciation 21,955 19,959 (5) Amortization 101 104 (6) EBITDA 196,680 224,86
Slide 47: 255 East 5th Street, Cincinnati, OH
255 East 5th Street Suite 2600 Kevin J. McNamara Cincinnati, OH 45202 President and CEO kevin.mcnamara@chemed.com (513) 762-6690 Phone Michael D. Witzeman VP, CFO and Controller (513) 762-6919 Fax michael.witzeman@chemed.com www.chemed.com