Chemed income from continuing operations up 20% in second quarter; revenues increase 10%.CINCINNATI--(BUSINESS WIRE)--July 19, 1995--Chemed Corporation (NYSE NYSE See: New York Stock Exchange :CHE) today reported that in the second quarter ended June June: see month. 30, 1995, income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the rose 20% from $.45 per share in the 1994 second quarter to $.54 per share in 1995. Sales and service revenues rose from $161,384,000 in the 1994 second quarter to $177,344,000 in 1995, an increase of 10%. Further, income from continuing operations before capital gains--Chemed's core earnings--increased from $.28 per share in the 1994 second quarter to $.35 in 1995, up 25%. Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. , for the six months ended June 30, 1995, Chemed's income from continuing operations rose to $1.08 per share, a 38% increase over the $.78 per share reported for the comparable 1994 period. Sales and service revenues of $347,202,000 were 11% higher than revenues of $313,453,000 in the first six months of 1994. Before capital gains, income from continuing operations of $.65 per share for year-to-date 1995 was 25% above income before capital gains of $.52 per share in the same prior-year period. Commenting on the company's performance, Chemed Chairman and Chief Executive Officer Edward Edward killed his father at his mother’s instigation. [Br. Balladry: Edward in Benét, 302] See : Patricide L. Hutton Hut·ton , James 1726-97. Scottish physician and geologist whose ideas, presented in A Theory of the Earth (1785), form the basis of modern geology. Noun 1. said, ``The results for the second quarter and year to date demonstrate the success of the strategies Chemed has implemented over the past few years to add dynamic businesses in the fast-growing adj. 1. tending to spread quickly; - used mostly of plants. Adj. 1. fast-growing - tending to spread quickly; "an aggressive tumor" strong-growing, aggressive healthcare industries to our steadily growing Roto-Rooter Roto-Rooter is a United States company which originally specialized in clearing tree roots and other obstructions from sewer lines. It is the largest plumbing and drain-cleaning company in North America. Inc. (59% owned) and National Sanitary sanitary /san·i·tary/ (san´i-tar?e) promoting or pertaining to health. san·i·tar·y adj. 1. Of or relating to health. 2. Supply Company (85% owned) subsidiaries. Excellent earnings gains of 112% at our wholly owned Patient Care Inc. subsidiary, 24% at National Sanitary, and 17% at Roto-Rooter drove Chemed's growth for the quarter, while acquisition and divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). activity highlighted the quarter for our wholly owned medical and dental supply business.'' Mr. Hutton continued, ``Patient Care, our homecare-services subsidiary, achieved 112% earnings growth in the 1995 second quarter on revenue growth of 29%. Revenues for the period were $22,659,000 as compared with $17,578,000 in the second quarter of last year. The outlook for Patient Care is bright, with demand for home healthcare services growing rapidly. Patient Care continues to recruit and train homecare British Gas HomeCare is the name for British Gas Services which operates in the United Kingdom, which was originally set up to provide maintenance for central heating and other gas appliances. staff and open new offices, most recently in The Bronx, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . As the year progresses, Patient Care will continue its recruitment efforts and expansion plans through start-ups or acquisitions in both existing and new markets. ``National Sanitary Supply Company reported that net income in the 1995 second quarter increased 24% to $1,370,000 as compared with $1,104,000 in the prior-year second quarter. Sales grew by 11% to $85,571,000 versus $76,975,000 in the 1994 second quarter. Volume increases at most locations, coupled with continued pricing gains in the paper and plastic product categories, contributed to this double-digit sales and earnings growth. ``In the 1995 second quarter, Roto-Rooter reported that net income rose to $2,225,000, up 17%. Revenues advanced 3% to $43,271,000. Effective cost management drove Roto-Rooter's earnings growth as operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: improved from 8.3% of revenues in the year-ago second quarter to 8.6% in 1995. Additionally, the company's success in generating additional cash from operations produced higher levels of interest earnings, resulting in the pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern profit margin's increasing from 8.2% in the 1994 second quarter to 9.1% in the second quarter of 1995. ``On July 7, our 100%-owned medical and dental supply business completed the sale of its retail division, freeing management to focus on its strong wholesale manufacturing and distribution operation, Tidi Products Inc. In the second quarter, Tidi, which generated $56 million in sales in 1994, acquired the CSD CSD Commission on Sustainable Development CSD Serbian Dinar (ISO currency code) CSD Christopher Street Day CSD Circuit Switched Data (Sprint) CSD Computer Science Department CSD Community School District Medical Division of Central States Diversified diversified (di·verˑ·s Inc. With annual revenues of $12 million, CSD Medical is a manufacturer and distributor of disposable disposable Nursing adjective Referring to that which is discarded or disposed of noun An item used in health care-related Pt contact which is discarded after use–eg masks, gloves, gowns, needles, paper products, syringes, wipes. See Biohazardous waste. paper products, marketed under the ProTexMor(R) brand. Together, Tidi and CSD generated a double-digit increase in earnings versus the year-ago second quarter, with sales of $16,212,000. The divestiture of the retail division and acquisition of CSD should enable Tidi to maximize its sales to large medical and dental dealer chains, while gaining manufacturing efficiencies to further bolster This article is about the pillow called a bolster. For other meanings of the word "bolster", see bolster (disambiguation). A bolster (etymology: Middle English, derived from Old English, and before that the Germanic word bulgstraz earnings growth.'' Commenting on the performance of Chemed's investments, Mr. Hutton said, ``As in prior quarters, Chemed continued to realize capital gains from its investments. These second-quarter gains, aggregating $2.9 million, resulted from the sales of a portion of our Omnicare Inc. and EXEL Ltd. shares, among other investments. At yesterday's closing prices, our holdings in Omnicare and EXEL had an aggregate market value of $48.3 million, representing an unrealized gain Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. of $38.5 million for Chemed.'' Commenting on the dividend paid in the second quarter, Mr. Hutton continued, ``Reflecting its continued confidence in Chemed's excellent financial position and long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. earnings outlook, the Board of Directors declared a quarterly cash dividend of $.51 per share, which was paid in June. This represented the 96th consecutive quarterly dividend paid to our stockholders in our 24 years as a public company.'' Concluding his remarks, Mr. Hutton said, ``We are pleased with Chemed's results for the first half of 1995. Our business strategies are paying off. Earnings at each of our businesses are growing, and our balance sheet is strong. We feel the outlook for Chemed is excellent.'' Chemed Corporation, headquartered in Cincinnati, is a diversified public corporation with strategic positions in medical and dental supply manufacturing for the alternate-care and hospital markets, home healthcare services, and hospice hospice, program of humane and supportive care for the terminally ill and their families; the term also applies to a professional facility that provides care to dying patients who can no longer be cared for at home. care; plumbing plumbing, piping systems inside buildings for water supply and sewage. The Romans had a highly developed plumbing system; water was brought to Rome by aqueducts and distributed to homes in lead pipes—hence the name plumbing from the Latin word plumbum , drain cleaning, and appliance A stand-alone hardware device or software environment dedicated to a specific task. See hardware appliance and software appliance. and air-conditioning repair and maintenance through the sale of service contracts; and sanitary maintenance products and services. -0- Chemed Corporation and Subsidiary Companies Comparative Results (Unaudited) (in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
1995 1994 1995 1994
Continuing operations
Sales and service revenues $177,344 $161,384 $347,202 $313,453
________ ________ ________ ________
________ ________ ________ ________
Income from operations $ 7,851 $ 6,579 $ 14,547 $ 12,249
Interest expense (2,119) (2,167) (4,222) (4,214)
Other income, net 4,727/a 4,158/a 10,376/b 7,287/b
________ ________ ________ ________
Income before income taxes
and minority interest 10,459/a 8,570/a 20,701/b 15,322/b
Income taxes (4,027) (3,205) (7,841) (5,885)
Minority interest in
earnings of subsidiaries (1,127) (939) (2,170) (1,772)
________ ________ ________ ________
Income from continuing
operations 5,305/a 4,426/a 10,690/b 7,665/b
Discontinued operations/c - 3,591 901 6,029
________ ________ ________ ________
Net income $ 5,305/a $ 8,017/a $11,591/b $13,694/b
________ ________ ________ ________
________ ________ ________ ________
Earnings per common share
Income from continuing
operations $ 0.54/a $ 0.45/a $ 1.08/b $ 0.78/b
________ ________ ________ ________
________ ________ ________ ________
Net income $ 0.54/a $ 0.81/a $ 1.17/b $ 1.39/b
________ ________ ________ ________
________ ________ ________ ________
Average number of shares
outstanding 9,869 9,847 9,866 9,836
________ ________ ________ ________
________ ________ ________ ________
NOTES:
/a Amounts for the second quarter include pretax capital gains of $2,898,000 ($1,858,000 aftertax or 19 cents per share) and $2,583,000 ($1,692,000 aftertax or $.17 per share) in 1995 and 1994, respectively, from the sales of investments during the periods. /b Amounts for the six-month periods include pretax capital gains of $6,630,000 ($4,321,000 aftertax or 43 cents per share) and $4,226,000 ($2,563,000 aftertax or 26 cents per share) in 1995 and 1994, respectively, from the sales of investments during the periods. /c Discontinued operations include the following (in thousands):
Three Months Ended Six Months Ended
June 30, June 30,
1995 1994 1995 1994
Adjustment to the tax
provision on the gain on
the sale of operations
discontinued in 1991 $ - $2,336 $ 901 $2,336
Gain on the sale of Omnicare
Inc. (``Omnicare'') stock,
an equity investment
discontinued in November
1994 - 569 - 2,386
Equity in the earnings of
Omnicare - 686 - 1,307
______ ______ _______ ______
Total discontinued
operations $ - $3,591 $ 901 $6,029
______ ______ _______ ______
______ ______ _______ ______
CONTACT: Chemed Corp., Cincinnati Timothy S. O'Toole, 513/762-6702 |
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