CHE · Chemed Corp. Q2 FY2026 earnings call record财报电话会记录

“Lead generation and the resulting cost of customer acquisition remained a challenge in the second quarter.”

“The combination of the two business units drove an increase in total Chemed revenue of 8.8% and an increase in adjusted diluted earnings per share of 41.9% in the second quarter of 2026 as compared with the same period of 2025.”

“Additionally, the consolidated business generated cash flow from operations in excess of $173 million in the second quarter, which, along with minimal leverage, allows us to pursue accretive acquisitions, aggressive share repurchases as those opportunities present themselves.”

“Acuity mix shift negatively impacted revenue growth 115 basis points in the quarter when compared to the prior year revenue and level of care mix.”

“The adjusted EBITDA margin in the quarter was 21.1%, which represents a 77 basis point decline from the second quarter of 2025.”

“Roto-Rooter's gross margin of 50.4% was in line with our expectations and 135 basis points better than the second quarter of 2025.”

“Full-year ADC growth for 2026 is updated to a range of 5.75%-6.25%, compared to the previous guidance range of 4.5%-5.5%.”

“Anticipated revenue growth, excluding the impact of the Medicare Cap, improves from the previous guidance range of 6.5%-7.5% to a revised range of 8.25%-9.25%.”

“Finally, revised EBITDA margin, excluding the impact of the Medicare Cap, is anticipated to be 19%-19.5%, compared to the previous guidance of 18%-18.5%.”

“I think we would love at Roto-Rooter to see margins in the 23%-24% range, but ultimately even at the, call it, 22% range, that's pretty healthy for a home services business.”

“What has worked very well for Roto-Rooter certainly is to the extent that if we can provide additional services to customers who call for our main line of service, that is plumbing or drain cleaning, the cost of acquisition for that additional business is near zero.”

“Frankly, at an average length of stay, as we mentioned, of 101 days, which is driven by having the mix of between 42% and 45% of hospital-based admissions, that's very sustainable.”