Chemed 4th-quarter earnings drop 6 percent

CINCINNATI - Chemed Corp. said Monday its fourth-quarter profit fell 6 percent despite higher revenue from its Vitas end-of-life care segment as business in its Roto-Rooter plumbing business softened.

The company said for the quarter ending Dec. 31 it earned $19 million, or 84 cents per share. In the same period last year it earned $20.2 million, or 83 cents per share. The company had about 1.8 million more shares outstanding in the prior year period, which dilutes earnings per share.

Income from continuing operations, which excludes results from businesses that have been, or are in the process of being sold, totaled $20.1 million, or 89 cents per share. Excluding stock options costs and other items, the company said it earned 99 cents per share.

Revenue rose 2 percent to $292.2 million from $285.7 million last year.

Analysts polled by Thomson Reuters expected earnings of 91 cents per share on revenue of $297.8 million.

For the quarter, the company said in its Vitas business, net patient revenue rose 4 percent to $206 million, while in the Roto-Rooter business, revenue slid 3 percent to $86 million. The company said job count in the quarter in the plumbing and drain cleaning business fell 13 percent from the same period last year.

For the full-year the company said its profit increased to $71 million, or $3.04 per share, from $64 million, or $2.55 per share last year. Income from continuing operations in 2008 totaled $72.1 million, or $3.08 per share. Stripping out stock options expenses, the company earned $3.38 per share.

Revenue rose 4 percent to $1.15 billion, from $1.1 billion last year.

For 2009, the company predicts earnings from continuing operations of $3.70 to $3.95 per share, excluding noncash expenses for stock options, and other factors.

Analysts predict the company earns $3.36 per share.

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