CHE - Earnings call transcript Q2 2024

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Operator

Thank you for standing by, and welcome to the Chemed Corporation Second Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, today's program is being recorded.

And now I'd like to introduce your host for today's program, Holley Schmidt. Please go ahead, ma'am.

Holley Schmidt

Good morning.

morning of the XXXX. XXXX this the results call quarter second ended conference will financial review for Our June XX,

we Securities remind provisions me conference call. XXXX begin, the this Before harbor safe apply you to of Reform Litigation that Private Act of the let

as During of materially these statements. the forward-looking Actual July SEC. the may differ this result other company remarks various by make various a constitute the management's prospects filings expectations, variety and XX the statements including that those a course from forward-looking projected identified concerning with in those of predictions, company's call, of will plans of and results release news factors, in

that such the or undertakes to cautioned revise in obligation statements company are any reflect that management's and You no update future. statements forward-looking the current only view

In during results depreciation adjusted operating addition, today's interest, discuss amortization call, EBITDA. or may management taxes, non-GAAP before and EBITDA and earnings performance also including

the Chairman Executive of is I Chemed; Mike Officer Corporation; and and like turn of the Executive to now Chemed's the will Kevin A Chief Witzeman, company's Financial President now chemed.com. would reconciliation speakers Nick on to Chief of I dated in Officer website Chief available results VITAS McNamara. these Chemed Healthcare Subsidiary. Westfall, and Officer of at provided Corporation over call introduce XX, company's is release non-GAAP today, which McNamara, Kevin for July our press

Kevin McNamara

additional Good will will Nick quarter, open Holley. and details. morning. Chemed then Second I the with for the begin follow call then you, Thank for Call. to I up questions. up will XXXX highlights Corporation's Quarter Welcome with Conference Mike

for at operating the with strong with pleased Health acquisition. be to Covenant f a excellent VITAS, metrics our coupled continue We start

from quarter second totaled which XX% of of an to improvement same the period XXXX. XXXX, XX,XXX, the In equates admissions

$XX million census positively XX.X% Covenant These acquisition quarter. compared the average metrics impacted on was the historically closed were good expanded of X,XXX, increase April Health, when which ADC an prior by Our daily XXXX. or with year of XX,

on metrics. improvements second positive be of impact hiring insight will continued these would begin the VITAS represents was awarded vibrant services impact staff. operating service the in also acquisition a metric of to further clinical VITAS' without community of pleased County, opportunity retaining We're on in This quarter the Nick strength provide in achievable in provide Need that for in Certificate and XXXX, and related not financial These Pasco to VITAS a and Florida. an Florida. growing hospice

call quarterly of the generated of XXXX, call second compared Now Overall, down a our was in the X.X% remain historic when dispatch prior to with year year of compared let's Roto-Rooter location at to $XXX.X the million quarter. rates turn volume levels. our quarter revenue decrease of at customer center prior when quarter. compared Close Roto-Rooter. with X% technician the reaches when the strong consistently the and time

and home significantly be Roto-Rooter entire revenue to Internet lower competition related at to be continues and and as home continues depressed, the improvements. commercial is X.X% across position consumer With and leads particularly it fierce. Residential services industry, which spending, declined Residential by impacted demand consumer X.X%. to marketing revenue job sentiment relates demand declined for

both sequentially Roto-Rooter and commercial for the However, significant sector provides opportunity XXXX. of improvement then through XXXX

the end The field the led high be the at deprioritized. we commercial habits mentioned in required business the commercial locations. to some demand successful business we in reestablished extraordinarily to of experienced the first were the not for a make during pandemic quarter, the As in pandemic,

significant Roto-Rooter's Mike will discuss which commercial positive on As company believe further, has sector. a will the I several initiatives implemented have impact

has translated of strong excited to retention accelerate growth. licensed consistently has professionals. strong management continued and the demonstrated are we To summarize, hiring into the This at admission VITAS and results continued ability about health census VITAS. care

We is its centers response remainder Roto-Rooter despite are believe excellent brand well presence. of the time, awareness, and XXXX in advantages the and prospects XXxX positioned customer beyond. VITAS core Roto-Rooter competitive of We bullish faces. very that aggressive still maintains it on terms of difficult for the Internet operating conditions call

With would I teleconference over to like turn this that, to Mike.

Michael Witzeman

Kevin. Thanks,

results, important results. VITAS's impact discussing acquisition Before methodology that it Covenant we VITAS determining the discuss in overall Health's of the is used on

Health. of Those may X you had we acquired from not X As separate as we that results. Health there operations are in estimate the once locations the impact we the are Covenant locations already significant remember, require operations integrated, Florida Covenant

specific VITAS It are sources and these the referral VITAS not referred both area Covenant. to in sources in Covenant-specific likely For historically that instance, referral referral sources locations. versus there very is have

have Health acquisition. We historical these above trends is activity. in to legacy activity what trends Covenant attributed locations determine All operating been historical used VITAS operating to have these the

the have the above, specifically we that as impact of the the acquired. course, on overall territories included operating the relates Covenant discusses Of following VITAS determined metrics. to impact it had on operating range Based new

and quarter approximately the acquisition Covenant to revenue Covenant contributed is revenue Adjusted EBITDA million. attributed $X.X of $X.X million. million to the $X.X million Health The Health translated net quarter $X.X to in This second XXXX. $X.X of $X.X to million between in income million of

acquired whole. X and activity. margins add for a overall the results we As significant of as not X we the in This to for additional programs, higher did in already acquisition absorb infrastructure had these to operations need the programs

of shift increase revenue Medicare of compared impacted and quarter basis in million the mix of of of in a and approximately increase XXXX, the the points acuity VITAS increase reimbursement average to period. to increase quarter second geographically days revenue when rate negatively compared is year The prior when which XX.X% comprised revenue XXX care in revenue growth, X.X%. care, mix. weighted XX.X% the a $XXX.X an This prior-year of net was is primarily level

which quarter and revenue $X,XXX.XX, points basis points. prior high in above patient averaged The basis second combination of home Reimbursement revenue $XXX.XX, by Cap is routine for changes $XXX.XX, day year contra respectively. XXX Average Medicare per the and care and the growth acuity approximately was XXXX period. other revenue XX care increased of

acuity During days total the of days a of to XX year compared the high were basis X.X% decline quarter. care of of prior points care, when quarter,

Adjusted an Adjusted XX.X%, the XXX points is in million The attributable prior increase of XXX EBITDA, Medicare year-over-year the in to $XX which was margin. to in the contributed excluding XXXX margin the points quarter, the excluding above XX%. expense bonus Cap, XXXX basis the Cap, improvement in program EBITDA year period. totaled quarter, Medicare retention basis

the of Roto-Rooter. decrease the in commercial revenue year. Roto-Rooter year residential from let's quarter million, X.X% totaled Roto-Rooter branch in prior totaled period. $XX.X X.X% of to from Now million, the $XXX quarter revenue branch prior a turn decrease the a

our this segment lag business. expectations As Kevin this mentioned, of continues for the to

behave The general, of second the Roto-Rooter of owners commercial company-wide customers. and consumer small to experiencing and continued base business demand our behaviors push reemphasize therefore, are demand quarter. is its this similarly residential that necessary the and commercial same residential increased issues overall commercial in the retain impacting customers. develop are business has seen customer In cohort we competition to some have revenue very with to

Roto-Rooter during their was sales required commercial management quarter general or determined key to metrics. demographic of be expanded efficiency staff. the directly contact and have to Commercial sales the customer sales certain will added to contact improve capabilities have manager added. staff management customer has the relationship Each customer every been implemented as enhanced continue branch by

performed implemented. has has a A been commercial in Additionally, deep of management in large targeted have analysis revenue. a branches noted Roto-Rooter of dive to been branches, improvement specific majority on have that handful contributed the programs decline these

noted recognize these timely quarter, general the is issues since As on a positions in programs basis remediation in new part many of we to of the the the general to managers first are ongoing program managers their the Training the field. pandemic. of

will retraining to believes the The that Roto-Rooter XX%. X.X% second and effect. multiple decrease to management managers prior full at compared $XX.X take business of the margin was Adjusted totaled the the year quarter EBITDA the EBITDA require quarters in of quarter Roto-Rooter million, adjusted a of in reemphasizing XXXX process quarter. commercial

margin adjusted from first Internet quarter XXX lower represents sequential a second point of quarter basis mainly EBITDA on marketing The 'XX based the improvement costs.

Medicare XXXX XX.X%. to estimated prior to to Average adjusted estimated to XXXX EBITDA compared increase XX.X% XXXX. is Cap increase XX.X% Full XX.X% to to margin about VITAS to when is Now prior guidance. is let's census our estimated daily to talk year XX.X% revised revenue Medicare be Cap XX.X%. to

We are billing calendar currently Medicare limitations Cap XXXX. estimating $X.X in million in

year $X.X impacted The $XX is the adjusted EBITDA points. of EBITDA This program million net Covenant Health retention $XX limitation cost million no expected and basis is contribute full full million. year approximately XXX by million income revenue. The acquisition VITAS' million adjusted attributable to $X $X.X Medicare translates There into of related Health. to to Health million XXXX estimated estimated billing Covenant VITAS to to Covenant $X of to Cap adjusted negatively to

guidance Roto-Rooter forecasted related stock EBITDA benefits a per million be share have Chemed's Based tax exercises, stock This XX%. costs items, $XX.XX. per adjusted shares. diluted to compared earnings the decline is full share Roto-Rooter's adjusted of $XX.XX X% excluding count to for a the earnings XXXX range rate previously X% noncash expenses year assumes XXXX revenue adjusted corporate in XX.X% XXXX tax in margin to litigation $XX.XX. to discrete to XXXX. an on of share. was to XX.XX XXXX to earnings per is expected reported and to diluted on effective XX.X% other option to was be options, from is XXXX estimated Chemed's for issued guidance $XX.XX above diluted of $XX.XX share and

I this call Nick. will over now turn to

Nicholas Westfall

sustainable I'm workforce capacity quarter continued our through XXXX. the patient very of pleased second the Mike. with of Thanks, and expansion

personnel by the the Health we quarter. part licensed As who bedside expanded mentioned, XXX the over Covenant acquisition, our headcount Kevin transitioned as professionals excluding of during

our eighth expanding of of disciplines quarter marked program. clinical of retention consecutive The part the second in identified quarter capacity XXXX as workforce our

quarterly daily XX,XXX. the second second X were is an when of growth the of the generated our In XXXX, second was XX.X%. compared average increase XXXX. VITAS of admissions XX,XXX patients, the VITAS increase quarters. has quarter over quarter This XX% ADC total of census In XXXX, last quarter sequential to an

XXX admission patients the at the As of Health of result of time onetime previously announced, the are Covenant acquisition. approximately those admissions the of

the top in of types. preadmit to In the admissions X location acquisition, admissions, quarter, the increased excluding related onetime each the

period. admissions XX.X%, admissions home-based increased Our the prior expanded year home compared expanded and X.X%, XX.X% when hospital to assisted X.X% facility increased and directed nursing admissions our patient admissions

quarter Our quarter average and length of quarter second of XX.X to XXX.X XXX.X 'XX. first was in in 'XX the the of days compares in days stays the days. This

stay and second quarter first the in the XX in in of of median 'XX. 'XX XX days quarter the Our of days days length was to compares and XX quarter

operations of integration BTOP has transaction To The the could integrating teams focuse Covenant commitment, unwavering shows Our work Covenant. date, every we have mission remain than towards expected. the member at been hard not dedication gone each in fulfilling better our the without accomplished serve. team community and

continue for progress. hospice opportunities to in mentioned status to in this tax items quarter, X of care communities focusing I serve mission transaction communities. impede organizations collaborate XX-plus-year call without our ensure as needs and and we believe the status long-standing the families possible patients tax the this mission-focused in evolving of these allowing of its As when the we serve I should illustrates on types palliative irrespective last industry country on like what's carries collectively

in very Pasco about to As service providing we mentioned, are Kevin the excited County, Florida. opportunity begin

quarters forecast of not net newly accomplished, has as provides X growth impact result what our a team in this care for recap health received To growth licensed of While workers the have in growth us we of we ADC. now the opportunity we've believe significant in CON, future. significant X quarters sequential a generated in sequential XXXX and

to we With the partnering been taken through that possible in other and receive to We've way have ability clinical to a building communities program has methodically ensure providers having interest also our over a sustainable our capacity completed and the predictable past demonstrated and care. approach us ago, acquisitions targeted continue year base best retention patient with levels. demonstrated pre-pandemic

of We about potential VITAS extremely to above maintain over acquisitions the growth, are next ability organically and few the historical both years. optimistic through average

to over With that, back I'd call like to turn this Kevin.

Kevin McNamara

you, now this Nick. to will questions. I teleconference open Thank

Operator

Ben Markets. [Operator RBC Instructions] line from question of And the comes our Capital first from Hendrix

Benjamin Hendrix

Maybe Nick VITAS. here a for question on

nursing the capacity on Just long-term for skilled and you're think could hiring we're handful referral go curious information community runway intermediate sources open lot term, over could improvements census more senior kind degree some and in continue occupancy what your if how seeing of you to of up the that to opportunity, activity, given could in about you open how the you of retention where that the what over growth activity be that terms census across which housing a and thinking of and years? growth the provide seem that to up could next

Nicholas Westfall

Yes, absolutely.

'XX 'XX and the 'XX are of far all beyond, pace we just into just our go we've of revised 'XX is standpoint, think realize into commentary year sustainable. but I So into which 'XX. the latter to guidance on When we throughout part from but the course, the XX.X demonstrated to as right, that thus guide full algorithm question, year, we to, not is the this reiterate, compared full about XX.X part census factors built for don't think of half and what and to the the has of which, cadence and question, a

about not the which that's targeting operate we in in or in, could which be we on we the the this operate market as And markets so our to in something in as are we we the guidance in is combination inferred markets as is waning. the as think changing think also well demand 'XX achievable pinpoint a basis. is that underlying point out, go-forward And

However, of the staff year as over which as see that, from to the track we with we and that be continue now the a program demand markets we've any in a in we and only tried being services across really But all retention culture record for building standpoint we as methodically behind hospice would limitation. long headwinds operate. and particular, think in towards our successful plus locations don't retaining illustrate us, the operate, into a country and we we in have sustainable the approach attracting which

Benjamin Hendrix

more have the a of that. comments can about pipeline M&A opportunities certificate presence out the where about and you offer attain your could opportunities Appreciate you acquire there, any you need? And just already Covenants maybe -- can front, on a -- to don't

Nicholas Westfall

Yes.

So the one, focused we'd and I restricted counties, and the in and all active is, to as those are commented states a we've as think communities. well make comment particularly because they as needs efficiently pipeline in targeted help those guess of is that it operate in we very service on the past an very

time will we tell. discussion, So active have a lot in but

interest, for things towards lead or with a different And providers catalysts bunch site a headwinds in standpoint, and the then tooth there's ownership other whether regional provider, assets depending out in single there's it's on the interesting obviously, the market ongoing well. focused of equity reform in of that that are from would that cycle as that the for strategic reimbursement us others firms long private opportunities create other some and their may

standpoint of our put balance as looking valuation on it our to a sense And which can in markets guys you shareholders. sheet to we're work for Covenant to see the side So operate. if want also makes we from it,

well we're think we So positioned.

Kevin McNamara

blurring over up I in the Florida I'm to -- we've and VITAS geometrically. growth add I'd acquisition In blown CONs. say, that last achieve it The used of be mean, is, between CON. a in the in about to scratch, sped seen on it start-up bit and XXX line from we X Florida. new of starting words, it out that been census about pace one has through years VITAS new used able thing the to water has other program And speaking of get took has to several to a

they in fast. legal yes, are VITAS they've saying in we thing have that just has once grown IP from put precluded shown is, there, finger the your that you that very on there's geography I'm Florida So one being

our there I both is a or get we that CON those Florida. blurring mind, our differentiation bit acquisition, I there's in whether say, as expanding little So in categories in of by but think opportunities footprint for

Nicholas Westfall

impact those to have that that's been in and really the years No, point place of a Yes. Kevin. put markets accelerate team really same by of wouldn't our happy into Very has back. efforts each excellent proud the

whether a new whether and quickly through that in markets really patients as de lined acquisition an there many taken operate. it's penetrate, make it's can novo the or service we've start up, everything as very through as So which intentional impact so approach in we we is to

that impacts growth well. algorithm as that So

Benjamin Hendrix

locations. business, this the around me. point? was commentary of the should seen last way algorithm kind about about of growth just questions side. turn getting I of the we those And on for trajectory opportunity given that the lot any thing kind to I think the this any the just kind headwinds appreciate retraining from the of growth Roto-Rooter commercial about kind of on thoughts a But longer-term we've multi-quarter longer-term for

Kevin McNamara

we've strong Well, it's consistent saying grower. during Roto-Rooter very grinded let been of but that me say we a resistant, that years. And owned -- start always out recession period, it's by for course, XX consistent but type

periods more cyclical had up a have more. We or little a it's bit down where little been

turn? bit Clearly, of I periods, when slope on at how the this say, we think those in we're way cyclical say down And at calls that down. does and a in you it's I of we're Historically, it the on it's little -- X% it mean, business. substantially changed is, to continue I it one pretty kind quarter. down look you're the were of look turned there's forever, is that the the does slope quickly. in, would go line, quickly what nothing

It the into pandemic the during private short went extent a of look worry I trends, a home X not but anything just that what the the those to could we at cuts. field. that's the we term, sector Fed -- when something macroeconomic turn on money of the mean, mean, about growth. explosive lot period on attracted through I the call I rate equity services

the little that's market disrupted I bit. a think

What #X competitors they're is we -- always running Their we're a and line a building a priority marathon. is say are brand. sprint, those top growing running

out brand net a we're build and and then and to top foremost, have We income, line. first

So the are question, negative normal ying to as question. it's Mike, guess your a bit it the But add and cyclical mismatch. we of the view of that side period -- But answer of to I anything on question just there? kind we yang a that

Michael Witzeman

the top we're longer-term X% at your the along a for potential to be pass beginning price X% up would always inflation basis, view growth. on line their than you and based I And to On all year long-term probably good are build the the of that range only commission price That's for of line, with is think our up going generally question, Roto-Rooter increases a to but inflation Sure. in we of the so and along to a way to inflation. at that bit higher technicians hopefully rates. commission-based, we need little pass price because the increase least real stays our not top

So beginning in -- over how is we'll the at but always the new the increase years home sort year. crude demand of a just increase the formation We have the measure, whole and always a itself. of will price about it's talk very sector

So call percent. that couple a of

pass to X%. percent where increase, that's demand you of couple X%, get So if price X% we a through a increase,

on are start the And within and at sort months. XX those were and about that, higher services. then possibility looking a to we're and plumbing On kind developing of a we to sector the start very very, if over consistent of different next of constantly we good that, be businesses are would looking acquisitions, think XX lines we growing long-term which basis than exploring of adding top that would we thinking new

from new X% with business. of acquisition lines So X% and to add-on potential

Operator

Bank question line next from America. from our of Joanna comes of the And Gajuk

Joanna Gajuk

topic on So maybe that continue I'll we first. finished since Roto-Rooter,

pandemic. I I there's decline look clearly than at to think sounds busy expectations. model. a similar by some worse to made did business, kind the mean, of the when I few seasonality the years, QX because it QX. then these like tends to But So your when like worse [indiscernible] than things our be obviously, I sound the but did are assume quarter comes headwinds revenues But there. And it you guess, internal last sequentially, I it

describe flag you there of data expecting? it worse is new like Or you basis was And kind were any how there kind what share So little historical from initially any than of would can QX. can why seasonality organic the bit reasons -- you typical you was for QX a issue?

Kevin McNamara

sequential the Sure. those every the that every normal. freezing, quarter and top cold help really quarter quarters. Roto-Rooter's On you demand. first We're X% That's is that first revenue. X% to just year overall, precipitation, Generally, into basis, our quarter roughly decline and going fourth mild to year would line a best period quarter second sequentially, a happens normally. the tell There's are more from more I of there's period things a

-- then well house second they're each and X% more, home holiday, people as things. weather to and they're during on then as quarter third that to doing house, goes generally From getting quarter the the their other. up X% ready holidays, generally Fourth comparable are for are more festivities quarter third things around based the idea

pump that demand. helps up So our

a there's So of dip second it and in historically quarter revenue. relates third to the a bit as

Joanna Gajuk

And Okay. -- look sorry... I different the at when

Kevin McNamara

expected again, then were to it I'm in been. were lower lower we things. -- our be they commercial our There's than reiterating of we've one said expect reason them Just were earlier I kind be have it those percentage through lower could no that And They blocking of low. mean, But I for the couple quite expected. we question, mean, view we why point in that press in and say, tackling. why of should presentation. would really just overarching to question improvements than sales than and I many release quarter? issue, was generally, sales our an answer about things X

the open relates residential. The really other plumbing on aspect Google And more go and services. of is, the that question is up to

of years. a contractor through locations, all It's top operations fighting fighting than is our cacophony and a our not hundreds You'll see All only that. firms service that our are so our very but issue. there offerings franchise, past We're more franchise of operations. and complex much

in to figure I out, of been mean, have Roto-Rooter marketing get I all sector to companies on it of feeling the side. always it's a changes that that on historically, the top

we're as a it those the on far So market. answer to getting X But It's lower, side. why residential job not yet. as doing better dealing with your calls And it's the there is issues. question the commercial

Joanna Gajuk

I guess the in I say, trying And like business, of still almost the another was this question you right? restoration breakdown the would X% most year-over-year, but in us thought need-base elements of because residential, water down and was down sort gave terms commercial because different to inside was more it commercial, I year-over-year I residential, of guess, be the

like always talk more about I guess broadly just macro-driven confidence Because be speaking. that whether and consumer economy, you should

tracking? know there -- So you more are describe of how basis year-over-year. of kind was that I core don't be How I of those the whether elements, thought will versus the need the discretionary the anything would business sort

Kevin McNamara

severity get water the job that issues we site. find the dependent the of restoration is the business to on So when we

So say it's think we difficult had definition to at varies that that highs. conversion some rate received to sequentially year-over-year. I the can quarter-to-quarter a on are say or on restoration why water how our with it possibility some calls definity that What we is all-time or close or

question those come a come goes calls they that get higher is or sewer rate and the we our why possibilities as in at not But calls So drain hard how we in and have to a plumbing restoration answer, water than have revenue, we we though, out. may in you the with point think that really. generally It converting may past. are

with So getting, that say we're converting can I we're jobs the certainty.

Joanna Gajuk

on guess around. last And Roto right. the All question I

X, it second worth your bigger than a in of second revenue to first So by guidance was imply half. declines the kind decline down -- less half maybe guess still I first assumes but half

So exiting are into the things about quarter in and the or early you tracking talk how can maybe that business? QX

Kevin McNamara

projecting are quarter a sequential quarter basis. and year-over-year improvement We on third comparison fourth some

half X.X% year. to down, going only be the down guiding if is improvement year-to-date, to we're X% we're roughly the X% and second obviously, some to So in there of

of other sequential deal our to big is improvement that revenue a on quarter. on but commercial The some monthly too intra-quarter say deal for want don't improved the a a think the can that. year comps and to I momentum right of of of particularly there's in of of the basis, the direction. activity. thing half couple each just out don't But going want too quarter, make revenue months second a month we -- second during I positive this, second in That's a make of I commercial big out the

Joanna Gajuk

close not to I may team end, That's management Okay. themselves helpful. your the And guess. if of of kind go for to prepared quarters that anticipate of you the is I kind actions about remarks in said several Roto-Rooter going represent to results, in

like of long doesn't it but status change as not still assume assuming term, be But into growth approaching it's X% year? there be next like guess, quo growing sounds X% revenue economy 'XX declining. in direction, I either could to 'XX you you kind headed to much that described, somewhere into that a fast, probably your I it year. may fair is think like it mean, is maybe -- So would the or

Kevin McNamara

analysis 'XX We haven't Joanna. for done any real yet,

So I rate we're in think X% to would moving we're hesitate be say X% we to to that a think that in but I at 'XX going growth direction.

Joanna Gajuk

switching maybe gears VITAS. And to Okay.

the comments your so is we've and quite to clarify much lower, higher, there it And this, but like I guess sounds is I Cap Medicare fraction. rate is. guidance so census Medicare seen bit. around Obviously, But more it raised you the want but the where just the So that's ask [indiscernible] a last piece of proposal.

it for how QX original So what I helped for guess, much, do expectations? versus, it you your and guidance the say, your of rate assume Medicare

Nicholas Westfall

Yes.

Sounds good.

And course, provide me of of it's at I as we and what let while locked the believe speak, -- OMB loaded. I have getting finalized So baked in. we it's construct it is

across come finalized So blended when entire -- the impact X.X% in that's that estimate is embedded do the should quarter of rate net the national fourth our fruition than X.X%. it's course, better, of is to the then in stated we which we believe company, about

that's So great.

services, Inside my slightly than you off head, I which of And focus. totally comes rule of to, that an is some key price point the really the the wage and our area underlying this driving better to higher of particularly original can't than estimate, saw acuity I recognize which increases good. down in is we our government but the think we anticipated, it factor top operate estimate recall in are real is other high as continues in, related continuous out, then of markets to it, that care original

think happened partners, but through provide at all that's And period the continued differentiating to them of not have we hospice a reflective services, to increase lowest, space, providers more provide care able X we're to our continue and continuous for importantly, so of levels keep but levels price and decrease for patients really of and and families GIP providing a all care, offering, a of with help being in as X the we only the them it's largest continuous crisis. home

it how So all... that's

Joanna Gajuk

address capacity, And to seems the which mentioned you the to you is continue And to bigger census. hire right? piece going grow, Right. large censors that

like hire it nurses So others. from workers you just sounds or essentially

rate I can how -- think guess market about to the -- continue answer, share? would guess kind I for at environment, I you how take talk and grow to So like the but guess, just long you of, know hear I competitive long I I

Nicholas Westfall

proven ADC feel is mean, the believe of confident I You years, what we we've growth, quarters -- just years there And capacity, last have clinical full is we of real X all to X -- other associated the right? X effective over Yes. with disciplines we and clinical the comprehensive trend care. disciplines program. retention in need that consistent provide those with been the we've X referencing

As to come families proposition to it differentiating the clinicians, with as fantastic patients we and provide really to us marketplace, to culture cultural and relates that to us and a in talent continues predictability with come they're that resonate believe family joining. to for comprehensive to that a care local and and ability them

-- we're predictable it health from out that's of we're into more the a also encouraging. workforce are strength of of seeing That's other and much individuals those back whether really or available what whether people coming either So reliable experiencing. a resources pattern settings, there, coming combination care

And as at into to all revised and provide gives planning rate anticipate the that's point year's process. we'll our 'XX XX.X%. forward, is details guidance us those volume you further remaining growth only But we out, we what get continue to going not once this of XX.X% that and in confidence driven,

Joanna Gajuk

I guess, you saying must you're guys work have your and So environment, some offer but it I I guess you right? advantages monetary, culture better competitors, versus guess be like

Nicholas Westfall

X not correct. we're is spoken to want The in to calling money last continue to and mission come choice people and either the industry. they confidence fulfill Yes, the it's make that all that have a bring also to people hospice, drives ability into typically it the -- going market the that But over to about attract. years, prevailing our as we've play benefits, that range, rich things just

-- done we're evolved our appropriately, trying targeted so we've market elevate slighted we have but in the to think evaluation game do and and place forced obviously, view, The we're and strategies. have marketing our we're we that. the best think pandemic a to And us I

able to in So year's now. I proven past completed operating anniversary of being I the to that's program think, we're which We've X us. have payment. this behind record right we're last what being the years, retention year And illustrate. we track now have the a plus the helped a worth environment last do the mean, right well of of

Joanna Gajuk

I if like so new on And it Tampa. is guess, pretty sounds close CON, I this to may, the

than can CON? that those sounds like you Florida CONs in added you was had you new much were us the It time added last remind So better you what expected.

So way kind year, to next about, but opportunity year? say, any this like territory, not we as in up think of maybe this size new

Nicholas Westfall

I'd of off great went don't a It's our the want whether successful X Yes. and it's have embedded We'll it's to the place. sizing at we've it teams I performance top right timing immediately to now. back -- have go was my or being last when found guidance 'XX Kevin CONs acquisition CON the alluding of beyond. few in pre-day of deploying entry our head really do approach whether refined and provide of on entry, into in at to But the and to, day as because our resources X want things some the we of drove for and to hesitate of identification one and doing further the what we markets population be and just the found it reinforce underserved which need pieces, substantial. CON the to helps penetrating the to to demand that

we here outperforming And we weren't and anticipate that of basically grossly away so Pasco threw because historical algorithms our they of they that growth were -- we -- enter. under are once all we all other -- in it

Kevin McNamara

guess. fast-growing is that to the provides And take than line, more get like contribution the them, the another the years, protection to I top good in important Medicare We don't is of don't CON it's we big -- almost but or it benefit early that them Joanna, Cap lightly. bottom

Nicholas Westfall

hesitating it charts the one, is historically. substantial. latest performance That's to I what why attribute the it that's to our was entry think it so anything we in I'm don't right of be, compared but And the Yes. to Pasco substantially would now. reference else off

Joanna Gajuk

I to very the good That's Okay. hear. one. so last -- that guess

is year of higher the quarter. On been average guess then XX last I versus length metrics, But stay and I length stay, last median the of XX guess, declining. the XX

it's XXX of So bit like days. about peaked a XXX like you days, I little guess now kind almost but

I length the we guess growth to stay should in you continue hospital decline? pretty good admission. So Because had this expect to average of a

is I So the higher. assume where reflected, it's that's then but median being

too? that to I'm So trying reconcile

Nicholas Westfall

been. at any whether first XX, will XX anticipate the it's credence quarter-over-quarter components, of the may could it you of consistent median stay too year substantial. The wouldn't of XX, movement it what with of I I the sound length is whether Yes. average stay put relatively find remain not it half where has of encouraging, very in think much length I was days,

hospice representation around the really them with that and are of educating how begins we our to me, to of earlier it accurate well becomes care But identification doing it communities translate partners out appropriateness way. of through health the in

cycle movement with education of we the good a a we quarter so because and it look represents positive the day at it of family's And barometer doesn't and a always is members becomes whole what in while that's day remind good patient trajectory. drive of something how all that matters meaningfully experience every how here. of lot, team and one doing a our job we're And

operate life, XX range it the in. probably referenced over going time of real at care whether XX, that's mean XX, more to the or system We end being of when was what pandemic at we but But was were extreme completely disrupted, of for XX, trying and that to census. the health XX, forecast the to all-time in patients we'll we an it's coming hit low that us time it

so And range. we're XX XX by encouraged to

Operator

This does like conclude CEO, today's program Kevin McNamara, session back any the I'd to question-and-answer to program. the further hand of for remarks.

Kevin McNamara

Thank everyone, Thank And you. and reconvene kind for X you, about your today. we'll attention. your from months questions

Operator

This your participation and gentlemen, program. in conclude today's conference. for does ladies you, Thank the

day. Good may You now disconnect.

Chemed (CHE) 25 Jul 242024 Q2 Earnings call transcript