Chemed (CHE) 43rd Annual J.P. Morgan Healthcare Conference 2025 summary

Company history and business structure

• Originated from a 1971 spinoff, evolving through acquisitions and divestitures to focus on healthcare and plumbing services.

• Acquired full ownership of VITAS in the early 2000s, maintaining Roto-Rooter as a cash-generating business.

• Maintains transparency for investors, allowing easy sum-of-the-parts analysis.

• Both businesses are market leaders with strong cash flow and have been held for over 20 years.

Financial performance and capital allocation

• Adjusted net income for VITAS grew 10.8% annually, Roto-Rooter 14.4%, and overall 21.7% over 21 years.

• Share count reduced from 27 million to 15 million, enhancing per-share metrics.

• $2.5 billion returned to shareholders via dividends and buybacks.

• No debt and $200 million in cash on the balance sheet.

• Free cash flow is about $300 million, supporting ongoing investments and buybacks.

Roto-Rooter business update

• Experienced pandemic-driven demand surge, followed by weaker performance in 2023–2024.

• Long-term outlook remains optimistic, expecting a return to 4%-6% growth.

• Cash flow from Roto-Rooter supports other business growth and share repurchases.