false--12-31Q220210000019584YesYes00000195842020-05-310000019584us-gaap:CommonStockMember2021-04-012021-06-300000019584us-gaap:CommonStockMember2021-01-012021-06-300000019584us-gaap:TreasuryStockMember2020-04-012020-06-300000019584us-gaap:CommonStockMember2020-04-012020-06-300000019584us-gaap:CommonStockMember2020-01-012020-06-300000019584us-gaap:TreasuryStockMember2021-04-012021-06-300000019584us-gaap:DeferredCompensationShareBasedPaymentsMember2021-04-012021-06-300000019584us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300000019584us-gaap:TreasuryStockMember2021-01-012021-06-300000019584us-gaap:DeferredCompensationShareBasedPaymentsMember2021-01-012021-06-300000019584us-gaap:AdditionalPaidInCapitalMember2021-01-012021-06-300000019584us-gaap:DeferredCompensationShareBasedPaymentsMember2020-04-012020-06-300000019584us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-300000019584us-gaap:TreasuryStockMember2020-01-012020-06-300000019584us-gaap:DeferredCompensationShareBasedPaymentsMember2020-01-012020-06-300000019584us-gaap:AdditionalPaidInCapitalMember2020-01-012020-06-300000019584us-gaap:TreasuryStockMember2021-06-300000019584us-gaap:RetainedEarningsMember2021-06-300000019584us-gaap:DeferredCompensationShareBasedPaymentsMember2021-06-300000019584us-gaap:CommonStockMember2021-06-300000019584us-gaap:AdditionalPaidInCapitalMember2021-06-300000019584us-gaap:TreasuryStockMember2021-03-310000019584us-gaap:RetainedEarningsMember2021-03-310000019584us-gaap:DeferredCompensationShareBasedPaymentsMember2021-03-310000019584us-gaap:CommonStockMember2021-03-310000019584us-gaap:AdditionalPaidInCapitalMember2021-03-3100000195842021-03-310000019584us-gaap:TreasuryStockMember2020-12-310000019584us-gaap:RetainedEarningsMember2020-12-310000019584us-gaap:DeferredCompensationShareBasedPaymentsMember2020-12-310000019584us-gaap:CommonStockMember2020-12-310000019584us-gaap:AdditionalPaidInCapitalMember2020-12-310000019584us-gaap:TreasuryStockMember2020-06-300000019584us-gaap:RetainedEarningsMember2020-06-300000019584us-gaap:DeferredCompensationShareBasedPaymentsMember2020-06-300000019584us-gaap:CommonStockMember2020-06-300000019584us-gaap:AdditionalPaidInCapitalMember2020-06-300000019584us-gaap:TreasuryStockMember2020-03-310000019584us-gaap:RetainedEarningsMember2020-03-310000019584us-gaap:DeferredCompensationShareBasedPaymentsMember2020-03-310000019584us-gaap:CommonStockMember2020-03-310000019584us-gaap:AdditionalPaidInCapitalMember2020-03-3100000195842020-03-310000019584us-gaap:TreasuryStockMember2019-12-310000019584us-gaap:RetainedEarningsMember2019-12-310000019584us-gaap:DeferredCompensationShareBasedPaymentsMember2019-12-310000019584us-gaap:CommonStockMember2019-12-310000019584us-gaap:AdditionalPaidInCapitalMember2019-12-310000019584che:CompensationIncentiveCommitteeMemberus-gaap:PerformanceSharesMember2021-02-192021-02-190000019584che:PerformanceBasedTotalShareholderReturnTargetsMember2021-01-012021-06-300000019584che:PerformanceBasedEarningsPerShareTargetsMember2021-01-012021-06-300000019584che:VitasMember2021-04-012021-06-300000019584che:RoutineHomeCareMemberche:SegmentVitasMemberche:MedicareMember2021-04-012021-06-300000019584che:RoutineHomeCareMemberche:SegmentVitasMemberche:MedicaidMember2021-04-012021-06-300000019584che:RoutineHomeCareMemberche:SegmentVitasMemberche:CommercialInsuranceMember2021-04-012021-06-300000019584che:InpatientCareMemberche:SegmentVitasMemberche:MedicareMember2021-04-012021-06-300000019584che:InpatientCareMemberche:SegmentVitasMemberche:MedicaidMember2021-04-012021-06-300000019584che:InpatientCareMemberche:SegmentVitasMemberche:CommercialInsuranceMember2021-04-012021-06-300000019584che:ContinuousCareMemberche:SegmentVitasMemberche:MedicareMember2021-04-012021-06-300000019584che:ContinuousCareMemberche:SegmentVitasMemberche:MedicaidMember2021-04-012021-06-300000019584che:ContinuousCareMemberche:SegmentVitasMemberche:CommercialInsuranceMember2021-04-012021-06-300000019584che:CareServicesTotalMemberche:SegmentVitasMemberche:MedicareMember2021-04-012021-06-300000019584che:CareServicesTotalMemberche:SegmentVitasMemberche:MedicaidMember2021-04-012021-06-300000019584che:CareServicesTotalMemberche:SegmentVitasMemberche:CommercialInsuranceMember2021-04-012021-06-300000019584che:WaterRestorationMemberche:SegmentRotoRooterMember2021-04-012021-06-300000019584che:ShortTermCoreServiceJobsMemberche:SegmentRotoRooterMember2021-04-012021-06-300000019584che:RoutineHomeCareMemberche:SegmentVitasMember2021-04-012021-06-300000019584che:InpatientCareMemberche:SegmentVitasMember2021-04-012021-06-300000019584che:FranchiseFeesMemberche:SegmentRotoRooterMember2021-04-012021-06-300000019584che:ContractorRevenueMemberche:SegmentRotoRooterMember2021-04-012021-06-300000019584che:ContinuousCareMemberche:SegmentVitasMember2021-04-012021-06-300000019584che:CareServicesTotalMemberche:SegmentVitasMember2021-04-012021-06-300000019584che:AllOtherRevenueSelfPayRespiteCareEct.Memberche:SegmentVitasMember2021-04-012021-06-300000019584che:AllOtherMemberche:SegmentRotoRooterMember2021-04-012021-06-300000019584che:RoutineHomeCareMemberche:SegmentVitasMemberche:MedicareMember2021-01-012021-06-300000019584che:RoutineHomeCareMemberche:SegmentVitasMemberche:MedicaidMember2021-01-012021-06-300000019584che:RoutineHomeCareMemberche:SegmentVitasMemberche:CommercialInsuranceMember2021-01-012021-06-300000019584che:InpatientCareMemberche:SegmentVitasMemberche:MedicareMember2021-01-012021-06-300000019584che:InpatientCareMemberche:SegmentVitasMemberche:MedicaidMember2021-01-012021-06-300000019584che:InpatientCareMemberche:SegmentVitasMemberche:CommercialInsuranceMember2021-01-012021-06-300000019584che:ContinuousCareMemberche:SegmentVitasMemberche:MedicareMember2021-01-012021-06-300000019584che:ContinuousCareMemberche:SegmentVitasMemberche:MedicaidMember2021-01-012021-06-300000019584che:ContinuousCareMemberche:SegmentVitasMemberche:CommercialInsuranceMember2021-01-012021-06-300000019584che:CareServicesTotalMemberche:SegmentVitasMemberche:MedicareMember2021-01-012021-06-300000019584che:CareServicesTotalMemberche:SegmentVitasMemberche:MedicaidMember2021-01-012021-06-300000019584che:CareServicesTotalMemberche:SegmentVitasMemberche:CommercialInsuranceMember2021-01-012021-06-300000019584che:WaterRestorationMemberche:SegmentRotoRooterMember2021-01-012021-06-300000019584che:ShortTermCoreServiceJobsMemberche:SegmentRotoRooterMember2021-01-012021-06-300000019584che:RoutineHomeCareMemberche:SegmentVitasMember2021-01-012021-06-300000019584che:InpatientCareMemberche:SegmentVitasMember2021-01-012021-06-300000019584che:FranchiseFeesMemberche:SegmentRotoRooterMember2021-01-012021-06-300000019584che:ContractorRevenueMemberche:SegmentRotoRooterMember2021-01-012021-06-300000019584che:ContinuousCareMemberche:SegmentVitasMember2021-01-012021-06-300000019584che:CareServicesTotalMemberche:SegmentVitasMember2021-01-012021-06-300000019584che:AllOtherRevenueSelfPayRespiteCareEct.Memberche:SegmentVitasMember2021-01-012021-06-300000019584che:AllOtherMemberche:SegmentRotoRooterMember2021-01-012021-06-300000019584che:RoutineHomeCareMemberche:SegmentVitasMemberche:MedicareMember2020-04-012020-06-300000019584che:RoutineHomeCareMemberche:SegmentVitasMemberche:MedicaidMember2020-04-012020-06-300000019584che:RoutineHomeCareMemberche:SegmentVitasMemberche:CommercialInsuranceMember2020-04-012020-06-300000019584che:InpatientCareMemberche:SegmentVitasMemberche:MedicareMember2020-04-012020-06-300000019584che:InpatientCareMemberche:SegmentVitasMemberche:MedicaidMember2020-04-012020-06-300000019584che:InpatientCareMemberche:SegmentVitasMemberche:CommercialInsuranceMember2020-04-012020-06-300000019584che:ContinuousCareMemberche:SegmentVitasMemberche:MedicareMember2020-04-012020-06-300000019584che:ContinuousCareMemberche:SegmentVitasMemberche:MedicaidMember2020-04-012020-06-300000019584che:ContinuousCareMemberche:SegmentVitasMemberche:CommercialInsuranceMember2020-04-012020-06-300000019584che:CareServicesTotalMemberche:SegmentVitasMemberche:MedicareMember2020-04-012020-06-300000019584che:CareServicesTotalMemberche:SegmentVitasMemberche:MedicaidMember2020-04-012020-06-300000019584che:CareServicesTotalMemberche:SegmentVitasMemberche:CommercialInsuranceMember2020-04-012020-06-300000019584che:WaterRestorationMemberche:SegmentRotoRooterMember2020-04-012020-06-300000019584che:ShortTermCoreServiceJobsMemberche:SegmentRotoRooterMember2020-04-012020-06-300000019584che:RoutineHomeCareMemberche:SegmentVitasMember2020-04-012020-06-300000019584che:InpatientCareMemberche:SegmentVitasMember2020-04-012020-06-300000019584che:FranchiseFeesMemberche:SegmentRotoRooterMember2020-04-012020-06-300000019584che:ContractorRevenueMemberche:SegmentRotoRooterMember2020-04-012020-06-300000019584che:ContinuousCareMemberche:SegmentVitasMember2020-04-012020-06-300000019584che:CareServicesTotalMemberche:SegmentVitasMember2020-04-012020-06-300000019584che:AllOtherRevenueSelfPayRespiteCareEct.Memberche:SegmentVitasMember2020-04-012020-06-300000019584che:AllOtherMemberche:SegmentRotoRooterMember2020-04-012020-06-300000019584che:RoutineHomeCareMemberche:SegmentVitasMemberche:MedicareMember2020-01-012020-06-300000019584che:RoutineHomeCareMemberche:SegmentVitasMemberche:MedicaidMember2020-01-012020-06-300000019584che:RoutineHomeCareMemberche:SegmentVitasMemberche:CommercialInsuranceMember2020-01-012020-06-300000019584che:InpatientCareMemberche:SegmentVitasMemberche:MedicareMember2020-01-012020-06-300000019584che:InpatientCareMemberche:SegmentVitasMemberche:MedicaidMember2020-01-012020-06-300000019584che:InpatientCareMemberche:SegmentVitasMemberche:CommercialInsuranceMember2020-01-012020-06-300000019584che:ContinuousCareMemberche:SegmentVitasMemberche:MedicareMember2020-01-012020-06-300000019584che:ContinuousCareMemberche:SegmentVitasMemberche:MedicaidMember2020-01-012020-06-300000019584che:ContinuousCareMemberche:SegmentVitasMemberche:CommercialInsuranceMember2020-01-012020-06-300000019584che:CareServicesTotalMemberche:SegmentVitasMemberche:MedicareMember2020-01-012020-06-300000019584che:CareServicesTotalMemberche:SegmentVitasMemberche:MedicaidMember2020-01-012020-06-300000019584che:CareServicesTotalMemberche:SegmentVitasMemberche:CommercialInsuranceMember2020-01-012020-06-300000019584che:WaterRestorationMemberche:SegmentRotoRooterMember2020-01-012020-06-300000019584che:ShortTermCoreServiceJobsMemberche:SegmentRotoRooterMember2020-01-012020-06-300000019584che:RoutineHomeCareMemberche:SegmentVitasMember2020-01-012020-06-300000019584che:InpatientCareMemberche:SegmentVitasMember2020-01-012020-06-300000019584che:FranchiseFeesMemberche:SegmentRotoRooterMember2020-01-012020-06-300000019584che:ContractorRevenueMemberche:SegmentRotoRooterMember2020-01-012020-06-300000019584che:ContinuousCareMemberche:SegmentVitasMember2020-01-012020-06-300000019584che:CareServicesTotalMemberche:SegmentVitasMember2020-01-012020-06-300000019584che:AllOtherRevenueSelfPayRespiteCareEct.Memberche:SegmentVitasMember2020-01-012020-06-300000019584che:AllOtherMemberche:SegmentRotoRooterMember2020-01-012020-06-300000019584che:RotoRooterBloomingtonMember2020-06-012020-06-010000019584us-gaap:OperatingSegmentsMemberche:SegmentVitasMember2021-04-012021-06-300000019584us-gaap:OperatingSegmentsMemberche:SegmentRotoRooterMember2021-04-012021-06-300000019584us-gaap:OperatingSegmentsMember2021-04-012021-06-300000019584us-gaap:CorporateMember2021-04-012021-06-300000019584us-gaap:OperatingSegmentsMemberche:SegmentVitasMember2021-01-012021-06-300000019584us-gaap:OperatingSegmentsMemberche:SegmentRotoRooterMember2021-01-012021-06-300000019584us-gaap:OperatingSegmentsMember2021-01-012021-06-300000019584us-gaap:CorporateMember2021-01-012021-06-300000019584us-gaap:OperatingSegmentsMemberche:SegmentVitasMember2020-04-012020-06-300000019584us-gaap:OperatingSegmentsMemberche:SegmentRotoRooterMember2020-04-012020-06-300000019584us-gaap:OperatingSegmentsMember2020-04-012020-06-300000019584us-gaap:CorporateMember2020-04-012020-06-300000019584us-gaap:OperatingSegmentsMemberche:SegmentVitasMember2020-01-012020-06-300000019584us-gaap:OperatingSegmentsMemberche:SegmentRotoRooterMember2020-01-012020-06-300000019584us-gaap:OperatingSegmentsMember2020-01-012020-06-300000019584us-gaap:CorporateMember2020-01-012020-06-300000019584che:LaxV.RotoRooterMember2020-08-012020-08-310000019584che:SeperChhinaV.VitasMember2019-01-012019-03-310000019584che:TwoThousandEighteenCreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2018-06-200000019584che:TwoThousandEighteenCreditAgreementMemberche:ExpansionFeatureMember2018-06-200000019584che:TwoThousandEighteenCreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2021-01-012021-06-300000019584che:TwoThousandEighteenCreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2021-06-300000019584srt:MinimumMember2021-06-300000019584srt:MaximumMember2021-06-300000019584us-gaap:FairValueInputsLevel1Member2021-06-300000019584us-gaap:CarryingReportedAmountFairValueDisclosureMember2021-06-300000019584us-gaap:FairValueInputsLevel1Member2020-12-310000019584us-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-310000019584che:RotoRooterMember2021-01-012021-06-300000019584che:SegmentVitasMember2021-06-300000019584che:RotoRooterMember2021-06-300000019584che:SegmentVitasMember2020-12-310000019584che:RotoRooterMember2020-12-310000019584che:PerformanceBasedTotalShareholderReturnTargetsMember2021-02-190000019584che:PerformanceBasedEarningsPerShareTargetsMember2021-02-190000019584us-gaap:RetainedEarningsMember2021-04-012021-06-300000019584us-gaap:RetainedEarningsMember2021-01-012021-06-300000019584us-gaap:RetainedEarningsMember2020-04-012020-06-300000019584us-gaap:RetainedEarningsMember2020-01-012020-06-300000019584che:TwoThousandEighteenCreditAgreementMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-01-012021-06-300000019584che:MedicareMemberus-gaap:AccountsReceivableMemberus-gaap:CreditConcentrationRiskMemberche:SegmentVitasMember2021-01-012021-06-300000019584che:MedicareAndMedicaidMemberus-gaap:AccountsReceivableMemberus-gaap:CreditConcentrationRiskMemberche:SegmentVitasMember2021-01-012021-06-300000019584che:MedicaidMemberus-gaap:AccountsReceivableMemberus-gaap:CreditConcentrationRiskMemberche:SegmentVitasMember2021-01-012021-06-300000019584che:MedicareMemberus-gaap:AccountsReceivableMemberus-gaap:CreditConcentrationRiskMemberche:SegmentVitasMember2020-01-012020-12-310000019584che:MedicaidMemberus-gaap:AccountsReceivableMemberus-gaap:CreditConcentrationRiskMemberche:SegmentVitasMember2020-01-012020-12-310000019584che:SegmentVitasMember2021-04-012021-06-300000019584che:SegmentVitasMember2020-04-012020-06-300000019584che:SegmentVitasMember2020-01-012020-06-3000000195842020-06-3000000195842019-12-310000019584us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2021-06-300000019584che:VitasMemberus-gaap:SoftwareAndSoftwareDevelopmentCostsMember2021-06-300000019584che:VitasMemberus-gaap:SoftwareAndSoftwareDevelopmentCostsMember2021-04-012021-06-300000019584che:RotoRooterMemberus-gaap:SoftwareAndSoftwareDevelopmentCostsMember2021-04-012021-06-300000019584che:VitasMemberus-gaap:SoftwareAndSoftwareDevelopmentCostsMember2021-01-012021-06-300000019584che:RotoRooterMemberus-gaap:SoftwareAndSoftwareDevelopmentCostsMember2021-01-012021-06-300000019584che:VitasMemberus-gaap:SoftwareAndSoftwareDevelopmentCostsMember2020-04-012020-06-300000019584che:VitasMemberus-gaap:SoftwareAndSoftwareDevelopmentCostsMember2020-01-012020-06-300000019584che:RotoRooterMember2019-01-012019-12-310000019584che:RotoRooterBloomingtonMember2021-01-012021-06-300000019584che:RotoRooterMemberche:AnnualizedThrough2026Memberus-gaap:FranchiseRightsMember2021-01-012021-06-300000019584che:RoomAndBoardMemberche:SegmentVitasMember2021-04-012021-06-300000019584che:RoomAndBoardMemberche:SegmentVitasMember2021-01-012021-06-300000019584che:RoomAndBoardMemberche:SegmentVitasMember2020-04-012020-06-300000019584che:RoomAndBoardMemberche:SegmentVitasMember2020-01-012020-06-300000019584che:VitasMember2020-05-012021-06-300000019584che:SegmentVitasMember2013-01-012013-12-310000019584che:VitasMember2021-01-012021-06-300000019584che:SegmentVitasMember2021-01-012021-06-3000000195842021-04-012021-06-3000000195842020-04-012020-06-300000019584srt:MaximumMemberche:SegmentVitasMember2021-01-012021-06-300000019584che:TwoProgramProjectedMeasurmentPeriodLiabilityMemberche:SegmentVitasMember2021-04-012021-06-300000019584che:MedicareCapServiceMemberche:SegmentVitasMember2021-04-012021-06-300000019584che:TwoProgramProjectedMeasurmentPeriodLiabilityMemberche:SegmentVitasMember2021-01-012021-06-300000019584che:MedicareCapServiceMemberche:SegmentVitasMember2021-01-012021-06-300000019584che:MedicareCapServiceMemberche:SegmentVitasMember2020-04-012020-06-300000019584che:FiveProgramsProjectedMeasurementPeriodLiabilityMemberche:SegmentVitasMember2020-04-012020-06-300000019584che:MedicareCapServiceMemberche:SegmentVitasMember2020-01-012020-06-300000019584che:FiveProgramsProjectedMeasurementPeriodLiabilityMemberche:SegmentVitasMember2020-01-012020-06-300000019584che:SegmentRotoRooterMember2021-04-012021-06-300000019584che:SegmentRotoRooterMember2020-04-012020-06-300000019584che:SegmentRotoRooterMember2020-01-012020-06-300000019584che:ImplicitPriceConcessionsMemberche:SegmentVitasMember2021-04-012021-06-300000019584che:ImplicitPriceConcessionsMemberche:SegmentVitasMember2021-01-012021-06-300000019584che:ImplicitPriceConcessionsMemberche:SegmentVitasMember2020-04-012020-06-300000019584che:ImplicitPriceConcessionsMemberche:SegmentVitasMember2020-01-012020-06-300000019584che:RotoRooterMemberche:AnnualizedMemberus-gaap:FranchiseRightsMember2021-01-012021-06-300000019584che:RotoRooterMemberus-gaap:FranchiseRightsMember2021-01-012021-06-300000019584srt:MinimumMember2021-01-012021-06-300000019584srt:MaximumMember2021-01-012021-06-300000019584srt:MinimumMemberche:SegmentRotoRooterMember2021-01-012021-06-300000019584srt:MaximumMemberche:SegmentRotoRooterMember2021-01-012021-06-300000019584che:CaresActMember2020-03-272020-03-2700000195842020-01-012020-06-300000019584che:SegmentRotoRooterMember2021-01-012021-06-3000000195842021-06-3000000195842020-12-310000019584che:VitasMemberche:CaresAct2019MedicareFeeForServiceMember2020-04-100000019584che:CaresActMember2020-03-270000019584che:CaresAct2019MedicareFeeForServiceMember2020-03-2700000195842021-01-012021-06-300000019584che:ThreeProgramProjectedMeasurementPeriodLiabilityMember2013-01-012020-12-31iso4217:USDxbrli:sharesxbrli:sharesche:itemxbrli:pureiso4217:USD

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x    Quarterly Report Under Section 13 or 15 (d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended June 30, 2021

o    Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File Number: 1-8351

CHEMED CORPORATION

(Exact name of registrant as specified in its charter)

Delaware

31-0791746

(State or other jurisdiction of incorporation or organization)

(IRS Employer Identification No.)

255 E. Fifth Street, Suite 2600, Cincinnati, Ohio

45202

(Address of principal executive offices)

(Zip code)

(513) 762-6690

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter periods that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes  

x

No  

o  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes  

x

No  

o  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer or a non-accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

Large Accelerated Filer

x

Accelerated Filer

o

Non-accelerated Filer

o

Smaller Reporting Company

o

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended the extended transition period for complying with a new or revised financial accounting standards provided pursuant to Section 13 (a) of the Exchange Act o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes  

 o 

No  

x  

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol

Name of Each Exchange

on which Registered

Amount

Date

Capital Stock $1 Par Value

CHE

New York Stock Exchange

15,731,457 Shares

June 30, 2021

 


-1-


CHEMED CORPORATION AND

SUBSIDIARY COMPANIES

Index

Page No.

PART I. FINANCIAL INFORMATION:

Item 1. Financial Statements

Unaudited Consolidated Balance Sheets -

June 30, 2021 and December 31, 2020

3

Unaudited Consolidated Statements of Income -

Three and six months ended June 30, 2021 and 2020

4

Unaudited Consolidated Statements of Cash Flows -

Six months ended June 30, 2021 and 2020

5

Unaudited Consolidated Statements of Changes in Stockholders’ Equity-

Three and six months ended June 30, 2021 and 2020

6

Notes to Unaudited Consolidated Financial Statements

8

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

22

Item 3. Quantitative and Qualitative Disclosures about Market Risk

39

Item 4. Controls and Procedures

39

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

39

Item 1A. Risk Factors

39

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

40

Item 3. Defaults Upon Senior Securities

40

Item 4. Mine Safety Disclosures

40

Item 5. Other Information

40

Item 6. Exhibits

40

EX – 31.1

EX – 31.2

EX – 31.3

EX – 32.1

EX – 32.2

EX – 32.3

EX – 101

EX – 104


-2-


 

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

UNAUDITED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

June 30, 2021

December 31, 2020

ASSETS

Current assets

Cash and cash equivalents

$

92,120

$

162,675 

Accounts receivable

123,329

126,853 

Inventories

7,411

7,095 

Prepaid income taxes

23,386

6,603 

Prepaid expenses

22,840

26,177 

Total current assets

269,086

329,403 

Investments of deferred compensation plans

98,256

88,811 

Properties and equipment, at cost, less accumulated depreciation of $307,347 (2020 - $293,380)

192,653

187,820 

Lease right of use asset

123,207

123,448 

Identifiable intangible assets less accumulated amortization of $52,628 (2020 - $47,607)

113,137

118,085 

Goodwill

578,650

578,585 

Other assets

8,807

8,759 

Total Assets

$

1,383,796

$

1,434,911 

LIABILITIES

Current liabilities

Accounts payable

$

55,975

$

54,234 

Income taxes

5

9,464 

Accrued insurance

51,963

54,703 

Accrued compensation

83,608

91,282 

Accrued legal

1,391

10,632 

Short-term lease liability

36,440

36,200 

Other current liabilities

38,020

42,593 

Total current liabilities

267,402

299,108 

Deferred income taxes

21,713

20,664 

Deferred compensation liabilities

97,374

88,456 

Long-term lease liability

99,093

99,210 

Other liabilities

27,440

26,273 

Total Liabilities

513,022

533,711 

Commitments and contingencies (Note 10)

 

 

STOCKHOLDERS' EQUITY

Capital stock - authorized 80,000,000 shares $1 par; issued 36,385,091 shares (2020 - 36,258,638 shares)

36,385

36,259 

Paid-in capital

999,697

961,404 

Retained earnings

1,834,835

1,723,777 

Treasury stock - 20,720,835 shares (2020 - 20,351,562 shares)

(2,002,326)

(1,822,579)

Deferred compensation payable in Company stock

2,183

2,339 

Total Stockholders' Equity

870,774

901,200 

Total Liabilities and Stockholders' Equity

$

1,383,796

$

1,434,911 

See accompanying Notes to Unaudited Consolidated Financial Statements.

 


-3-


 

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)

Three Months Ended June 30,

Six Months Ended June 30,

2021

2020

2021

2020

Service revenues and sales

$

532,256 

$

502,199 

$

1,059,616 

$

1,017,997 

Cost of services provided and goods sold (excluding depreciation)

350,493 

352,163 

690,966 

703,908 

Selling, general and administrative expenses

93,838 

84,513 

185,437 

155,096 

Depreciation

13,612 

11,659 

25,327 

23,047 

Amortization

2,510 

2,488 

5,020 

4,965 

Other operating expenses/(income)

104 

(41,384)

726 

(41,142)

Total costs and expenses

460,557 

409,439 

907,476 

845,874 

Income from operations

71,699 

92,760 

152,140 

172,123 

Interest expense

(379)

(651)

(760)

(1,626)

Other income/(expense) - net

3,785 

7,514 

7,387 

(1,952)

Income before income taxes

75,105 

99,623 

158,767 

168,545 

Income taxes

(18,583)

(17,522)

(36,845)

(30,553)

Net income

$

56,522 

$

82,101 

$

121,922 

$

137,992 

Earnings Per Share:

Net income

$

3.57 

$

5.16 

$

7.66 

$

8.65 

Average number of shares outstanding

15,829 

15,914 

15,919 

15,953 

Diluted Earnings Per Share:

Net income

$

3.51 

$

5.01 

$

7.52 

$

8.39 

Average number of shares outstanding

16,101 

16,373 

16,205 

16,445 

Cash Dividends Per Share

$

0.34 

$

0.32 

$

0.68 

$

0.64 

See accompanying Notes to Unaudited Consolidated Financial Statements.

 


-4-


 

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

Six Months Ended June 30,

2021

2020

Cash Flows from Operating Activities

Net income

$

121,922

$

137,992 

Adjustments to reconcile net income to net cash provided

by operating activities:

Depreciation and amortization

30,347 

28,012 

Stock option expense

12,345 

10,113 

Litigation settlements paid

(9,440)

-

Noncash long-term incentive compensation

3,402 

3,527 

Noncash directors' compensation

1,173 

1,171 

Provision for deferred income taxes

1,051

2,717 

Amortization of debt issuance costs

153 

153 

Provision for bad debts

40 

871 

Unutilized CARES Act grant

-

39,236 

Deferred payroll taxes

-

10,716 

Changes in operating assets and liabilities:

Decrease in accounts receivable

4,722 

6,696 

Increase in inventories

(316)

(5)

Decrease/(increase) in prepaid expenses

3,337 

(33)

(Decrease)/increase in accounts payable and other current liabilities

(10,815)

13,303 

Change in current income taxes

(26,242)

23,725 

Net change in lease assets and liabilities

(436)

1,287 

Increase in other assets

(10,088)

(2,988)

Increase in other liabilities

10,088 

1,383 

Other sources/(uses)

796 

(54)

Net cash provided by operating activities

132,039 

277,822 

Cash Flows from Investing Activities

Capital expenditures

(33,604)

(32,251)

Business combinations

-

(3,600)

Other sources

302 

473 

Net cash used by investing activities

(33,302)

(35,378)

Cash Flows from Financing Activities

Purchases of treasury stock

(166,649)

(122,148)

Proceeds from exercise of stock options

16,186 

19,440 

Dividends paid

(10,864)

(10,238)

Capital stock surrendered to pay taxes on stock-based compensation

(8,598)

(14,845)

Payments on revolving line of credit

-

(264,900)

Proceeds from revolving line of credit

-

174,900 

Change in cash overdrafts payable

-

(9,849)

Other sources/(uses)

633 

(586)

Net cash used by financing activities

(169,292)

(228,226)

(Decrease)/Increase in Cash and Cash Equivalents

(70,555)

14,218 

Cash and cash equivalents at beginning of year

162,675 

6,158 

Cash and cash equivalents at end of period

$

92,120 

$

20,376 

See accompanying Notes to Unaudited Consolidated Financial Statements.

 


-5-


 

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY

(in thousands, except per share data)

For the three months ended June 30, 2021 and 2020:

Deferred

Compensation

Treasury

Payable in

Capital

Paid-in

Retained

Stock-

Company

Stock

Capital

Earnings

at Cost

Stock

Total

Balance at March 31, 2021

36,345 

982,739 

1,783,740 

(1,876,315)

2,375 

928,884 

Net income

-

-

56,522