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Q1 2021 Earnings Conference Call
spk_2: Good morning. Thank you for standing by and welcome to the commode Corporation. First quarter 2021 earnings conference call at this time. Your participant lines are to listen only mode. After the speaker's presentation, there will be a question and answer session to ask a question. During the session, you'll need to press star one on your telephone keypad. Please be advised. Today's conference is being recorded. If we require any assistance, press star zero from the operator. I would now like to hand the conference over to Sherry
spk_1: Warner with investor relations.
spk_2: Please go ahead, ma'am.
spk_1: Good morning. Our conference call this morning will review the financial results for the first quarter of 2021 ended March 31st 2021. 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 April 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. In addition, management may also discuss non gap operating performance results during today's call, including earnings before interest, taxes, depreciation, and amortization or Ebitda and adjusted Reconciliation of these non gap results is provided in the company's press release dated April 27, which is available on the company's website at K med dot com. I would now like to introduce our speakers for today. Kevin McNamara, president and chief executive officer of Kemet Corporation. Dave Williams, Executive vice president and chief financial officer of Kem Ed and Nick West Ball, president and chief executive officer of commends Vitas Healthcare Corporation subsidiary. I will now turn to call over to Kevin McNamara.
spk_0: Thank you Sherry. Good morning. Welcome to commit corporations. First quarter 2021 conference call. I will begin with highlights for the quarter and day. The Mc will follow up with some additional operating detail. I will then open up the call for questions At the outset, I would like to say, although I am very gratified by the company's results. In the first quarter, comparisons to the pandemic year of 2020 are analytically difficult. The pandemic clearly disrupted the hospice industry. The US. government stepped in to help with relaxation of sequestration and several other operational modifications. The net effect of the pandemic and the government's actions was to allow the task to report an increase in adjusted net income of 25.7 in 2020. But Vitas had a patient base in which medium length of stay fell to 11 days. Yeah, the most complex issues still facing Vitas is that disruptive impact of the pandemic has had on traditional hospice referral sources and low occupancy in senior housing. This disruption continues to impact our admissions and traditional patient census patterns. Fortunately, admissions and hospitals have largely normalized and some of our senior housing referral sources are beginning to show improvement in occupancy and related referrals. I firmly believe senior housing will recover. However, senior housing is in the early stages of recovery and we do not have enough data points to accurately predict when senior housing referrals were returned to pre pandemic levels. With that said Vitas is performing in line with our previous guidance. What do we were operating results continue to be exceptional. Strong residential plumbing and drain cleaning demand has been more than adequate to compensate for the slight weakness we continue to observe with our commercial accounts, We have now had three consecutive quarters of record demand for road residential services. Residential revenue totaled $144 million 2021. An increase of 32 When compared to the prior year quarter and a 7.2 sequential growth would compared to the fourth quarter of 2020. Commercial revenue totaled $46.9 million 8.4 decline when compared with the first quarter of 2020. Although our commercial demand has not yet normalized to pre pandemic levels, this decline has shown significant improvement when compared to the commercial unit for unit