Chemed reports 76% increase in income from continuing operations.CINCINNATI--(BUSINESS WIRE)--Oct. 19, 1995--Chemed Corporation (NYSE NYSE See: New York Stock Exchange :CHE) today reported that in the third quarter ended September September: 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 76% from $.33 per share in the 1994 third quarter to $.58 per share in 1995. Sales and service revenues rose 7% from $166,089,000 in the 1994 third quarter to $177,554,000 in 1995. Year to date, for the nine months ended September 30, 1995, Chemed's income from continuing operations rose to $1.66 per share, a 51% increase over the $1.10 per share reported for the comparable 1994 period. Sales and service revenues of $524,756,000 were 9% higher than revenues of $479,542,000 in the first nine months of 1994. Importantly, income from continuing operations before capital gains and nonrecurring charges Nonrecurring Charge An expense occurring only once on a company's financial statement. Notes: An extraordinary item is an example of a nonrecurring charge. Also known as "nonrecurring item". grew from $.36 per share in the 1994 third quarter to $.44 per share in the 1995 third quarter, a 22% increase. For the year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. period, income before capital gains and nonrecurring charges increased from $.88 in 1994 to $1.09 in 1995, up 24%. 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, "Patient Care Inc., our wholly owned homecare-services subsidiary, achieved 74% earnings growth in the 1995 third quarter on revenue growth of 32%. Revenues for the period were $23,377,000 as compared with $17,732,000 in the third quarter of last year. We continue to see substantial and growing demand for home-based health care, as it offers not only a cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. , but also a caring, solution to health care cost-containment concerns. Going forward, Patient Care will continue to seek expansion through start-ups or acquisitions in both existing and new markets, as well as continue its ongoing effort to recruit and train high-quality 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 to meet rising demand. "In the third quarter, our 100%-owned medical and dental supply business completed the sale of its retail telemarketing telemarketing, the practice of selling goods or services to customers by means of the telephone or of surveying consumer preferences in telephone conversations. division and benefited from the acquisition of Central States Diversified diversified (di·verˑ·s , which was merged into Tidi Products Inc. in May 1995. These changes enable the new Tidi Products to focus on its strong manufacturing tradition and to extend its product offerings to both the hospital and alternate-care marketplaces. This new focus resulted in a 13% earnings increase for Tidi Products in the 1995 third quarter, as compared with the same prior-year quarter, on revenues of $19,501,000. "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, our 85%-owned subsidiary, reported that net income in the 1995 third quarter increased 20% to $1,977,000 as compared with $1,654,000 in the prior-year third quarter. Sales grew by 10% to $89,396,000 versus $81,232,000 in the 1994 third quarter. Ongoing marketing efforts, such as strategic sales programs and targeted promotions, helped to generate strong sales gains at most locations during the quarter. These marketing efforts, combined with programs to manage product pricing, boosted National's sales and earnings growth during the quarter. "In the 1995 third quarter, 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., our 58%-owned subsidiary, reported that earnings rose 13% to $2,635,000, excluding nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. aftertax charges of $355,000. Revenues advanced 5% to $45,280,000. Earnings were affected by a decline in margins at Service America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. , Roto-Rooter's service contract business, due to a higher-than-expected number of service calls per contract in the quarter. Nonetheless, the new contract sales and renewals that propel pro·pel tr.v. pro·pelled, pro·pel·ling, pro·pels To cause to move forward or onward. See Synonyms at push. [Middle English propellen, from Latin Service America's earnings growth continued to increase. Further, Roto-Rooter's overall earnings growth benefited from its continuing success in generating additional cash from operations which produced higher levels of interest earnings in the third quarter of 1995. "As in prior quarters, Chemed continued to realize capital gains from its investments. Third-quarter gains aggregating $1.6 million resulted primarily from the sale of a portion of our Omnicare Omnicare (NYSE: OCR) is a Fortune 500 company based in Covington, Kentucky. This company provides services in skilled nursing, assisted living, and other healthcare facilities in 47 U.S. states and Canada. External links
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 $44.8 million for Chemed." Commenting on Chemed's third-quarter dividend increase, Mr. Hutton said, "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 raised the quarterly cash dividend to $.52 per share, a 2% increase. This dividend, paid in September, was the 97th consecutive quarterly dividend paid by Chemed and marks the 24th time in Chemed's 24 years as a public company that the annual dividend rate has been increased for the company's stockholders." Concluding his remarks, Mr. Hutton said, "We are pleased with Chemed's results thus far in 1995. Our business strategies are showing positive results. Our balance sheet is strong. Each of our businesses is growing its earnings and revenues. We feel the outlook for Chemed is excellent and look to the future with confidence." Chemed Corporation, headquartered in Cincinnati Cincinnati (sĭnsənăt`ē, –năt`ə), city (1990 pop. 364,040), seat of Hamilton co., extreme SW Ohio, on the Ohio River opposite Newport and Covington, Ky.; inc. as a city 1819. , 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 Corp. and Subsidiary Cos. Comparative Results (Unaudited) (in thousands except per share data)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
___________________ ___________________
1995 1994 1995 1994
________ ________ ________ ________
Continuing Operations
Sales and service
revenues $177,554 $166,089 $524,756 $479,542
________ ________ ________ ________
________ ________ ________ ________
Income from
operations $ 8,681/a $ 6,348/a $ 23,228/a $ 18,597/a
Interest expense (2,117) (2,304) (6,339) (6,518)
Other income, net 4,775/b 2,640/b 15,151/c 9,927/c
________ ________ ________ ________
Income before income
taxes and minority
interest 11,339/a,b 6,684/a,b 32,040/a,c 22,006/a,c
Income taxes (4,379) (2,287) (12,220) (8,172)
Minority interest in
earnings of
subsidiaries (1,252) (1,187) (3,422) (2,959)
________ ________ ________ ________
Income from
continuing
operations 5,708/a,b 3,210/a,b 16,398/a,c 10,875/a,c
Discontinued
Operations(d) 1,842 1,884 2,743 7,913
________ ________ ________ ________
Net Income $7,550/a,b $5,094/a,b $19,141/a,c $18,788/a,c
________ ________ ________ ________
________ ________ ________ ________
Earnings Per
Common Share
Income from
continuing
operations $0.58/a,b $0.33/a,b $1.66/a,c $1.10/a,c
________ ________ ________ ________
________ ________ ________ ________
Net income $0.77/a,b $0.52/a,b $1.94/a,c $1.91/a,c
________ ________ ________ ________
________ ________ ________ ________
Average number
of shares
outstanding 9,866 9,867 9,866 9,846
________ ________ ________ ________
________ ________ ________ ________
(a) Amounts for 1995 include nonrecurring expenses amounting to
$538,000 pretax ($355,000 aftertax; $208,000 after minority
interest or $.02 per share). Such costs were incurred by
Roto-Rooter to evaluate Chemed's offer to acquire the 42%
minority interest in Roto-Rooter common stock. The offer was
withdrawn in August 1995. Amounts for 1994 include
nonrecurring expenses amounting to $1,705,000 pretax ($1,107,000
aftertax or $.11 per share) related to the cost of staff
reductions at Veratex and at Chemed's corporate office, as well
as the cost of refocusing marketing efforts at Veratex.
(b) Amounts for the third quarter include pretax capital gains of
$2,448,000 ($1,561,000 aftertax or $.16 per share) and
$1,119,000 ($735,000 aftertax or $.08 per share) in 1995 and
1994, respectively, from the sales of investments during the
periods.
(c) Amounts for the nine-month periods include pretax capital gains
of $9,078,000 ($5,882,000 aftertax or $.59 per share) and
$5,345,000 ($3,298,000 aftertax or $.33 per share) in 1995 and
1994, respectively, from the sales of investments during the
periods.
(d) Discontinued operations include the following (in thousands):
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
___________________ ___________________
1995 1994 1995 1994
________ ________ ________ ________
Adjustment to the
accruals relating
to operations
discontinued in
1991 $ 1,842 $ 1,471 $ 2,743 $ 3,807
Gain on the sale of
Omnicare Inc.
(``Omnicare'')
stock, an equity
investment
discontinued in
November 1994 - - - 2,386
Equity in the
earnings of
Omnicare - 413 - 1,720
________ ________ ________ ________
Total
discontinued
operations $ 1,842 $ 1,884 $ 2,743 $ 7,913
________ ________ ________ ________
________ ________ ________ ________
CONTACT: Chemed Corp., Cincinnati Timothy S. O'Toole, 513/762-6702 |
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