Chemed (CHE) 28 Feb 242023 Q4 Earnings call transcript

[abrupt start] The financial results for the Fourth Quarter of 2023 ended December 31, 2023.

Before we begin, let me remind you that the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 apply to this conference call.

During the course of this call, the company will make various remarks concerning management's expectations, predictions, plans and prospects that constitute forward-looking statements. Actual results may differ materially from those projected by these forward-looking statements as a result of a variety of factors, including those identified in the company's news release of February 27 and in various other filings with the SEC.

You are cautioned that any forward-looking statements reflect management's current view only and that the company undertakes no obligation to revise or update such statements in the future.

also earnings operating and before EBITDA adjusted may today's results amortization management and including call, interest, EBITDA. addition, discuss performance non-GAAP during or In taxes, depreciation

company's results available Officer McNamara, Executive over is Nick the today, to company's turn I provided non-GAAP Chief introduce XX, Chief chemed.com. on and these Executive at Chemed's Financial Westfall, now Officer and of dated February of reconciliation in Chemed; A Kevin the the would press McNamara. website Corporation; Corporation Witzeman, our release President Healthcare of which Mike for Officer now Chief is like subsidiaries. to of VITAS will Chemed I speakers Kevin call

Conference quarter, call will for details. Call. the highlights Holly. additional Mike up open and with up I the to Chemed you, Thank morning. XXXX Welcome begin the Good Nick will then operating to with questions. will and I follow Quarter Corporation's Fourth

improvement night XXXX quarter increased the fourth Our These quarter, prior census. our to higher year In strengthening X% patient continued operating VITAS' admissions over drive period. released last operational metrics. continue the admissions reflect in results our

quarter, census expanded an to of XXXX. or of average the X,XXX, when compared our quarter the XX% the ADC, when and year third quarter In increase prior X.X% fourth to daily compared

of care staff aggregate majority which of This retention an XX-month of operating July is our the to increase of in licensed our result During the designed and This nurses. fourth continued program capacity. stabilize health quarter, licensed we surpassed launched our program metrics in VITAS' improvement XX-month pre-pandemic and ADC are expand program all-time in high. hiring was workforce tenured clinical retention turnover XXXX. XXX generated professionals,

ended in XXXX. second retention bonus of The quarter program the

our XXX staff in related by service second to challenging internal head number targets, third XX unexpected patient VITAS' increase and license vacation around more to XXXX, was and not our quarter. count of schedules net increased professionals quarter wholly hiring fourth continued and The below licensed as due in in bedside was lower individual However, but is fourth capacity. the quarter plans. the we expand the holidays the half the

Our assumes growth and driven licensed staff. hiring of retention continued guidance by successful XXXX strong ADC VITAS

Now Roto-Rooter. to let's turn

impacted few discussed manage continues over to was be down As compared the the consumer only and headwinds the Roto-Rooter freeze, consumer what call as the our the quarter. can sector economy. week the spending last excluding in to our to significantly past a nationwide of when down ongoing within as XXXX. in quarters, call compared XX% was sentiment XXXX, prior-year through The described that Overall, the of XX.X% volume deep XXXX quarter in of X XXXX by period was fourth week, during fourth same quarter volume

in the call offset comparable experienced has been is portion This declines to second decline we significant demand a softening and of improvements rates. volume in the third with quarters close the have Roto-Rooter XXXX. of

converted has centers at call conversion the ticket into is a scheduled a rate X.X%. call Our improved which technician rate,

our technician before be X.X%. rate, the can jobs rate void of improved is ticket dispatched Our canceled which to

a X.X%. improved the billable the technician time schedule the percentage rate conversion tech converts ticketed home Our and at business work of or arrives

with commercial business. the same the at business of issues XXXX revenue X.X% with fourth residential Roto-Rooter our some XXXX. that our experienced of the We've have declined as Commercial quarter period we in compared noticed same demand of with

when prices. customer significant it's type manned this high-quality, large for decreases we with a in our consistent, abate, customers big belief as We've request for been from issues return issues, have have service. is example, reliable this type For our to away business. of walked approached commercial of will with struggled It box demand that Roto-Rooter

demand in of We stabilization to see continue weekly overall our revenue.

the in quarter starting pleased improving second pandemic. Our the post XXXX. improvement trends To of VITAS with in I'm summarize, guidance accelerated assumes demand

professionals, Our growth have returned patient growth corresponding conditions. and VITAS census in to in care strong admissions licensed health increased normalized operating

Roto-Rooter the the pressing in spending over is to continued sector. I market Roto-Rooter spite anticipate of response awareness, Internet share Mike. We customer and advantages XX/X by call economic terms would With well time, consumer excellent expansion of our headwinds to core in in teleconference on aggressive positioned competitive brand centers that, like of presence. turn

increase million average in VITAS' rate revenue increase to days when reimbursement prior-year compared the of primarily an weighted Kevin. $XXX XX.X% a fourth was care and comprised revenue an increase of XXXX, which is Medicare geographically the in period. net quarter of prior This increase basis Thanks, is XX.X% impacted care of revenue negatively and Medicare of basis quarter, growth, compared XX in approximately contra X.X%. year shift mix. the when revenue XX points. revenue to of level combination Cap increased The revenue of approximately The growth acuity and other points changes, by the mix

the XXXX above revenue points for period. averaged the was home care XXX which $X,XXX.XX, and and in acuity Average basis $XXX.XX, respectively. patient routine is of per fourth high prior-year $XXX.XX care Reimbursement quarter day

of of is Adjusted margin when in quarter, above which to the the the prior-year compared an high basis XX.X%, points days Medicare X.XX% of Adjusted quarter. period. basis X in quarter, million EBITDA excluding the quarter acuity increase Cap, was days of of excluding $XX.X prior-year care, Cap, points, care total During totaled EBITDA, were XXX the XX.X%. a Medicare decline

was in margin program expense of the improvement The fourth The bonus in to comparison the quarter retention number XXX basis resulted margin. items. positively XXXX attributable adjusted by point XXXX in a impacted a EBITDA

policy improvement. which an its As in basis Nick will discuss pre-pandemic reverted point to further, estimated XXX resulted VITAS vacation back

training Kevin, adjusted EBITDA less hiring in by from costs. margin onboarding quarter, previously the fourth drag discussed the and provided on lower-than-anticipated rate the Finally,

over fourth X.X% the the of to turn totaled commercial of a quarter million compared Roto-Rooter of let's year $XXX.X Now year. quarter. of revenue Roto-Rooter prior generated branch revenue X.X% Roto-Rooter. in a million, XXXX, when decrease to quarterly prior in quarter $XX.X the decrease the

over was Adjusted the costs. EBITDA totaled which an branch basis an of period, adjusted revenue in the quarter in X.X% Roto-Rooter compared X% below prior quarter of year. prior-year fourth the margin increase a Internet million, $XX.X by EBITDA XXX quarter XXXX prior-year in marketing XX.X%, to totaled the residential driven largely the increase quarter. of the $XXX.X is in The points million, decrease

Now full ADC let's margin adjusted This XXXX XX.X%. Medicare XX.X% is guidance. VITAS' increase to to year XXXX to discuss X.X% our prior to prior Full EBITDA Medicare estimated margin of revenue cap estimated X%. to compared estimated to to Cap XXXX. year be compares XXXX Medicare the EBITDA prior X.X% to X% increase to is to XX.X%. Cap when is to

a industry the margin was likely pre-pandemic once we previously, that return believe discussed to stabilized. As

along assumes continued able wage hiring headwinds and our marginal XXXX caused reimbursement to The guidance are we above-average XXXX. retention successfully levels, by and increases outpacing with in offset compression

Due are XX.X% in nationwide is be quarter 'XX, be XXXX. early the Roto-Rooter's to estimating $X.X to forecasted growth revenue for We declines to XXXX in Medicare currently Roto-Rooter, adjusted that achieve comparison in and first margin X%. we billing the expected decrease Roto-Rooter full slight XXXX year of million calendar of EBITDA XX.X%. resulting Cap for revenue in believe to to profitability. will year a limitations X.X% is for difficult XXXX

per options, to benefits is costs discrete be exercises stock approximately $XX.XX diluted litigation the noncash range of in other for X, XXXX tax estimated quarters The earnings full guidance XXXX. X.X%. stock demand upon remaining for growth of then and year expense from increase share, above, items, January option price Our Based excluding modest to XXXX Roto-Rooter implemented X $XX.XX. the anticipates related the averaged by to

and This retention diluted tax a XX.X XXXX I over costs will to Executive portion an now XX.X% XXXX of million the share share VITAS adjusted rate Westfall, including Healthcare and $XX.XX the Officer business for of corporate of earnings share was program. Nick call of turn count per with guidance $X.XX assumes adjusted segment. earnings shares. per our Chief Chemed's XXXX diluted effective associated this on

Thanks, Mike.

previously workforce we've our XX, and I'm effective in program retention without very ended As and that XXXX. the June expanding program. capacity this second very hiring was stabilizing half pleased XX-month patient of retention continued and our to also patient in This XXXX capacity. expand our discussed, bonus on

head caused employees. bedside any confident related the net to are not quarter issue hire count was licensed addition we our was and expectations, fourth and the season ability holiday our of internal of the to circumstances that by level While retain below appropriate the

X to only months confidence, this year into it's the and hiring anticipate to for While return we further reinforce a new have levels seen XXXX. retention we

patients, the of XXX when XX,XXX milestone In our fourth we the when or X And quarters. Kevin an XXXX, of mentioned prepandemic growth ADC his XX% the generated has prior of high increase all-time during over achieved last ADC X.X% also compared 'XX. daily opening our surpassed an was sequentially. we average a sequential of the VITAS increase fourth quarter remarks, in year. census quarter to

I'm as total admissions particularly was than X.X%. increase, XXXX. to of of when fourth team accomplished quarter were In we nursing originally 'XX, proud fourth home admissions the compared began our the the of forecasted This when quarter it XX,XXX. In 'XX. we a VITAS X% achievement this the is increased for faster quarter,

and XX.X% Assisted patient facility admissions when admissions Hospital increased X.X% admissions home-based prior-year to our expanded period. directed XX.X%. compared expanded the

quarter. team strategy admissions to the those segments be increase community-based successfully consolidated by balanced continues in illustrated XX.X% fourth our the Our by executed as during

fourth quarter This quarter length average XXX.X 'XX and of in the third XXX.X was Our days. compares of the 'XX. stay quarter to the XXX.X days in days of in

the XX XX XXXX days Our and in the quarter days to quarter third median the days stay length compares of of quarter 'XX. and in of XX fourth was in

our a of was previously margin fourth factors. quarter 'XX EBITDA by positively Mike mentioned, As impacted number

additions onboarding we quarter, anticipated. with side trading costs there our fourth less effect While positive slightly were head unproductive that is count disappointed than labor the net the were and in

paid pandemic, PTO August from our could the they and hours designed time. year-to-year of the to XX, be end Additionally, the was from the historical to we reverted for to we able quarantine hours. XX allow to as at policy off amount of the for to year. that that better time burnout In would -- whether was without hours time that of carryover carry manage paid back our was during be This worrying workers or over the at XX XX increased announced employees about prescribed

higher we the result, PTO taken quarter fourth experienced a normal. of than As in levels

approach has base has patient us quarters result each that taken of our growth higher accomplished, unwavering generated to was beyond. I commitment, as every we has catapulted of to towards team quarter -- year and recap to want of Kevin. over PTO than XXX margin. We the and basis fourth are forfeited the at future dedication the got in capacity past to that together, what net X a very focus and like now over historical 'XX call end and forward of health fulfilling sequential VITAS that, and store excited care Additionally, and of community the sequential thank our levels we for continue sustainable we we've into were methodically past To accomplishments what amount entire pre-pandemic and the few this estimate building turn our team anticipated us these approximately With has member predictable I'd back now XXXX EBITDA in VITAS. in our and change the serve. team licensed in added for have quarters X a mission to workers We We here onetime the years levels. the clinical ADC. our points PTO growth

questions. will I now this open Nick. to teleconference you, Thank

Our Instructions] comes of Joanna from America. Gajuk line question Bank [Operator of of the first

VITAS, I on but census growing for grow topic, first guess was to it the X% course to X% guidance, the again. on revenue of XX% last So VITAS

of high-single-digits. to long-term outlook that's growth kind about the mid- in for industry So talked like the you guess, to about, that past I the grow

dynamics it? accessing growth, After expect growth imply 'XX, you I about X-part accelerated what can that, I that confidence aging segment? growth, people the grow I earlier, hospice of for guess, do or any is is there something the gives said And high-single-digits revenue guess So Is this maybe long-term continuation again? demographics guess sustainable? is, the to be outlook the you what in question volumes with you

combined X take is pricing this rate, to beyond growth the just the Maybe We sustainable 'XX with the and beyond XXXX. parts, is, is Nick. Short answer Joanna, piece yes. for think volume

hospice factors the the very going is tailwind standpoint. other it range, people they you're a age referencing, traditionally access demographics, favorable The whether aging where That's from into benefit. that

things I contributing benefit realize think And the to I think the of care I lot biggest industry in and unknown hopefully, people growth. continue is, see to momentum there's a drive will earlier, to could overall for continuing access we that. which of days the the

to You and and to study [ access could is the Medicare well as understanding families. get to federal Fund through longer things earlier as government the Trust ] beneficial like overall that NORC patients

Carter's And reached the what about his February sparked enough then is and country milestone other And you everybody and are continued favorable, that his in the that the hospice journey on him pieces very can't on X-year provide me President praise industry can else across it like for take XX. dialogue family and he can has benefit be. the to what

there's a fact country. think tailwinds for beyond hospice that a and I really around and the So of understanding benefit for is the of about it 'XX high-quality lot overall sustainable favorable -- program acceptance the and

shift XXX, described has past mix look stay of at various me high wrong. from are going length that, for when to the you again building of XXs largest community of VITAS, Joanna, periods a that to mean don't referrals longer I you as think lived source, And tend I census. coming referrals forms the mean substantial, you driven our people have that's in still referring average other to and or But have a I with model very our from fact fewer -- hospitals, it's Nick to have build from a access. for one in what when sources get by basically which a

mix on some less to that shift so And past makes rolling. periods comparisons

to overall where and helps X-wall that demographic people and the of we contribute referrals seeking I In more for hospitals of to care would think, acute care [ outside to coming see facilities more ] us. health

it follow-up what's to -- Medicare your, into the the it there comes patients? on and So comment with guess, these space I of may access community when length I some lengthening dealing these of I if the when to the I How guess around mix it strategy strategy Cap, increasing does guess, for comes stay.

continue a strategy the itself No. and word use manage that, And and remarks, to it in accordingly very feel relates as it The change doesn't on what's it. specifically basis. comfortable to approach, balanced we necessary. We'll is balanced that market-by-market opening needed my I

hospital to And is hospice our don't which we be the community importance a to operate. of so broader partners access, discount us in going an how to independent provider want there critical while continue and every as expanded for that's in

Medicare a the which in anticipate have pretty problems of material near And for level Medicare hospital-based don't real we still sure. admissions, term the Cap with high any help Cap. We

We'll put this way.

Our in that Medicare about Cap talked of that's issues length we level nationwide cap average a by driven high and driven California, really occur stay. very with by plot not static measurement. It's of reimbursement against high

we're it it cap, was suffice the short to here, wood unlikely and to its in So on say, midterm outlook ugly head. but wear knocking

may the I VITAS, on If color. helpful That's stay Okay. margin on side.

than talked So bit about less bring XX. we versus you that little guidance, items it to talk clearly, was about of kind help X some ago, margins QX that months a XX%

of guess is And margins last guess like comments But your good. the you also for that. were up around expanding I So normalizing XX%. margins which on I some explained guidance calls there VITAS the call benefits

single if your margin see forward I this you forward 'XX more like think point, margins potential opportunity above XX%, grow But levels. guidance closer that to XXXX 'XX? high you going to you said, So guess, digits, for be still, line, the there expansion going for to should margin we top about there's to getting towards still for continue is

XX.X%, very for up is bottoms XX.X% we So budgeting from guidance reasonable standpoint. think, short in provided that the the range we is the story to a

pricing, cost what operating on of is forecast business catching never to is years much means multiple up how around impossible given real marginal headwinds lagging out this the to and at Forecasting that compression there point.

get until and But you'd growth to feel we'll as rate, think then contribution out uniformly coming predictable we comes very to -- in the we contribution then that that to out up pre-pandemic I the say rate back the and be. out profit our confident as we're see was margin what marginal shakes XX.X% in, for that to last and well X how a 'XX. That seeing is thing range very levels it reference call overall point sustainable were blends XX.X% and as

it's as that we XXXX Joanna, how think important, of back little Nick are mentioned. components the important to I bit got a

So keep of sorts through of the we a But have his Nick compression pandemic seen to to and able and issues than effectively a going that significant and efficiencies wages of with out amount wage been were telehealth faster issues reimbursement. and able and garner those things. team the we've at VITAS lot our

some efficiencies, be going -- 'XX there's of some offset to other beyond. but margin to with think call of There's it's wage think expansion, increases, we've expansion. bang opportunity going those it, So be methodical big any incremental, we for kind pressures future I not and

And everything sustainability we're business, continued going near quarter marginal short-term focused maximizing on is to of do the contribution. X not

No, -- a question bit I 'XX, maybe guidance prior than Roto-Rooter. little growth. guess, to like you it like similar Why in the I on your it's so that. what sounds described less for, calls, guess it comes when I appreciate And for a long-term cost

But assume So 'XX? X% I in is a it guess, you economy, question. that I kind Like a is when pricing, of sounds of I growth I it higher I we you like think back 'XX the in bit about X-part versus that? it is little mean, after confidence snap can grow growth? to should sustainable something is to spot? kind fair different Or after years then similar gives What growth guess, how the guess faster, driver do there. guess,

if so I I where make we telephone I'll mean a just the ringing reasons mean think driving it country. it's sustained is said, never basically, inflation a really that We far had think about we period wage period, tough. a has in above gains is comments I what you I that. the the there's stopped really where Well, had suddenly. for couple Roto-Rooter. mean, reason of was

that. the that we're it's time with environment from think for say I franchises, is going is, about with What so system industry, University it's that's thing throughout mean Cincinnati. of give our out. the or that's that to Chicago available. we the macroeconomics. economists a take us when of -- honest mean this the some that patch. our that's I it's I good seeing to mean what contractors franchisees belief to to company has some that recover And you, news not. The an shifted, certainly they going tough good But in a that is small we're flesh become the to buy time, when and opportunity because to regard I be

So lining. silver that's the

Now the with looking future. to regard after

in think dust the I tough environment, this settle, more which I'm spending which problem because -- now on Google marketing a to when is marketing, sales year all continues that is we ago. than a lot we're a Google were

such But when mechanism we there's to will a for going we're have Each advantage to settles valuable and when comparative is and have advantage. those to that setting each And I guess, more us, this for afford and is water the restoration. to pay leads. price is huge a proper a a more that, the service be dust line excavation, settles, call we because broad that we for service in competitive industry call have dust drain-cleaning, plumbing, able

our so So when it rollout positioned good in mean very industry I you as we about the -- feel talk improves. very good

services how houses we number the to businesses for We small got and generally. high industry. up of apartments question the that, and provide a if Now is

what's those less are is for they're not rates than They're what formation X question sectors. that. the So -- the XX%,

a of customer stable we'll we blue-collar just to market fairly hoping be solid -- workforce. fairly be the So services aging base, patient we'll and the to take with share providing a have continued

last of year So the very January year largely continues year, business weather about she weather We unusual January the very very and to of were was December very events. through caused last from like by unusually. -- steady talk as solid roof -- first goes a issues, but Roto-Rooter, at with just be last quarter don't but of to

a and lot And of a we've get going the it's But certainly warn mentioned the as rest to so it tough we everybody year, through comparison, just be that much easier January. it's to December comparison. a through

XXXX straight is Joanna, pretty a I down we've guidance from the given think perspective, the middle. -- we've

achievable, think sentiment assumes definitely consumer it's but of the a we think it sequentially and as level on. goes improved consumer year I demand

in So little the third, the we're thinking little a in fourth. more in second a little demand a the more improvement quarter, volume

some of somewhere X% some far economic and improvement end path, performance year. the our So then sustainable fairly then a 'XX range price those demand to Google in about in And our of economic as with definitely think the and industry, the positioning probably think Kevin And positioning is when in I indicators advertising you revenue as sorts we assumed and given increases. that X% as mentioned, have beyond, improving would towards things.

question, the these for tie just for to segment comes that all last things And margin to the it Roto-Rooter. when outlook

So guess in some line assume because the improvement guidance is I 'XX top implies growing. you year-over-year

we higher X%. in margins you going drive Roto-Rooter? how the of Is X% So think time? you to grow, over should about kind enough If margins to like this said, forward

any bang are if not be will obtain there's basis But be margins again, XXX improving think as methodically big we growth. points drive top-line jump on that going to I going higher. leverage it to or XXX

that I'd doubles a jolt. a -- the that's but improvements as basis, is say a short-term kind overcome comparative jolt the mind it on jolt the it's when far the the it's in as Google And to $X as I singles first settle have bit of little does mean, it's accretive, about of marketing, talking to we -- Mike Keep to on think a all and margin. that that. more dust we're month on million we say it's spending that, a

Capital RBC next Our Instructions] the [Operator comes Hendrix question Markets. from Ben of of line

Murray This Ben. is Michael on for

on Roto-Rooter. double-clicking Just

you to in what what's see for deceleration that. And you commercial expand wanted if for And on I You your commercial expect in in do XXXX? growth could XQ. well? growth a expectations as residential pretty demand saw sizable

we by Well, it. sales below fourth commercial But we quarter let were even had couple factors of me an not think saying there the were in It's our be. -- it focus just of big But of again, of expectation. think customers commercial fourth a the that reason it to won't Roto-Rooter. are it's side. thought quarter. on mirror our a no generally, want And on emphasis an couple start area we where that it's that in a renewed our that effect there's we experience residential and it And Roto-Rooter lot didn't in the

those to and huge X.X% There's a across we're or the residential the And segments increase in at little X% each we evenly business decline in -- for that both fairly within comes see but growth segments. bit variation, of across a don't commercial service projecting both offering across fairly It's and 'XX the stable segments. anything.

confidence What that commercial you And saw continue follow-up. into in XQ a won't you gives what XXXX? Okay. just

see is know is confidence the what each managers. its making increased of me Well, can give Roto-Rooter branch I and with that emphasis

that, the I And emphasis in is Roto-Rooter just have the confidence saying so effort and yields results. type of years usually over that

they a that get magnitude, for big quickly and area store-by-store they not before, plumbing managers their very they quite not local basis basis, to maybe retailers, on idea can are and manageable, but of that that's instance, come there some to back time that these needs out from manage to us. on a figure this seen this time, We've mom-and-pop the at

this they we easy out that business had necessarily Not to instances basis store-by-store not our back saying we've then for where it come the customers of managing very us. in case, figure -- a figure have that's and is many on period that a they lost time, but small and past,

So there's but no instance, that guarantee that probably we there's potential well. for as in a this think

VITAS. And helpful. really switching That's Okay. to

So Well, program, solid outperformance you're ADC some of had else but explain of your you you're to growth your is some retention peers? growth out that and ADC had the your Obviously, pandemic. to expecting of anything see continuing softer continue. in to your peers coming competitive strategy there may have compared that

Yes.

pretty competitors, would the of degree who each the and I'll the provide cultural be commitment not same sources of referral of either local probably standpoint. with that tactful to had the a programs. X.X a the continued meet recruiting had respond things, course, with So and hiring X our to or when we've us we any of basis demand over program been the we last referral other services the full retention really was, away our combined not started. of expected allow to under catalyst complement from though, some put sources. And able that consistent thing against of on of served see it around those a continue unwavering not of umbrella lot turn at as They rather pandemic to that And catalyst, a they improvement retention that before to and that, very have on overall market-by-market effect a our strong compared from compounding some years the each

on really and an expand see is account-by-account we share allowing metrics, can our in think market it I to basis. us --

may have circumstances taken in helped enter have certain reinforce relationships regard, to but the not that with same call, new the accounts But that. our

combination feel provide 'XX So our helps that's confident always well -- that as beyond. in as guidance confidence and we very in it

well retention on lean for to a as but approaches strategy effective continuing of to not as be oversimplify and So us. market our to proving recruiting very are in the educational all out it, focusing into

right, if levels that's effect, we admit have if get nurse that factors of referrals, staffing right? don't of to program a -- waterfall able than faster a the admission like an can being the have we X in bit competitors in maybe key patient. the there's do. of some that the So we our And we to a we're feel And fully standpoint, from staffed

with So waterfall providing it's level sort the nurses not of the starts it just at care, nurse but with. a begin admission to

a don't share build. while gives and growth, we And in would great strong very be referral confidence continuing very see impediment that comfortable us we about publicly, to to the the we And methodically continue them be feel that there's to staffing, which report strength gained. only be continues

Okay. That's really helpful.

Just of Anything we VITAS earnings for saw the me. you any the that year? you this have through comments throughout year? the should margin regarding year ramp you last one expect to in Do mind? cadence And like do keep

Yes.

think reimbursement increase seen in it on I with to essentially quarter haven't and the in we quarter because falls will inflation margin bottom VITAS that. always fourth that our along because the X fourth spikes get goes line we the October -- that rate the

VITAS, in going the little improve bit hopefully, the think to demand, talked definitely as ramp. year in going particularly as sequentially, a we There's definitely opinion, as Roto-Rooter, goes to well and is, on. before increase ramping fourth So think we our at we a is quarter it's

So ramping a little of will stable. bit more little VITAS, fourth Roto-Rooter, at certainly quarter. but the that's there's quarter be best a the

you things standpoint, the workforce. probably XXXX, modeling entire at a easiest of basis, a like from year play increase which uninterrupted the on will to distribute quarter, at second the we was is And merit pandemic, back building one our quarter-by-quarter and go end because there's sequential at that into go look last our other the by to if that the award full type be of that

calendar the entire pricing Things earnings forecasted we for built in that year. have are are modeling throughout predictable quarter our things and that our of of the like between the very year. equation fourth that into all already the But course

you. do remarks. conference and the see point. would questions CEO, back I other the to turn President this to I like now for Chemed closing not Kevin McNamara Thank at queue from any

a attention. to just solid everybody had We kind I want for we quarter. thank good their thought

guidance represents blueprint for think year. I this solid our a

achievable. and we obviously, day [ And you. you I the information months more ]. three and it's about -- at for it's think this guess I Thank think for

This you conference concludes participating. call. today's for Thank

You disconnect. may now