CINCINNATI--(BUSINESS WIRE)--April 28, 2015--Chemed Corporation (Chemed) (NYSE:CHE), which operates VITAS Healthcare Corporation (VITAS), the nation’s largest provider of end-of-life care, and Roto-Rooter, the nation’s largest commercial and residential plumbing and drain cleaning services provider, reported financial results for its first quarter ended March 31, 2015, versus the comparable prior-year period, as follows:

Net revenue for VITAS was $270 million in the first quarter of 2015, which is an increase of $9.2 million, or 3.5%, when compared to the prior-year period. This revenue increase is comprised of an average Medicare reimbursement rate increase of approximately 1.4%, a 3.5% increase in average daily census, offset by the impact of the estimated Medicare Cap billing limitation in 2015 when compared to the prior year.

In the first quarter of 2015, VITAS reversed $0.2 million in estimated Medicare Cap billing limitations. This compares to $0.8 million of Medicare Cap billing limitations reversed in the first quarter of 2014. At March 31, 2015, VITAS had 35 Medicare provider numbers, none of which has an estimated 2015 Medicare Cap billing limitation.

Of VITAS’ 35 unique Medicare provider numbers, 34 provider numbers have a Medicare Cap cushion of 10% or greater for the 2015 Medicare Cap period, and one provider number has a cap cushion between 0% and 5%. VITAS generated an aggregate cap cushion of $296 million during the trailing twelve-month period.

Average revenue per patient per day in the quarter, excluding the impact of Medicare Cap, was $201.96, which is 0.3% above the prior-year period. Routine home care reimbursement and high acuity care averaged $164.72 and $702.36, respectively. During the quarter, high acuity days of care were 6.9% of total days of care, 15 basis points less than the prior-year quarter.

The first quarter of 2015 gross margin, excluding the impact of Medicare Cap, was 21.1%, which is a 27 basis point increase when compared to the first quarter of 2014.

Selling, general and administrative expense was $22.0 million in the first quarter of 2015, which is an increase of 1.2% when compared to the prior-year quarter. Adjusted EBITDA, excluding Medicare Cap, totaled $35.8 million in the quarter, an increase of 8.2% over the prior-year period. Adjusted EBITDA margin, excluding the impact from Medicare Cap, was 13.3% in the quarter which is 53 basis points favorable to the prior-year period.

Roto-Rooter’s plumbing and drain cleaning business generated sales of $107 million for the first quarter of 2015, an increase of $9.2 million, or 9.3%, over the prior-year quarter. Water restoration accounted for the majority of this revenue growth, with water and flood remediation services increasing $8.9 million in the quarter.

Roto-Rooter’s gross margin in the quarter was 47.3%, an 88 basis point improvement when compared to the first quarter of 2014. Adjusted EBITDA in the first quarter of 2015 totaled $21.4 million, an increase of 21.3%, and the Adjusted EBITDA margin was 20.0% in the quarter, 197 basis points higher than the prior year.

As of March 31, 2015, Chemed had total cash and cash equivalents of $28 million and debt of $161 million.

In June 2014 Chemed entered into a five-year Amended and Restated Credit Agreement that consisted of a $100 million amortizable term loan and a $350 million revolving credit facility. The interest rate on this facility has a floating rate that is currently LIBOR plus 112.5 basis points. At March 31, 2015, the Company had approximately $248 million of undrawn borrowing capacity under this credit agreement.

Capital expenditures through March 31, 2015, aggregated $8.6 million and compares to depreciation and amortization during the same period of $8.6 million.

In the first quarter of 2015, Chemed’s Board of Directors authorized an additional $100 million for stock repurchase under Chemed’s existing share repurchase program. These share repurchases will be funded through a combination of cash generated from operations as well as utilization of its revolving credit facility. Chemed currently has $111.8 million of authorization under this share repurchase plan. The Company did not repurchase any Chemed stock in the first quarter of 2015.

Full-year 2015 revenue growth for VITAS, prior to Medicare Cap, is estimated to be in the range of 3% to 4%. Admissions in 2015 are estimated to increase 4% and full-year Adjusted EBITDA margin, prior to Medicare Cap, is estimated to be 14% to 15%. Medicare Cap billing limitations for calendar year 2015 are estimated to be $4.3 million.

Roto-Rooter is forecasted to achieve full-year 2015 revenue growth of 3% to 4%. This revenue estimate is based upon continued expansion in water restoration services coupled with increased job pricing of approximately 1%. Adjusted EBITDA margin for 2015 is estimated in the range of 19% to 20%.

Management estimates that full-year 2015 adjusted earnings per diluted share, which excludes non-cash expense for stock options, costs related to litigation, and other discrete items, will be in the range of $6.50 to $6.70. This compares to Chemed’s 2014 reported adjusted earnings per diluted share of $6.07.

Chemed will host a conference call and webcast at 10 a.m., ET, on Wednesday, April 29, 2015, to discuss the Company's quarterly results and to provide an update on its business. The dial-in number for the conference call is (800) 706-7745 for U.S. and Canadian participants and (617) 614-3472 for international participants. The participant passcode is 44919288. A live webcast of the call can be accessed on Chemed's website at www.chemed.com by clicking on Investor Relations Home.

A taped replay of the conference call will be available beginning approximately 24 hours after the call's conclusion. It can be accessed by dialing (888) 286-8010 for U.S. and Canadian callers and (617) 801-6888 for international callers and will be available for one week following the live call. The replay pass code is 67403472. An archived webcast will also be available at www.chemed.com.

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

Chemed operates in the residential and commercial plumbing and drain cleaning industry under the brand name Roto-Rooter. Roto-Rooter provides plumbing and drain service through company-owned branches, independent contractors and franchisees in the United States and Canada. Roto-Rooter also has licensed master franchisees in the republics of Indonesia and Singapore, and the Philippines.

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

Certain statements contained in this press release and the accompanying tables are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "hope," "anticipate," "plan" and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. Chemed does not undertake and specifically disclaims any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These statements are based on current expectations and assumptions and involve various risks and uncertainties, which could cause Chemed's actual results to differ from those expressed in such forward-looking statements.

These risks and uncertainties arise from, among other things, possible changes in regulations governing the hospice care or plumbing and drain cleaning industries; periodic changes in reimbursement levels and procedures under Medicare and Medicaid programs; difficulties predicting patient length of stay and estimating potential Medicare reimbursement obligations; challenges inherent in Chemed's growth strategy; the current shortage of qualified nurses, other healthcare professionals and licensed plumbing and drain cleaning technicians; Chemed’s dependence on patient referral sources; and other factors detailed under the caption "Description of Business by Segment" or "Risk Factors" in Chemed’s most recent report on form 10-Q or 10-K and its other filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on such forward-looking statements and there are no assurances that the matters contained in such statements will be achieved.


CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF INCOME
(in thousands, except per share data)(unaudited)


				Three Months Ended March 31,
				2015			2014
Service revenues and sales				$	376,652		$	358,300
Cost of services provided and goods sold					268,885			257,819
Selling, general and administrative expenses (aa)					58,588			55,671
Depreciation					8,032			7,149
Amortization					576			1,009
	Total costs and expenses				336,081			321,648
	Income from operations				40,571			36,652
Interest expense					(969	)		(3,815	)
Other income--net (bb)					563			816
	Income before income taxes				40,165			33,653
Income taxes					(15,628	)		(13,079	)
Net income				$	24,537		$	20,574

Earnings Per Share
	Net income			$	1.45		$	1.17
	Average number of shares outstanding				16,914			17,510

Diluted Earnings Per Share
	Net income			$	1.40		$	1.12
	Average number of shares outstanding				17,466			18,305


(aa)	Selling, general and administrative ("SG&A") expenses comprise (in thousands):
				Three Months Ended March 31,
				2015			2014
		SG&A expenses before long-term incentive compensation and the impact of market value gains related to deferred compensation plans		$	56,704		$	54,136
		Market value gains related to deferred compensation plans			950			1,162
		Long-term incentive compensation			934			373
			Total SG&A expenses	$	58,588		$	55,671

(bb)	Other income--net comprises (in thousands):
				Three Months Ended March 31,
				2015			2014
		Market value gains related to deferred compensation plans		$	950		$	1,162
		Gain/(loss) on disposal of property and equipment			48			(278	)
		Interest income			44			(50	)
		Other			(479	)		(18	)
			Total other income--net	$	563		$	816

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATED BALANCE SHEET

(in thousands, except per share data)(unaudited)

March 31,

2015

2014

Assets

Current assets

Cash and cash equivalents

28,335

39,479

Accounts receivable less allowances

145,757

116,152

Inventories

6,166

6,676

Current deferred income taxes

16,926

13,769

Prepaid income taxes

1,279

3,406

Prepaid expenses

10,023

18,930

Total current assets

208,486

198,412

Investments of deferred compensation plans held in trust

52,075

45,732

Properties and equipment, at cost less accumulated depreciation

104,796

93,575

Identifiable intangible assets less accumulated amortization

55,901

56,276

Goodwill

466,576

466,961

Other assets

7,843

7,664

Total Assets

895,677

868,620

Liabilities

Current liabilities

Accounts payable

43,618

38,599

Current portion of long-term debt

6,875

185,825

Income taxes

13,033

3,967

Accrued insurance

42,498

39,391

Accrued compensation

43,578

38,233

Accrued legal

1,115

7,154

Other current liabilities

20,853

24,682

Total current liabilities

171,570

337,851

Deferred income taxes

28,794

28,232

Long-term debt

154,375

Deferred compensation liabilities

51,407

45,498

Other liabilities

12,989

11,106

Total Liabilities

419,135

422,687

Stockholders' Equity

Capital stock

33,516

32,621

Paid-in capital

553,565

504,883

Retained earnings

791,970

703,385

Treasury stock, at cost

(904,825

)

(797,141

)

Deferred compensation payable in Company stock

2,316

2,185

Total Stockholders' Equity

476,542

445,933

Total Liabilities and Stockholders' Equity

895,677

868,620


CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands)(unaudited)

					Three Months Ended
					March 31,
					2015			2014
Cash Flows from Operating Activities
	Net income				$	24,537		$	20,574
	Adjustments to reconcile net income to net cash provided by operating activities:
		Depreciation and amortization				8,608			8,158
		Provision for uncollectible accounts receivable				3,804			3,304
		Provision for deferred income taxes				(2,734	)		6,841
		Stock option expense				1,444			1,309
		Noncash long-term incentive compensation				934			373
		Amortization of debt issuance costs				131			337
		Amortization of discount on convertible notes				-			2,261
		Changes in operating assets and liabilities, excluding amounts acquired in business combinations:
				Increase in accounts receivable		(24,926	)		(27,700	)
				Decrease in inventories		2			27
				Decrease/(increase) in prepaid expenses		1,433			(1,112	)
				Decrease in accounts payable and other current liabilities		(9,538	)		(32,561	)
				Increase in income taxes		11,696			5,322
				Increase in other assets		(2,815	)		(1,069	)
				Increase in other liabilities		2,569			3,080
		Excess tax benefit on share-based compensation				(2,900	)		(1,399	)
		Other sources				129			409
			Net cash provided/(used) by operating activities			12,374			(11,846	)
Cash Flows from Investing Activities
	Capital expenditures					(8,553	)		(8,131	)
	Business combinations					-			(250	)
	Other sources					351			29
			Net cash used by investing activities			(8,202	)		(8,352	)
Cash Flows from Financing Activities
	Proceeds from long-term debt					37,200			-
	Payments on long-term debt					(23,450	)		-
	Capital stock surrendered to pay taxes on stock-based compensation					(5,464	)		(2,916	)
	Proceeds from exercise of stock options					4,899			13,193
	Dividends paid					(3,743	)		(3,303	)
	Excess tax benefit on share-based compensation					2,900			1,399
	Increase/(decrease) in cash overdrafts payable					(1,528	)		369
	Purchase of treasury stock					-			(32,982	)
	Other uses					(783	)		(501	)
			Net cash provided/ (used) by financing activities			10,031			(24,741	)
Increase/(Decrease) in Cash and Cash Equivalents						14,203			(44,939	)
Cash and cash equivalents at beginning of year						14,132			84,418
Cash and cash equivalents at end of period					$	28,335		$	39,479


CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 2015 AND 2014
(in thousands)(unaudited)

											Chemed
		VITAS			Roto-Rooter			Corporate			Consolidated
2015
Service revenues and sales		$	269,613		$	107,039		$	-		$	376,652
Cost of services provided and goods sold			212,495			56,390			-			268,885
Selling, general and administrative expenses (a)			21,971			28,761			7,856			58,588
Depreciation			4,785			3,094			153			8,032
Amortization			167			108			301			576
	Total costs and expenses		239,418			88,353			8,310			336,081
	Income/(loss) from operations		30,195			18,686			(8,310	)		40,571
Interest expense (a)			(57	)		(96	)		(816	)		(969	)
Intercompany interest income/(expense)			1,726			838			(2,564	)		-
Other income/(expense)—net			(433	)		46			950			563
	Income/(loss) before income taxes		31,431			19,474			(10,740	)		40,165
Income taxes (a)			(12,116	)		(7,466	)		3,954			(15,628	)
	Net income/(loss)	$	19,315		$	12,008		$	(6,786	)	$	24,537

2014
Service revenues and sales		$	260,412		$	97,888		$	-		$	358,300
Cost of services provided and goods sold			205,392			52,427			-			257,819
Selling, general and administrative expenses (b)			21,714			27,181			6,776			55,671
Depreciation			4,614			2,399			136			7,149
Amortization			419			145			445			1,009
	Total costs and expenses		232,139			82,152			7,357			321,648
	Income/(loss) from operations		28,273			15,736			(7,357	)		36,652
Interest expense (b)			(56	)		(97	)		(3,662	)		(3,815	)
Intercompany interest income/(expense)			1,344			649			(1,993	)		-
Other income/(expense)-net			(293	)		(59	)		1,168			816
	Income/(loss) before income taxes		29,268			16,229			(11,844	)		33,653
Income taxes (b)			(11,109	)		(6,196	)		4,226			(13,079	)
	Net income/(loss)	$	18,159		$	10,033		$	(7,618	)	$	20,574

The "Footnotes to Financial Statements" are integral parts of this financial information.


CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING SUMMARY OF EBITDA
FOR THE THREE MONTHS ENDED MARCH 31, 2015 AND 2014
(in thousands)(unaudited)


												Chemed
			VITAS			Roto-Rooter			Corporate			Consolidated
2015
Net income/(loss)			$	19,315		$	12,008		$	(6,786	)	$	24,537
Add/(deduct):
	Interest expense			57			96			816			969
	Income taxes			12,116			7,466			(3,954	)		15,628
	Depreciation			4,785			3,094			153			8,032
	Amortization			167			108			301			576
		EBITDA		36,440			22,772			(9,470	)		49,742
Add/(deduct):
	Intercompany interest income/(expense)			(1,726	)		(838	)		2,564			-
	Interest income			(34	)		(10	)		-			(44	)
	Expenses related to OIG investigation			1,274			-			-			1,274
	Expenses related to litigation settlements			-			5			-			5
	Advertising cost adjustment (c)			-			(506	)		-			(506	)
	Stock option expense			-			-			1,444			1,444
	Long-term incentive compensations			-			-			934			934
		Adjusted EBITDA	$	35,954		$	21,423		$	(4,528	)	$	52,849

2014
Net income/(loss)			$	18,159		$	10,033		$	(7,618	)	$	20,574
Add/(deduct):
	Interest expense			56			97			3,662			3,815
	Income taxes			11,109			6,196			(4,226	)		13,079
	Depreciation			4,614			2,399			136			7,149
	Amortization			419			145			445			1,009
		EBITDA		34,357			18,870			(7,601	)		45,626
Add/(deduct):
	Intercompany interest income/(expense)			(1,344	)		(649	)		1,993			-
	Interest income			64			(8	)		(6	)		50
	Expenses related to OIG investigation			748			-			-			748
	Expenses related to litigation settlements			113			193			-			306
	Acquisition expenses			1			-			-			1
	Advertising cost adjustment (c)			-			(741	)		-			(741	)
	Stock option expense			-			-			1,309			1,309
	Long-term incentive compensations			-			-			373			373
		Adjusted EBITDA	$	33,939		$	17,665		$	(3,932	)	$	47,672

The "Footnotes to Financial Statements" are integral parts of this financial information.


CHEMED CORPORATION AND SUBSIDIARY COMPANIES
RECONCILIATION OF ADJUSTED NET INCOME
(in thousands, except per share data)(unaudited)

		Three Months Ended March 31,
		2015		2014
Net income as reported		$	24,537	$	20,574

Add after-tax cost of:
	Stock option expense		910		822
	Expenses related to OIG investigation		790		464
	Long-term incentive compensation		591		236
	Expenses related to litigation settlements		3		187
	Additional interest expense resulting from the change in accounting for the conversion feature of the convertible notes		-		1,429
	Acquisition expenses		-		1
Adjusted net income		$	26,831	$	23,713



Diluted Earnings Per Share As Reported
	Net income	$	1.40	$	1.12
	Average number of shares outstanding		17,466		18,305

Adjusted Diluted Earnings Per Share
	Adjusted net income	$	1.54	$	1.32
	Adjusted average number of shares outstanding (d)		17,466		18,019

The "Footnotes to Financial Statements" are integral parts of this financial information.


CHEMED CORPORATION AND SUBSIDIARY COMPANIES
OPERATING STATISTICS FOR VITAS SEGMENT
(unaudited)

					Three Months Ended March 31,
	OPERATING STATISTICS				2015			2014
		Net revenue ($000) (e)
			Homecare		$	204,541		$	195,397
			Inpatient			26,716			25,993
			Continuous care			38,191			38,175
				Total before Medicare cap allowance	$	269,448		$	259,565
			Medicare cap allowance			165			847
				Total	$	269,613		$	260,412
		Net revenue as a percent of total before Medicare cap allowance
			Homecare			75.9	%		75.3	%
			Inpatient			9.9			10.0
			Continuous care			14.2			14.7
				Total before Medicare cap allowance		100.0			100.0
			Medicare cap allowance			0.1			0.3
				Total		100.1	%		100.3	%
		Average daily census ("ADC") (days)
			Homecare			10,877			10,476
			Nursing home			2,920			2,828
				Routine homecare		13,797			13,304
			Inpatient			440			437
			Continuous care			587			576
				Total		14,824			14,317

		Total Admissions				17,268			16,353
		Total Discharges				16,990			16,002
		Average length of stay (days)				79.0			81.1
		Median length of stay (days)				13.0			14.0
		ADC by major diagnosis
			Neurological			23.7	%		39.2	%
			Cerebro			28.0			5.5
			Cancer			16.9			17.3
			Cardio			17.8			14.7
			Respiratory			7.8			3.3
			Other			5.8			20.0
				Total		100.0	%		100.0	%
		Admissions by major diagnosis
			Neurological			12.9	%		21.8	%
			Cerebro			18.6			6.7
			Cancer			30.6			32.4
			Cardio			15.8			13.8
			Respiratory			10.8			9.9
			Other			11.3			15.4
				Total		100.0	%		100.0	%
		Direct patient care margins (f)
			Routine homecare			52.7	%		52.8	%
			Inpatient			8.4			4.2
			Continuous care			15.9			16.6
		Homecare margin drivers (dollars per patient day)
			Labor costs		$	57.21		$	55.44
			Drug costs			6.50			7.24
			Home medical equipment			6.41			6.61
			Medical supplies			2.92			3.22
		Inpatient margin drivers (dollars per patient day)
			Labor costs		$	339.37		$	349.71
		Continuous care margin drivers (dollars per patient day)
			Labor costs		$	587.63		$	593.77
		Bad debt expense as a percent of revenues				1.0	%		1.0	%
		Accounts receivable --
		Days of revenue outstanding- excluding unapplied Medicare payments				41.3			42.7
		Days of revenue outstanding- including unapplied Medicare payments				38.1			33.8


The "Footnotes to Financial Statements" are integral parts of this financial information.


CHEMED CORPORATION AND SUBSIDIARY COMPANIES
FOOTNOTES TO FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 2015 AND 2014
(unaudited)



(a)	Included in the results of operations for the three months ended March 31, 2015, are the following significant credits/(charges) which may not be indicative of ongoing operations (in thousands):

				VITAS			Roto-Rooter			Corporate			Total
	Selling, general and administrative expenses
		Expenses related to OIG investigation		$	(1,274	)	$	-		$	-		$	(1,274	)
		Expenses related to litigation settlements			-			(5	)		-			(5	)
		Stock option expense			-			-			(1,444	)		(1,444	)
		Long-term incentive compensation			-			-			(934	)		(934	)
			Pretax impact on earnings		(1,274	)		(5	)		(2,378	)		(3,657	)
	Income tax benefit/(charge) on the above				484			2			877			1,363
			After-tax impact on earnings	$	(790	)	$	(3	)	$	(1,501	)	$	(2,294	)

(b)	Included in the results of operations for the three months ended March 31, 2014, are the following significant credits/(charges) which may not be indicative of ongoing operations (in thousands):

				VITAS			Roto-Rooter			Corporate			Total
	Selling, general and administrative expenses
		Expenses related to OIG investigation		$	(748	)	$	-		$	-		$	(748	)
		Expenses related to litigation settlements			(113	)		(193	)		-			(306	)
		Acquisition expenses			(1	)		-			-			(1	)
		Stock option expense			-			-			(1,309	)		(1,309	)
		Long-term incentive compensation			-			-			(373	)		(373	)
	Interest expense
		Additional interest expense resulting from the change in accounting for the conversion feature of the convertible notes			-			-			(2,259	)		(2,259	)
			Pretax impact on earnings		(862	)		(193	)		(3,941	)		(4,996	)
	Income tax benefit/(charge) on the above				327			76			1,454			1,857
			After-tax impact on earnings	$	(535	)	$	(117	)	$	(2,487	)	$	(3,139	)

(c)	Under Generally Accepted Accounting Principles ("GAAP"), the Roto-Rooter segment expenses all advertising, including the cost of telephone directories, immediately upon the initial release of the advertising. Telephone directories are generally in circulation 12 months. If a directory is in circulation for a time period greater or less than 12 months, the publisher adjusts the directory billing for the change in billing period. The timing of when a telephone directory is published can and does fluctuate significantly on a quarterly basis. This "direct expensing" results in significant fluctuations in quarterly advertising expense. In the first quarters of 2015 and 2014, GAAP advertising expense for Roto-Rooter totaled $6,067,000 and $6,515,000, respectively. If the expense of the telephone directories were spread over the periods they are in circulation, advertising expense for the first quarters of 2015 and 2014 would total $6,573,000 and $7,256,000, respectively.

(d)	Adjusted diluted average shares outstanding for 2014 excludes the estimated dilutive impact of the Convertible Notes (285,000 shares for the first quarter of 2014) as this impact was offset entirely by the Convertible Note Hedges when such conversion occurred in the second quarter of 2014.

(e)	VITAS has nine large (greater than 450 ADC), 17 medium (greater than 200 but less than 450 ADC) and 23 small (less than 200 ADC) hospice programs. Of VITAS' 35 unique Medicare provider numbers, 34 provider numbers have a Medicare cap cushion of 10% or greater during the current Medicare cap year and one provider number has a Medicare cap cushion between 0% and 5%.

(f)	Amounts exclude indirect patient care and administrative costs, as well as Medicare Cap billing limitation.

			CHEMED CORPORATION


Dated:	April 28, 2015	By:	/s/ Arthur V. Tucker Jr.
			Arthur V. Tucker, Jr.
			Vice President and Controller