þ
|
For the fiscal year ended December 31, 2011
|
¨
|
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the Transition Period from ________ to ___________
|
Delaware
(State or other jurisdiction of
incorporation or organization)
|
31-0791746
(I.R.S. Employer
Identification Number)
|
2600 Chemed Center, 255 East Fifth Street, Cincinnati, Ohio
(Address of principal executive offices)
|
45202-4726
(Zip Code)
|
(513) 762-6900
(Registrant’s Telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
|
|
Title of Each Class
|
Name of each exchange
on which registered
|
Capital Stock – Par Value $1 Per Share |
New York Stock Exchange
|
Document
|
Where Incorporated
|
2011 Annual Report to Stockholders (specified portions)
Proxy Statement for Annual Meeting to be held May 21, 2012
|
Parts I, II, and IV
Part III
|
PART I
|
||
1 | ||
14 | ||
25 | ||
25 | ||
26 | ||
27 | ||
PART II
|
||
28 | ||
32 | ||
32 | ||
32 | ||
32 | ||
32 | ||
32 | ||
32 | ||
33 | ||
PART III
|
||
33 | ||
33 | ||
33 | ||
34 | ||
34 | ||
PART IV
|
||
35 |
|
Routine Home Care. The routine home care rate is paid for each day that a patient is in a hospice program and is not receiving one of the other categories of hospice care. The routine home care rate does not vary based upon the volume or intensity of services provided by the hospice program.
|
|
General Inpatient Care. The general inpatient care rate is paid when a patient requires inpatient services for a short period for pain control or symptom management which cannot be managed in other settings. General inpatient care services must be provided in a Medicare or Medicaid certified hospital or long-term care facility or at a freestanding inpatient hospice facility with the required registered nurse staffing.
|
|
Continuous Home Care. Continuous home care, which Vitas refers to as “Intensive Comfort Care”, is provided to patients while at home, during periods of crisis when intensive monitoring and care, primarily nursing care, is required in order to achieve palliation or management of acute medical symptoms. Continuous home care requires a minimum of 8 hours of care within a 24-hour day, which begins and ends at midnight. The care must be predominantly nursing care provided by either a registered nurse or licensed practical nurse. While the published Medicare continuous home care rates are daily rates, Medicare actually pays for continuous home care in fifteen minute increments. This fifteen minute rate is calculated by dividing the daily rate by 96.
|
|
Respite Care. Respite care permits a hospice patient to receive services on an inpatient basis for a short period of time in order to provide relief for the patient’s family or other caregivers from the demands of caring for the patient. A hospice can receive payment for respite care for a given patient for up to five consecutive days at a time, after which respite care is reimbursed at the routine home care rate.
|
●
|
Ensuring that Medicare hospice eligibility determinations are made in accordance with the Medicare regulations; and
|
●
|
Revising the annual cap on hospice benefits to better reflect the cost of care provided.
|
●
|
Denial of payment;
|
●
|
Civil monetary penalties of $15,000 per referral or $1,000,000 for “circumvention schemes;”
|
●
|
Assessments equal to 200% of the dollar value of each such service provided; and
|
●
|
Exclusion from the Medicare and Medicaid programs.
|
●
|
Limit our ability to obtain additional financing;
|
●
|
Limit our flexibility in planning for, or reacting to, changes in the markets in which we compete;
|
●
|
Place us at a competitive disadvantage relative to our competitors with less indebtedness;
|
●
|
Increase our exposure to interest rate increases due to variable interest rates on certain borrowings;
|
●
|
Limit our ability to complete future acquisitions;
|
●
|
Limit our ability to make capital expenditures;
|
●
|
Render us more vulnerable to general adverse economic and industry conditions; and
|
●
|
Require us to dedicate a substantial portion of our cash flow to service and repay our debt.
|
●
|
Incur additional debt;
|
●
|
Issue and sell capital stock of subsidiaries;
|
●
|
Sell assets;
|
●
|
Engage in transactions with affiliates;
|
●
|
Restrict distributions from subsidiaries;
|
●
|
Incur liens;
|
●
|
Engage in business other than permitted businesses;
|
●
|
Engage in sale/leaseback transactions;
|
●
|
Engage in mergers or consolidations;
|
●
|
Make capital expenditures;
|
●
|
Make guarantees;
|
●
|
Make investments and acquisitions;
|
●
|
Enter into operating leases;
|
●
|
Hedge interest rates; and
|
●
|
Prepay other debt.
|
●
|
Payment for services;
|
●
|
Conduct of operations, including fraud and abuse, anti-kickback prohibitions, self-referral prohibitions and false claims;
|
●
|
Privacy and security of medical records;
|
●
|
Employment practices; and
|
●
|
Various state approval requirements, such as facility and professional licensure, certificate of need, compliance surveys and other certification or recertification requirements.
|
●
|
Identify markets that meet its selection criteria for new hospice locations;
|
●
|
Hire and retain qualified management teams to operate each of its new hospice locations;
|
●
|
Manage a large and geographically diverse group of hospice locations;
|
●
|
Become Medicare and Medicaid certified in new markets;
|
●
|
Generate sufficient hospice admissions in new markets to operate profitably in these new markets;
|
●
|
Compete effectively with existing hospices in new markets; or
|
●
|
Obtain state licensure and/or a certificate of need from appropriate state agencies in new markets.
|
●
|
Its ability to identify suitable acquisition candidates;
|
●
|
Its ability to negotiate favorable acquisition terms, including purchase price, which may be adversely affected due to increased competition with other buyers;
|
●
|
The availability of financing on favorable terms, or at all;
|
●
|
Its ability to integrate effectively the systems and operations of acquired hospices;
|
●
|
Its ability to retain key personnel of acquired hospices; and
|
●
|
Its ability to obtain required regulatory approvals.
|
●
|
Community-based hospice providers;
|
●
|
National and regional companies;
|
●
|
Hospital-based hospice and palliative care programs;
|
●
|
Physician groups;
|
●
|
Nursing homes;
|
●
|
Home health agencies;
|
●
|
Infusion therapy companies; and
|
●
|
Nursing agencies.
|
Name
|
Age
|
Office
|
First Elected
|
|||
Kevin J. McNamara | 58 | President and Chief Executive Officer | August 2, 1994 (1) | |||
Timothy S. O’Toole | 56 | Executive Vice President | May 18, 1992 (2) | |||
Spencer S. Lee | 56 | Executive Vice President | May 15, 2000 (3) | |||
David P. Williams | 51 | Executive Vice President and Chief Financial Officer | March 5, 2004 (4) | |||
Arthur V. Tucker, Jr.
|
62
|
Vice President and Controller
|
February 1, 1989 (5)
|
(1)
|
Mr. K. J. McNamara is President and Chief Executive Officer of the Company and has held these positions since August 1994 and May 2001, respectively. Previously, he served as an Executive Vice President, Secretary and General Counsel of the Company, since November 1993, August 1986 and August 1986, respectively. He previously held the position of Vice President of the Company, from August 1986 to May 1992.
|
(2)
|
Mr. T.S. O’Toole is an Executive Vice President of the Company and has held this position since May 1992. He is also Chief Executive Officer of Vitas, a wholly owned subsidiary of the Company, and has held this position since February 24, 2004. Previously, from May 1992 to February 24, 2004, he also served the Company as Treasurer.
|
(3)
|
Mr. S. S. Lee is an Executive Vice President of the Company and has held this position since May 15, 2000. Mr. Lee is also Chairman and Chief Executive Officer of Roto-Rooter Services Company, a wholly owned subsidiary of the Company, and has held this position since January 1999. Previously, he served as a Senior Vice President of Roto-Rooter Services Company from May 1997 to January 1999.
|
(4)
|
Mr. D. P. Williams is an Executive Vice President and the Chief Financial Officer of the company and has held these positions since August 10, 2007 and March 5, 2004, respectively. Mr. Williams is also Senior Vice President and Chief Financial Officer of Roto-Rooter Group, Inc., and has held these positions since January 1999.
|
(5)
|
Mr. A. V. Tucker, Jr. is a Vice President and Controller of the Company and has held these positions since February 1989. From May 1983 to February 1989, he held the position of Assistant Controller of the Company.
|
Closing | Dividends Paid | ||||||||||||
High
|
Low
|
Per Share
|
|||||||||||
2010
|
|||||||||||||
First Quarter
|
$ | 57.18 | $ | 46.41 | $ | .12 | |||||||
Second Quarter
|
58.34 | 51.31 | .12 | ||||||||||
Third Quarter
|
57.30 | 49.52 | .14 | ||||||||||
Fourth Quarter
|
64.66 | 55.41 | .14 | ||||||||||
2011
|
|||||||||||||
First Quarter
|
$ | 66.71 | $ | 61.96 | $ | .14 | |||||||
Second Quarter
|
72.02 | 63.94 | .14 | ||||||||||
Third Quarter
|
67.08 | 50.64 | .16 | ||||||||||
Fourth Quarter
|
60.68 | 48.24 | .16 |
Total Number
Of Shares
Repurchased
|
Weighted
Average
Price Paid
Per
Share
|
Cumulative
Shares
Repurchased
Under
The Program
|
Dollar
Amount
Remaining
Under
The Program
|
|||||||||||||
April 2007 Program
|
||||||||||||||||
January 1 through January 31, 2011
|
300,513 | $ | 63.62 | 3,654,157 | $ | 24,543 | ||||||||||
February 1 through February 28, 2011
|
377 | 65.03 | 3,654,534 | - | ||||||||||||
March 1 through March 31, 2011
|
- | - | 3,654,534 | $ | - | |||||||||||
First Quarter Total -- April 2007 Program
|
300,890 | $ | 63.62 | |||||||||||||
February 2011 Program
|
||||||||||||||||
January 1 through January 31, 2011
|
- | $ | - | - | $ | - | ||||||||||
February 22, 2011 Authorization
|
- | $ | - | - | 100,000,000 | |||||||||||
February 1 through February 28, 2011
|
40,623 | $ | 65.03 | 40,623 | 97,358,313 | |||||||||||
March 1 through March 31, 2011
|
- | $ | - | 40,623 | $ | 97,358,313 | ||||||||||
First Quarter Total – February 2011 Program
|
40,623 | $ | 65.03 | |||||||||||||
April 1 through April 30, 2011
|
- | $ | - | 40,623 | $ | 97,358,313 | ||||||||||
May 1 through May 31, 2011
|
- | $ | - | 40,623 | 97,358,313 | |||||||||||
June 1 through June 30, 2011
|
- | $ | - | 40,623 | $ | 97,358,313 | ||||||||||
Second Quarter Total – February 2011 Program
|
- | $ | - | |||||||||||||
July 1 through July 31, 2011
|
41,112 | $ | 60.15 | 81,735 | $ | 94,885,576 | ||||||||||
August 1 through August 31, 2011
|
710,172 | $ | 55.51 | 791,907 | 55,460,568 | |||||||||||
September 1 through September 30, 2011
|
778,746 | $ | 55.02 | 1,570,653 | $ | 12,615,182 | ||||||||||
Third Quarter Total – February 2011 Program
|
1,530,030 | $ | 55.39 | |||||||||||||
October 1 through October 31, 2011
|
230,970 | $ | 53.94 | 1,801,623 | $ | 155,820 | ||||||||||
November 7, 2011 Authorization
|
- | - | - | 100,000,000 | ||||||||||||
November 1 through November 30, 2011
|
247,712 | 49.88 | 2,049,335 | 87,800,735 | ||||||||||||
December 1 through December 31, 2011
|
252,288 | 49.68 | 2,301,623 | $ | 75,268,254 | |||||||||||
Fourth Quarter Total – February 2011 Program
|
730,970 | $ | 51.09 |
Plan Category
|
Number of
securities
to be issued upon
exercise of
outstanding warrants
and rights
(a)
|
Weighted-average
exercise price of
outstanding
options,
warrants and
rights
(b)
|
Number of securities
remaining available
for future issuance
under equity
compensation plans
[excluding
securities reflected
in column (a)]
(c)
|
|||||||||
Equity Compensation plans approved by stockholders
|
2,624,523 | $ | 52.56 | 1,420,134 | ||||||||
Equity Compensation plans not approved by stockholders (1)
|
14,000 | 29.20 | - | |||||||||
TOTAL
|
2,638,523 | $ | 52.44 | 1,420,134 |
(1)
|
In May 1999 the Board of Directors adopted the 1999 Long-Term Employee Incentive Plan without stockholder approval. This plan permits the Company to grant up to 500,000 shares of non-qualified options and stock awards to a broad base of salaried and hourly employees (excluding officers and directors) of the Company. Except for the exclusion of officers and directors, this plan has the same general terms and provisions as the 2006 Stock Incentive Plan. In addition, pursuant to this plan no individual may be granted more than 50,000 stock options in a calendar year, the aggregate number of the shares of Capital Stock which may be issued pursuant to stock incentives in the form of Stock Awards shall not be more than 270,000, and no stock incentives shall be granted under the plan after May 17, 2009.
|
Exhibits and Financial Statement Schedule
|
||
Exhibits
|
||
3.1
|
Certificate of Incorporation of Chemed Corporation.*
|
|
3.2
|
Certificate of Amendment to Certificate of Incorporation.*
|
|
3.3
|
By-Laws of Chemed Corporation.*
|
|
10.1
|
1999 Stock Incentive Plan.*,**
|
|
10.2
|
1999 Long-Term Employee Incentive Plan as amended through May 20, 2002.*,**
|
|
10.3
|
2002 Stock Incentive Plan.*,**
|
|
10.4
|
2002 Executive Long-Term Incentive Plan, as amended May 18, 2004.*,**
|
|
10.5
|
2004 Stock Incentive Plan.*,**
|
|
10.6 | 2006 Stock Incentive Plan, as amended August 11, 2006.*,** | |
10.7
|
2010 Stock Incentive Plan.*,**
|
|
10.8
|
Repurchase Agreement dated May 8, 2007 by and among Chemed Corporation, J.P. Morgan Securities Inc. and Citigroup Global Markets, Inc.*
|
|
10.9
|
Convertible Senior Note Indenture dated May 14, 2007 for 1.875% Convertible Senior Notes due 2014 by and among Chemed Corporation, the Subsidiary Guarantors and LaSalle Bank NA, as Trustee.*
|
|
10.10 | Employment Agreement with David P. Williams dated December 1, 2006.*,** | |
10.11
|
First Amendment to Employment Agreement with David P. Williams dated July 9, 2009.*,**
|
|
10.12 | Employment Agreement with Timothy S. O’Toole dated May 6, 2007.*,** | |
10.13 | First Amendment to Employment Agreement with Timothy S. O’Toole dated July 9, 2009.*,** | |
10.14
|
Employment Agreement with Kevin J. McNamara dated May 3, 2008.*,**
|
|
10.15
|
First Amendment to Employment Agreement with Kevin J. McNamara dated July 9, 2009.*,**
|
|
10.16
|
Registration Rights Agreement, dated May 14, 2007 by and among Chemed Corporation, J.P. Morgan Securities, Inc. and Citigroup Global Markets Inc.*
|
10.17
|
Confirmation of Convertible Note Hedge, dated May 8, 2007 between Chemed Corporation and J.P. Morgan Chase Bank, NA.*
|
|
10.18
|
Confirmation of Convertible Note Hedge, dated May 8, 2007 between Chemed Corporation and Citibank, NA.*
|
|
10.19
|
Form of Convertible Note Warrant Transaction, dated May 8, 2007 between Chemed Corporation and Citibank NA.*
|
|
10.20
|
Form of Convertible Note Warrant Transaction, dated May 8, 2007 between Chemed Corporation and J.P. Morgan Chase Bank, NA.*
|
|
10.21
|
Excess Benefits Plan, as restated and amended, effective June 1, 2001.*,**
|
|
10.22
|
Amendment No. 1 to Excess Benefits Plan, effective July 1, 2001.*,**
|
|
10.23
|
Amendment No. 2 to Excess Benefits Plan, effective November 7, 2003.*,**
|
|
10.24
|
Non-Employee Directors’ Deferred Compensation Plan.*,**
|
|
10.25
|
Chemed/Roto-Rooter Savings & Retirement Plan, effective January 1, 1999.*,**
|
|
10.26
|
First Amendment to Chemed/Roto-Rooter Savings & Retirement Plan, effective September 6, 2000.*,**
|
|
10.27
|
Second Amendment to Chemed/Roto-Rooter Savings & Retirement Plan, effective January 1, 2001.*,**
|
|
10.28
|
Third Amendment to Chemed/Roto-Rooter Savings & Retirement Plan, effective December 12, 2001.*,**
|
|
10.29
|
Directors Emeriti Plan.*,**
|
|
10.30
|
Chemed Corporation Change in Control Severance Plan, as amended July 9, 2009.*,**
|
|
10.31
|
Chemed Corporation Senior Executive Severance Policy, as amended July 9, 2009.*,**
|
|
10.32
|
Roto-Rooter Deferred Compensation Plan No. 1, as amended January 1, 1998.*,**
|
|
10.33
|
Roto-Rooter Deferred Compensation Plan No. 2.*,**
|
|
10.34 | Form of Restricted Stock Award.*,** | |
10.35
|
Form of Stock Option Grant.*,**
|
|
10.36 | Amended and Restated Credit Agreement - $350,000,000 Revolving Credit Facility, originally dated May 2, 2007, by and among JP Morgan Chase Bank, NA and Chemed Corporation as of March 1, 2011, exhibits and schedules thereto. |
12
|
Computation of Ratio of Earnings to Fixed Charges.
|
|
13
|
2011 Annual Report to Stockholders.
|
|
14
|
Policies on Business Ethics of Chemed Corporation.*
|
|
21
|
Subsidiaries of Chemed Corporation.
|
|
23
|
Consent of Independent Registered Public Accounting Firm.
|
|
24
|
Powers of Attorney.
|
|
31.1
|
Certification by Kevin J. McNamara pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act of 1934.
|
|
31.2
|
Certification by David P. Williams pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act of 1934.
|
|
31.3
|
Certification by Arthur V. Tucker, Jr. pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act of 1934.
|
|
32.1
|
Certification by Kevin J. McNamara pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
32.2
|
Certification by David P. Williams pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
32.3 | Certification by Arthur V. Tucker, Jr. pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101.INS
|
XBRL Instance Document*
|
|
101.SCH
|
XBRL Extension Schema* | |
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase* | |
101.LAB
|
XBRL Taxonomy Extension Label Linkbase* | |
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase*
|
|
*
|
This exhibit is being filed by means of incorporation by reference (see Index to Exhibits on page E-1). Each other exhibit is being filed with this Annual Report on Form 10-K.
|
|
**
|
Management contract or compensatory plan or arrangement.
|
February 27, 2012 | CHEMED CORPORATION | ||
By |
Kevin J. McNamara
|
||
Kevin J. McNamara
|
|||
President and Chief Executive Officer
|
Signature | Title | Date | |
/s/ Kevin J. McNamara
Kevin J. McNamara
|
President and Chief
Executive Officer and
a Director (Principal
Executive Officer)
|
February 27, 2012
|
|
/s/ David P. Williams
David P. Williams
|
Executive Vice President and Chief
Financial Officer
(Principal Financial Officer)
|
February 27, 2012
|
|
/s/ Arthur V. Tucker, Jr.
Arthur V. Tucker, Jr.
|
Vice President and
Controller
(Principal Accounting
Officer)
|
February 27, 2012
|
|
Joel F. Gemunder*
Patrick P. Grace*
Thomas C. Hutton*
Walter L. Krebs*
Andrea R. Lindell*
|
Thomas P. Rice*
Donald E. Saunders*
George J Walsh III*
Frank E. Wood*
|
- - Directors |
February 27, 2012
|
* | Naomi C. Dallob by signing her name hereto signs this document on behalf of each of the persons indicated above pursuant to powers of attorney duly executed by such persons and filed with the Securities and Exchange Commission |
February 27, 2012
|
/s/ Naomi C. Dallob
|
||
Date | Naomi C. Dallob | ||
(Attorney-in-Fact)
|
Page(s)
|
|
Chemed Corporation Consolidated Financial Statements and Financial Statement Schedule
|
|
Report of Independent Registered Public Accounting Firm | 2* |
Consolidated Statement of Income | 3* |
Consolidated Balance Sheet | 4* |
Consolidated Statement of Cash Flows | 5* |
Consolidated Statement of Changes in Stockholders’ Equity | 6* |
Notes to Consolidated Financial Statements | 7-31* |
Report of Independent Registered Public Accounting Firm on Financial Statement Schedule
|
S-2 |
Schedule II - Valuation and Qualifying Accounts
|
S-3 |
SCHEDULE II | ||||||||||||||||||||
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
|
||||||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS
|
||||||||||||||||||||
(IN THOUSANDS)
|
||||||||||||||||||||
DR/(CR)
|
||||||||||||||||||||
|
|
ADDITIONS
|
|
|
||||||||||||||||
(CHARGED)
|
||||||||||||||||||||
CREDITED
|
(CHARGED)
|
|||||||||||||||||||
BALANCE AT
|
TO COSTS
|
CREDITED
|
BALANCE
|
|||||||||||||||||
BEGINNING
|
AND
|
TO OTHER
|
DEDUCTIONS
|
AT END
|
||||||||||||||||
DESCRIPTION
|
OF PERIOD
|
EXPENSES
|
ACCOUNTS
|
(a)
|
OF PERIOD
|
|||||||||||||||
Allowances for doubtful
|
||||||||||||||||||||
accounts (b)
|
||||||||||||||||||||
For the year 2011
|
$ | (13,332 | ) | $ | (8,686 | ) | $ | (786 | ) | $ | 11,280 | $ | (11,524 | ) | ||||||
For the year 2010
|
$ | (12,595 | ) | $ | (9,118 | ) | $ | (472 | ) | $ | 8,853 | $ | (13,332 | ) | ||||||
For the year 2009
|
$ | (10,320 | ) | $ | (10,861 | ) | $ | (656 | ) | $ | 9,242 | $ | (12,595 | ) | ||||||
Allowances for doubtful
|
||||||||||||||||||||
accounts - notes
|
||||||||||||||||||||
receivable (c)
|
||||||||||||||||||||
For the year 2011
|
$ | (368 | ) | $ | 123 | $ | (60 | ) | $ | - | $ | (305 | ) | |||||||
For the year 2010
|
$ | (408 | ) | $ | 40 | $ | - | $ | - | $ | (368 | ) | ||||||||
For the year 2009
|
$ | (482 | ) | $ | 28 | $ | 44 | $ | 2 | $ | (408 | ) |
(a) |
With respect to allowances for doubtful accounts, deductions include accounts considered uncollectible or
|
written off, payments, companies divested, etc.
|
|
(b) |
Classified in consolidated balance sheet as a reduction of accounts receivable.
|
(c) |
Classified in consolidated balance sheet as a reduction of other assets.
|
Page Number
|
|||
or
|
|||
Incorporation by Reference
|
|||
Exhibit
|
|
File No. and
|
Previous
|
Number
|
|
Filing Date
|
Exhibit No.
|
|
|||
3.1
|
Certificate of Incorporation of
|
Form S-3
|
4.1
|
Chemed Corporation
|
Reg. No. 33-44177
|
|
|
11/26/91 | |||
3.2
|
Certificate of Amendment to
|
Form 8-K
|
3.1
|
Certificate of Incorporation
|
5/16/06
|
|
|
3.3
|
By-Laws of Chemed Corporation
|
Form 8-K
|
3.1
|
as amended November 10, 2009
|
11/13/09
|
|
|
10.1
|
1999 Stock Incentive Plan
|
Form 10-K
|
10.11
|
|
3/29/00, **
|
||
10.2
|
1999 Long Term Employee
|
Form 10-K
|
10.16
|
Incentive Plan as amended
|
3/28/03, **
|
|
|
|
through May 20, 2002
|
||
10.3
|
2002 Stock Incentive Plan
|
Form 10-K
|
10.17
|
3/28/03, **
|
|||
10.4
|
2002 Executive Long-Term
|
Form 10-Q
|
10.16
|
|
Incentive Plan, as amended
|
8/19/04, ** | |
|
May 18, 2004
|
||
10.5
|
2004 Stock Incentive Plan
|
Proxy Statement
|
A
|
3/25/04, **
|
|||
10.6
|
2006 Stock Incentive Plan,
|
Form 10-Q
|
10.1
|
as amended August 11, 2006
|
8/14/06, **
|
|
|
10.7
|
2010 Stock Incentive Plan
|
Form 8-K
|
99.1
|
|
5/18/10, **
|
||
10.8
|
Repurchase Agreement dated
|
Form 8-K
|
1.1
|
|
May 8, 2007 by and among
|
5/17/07
|
|
|
Chemed Corporation, J.P.
|
||
|
Morgan Securities Inc. and
|
||
|
Citigroup Global Markets, Inc.
|
||
10.9
|
Convertible Senior Note
|
Form 8-KA
|
4.1 |
|
Indenture dated May 14, 2007
|
5/22/07
|
|
|
for 1.875% Convertible Senior
|
||
|
Notes due 2014 by and among
|
||
|
Chemed Corporation, the
|
||
|
Subsidiary Guarantors and
|
||
|
LaSalle Bank NA, as Trustee.
|
||
10.10
|
Employment Agreement with David
|
Form 8-K
|
10.01
|
|
P. Williams dated December 1, 2006.
|
12/1/06, **
|
|
Page Number | ||
|
or | ||
|
Incorporation by Reference | ||
Exhibit
|
File No. and | Previous | |
Number
|
Filing Date | Exhibit No. | |
10.11
|
First Amendment to Employment
|
Form 10-Q
|
10.02
|
Agreement with David P. Williams
|
7/31/09, **
|
|
|
|
dated July 9, 2009.
|
||
10.12
|
Employment Agreement with
|
Form 8-K
|
10.02
|
|
Timothy S. O’Toole dated
|
5/7/07, ** | |
|
May 6, 2007.
|
||
10.13
|
First Amendment to Employment
|
Form 10-Q
|
10.3
|
Agreement with Timothy S.
|
7/31/09, **
|
|
|
O’Toole dated July 9, 2009.
|
|
||
10.14
|
Employment Agreement with
|
Form 8-K
|
10.01
|
Kevin J. McNamara dated
|
5/6/08, **
|
|
|
May 3, 2008.
|
|
||
10.15
|
First Amendment to Employment
|
Form 10-Q
|
10.1
|
Agreement with Kevin J.
|
7/31/09, **
|
|
|
McNamara dated July 9, 2009.
|
|
||
10.16
|
Registration Rights Agreement,
|
Form 8-K
|
10.5
|
dated May 14, 2007 by and among
|
5/17/07
|
|
|
|
Chemed Corporation, J.P. Morgan
|
||
|
Securities, Inc. and Citigroup
|
||
|
Global Markets Inc.
|
||
10.17
|
Confirmation of Convertible Note
|
Form 8-K
|
10.1
|
|
Hedge, dated May 8, 2007 between
|
5/17/07
|
|
|
Chemed Corporation and J.P. Morgan
|
||
|
Chase Bank, NA.
|
||
10.18
|
Confirmation of Convertible Note
|
Form 8-K
|
10.2
|
Hedge, dated May 8, 2007 between
|
5/17/07
|
|
|
|
Chemed Corporation and Citibank,
|
||
|
NA. | ||
10.19
|
Form of Convertible Note Warrant
|
Form 8-K
|
10.4
|
|
Transaction, dated May 8, 2007
|
5/17/07
|
|
|
between Chemed Corporation and
|
||
|
Citibank, NA.
|
||
10.20
|
Form of Convertible Note Warrant
|
Form 8-K
|
10.5
|
|
Transaction, dated May 8, 2007
|
5/17/07
|
|
|
between Chemed Corporation and
|
||
|
J.P. Morgan Chase Bank, NA.
|
||
10.21
|
Excess Benefits Plan, as restated
|
Form 10-K
|
10.24
|
|
and amended, effective June 1, 2001
|
3/12/04, **
|
|
10.22
|
Amendment No. 1 to Excess Benefits
|
Form 10-K
|
10.25
|
|
Plan, effective July 1, 2002
|
3/12/04, **
|
Page Number | |||
or | |||
Incorporation by Reference | |||
Exhibit | File No. and | Previous | |
Number | Filing Date | Exhibit No. | |
10.23 |
Amendment No. 2 to Excess Benefits
|
Form 10-K
|
10.26
|
Plan, effective November 7, 2003
|
3/12/04, **
|
||
|
|
||
10.24 |
Non-Employee Directors' Deferred
|
Form 10-K
|
10.10
|
Compensation Plan
|
3/24/88, **
|
||
10.25 |
Chemed/Roto-Rooter Savings &
|
Form 10-K
|
10.25
|
Retirement Plan, effective
|
3/25/99, **
|
||
January 1, 1999
|
|||
10.26 |
First Amendment to Chemed/
|
Form 10-K
|
10.22
|
Roto-Rooter Savings & Retirement
|
3/28/02, **
|
||
Plan effective September 6, 2000
|
|||
10.27 |
Second Amendment to Chemed/
|
Form 10-K
|
10.23
|
Roto-Rooter Savings & Retirement
|
3/28/02, **
|
||
Plan effective January 1, 2001
|
|||
10.28 |
Third Amendment to Chemed/
|
Form 10-K
|
10.24
|
Roto-Rooter Savings & Retirement
|
3/28/02, **
|
||
Plan effective December 12, 2001
|
|||
10.29 |
Directors Emeriti Plan
|
Form 10-Q
|
10.11
|
5/12/88, ** | |||
10.30 |
Change in Control Severance
|
Form 10-Q
|
10.05
|
Plan as amended July 9, 2009.
|
7/31/09, **
|
||
10.31 |
Senior Executive Severance
|
Form 10-Q
|
10.04
|
Policy as amended July 9, 2009.
|
7/31/09, **
|
||
10.32 |
Roto-Rooter Deferred Compensation
|
Form 10-K
|
10.37
|
Plan No. 1, as amended January 1,
|
3/28/01, **
|
||
1998 | |||
10.33 |
Roto-Rooter Deferred Compensation
|
Form 10-K
|
10.38
|
Plan No. 2 |
3/28/01, **
|
|
|
10.34 |
Form of Restricted Stock Award
|
Form 10-K
|
10.50 |
3/28/05, ** |
|
||
10.35 |
Form of Stock Option Grant
|
Form 10-K
|
10.51
|
3/28/05, ** |
|
||
10.36 |
Amended and Restated Credit
|
Form 10-Q
|
10.1
|
Agreement - $350,000,000 Revolving
|
4/29/11
|
|
|
Credit Facility, originally dated
|
|
||
May 2, 2007, by and among JP Morgan
|
|
||
Chase Bank, N.A. and Chemed
|
|
||
Corporation as of March 1, 2011,
|
|
||
Exhibits and schedules thereto.
|
|
Page Number | |||
or | |||
Incorporation by Reference | |||
Exhibit | File No. and | Previous | |
Number | Filing Date | Exhibit No. | |
12 |
Computation of Ratio of Earnings
|
*
|
|
to Fixed Charges
|
|
||
|
|
||
13 |
2011 Annual Report to Stockholders
|
*
|
|
|
|
||
14 |
Policies on Business Ethics of
|
Form 10-K
|
14
|
Chemed Corporation
|
3/12/04
|
||
21 |
Subsidiaries of Chemed Corporation
|
*
|
|
23 |
Consent of Independent Registered
|
*
|
|
Public Accounting Firm
|
|
||
|
|||
24 |
Powers of Attorney
|
*
|
|
31.1 |
Certification by Kevin J. McNamara
|
*
|
|
pursuant to Rule 13a-14(a)/15d-14(a)
|
|||
of the Exchange Act of 1934.
|
|||
31.2 |
Certification by David P. Williams
|
*
|
|
pursuant to Rule 13a-14(a)/15d-14(a)
|
|||
of the Exchange Act of 1934.
|
|
||
31.3 |
Certification by Arthur V. Tucker, Jr.
|
*
|
|
pursuant to Rule 13a-14(a)/15d-14(a)
|
|||
of the Exchange Act of 1934.
|
|
||
32.1 |
Certification by Kevin J. McNamara
|
*
|
|
pursuant to Section 906 of the
|
|||
Sarbanes-Oxley Act of 2002
|
|||
32.2 |
Certification by David P. Williams
|
*
|
|
pursuant to Section 906 of the
|
|
|
|
Sarbanes-Oxley Act of 2002 | |||
32.3 |
Certification by Arthur V. Tucker,
|
*
|
|
Jr. pursuant to Section 906 of | |||
the Sarbanes-Oxley Act of 2002
|
101.INS |
XBRL Instance Document
|
*
|
|
101.SCH |
XBRL Extension Schema
|
* | |
101.CAL |
XBRL Taxonomy Extension Calculation
|
*
|
|
Linkbase
|
|||
|
|
|
|
101.LAB | XBRL Taxonomy Extension Label | * | |
Linkbase
|
|||
101.PRE |
XBRL Taxonomy Extension Presentation
|
*
|
|
Linkbase |
EXHIBIT 12
|
CHEMED CORPORATION
|
||||||||||||||||||||
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
|
||||||||||||||||||||
(in thousands, except ratios)
|
||||||||||||||||||||
2007
|
2008
|
2009
|
2010
|
2011
|
||||||||||||||||
Pretax income from continuing operations
|
$ | 98,161 | $ | 115,404 | $ | 120,620 | $ | 133,831 | $ | 140,556 | ||||||||||
Additions:
|
||||||||||||||||||||
Fixed charges
|
21,554 | 18,983 | 18,840 | 19,139 | 21,231 | |||||||||||||||
Amortization of capitalized interest
|
4 | 5 | 5 | 331 | 438 | |||||||||||||||
Deductions:
|
||||||||||||||||||||
Capitalized interest
|
(951 | ) | (659 | ) | (258 | ) | - | - | ||||||||||||
|
||||||||||||||||||||
Adjusted income
|
$ | 118,768 | $ | 133,733 | $ | 139,207 | $ | 153,301 | $ | 162,225 | ||||||||||
Fixed Charges:
|
||||||||||||||||||||
Interest expense
|
$ | 14,921 | $ | 12,123 | $ | 11,599 | $ | 11,959 | $ | 13,888 | ||||||||||
Capitalized interest
|
951 | 659 | 258 | - | - | |||||||||||||||
Interest component of rental expense
|
5,682 | 6,201 | 6,983 | 7,180 | 7,343 | |||||||||||||||
|
||||||||||||||||||||
Fixed charges
|
$ | 21,554 | $ | 18,983 | $ | 18,840 | $ | 19,139 | $ | 21,231 | ||||||||||
Ratio of earnings to fixed charges (a)
|
5.5 | x | 7.0 | x | 7.4 | x | 8.0 | x | 7.6 | x |
(a)
|
For purposes of computing the ratio of earnings to fixed charges, pretax income from continuing operations has been added to fixed charges and adjusted for capitalized interest to derive adjusted income. Fixed charges consist of interest expense on debt (including the amortization of deferred financing costs), capitalized interest, prepayment penalties on the early extinguishment of debt and one-third (the proportion deemed representative of the interest component) of rental expense. Fixed charge amounts include interest from both continuing and discontinued operations.
|
Report of Independent Registered Public Accounting Firm
|
2
|
||
Consolidated Statement of Income
|
3
|
||
Consolidated Balance Sheet
|
4
|
||
Consolidated Statement of Cash Flows
|
5
|
||
Consolidated Statement of Changes in Stockholders’ Equity
|
6
|
||
Notes to Consolidated Financial Statements
|
7
|
||
Unaudited Summary of Quarterly Results
|
32
|
||
Selected Financial Data
|
34
|
||
Unaudited Consolidating Statements of Income
|
35
|
||
Management’s Discussion and Analysis of Financial Conditions and Results of Operations
|
38
|
||
Officers’ and Directors’ Listing and Corporate Information
|
IBC
|
CONSOLIDATED STATEMENT OF INCOME
|
||||||||||||
Chemed Corporation and Subsidiary Companies
|
||||||||||||
(in thousands, except per share data)
|
||||||||||||
For the Years Ended December 31,
|
2011
|
2010
|
2009
|
|||||||||
Continuing Operations
|
||||||||||||
Service revenues and sales
|
$ | 1,355,970 | $ | 1,280,545 | $ | 1,190,236 | ||||||
Cost of services provided and goods sold (excluding depreciation)
|
970,484 | 906,016 | 834,574 | |||||||||
Selling, general and administrative expenses
|
202,260 | 201,964 | 197,426 | |||||||||
Depreciation
|
25,247 | 24,386 | 21,535 | |||||||||
Amortization
|
4,252 | 4,657 | 6,367 | |||||||||
Other operating expenses (Note 7)
|
- | - | 3,989 | |||||||||
Total costs and expenses
|
1,202,243 | 1,137,023 | 1,063,891 | |||||||||
Income from operations
|
153,727 | 143,522 | 126,345 | |||||||||
Interest expense
|
(13,888 | ) | (11,959 | ) | (11,599 | ) | ||||||
Other income--net (Note 11)
|
717 | 2,268 | 5,874 | |||||||||
Income before income taxes
|
140,556 | 133,831 | 120,620 | |||||||||
Income taxes (Note 12)
|
(54,577 | ) | (52,000 | ) | (46,583 | ) | ||||||
Income from continuing operations
|
85,979 | 81,831 | 74,037 | |||||||||
Discontinued Operations, Net of Income Taxes (Note 9)
|
- | - | (253 | ) | ||||||||
Net Income
|
$ | 85,979 | $ | 81,831 | $ | 73,784 | ||||||
Earnings Per Share (Note 16)
|
||||||||||||
Income from continuing operations
|
$ | 4.19 | $ | 3.62 | $ | 3.30 | ||||||
Net Income
|
$ | 4.19 | $ | 3.62 | $ | 3.29 | ||||||
Average number of shares outstanding
|
20,523 | 22,587 | 22,451 | |||||||||
Diluted Earnings Per Share (Note 16)
|
||||||||||||
Income from continuing operations
|
$ | 4.10 | $ | 3.55 | $ | 3.26 | ||||||
Net Income
|
$ | 4.10 | $ | 3.55 | $ | 3.24 | ||||||
Average number of shares outstanding
|
20,945 | 23,031 | 22,742 | |||||||||
The Notes to Consolidated Financial Statements are integral parts of this statement.
|
CONSOLIDATED BALANCE SHEET
|
||||||||
Chemed Corporation and Subsidiary Companies
|
||||||||
(in thousands, except shares and per share data)
|
||||||||
December 31,
|
2011
|
2010
|
||||||
Assets
|
||||||||
Current assets
|
||||||||
Cash and cash equivalents (Note 10)
|
$ | 38,081 | $ | 49,917 | ||||
Accounts receivable less allowances of $11,524 (2010 - $13,332)
|
77,924 | 112,999 | ||||||
Inventories
|
8,668 | 7,728 | ||||||
Current deferred income taxes (Note 12)
|
12,540 | 15,098 | ||||||
Prepaid income taxes
|
2,131 | 770 | ||||||
Prepaid expenses
|
11,409 | 10,285 | ||||||
Total current assets
|
150,753 | 196,797 | ||||||
Investments of deferred compensation plans held in trust (Notes 15 and 17)
|
31,629 | 28,304 | ||||||
Properties and equipment, at cost, less accumulated depreciation (Note 13)
|
82,951 | 79,292 | ||||||
Identifiable intangible assets less accumulated amortization of $28,904 (2010 - $27,438) (Note 6)
|
58,262 | 57,858 | ||||||
Goodwill
|
460,633 | 458,343 | ||||||
Other assets
|
11,677 | 9,567 | ||||||
Total Assets
|
$ | 795,905 | $ | 830,161 | ||||
Liabilities
|
||||||||
Current liabilities
|
||||||||
Accounts payable
|
$ | 48,225 | $ | 55,829 | ||||
Income taxes (Note 12)
|
90 | 1,161 | ||||||
Accrued insurance
|
37,147 | 36,492 | ||||||
Accrued compensation
|
41,087 | 39,719 | ||||||
Other current liabilities
|
18,851 | 16,141 | ||||||
Total current liabilities
|
145,400 | 149,342 | ||||||
Deferred income taxes (Note 12)
|
29,463 | 25,085 | ||||||
Long-term debt (Note 3)
|
166,784 | 159,208 | ||||||
Deferred compensation liabilities (Note 15)
|
30,693 | 27,851 | ||||||
Other liabilities
|
9,881 | 6,626 | ||||||
Total Liabilities
|
382,221 | 368,112 | ||||||
Commitments and contingencies (Notes 14 and 19)
|
||||||||
Stockholders' Equity
|
||||||||
Capital stock - authorized 80,000,000 shares $1 par; issued 30,936,925 shares
|
||||||||
(2010 - 30,381,863 shares)
|
30,937 | 30,382 | ||||||
Paid-in capital
|
398,094 | 365,007 | ||||||
Retained earnings
|
546,757 | 473,316 | ||||||
Treasury stock - 11,880,051 shares (2010 - 9,103,185 shares), at cost
|
(564,091 | ) | (408,615 | ) | ||||
Deferred compensation payable in Company stock (Note 15)
|
1,987 | 1,959 | ||||||
Total Stockholders' Equity
|
413,684 | 462,049 | ||||||
Total Liabilities and Stockholders' Equity
|
$ | 795,905 | $ | 830,161 | ||||
The Notes to Consolidated Financial Statements are integral parts of this statement.
|
CONSOLIDATED STATEMENT OF CASH FLOWS
|
||||||||||||
Chemed Corporation and Subsidiary Companies
|
||||||||||||
(in thousands)
|
||||||||||||
For the Years Ended December 31,
|
2011
|
2010
|
2009
|
|||||||||
Cash Flows from Operating Activities
|
||||||||||||
Net income
|
$ | 85,979 | $ | 81,831 | $ | 73,784 | ||||||
Adjustments to reconcile net income to net cash provided by operations:
|
||||||||||||
Depreciation and amortization
|
29,499 | 29,043 | 27,902 | |||||||||
Provision for uncollectible accounts receivable
|
8,563 | 9,078 | 10,833 | |||||||||
Stock option expense
|
8,376 | 7,762 | 8,639 | |||||||||
Amortization of discount on covertible notes
|
7,576 | 7,081 | 6,617 | |||||||||
Provision for deferred income taxes (Note 12)
|
7,242 | (2,409 | ) | 4,979 | ||||||||
Noncash portion of long-term incentive compensation
|
2,595 | 4,161 | 4,385 | |||||||||
Amortization of debt issuance costs
|
1,137 | 654 | 632 | |||||||||
Discontinued operations (Note 9)
|
- | - | 253 | |||||||||
Changes in operating assets and liabilities, excluding amounts acquired in business combinations:
|
||||||||||||
Decrease/(increase) in accounts receivable
|
26,896 | (68,656 | ) | 33,754 | ||||||||
Decrease/(increase) in inventories
|
(940 | ) | (151 | ) | 29 | |||||||
Decrease/(increase) in prepaid expenses
|
(1,124 | ) | 332 | (455 | ) | |||||||
Increase/(decrease) in accounts payable and other current liabilities
|
(1,397 | ) | 13,810 | (8,109 | ) | |||||||
Increase in income taxes
|
2,708 | 4,825 | 623 | |||||||||
Increase in other assets
|
(4,009 | ) | (4,398 | ) | (1,678 | ) | ||||||
Increase in other liabilities
|
4,548 | 5,999 | 272 | |||||||||
Excess tax benefit on share-based compensation
|
(3,854 | ) | (3,357 | ) | (1,955 | ) | ||||||
Other sources
|
548 | 407 | 327 | |||||||||
Net cash provided by operating activities
|
174,343 | 86,012 | 160,832 | |||||||||
Cash Flows from Investing Activities
|
||||||||||||
Capital expenditures
|
(29,592 | ) | (25,639 | ) | (21,496 | ) | ||||||
Business combinations, net of cash acquired (Note 8)
|
(3,664 | ) | (9,469 | ) | (1,919 | ) | ||||||
Other uses
|
(858 | ) | (592 | ) | 573 | |||||||
Net cash used by investing activities
|
(34,114 | ) | (35,700 | ) | (22,842 | ) | ||||||
Cash Flows from Financing Activities
|
||||||||||||
Purchases of treasury stock (Note 21)
|
(147,886 | ) | (109,330 | ) | (4,225 | ) | ||||||
Dividends paid
|
(12,538 | ) | (11,881 | ) | (8,157 | ) | ||||||
Proceeds from exercise of stock options (Note 4)
|
8,036 | 5,327 | 545 | |||||||||
Excess tax benefit on share-based compensation
|
3,854 | 3,357 | 1,955 | |||||||||
Debt issuance costs
|
(2,657 | ) | - | - | ||||||||
Increase/(decrease) in cash overdraft payable
|
(826 | ) | (581 | ) | 2,891 | |||||||
Repayment of long-term debt (Note 3)
|
- | - | (14,669 | ) | ||||||||
Net change in revolving line of credit
|
- | - | (8,200 | ) | ||||||||
Other sources/(uses)
|
(48 | ) | 297 | 658 | ||||||||
Net cash used by financing activities
|
(152,065 | ) | (112,811 | ) | (29,202 | ) | ||||||
Increase/(decrease) in cash and cash equivalents
|
(11,836 | ) | (62,499 | ) | 108,788 | |||||||
Cash and cash equivalents at beginning of year
|
49,917 | 112,416 | 3,628 | |||||||||
Cash and cash equivalents at end of year
|
$ | 38,081 | $ | 49,917 | $ | 112,416 | ||||||
The Notes to Consolidated Financial Statements are integral parts of this statement.
|
CONSOLIDATED STATEMENT OF CHANGES
|
||||||||||||||||||||||||
IN STOCKHOLDERS' EQUITY
|
||||||||||||||||||||||||
Chemed Corporation and Subsidiary Companies
|
||||||||||||||||||||||||
(in thousands, except per share data)
|
Deferred
|
|||||||||||||||||||||||
Compensation | ||||||||||||||||||||||||
Treasury
|
Payable in
|
|||||||||||||||||||||||
Capital
|
Paid-in
|
Retained
|
Stock-
|
Company
|
||||||||||||||||||||
Stock
|
Capital
|
Earnings
|
at Cost
|
Stock
|
Total
|
|||||||||||||||||||
Balance at December 31, 2008
|
$ | 29,515 | $ | 313,516 | $ | 337,739 | $ | (285,977 | ) | $ | 2,038 | $ | 396,831 | |||||||||||
Net income
|
- | - | 73,784 | - | - | 73,784 | ||||||||||||||||||
Dividends paid ($.36 per share)
|
- | - | (8,157 | ) | - | - | (8,157 | ) | ||||||||||||||||
Stock awards and exercise of stock options (Note 4)
|
376 | 21,741 | - | (7,305 | ) | - | 14,812 | |||||||||||||||||
Purchases of treasury stock (Note 21)
|
- | - | - | (742 | ) | - | (742 | ) | ||||||||||||||||
Other
|
- | 633 | - | 83 | (82 | ) | 634 | |||||||||||||||||
Balance at December 31, 2009
|
29,891 | 335,890 | 403,366 | (293,941 | ) | 1,956 | 477,162 | |||||||||||||||||
Net income
|
- | - | 81,831 | - | - | 81,831 | ||||||||||||||||||
Dividends paid ($.52 per share)
|
- | - | (11,881 | ) | - | - | (11,881 | ) | ||||||||||||||||
Stock awards and exercise of stock options (Note 4)
|
491 | 28,541 | - | (10,615 | ) | - | 18,417 | |||||||||||||||||
Purchases of treasury stock (Note 21)
|
- | - | - | (104,139 | ) | - | (104,139 | ) | ||||||||||||||||
Other
|
- | 576 | - | 80 | 3 | 659 | ||||||||||||||||||
Balance at December 31, 2010
|
30,382 | 365,007 | 473,316 | (408,615 | ) | 1,959 | 462,049 | |||||||||||||||||
Net income
|
- | - | 85,979 | - | - | 85,979 | ||||||||||||||||||
Dividends paid ($.60 per share)
|
- | - | (12,538 | ) | - | - | (12,538 | ) | ||||||||||||||||
Stock awards and exercise of stock options (Note 4)
|
555 | 33,218 | - | (11,576 | ) | - | 22,197 | |||||||||||||||||
Purchases of treasury stock (Note 21)
|
- | - | - | (143,970 | ) | - | (143,970 | ) | ||||||||||||||||
Other
|
- | (131 | ) | - | 70 | 28 | (33 | ) | ||||||||||||||||
Balance at December 31, 2011
|
$ | 30,937 | $ | 398,094 | $ | 546,757 | $ | (564,091 | ) | $ | 1,987 | $ | 413,684 | |||||||||||
The Notes to Consolidated Financial Statements are integral parts of this statement.
|
CONCENTRATION OF RISK
|
Buildings and building improvements
|
10.1
|
yrs.
|
|
Transportation equipment
|
14.4
|
||
Machinery and equipment
|
5.6
|
||
Computer software
|
5.0
|
||
Furniture and fixtures
|
4.7
|
Covenants not to compete
|
6.4
|
yrs.
|
|
Reacquired franchise rights
|
6.7
|
||
Referral networks
|
10.0
|
||
Customer lists
|
13.3
|
|
INSURANCE ACCRUALS
|
2.
|
Hospice Revenue Recognition
|
Medicare
|
Medicaid
|
Commercial
|
Other
|
Total
|
||||||||||||||||
Beginning Balance January 1, 2010
|
$ | 6,268 | $ | 2,535 | $ | 1,630 | $ | 505 | $ | 10,938 | ||||||||||
Bad debt provision
|
2,918 | 2,922 | 1,745 | 314 | 7,899 | |||||||||||||||
Write-offs
|
(2,218 | ) | (2,653 | ) | (2,152 | ) | (436 | ) | (7,459 | ) | ||||||||||
Other/Contractual adjustments
|
- | - | - | 423 | 423 | |||||||||||||||
Ending Balance December 31, 2010
|
6,968 | 2,804 | 1,223 | 806 | 11,801 | |||||||||||||||
Bad debt provision
|
315 | 4,323 | 2,245 | 172 | 7,055 | |||||||||||||||
Write-offs
|
(2,368 | ) | (4,030 | ) | (1,915 | ) | (1,282 | ) | (9,595 | ) | ||||||||||
Other/Contractual adjustments
|
2 | - | 16 | 724 | 742 | |||||||||||||||
Ending Balance December 31, 2011
|
$ | 4,917 | $ | 3,097 | $ | 1,569 | $ | 420 | $ | 10,003 |
2011
|
2010
|
|||||||
Beginning Balance January 1,
|
$ | 1,371 | $ | 1,981 | ||||
Expense - 2012 measurement period
|
2,578 | - | ||||||
Reversal - 2011 measurement period
|
(786 | ) | - | |||||
Expense - 2011 measurement period
|
- | 1,110 | ||||||
Reversal - 2010 measurement period
|
- | (1,720 | ) | |||||
Other
|
(198 | ) | - | |||||
Ending Balance December 31,
|
$ | 2,965 | $ | 1,371 |
December 31,
|
||||||||
2011
|
2010
|
|||||||
Principal amount of convertible debentures
|
$ | 186,956 | $ | 186,956 | ||||
Unamortized debt discount
|
(20,172 | ) | (27,748 | ) | ||||
Carrying amount of convertible debentures
|
$ | 166,784 | $ | 159,208 | ||||
Additional paid in capital (net of tax)
|
$ | 31,310 | $ | 31,310 |
December 31,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
Cash interest expense
|
$ | 5,175 | $ | 4,224 | $ | 4,350 | ||||||
Non-cash amortization of debt discount
|
7,576 | 7,081 | 6,617 | |||||||||
Amortization of debt costs
|
1,137 | 654 | 632 | |||||||||
Total interest expense
|
$ | 13,888 | $ | 11,959 | $ | 11,599 |
2011
|
$ | 4,754 | ||
2010
|
4,113 | |||
2009
|
4,667 |
Description
|
Requirement
|
Chemed
|
||
Leverage Ratio (Consolidated Indebtedness/Consolidated Adj.
|
||||
EBITDA)
|
< 3.50 to 1.00
|
1.09 to 1.00
|
||
Fixed Charge Coverage Ratio (Consolidated Free Cash
|
||||
Flow/Consolidated Fixed Charges)
|
> 1.50 to 1.00
|
2.47 to 1.00
|
||
Annual Operating Lease Commitment
|
< $30.0 million
|
$19.8 million
|
4.
|
Stock-Based Compensation Plans
|
|
In February 2011, the CIC granted 35,713 restricted stock awards to certain key employees. These shares cliff vest in February 2015. In May 2011, the CIC granted 6,928 unrestricted shares to stock to the Company’s outside directors.
|
Stock Options
|
Stock Awards
|
|||||||||||||||||||||||
Weighted Average
|
Aggregate
|
Weighted
|
||||||||||||||||||||||
Remaining
|
Intrinsic
|
Average
|
||||||||||||||||||||||
Number of
|
Exercise
|
Contractual
|
Value
|
Number of
|
Grant-Date
|
|||||||||||||||||||
Options
|
Price
|
Life (Years)
|
(thousands)
|
Shares
|
Price
|
|||||||||||||||||||
Outstanding at January 1, 2011
|
2,586,646 | $ | 47.19 | 151,620 | $ | 48.00 | ||||||||||||||||||
Granted
|
513,100 | 65.17 | 125,741 | 64.74 | ||||||||||||||||||||
Exercised/Vested
|
(433,321 | ) | 36.22 | (58,238 | ) | 57.61 | ||||||||||||||||||
Canceled/ Forfeited
|
(27,902 | ) | 51.99 | (4,000 | ) | 44.02 | ||||||||||||||||||
Outstanding at December 31, 2011
|
2,638,523 | 52.44 | 6.6 | $ | 12,748 | 215,123 | 55.25 | |||||||||||||||||
Vested and expected to vest
|
||||||||||||||||||||||||
at December 31, 2011
|
2,630,500 | 52.45 | 6.6 | 12,724 |
n.a.
|
n.a.
|
||||||||||||||||||
Exercisable at December 31, 2011
|
1,630,660 | 49.22 | 5.5 | 11,506 |
n.a.
|
n.a.
|
2011
|
2010
|
2009
|
||||||||||
Stock price on date of issuance
|
$ | 65.17 | $ | 52.76 | $ | 44.02 | ||||||
Grant date fair value per share
|
$ | 19.08 | $ | 15.21 | $ | 14.04 | ||||||
Number of options granted
|
513,100 | 515,100 | 508,600 | |||||||||
Expected term (years)
|
4.9 | 5.1 | 5.1 | |||||||||
Risk free rate of return
|
2.35% | 2.43% | 1.74% | |||||||||
Volatility
|
32.8% | 33.5% | 35.0% | |||||||||
Dividend yield
|
1.0% | 1.5% | 0.6% | |||||||||
Forfeiture rate
|
- | 1.6% | 2.0% |
Years Ended December 31,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
Total compensation cost of stock-based compensation
|
||||||||||||
plans charged against income
|
$ | 14,237 | $ | 14,961 | $ | 15,726 | ||||||
Total income tax benefit recognized in income for stock
|
||||||||||||
based compensation plans
|
5,232 | 5,499 | 5,780 | |||||||||
Total intrinsic value of stock options exercised
|
12,925 | 10,096 | 5,079 | |||||||||
Total intrinsic value of stock awards vested during the period
|
3,757 | 8,437 | 5,604 | |||||||||
Per-share weighted averaged grant-date fair value of
|
||||||||||||
stock awards granted
|
64.74 | 57.13 | 44.54 |
Stock
|
Stock
|
|||||||
Options
|
Awards
|
|||||||
Total unrecognized compensation related to nonvested options and awards at end of year
|
$ | 9,851 | $ | 5,995 | ||||
Weighted average period over which unrecognized compensation cost of nonvested options
|
||||||||
and awards to be recognized (years)
|
1.8 | 1.8 | ||||||
Actual income tax benefit realized from options exercised during the year
|
$ | 4,764 |
n.a.
|
February 2011 Price Targets for the
|
May 2009 Price Targets for the
|
|||||||
three years ending February 18, 2014
|
three years ending February 28, 2012
|
|||||||
Price target
|
$79.00
|
$85.00
|
$90.00
|
$54.00
|
$58.00
|
$62.00
|
||
Number of shares in the pool
|
25,000
|
25,000
|
25,000
|
22,500
|
33,750
|
33,750
|
||
Shares awarded:
|
||||||||
From the pool
|
-
|
-
|
-
|
22,500
|
33,750
|
33,750
|
||
Discretionary shares
|
-
|
-
|
-
|
5,400
|
7,350
|
7,350
|
||
Total shares
|
-
|
-
|
-
|
27,900
|
41,100
|
41,100
|
||
Pretax cost of award (in thousands)
|
n.a.
|
n.a.
|
n.a.
|
$1,799
|
$2,935
|
$3,012
|
||
Date of award
|
n.a.
|
n.a.
|
n.a.
|
April 2010
|
December 2010
|
January 2011
|
Cumulative EBITDA Targets
|
|||
November 2009
|
May 2007
|
||
Beginning measurement date
|
January 1, 2010
|
January 1, 2007
|
|
Three-year EBITDA Target (in thousands)
|
$640,000
|
$465,000
|
|
Four-year EBITDA target (in thousands)
|
825,000
|
604,000
|
|
Shares in EBITDA pool
|
80,000
|
80,000
|
|
Shares awarded:
|
|||
From the pool
|
-
|
80,000
|
|
Discretionary shares
|
-
|
16,200
|
|
Total shares
|
-
|
96,200
|
|
Pretax cost of award (in thousands)
|
-
|
$5,007
|
|
Date of award
|
n.a.
|
November 2009
|
●
|
The VITAS segment provides hospice services for patients with terminal illnesses. This type of care is aimed at making the terminally ill patient’s end of life as comfortable and pain-free as possible. Hospice care is typically available to patients who have been initially certified or re-certified as terminally ill (i.e., a prognosis of six months or less) by their attending physician, if any, and the hospice physician. VITAS offers all levels of hospice care in a given market, including routine home care, inpatient care and continuous care. Over 90% of VITAS’ revenues are derived through the Medicare and Medicaid reimbursement programs.
|
●
|
The Roto-Rooter segment provides repair and maintenance services to residential and commercial accounts using the Roto-Rooter registered service marks. Such services include plumbing and sewer, drain and pipe cleaning. They are delivered through company-owned and operated territories, independent contractor-operated territories and franchised locations. This segment also manufactures and sells products and equipment used to provide such services.
|
●
|
We report corporate administrative expenses and unallocated investing and financing income and expense not directly related to either segment as “Corporate”. Corporate administrative expense includes the stewardship, accounting and reporting, legal, tax and other costs of operating a publicly held corporation. Corporate
|
|
investing and financing income and expenses include the costs and income associated with corporate debt and investment arrangements.
|
For the Years Ended December 31,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
Revenues by Type of Service
|
|
|||||||||||
VITAS
|
||||||||||||
Routine homecare
|
$ | 718,658 | $ | 666,562 | $ | 615,408 | ||||||
Continuous care
|
158,466 | 153,050 | 141,272 | |||||||||
General inpatient
|
110,742 | 105,588 | 97,356 | |||||||||
Estimated BNAF
|
- | - | 1,950 | |||||||||
Medicare cap
|
(1,594 | ) | 610 | (1,643 | ) | |||||||
Total segment
|
986,272 | 925,810 | 854,343 | |||||||||
Roto-Rooter
|
||||||||||||
Sewer and drain cleaning
|
138,932 | 135,704 | 136,503 | |||||||||
Plumbing repair and maintenance
|
177,363 | 168,625 | 151,072 | |||||||||
Independent contractors
|
26,711 | 22,943 | 21,620 | |||||||||
HVAC repair and maintenance
|
3,410 | 4,183 | 4,031 | |||||||||
Other products and services
|
23,282 | 23,280 | 22,667 | |||||||||
Total segment
|
369,698 | 354,735 | 335,893 | |||||||||
Total service revenues and sales
|
$ | 1,355,970 | $ | 1,280,545 | $ | 1,190,236 | ||||||
Aftertax Segment Earnings/(Loss)
|
||||||||||||
VITAS
|
$ | 80,358 | $ | 79,796 | $ | 71,696 | ||||||
Roto-Rooter
|
34,879 | 31,678 | 33,040 | |||||||||
Total
|
115,237 | 111,474 | 104,736 | |||||||||
Corporate
|
(29,258 | ) | (29,643 | ) | (30,699 | ) | ||||||
Discontinued operations
|
- | - | (253 | ) | ||||||||
Net income
|
$ | 85,979 | $ | 81,831 | $ | 73,784 | ||||||
Interest Income
|
||||||||||||
VITAS
|
$ | 4,293 | $ | 4,852 | $ | 4,581 | ||||||
Roto-Rooter
|
2,176 | 2,661 | 2,587 | |||||||||
Total
|
6,469 | 7,513 | 7,168 | |||||||||
Corporate
|
91 | 175 | 83 | |||||||||
Intercompany eliminations
|
(6,134 | ) | (7,244 | ) | (6,828 | ) | ||||||
Total interest income
|
$ | 426 | $ | 444 | $ | 423 | ||||||
Interest Expense
|
||||||||||||
VITAS
|
$ | 229 | $ | 131 | $ | 374 | ||||||
Roto-Rooter
|
358 | 233 | 186 | |||||||||
Total
|
587 | 364 | 560 | |||||||||
Corporate
|
13,301 | 11,595 | 11,039 | |||||||||
Total interest expense
|
$ | 13,888 | $ | 11,959 | $ | 11,599 | ||||||
Income Tax Provision
|
||||||||||||
VITAS
|
$ | 48,835 | $ | 48,601 | $ | 43,637 | ||||||
Roto-Rooter
|
21,353 | 19,547 | 20,372 | |||||||||
Total
|
70,188 | 68,148 | 64,009 | |||||||||
Corporate
|
(15,611 | ) | (16,148 | ) | (17,426 | ) | ||||||
Total income tax provision
|
$ | 54,577 | $ | 52,000 | $ | 46,583 |
For the Years Ended December 31,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
Identifiable Assets
|
||||||||||||
VITAS
|
$ | 504,677 | $ | 531,247 | $ | 476,621 | ||||||
Roto-Rooter
|
212,234 | 205,601 | 191,254 | |||||||||
Total
|
716,911 | 736,848 | 667,875 | |||||||||
Corporate
|
78,994 | 93,313 | 151,595 | |||||||||
Total identifiable assets
|
$ | 795,905 | $ | 830,161 | $ | 819,470 | ||||||
Additions to Long-Lived Assets
|
||||||||||||
VITAS
|
$ | 24,298 | $ | 17,492 | $ | 14,945 | ||||||
Roto-Rooter
|
9,426 | 18,035 | 8,067 | |||||||||
Total
|
33,724 | 35,527 | 23,012 | |||||||||
Corporate
|
72 | 18 | 448 | |||||||||
Total additions to long-lived assets
|
$ | 33,796 | $ | 35,545 | $ | 23,460 | ||||||
Depreciation and Amortization
|
||||||||||||
VITAS
|
$ | 18,480 | $ | 18,900 | $ | 17,973 | ||||||
Roto-Rooter
|
8,729 | 8,289 | 8,509 | |||||||||
Total
|
27,209 | 27,189 | 26,482 | |||||||||
Corporate
|
2,290 | 1,854 | 1,420 | |||||||||
Total depreciation and amortization
|
$ | 29,499 | $ | 29,043 | $ | 27,902 |
2012
|
$ | 1,487 | ||
2013
|
1,487 | |||
2014
|
508 | |||
2015
|
277 | |||
2016
|
242 | |||
Thereafter
|
307 |
Gross
|
Accumulated
|
Net Book
|
||||||||||
Asset
|
Amortization
|
Value
|
||||||||||
December 31, 2011
|
||||||||||||
Referral networks
|
$ | 21,729 | $ | (18,647 | ) | $ | 3,082 | |||||
Covenants not to compete
|
9,286 | (8,885 | ) | 401 | ||||||||
Customer lists
|
1,222 | (1,118 | ) | 104 | ||||||||
Reacquired franchise rights
|
974 | (254 | ) | 720 | ||||||||
Subtotal - definite-lived intangibles
|
33,211 | (28,904 | ) | 4,307 | ||||||||
VITAS trade name
|
51,300 | - | 51,300 | |||||||||
Operating licenses
|
2,655 | - | 2,655 | |||||||||
Total
|
$ | 87,166 | $ | (28,904 | ) | $ | 58,262 | |||||
December 31, 2010
|
||||||||||||
Referral networks
|
$ | 21,140 | $ | (17,427 | ) | $ | 3,713 | |||||
Covenants not to compete
|
9,211 | (8,814 | ) | 397 | ||||||||
Customer lists
|
1,223 | (1,089 | ) | 134 | ||||||||
Reacquired franchise rights
|
974 | (108 | ) | 866 | ||||||||
Subtotal - definite-lived intangibles
|
32,548 | (27,438 | ) | 5,110 | ||||||||
VITAS trade name
|
51,300 | - | 51,300 | |||||||||
Operating licenses
|
1,448 | - | 1,448 | |||||||||
Total
|
$ | 85,296 | $ | (27,438 | ) | $ | 57,858 |
7.
|
Other Operating Expenses
|
Working capital
|
$ | 382 | ||
Identifiable intangible assets
|
951 | |||
Goodwill
|
2,320 | |||
Other assets and liabilities - net
|
11 | |||
$ | 3,664 |
Working capital
|
$ | 268 | ||
Identifiable intangible assets
|
589 | |||
Goodwill
|
8,225 | |||
Other assets and liabilities - net
|
387 | |||
$ | 9,469 |
For the Years Ended December 31,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
Adjustment to accruals of operations discontinued in prior years:
|
||||||||||||
Casualty insurance costs
|
$ | - | $ | - | $ | (400 | ) | |||||
Loss before income taxes
|
- | - | (400 | ) | ||||||||
All other income taxes
|
- | - | 147 | |||||||||
Total adjustments
|
- | - | (253 | ) | ||||||||
Total discontinued operations
|
$ | - | $ | - | $ | (253 | ) | |||||
Earnings/(loss) per share
|
$ | - | $ | - | $ | (0.01 | ) | |||||
Diluted earnings/(loss) per share
|
$ | - | $ | - | $ | (0.02 | ) |
2012
|
$ | 826 | ||
2013
|
300 | |||
Thereafter
|
601 | |||
$ | 1,727 |
For the Years Ended December31,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
Market value gains on assets held in deferred
|
||||||||||||
compensation trust
|
$ | 798 | $ | 2,210 | $ | 5,802 | ||||||
Loss on disposal of property and equipment
|
(441 | ) | (425 | ) | (369 | ) | ||||||
Interest income
|
426 | 444 | 423 | |||||||||
Other - net
|
(66 | ) | 39 | 18 | ||||||||
Total other income
|
$ | 717 | $ | 2,268 | $ | 5,874 |
For the Years Ended December 31,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
Continuing Operations:
|
||||||||||||
Current
|
||||||||||||
U.S. federal
|
$ | 40,762 | $ | 46,789 | $ | 36,182 | ||||||
U.S. state and local
|
5,961 | 6,981 | 4,960 | |||||||||
Foreign
|
612 | 639 | 462 | |||||||||
Deferred
|
||||||||||||
U.S. federal, state and local
|
7,227 | (2,418 | ) | 4,980 | ||||||||
Foreign
|
15 | 9 | (1 | ) | ||||||||
Total
|
$ | 54,577 | $ | 52,000 | $ | 46,583 | ||||||
Discontinued Operations:
|
||||||||||||
Current U.S. federal
|
$ | - | $ | - | $ | (65 | ) | |||||
Current U.S. state and local
|
- | - | (5 | ) | ||||||||
Deferred U.S. federal, state and local
|
- | - | (77 | ) | ||||||||
Total
|
$ | - | $ | - | $ | (147 | ) |
December 31,
|
||||||||
2011
|
2010
|
|||||||
Accrued liabilities
|
$ | 27,687 | $ | 26,334 | ||||
Stock compensation expense
|
12,200 | 10,257 | ||||||
Allowance for uncollectible accounts receivable
|
1,905 | 2,695 | ||||||
State net operating loss carryforwards
|
1,633 | 1,379 | ||||||
Other
|
2,845 | 2,763 | ||||||
Deferred income tax assets
|
46,270 | 43,428 | ||||||
Amortization of intangible assets
|
(42,192 | ) | (40,135 | ) | ||||
Accelerated tax depreciation
|
(16,322 | ) | (10,499 | ) | ||||
Revenue recognition
|
(1,684 | ) | - | |||||
Currents assets
|
(1,315 | ) | (1,148 | ) | ||||
Other
|
(1,530 | ) | (1,397 | ) | ||||
Deferred income tax liabilities
|
(63,043 | ) | (53,179 | ) | ||||
Net deferred income tax liabilities
|
$ | (16,773 | ) | $ | (9,751 | ) |
2011
|
2010
|
2009
|
||||||||||
Balance at January 1,
|
$ | 704 | $ | 1,010 | $ | 1,202 | ||||||
Unrecognized tax benefits due to positions taken in current year
|
2,038 | 119 | 136 | |||||||||
Decrease due to settlement with taxing authorities
|
- | - | (214 | ) | ||||||||
Decrease due to expiration of statute of limitations
|
(130 | ) | (425 | ) | (93 | ) | ||||||
Other
|
- | - | (21 | ) | ||||||||
Balance at December 31,
|
$ | 2,612 | $ | 704 | $ | 1,010 |
For the Years Ended December 31,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
Income tax provision calculated using
|
||||||||||||
the statutory rate of 35%
|
$ | 49,195 | $ | 46,841 | $ | 42,217 | ||||||
State and local income taxes,
|
||||||||||||
less federal income tax effect
|
4,733 | 4,509 | 3,837 | |||||||||
Nondeductible expenses
|
1,021 | 928 | 854 | |||||||||
Impact of deferred compensation plans
|
(1 | ) | (27 | ) | (190 | ) | ||||||
Other --net
|
(371 | ) | (251 | ) | (135 | ) | ||||||
Income tax provision
|
$ | 54,577 | $ | 52,000 | $ | 46,583 | ||||||
Effective tax rate
|
38.8 | % | 38.9 | % | 38.6 | % |
2011
|
$ | 44,343 | ||
2010
|
49,532 | |||
2009
|
40,872 |
December 31,
|
||||||||
2011
|
2010
|
|||||||
Land
|
$ | 1,360 | $ | 1,360 | ||||
Buildings
|
40,424 | 32,788 | ||||||
Transportation equipment
|
19,412 | 18,837 | ||||||
Machinery and equipment
|
62,467 | 58,706 | ||||||
Computer software
|
44,805 | 47,203 | ||||||
Furniture and fixtures
|
58,317 | 51,277 | ||||||
Projects under development
|
2,875 | 1,817 | ||||||
Total properties and equipment
|
229,660 | 211,988 | ||||||
Less accumulated depreciation
|
(146,709 | ) | (132,696 | ) | ||||
Net properties and equipment
|
$ | 82,951 | $ | 79,292 |
2012
|
$ | 19,797 | |||
2013
|
14,995 | ||||
2014
|
12,030 | ||||
2015
|
9,725 | ||||
2016
|
5,155 | ||||
Thereafter
|
2,146 | ||||
Total minimum rental payments | 63,848 | ||||
Less: minimum sublease rentals
|
(69 | ) | |||
Net minimum rental payments | $ | 63,779 |
For the Years Ended December 31,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
Total rental payments
|
$ | 22,199 | $ | 21,777 | $ | 21,219 | ||||||
Less sublease rentals
|
(170 | ) | (237 | ) | (270 | ) | ||||||
Net rental expense
|
$ | 22,029 | $ | 21,540 | $ | 20,949 |
For the Years Ended December 31, | |||||||||||
2011
|
2010
|
2009
|
|||||||||
$ | 9,408 | $ | 11,444 | $ | 15,143 |
Income from Continuing Operations
|
Net Income
|
|||||||||||||||||||||||
For the Years Ended December 31,
|
Income
|
Shares
|
Earnings per Share
|
Income
|
Shares
|
Earnings per Share
|
||||||||||||||||||
2011
|
||||||||||||||||||||||||
Earnings
|
$ | 85,979 | 20,523 | $ | 4.19 | $ | 85,979 | 20,523 | $ | 4.19 | ||||||||||||||
Dilutive stock options
|
- | 335 | - | 335 | ||||||||||||||||||||
Nonvested stock awards
|
- | 87 | - | 87 | ||||||||||||||||||||
Diluted earnings
|
$ | 85,979 | 20,945 | $ | 4.10 | $ | 85,979 | 20,945 | $ | 4.10 | ||||||||||||||
2010
|
||||||||||||||||||||||||
Earnings
|
$ | 81,831 | 22,587 | $ | 3.62 | $ | 81,831 | 22,587 | $ | 3.62 | ||||||||||||||
Dilutive stock options
|
- | 348 | - | 348 | ||||||||||||||||||||
Nonvested stock awards
|
- | 96 | - | 96 | ||||||||||||||||||||
Diluted earnings
|
$ | 81,831 | 23,031 | $ | 3.55 | $ | 81,831 | 23,031 | $ | 3.55 | ||||||||||||||
2009
|
||||||||||||||||||||||||
Earnings
|
$ | 74,037 | 22,451 | $ | 3.30 | $ | 73,784 | 22,451 | $ | 3.29 | ||||||||||||||
Dilutive stock options
|
- | 229 | - | 229 | ||||||||||||||||||||
Nonvested stock awards
|
- | 62 | - | 62 | ||||||||||||||||||||
Diluted earnings
|
$ | 74,037 | 22,742 | $ | 3.26 | $ | 73,784 | 22,742 | $ | 3.24 |
|
Shares
|
Total Treasury
|
Shares Due
|
Incremental
|
||||||||||||||||||
Underlying 1.875%
|
Method
|
to the Company
|
Shares Issued by
|
|||||||||||||||||||
Share
|
Convertible
|
Warrant
|
Incremental
|
under Notes
|
the Company
|
|||||||||||||||||
Price
|
Notes
|
Shares
|
Shares (a)
|
Hedges
|
upon Conversion (b)
|
|||||||||||||||||
$ | 80.73 | 32,140 | - | 32,140 | (34,382 | ) | (2,242 | ) | ||||||||||||||
$ | 90.73 | 287,382 | - | 287,382 | (307,433 | ) | (20,051 | ) | ||||||||||||||
$ | 100.73 | 491,947 | - | 491,947 | (526,270 | ) | (34,323 | ) | ||||||||||||||
$ | 110.73 | 659,562 | 119,997 | 779,559 | (705,580 | ) | 73,979 | |||||||||||||||
$ | 120.73 | 799,411 | 318,107 | 1,117,518 | (855,187 | ) | 262,331 | |||||||||||||||
$ | 130.73 | 917,865 | 485,908 | 1,403,773 | (981,905 | ) | 421,868 | |||||||||||||||
a) Represents the number of incremental shares that must be included in the calculation of diluted shares under U.S. GAAP.
|
||||||||||||||||||||||
b) Represents the number of incremental shares to be issued by the Company upon conversion of the Notes assuming concurrent settlement
|
||||||||||||||||||||||
of the note hedges and warrants.
|
Fair Value Measure
|
||||||||||||||||
Carrying Value
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
Significant Other Observable Inputs (Level 2)
|
Significant Unobservable Inputs (Level 3)
|
|||||||||||||
Mutual fund investments of deferred compensation
plans held in trust
|
$ | 31,629 | $ | 31,629 | $ | - | $ | - | ||||||||
Long-term debt
|
166,784 | 175,755 | - | - |
For the Years Ended December 31,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
Revenues
|
$ | 26,711 | $ | 22,943 | $ | 21,620 | ||||||
Pretax profits
|
13,320 | 10,695 | 9,466 |
For the Years Ended December 31,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
Shares repurchased
|
2,602,513 | 1,648,047 | 15,900 | |||||||||
Weighted average price per share
|
$ | 55.28 | $ | 63.14 | $ | 46.65 |
23. Guarantor Subsidiaries
|
Our 1.875% Senior Convertible Notes issued on May 14, 2007, are fully and unconditionally guaranteed on an unsecured, joint and severally liable basis by our 100% owned subsidiaries. The equity method has been used with respect to the parent company's (Chemed) investment in subsidiaries. No consolidating adjustment column is presented for the condensed consolidating statement of cash flow since there were no signficant consolidating entries for the periods presented. The following condensed, consolidating financial data present the composition of the parent company, the guarantor subsidiaries and the non-guarantor subsidiaries as of December 31, 2011 and 2010, and for the years ended December 31, 2011, 2010 and 2009 (in thousands):
|
December 31, 2011
|
Guarantor
|
Non-Guarantor
|
Consolidating
|
|||||||||||||||||
|
Parent
|
Subsidiaries
|
Subsidiaries
|
Adjustments
|
Consolidated
|
|||||||||||||||
ASSETS
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 32,470 | $ | (1,422 | ) | $ | 7,033 | $ | - | $ | 38,081 | |||||||||
Accounts receivable, less allowances
|
606 | 76,816 | 502 | - | 77,924 | |||||||||||||||
Intercompany receivables
|
- | 273,413 | - | (273,413 | ) | - | ||||||||||||||
Inventories
|
- | 8,032 | 636 | - | 8,668 | |||||||||||||||
Current deferred income taxes
|
(650 | ) | 13,059 | 131 | - | 12,540 | ||||||||||||||
Prepaid income taxes
|
(114 | ) | 1,689 | 556 | - | 2,131 | ||||||||||||||
Prepaid expenses
|
503 | 10,757 | 149 | - | 11,409 | |||||||||||||||
Total current assets
|
32,815 | 382,344 | 9,007 | (273,413 | ) | 150,753 | ||||||||||||||
Investments of deferred compensation plans
|
- | - | 31,629 | - | 31,629 | |||||||||||||||
Properties and equipment, at cost, less accumulated depreciation
|
11,641 | 68,755 | 2,555 | - | 82,951 | |||||||||||||||
Identifiable intangible assets less accumulated amortization
|
- | 58,262 | - | - | 58,262 | |||||||||||||||
Goodwill
|
- | 456,183 | 4,450 | - | 460,633 | |||||||||||||||
Other assets
|
7,616 | 1,552 | 2,509 | - | 11,677 | |||||||||||||||
Investments in subsidiaries
|
793,277 | 21,148 | - | (814,425 | ) | - | ||||||||||||||
Total assets
|
$ | 845,349 | $ | 988,244 | $ | 50,150 | $ | (1,087,838 | ) | $ | 795,905 | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||||||||||||||
Accounts payable
|
$ | (683 | ) | $ | 48,490 | $ | 418 | $ | - | $ | 48,225 | |||||||||
Intercompany payables
|
269,042 | - | 4,371 | (273,413 | ) | - | ||||||||||||||
Income taxes
|
- | - | 90 | - | 90 | |||||||||||||||
Accrued insurance
|
489 | 36,658 | - | - | 37,147 | |||||||||||||||
Accrued compensation
|
3,828 | 36,655 | 604 | - | 41,087 | |||||||||||||||
Other current liabilities
|
1,719 | 15,728 | 1,404 | - | 18,851 | |||||||||||||||
Total current liabilities
|
274,395 | 137,531 | 6,887 | (273,413 | ) | 145,400 | ||||||||||||||
Deferred income taxes
|
(12,330 | ) | 51,601 | (9,808 | ) | - | 29,463 | |||||||||||||
Long-term debt
|
166,784 | - | - | - | 166,784 | |||||||||||||||
Deferred compensation liabilities
|
- | - | 30,693 | - | 30,693 | |||||||||||||||
Other liabilities
|
2,816 | 4,630 | 2,435 | - | 9,881 | |||||||||||||||
Stockholders' equity
|
413,684 | 794,482 | 19,943 | (814,425 | ) | 413,684 | ||||||||||||||
Total liabilities and stockholders' equity
|
$ | 845,349 | $ | 988,244 | $ | 50,150 | $ | (1,087,838 | ) | $ | 795,905 |
December 31, 2010
|
Guarantor
|
Non-Guarantor
|
Consolidating
|
|||||||||||||||||
|
Parent
|
Subsidiaries
|
Subsidiaries
|
Adjustments
|
Consolidated
|
|||||||||||||||
ASSETS
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 45,324 | $ | (1,571 | ) | $ | 6,164 | $ | - | $ | 49,917 | |||||||||
Accounts receivable, less allowances
|
802 | 111,716 | 481 | - | 112,999 | |||||||||||||||
Intercompany receivables
|
- | 172,426 | - | (172,426 | ) | - | ||||||||||||||
Inventories
|
- | 7,191 | 537 | - | 7,728 | |||||||||||||||
Current deferred income taxes
|
(688 | ) | 15,666 | 120 | - | 15,098 | ||||||||||||||
Prepaid income taxes
|
2,787 | (1,809 | ) | (208 | ) | - | 770 | |||||||||||||
Prepaid expenses
|
782 | 9,244 | 259 | - | 10,285 | |||||||||||||||
Total current assets
|
49,007 | 312,863 | 7,353 | (172,426 | ) | 196,797 | ||||||||||||||
Investments of deferred compensation plans
|
- | - | 28,304 | - | 28,304 | |||||||||||||||
Properties and equipment, at cost, less accumulated depreciation
|
12,513 | 64,743 | 2,036 | - | 79,292 | |||||||||||||||
Identifiable intangible assets less accumulated amortization
|
- | 57,858 | - | - | 57,858 | |||||||||||||||
Goodwill
|
- | 453,864 | 4,479 | - | 458,343 | |||||||||||||||
Other assets
|
6,049 | 1,343 | 2,175 | - | 9,567 | |||||||||||||||
Investments in subsidiaries
|
716,815 | 18,696 | - | (735,511 | ) | - | ||||||||||||||
Total assets
|
$ | 784,384 | $ | 909,367 | $ | 44,347 | $ | (907,937 | ) | $ | 830,161 | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||||||||||||||
Accounts payable
|
$ | 4,924 | $ | 50,457 | $ | 448 | $ | - | $ | 55,829 | ||||||||||
Intercompany payables
|
167,067 | - | 5,359 | (172,426 | ) | - | ||||||||||||||
Income taxes
|
(7,190 | ) | 8,745 | (394 | ) | - | 1,161 | |||||||||||||
Accrued insurance
|
906 | 35,586 | - | - | 36,492 | |||||||||||||||
Accrued compensation
|
4,235 | 35,016 | 468 | - | 39,719 | |||||||||||||||
Other current liabilities
|
1,549 | 13,447 | 1,145 | - | 16,141 | |||||||||||||||
Total current liabilities
|
171,491 | 143,251 | 7,026 | (172,426 | ) | 149,342 | ||||||||||||||
Deferred income taxes
|
(11,356 | ) | 45,168 | (8,727 | ) | - | 25,085 | |||||||||||||
Long-term debt
|
159,208 | - | - | - | 159,208 | |||||||||||||||
Deferred compensation liabilities
|
- | - | 27,851 | - | 27,851 | |||||||||||||||
Other liabilities
|
2,992 | 3,123 | 511 | - | 6,626 | |||||||||||||||
Stockholders' equity
|
462,049 | 717,825 | 17,686 | (735,511 | ) | 462,049 | ||||||||||||||
Total liabilities and stockholders' equity
|
$ | 784,384 | $ | 909,367 | $ | 44,347 | $ | (907,937 | ) | $ | 830,161 |
For the year ended December 31, 2011
|
Guarantor
|
Non-Guarantor
|
Consolidating
|
|||||||||||||||||
|
Parent
|
Subsidiaries
|
Subsidiaries
|
Adjustments
|
Consolidated
|
|||||||||||||||
Continuing Operations
|
||||||||||||||||||||
Net sales and service revenues
|
$ | - | $ | 1,328,425 | $ | 27,545 | $ | - | $ | 1,355,970 | ||||||||||
Cost of services provided and goods sold
|
- | 955,628 | 14,856 | - | 970,484 | |||||||||||||||
Selling, general and administrative expenses
|
21,895 | 172,368 | 7,997 | - | 202,260 | |||||||||||||||
Depreciation
|
945 | 23,496 | 806 | - | 25,247 | |||||||||||||||
Amortization
|
1,756 | 2,496 | - | - | 4,252 | |||||||||||||||
Total costs and expenses
|
24,596 | 1,153,988 | 23,659 | - | 1,202,243 | |||||||||||||||
Income/(loss) from operations
|
(24,596 | ) | 174,437 | 3,886 | - | 153,727 | ||||||||||||||
Interest expense
|
(13,177 | ) | (587 | ) | (124 | ) | - | (13,888 | ) | |||||||||||
Other (expense)/income - net
|
16,507 | (16,591 | ) | 801 | - | 717 | ||||||||||||||
Income/(loss) before income taxes
|
(21,266 | ) | 157,259 | 4,563 | - | 140,556 | ||||||||||||||
Income tax (provision)/benefit
|
6,564 | (59,407 | ) | (1,734 | ) | - | (54,577 | ) | ||||||||||||
Equity in net income of subsidiaries
|
100,681 | 3,001 | - | (103,682 | ) | - | ||||||||||||||
Net income
|
$ | 85,979 | $ | 100,853 | $ | 2,829 | $ | (103,682 | ) | $ | 85,979 | |||||||||
For the year ended December 31, 2010
|
Guarantor
|
Non-Guarantor
|
Consolidating
|
|||||||||||||||||
|
Parent
|
Subsidiaries
|
Subsidiaries
|
Adjustments
|
Consolidated
|
|||||||||||||||
Continuing Operations
|
||||||||||||||||||||
Net sales and service revenues
|
$ | - | $ | 1,254,856 | $ | 25,689 | $ | - | $ | 1,280,545 | ||||||||||
Cost of services provided and goods sold
|
- | 892,596 | 13,420 | - | 906,016 | |||||||||||||||
Selling, general and administrative expenses
|
23,262 | 170,223 | 8,479 | - | 201,964 | |||||||||||||||
Depreciation
|
860 | 22,732 | 794 | - | 24,386 | |||||||||||||||
Amortization
|
1,404 | 3,253 | - | - | 4,657 | |||||||||||||||
Total costs and expenses
|
25,526 | 1,088,804 | 22,693 | - | 1,137,023 | |||||||||||||||
Income/(loss) from operations
|
(25,526 | ) | 166,052 | 2,996 | - | 143,522 | ||||||||||||||
Interest expense
|
(11,596 | ) | (363 | ) | - | - | (11,959 | ) | ||||||||||||
Other (expense)/income - net
|
15,520 | (15,451 | ) | 2,199 | - | 2,268 | ||||||||||||||
Income/(loss) before income taxes
|
(21,602 | ) | 150,238 | 5,195 | - | 133,831 | ||||||||||||||
Income tax (provision)/benefit
|
6,859 | (56,905 | ) | (1,954 | ) | - | (52,000 | ) | ||||||||||||
Equity in net income of subsidiaries
|
96,574 | 3,308 | - | (99,882 | ) | - | ||||||||||||||
Net income
|
$ | 81,831 | $ | 96,641 | $ | 3,241 | $ | (99,882 | ) | $ | 81,831 | |||||||||
For the year ended December 31, 2009
|
Guarantor
|
Non-Guarantor
|
|
Consolidating
|
||||||||||||||||
|
Parent
|
Subsidiaries
|
Subsidiaries
|
Adjustments
|
Consolidated
|
|||||||||||||||
Continuing Operations
|
||||||||||||||||||||
Net sales and service revenues
|
$ | - | $ | 1,166,972 | $ | 23,264 | $ | - | $ | 1,190,236 | ||||||||||
Cost of services provided and goods sold
|
- | 822,788 | 11,786 | - | 834,574 | |||||||||||||||
Selling, general and administrative expenses
|
23,199 | 163,600 | 10,627 | - | 197,426 | |||||||||||||||
Depreciation
|
602 | 20,221 | 712 | - | 21,535 | |||||||||||||||
Amortization
|
1,222 | 5,145 | - | - | 6,367 | |||||||||||||||
Other operating expenses
|
3,989 | - | - | - | 3,989 | |||||||||||||||
Total costs and expenses
|
29,012 | 1,011,754 | 23,125 | - | 1,063,891 | |||||||||||||||
Income/(loss) from operations
|
(29,012 | ) | 155,218 | 139 | - | 126,345 | ||||||||||||||
Interest expense
|
(11,040 | ) | (565 | ) | 6 | - | (11,599 | ) | ||||||||||||
Other (expense)/income - net
|
5,428 | (5,422 | ) | 5,868 | - | 5,874 | ||||||||||||||
Income/(loss) before income taxes
|
(34,624 | ) | 149,231 | 6,013 | - | 120,620 | ||||||||||||||
Income tax (provision)/benefit
|
12,058 | (56,543 | ) | (2,098 | ) | - | (46,583 | ) | ||||||||||||
Equity in net income of subsidiaries
|
96,603 | 4,043 | - | (100,646 | ) | - | ||||||||||||||
Income from continuing operations
|
74,037 | 96,731 | 3,915 | (100,646 | ) | 74,037 | ||||||||||||||
Discontinued Operations
|
(253 | ) | - | - | - | (253 | ) | |||||||||||||
Net income
|
$ | 73,784 | $ | 96,731 | $ | 3,915 | $ | (100,646 | ) | $ | 73,784 |
For the year ended December 31, 2011
|
Guarantor | Non-Guarantor | ||||||||||||||
Parent | Subsidiaries |
|
Subsidiaries |
Consolidated
|
||||||||||||
Cash Flow from Operating Activities:
|
||||||||||||||||
Net cash provided by operating activities
|
$ | 12,444 | $ | 158,159 | $ | 3,740 | $ | 174,343 | ||||||||
Cash Flow from Investing Activities:
|
||||||||||||||||
Capital expenditures
|
(73 | ) | (28,145 | ) | (1,374 | ) | (29,592 | ) | ||||||||
Business combinations, net of cash acquired
|
- | (3,664 | ) | - | (3,664 | ) | ||||||||||
Other sources/(uses) - net
|
(191 | ) | (730 | ) | 63 | (858 | ) | |||||||||
Net cash used by investing activities
|
(264 | ) | (32,539 | ) | (1,311 | ) | (34,114 | ) | ||||||||
Cash Flow from Financing Activities:
|
||||||||||||||||
Purchases of treasury stock
|
(147,791 | ) | - | (95 | ) | (147,886 | ) | |||||||||
Dividends paid to shareholders
|
(12,538 | ) | - | - | (12,538 | ) | ||||||||||
Proceeds from exercise of stock options
|
8,036 | - | - | 8,036 | ||||||||||||
Realized excess tax benefit on share based compensation
|
3,854 | - | - | 3,854 | ||||||||||||
Debt issuance costs
|
(2,657 | ) | - | - | (2,657 | ) | ||||||||||
Change in cash overdrafts payable
|
9 | (835 | ) | - | (826 | ) | ||||||||||
Change in intercompany accounts
|
126,040 | (124,636 | ) | (1,404 | ) | - | ||||||||||
Other sources - net
|
13 | - | (61 | ) | (48 | ) | ||||||||||
Net cash provided/(used) by financing activities
|
(25,034 | ) | (125,471 | ) | (1,560 | ) | (152,065 | ) | ||||||||
Net increase/(decrease) in cash and cash equivalents
|
(12,854 | ) | 149 | 869 | (11,836 | ) | ||||||||||
Cash and cash equivalents at beginning of year
|
45,324 | (1,571 | ) | 6,164 | 49,917 | |||||||||||
Cash and cash equivalents at end of period
|
$ | 32,470 | $ | (1,422 | ) | $ | 7,033 | $ | 38,081 | |||||||
For the year ended December 31, 2010
|
Guarantor
|
|
Non-Guarantor
|
|
||||||||||||
Parent
|
Subsidiaries
|
|
Subsidiaries
|
|
Consolidated
|
|||||||||||
Cash Flow from Operating Activities:
|
||||||||||||||||
Net cash provided by operating activities
|
$ | 2,862 | $ | 81,781 | $ | 1,369 | $ | 86,012 | ||||||||
Cash Flow from Investing Activities:
|
||||||||||||||||
Capital expenditures
|
(18 | ) | (24,677 | ) | (944 | ) | (25,639 | ) | ||||||||
Business combinations, net of cash acquired
|
- | (9,469 | ) | - | (9,469 | ) | ||||||||||
Other sources/(uses) - net
|
(157 | ) | (688 | ) | 253 | (592 | ) | |||||||||
Net cash used by investing activities
|
(175 | ) | (34,834 | ) | (691 | ) | (35,700 | ) | ||||||||
Cash Flow from Financing Activities:
|
||||||||||||||||
Purchases of treasury stock
|
(109,326 | ) | - | (4 | ) | (109,330 | ) | |||||||||
Dividends paid to shareholders
|
(11,881 | ) | - | - | (11,881 | ) | ||||||||||
Proceeds from exercise of stock options
|
5,327 | - | - | 5,327 | ||||||||||||
Realized excess tax benefit on share based compensation
|
3,357 | - | - | 3,357 | ||||||||||||
Change in cash overdrafts payable
|
1,645 | (2,226 | ) | - | (581 | ) | ||||||||||
Change in intercompany accounts
|
44,135 | (45,071 | ) | 936 | - | |||||||||||
Other sources - net
|
49 | - | 248 | 297 | ||||||||||||
Net cash provided/(used) by financing activities
|
(66,694 | ) | (47,297 | ) | 1,180 | (112,811 | ) | |||||||||
Net increase/(decrease) in cash and cash equivalents
|
(64,007 | ) | (350 | ) | 1,858 | (62,499 | ) | |||||||||
Cash and cash equivalents at beginning of year
|
109,331 | (1,221 | ) | 4,306 | 112,416 | |||||||||||
Cash and cash equivalents at end of period
|
$ | 45,324 | $ | (1,571 | ) | $ | 6,164 | $ | 49,917 | |||||||
For the year ended December 31, 2009
|
Guarantor
|
Non-Guarantor
|
||||||||||||||
Parent
|
Subsidiaries
|
|
Subsidiaries
|
|
Consolidated
|
|||||||||||
Cash Flow from Operating Activities:
|
||||||||||||||||
Net cash provided by operating activities
|
$ | 950 | $ | 153,387 | $ | 6,495 | $ | 160,832 | ||||||||
Cash Flow from Investing Activities:
|
||||||||||||||||
Capital expenditures
|
(448 | ) | (20,394 | ) | (654 | ) | (21,496 | ) | ||||||||
Business combinations, net of cash acquired
|
- | (1,919 | ) | - | (1,919 | ) | ||||||||||
Other sources/(uses) - net
|
702 | (312 | ) | 183 | 573 | |||||||||||
Net cash provided/(used) by investing activities
|
254 | (22,625 | ) | (471 | ) | (22,842 | ) | |||||||||
Cash Flow from Financing Activities:
|
||||||||||||||||
Change in cash overdrafts payable
|
19 | 2,872 | - | 2,891 | ||||||||||||
Change in intercompany accounts
|
140,674 | (135,226 | ) | (5,448 | ) | - | ||||||||||
Dividends paid to shareholders
|
(8,157 | ) | - | - | (8,157 | ) | ||||||||||
Purchases of treasury stock
|
(4,225 | ) | - | - | (4,225 | ) | ||||||||||
Proceeds from exercise of stock options
|
545 | - | - | 545 | ||||||||||||
Realized excess tax benefit on share based compensation
|
1,955 | - | - | 1,955 | ||||||||||||
Net decrease in revolving line of credit
|
(8,200 | ) | - | - | (8,200 | ) | ||||||||||
Repayment of long-term debt
|
(14,500 | ) | (169 | ) | - | (14,669 | ) | |||||||||
Other sources/(uses) - net
|
(49 | ) | 338 | 369 | 658 | |||||||||||
Net cash provided/(used) by financing activities
|
108,062 | (132,185 | ) | (5,079 | ) | (29,202 | ) | |||||||||
Net increase/(decrease) in cash and cash equivalents
|
109,266 | (1,423 | ) | 945 | 108,788 | |||||||||||
Cash and cash equivalents at beginning of year
|
65 | 202 | 3,361 | 3,628 | ||||||||||||
Cash and cash equivalents at end of period
|
$ | 109,331 | $ | (1,221 | ) | $ | 4,306 | $ | 112,416 |
UNAUDITED SUMMARY OF QUARTERLY RESULTS
|
||||||||||||||||||||
Chemed Corporation and Subsidiary Companies
|
||||||||||||||||||||
(in thousands, except per share and footnote data)
|
||||||||||||||||||||
First
|
Second
|
Third
|
Fourth
|
Total
|
||||||||||||||||
For the Year Ended December 31, 2011
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Year
|
|||||||||||||||
Total service revenues and sales
|
$ | 330,918 | $ | 333,360 | $ | 341,439 | $ | 350,253 | $ | 1,355,970 | ||||||||||
Gross profit (excluding depreciation)
|
$ | 93,460 | $ | 93,763 | $ | 96,376 | $ | 101,887 | $ | 385,486 | ||||||||||
Income from operations
|
$ | 30,548 | $ | 35,842 | $ | 41,311 | $ | 46,026 | $ | 153,727 | ||||||||||
Interest expense
|
(3,244 | ) | (3,461 | ) | (3,555 | ) | (3,628 | ) | (13,888 | ) | ||||||||||
Other income/(expense)--net
|
2,102 | 714 | (1,935 | ) | (164 | ) | 717 | |||||||||||||
Income before income taxes
|
29,406 | 33,095 | 35,821 | 42,234 | 140,556 | |||||||||||||||
Income taxes
|
(11,305 | ) | (12,809 | ) | (13,934 | ) | (16,529 | ) | (54,577 | ) | ||||||||||
Net income (a)
|
$ | 18,101 | $ | 20,286 | $ | 21,887 | $ | 25,705 | $ | 85,979 | ||||||||||
Earnings Per Share (a)
|
||||||||||||||||||||
Net income
|
$ | 0.86 | $ | 0.96 | $ | 1.06 | $ | 1.34 | $ | 4.19 | ||||||||||
Average number of shares outstanding
|
21,055 | 21,155 | 20,674 | 19,237 | 20,523 | |||||||||||||||
Diluted Earnings Per Share (a)
|
||||||||||||||||||||
Net income
|
$ | 0.84 | $ | 0.94 | $ | 1.04 | $ | 1.31 | $ | 4.10 | ||||||||||
Average number of shares outstanding
|
21,568 | 21,637 | 21,055 | 19,556 | 20,945 | |||||||||||||||
(a) The following amounts are included in income during the respective quarter (in thousands):
|
First
|
Second
|
Third
|
Fourth
|
Total
|
||||||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Year
|
||||||||||||||||
Pretax (cost)/benefit:
|
||||||||||||||||||||
Stock option expense
|
$ | (1,933 | ) | $ | (2,562 | ) | $ | (2,408 | ) | $ | (1,473 | ) | $ | (8,376 | ) | |||||
Noncash impact of change in accounting for convertible debt
|
(1,790 | ) | (1,825 | ) | (1,861 | ) | (1,898 | ) | (7,374 | ) | ||||||||||
Long-term incentive compensation
|
(3,012 | ) | - | - | - | (3,012 | ) | |||||||||||||
Acquisition expenses
|
(70 | ) | (39 | ) | (2 | ) | (10 | ) | (121 | ) | ||||||||||
Expenses of class action litigation
|
(495 | ) | (186 | ) | (770 | ) | (848 | ) | (2,299 | ) | ||||||||||
Expenses incurred in connection with the Office
|
||||||||||||||||||||
of Inspector General investigation
|
(511 | ) | (486 | ) | (212 | ) | 21 | (1,188 | ) | |||||||||||
Total
|
$ | (7,811 | ) | $ | (5,098 | ) | $ | (5,253 | ) | $ | (4,208 | ) | $ | (22,370 | ) | |||||
Aftertax (cost)/benefit:
|
||||||||||||||||||||
Stock option expense
|
$ | (1,223 | ) | $ | (1,620 | ) | $ | (1,523 | ) | $ | (932 | ) | $ | (5,298 | ) | |||||
Noncash impact of change in accounting for convertible debt
|
(1,132 | ) | (1,155 | ) | (1,177 | ) | (1,200 | ) | (4,664 | ) | ||||||||||
Long-term incentive compensation
|
(1,880 | ) | - | - | - | (1,880 | ) | |||||||||||||
Acquisition expenses
|
(44 | ) | (23 | ) | (2 | ) | (6 | ) | (75 | ) | ||||||||||
Expenses of class action litigation
|
(301 | ) | (113 | ) | (467 | ) | (516 | ) | (1,397 | ) | ||||||||||
Expenses incurred in connection with the Office
|
||||||||||||||||||||
of Inspector General investigation
|
(317 | ) | (301 | ) | (131 | ) | 12 | (737 | ) | |||||||||||
Total
|
$ | (4,897 | ) | $ | (3,212 | ) | $ | (3,300 | ) | $ | (2,642 | ) | $ | (14,051 | ) |
UNAUDITED SUMMARY OF QUARTERLY RESULTS
|
||||||||||||||||||||
Chemed Corporation and Subsidiary Companies
|
||||||||||||||||||||
(in thousands, except per share and footnote data)
|
||||||||||||||||||||
First
|
Second
|
Third
|
Fourth
|
Total
|
||||||||||||||||
For the Year Ended December 31, 2010
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Year
|
|||||||||||||||
Total service revenues and sales
|
$ | 308,813 | $ | 314,995 | $ | 320,451 | $ | 336,286 | $ | 1,280,545 | ||||||||||
Gross profit (excluding depreciation)
|
$ | 89,676 | $ | 91,293 | $ | 92,536 | $ | 101,024 | $ | 374,529 | ||||||||||
Income from operations
|
$ | 34,445 | $ | 33,856 | $ | 36,755 | $ | 38,466 | $ | 143,522 | ||||||||||
Interest expense
|
(2,952 | ) | (2,999 | ) | (2,995 | ) | (3,013 | ) | (11,959 | ) | ||||||||||
Other income/(expense)--net
|
186 | 10 | 222 | 1,850 | 2,268 | |||||||||||||||
Income before income taxes
|
31,679 | 30,867 | 33,982 | 37,303 | 133,831 | |||||||||||||||
Income taxes
|
(12,321 | ) | (12,012 | ) | (12,994 | ) | (14,673 | ) | (52,000 | ) | ||||||||||
Net income (a)
|
$ | 19,358 | $ | 18,855 | $ | 20,988 | $ | 22,630 | $ | 81,831 | ||||||||||
Earnings Per Share (a)
|
||||||||||||||||||||
Net income
|
$ | 0.86 | $ | 0.83 | $ | 0.93 | $ | 1.00 | $ | 3.62 | ||||||||||
Average number of shares outstanding
|
22,593 | 22,644 | 22,597 | 22,534 | 22,587 | |||||||||||||||
Diluted Earnings Per Share (a)
|
||||||||||||||||||||
Net income
|
$ | 0.84 | $ | 0.82 | $ | 0.91 | $ | 0.98 | $ | 3.55 | ||||||||||
Average number of shares outstanding
|
23,021 | 23,080 | 22,996 | 23,070 | 23,031 | |||||||||||||||
(a) The following amounts are included in income during the respective quarter (in thousands):
|
||||||||||||||||||||
First
|
Second
|
Third
|
Fourth
|
Total
|
||||||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Year
|
||||||||||||||||
Pretax (cost)/benefit:
|
||||||||||||||||||||
Stock option expense
|
$ | (2,051 | ) | $ | (2,346 | ) | $ | (1,968 | ) | $ | (1,397 | ) | $ | (7,762 | ) | |||||
Noncash impact of change in accounting for convertible debt
|
(1,655 | ) | (1,688 | ) | (1,721 | ) | (1,756 | ) | (6,820 | ) | ||||||||||
Long-term incentive compensation
|
- | (1,799 | ) | - | (2,935 | ) | (4,734 | ) | ||||||||||||
Acquisition expenses
|
- | - | - | (324 | ) | (324 | ) | |||||||||||||
Expenses of class action litigation
|
- | (105 | ) | (322 | ) | (1,426 | ) | (1,853 | ) | |||||||||||
Expenses incurred in connection with the Office
|
||||||||||||||||||||
of Inspector General investigation
|
(160 | ) | (118 | ) | (112 | ) | (622 | ) | (1,012 | ) | ||||||||||
Total
|
$ | (3,866 | ) | $ | (6,056 | ) | $ | (4,123 | ) | $ | (8,460 | ) | $ | (22,505 | ) | |||||
Aftertax (cost)/benefit:
|
||||||||||||||||||||
Stock option expense
|
$ | (1,298 | ) | $ | (1,484 | ) | $ | (1,244 | ) | $ | (883 | ) | $ | (4,909 | ) | |||||
Noncash impact of change in accounting for convertible debt
|
(1,047 | ) | (1,068 | ) | (1,088 | ) | (1,110 | ) | (4,313 | ) | ||||||||||
Long-term incentive compensation
|
- | (1,124 | ) | - | (1,833 | ) | (2,957 | ) | ||||||||||||
Acquisition expenses
|
- | - | - | (198 | ) | (198 | ) | |||||||||||||
Expenses of class action litigation
|
- | (63 | ) | (194 | ) | (869 | ) | (1,126 | ) | |||||||||||
Expenses incurred in connection with the Office
|
||||||||||||||||||||
of Inspector General investigation
|
(99 | ) | (74 | ) | (69 | ) | (385 | ) | (627 | ) | ||||||||||
Total
|
$ | (2,444 | ) | $ | (3,813 | ) | $ | (2,595 | ) | $ | (5,278 | ) | $ | (14,130 | ) |
SELECTED FINANCIAL DATA
|
||||||||||||||||||||
Chemed Corporation and Subsidiary Companies
|
||||||||||||||||||||
(in thousands, except per share and footnote data, ratios, percentages and personnel)
|
||||||||||||||||||||
2011
|
2010
|
2009
|
2008
|
2007
|
||||||||||||||||
Summary of Operations
|
||||||||||||||||||||
Continuing operations (a)
|
||||||||||||||||||||
Service revenues and sales
|
$ | 1,355,970 | $ | 1,280,545 | $ | 1,190,236 | $ | 1,148,941 | $ | 1,100,058 | ||||||||||
Gross profit (excluding depreciation)
|
385,486 | 374,529 | 355,662 | 338,394 | 332,992 | |||||||||||||||
Depreciation
|
25,247 | 24,386 | 21,535 | 21,581 | 20,118 | |||||||||||||||
Amortization
|
4,252 | 4,657 | 6,367 | 5,924 | 5,270 | |||||||||||||||
Income from operations
|
153,727 | 143,522 | 126,345 | 132,857 | 122,755 | |||||||||||||||
Income from continuing operations (b)
|
85,979 | 81,831 | 74,037 | 68,369 | 60,440 | |||||||||||||||
Net income (b)
|
85,979 | 81,831 | 73,784 | 67,281 | 61,641 | |||||||||||||||
Earnings per share
|
||||||||||||||||||||
Income from continuing operations
|
$ | 4.19 | $ | 3.62 | $ | 3.30 | $ | 2.97 | $ | 2.46 | ||||||||||
Net income
|
4.19 | 3.62 | 3.29 | 2.92 | 2.51 | |||||||||||||||
Average number of shares outstanding
|
20,523 | 22,587 | 22,451 | 23,058 | 24,520 | |||||||||||||||
Diluted earnings per share
|
||||||||||||||||||||
Income from continuing operations
|
$ | 4.10 | $ | 3.55 | $ | 3.26 | $ | 2.93 | $ | 2.41 | ||||||||||
Net income
|
4.10 | 3.55 | 3.24 | 2.88 | 2.46 | |||||||||||||||
Average number of shares outstanding
|
20,945 | 23,031 | 22,742 | 23,374 | 25,077 | |||||||||||||||
Cash dividends per share
|
$ | 0.60 | $ | 0.52 | $ | 0.36 | $ | 0.24 | $ | 0.24 | ||||||||||
Financial Position--Year-End
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 38,081 | $ | 49,917 | $ | 112,416 | $ | 3,628 | $ | 4,988 | ||||||||||
Working capital/(deficit)
|
5,353 | 47,455 | 62,174 | (18,142 | ) | (13,427 | ) | |||||||||||||
Current ratio
|
1.04 | 1.32 | 1.46 | 0.88 | 0.91 | |||||||||||||||
Properties and equipment, at cost less
|
||||||||||||||||||||
accumulated depreciation
|
$ | 82,951 | $ | 79,292 | $ | 75,358 | $ | 76,962 | $ | 74,513 | ||||||||||
Total assets
|
795,905 | 830,161 | 819,470 | 759,622 | 768,945 | |||||||||||||||
Long-term debt
|
166,784 | 159,208 | 152,127 | 158,210 | 163,715 | |||||||||||||||
Stockholders' equity
|
413,684 | 462,049 | 477,162 | 396,831 | 395,800 | |||||||||||||||
Other Statistics--Continuing Operations
|
||||||||||||||||||||
Capital expenditures
|
$ | 29,592 | $ | 25,639 | $ | 21,496 | $ | 26,094 | $ | 26,640 | ||||||||||
Number of employees
|
13,733 | 13,058 | 12,308 | 11,884 | 11,783 | |||||||||||||||
(a) Continuing operations exclude VITAS of Arizona, discontinued in 2006, Service America, discontinued in 2004 and Patient Care discontinued in 2002
|
||||||||||||||||||||
(b) The following amounts are included in income from continuing operations during the respective year (in thousands):
|
||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
After-tax benefit/(cost):
|
||||||||||||||||||||
Stock option expense
|
$ | (5,298 | ) | $ | (4,909 | ) | $ | (5,464 | ) | $ | (4,619 | ) | $ | (2,962 | ) | |||||
Noncash impact of change in accounting for convertible debt
|
(4,664 | ) | (4,313 | ) | (3,988 | ) | (4,006 | ) | (2,335 | ) | ||||||||||
Long-term incentive compensation
|
(1,880 | ) | (2,957 | ) | (3,134 | ) | - | (4,427 | ) | |||||||||||
Costs related to litigation settlements
|
(1,397 | ) | (1,126 | ) | (534 | ) | - | (1,168 | ) | |||||||||||
Expenses incurred in connection with the Office of Inspector
|
||||||||||||||||||||
General investigation
|
(737 | ) | (627 | ) | (363 | ) | (28 | ) | (141 | ) | ||||||||||
Acquisition expense
|
(75 | ) | (198 | ) | - | - | - | |||||||||||||
Expenses associated with contested proxy solicitation
|
- | - | (2,525 | ) | - | - | ||||||||||||||
Non-taxable income on certain investments held in deferred
|
||||||||||||||||||||
compensation trusts
|
- | - | 1,211 | - | - | |||||||||||||||
Income tax impact of nondeductible losses on investments
|
||||||||||||||||||||
held in deferred compensation trusts
|
- | - | (455 | ) | (3,062 | ) | (46 | ) | ||||||||||||
Gain/(loss) on extinguishment of debt
|
- | - | - | 2,934 | (8,778 | ) | ||||||||||||||
Loss on impairment of transportation equipment
|
- | - | - | (1,714 | ) | - | ||||||||||||||
Unreserved prior-year's insurance claim
|
- | - | - | (358 | ) | - | ||||||||||||||
Income tax credits or adjustments related to prior years
|
- | - | - | 322 | - | |||||||||||||||
Gain on sale of property
|
- | - | - | - | 724 | |||||||||||||||
Other
|
- | - | - | - | 296 | |||||||||||||||
Total
|
$ | (14,051 | ) | $ | (14,130 | ) | $ | (15,252 | ) | $ | (10,531 | ) | $ | (18,837 | ) |
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
|
||||||||||||||||
UNAUDITED CONSOLIDATING STATEMENT OF INCOME
|
||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2011
|
||||||||||||||||
(in thousands)(unaudited)
|
||||||||||||||||
Chemed
|
||||||||||||||||
VITAS
|
Roto-Rooter |
|
Corporate |
|
Consolidated
|
|||||||||||
2011
|
||||||||||||||||
Service revenues and sales
|
$ | 986,272 | $ | 369,698 | $ | - | $ | 1,355,970 | ||||||||
Cost of services provided and goods sold
|
766,732 | 203,752 | - | 970,484 | ||||||||||||
Selling, general and administrative expenses
|
75,698 | 102,528 | 24,034 | 202,260 | ||||||||||||
Depreciation
|
16,583 | 8,130 | 534 | 25,247 | ||||||||||||
Amortization
|
1,897 | 599 | 1,756 | 4,252 | ||||||||||||
Total costs and expenses
|
860,910 | 315,009 | 26,324 | 1,202,243 | ||||||||||||
Income/(loss) from operations
|
125,362 | 54,689 | (26,324 | ) | 153,727 | |||||||||||
Interest expense
|
(229 | ) | (358 | ) | (13,301 | ) | (13,888 | ) | ||||||||
Intercompany interest income/(expense)
|
3,998 | 2,136 | (6,134 | ) | - | |||||||||||
Other income/(expense)—net
|
62 | (235 | ) | 890 | 717 | |||||||||||
Income/(loss) before income taxes
|
129,193 | 56,232 | (44,869 | ) | 140,556 | |||||||||||
Income taxes
|
(48,835 | ) | (21,353 | ) | 15,611 | (54,577 | ) | |||||||||
Net income/(loss)
|
$ | 80,358 | $ | 34,879 | $ | (29,258 | ) | $ | 85,979 | |||||||
(a) The following amounts are included in income from continuing operations (in thousands):
|
||||||||||||||||
Chemed
|
||||||||||||||||
VITAS
|
Roto-Rooter
|
|
Corporate
|
|
Consolidated
|
|||||||||||
Pretax benefit/(cost):
|
||||||||||||||||
Stock option expense
|
$ | - | $ | - | $ | (8,376 | ) | $ | (8,376 | ) | ||||||
Noncash impact of change in accounting for convertible debt
|
- | - | (7,374 | ) | (7,374 | ) | ||||||||||
Long-term incentive compensation
|
- | - | (3,012 | ) | (3,012 | ) | ||||||||||
Expenses of class action litigation
|
- | (2,299 | ) | - | (2,299 | ) | ||||||||||
Acquisition expense
|
(147 | ) | 26 | - | (121 | ) | ||||||||||
Expenses incurred in connection with the Office of Inspector
|
||||||||||||||||
General investigation
|
(1,188 | ) | - | - | (1,188 | ) | ||||||||||
Total
|
$ | (1,335 | ) | $ | (2,273 | ) | $ | (18,762 | ) | $ | (22,370 | ) | ||||
VITAS
|
Roto-Rooter
|
|
Corporate
|
|
Consolidated
|
|||||||||||
After-tax benefit/(cost):
|
||||||||||||||||
Stock option expense
|
$ | - | $ | - | $ | (5,298 | ) | $ | (5,298 | ) | ||||||
Noncash impact of change in accounting for convertible debt
|
- | - | (4,664 | ) | (4,664 | ) | ||||||||||
Long-term incentive compensation
|
- | - | (1,880 | ) | (1,880 | ) | ||||||||||
Expenses of class action litigation
|
- | (1,397 | ) | - | (1,397 | ) | ||||||||||
Acquisition expense
|
(91 | ) | 16 | - | (75 | ) | ||||||||||
Expenses incurred in connection with the Office of Inspector
|
||||||||||||||||
General investigation
|
(737 | ) | - | - | (737 | ) | ||||||||||
Total
|
$ | (828 | ) | $ | (1,381 | ) | $ | (11,842 | ) | $ | (14,051 | ) |
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
|
||||||||||||||||
UNAUDITED CONSOLIDATING STATEMENT OF INCOME
|
||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2010
|
||||||||||||||||
(in thousands)(unaudited)
|
||||||||||||||||
Chemed
|
||||||||||||||||
VITAS
|
Roto-Rooter
|
Corporate
|
Consolidated
|
|||||||||||||
2010
|
||||||||||||||||
Service revenues and sales
|
$ | 925,810 | $ | 354,735 | $ | - | $ | 1,280,545 | ||||||||
Cost of services provided and goods sold
|
709,094 | 196,922 | - | 906,016 | ||||||||||||
Selling, general and administrative expenses
|
73,755 | 100,731 | 27,478 | 201,964 | ||||||||||||
Depreciation
|
16,161 | 7,775 | 450 | 24,386 | ||||||||||||
Amortization
|
2,739 | 514 | 1,404 | 4,657 | ||||||||||||
Total costs and expenses
|
801,749 | 305,942 | 29,332 | 1,137,023 | ||||||||||||
Income/(loss) from operations
|
124,061 | 48,793 | (29,332 | ) | 143,522 | |||||||||||
Interest expense
|
(131 | ) | (233 | ) | (11,595 | ) | (11,959 | ) | ||||||||
Intercompany interest income/(expense)
|
4,632 | 2,612 | (7,244 | ) | - | |||||||||||
Other income/(expense)—net
|
(165 | ) | 53 | 2,380 | 2,268 | |||||||||||
Income/(loss) before income taxes
|
128,397 | 51,225 | (45,791 | ) | 133,831 | |||||||||||
Income taxes
|
(48,601 | ) | (19,547 | ) | 16,148 | (52,000 | ) | |||||||||
Net income/(loss)
|
$ | 79,796 | $ | 31,678 | $ | (29,643 | ) | $ | 81,831 | |||||||
(a) The following amounts are included in income from continuing operations (in thousands):
|
Chemed
|
||||||||||||||||
VITAS
|
Roto-Rooter
|
|
Corporate
|
|
Consolidated
|
|||||||||||
Pretax benefit/(cost):
|
||||||||||||||||
Stock option expense
|
$ | - | $ | - | $ | (7,762 | ) | $ | (7,762 | ) | ||||||
Noncash impact of change in accounting for convertible debt
|
- | - | (6,820 | ) | (6,820 | ) | ||||||||||
Long-term incentive compensation
|
- | - | (4,734 | ) | (4,734 | ) | ||||||||||
Expenses of class action litigation
|
- | (1,853 | ) | - | (1,853 | ) | ||||||||||
Acquisition expense
|
(68 | ) | (256 | ) | - | (324 | ) | |||||||||
Expenses incurred in connection with the Office of Inspector
|
||||||||||||||||
General investigation
|
(1,012 | ) | - | - | (1,012 | ) | ||||||||||
Total
|
$ | (1,080 | ) | $ | (2,109 | ) | $ | (19,316 | ) | $ | (22,505 | ) | ||||
VITAS
|
Roto-Rooter
|
Corporate
|
|
Consolidated
|
||||||||||||
After-tax benefit/(cost):
|
||||||||||||||||
Stock option expense
|
$ | - | $ | - | $ | (4,909 | ) | $ | (4,909 | ) | ||||||
Noncash impact of change in accounting for convertible debt
|
- | - | (4,313 | ) | (4,313 | ) | ||||||||||
Long-term incentive compensation
|
- | - | (2,957 | ) | (2,957 | ) | ||||||||||
Expenses of class action litigation
|
- | (1,126 | ) | - | (1,126 | ) | ||||||||||
Acquisition expense
|
(42 | ) | (156 | ) | - | (198 | ) | |||||||||
Expenses incurred in connection with the Office of Inspector
|
||||||||||||||||
General investigation
|
(627 | ) | - | - | (627 | ) | ||||||||||
Total
|
$ | (669 | ) | $ | (1,282 | ) | $ | (12,179 | ) | $ | (14,130 | ) |
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
|
||||||||||||||||
UNAUDITED CONSOLIDATING STATEMENT OF INCOME
|
||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2009
|
||||||||||||||||
(in thousands)(unaudited)
|
||||||||||||||||
Chemed
|
||||||||||||||||
VITAS
|
Roto-Rooter |
Corporate
|
|
Consolidated
|
||||||||||||
2009
|
||||||||||||||||
Service revenues and sales
|
$ | 854,343 | $ | 335,893 | $ | - | $ | 1,190,236 | ||||||||
Cost of services provided and goods sold
|
653,212 | 181,362 | - | 834,574 | ||||||||||||
Selling, general and administrative expenses
|
71,643 | 95,073 | 30,710 | 197,426 | ||||||||||||
Depreciation
|
13,269 | 8,068 | 198 | 21,535 | ||||||||||||
Amortization
|
4,704 | 441 | 1,222 | 6,367 | ||||||||||||
Other operating expenses
|
- | - | 3,989 | 3,989 | ||||||||||||
Total costs and expenses
|
742,828 | 284,944 | 36,119 | 1,063,891 | ||||||||||||
Income/(loss) from operations
|
111,515 | 50,949 | (36,119 | ) | 126,345 | |||||||||||
Interest expense
|
(374 | ) | (186 | ) | (11,039 | ) | (11,599 | ) | ||||||||
Intercompany interest income/(expense)
|
4,314 | 2,514 | (6,828 | ) | - | |||||||||||
Other income/(expense)—net
|
(122 | ) | 135 | 5,861 | 5,874 | |||||||||||
Income/(loss) before income taxes
|
115,333 | 53,412 | (48,125 | ) | 120,620 | |||||||||||
Income taxes
|
(43,637 | ) | (20,372 | ) | 17,426 | (46,583 | ) | |||||||||
Income/(loss) from continuing operations
|
71,696 | 33,040 | (30,699 | ) | 74,037 | |||||||||||
Discontinued operations
|
- | - | (253 | ) | (253 | ) | ||||||||||
Net income/(loss)
|
$ | 71,696 | $ | 33,040 | $ | (30,952 | ) | $ | 73,784 | |||||||
(a) The following amounts are included in income from continuing operations (in thousands):
|
||||||||||||||||
Chemed
|
||||||||||||||||
VITAS
|
Roto-Rooter
|
|
Corporate
|
|
Consolidated
|
|||||||||||
Pretax benefit/(cost):
|
||||||||||||||||
Stock option expense
|
$ | - | $ | - | $ | (8,639 | ) | $ | (8,639 | ) | ||||||
Noncash impact of change in accounting for convertible debt
|
- | - | (6,305 | ) | (6,305 | ) | ||||||||||
Long-term incentive compensation
|
- | - | (5,007 | ) | (5,007 | ) | ||||||||||
Expenses associated with contested proxy solicitation
|
- | - | (3,989 | ) | (3,989 | ) | ||||||||||
Non-taxable income on certain investments held in deferred
|
||||||||||||||||
compensation trusts
|
- | - | 1,211 | 1,211 | ||||||||||||
Costs related to litigation settlements
|
- | (882 | ) | - | (882 | ) | ||||||||||
Expenses incurred in connection with the Office of Inspector
|
||||||||||||||||
General investigation
|
(586 | ) | - | - | (586 | ) | ||||||||||
Total
|
$ | (586 | ) | $ | (882 | ) | $ | (22,729 | ) | $ | (24,197 | ) | ||||
VITAS
|
Roto-Rooter
|
|
Corporate
|
|
Consolidated
|
|||||||||||
After-tax benefit/(cost):
|
||||||||||||||||
Stock option expense
|
$ | - | $ | - | $ | (5,464 | ) | $ | (5,464 | ) | ||||||
Noncash impact of change in accounting for convertible debt
|
- | - | (3,988 | ) | (3,988 | ) | ||||||||||
Long-term incentive compensation
|
- | - | (3,134 | ) | (3,134 | ) | ||||||||||
Expenses associated with contested proxy solicitation
|
- | - | (2,525 | ) | (2,525 | ) | ||||||||||
Non-taxable income on certain investments held in deferred
|
||||||||||||||||
compensation trusts
|
- | - | 1,211 | 1,211 | ||||||||||||
Income tax impact of nondeductible losses on investments
|
||||||||||||||||
held in deferred compensation trusts
|
- | - | (455 | ) | (455 | ) | ||||||||||
Costs related to litigation settlements
|
- | (534 | ) | - | (534 | ) | ||||||||||
Expenses incurred in connection with the Office of Inspector
|
||||||||||||||||
General investigation
|
(363 | ) | - | - | (363 | ) | ||||||||||
Total
|
$ | (363 | ) | $ | (534 | ) | $ | (14,355 | ) | $ | (15,252 | ) |
2011
|
2010
|
2009
|
||||||||||
Consolidated service revenues and sales
|
$ | 1,355,970 | $ | 1,280,545 | $ | 1,190,236 | ||||||
Consolidated income from continuing operations
|
$ | 85,979 | $ | 81,831 | $ | 74,037 | ||||||
Diluted EPS from continuing operations
|
$ | 4.10 | $ | 3.55 | $ | 3.26 | ||||||
Adjusted EBITDA*
|
$ | 197,273 | $ | 189,395 | $ | 177,050 | ||||||
Adjusted EBITDA as a % of revenue*
|
14.5 | % | 14.8 | % | 14.9 | % |
·
|
Our continuing operations generated cash of $174.3 million;
|
·
|
We repurchased $147.9 million of our stock using cash on hand;
|
·
|
Accounts receivable decreased $26.9 million due to timing of receipts;
|
·
|
We spent $29.6 million on capital expenditures.
|
Description
|
Requirement
|
Chemed
|
||
Leverage Ratio (Consolidated Indebtedness/Consolidated Adj. EBITDA)
|
< 3.50 to 1.00
|
1.09 to 1.00
|
||
Fixed Charge Coverage Ratio (Consolidated Free Cash Flow/Consolidated Fixed Charges)
|
> 1.50 to 1.00
|
2.47 to 1.00
|
||
Annual Operating Lease Commitment
|
< $30.0 million
|
$19.8 million
|
For the Years Ended December 31,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
Net cash provided by operating activities
|
$ | 174.3 | $ | 86.0 | $ | 160.8 | ||||||
Capital expenditures
|
(29.6 | ) | (25.6 | ) | (21.5 | ) | ||||||
Operating cash after capital expenditures
|
144.7 | 60.4 | 139.3 | |||||||||
Purchase of treasury stock
|
(147.9 | ) | (109.3 | ) | (4.2 | ) | ||||||
Repayment of long-term debt
|
- | - | (22.9 | ) | ||||||||
Business combinations
|
(3.7 | ) | (9.5 | ) | (1.9 | ) | ||||||
Dividends paid
|
(12.5 | ) | (11.9 | ) | (8.2 | ) | ||||||
Proceeds from exercise of stock options
|
8.0 | 5.3 | 0.5 | |||||||||
Other--net
|
(0.4 | ) | 2.5 | 6.2 | ||||||||
(Decrease)/increase in cash and cash equivalents
|
$ | (11.8 | ) | $ | (62.5 | ) | $ | 108.8 |
Less than
|
After
|
|||||||||||||||||||
Total
|
1 year
|
1-3 Years
|
4 -5 Years
|
5 Years
|
||||||||||||||||
Long-term debt obligations (a)
|
$ | 186,956 | $ | - | $ | 186,956 | $ | - | $ | - | ||||||||||
Interest on long-term debt
|
8,763 | 3,505 | 5,258 | - | - | |||||||||||||||
Operating lease obligations
|
63,848 | 19,797 | 27,025 | 14,880 | 2,146 | |||||||||||||||
Purchase obligations (b)
|
48,225 | 48,225 | - | - | - | |||||||||||||||
Other long-term obligations (c)
|
37,261 | - | 3,284 | 3,284 | 30,693 | |||||||||||||||
Total contractual cash obligations
|
$ | 345,053 | $ | 71,527 | $ | 222,523 | $ | 18,164 | $ | 32,839 | ||||||||||
(a) Represents the face value of the obligation.
|
||||||||||||||||||||
(b) Purchase obligations primarily consist of accounts payable at December 31, 2011.
|
||||||||||||||||||||
(c) Other long-term obligations comprise largely pension and excess benefit obligations.
|
Favorable/(Unfavorable)
|
||||||||
Amount
|
Percent
|
|||||||
Service revenues and sales
|
||||||||
VITAS | $ | 60,462 | 7 | % | ||||
Roto-Rooter | 14,963 | 4 | ||||||
Total | 75,425 | 6 | ||||||
Cost of services provided and goods sold
|
(64,468 | ) | (7 | ) | ||||
Selling, general and administrative expenses
|
(296 | ) | - | |||||
Depreciation
|
(861 | ) | (4 | ) | ||||
Amortization
|
405 | 9 | ||||||
Income from operations
|
10,205 | 7 | ||||||
Interest expense
|
(1,929 | ) | (16 | ) | ||||
Other income--net
|
(1,551 | ) | (68 | ) | ||||
Income before income taxes
|
6,725 | 5 | ||||||
Income taxes
|
(2,577 | ) | (5 | ) | ||||
Income from continuing operations | $ | 4,148 | 5 |
Amount
|
Percent
|
|||||||
Routine homecare
|
$ | 52,096 | 8 | % | ||||
Continuous care
|
5,416 | 4 | ||||||
General inpatient
|
5,154 | 5 | ||||||
Medicare cap
|
(2,204 | ) | (361 | ) | ||||
Total revenues | $ | 60,462 | 7 |
Amount
|
Percent
|
|||||||
Plumbing
|
$ | 8,738 | 5 | % | ||||
Sewer and drain cleaning
|
3,228 | 2 | ||||||
Contractor operations
|
3,768 | 16 | ||||||
Other
|
(771 | ) | (3 | ) | ||||
Total revenues | $ | 14,963 | 4 |
2011
|
2010
|
|||||||
SG&A expenses before long-term incentive
|
||||||||
compensation and the impact of market gains
|
||||||||
of deferred compensation plans
|
$ | 198,449 | $ | 195,020 | ||||
Long-term incentive compensation
|
3,012 | 4,734 | ||||||
Impact of market value gains on liabilities
|
||||||||
held in deferred compensation trusts
|
799 | 2,210 | ||||||
Total SG&A expenses
|
$ | 202,260 | $ | 201,964 |
2011
|
2010
|
|||||||
Market value gains on assets held in deferred
|
||||||||
compensation trusts
|
$ | 799 | $ | 2,210 | ||||
Loss on disposal of property and equipment
|
(441 | ) | (425 | ) | ||||
Interest income
|
426 | 444 | ||||||
Other
|
(67 | ) | 39 | |||||
Total other income
|
$ | 717 | $ | 2,268 |
2011
|
2010
|
|||||||
VITAS
|
||||||||
Costs associated with the OIG investigation
|
$ | (737 | ) | $ | (627 | ) | ||
Acquisition expense
|
(91 | ) | (42 | ) | ||||
Roto-Rooter
|
||||||||
Costs related to litigation settlements
|
(1,397 | ) | (1,126 | ) | ||||
Acquisition expense
|
16 | (156 | ) | |||||
Corporate
|
||||||||
Long-term incentive compensation
|
(1,880 | ) | (2,957 | ) | ||||
Noncash impact of change in accounting of convertible debt
|
(4,664 | ) | (4,313 | ) | ||||
Stock option expense
|
(5,298 | ) | (4,909 | ) | ||||
Total
|
$ | (14,051 | ) | $ | (14,130 | ) |
Increase/(Decrease)
|
||||||||
Amount
|
Percent
|
|||||||
VITAS
|
$ | 562 | 1 | % | ||||
Roto-Rooter
|
3,201 | 10 | ||||||
Corporate
|
385 | 1 | ||||||
$ | 4,148 | 5 |
Favorable/(Unfavorable)
|
||||||||
Amount
|
Percent
|
|||||||
Service revenues and sales
|
||||||||
VITAS | $ | 71,467 | 8 | % | ||||
Roto-Rooter | 18,842 | 6 | ||||||
Total | 90,309 | 8 | ||||||
Cost of services provided and goods sold
|
(71,442 | ) | (9 | ) | ||||
Selling, general and administrative expenses
|
(4,538 | ) | (2 | ) | ||||
Depreciation
|
(2,851 | ) | (13 | ) | ||||
Amortization
|
1,710 | 27 | ||||||
Other expenses
|
3,989 | 100 | ||||||
Income from operations
|
17,177 | 14 | ||||||
Interest expense
|
(360 | ) | (3 | ) | ||||
Other income –net
|
(3,606 | ) | (61 | ) | ||||
Income before income taxes
|
13,211 | 11 | ||||||
Income taxes
|
(5,417 | ) | (12 | ) | ||||
Income from continuing operations | $ | 7,794 | 11 |
Amount
|
Percent
|
|||||||
Routine homecare
|
$ | 51,154 | 8 | % | ||||
Continuous care
|
11,778 | 8 | ||||||
General inpatient
|
8,232 | 9 | ||||||
Estimated BNAF
|
(1,950 | ) | (100 | ) | ||||
Medicare cap
|
2,253 | 137 | ||||||
Total revenues | $ | 71,467 | 8 |
Amount
|
Percent
|
|||||||
Plumbing
|
$ | 17,553 | 12 | % | ||||
Sewer and drain cleaning
|
(799 | ) | (1 | ) | ||||
Contractor operations
|
1,323 | 6 | ||||||
Other
|
765 | 3 | ||||||
Total revenues | $ | 18,842 | 6 |
2010
|
2009
|
|||||||
SG&A expenses before long-term incentive
|
||||||||
compensation and the impact of market gains
|
||||||||
of deferred compensation plans
|
$ | 195,020 | $ | 187,828 | ||||
Long-term incentive compensation
|
4,734 | 5,007 | ||||||
Impact of market value gains on liabilities
|
||||||||
held in deferred compensation trusts
|
2,210 | 4,591 | ||||||
Total SG&A expenses
|
$ | 201,964 | $ | 197,426 |
2010
|
2009
|
|||||||
Market value gains on assets held in deferred
|
||||||||
compensation trusts
|
$ | 2,210 | $ | 4,591 | ||||
Loss on disposal of property and equipment
|
(425 | ) | (369 | ) | ||||
Interest income
|
444 | 423 | ||||||
Gain on settlement of company-owned life
|
||||||||
insurance
|
- | 1,211 | ||||||
Other
|
39 | 18 | ||||||
Total other income
|
$ | 2,268 | $ | 5,874 |
2010
|
2009
|
|||||||
VITAS
|
||||||||
Costs associated with the OIG investigation
|
$ | (627 | ) | $ | (363 | ) | ||
Acquisition expense
|
(42 | ) | - | |||||
Roto-Rooter
|
||||||||
Costs related to litigation settlements
|
(1,126 | ) | (534 | ) | ||||
Acquisition expense
|
(156 | ) | - | |||||
Corporate
|
||||||||
Long-term incentive compensation
|
(2,957 | ) | (3,134 | ) | ||||
Noncash impact of change in accounting for convertible debt
|
(4,313 | ) | (3,988 | ) | ||||
Stock option expense
|
(4,909 | ) | (5,464 | ) | ||||
Expenses associated with contested proxy solicitation
|
- | (2,525 | ) | |||||
Impact of non-deductible losses and non-taxable gains on
|
||||||||
investments held in deferred compensation trusts
|
- | 756 | ||||||
Total
|
$ | (14,130 | ) | $ | (15,252 | ) |
Increase/(Decrease)
|
||||||||
Amount
|
Percent
|
|||||||
VITAS
|
$ | 8,100 | 11 | % | ||||
Roto-Rooter
|
(1,362 | ) | (4 | ) | ||||
Corporate
|
1,056 | 3 | ||||||
Discontinued operations
|
253 | 100 | ||||||
$ | 8,047 | 11 |
2011
|
2010
|
|||||||
Beginning Balance January 1,
|
$ | 1,371 | $ | 1,981 | ||||
Expense - 2012 measurement period
|
2,578 | - | ||||||
Reversal - 2011 measurement period
|
(786 | ) | - | |||||
Expense - 2011 measurement period
|
- | 1,110 | ||||||
Reversal - 2010 measurement period
|
- | (1,720 | ) | |||||
Other | (198 | ) | - | |||||
Ending Balance December 31,
|
$ | 2,965 | $ | 1,371 |
Consolidating Summary of Adjusted EBITDA
|
||||||||||||||||
Chemed Corporation and Subsidiary Companies
|
||||||||||||||||
(in thousands)
|
Chemed
|
|||||||||||||||
2011
|
VITAS
|
Roto-Rooter
|
Corporate
|
Consolidated
|
||||||||||||
Net income/(loss)
|
$ | 80,358 | $ | 34,879 | $ | (29,258 | ) | $ | 85,979 | |||||||
Add/(deduct):
|
||||||||||||||||
Interest expense
|
229 | 358 | 13,301 | 13,888 | ||||||||||||
Income taxes
|
48,835 | 21,353 | (15,611 | ) | 54,577 | |||||||||||
Depreciation
|
16,583 | 8,130 | 534 | 25,247 | ||||||||||||
Amortization
|
1,897 | 599 | 1,756 | 4,252 | ||||||||||||
EBITDA
|
147,902 | 65,319 | (29,278 | ) | 183,943 | |||||||||||
Add/(deduct):
|
||||||||||||||||
Long-term incentive compensation
|
- | - | 3,012 | 3,012 | ||||||||||||
Litigation settlement costs
|
- | 2,299 | - | 2,299 | ||||||||||||
Legal expenses of OIG investigation
|
1,188 | - | - | 1,188 | ||||||||||||
Acquisition Expense
|
147 | (26 | ) | - | 121 | |||||||||||
Stock option expense
|
- | - | 8,376 | 8,376 | ||||||||||||
Advertising cost adjustment
|
- | (1,240 | ) | - | (1,240 | ) | ||||||||||
Interest income
|
(295 | ) | (40 | ) | (91 | ) | (426 | ) | ||||||||
Intercompany interest/(expense)
|
(3,998 | ) | (2,136 | ) | 6,134 | - | ||||||||||
Adjusted EBITDA
|
$ | 144,944 | $ | 64,176 | $ | (11,847 | ) | $ | 197,273 | |||||||
Chemed
|
||||||||||||||||
2010
|
VITAS
|
Roto-Rooter
|
Corporate
|
Consolidated
|
||||||||||||
Net income/(loss)
|
$ | 79,796 | $ | 31,678 | $ | (29,643 | ) | $ | 81,831 | |||||||
Add/(deduct):
|
||||||||||||||||
Interest expense
|
131 | 233 | 11,595 | 11,959 | ||||||||||||
Income taxes
|
48,601 | 19,547 | (16,148 | ) | 52,000 | |||||||||||
Depreciation
|
16,161 | 7,775 | 450 | 24,386 | ||||||||||||
Amortization.
|
2,739 | 514 | 1,404 | 4,657 | ||||||||||||
EBITDA
|
147,428 | 59,747 | (32,342 | ) | 174,833 | |||||||||||
Add/(deduct):
|
||||||||||||||||
Long-term incentive compensation
|
- | - | 4,734 | 4,734 | ||||||||||||
Litigation settlement costs
|
- | 1,853 | - | 1,853 | ||||||||||||
Legal expenses of OIG investigation
|
1,012 | - | - | 1,012 | ||||||||||||
Acquisition Expense
|
68 | 256 | - | 324 | ||||||||||||
Stock option expense
|
- | - | 7,762 | 7,762 | ||||||||||||
Advertising cost adjustment
|
- | (679 | ) | - | (679 | ) | ||||||||||
Interest income
|
(220 | ) | (49 | ) | (175 | ) | (444 | ) | ||||||||
Intercompany interest/(expense)
|
(4,632 | ) | (2,612 | ) | 7,244 | - | ||||||||||
Adjusted EBITDA
|
$ | 143,656 | $ | 58,516 | $ | (12,777 | ) | $ | 189,395 | |||||||
Chemed
|
||||||||||||||||
2009
|
VITAS
|
Roto-Rooter
|
Corporate
|
Consolidated
|
||||||||||||
Net income/(loss)
|
$ | 71,696 | $ | 33,040 | $ | (30,952 | ) | $ | 73,784 | |||||||
Add/(deduct):
|
||||||||||||||||
Discontinued operations
|
- | - | 253 | 253 | ||||||||||||
Interest expense
|
374 | 186 | 11,039 | 11,599 | ||||||||||||
Income taxes
|
43,637 | 20,372 | (17,426 | ) | 46,583 | |||||||||||
Depreciation
|
13,269 | 8,068 | 198 | 21,535 | ||||||||||||
Amortization
|
4,704 | 441 | 1,222 | 6,367 | ||||||||||||
EBITDA
|
133,680 | 62,107 | (35,666 | ) | 160,121 | |||||||||||
Add/(deduct):
|
||||||||||||||||
Long-term incentive compensation
|
- | - | 5,007 | 5,007 | ||||||||||||
Non-taxable income from certain investments held in
|
||||||||||||||||
deferred compensation trusts
|
- | - | (1,211 | ) | (1,211 | ) | ||||||||||
Litigation settlement costs
|
- | 882 | - | 882 | ||||||||||||
Expenses associated with contested proxy solicitation
|
- | - | 3,989 | 3,989 | ||||||||||||
Legal expenses of OIG investigation
|
586 | - | - | 586 | ||||||||||||
Stock option expense
|
- | - | 8,639 | 8,639 | ||||||||||||
Advertising cost adjustment
|
- | (540 | ) | - | (540 | ) | ||||||||||
Interest income
|
(267 | ) | (73 | ) | (83 | ) | (423 | ) | ||||||||
Intercompany interest/(expense)
|
(4,314 | ) | (2,514 | ) | 6,828 | - | ||||||||||
Adjusted EBITDA
|
$ | 129,685 | $ | 59,862 | $ | (12,497 | ) | $ | 177,050 |
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
|
||||||||||||||||||||
OPERATING STATISTICS FOR VITAS SEGMENT
|
||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Three Months Ended December 31,
|
Year Ended December 31,
|
|||||||||||||||||||
OPERATING STATISTICS
|
2011
|
|
2010
|
2011
|
|
2010
|
||||||||||||||
Net revenue ($000)
|
||||||||||||||||||||
Homecare
|
$ | 188,782 | $ | 176,517 | $ | 718,658 | $ | 666,562 | ||||||||||||
Inpatient
|
27,882 | 27,344 | 110,742 | 105,588 | ||||||||||||||||
Continuous care
|
40,516 | 39,463 | 158,466 | 153,050 | ||||||||||||||||
Total before Medicare cap allowance
|
$ | 257,180 | $ | 243,324 | $ | 987,866 | $ | 925,200 | ||||||||||||
Medicare cap allowance
|
(2,620 | ) | (1,056 | ) | (1,594 | ) | 610 | |||||||||||||
Total
|
$ | 254,560 | $ | 242,268 | $ | 986,272 | $ | 925,810 | ||||||||||||
Net revenue as a percent of total
|
||||||||||||||||||||
before Medicare cap allowance
|
||||||||||||||||||||
Homecare
|
73.4 |
%
|
72.6 | % | 72.7 |
%
|
72.0 | % | ||||||||||||
Inpatient
|
10.8 | 11.2 | 11.2 | 11.4 | ||||||||||||||||
Continuous care
|
15.8 | 16.2 | 16.1 | 16.6 | ||||||||||||||||
Total before Medicare cap allowance
|
100.0 | 100.0 | 100.0 | 100.0 | ||||||||||||||||
Medicare cap allowance
|
(1.0 | ) | (0.4 | ) | (0.2 | ) | 0.1 | |||||||||||||
Total
|
99.0 |
%
|
99.6 | % | 99.8 |
%
|
100.1 | % | ||||||||||||
Average daily census (days)
|
||||||||||||||||||||
Homecare
|
9,582 | 8,851 | 9,285 | 8,476 | ||||||||||||||||
Nursing home
|
3,092 | 3,193 | 3,069 | 3,207 | ||||||||||||||||
Routine homecare
|
12,674 | 12,044 | 12,354 | 11,683 | ||||||||||||||||
Inpatient
|
443 | 436 | 449 | 434 | ||||||||||||||||
Continuous care
|
607 | 600 | 603 | 596 | ||||||||||||||||
Total
|
13,724 | 13,080 | 13,406 | 12,713 | ||||||||||||||||
Total Admissions
|
15,191 | 14,776 | 60,162 | 58,526 | ||||||||||||||||
Total Discharges
|
15,289 | 15,038 | 60,393 | 57,817 | ||||||||||||||||
Average length of stay (days)
|
79.0 | 80.8 | 78.8 | 78.1 | ||||||||||||||||
Median length of stay (days)
|
14.0 | 15.0 | 14.0 | 14.0 | ||||||||||||||||
ADC by major diagnosis
|
||||||||||||||||||||
Neurological
|
34.0 |
%
|
33.9 | % | 34.4 |
%
|
33.6 | % | ||||||||||||
Cancer
|
17.8 | 18.3 | 17.7 | 18.4 | ||||||||||||||||
Cardio
|
11.3 | 11.7 | 11.5 | 11.9 | ||||||||||||||||
Respiratory
|
6.4 | 6.6 | 6.7 | 6.6 | ||||||||||||||||
Other
|
30.5 | 29.5 | 29.7 | 29.5 | ||||||||||||||||
Total
|
100.0 |
%
|
100.0 | % | 100.0 |
%
|
100.0 | % | ||||||||||||
Admissions by major diagnosis
|
||||||||||||||||||||
Neurological
|
19.4 |
%
|
19.5 | % | 19.4 |
%
|
18.8 | % | ||||||||||||
Cancer
|
34.4 | 34.4 | 33.5 | 34.5 | ||||||||||||||||
Cardio
|
10.8 | 11.0 | 10.8 | 11.3 | ||||||||||||||||
Respiratory
|
7.6 | 7.4 | 8.3 | 8.0 | ||||||||||||||||
Other
|
27.8 | 27.7 | 28.0 | 27.4 | ||||||||||||||||
Total
|
100.0 |
%
|
100.0 | % | 100.0 |
%
|
100.0 | % | ||||||||||||
Direct patient care margins
|
||||||||||||||||||||
Routine homecare
|
53.2 |
%
|
54.0 | % | 52.3 |
%
|
52.4 | % | ||||||||||||
Inpatient
|
13.1 | 14.4 | 12.9 | 13.6 | ||||||||||||||||
Continuous care
|
19.9 | 22.6 | 20.3 | 21.4 | ||||||||||||||||
Homecare margin drivers (dollars per patient day)
|
||||||||||||||||||||
Labor costs
|
$ | 52.92 | $ | 51.97 | $ | 53.63 | $ | 52.57 | ||||||||||||
Drug costs
|
8.31 | 7.89 | 8.19 | 7.81 | ||||||||||||||||
Home medical equipment
|
6.78 | 6.55 | 6.69 | 7.12 | ||||||||||||||||
Medical supplies
|
2.79 | 2.67 | 2.80 | 2.56 | ||||||||||||||||
Inpatient margin drivers (dollars per patient day)
|
||||||||||||||||||||
Labor costs
|
$ | 320.43 | $ | 305.19 | $ | 312.78 | $ | 299.54 | ||||||||||||
Continuous care margin drivers (dollars per patient day)
|
||||||||||||||||||||
Labor costs
|
$ | 559.11 | $ | 533.32 | $ | 552.38 | $ | 531.69 | ||||||||||||
Bad debt expense as a percent of revenues
|
0.6 |
%
|
0.7 | % | 0.7 |
%
|
0.9 | % | ||||||||||||
Accounts receivable --
|
||||||||||||||||||||
Days of revenue outstanding- excluding unapplied Medicare payments
|
36.7 | 38.2 |
N.A.
|
N.A.
|
||||||||||||||||
Days of revenue outstanding- including unapplied Medicare payments
|
22.3 | 36.5 |
N.A.
|
N.A.
|
Dated: February 17, 2012 | |
/s/ Joel F. Gemunder
|
|
Joel F. Gemunder
|
Dated: February 17, 2012 | |
/s/ Patrick P. Grace
|
|
Patrick P. Grace |
Dated: February 17, 2012 | |
/s/ Thomas C. Hutton
|
|
Thomas C. Hutton |
Dated: February 17, 2012 | |
Thomas P. Rice | |
/s/ Thomas P. Rice | |
Dated: February 17, 2012 | |
/s/ Donald E. Saunders
|
|
Donald E. Saunders
|
Dated: February 17, 2012 | |
/s/ George J. Walsh III
|
|
George J. Walsh III |
Dated: February 17, 2012 | |
/s/ Frank E. Wood
|
|
Frank E. Wood
|
Dated: February 17, 2012 | |
/s/ Walter L. Krebs
|
|
Walter L. Krebs |
Dated: February 17, 2012 | |
/s/ Andrea R. Lindell
|
|
Andrea R. Lindell |
1.
|
I have reviewed this annual report on Form 10-K of Chemed Corporation (“registrant”);
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations, and cash flow of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls or procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by other within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors or persons performing the equivalent function:
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Dated: February 27, 2012
|
|
/s/ Kevin J. McNamara
|
|
Kevin J. McNamara
|
|
(President and Chief Executive Officer)
|
1.
|
I have reviewed this annual report on Form 10-K of Chemed Corporation (“registrant”);
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations, and cash flow of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls or procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by other within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors or persons performing the equivalent function:
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Dated: February 27, 2012
|
|
/s/ David P. Williams
|
|
David P. Williams
|
|
(Executive Vice President and Chief Financial Officer)
|
1.
|
I have reviewed this annual report on Form 10-K of Chemed Corporation (“registrant”);
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations, and cash flow of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls or procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by other within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors or persons performing the equivalent function:
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Dated: February 27, 2012
|
|
/s/ Arthur V. Tucker, Jr.
|
|
Arthur V. Tucker, Jr.
|
|
(Vice President and Controller)
|
|
1)
|
The Company’s Annual Report on Form 10-K for the year ending December 31, 2011 (“Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
|
2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Dated: February 27, 2012
|
|
/s/ Kevin J. McNamara
|
|
Kevin J. McNamara
|
|
(President and Chief Executive Officer)
|
|
1)
|
The Company’s Annual Report on Form 10-K for the year ending December 31, 2011 (“Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
|
2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Dated: February 27, 2012
|
|
/s/ David P. Williams
|
|
David P. Williams
|
|
(Executive Vice President and Chief Financial Officer)
|
|
1)
|
The Company’s Annual Report on Form 10-K for the year ending December 31, 2011 (“Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
|
2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Dated: February 27, 2012
|
|
/s/ Arthur V. Tucker, Jr.
|
|
Arthur V. Tucker, Jr.
|
|
(Vice President and Controller)
|
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Business Combinations (Tables)
|
12 Months Ended | |||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2011
|
||||||||||||||||||||||||||
VITAS Segment During 2011 [Member]
|
||||||||||||||||||||||||||
Business Acquisition, Purchase Price Allocation |
|
|||||||||||||||||||||||||
Roto-Rooter [Member]
|
||||||||||||||||||||||||||
Business Acquisition, Purchase Price Allocation |
|
Loans Receivable From Independent Contractors (Tables)
|
12 Months Ended | |||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2011
|
||||||||||||||||||||||||||||||||||||
Loans Receivable From Independent Contractors [Abstract] | ||||||||||||||||||||||||||||||||||||
Schedule Of Independent Contractors |
|
Hospice Revenue Recognition (Medicare Cap Liability) (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | |
---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Hospice Revenue Recognition [Abstract] | ||
Beginning Balance January 1, | $ 1,371 | $ 1,981 |
Expense - 2012 measurement period | 2,578 | |
Reversal - 2011 measurement period | (786) | |
Expense - 2011 measurement period | 1,110 | |
Reversal - 2010 measurement period | (1,720) | |
Other | (198) | |
Ending Balance December 31, | $ 2,965 | $ 1,371 |
Other Income - Net (Schedule Of Other Income - Net From Continuing Operations) (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2009
|
|
Other Income - Net [Abstract] | |||
Market value gains on assets held in deferred compensation trust | $ 798 | $ 2,210 | $ 5,802 |
Loss on disposal of property and equipment | (441) | (425) | (369) |
Interest income | 426 | 444 | 423 |
Other - net | (66) | 39 | 18 |
Total other income | $ 717 | $ 2,268 | $ 5,874 |
Earnings Per Share (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2011
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Computation Of Earnings Per Share |
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Changes In Stock Price Impact On Number Of Shares Included In Diluted Earnings Per Share And Issuable Upon Conversion Of Notes |
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Summary Of Significant Accounting Policies (Tables)
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12 Months Ended | ||||||||||||||||||||
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Dec. 31, 2011
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Summary Of Significant Accounting Policies [Abstract] | |||||||||||||||||||||
Schedule Of Weighted Average Lives Of Property And Equipment |
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Schedule Of Weighted Average Lives Of Identifiable, Definite-Lived Intangible Assets |
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Income Taxes (Narrative) (Details) (USD $)
|
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2011
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Dec. 31, 2010
|
Dec. 31, 2009
|
Dec. 31, 2008
|
Dec. 31, 2007
|
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Income Taxes [Line Items] | |||||
Deferred income tax assets included in other asset | $ 150,000 | $ 236,000 | |||
Net operating loss carryforwards | 31,000,000 | 26,000,000 | |||
Unrecognized tax benefits | 2,612,000 | 704,000 | 1,010,000 | 1,202,000 | 1,300,000 |
Accrued interest payable related to uncertain tax positions | 252,000 | 114,000 | |||
Undistributed earnings of domestic subsidiaries | 35,100,000 | ||||
Maximum [Member]
|
|||||
Income Taxes [Line Items] | |||||
Net operating losses expiration date | 2031 | ||||
Minimum [Member]
|
|||||
Income Taxes [Line Items] | |||||
Net operating losses expiration date | 2012 | ||||
Undistributed Domestic Earnings [Member]
|
|||||
Income Taxes [Line Items] | |||||
Additional taxes if interest in all businesses is sold rather than to effect a tax-free liquidation | $ 12,900,000 |
Business Combinations (Business Acquisition, Purchase Price Allocation) (Details) (USD $)
In Thousands, unless otherwise specified |
Dec. 31, 2010
|
Apr. 29, 2011
Family Comfort Hospice [Member]
|
---|---|---|
Business Acquisition [Line Items] | ||
Working capital | $ 268 | $ 382 |
Identifiable intangible assets | 589 | 951 |
Goodwill | 8,225 | 2,320 |
Other assets and liabilities - net | 387 | 11 |
Assets total | $ 9,469 | $ 3,664 |
Lease Arrangements (Schedule Of Total Rental Expense Incurred Under Operating Leases For Continuing Operations) (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2011
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Dec. 31, 2010
|
Dec. 31, 2009
|
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Lease Arrangements [Abstract] | |||
Total rental payments | $ 22,199 | $ 21,777 | $ 21,219 |
Less sublease rentals | (170) | (237) | (270) |
Net rental expense | $ 22,029 | $ 21,540 | $ 20,949 |
Long-Term Debt And Lines Of Credit (Debt Amounts Included In Consolidated Balance Sheet) (Details) (USD $)
In Thousands, unless otherwise specified |
Dec. 31, 2011
|
Dec. 31, 2010
|
---|---|---|
Long-Term Debt And Lines Of Credit [Abstract] | ||
Principal amount of convertible debentures | $ 186,956 | $ 186,956 |
Unamortized debt discount | (20,172) | (27,748) |
Carrying amount of convertible debentures | 166,784 | 159,208 |
Additional paid in capital (net of tax) | $ 31,310 | $ 31,310 |
Discontinued Operations (Schedule Of Estimated Timing Of Payments Of Liabilities) (Details) (USD $)
In Thousands, unless otherwise specified |
Dec. 31, 2011
|
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Discontinued Operations [Abstract] | |
2012 | $ 826 |
2013 | 300 |
Thereafter | 601 |
Total estimated timing of payments of liabilities related to discontinued operations | $ 1,727 |
Properties And Equipment (Schedule Of Properties And Equipment) (Details) (USD $)
In Thousands, unless otherwise specified |
Dec. 31, 2011
|
Dec. 31, 2010
|
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Properties And Equipment [Abstract] | ||
Land | $ 1,360 | $ 1,360 |
Buildings | 40,424 | 32,788 |
Transportation equipment | 19,412 | 18,837 |
Machinery and equipment | 62,467 | 58,706 |
Computer software | 44,805 | 47,203 |
Furniture and fixtures | 58,317 | 51,277 |
Projects under development | 2,875 | 1,817 |
Total properties and equipment | 229,660 | 211,988 |
Less accumulated depreciation | (146,709) | (132,696) |
Net properties and equipment | $ 82,951 | $ 79,292 |
Income Taxes (Summary Of Temporary Differences That Give Rise To Deferred Tax Assets/ (Liabilities)) (Details) (USD $)
In Thousands, unless otherwise specified |
Dec. 31, 2011
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Dec. 31, 2010
|
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Income Taxes [Abstract] | ||
Accrued liabilities | $ 27,687 | $ 26,334 |
Stock compensation expense | 12,200 | 10,257 |
Allowance for uncollectible accounts receivable | 1,905 | 2,695 |
State net operating loss carryforwards | 1,633 | 1,379 |
Other | 2,845 | 2,763 |
Deferred income tax assets | 46,270 | 43,428 |
Amortization of intangible assets | (42,192) | (40,135) |
Accelerated tax depreciation | (16,322) | (10,499) |
Revenue recognition | (1,684) | |
Currents assets | (1,315) | (1,148) |
Other | (1,530) | (1,397) |
Deferred income tax liabilities | (63,043) | (53,179) |
Net deferred income tax liabilities | $ (16,773) | $ (9,751) |
Lease Arrangements (Narrative) (Details)
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12 Months Ended |
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Dec. 31, 2011
years
|
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Maximum [Member]
|
|
Operating Leased Assets [Line Items] | |
Lease arrangements, remaining terms of leases under operating lease, years | 8 |
Minimum [Member]
|
|
Operating Leased Assets [Line Items] | |
Lease arrangements, remaining terms of leases under operating lease, years | 1 |
Cash Overdrafts And Cash Equivalents (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | |
---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
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Cash overdrafts included in accounts payable | $ 10.3 | $ 11.1 |
Cash equivalents | $ 32.5 | $ 45.5 |
Cash equivalents weighted average rate of return | 0.10% | 0.10% |
Maximum [Member]
|
||
Repurchase agreement period, days | 10 days |
Other Operating Expenses (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended |
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Dec. 31, 2009
|
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Other Operating Expenses [Abstract] | |
Pretax expenses | $ 3,989 |
Loans Receivable From Independent Contractors
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12 Months Ended | |||||||||||||||||||||||||||||||||||
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Dec. 31, 2011
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Loans Receivable From Independent Contractors [Abstract] | ||||||||||||||||||||||||||||||||||||
Loans Receivable From Independent Contractors | 18. Loans Receivable from Independent Contractors
At December 31, 2011, we had contractual arrangements with 64 independent contractors to provide plumbing repair and drain cleaning services under sublicensing agreements using the Roto-Rooter name in lesser-populated areas of the United States and Canada. The arrangements give the independent contractors the right to conduct a plumbing and drain cleaning business using the Roto-Rooter name in a specified territory in exchange for a royalty based on a percentage of labor sales, generally approximately 40%. We also pay for certain telephone directory advertising in these areas, lease certain capital equipment and provide operating manuals to serve as resources for operating a plumbing and drain cleaning business. The contracts are generally cancelable upon 90 days' written notice (without cause) or upon a few days notice (with cause). The independent contractors are responsible for running the businesses as they believe best.
Our maximum exposure to loss from arrangements with our independent contractors at December 31, 2011 is approximately $1.1 million (2010 - $1.1 million). The exposure to loss is mainly the result of loans provided to the independent contractors. In most cases, these loans are partially secured by receivables and equipment owned by the independent contractor. The interest rates on the loans range from zero to 8% per annum, and the remaining terms of the loans range from 2.5 months to 5.4 years at December 31, 2011. During the periods ended December 31, 2011, 2010 and 2009 we recorded the following from our independent contractors (in thousands):
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Guarantor Subsidiaries (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2011
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Guarantor Subsidiaries [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Guarantor Subsidiaries - Balance Sheet |
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Schedule Of Guarantor Subsidiaries - Income Statement |
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Schedule Of Guarantor Subsidiaries - Statement Of Cash Flows |
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Income Taxes (Tables)
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12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2011
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Income Taxes [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Provision For Income Taxes |
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Summary Of Temporary Differences That Give Rise To Deferred Tax Assets/ (Liabilities) |
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Schedule Of Significant Changes To Unrecognized Tax Benefits |
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Schedule Of Difference Between Actual Income Tax Provision For Continuing Operations And Income Tax Provision Calculated At Statutory U.S. Federal Tax Rate |
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Schedule Of Income Taxes Paid |
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Discontinued Operations (Schedule Of Discontinued Operations) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
12 Months Ended |
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Dec. 31, 2009
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Discontinued Operations [Abstract] | |
Casualty insurance costs | $ (400) |
Loss before income taxes | (400) |
All other income taxes | 147 |
Total adjustments | (253) |
Total discontinued operations | $ (253) |
Earnings/(loss) per share | $ (0.01) |
Diluted earnings/(loss) per share | $ (0.02) |
Related Party Transactions (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||
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Dec. 31, 2011
years
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Dec. 31, 2010
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Dec. 31, 2009
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Related Party Transactions [Line Items] | |||
Cancellation agreements, written notice period, days | 90 | ||
VITAS [Member]
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Related Party Transactions [Line Items] | |||
Renewal terms of pharmacy agreements, years | 1 | ||
Purchases from related party | $ 39.4 | $ 36.1 | $ 33.1 |
Segments And Nature Of The Business (Tables)
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Dec. 31, 2011
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Segments And Nature Of The Business [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Segment Data For Continuing Operations |
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Summary Of Significant Accounting Policies (Schedule Of Weighted Average Lives Of Property And Equipment) (Details)
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12 Months Ended |
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Dec. 31, 2011
years
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Buildings And Building Improvements [Member]
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Property, Plant and Equipment [Line Items] | |
Weighted average lives of property and equipment, years | 10.1 |
Transportation Equipment [Member]
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Property, Plant and Equipment [Line Items] | |
Weighted average lives of property and equipment, years | 14.4 |
Machinery And Equipment [Member]
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Property, Plant and Equipment [Line Items] | |
Weighted average lives of property and equipment, years | 5.6 |
Computer Software [Member]
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Property, Plant and Equipment [Line Items] | |
Weighted average lives of property and equipment, years | 5.0 |
Furniture And Fixtures [Member]
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Property, Plant and Equipment [Line Items] | |
Weighted average lives of property and equipment, years | 4.7 |
Financial Instruments (Tables)
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Dec. 31, 2011
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Financial Instruments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Value, Fair Value And Hierarchy Of Financial Instruments |
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Hospice Revenue Recognition
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Dec. 31, 2011
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Hospice Revenue Recognition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hospice Revenue Recognition |
VITAS recognizes revenue at the estimated realizable amount due from third-party payers, which are primarily Medicare and Medicaid. Payers may deny payment for services in whole or in part on the basis that such services are not eligible for coverage and do not qualify for reimbursement. We estimate denials each period and make adequate provision in the financial statements. The estimate of denials is based on historical trends and known circumstances and does not vary materially from period to period on an aggregate basis. Medicare billings are subject to certain limitations, as described below.
The allowance for doubtful accounts for VITAS comprises the following (in thousands):
VITAS is subject to certain limitations on Medicare payments for services. Specifically, if the number of inpatient care days any hospice program provides to Medicare beneficiaries exceeds 20% of the total days of hospice care such program provided to all Medicare patients for an annual period beginning September 28, the days in excess of the 20% figure may be reimbursed only at the routine homecare rate. None of VITAS' hospice programs exceeded the payment limits on inpatient services in 2011, 2010 or 2009.
VITAS is also subject to a Medicare annual per-beneficiary cap ("Medicare cap"). Compliance with the Medicare cap is measured by comparing the total Medicare payments received under a Medicare provider number with respect to services provided to all Medicare hospice care beneficiaries in the program or programs covered by that Medicare provider number between November 1 of each year and October 31 of the following year with the product of the per-beneficiary cap amount and the number of Medicare beneficiaries electing hospice care for the first time from that hospice program or programs from September 28 through September 27 of the following year.
We actively monitor each of our hospice programs, by provider number, as to their specific admission, discharge rate and median length of stay data in an attempt to determine whether revenues are likely to exceed the annual per-beneficiary Medicare cap. Should we determine that revenues for a program are likely to exceed the Medicare cap based on projected trends, we attempt to institute corrective actions, which include changes to the patient mix and increased patient admissions. However, should we project our corrective action will not prevent that program from exceeding its Medicare cap, we estimate the amount of revenue recognized during the period that will require repayment to the Federal government under the Medicare cap and record the amount as a reduction to service revenue.
During the year ended December 31, 2011, we reversed Medicare cap liability for amounts recorded in the fourth quarter of 2010 for two programs' projected 2011 measurement period liability. This reversal was partially offset by the Medicare cap liability for three programs' projected 2012 measurement period liability. For the year ended December 31, 2010, we recorded pretax charges in continuing operations for the estimated Medicare cap liability for two programs'projected liability through year end for the 2011 measurement period. The majority of the liability relates to one program which is VITAS' largest hospice. This amount was subsequently reversed during the 2011 fiscal year due to increased admission trends. Shown below is the Medicare cap liability activity for the years ended December 31, 2011 and 2010 (in thousands):
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