Slide 1: Results as of September 30, 2023
Results as of September 30, 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 2022 (1) (2) (3) CAGR One Three Nineteen Year Year Year (a) Chemed (1) Service revenues and sales (0.2%) 0.9% 11.7% (2) Adj. net income (3.2%) 9.0% 20.7% (3) Adj. diluted EPS from continuing operations 2.2%
Slide 4: Chemed – Purchase of Capital Stock
Chemed – Purchase of Capital Stock For the Period January 1, 2007, through September 30, 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, 22.8% 19-year CAGR Adj. Stock EPS Price $20.00 $550 $19.00 $525 $18.00 $500 $17.00 $475 $16.00 $450 $15.00 $425 $14.00 $400 $375 $13.00 $350 $12.00 $325 $11.00 $300 $10.00
Slide 6: Chemed – Consolidated Summary of Operations
Chemed – Consolidated Summary of Operations For the years ended December 31, 2003 through 2022 (in thousands, except per share data) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) Average Annual 2003 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Inc./(Dec.) (1)
Slide 7: Chemed - Results from Continuing Operations
Chemed - Results from Continuing Operations (in thousands, except per share data) (1) (2) (3) (4) (5) (6) Full-Year Results Nine Months Ended September 30, Fav/(Unfav) Fav/(Unfav) 2021 2022 % Growth 2022 2023 % Growth (1) Service Revenues and Sales $2,139,261 $2,134,963 (0.2%) $ 1,588,309 $ 1,678,50
Slide 8: Chemed Corporation Revenue
Chemed Corporation Revenue 2022 2021 Roto-Rooter Roto-Rooter 44% 41% 56% 59% VITAS VITAS Chemed Chemed Roto-Rooter Central Support Chemed Roto-Rooter Central Support Chemed Central Support 1.3% Central Support 1.5% Adjusted EBITDA Adjusted EBITDA 10.4% (a) 9.9% (a) Roto-Rooter 20.3% 21.6% COS Roto-R
Slide 9: Roto-Rooter
ROTO- ( ROOTER.
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 ($000)
Roto-Rooter – Gross Revenue Analysis ($000) $368.2 $392.1 $427.8 $453.6 $518.5 $592.0 $663.6 $750.7 $882.5 $933.0 $950 $900 $850 $800 $750 $700 $650 $600 Millions $550 $500 $450 $400 $350 $300 $250 $200 $150 $100 $50 $0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Drain Cleaning & STP Plumbing
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 2013-2022
Roto-Rooter – Summary of Operations 2013 through 2022 (in thousands, except percentages) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) Average Annual Inc./(Dec.) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2004-2022 (1) Service Revenues $ 368,216 $ 392,077 $ 427,837 $ 453,564 $ 518,464 $ 585,0
Slide 15: Roto-Rooter – Results from Continuing Operations
Roto-Rooter – Results from Continuing Operations ($000) (1) (2) (3) (4) (5) (6) Full-Year Results Nine Months Ended September 30, Fav/(Unfav) Fav/(Unfav) 2021 2022 % Growth 2022 2023 % Growth (1) Service Revenues and Sales $ 878,015 $ 933,399 6.3% $ 649,803 $ 713,439 9.8% (2) Net Income (GAAP) 166,3
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 - 2022 Revenues - 2022 1.5% 1.3% 8% 6% 97.2% 86% Revenue and Expenses - 2022 Adjusted EBITDA - 2022 Field Patient Hospice Program 77.6% Care Direct 50.8% 10.9% Income 7.1% 7.4% Taxes 27.0% 15.1% 3.6% 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 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 - 2022
Slide 21: VITAS – 49 Locations (as of December 31, 2022)
VITAS – 49 Locations (as of December 31, 2022) 21 Chemed Corporation
Slide 22: VITAS 2022 Discharge Rate – Total
VITAS 2022 Discharge Rate – Total Population: 60,930 patients (MLOS 16) Median 22 Chemed Corporation
Slide 23: VITAS 2022 Discharge Rate – Total After Days
VITAS 2022 Discharge Rate – Total After 180 Days Population: 9,607 patients 23 Chemed Corporation
Slide 24: VITAS Admissions by Diagnosis - 2022
VITAS Admissions by Diagnosis - 2022 Cancer 11.6% 26.3% Cardio 12.3% 10.3% 14.9% Cerebro Respiratory 24.6% Neurological All Other 24 Chemed Corporation
Slide 25: VITAS 2022 Discharge Rate – All Diagnosis
VITAS 2022 Discharge Rate – All Diagnosis Population: 60,930 100% 90% 80% Cancer 26.5% of Total (MLOS 12) 70% Cardio 14.8% of Total (MLOS 22) Cerebro 24.1% of Total (MLOS 37) 60% Gastro 0.2% of Total (MLOS 4) 50% HIV 0.1% of Total (MLOS 8) Infect 1.3% of Total (MLOS 3) 40% Neuro 12.7% of Total (MLOS
Slide 26: Analysis of VITAS Discharges 2004-2022
Analysis of VITAS Discharges 2004-2022 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 2022 ($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 Total Routine Care Continuous Ca
Slide 28: VITAS Analysis of Average Daily Census (ADC)
VITAS Analysis of Average Daily Census (ADC) 2003 through 2022 18,846 19,042 20,000 18,003 17,742 17,325 18,000 16,550 15,992 15,385 16,000 14,383 13,406 14,000 11,980 11,477 12,000 10,030 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 2022 To
Slide 29: VITAS Analysis of Direct Gross Profit Contribution Margin By Level of Care
VITAS Analysis of Direct Gross Profit Contribution Margin By Level of Care 2003 through 2022 (in millions) $700 $600 $500 $400 $300 $200 $100 $0 2003 2005 2007 2009 2011 2013 2015 2016 2017 2018 2019 2020 2021 2022 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 2013-2022
VITAS – Summary of Operations For The Years Ended December 31, 2013 through 2022 (in thousands, except percentages) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) Average Annual Inc./(Dec.) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2004-2022 (1) Service Revenues and Sales $ 1,045,113 $ 1,064,
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) (14) (15) Average Annual 2003 (b) 2004 (b) 2006 2008 2010 2012 2014 2016 2017 2018 2019 2020 2021 2022 Inc./(Dec.) (1) Net Service Revenue $ 441,017 $ 531,136 $ 699,092 $ 808,445
Slide 33: VITAS – Results from Continuing Operations
VITAS – Results from Continuing Operations ($000) (1) (2) (3) (4) (5) (6) Full-Year Results Nine Months Ended September 30, Fav/(Unfav) Fav/(Unfav) 2021 2022 % Growth 2022 2023 % Growth (1) Service Revenues Before Medicare Cap $ 1,267,843 $ 1,209,432 (4.6%) $ 898,624 $ 970,691 8.0% (2) Medicare Cap
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) VITAS - Operating Metrics ($000) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) 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 (1) Average Daily Census (ADC) 18,345 18,681 19,
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, 19.5% 19-year CAGR Adj. Stock (GAAP) Price $20.00 $550 $19.00 $525 $18.00 $500 $17.00 $475 $16.00 $450 $15.00 $425 $400 $14.00 $375 $13.00 $350 $12.00 $325 $11.00 $300 $10.00 $2
Slide 38: Medicare Hospice Spending (in billions)
Medicare Hospice Spending (in billions) $20.9 $19.2 $17.9 $16.8 $15.9 $15.1 $15.1 $15.1 $13.8 $12.9 $12.0 $2.4 8% 7% 9% 0% 0% 5% 6% 7% 7% 9% Sources: MedPAC Report to the Congress – 2011 - 2022 Annual Report of the Boards of Trustees of the Federal Hospital Insurance and Federal Supplementary Medica
Slide 39: Growth in Hospice Programs
Growth in Hospice Programs 4,840 5,058 4,382 4,488 4,639 4,092 4,199 3,498 3,585 3,727 3,925 2,255 2000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: MedPAC Report to the Congress – 2011 through 2022 39 Chemed Corporation
Slide 40: Reconciliation of Adjusted EBITDA 2004-2022
CHEMED CORPORATION RECONCILIATION OF ADJUSTED EBITDA FOR THE YEARS ENDED DECEMBER 31, 2004 THROUGH 2022 (IN THOUSANDS) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) 2004 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Reconciliation of Adjusted EBITDA (1) Net income/(
Slide 41: Reconciliation of Adjusted Net Income 2004-2022
CHEMED CORPORATION RECONCILIATION OF ADJUSTED NET INCOME FOR THE YEARS ENDED DECEMBER 31, 2004 THROUGH 2022 (IN THOUSANDS) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) 2004 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Reconciliation of Adjusted Net Income (1) Net
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 2022 (IN THOUSANDS) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20
Slide 43: 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 2022 (a) (IN THOUSANDS) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) 2004 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Reconciliation of
Slide 44: Reconciliation for the First Nine Months of 2022 and 2023
CHEMED CORPORATION RECONCILIATION OF ADJUSTED EBITDA AND ADJUSTED NET INCOME FOR THE FIRST NINE MONTHS OF 2022 AND 2023 (IN THOUSANDS) 2022 2023 Reconciliation of Adjusted EBITDA (1) Net income $ 187,498 $ 182,456 (2) Interest expense 2,983 2,766 (3) Income taxes 59,781 52,318 (4) Depreciation 37,00
Slide 45: Roto-Rooter Group Reconciliation of Adjusted EBIT and EBITDA
ROTO-ROOTER GROUP RECONCILIATION OF ADJUSTED EBIT AND ADJUSTED EBITDA FOR THE FIRST NINE MONTHS OF 2022 AND 2023 (IN THOUSANDS) 2022 2023 Reconciliation of Adjusted EBIT and EBITDA (1) Net income $ 138,595 $ 142,354 (2) Interest expense 319 387 (3) Income taxes 43,867 38,315 (4) EBIT 182,781 181,056
Slide 46: VITAS Healthcare Group Reconciliation of Adjusted EBITDA
VITAS HEALTHCARE GROUP RECONCILIATION OF ADJUSTED EBITDA FOR THE FIRST NINE MONTHS OF 2022 AND 2023 (IN THOUSANDS) Reconciliation of Adjusted EBITDA 2022 2023 (1) Net income $ 97,779 $ 95,223 (2) Interest expense 142 154 (3) Income taxes 32,199 28,503 (4) Depreciation 16,894 14,907 (5) Amortization
Slide 47: Chemed Corporation Contact Details
255 East 5th Street Suite 2600 Kevin J. McNamara Cincinnati, OH 45202 President and CEO kevin.mcnamara@chemed.com (513) 762-6690 Phone David P. Williams EVP and CFO (513) 762-6919 Fax dwilliams@chemed.com www.chemed.com