Chemed Reports First-Quarter 2013 Results

  Chemed Reports First-Quarter 2013 Results

                  Reaffirms Full-Year 2013 Earnings Guidance

Business Wire

CINCINNATI -- April 18, 2013

Chemed Corporation (Chemed) (NYSE:CHE),  which operates VITAS Healthcare
Corporation (VITAS), the nation’s largest provider of end-of-life care, and
Roto-Rooter, the nation’s largest commercial and residential plumbing and
drain cleaning services provider, reported financial results for its first
quarter ended March 31, 2013, versus the comparable prior-year period, as
follows:

Consolidated operating results:

  *Revenue increased 3.9% to $367 million
  *GAAP Diluted EPS increased 10.4% to $1.17
  *Adjusted Diluted EPS increased 14.0% to $1.38

VITAS segment operating results:

  *Net Patient Revenue of $271 million, an increase of 4.0%
  *Average Daily Census (ADC) of 14,432, an increase of 5.3%
  *Admissions of 17,137, an increase of 5.0%
  *Net Income of $20.1 million, an increase of 2.6%
  *Adjusted EBITDA of $37.6 million, an increase of 5.9%
  *Adjusted EBITDA margin of 13.8%, a increase of 24 basis points

Roto-Rooter segment operating results:

  *Revenue of $95.3 million, an increase of 3.5%
  *Unit-for-unit job count of 168,967, an increase of 0.1%
  *Net Income of $9.6 million, a increase of 28.4%
  *Adjusted EBITDA of $17.4 million, an increase of 24.1%
  *Adjusted EBITDA margin of 18.3%, an increase of 304 basis points

                                    VITAS

Net revenue for VITAS was $271 million in the first quarter of 2013, which is
an increase of 4.0% over the prior-year period. This revenue growth was the
result of increased ADC of 5.3%, driven by an increase in admissions of 5.0%,
increased discharges of 4.0% and Medicare price increases of approximately
0.9%. Revenue growth aggregated 5.9% excluding the impact of 2012 leap year
and the impact of revenue recognition related from the reversal of prior years
Medicare Cap accruals.

In the first quarter of 2013, VITAS recorded a positive revenue adjustment of
$0.9 million related to eliminating the Medicare Cap billing limitation
recorded in the fourth quarter of 2012. This compares with $2.6 million of
additional revenue recorded in the first quarter of 2012.

Of VITAS’ 36 unique Medicare provider numbers, 31 provider numbers have a
Medicare Cap cushion of 10% or greater during the first six months of the 2013
Medicare Cap year; two provider numbers have a Medicare Cap cushion between 5%
to 10%; and three provider numbers have a cap cushion between 0% and 5%. VITAS
generated an aggregate cap cushion of $233 million during the trailing
twelve-month period.

Average revenue per patient per day in the quarter, excluding the impact of
Medicare Cap, was $208.23, which is 0.5% above the prior-year period. Routine
home care reimbursement and high acuity care averaged $164.51 and $713.65,
respectively, per patient per day in the first quarter of 2013. During the
quarter, high acuity days of care were 8.0% of total days of care, 10 basis
points below the prior-year quarter.

The first quarter of 2013 gross margin, excluding the impact of Medicare Cap,
was 21.2%, which is an 80 basis point improvement when compared to the first
quarter of 2012.

Selling, general and administrative expense was $21.6 million in the first
quarter of 2013, which is an increase of 9.4% when compared to the prior-year
quarter. Adjusted EBITDA totaled $37.6million in the quarter, an increase of
5.9% over the prior-year period. Adjusted EBITDA margin, excluding the impact
from Medicare Cap, was 13.6% in the quarter which is 83 basis points above the
prior-year quarter.

                                 Roto-Rooter

Roto-Rooter’s plumbing and drain cleaning business generated sales of $95.3
million for the first quarter of 2013, an increase of 3.5%, over the
prior-year quarter.

Total residential and commercial unit-for-unit job count increased 0.1% in the
first quarter of 2013 when compared to the prior-year period. This consisted
of a residential plumbing job count decline of 4.9% and residential drain
cleaning job increase of 5.4%, when compared to the first quarter of 2012.
Residential jobs represent over 70% of total job count in the quarter.
Commercial plumbing/excavation job count declined 2.6% and commercial drain
cleaning decreased 2.4% when compared to the prior-year quarter.

Roto-Rooter’s gross margin in the quarter was 46.3%, a 261 basis point
increase when compared to the first quarter of 2012. Adjusted EBITDA in the
first quarter of 2013 totaled $17.4million, an increase of 24.1%, and the
Adjusted EBITDA margin was 18.3% in the quarter, an increase of 304 basis
points.

                             Chemed Consolidated

Chemed had total cash and cash equivalents of $73 million, and debt of $177
million, at March31, 2013. This debt is net of the discount taken as a result
of convertible debt accounting requirements. Excluding this discount,
aggregate debt is $187million and is due in May 2014. Chemed’s total debt
equates to less than one times trailing twelve-month adjusted EBITDA.

In January 2013 Chemed entered into a five-year Amended and Restated Credit
Agreement that consists of a $350 million revolving credit facility. The
interest rate on this facility has a floating rate that is currently LIBOR
plus 125 basis points. At March 31, 2013, the Company had approximately $321
million of undrawn borrowing capacity under this credit agreement after
deducting $29 million for letters of credit issued to secure the Company’s
workers’ compensation insurance.

Capital expenditures for the first quarter of 2013 aggregated $5.4 million and
compares to depreciation and amortization during the same period of $7.9
million.

During the quarter, the Board of Directors authorized an additional $100
million for share repurchase. Chemed currently has $114.7 million of
authorization remaining under this share repurchase plan. The Company did not
repurchase any shares during the first quarter of 2013.

                              Guidance for 2013

Effective April 1, 2013, Medicare reduced hospice reimbursement rates 2.0% for
Medicare beneficiaries. This reduction impacts approximately 91.2% of Vitas’
revenue base and is factored into the 2013 guidance detailed below.

VITAS estimates its full-year 2013 revenue growth, prior to Medicare Cap, will
be in the range of 4.5% to 5.5%. Admissions in 2013 are estimated to increase
approximately 5.0% to 6.0% and full-year Adjusted EBITDA margin, prior to
Medicare Cap, is estimated to be 13.8% to 14.2%. Effective October1, 2012,
Medicare increased the average hospice reimbursement rates by approximately
0.9%. As a result of sequestration, effective April 1, 2013, this 0.9%
increase was reduced to a 1.1% decline in Medicare rates when compared to the
prior year.

Roto-Rooter estimates it will achieve full-year 2013 revenue growth of 2.5% to
4.0%. This revenue estimate is based upon increased job pricing of
approximately 1.5%, a favorable mix shift to higher revenue jobs, and job
count increasing 0.1% to 0.5%. Adjusted EBITDA margin for 2013 is estimated in
the range of 18.0% to 19.5%.

The negative effect of this reduction in Medicare reimbursement is offset by
increased profitability in the first quarter of 2013, combined with the
anticipated benefits of continued operational efficiencies in the hospice
segment, reduced risk of Medicare cap billing limitations, and continued
margin improvement in the Roto Rooter segment. Accordingly, management
reaffirms previous guidance that full-year 2013 earnings per diluted share,
excluding non-cash expense for stock options, the non-cash interest expense
related to the accounting for convertible debt and other items not indicative
of ongoing operations, will be in the range of $5.65 to $5.80. This compares
to Chemed’s 2012 reported adjusted earnings per diluted share of $5.29.

                               Conference Call

Chemed will host a conference call and webcast at 10 a.m., ET, on Friday,
April 19, 2013, to discuss the Company's quarterly results and to provide an
update on its business. The dial-in number for the conference call is (866)
953-6856 for U.S. and Canadian participants and (617)399-3480 for
international participants. The participant passcode is 15147522. A live
webcast of the call can be accessed on Chemed's website at www.chemed.com by
clicking on Investor Relations Home.

A taped replay of the conference call will be available beginning
approximately 24 hours after the call's conclusion. It can be accessed by
dialing (888) 286-8010 for U.S. and Canadian callers and (617) 801-6888 for
international callers and will be available for one week following the live
call. The replay passcode is 68047307. An archived webcast will also be
available at www.chemed.com.

Chemed Corporation operates in the healthcare field through its VITAS
Healthcare Corporation subsidiary. VITAS provides daily hospice services to
over 14,000 patients with severe, life-limiting illnesses. This type of care
is focused on making the terminally ill patient's final days as comfortable
and pain-free as possible.

Chemed operates in the residential and commercial plumbing and drain cleaning
industry under the brand name Roto-Rooter. Roto-Rooter provides plumbing and
drain service through company-owned branches, independent contractors and
franchisees in the United States and

Canada. Roto-Rooter also has licensed master franchisees in Indonesia,
Singapore, Japan, and the Philippines.

This press release contains information about Chemed’s EBITDA, Adjusted EBITDA
and Adjusted Diluted EPS, which are not measures derived in accordance with
GAAP and which exclude components that are important to understanding Chemed’s
financial performance. In reporting its operating results, Chemed provides
EBITDA, Adjusted EBITDA and Adjusted Diluted EPS measures to help investors
and others evaluate the Company’s operating results, compare its operating
performance with that of similar companies that have different capital
structures and evaluate its ability to meet its future debt service, capital
expenditures and working capital requirements. Chemed’s management similarly
uses EBITDA, Adjusted EBITDA and Adjusted Diluted EPS to assist it in
evaluating the performance of the Company across fiscal periods and in
assessing how its performance compares to its peer companies. These measures
also help Chemed’s management to estimate the resources required to meet
Chemed’s future financial obligations and expenditures. Chemed’s EBITDA,
Adjusted EBITDA and Adjusted Diluted EPS should not be considered in isolation
or as a substitute for comparable measures calculated and presented in
accordance with GAAP. We calculated Adjusted EBITDA Margin by dividing
Adjusted EBITDA by service 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 the text of this press release.

                          Forward-Looking Statements

Certain statements contained in this press release and the accompanying tables
are "forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. The words "believe," "expect," "hope,"
"anticipate," "plan" and similar expressions identify forward-looking
statements, which speak only as of the date the statement was made. Chemed
does not undertake and specifically disclaims any obligation to publicly
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise. These statements are based on current
expectations and assumptions and involve various risks and uncertainties,
which could cause Chemed's actual results to differ from those expressed in
such forward-looking statements. These risks and uncertainties arise from,
among other things, possible changes in regulations governing the hospice care
or plumbing and drain cleaning industries; periodic changes in reimbursement
levels and procedures under Medicare and Medicaid programs; difficulties
predicting patient length of stay and estimating potential Medicare
reimbursement obligations; challenges inherent in Chemed's growth strategy;
the current shortage of qualified nurses, other healthcare professionals and
licensed plumbing and drain cleaning technicians; Chemed’s dependence on
patient referral sources; and other factors detailed under the caption
"Description of Business by Segment" or "Risk Factors" in Chemed’s most recent
report on form 10-Q or 10-K and its other filings with the Securities and
Exchange Commission. You are cautioned not to place undue reliance on such
forward-looking statements and there are no assurances that the matters
contained in such statements will be achieved.


  CHEMED CORPORATION AND SUBSIDIARY COMPANIES
  CONSOLIDATED STATEMENT OF INCOME
  (in thousands, except per share data)(unaudited)
                                        
                                                                     
                                                  Three Months Ended March 31,
                                                  2013             2012
  Service revenues and sales                      $  366,641      $ 352,943 
  Cost of services provided and goods                264,307         257,445
  sold
  Selling, general and administrative                55,560          53,167
  expenses (aa)
  Depreciation                                       6,795           6,241
  Amortization                                      1,127         1,113   
         Total costs and expenses                   327,789       317,966 
         Income from operations                      38,852          34,977
  Interest expense                                   (4,094   )      (3,617  )
  Other income--net (bb)                            1,706         2,095   
         Income before income taxes                  36,464          33,455
  Income taxes                                      (14,186  )     (13,010 )
  Net income                                      $  22,278       $ 20,445  
                                                                     
  Earnings Per Share
         Net income                               $  1.20         $ 1.08    
         Average number of shares                   18,522        18,958  
         outstanding
                                                                     
  Diluted Earnings Per Share
         Net income                               $  1.17         $ 1.06    
         Average number of shares                   19,000        19,353  
         outstanding
                                                                     
  
  (aa)   Selling, general and administrative ("SG&A") expenses
         comprise (in thousands):
                                                  Three Months Ended March 31,
                                                  2013             2012
             SG&A expenses before long-term incentive
             compensation and the
             impact of market value gains
             related to deferred                  $  53,476        $ 51,034
             compensation plans
             Market value gains related
             to deferred compensation                1,472           2,133
             plans
             Long-term incentive                    612           -       
             compensation
                  Total SG&A expenses             $  55,560       $ 53,167  
                                                                     
  (bb)   Other income--net comprises
         (in thousands):
                                                  Three Months Ended March 31,
                                                  2013             2012
             Market value gains related
             to deferred compensation             $  1,472         $ 2,133
             plans
             Interest income                         303             51
             Loss on disposal of property            (78      )      (81     )
             and equipment
             Other                                  9             (8      )
                  Total other income--net         $  1,706        $ 2,095   
                                                                     


  CHEMED CORPORATION AND SUBSIDIARY COMPANIES
  CONSOLIDATED BALANCE SHEET
  (in thousands, except per share data)(unaudited)
                                                    
                                                                    
                                                   March 31,
                                                   2013           2012
  Assets
      Current assets
             Cash and cash equivalents             $ 72,956       $ 34,214
             Accounts receivable less                127,220        110,656
             allowances
             Inventories                             6,559          8,468
             Current deferred income taxes           14,816         13,725
             Prepaid income taxes                    2,159          637
             Prepaid expenses                       12,539       9,576    
                 Total current assets                236,249        177,276
      Investments of deferred compensation           39,144         35,055
      plans held in trust
      Properties and equipment, at cost              90,374         88,579
      less accumulated depreciation
      Identifiable intangible assets less            56,798         57,941
      accumulated amortization
      Goodwill                                       465,734        461,064
      Other assets                                  11,110       11,568   
                     Total Assets                  $ 899,409     $ 831,483  
                                                                    
  Liabilities
      Current
      liabilities
             Accounts payable                      $ 48,496       $ 52,999
             Income taxes                            12,912         13,334
             Accrued insurance                       43,041         37,305
             Accrued compensation                    38,552         35,834
             Other current liabilities              17,917       15,724   
                 Total current liabilities           160,918        155,196
      Deferred income taxes                          28,155         27,256
      Long-term debt                                 177,004        168,759
      Deferred compensation liabilities              38,481         34,186
      Other liabilities                             11,762       11,629   
                     Total Liabilities              416,320      397,026  
  Stockholders' Equity
      Capital stock                                  31,957         31,063
      Paid-in capital                                457,790        404,546
      Retained earnings                              641,946        564,130
      Treasury stock, at cost                        (650,668 )     (567,279 )
      Deferred compensation payable in              2,064        1,997    
      Company stock
                     Total Stockholders'            483,089      434,457  
                     Equity
                     Total Liabilities and         $ 899,409     $ 831,483  
                     Stockholders' Equity
                                                                    


CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands)(unaudited)
                                                        
                                                     Three Months Ended
                                                     March 31,
                                                     2013          2012
Cash Flows from Operating Activities
  Net income                                         $ 22,278      $ 20,445
  Adjustments to reconcile net income to net cash
  provided
    by operating activities:
      Depreciation and amortization                    7,922         7,354
      Provision for uncollectible accounts             2,967         2,245
      receivable
      Amortization of discount on convertible notes    2,114         1,975
      Stock option expense                             1,491         1,938
      Provision for deferred income taxes              (681    )     (3,397  )
      Noncash long-term incentive compensation         612           -
      Changes in operating assets and liabilities,
      excluding
         amounts acquired in business combinations:
            Increase in accounts receivable            (36,706 )     (34,949 )
            Decrease in inventories                    499           200
            Decrease/(increase) in prepaid expenses    (1,092  )     1,833
            Decrease in accounts payable and other     (698    )     (3,894  )
            current liabilities
            Increase in income taxes                   10,139        15,532
            Increase in other assets                   (3,071  )     (3,654  )
            Increase in other liabilities              3,282         5,241
      Excess tax benefit on share-based compensation   (1,891  )     (797    )
      Other sources                                   976         309     
         Net cash provided by operating activities    8,141       10,381  
Cash Flows from Investing Activities
  Capital expenditures                                 (5,406  )     (12,018 )
  Business combinations                                -             (415    )
  Other sources                                       78          311     
         Net cash used by investing activities        (5,328  )    (12,122 )
Cash Flows from Financing Activities
  Proceeeds from issuance of capital stock             10,168        1,042
  Capital stock surrendered to pay taxes on
  stock-based
    compensation                                       (3,389  )     (1,431  )
  Dividends paid                                       (3,367  )     (3,072  )
  Increase/(decrease) in cash overdrafts payable       (3,165  )     226
  Excess tax benefit on share-based compensation       1,891         797
  Debt issuance costs                                  (1,107  )     -
  Other sources/(uses)                                (419    )    312     
         Net cash used by financing activities        612         (2,126  )
Increase/(Decrease) in Cash and Cash Equivalents       3,425         (3,867  )
Cash and cash equivalents at beginning of year        69,531      38,081  
Cash and cash equivalents at end of period           $ 72,956     $ 34,214  
                                                                             


  CHEMED CORPORATION AND SUBSIDIARY COMPANIES
  CONSOLIDATING STATEMENT OF INCOME
  FOR THE THREE MONTHS ENDED MARCH 31, 2013 AND 2012
  (in thousands)(unaudited)
                                                               
                                                                             Chemed
                               VITAS         Roto-Rooter       Corporate     Consolidated
  2013
  Service revenues and         $ 271,326    $  95,315        $ -          $  366,641 
  sales
  Cost of services
  provided and goods             213,160        51,147           -              264,307
  sold
  Selling, general and
  administrative                 21,604         26,662           7,294          55,560
  expenses (a)
  Depreciation                   4,514          2,147            134            6,795
  Amortization                  491          154            482          1,127   
      Total costs and           239,769      80,110         7,910        327,789 
      expenses
      Income/(loss)              31,557         15,205           (7,910  )      38,852
      from operations
  Interest expense (a)           (46     )      (59    )         (3,989  )      (4,094  )
  Intercompany
  interest                       843            428              (1,271  )      -
  income/(expense)
  Other                         221          (1     )        1,486         1,706   
  income/(expense)—net
      Income/(loss)
      before income              32,575         15,573           (11,684 )      36,464
      taxes
  Income taxes (a)              (12,433 )     (5,949 )        4,196        (14,186 )
      Net                      $ 20,142     $  9,624         $ (7,488  )   $  22,278  
      income/(loss)
                                                                                
  2012
  Service revenues and         $ 260,847    $  92,096        $ -          $  352,943 
  sales
  Cost of services
  provided and goods             205,620        51,825           -              257,445
  sold
  Selling, general and
  administrative                 19,748         26,153           7,266          53,167
  expenses (b)
  Depreciation                   4,025          2,085            131            6,241
  Amortization                  490          154            469          1,113   
      Total costs and           229,883      80,217         7,866        317,966 
      expenses
      Income/(loss)              30,964         11,879           (7,866  )      34,977
      from operations
  Interest expense (b)           (62     )      (108   )         (3,447  )      (3,617  )
  Intercompany
  interest                       755            395              (1,150  )      -
  income/(expense)
  Other                         (31     )     (20    )        2,146        2,095   
  income/(expense)-net
      Income/(loss)
      before income              31,626         12,146           (10,317 )      33,455
      taxes
  Income taxes (b)              (11,999 )     (4,650 )        3,639        (13,010 )
      Net                      $ 19,627     $  7,496         $ (6,678  )   $  20,445  
      income/(loss)
                                                                                
  The "Footnotes to Financial Statements" are integral parts of this financial
  information.
  


  CHEMED CORPORATION AND SUBSIDIARY COMPANIES
  CONSOLIDATING SUMMARY OF EBITDA
  FOR THE THREE MONTHS ENDED MARCH 31, 2013 AND 2012
  (in thousands)(unaudited)
                                                         
                                                                        
                                                                     Chemed
                             VITAS        Roto-Rooter   Corporate    Consolidated
  2013
  Net income/(loss)          $ 20,142     $  9,624      $ (7,488 )   $  22,278
  Add/(deduct):
        Interest               46            59           3,989         4,094
        expense
        Income taxes           12,433        5,949        (4,196 )      14,186
        Depreciation           4,514         2,147        134           6,795
        Amortization          491         154        482         1,127   
            EBITDA             37,626        17,933       (7,079 )      48,480
  Add/(deduct):
        Expenses
        related to             1,039         -            -             1,039
        OIG
        investigation
        Acquisition            1             -            -             1
        expenses
        Expenses of
        severance              -             302          -             302
        arrangements
        Expenses
        related to             -             141          -             141
        litigation
        settlements
        Advertising
        cost                   -             (469   )     -             (469    )
        adjustment
        (c)
        Stock option           -             -            1,491         1,491
        expense
        Long-term
        incentive              -             -            612           612
        compensations
        Expenses
        related to             -             -            2             2
        securities
        litigation
        Interest               (246   )      (42    )     (15    )      (303    )
        income
        Intercompany
        interest              (843   )     (428   )    1,271       -       
        income/(expense)
            Adjusted         $ 37,577    $  17,437    $ (3,718 )   $  51,296  
            EBITDA
                                                                        
  2012
  Net income/(loss)          $ 19,627     $  7,496      $ (6,678 )   $  20,445
  Add/(deduct):
        Interest               62            108          3,447         3,617
        expense
        Income taxes           11,999        4,650        (3,639 )      13,010
        Depreciation           4,025         2,085        131           6,241
        Amortization          490         154        469         1,113   
            EBITDA             36,203        14,493       (6,270 )      44,426
  Add/(deduct):
        Expenses
        related to             71            -            -             71
        OIG
        investigation
        Acquisition            -             15           -             15
        expenses
        Expenses
        related to             -             647          -             647
        litigation
        settlements
        Advertising
        cost                   -             (706   )     -             (706    )
        adjustment
        (c)
        Stock option           -             -            1,938         1,938
        expense
        Interest               (30    )      (8     )     (13    )      (51     )
        income
        Intercompany
        interest              (755   )     (395   )    1,150       -       
        income/(expense)
            Adjusted         $ 35,489    $  14,046    $ (3,195 )   $  46,340  
            EBITDA
                                                                        
                                                                        
  The "Footnotes to Financial Statements" are integral parts of this financial
  information.
  


  CHEMED CORPORATION AND SUBSIDIARY COMPANIES
  RECONCILIATION OF ADJUSTED NET INCOME
  (in thousands, except per share data)(unaudited)
                                                     
                                                  Three Months Ended March 31,
                                                  2013             2012
  Net income as reported                          $   22,278       $   20,445
                                                                       
  Add/(deduct) after-tax cost of:
      Additional interest expense
      resulting from the change
         in accounting for the conversion             1,323            1,224
         feature of the convertible notes
      Stock option expense                            943              1,225
      Expenses related to OIG                         644              44
      investigation
      Long-term incentive compensation                387              -
      Loss on extinguishment of debt                  294              -
      Expenses of severance arrangements              184              -
      Expenses related to litigation                  86               393
      settlements
      Expenses related to securities                  1                -
      litigation
      Acquisition expenses                           -               9
  Adjusted net income                             $   26,140       $   23,340
                                                                       
                                                                       
  Earnings Per Share As Reported
      Net income                                  $   1.20         $   1.08
      Average number of shares                       18,522          18,958
      outstanding
  Diluted Earnings Per Share As Reported
      Net income                                  $   1.17         $   1.06
      Average number of shares                       19,000          19,353
      outstanding
                                                                       
                                                                       
  Adjusted Earnings Per Share
      Net income                                  $   1.41         $   1.23
      Average number of shares                       18,522          18,958
      outstanding
  Adjusted Diluted Earnings Per Share
      Net income                                  $   1.38         $   1.21
      Average number of shares                       19,000          19,353
      outstanding
                                                                       
  The "Footnotes to Financial Statements" are integral parts of this financial
  information.
  


  CHEMED CORPORATION AND SUBSIDIARY COMPANIES
  OPERATING STATISTICS FOR VITAS SEGMENT
  (unaudited)
                                        
                                                Three Months Ended March 31,
    OPERATING STATISTICS                        2013             2012
      Net revenue ($000) (d)
             Homecare                           $   196,660      $  186,597
             Inpatient                              28,468          29,152
             Continuous care                       45,325         42,521
                   Total before Medicare cap    $   270,453      $  258,270
                   allowance
             Medicare cap allowance                873            2,577
                   Total                        $   271,326      $  260,847
      Net revenue as a percent of total
      before Medicare cap allowance
             Homecare                               72.7      %     72.2     %
             Inpatient                              10.5            11.3
             Continuous care                       16.8           16.5
                   Total before Medicare cap        100.0           100.0
                   allowance
             Medicare cap allowance                0.3            1.0
                   Total                           100.3     %    101.0    %
      Average daily census ("ADC") (days)
             Homecare                               10,354          9,613
             Nursing home                          2,929          2,986
                   Routine homecare                 13,283          12,599
             Inpatient                              468             472
             Continuous care                       681            632
                   Total                           14,432         13,703
                                                                             
      Total Admissions                              17,137          16,322
      Total Discharges                              16,843          16,196
      Average length of stay (days)                 77.4            82.4
      Median length of stay (days)                  13.0            14.0
      ADC by major diagnosis
             Neurological                           33.2      %     34.2     %
             Cancer                                 16.9            17.9
             Cardio                                 11.2            11.6
             Respiratory                            6.9             6.6
            Other                                 31.8           29.7
                   Total                           100.0     %    100.0    %
      Admissions by major diagnosis
             Neurological                           19.2      %     19.6     %
             Cancer                                 30.8            32.1
             Cardio                                 11.6            11.8
             Respiratory                            9.6             8.7
             Other                                 28.8           27.8
                   Total                           100.0     %    100.0    %
      Direct patient care margins (e)
             Routine homecare                       51.9      %     50.4     %
             Inpatient                              10.9            14.1
             Continuous care                        17.7            19.9
      Homecare margin drivers (dollars per
      patient day)
             Labor costs                        $   57.18        $  57.76
             Drug costs                             7.57            8.33
             Home medical equipment                 6.85            6.82
             Medical supplies                       2.92            2.75
      Inpatient margin drivers (dollars per
      patient day)
             Labor costs                        $   320.67       $  314.34
      Continuous care margin drivers (dollars
      per patient day)
             Labor costs                        $   587.73       $  569.54
      Bad debt expense as a percent of              0.8       %     0.8      %
      revenues
      Accounts receivable --
      Days of revenue outstanding- excluding        39.0            36.6
      unapplied Medicare payments
      Days of revenue outstanding- including        29.6            30.8
      unapplied Medicare payments
                                                                             
                                                                             
      The "Footnotes to Financial Statements" are integral parts
      of this financial information.
                                                                             


  CHEMED CORPORATION AND SUBSIDIARY COMPANIES
  FOOTNOTES TO FINANCIAL STATEMENTS
  FOR THE THREE MONTHS ENDED MARCH 31, 2013 AND 2012
  (unaudited)
                                                            
                                                                       
                                                                       
        Included in the results of operations for the three months ended March
  (a)   31, 2013, are the following significant credits/(charges) which may not
        be indicative of ongoing operations (in thousands):
        
                                            
                               VITAS        Roto-Rooter   Corporate    Total
        Selling, general
        and
        administrative
        expenses
          Expenses
          related to OIG       $ (1,039 )   $  -          $ -          $ (1,039 )
          investigation
          Acquisition            (1     )      -            -            (1     )
          expenses
          Expenses of
          severance              -             (302  )      -            (302   )
          arrangements
          Expenses
          related to             -             (141  )      -            (141   )
          litigation
          settlements
          Stock option           -             -            (1,491 )     (1,491 )
          expense
          Long-term
          incentive              -             -            (612   )     (612   )
          compensation
          Expenses
          related to             -             -            (2     )     (2     )
          securities
          litigation
        Interest
        expense
          Additional
          interest
          expense
          resulting from
          the change in
          accounting
             for the
             conversion
             feature of          -             -            (2,091 )     (2,091 )
             the
             convertible
             notes
          Loss on
          extinguishment        -           -          (465   )    (465   )
          of debt
             Pretax
             impact on           (1,040 )      (443  )      (4,661 )     (6,144 )
             earnings
        Income tax
        benefit/(charge)        396         173        1,713      2,282  
        on the above
             After-tax
             impact on         $ (644   )   $  (270  )    $ (2,948 )   $ (3,862 )
             earnings
                                                                       
        Included in the results of operations for the three months ended March
  (b)   31, 2012, are the following significant credits/(charges) which may not
        be indicative of ongoing operations (in thousands):
        
                                            
                               VITAS        Roto-Rooter   Corporate    Total
        Selling, general
        and
        administrative
        expenses
          Expenses
          related to OIG       $ (71    )   $  -          $ -          $ (71    )
          investigation
          Acquisition            -             (15   )      -            (15    )
          expenses
          Expenses
          related to             -             (647  )      -            (647   )
          litigation
          settlements
          Stock option           -             -            (1,938 )     (1,938 )
          expense
        Interest
        expense
          Additional
          interest
          expense
          resulting from
          the change in
          accounting
             for the
             conversion
            feature of         -           -          (1,935 )    (1,935 )
             the
             convertible
             notes
             Pretax
             impact on           (71    )      (662  )      (3,873 )     (4,606 )
             earnings
        Income tax
        benefit/(charge)        27          260        1,424      1,711  
        on the above
             After-tax
             impact on         $ (44    )   $  (402  )    $ (2,449 )   $ (2,895 )
             earnings
                                                                       
        Under Generally Accepted Accounting Principles ("GAAP"), the Roto-Rooter
        segment expenses all advertising, including the cost of telephone
        directories, immediately upon the initial release of the advertising.
        Telephone directories are generally in circulation 12 months. If a
        directory is in circulation for a time period greater or less than 12
        months, the publisher adjusts the directory billing for the change in
  (c)   billing period. The timing of when a telephone directory is published can
        and does fluctuate significantly on a quarterly basis. This "direct
        expensing" results in significant fluctuations in quarterly advertising
        expense. In the first quarters of 2013 and 2012, GAAP advertising expense
        for Roto-Rooter totaled $5,704,000 and $5,624,000, respectively. If the
        expense of the telephone directories were spread over the periods they
        are in circulation, advertising expense for the first quarters of 2013
        and 2012 would total $6,173,000 and $6,330,000, respectively.
                                                                       
        VITAS has 10 large (greater than 450 ADC), 14 medium (greater than 200
        but less than 450 ADC) and 27 small (less than 200 ADC) hospice programs.
        Of VITAS' 36 unique Medicare provider numbers, 31 provider numbers have a
  (d)   Medicare cap cushion of 10% or greater during the first six months of the
        Medicare cap year; two provider numbers have a Medicare cap cushion
        between 5% and 10%; and three provider numbers have a cap cushion between
        0% and 5%.
                                                                       
  (e)   Amounts exclude indirect patient care and administrative costs, as well
        as Medicare Cap billing limitation.

Contact:

Chemed Corporation
David P. Williams, 513-762-6901
 
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