DENVER, May 7, 2019 /PRNewswire/ -- DaVita Inc. (NYSE:
DVA) today announced results for the quarter ended March 31,
2019.
First quarter 2019 financial highlights:
- Consolidated revenues of $2,743
million.
- Operating income of $341
million.
|
Three months ended
March 31,
|
|
2019
|
|
2018
|
Net income
attributable to DaVita Inc.:
|
(dollars in
millions, except per share data)
|
|
Net income from
continuing operations
|
$
|
120
|
|
|
$
|
191
|
|
|
Per share
|
$
|
0.72
|
|
|
$
|
1.05
|
|
|
Adjusted net income
from continuing operations(1)
|
$
|
152
|
|
|
$
|
191
|
|
|
Per share
adjusted(1)
|
$
|
0.91
|
|
|
$
|
1.05
|
|
|
Net income
|
$
|
149
|
|
|
$
|
179
|
|
|
Per share
|
$
|
0.90
|
|
|
$
|
0.98
|
|
|
|
Three months ended
March 31,
|
|
2019
|
|
2018
|
Operating
income:
|
(dollars in
millions)
|
|
Operating
income
|
$
|
341
|
|
|
$
|
411
|
|
|
Adjusted operating
income(1)
|
$
|
382
|
|
|
$
|
411
|
|
|
|
|
|
|
|
(1)
|
For the definitions
of non-GAAP financial measures such as adjusted net income from
continuing operations attributable to DaVita Inc., see the note
titled "Note on Non-GAAP Financial Measures" and related
reconciliations below.
|
Certain items impacting the quarter:
Leases: We adopted Topic
842, Leases on January 1, 2019
through a modified retrospective approach for leases existing at
the adoption date with a cumulative effect adjustment. As a result
of the adoption of the new standard we recorded operating lease
right-of-use assets and liabilities on our consolidated balance
sheet. As of March 31, 2019, our
operating lease right-of-use assets were $2.737 billion and our operating lease
liabilities were $2.993 billion as
stated on our consolidated balance sheet.
Non-GAAP adjustments to operating income:
Goodwill impairment charge:
During the quarter ended March 31,
2019, we recognized a non-cash goodwill impairment charge of
$41 million in our Germany kidney care business. This included a
$9 million increase to the goodwill
impairment charge due to the deferred tax assets that the
impairment itself generated. The effect was a $41 million goodwill impairment charge to
operating income, a $9 million credit
to tax expense, and a net $32 million
impact on net income.
Financial and operating metrics:
|
Three months ended
March 31,
|
|
2019
|
|
2018
|
Cash
flow:
|
(dollars in
millions)
|
|
Operating cash
flow
|
$
|
141
|
|
|
$
|
363
|
|
|
Operating cash flow
from continuing operations
|
$
|
73
|
|
|
$
|
206
|
|
|
Free cash flow from
continuing operations(1)
|
$
|
(52)
|
|
|
$
|
62
|
|
|
|
|
|
|
|
(1)
|
For the definitions
of non-GAAP financial measures such as adjusted net income from
continuing operations attributable to DaVita Inc., see the note
titled "Note on Non-GAAP Financial Measures" and related
reconciliations below.
|
Volume: Total U.S. dialysis treatments for the
first quarter of 2019 were 7,297,460, or 95,267 treatments per day,
representing a per day increase of 2.9% over the first quarter of
2018. Normalized non-acquired treatment growth in the first quarter
of 2019 as compared to the first quarter of 2018 was 2.4%.
Effective income tax rate: Our effective income tax
rate on income from continuing operations was 26.3% for the three
months ended March 31, 2019. This effective income tax rate is
impacted by the amount of third party owners' income attributable
to non-tax paying entities. The effective income tax rate on income
from continuing operations attributable to DaVita Inc. was 32.0%
for the three months ended March 31, 2019.
Our effective income tax rate on income from continuing
operations attributable to DaVita Inc. for the three months ended
March 31, 2019 was also impacted by the goodwill impairment
charge mentioned previously. Excluding this item from the three
months ended March 31, 2019, our effective income tax rate on
adjusted income from continuing operations attributable to DaVita
Inc. would have been 30.1%.
Center activity: As of March 31, 2019, we
provided dialysis services to a total of approximately 228,900
patients at 2,932 outpatient dialysis centers, of which 2,689
centers were located in the United
States and 243 centers were located in nine countries
outside of the United States.
During the first quarter of 2019, we opened a total of 27 new
dialysis centers, acquired two dialysis centers and closed three
dialysis centers in the United
States. In addition, our international dialysis operations
acquired two dialysis centers outside of the United States during the first quarter of
2019.
Outlook:
The following forward-looking measures and the underlying
assumptions involve significant risks and uncertainties, including
those described below, and actual results may vary significantly
from these current forward-looking measures. We do not provide
guidance for consolidated operating income or effective tax rate on
income from continuing operations on a GAAP basis nor a
reconciliation of forward-looking non-GAAP financial measures to
the most directly comparable GAAP financial measures on a
forward-looking basis because we are unable to predict certain
items contained in the GAAP measures without unreasonable efforts.
These non-GAAP financial measures do not include certain items,
including goodwill impairment charges and foreign currency
fluctuations, any of which may be significant. The guidance for
effective income tax rate on adjusted income from continuing
operations attributable to DaVita Inc. also excludes the amount of
third party owners' income and related taxes attributable to
non-tax paying entities.
|
2019
Guidance
|
|
Low
|
|
High
|
|
(dollars in
millions)
|
Adjusted consolidated
operating income
|
$
|
1,540
|
|
|
$
|
1,640
|
|
Operating cash flow
from continuing operations
|
$
|
1,375
|
|
|
$
|
1,575
|
|
Capital expenditures
from continuing operations
|
$
|
800
|
|
|
$
|
840
|
|
Effective income tax
rate on adjusted income from continuing operations attributable to DaVita
Inc.
|
28.5
|
%
|
|
29.5
|
%
|
We will be holding a conference call to discuss our results for
the first quarter ended March 31, 2019, on May 7, 2019, at 5:00 p.m.
Eastern Time. To join the conference call, please dial (877)
918-6630 from the U.S. or (517) 308-9042 from outside the U.S., and
provide the operator the password 'Earnings'. A replay of the
conference call will be available on our website at
investors.davita.com for the following 30 days.
DaVita Inc. and its representatives may from time to time
make written and oral forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995 ("PSLRA"),
including statements in this release, filings with the Securities
and Exchange Commission ("SEC"), reports to stockholders and in
meetings with investors and analysts. All such statements in this
release, during the related presentation or other meetings, other
than statements of historical fact, are forward-looking statements
and as such are intended to be covered by the safe harbor for
"forward-looking statements" provided by the PSLRA. Without
limiting the foregoing, statements including the words "expect,"
"intend," "will," "plan," "anticipate," "believe," "we are
confident that," "forecast," "guidance," "outlook," "goals," and
similar expressions are intended to identify forward-looking
statements.
The forward-looking statements should be considered in light
of these risks and uncertainties. All forward-looking statements in
this release are based on information available to us on the date
of this release. We undertake no obligation to publicly update or
revise any of our guidance, the assessment of the underlying
assumptions or other forward-looking statements, whether as a
result of changed circumstances, new information, future events or
otherwise.
These forward-looking statements could include but are not
limited to statements related to our guidance and expectations for
our 2019 adjusted consolidated operating income, our 2019 operating
cash flows from continuing operations, our 2019 effective income
tax rate attributable to DaVita Inc., our 2019 capital expenditures
from continuing operations, our expected advocacy costs, our
expectations regarding the pending DMG sale transaction and our
expectations related to our stock repurchase program.
Our actual results could differ materially from any
forward-looking statements due to numerous factors that involve
substantial known and unknown risks and uncertainties. These risks
and uncertainties include, among other things, and are qualified in
their entirety by reference to the full text of those risk factors
in our SEC filings relating to:
- the concentration of profits generated by higher-paying
commercial payor plans for which there is continued downward
pressure on average realized payment rates, and a reduction in the
number of patients under such plans, including as a result of
restrictions or prohibitions on the use and/or availability of
charitable premium assistance, which may result in the loss of
revenues or patients, or our making incorrect assumptions about how
our patients will respond to any change in financial assistance
from charitable organizations;
- the extent to which the ongoing implementation of healthcare
exchanges or changes in or new legislation, regulations or
guidance, or enforcement thereof, including among other things
those regarding the exchanges, results in a reduction in
reimbursement rates for our services from and/or the number of
patients enrolled in higher-paying commercial plans;
- a reduction in government payment rates under the Medicare
End Stage Renal Disease program or other government-based
programs;
- the impact of the Medicare Advantage benchmark
structure;
- risks arising from potential and proposed federal and/or
state legislation, regulation or ballot or other initiatives,
including healthcare-related and labor-related legislation,
regulation or ballot or other initiatives;
- the impact of the changing political environment and related
developments on the current healthcare marketplace and on our
business, including with respect to the future of the Affordable
Care Act, the exchanges and many other core aspects of the current
health care marketplace;
- changes in pharmaceutical practice patterns, reimbursement
and payment policies and processes, or pharmaceutical pricing,
including with respect to calcimimetics;
- legal compliance risks, such as our continued compliance
with complex government regulations and the provisions of our
current corporate integrity agreement and current or potential
investigations by various government entities and related
government or private-party proceedings, and restrictions on our
business and operations required by our corporate integrity
agreement and other current or potential settlement terms and the
financial impact thereof and our ability to recover any losses
related to such legal matters from third parties;
- continued increased competition from dialysis providers and
others, and other potential marketplace changes;
- our ability to reduce administrative expenses while
maintaining targeted levels of service and operating performance,
including our ability to achieve anticipated savings from our
recent restructurings;
- our ability to maintain contracts with physician medical
directors, changing affiliation models for physicians, and the
emergence of new models of care introduced by the government or
private sector that may erode our patient base and reimbursement
rates, such as accountable care organizations, independent practice
associations and integrated delivery systems;
- our ability to complete acquisitions, mergers or
dispositions that we might announce or be considering, on terms
favorable to us or at all, or to integrate and successfully operate
any business we may acquire or have acquired, or to successfully
expand our operations and services in markets outside the United States, or to businesses outside of
dialysis;
- noncompliance by us or our business associates with any
privacy laws or any security breach by us or a third party
involving the misappropriation, loss or other unauthorized use or
disclosure of confidential information;
- the variability of our cash flows;
- the risk that we may not be able to generate sufficient cash
in the future to service our indebtedness or to fund our other
liquidity needs, and the risk that we may not be able to refinance
our indebtedness as it becomes due, on terms favorable to us or at
all;
- factors that may impact our ability to repurchase stock
under our stock repurchase program and the timing of any such stock
repurchases, including market conditions, the price of our common
stock, our cash flow position, borrowing capacity and leverage
ratios, and legal, regulatory and contractual
requirements;
- the risk that we might invest material amounts of capital
and incur significant costs in connection with the growth and
development of our international operations, yet we might not be
able to consistently operate them profitably anytime soon, if at
all;
- risks arising from the use of accounting estimates,
judgments and interpretations in our financial statements;
- impairment of our goodwill, investments or other assets,
including the risk that we may recognize additional valuation
adjustments or goodwill impairment related to DMG;
- the risks and uncertainties associated with the timing,
conditions and receipt of regulatory approvals and satisfaction of
other closing conditions of the DMG sale transaction and continued
disruption in connection with the DMG sale transaction making it
more difficult to maintain business and operational
relationships;
- risks and uncertainties related to our ability to complete
the DMG sale transaction on the timetable expected, and on the
terms set forth in the equity purchase agreement or at
all;
- uncertainties related to our liquidity following the close
of the DMG sale transaction and our planned subsequent entry into
new external financing arrangements, which may be less than we
anticipate;
- uncertainties related to our use of the proceeds from the
DMG sale transaction and other available funds, including external
financing and cash flow from operations, which may be used in ways
that may not improve our results of operations or enhance the value
of our common stock;
- risks related to certain contractual restrictions on the
conduct of DMG's business while the DMG sale transaction is
pending;
- the risk that laws regulating the corporate practice of
medicine could restrict the manner in which DMG conducts its
business;
- the risk that the cost of providing services under DMG's
agreements may exceed our compensation;
- the risk that any reductions in reimbursement rates,
including Medicare Advantage rates, and future regulations may
negatively impact DMG's business, revenue and
profitability;
- the risk that DMG may not be able to successfully establish
a presence in new geographic regions or successfully address
competitive threats that could reduce its profitability;
- the risk that a disruption in DMG's healthcare provider
networks could have an adverse effect on DMG's business operations
and profitability;
- the risk that reductions in the quality ratings of health
plans DMG serves or healthcare services that DMG provides could
have an adverse effect on DMG's business;
- the risk that health plans that acquire health maintenance
organizations may not be willing to contract with DMG or may be
willing to contract only on less favorable terms; and
- the risk factors set forth in our most recent quarterly
report on Form 10-Q or annual report on Form 10-K, as applicable,
and the other risks and uncertainties discussed in any subsequent
reports that we file or furnish to the SEC from time to
time.
Contact:
|
Jim
Gustafson
|
|
Investor
Relations
|
|
DaVita
Inc.
|
|
(310)
536-2585
|
DAVITA
INC.
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(unaudited)
|
(dollars in
thousands, except per share data)
|
|
|
Three
months ended
March 31,
|
|
2019
|
|
2018
|
Dialysis and related
lab patient service revenues
|
$
|
2,635,152
|
|
|
$
|
2,591,074
|
|
Provision for
uncollectible accounts
|
(5,463)
|
|
|
25,545
|
|
Net dialysis and
related lab patient service revenues
|
2,629,689
|
|
|
2,616,619
|
|
Other
revenues
|
113,423
|
|
|
232,825
|
|
Total
revenues
|
2,743,112
|
|
|
2,849,444
|
|
Operating expenses
and charges:
|
|
|
|
Patient care
costs
|
1,964,935
|
|
|
2,035,585
|
|
General and
administrative
|
250,813
|
|
|
266,529
|
|
Depreciation and
amortization
|
148,528
|
|
|
142,799
|
|
Equity investment
loss
|
(2,708)
|
|
|
(155)
|
|
Provision for
uncollectible accounts
|
—
|
|
|
(6,000)
|
|
Goodwill impairment
charges
|
41,037
|
|
|
—
|
|
Total operating
expenses and charges
|
2,402,605
|
|
|
2,438,758
|
|
Operating
income
|
340,507
|
|
|
410,686
|
|
Debt
expense
|
(131,519)
|
|
|
(113,516)
|
|
Other income,
net
|
6,940
|
|
|
4,582
|
|
Income from
continuing operations before income taxes
|
215,928
|
|
|
301,752
|
|
Income tax
expense
|
56,746
|
|
|
70,737
|
|
Net income from
continuing operations
|
159,182
|
|
|
231,015
|
|
Net income (loss)
from discontinued operations, net of tax
|
30,305
|
|
|
(5,786)
|
|
Net income
|
189,487
|
|
|
225,229
|
|
Less: Net income
attributable to noncontrolling interests
|
(40,198)
|
|
|
(46,543)
|
|
Net income
attributable to DaVita Inc.
|
$
|
149,289
|
|
|
$
|
178,686
|
|
Earnings per share
attributable to DaVita Inc.:
|
|
|
|
Basic net income from
continuing operations per share
|
$
|
0.72
|
|
|
$
|
1.07
|
|
Basic net income per
share
|
$
|
0.90
|
|
|
$
|
1.00
|
|
Diluted net income
from continuing operations per share
|
$
|
0.72
|
|
|
$
|
1.05
|
|
Diluted net income
per share
|
$
|
0.90
|
|
|
$
|
0.98
|
|
Weighted average
shares for earnings per share:
|
|
|
|
Basic
|
166,387,958
|
|
|
178,957,865
|
|
Diluted
|
166,780,657
|
|
|
181,834,547
|
|
Amounts
attributable to DaVita Inc.:
|
|
|
|
Net income from
continuing operations
|
$
|
120,254
|
|
|
$
|
191,015
|
|
Net income (loss)
from discontinued operations
|
29,035
|
|
|
(12,329)
|
|
Net income
attributable to DaVita Inc.
|
$
|
149,289
|
|
|
$
|
178,686
|
|
DAVITA
INC.
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
|
(unaudited)
|
(dollars in
thousands)
|
|
|
Three
months ended
March 31,
|
|
2019
|
|
2018
|
Net income
|
$
|
189,487
|
|
|
$
|
225,229
|
|
Other comprehensive
income, net of tax:
|
|
|
|
Unrealized (losses)
gains on interest rate cap agreements:
|
|
|
|
Unrealized (losses)
gains
|
(580)
|
|
|
1,050
|
|
Reclassifications of
net realized losses into net income
|
1,606
|
|
|
1,537
|
|
Unrealized (losses)
gains on foreign currency translation:
|
|
|
|
Foreign currency
translation adjustments
|
(13,653)
|
|
|
19,881
|
|
Other comprehensive
(loss) income
|
(12,627)
|
|
|
22,468
|
|
Total comprehensive
income
|
176,860
|
|
|
247,697
|
|
Less: Comprehensive
income attributable to noncontrolling interests
|
(40,198)
|
|
|
(46,543)
|
|
Comprehensive income
attributable to DaVita Inc.
|
$
|
136,662
|
|
|
$
|
201,154
|
|
DAVITA
INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(unaudited)
|
(dollars in
thousands)
|
|
|
Three
months ended
March 31,
|
|
2019
|
|
2018
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
$
|
189,487
|
|
|
$
|
225,229
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
148,528
|
|
|
142,799
|
|
Impairment
charges
|
41,037
|
|
|
—
|
|
Stock-based
compensation expense
|
12,110
|
|
|
9,685
|
|
Deferred income
taxes
|
41,372
|
|
|
43,617
|
|
Equity investment
(loss) income, net
|
(337)
|
|
|
3,564
|
|
Other non-cash
charges, net
|
1,720
|
|
|
9,959
|
|
Changes in operating
assets and liabilities, net of effect of acquisitions and
divestitures:
|
|
|
|
Accounts
receivable
|
(132,292)
|
|
|
(63,701)
|
|
Inventories
|
3,324
|
|
|
57,621
|
|
Other receivables and
other current assets
|
1,199
|
|
|
(34,120)
|
|
Other long-term
assets
|
(1,997)
|
|
|
2,054
|
|
Accounts
payable
|
(38,537)
|
|
|
(62,830)
|
|
Accrued compensation
and benefits
|
(173,583)
|
|
|
(62,550)
|
|
Other current
liabilities
|
17,236
|
|
|
49,379
|
|
Income
taxes
|
32,502
|
|
|
30,772
|
|
Other long-term
liabilities
|
(465)
|
|
|
11,061
|
|
Net cash provided by
operating activities
|
141,304
|
|
|
362,539
|
|
Cash flows from
investing activities:
|
|
|
|
Additions of property
and equipment
|
(198,878)
|
|
|
(232,443)
|
|
Acquisitions
|
(11,274)
|
|
|
(16,582)
|
|
Proceeds from asset
and business sales
|
13,903
|
|
|
18,535
|
|
Purchase of other
debt and equity investments
|
(3,290)
|
|
|
(2,646)
|
|
Purchase of
investments held-to-maturity
|
(209)
|
|
|
(3,586)
|
|
Proceeds from sale of
other debt and equity investments
|
3,302
|
|
|
5,151
|
|
Proceeds from
investments held-to-maturity
|
—
|
|
|
31,454
|
|
Purchase of equity
investments
|
(4,067)
|
|
|
(2,476)
|
|
Distributions
received on equity investments
|
155
|
|
|
2,465
|
|
Net cash used in
investing activities
|
(200,358)
|
|
|
(200,128)
|
|
Cash flows from
financing activities:
|
|
|
|
Borrowings
|
17,133,464
|
|
|
13,306,898
|
|
Payments on long-term
debt and other financing costs
|
(16,776,267)
|
|
|
(13,202,225)
|
|
Purchase of treasury
stock
|
—
|
|
|
(290,377)
|
|
Distributions to
noncontrolling interests
|
(44,230)
|
|
|
(45,467)
|
|
Stock award exercises
and other share issuances, net
|
1,517
|
|
|
(1,185)
|
|
Contributions from
noncontrolling interests
|
18,947
|
|
|
12,009
|
|
Purchases of
noncontrolling interests
|
(8,480)
|
|
|
(2,200)
|
|
Net cash provided by
(used in) financing activities
|
324,951
|
|
|
(222,547)
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
(921)
|
|
|
6,668
|
|
Net increase
(decrease) in cash, cash equivalents and restricted cash
|
264,976
|
|
|
(53,468)
|
|
Less: Net increase in
cash, cash equivalents and restricted cash from discontinued
operations
|
118,962
|
|
|
17,834
|
|
Net increase
(decrease) in cash, cash equivalents and restricted cash from
continuing operations
|
146,014
|
|
|
(71,302)
|
|
Cash, cash
equivalents and restricted cash of continuing operations at
beginning of the year
|
415,420
|
|
|
518,920
|
|
Cash, cash
equivalents and restricted cash of continuing operations at end of
the period
|
$
|
561,434
|
|
|
$
|
447,618
|
|
DAVITA
INC.
|
CONSOLIDATED
BALANCE SHEETS
|
(unaudited)
|
(dollars in
thousands, except share data)
|
|
|
March 31,
2019
|
|
December 31,
2018
|
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$
|
459,242
|
|
|
$
|
323,038
|
|
Restricted cash and
equivalents
|
102,192
|
|
|
92,382
|
|
Short-term
investments
|
4,035
|
|
|
2,935
|
|
Accounts receivable,
net
|
1,953,422
|
|
|
1,858,608
|
|
Inventories
|
104,236
|
|
|
107,381
|
|
Other
receivables
|
489,581
|
|
|
469,796
|
|
Income tax
receivable
|
42,650
|
|
|
68,614
|
|
Prepaid and other
current assets
|
64,770
|
|
|
111,840
|
|
Current assets held
for sale, net
|
6,004,948
|
|
|
5,389,565
|
|
Total current
assets
|
9,225,076
|
|
|
8,424,159
|
|
Property and
equipment, net of accumulated depreciation of $3,538,992 and
$3,524,098
|
3,392,266
|
|
|
3,393,669
|
|
Operating lease
right-of-use assets
|
2,736,536
|
|
|
—
|
|
Intangible assets,
net of accumulated amortization of $82,265 and $80,566
|
118,324
|
|
|
118,846
|
|
Equity method and
other investments
|
226,309
|
|
|
224,611
|
|
Long-term
investments
|
34,414
|
|
|
35,424
|
|
Other long-term
assets
|
73,651
|
|
|
71,583
|
|
Goodwill
|
6,799,368
|
|
|
6,841,960
|
|
|
$
|
22,605,944
|
|
|
$
|
19,110,252
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Accounts
payable
|
$
|
365,192
|
|
|
$
|
463,270
|
|
Other
liabilities
|
572,944
|
|
|
595,850
|
|
Accrued compensation
and benefits
|
495,327
|
|
|
658,913
|
|
Current portion of
operating leases liabilities
|
367,413
|
|
|
—
|
|
Current portion of
long-term debt
|
4,676,691
|
|
|
1,929,369
|
|
Current liabilities
held for sale
|
1,753,310
|
|
|
1,243,759
|
|
Total current
liabilities
|
8,230,877
|
|
|
4,891,161
|
|
Long-term operating
leases liabilities
|
2,625,776
|
|
|
—
|
|
Long-term
debt
|
5,787,013
|
|
|
8,172,847
|
|
Other long-term
liabilities
|
143,756
|
|
|
450,669
|
|
Deferred income
taxes
|
588,805
|
|
|
562,536
|
|
Total
liabilities
|
17,376,227
|
|
|
14,077,213
|
|
Commitments and
contingencies:
|
|
|
|
Noncontrolling
interests subject to put provisions
|
1,143,044
|
|
|
1,124,641
|
|
Equity:
|
|
|
|
Preferred stock
($0.001 par value, 5,000,000 shares authorized; none
issued)
|
—
|
|
|
—
|
|
Common stock ($0.001
par value, 450,000,000 shares authorized; 166,396,147 and
166,387,307 shares issued and outstanding, respectively)
|
166
|
|
|
166
|
|
Additional paid-in
capital
|
990,380
|
|
|
995,006
|
|
Retained
earnings
|
2,932,359
|
|
|
2,743,194
|
|
Accumulated other
comprehensive loss
|
(47,551)
|
|
|
(34,924)
|
|
Total DaVita Inc.
shareholders' equity
|
3,875,354
|
|
|
3,703,442
|
|
Noncontrolling
interests not subject to put provisions
|
211,319
|
|
|
204,956
|
|
Total
equity
|
4,086,673
|
|
|
3,908,398
|
|
|
$
|
22,605,944
|
|
|
$
|
19,110,252
|
|
DAVITA
INC.
|
SUPPLEMENTAL
FINANCIAL DATA
|
(unaudited)
|
(dollars in
millions, except for per share and per treatment
data)
|
|
|
Three months
ended
|
|
March 31,
2019
|
|
December 31,
2018
|
|
March 31,
2018
|
1. Consolidated
Business Metrics:
|
|
|
|
|
|
Operating income
margin
|
12.4
|
%
|
|
13.8
|
%
|
|
14.4
|
%
|
Adjusted operating
income margin excluding certain items(1)(5)
|
13.9
|
%
|
|
13.1
|
%
|
|
14.4
|
%
|
General and
administrative expenses as a percent of consolidated
revenues(2)
|
9.1
|
%
|
|
9.5
|
%
|
|
9.4
|
%
|
Effective income tax
rate on income from continuing operations
|
26.3
|
%
|
|
20.0
|
%
|
|
23.4
|
%
|
Effective income tax
rate on income from continuing operations attributable to
DaVita Inc.(1)
|
32.0
|
%
|
|
24.3
|
%
|
|
27.0
|
%
|
Effective income tax
rate on adjusted income from continuing operations attributable to
DaVita Inc.(1)
|
30.1
|
%
|
|
23.1
|
%
|
|
27.0
|
%
|
|
|
|
|
|
|
2. Summary of
Division Financial Results:
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
U.S. net dialysis and
related lab patient services and other
|
$
|
2,547
|
|
|
$
|
2,633
|
|
|
$
|
2,538
|
|
Other—Ancillary
services and strategic initiatives
|
|
|
|
|
|
U.S. other
|
109
|
|
|
100
|
|
|
237
|
|
International net
dialysis patient service and other
|
120
|
|
|
124
|
|
|
103
|
|
|
230
|
|
|
224
|
|
|
340
|
|
Eliminations
|
(34)
|
|
|
(35)
|
|
|
(29)
|
|
Total consolidated
revenues
|
$
|
2,743
|
|
|
$
|
2,821
|
|
|
$
|
2,849
|
|
Operating income
(loss)
|
|
|
|
|
|
U.S. dialysis and
related lab services
|
$
|
417
|
|
|
$
|
437
|
|
|
$
|
433
|
|
Other—Ancillary
services and strategic initiatives
|
|
|
|
|
|
U.S.
|
(15)
|
|
|
(19)
|
|
|
(5)
|
|
International
|
(43)
|
|
|
(10)
|
|
|
(2)
|
|
|
(58)
|
|
|
(29)
|
|
|
(7)
|
|
Corporate
administrative support
|
(19)
|
|
|
(20)
|
|
|
(16)
|
|
Total consolidated
operating income
|
$
|
341
|
|
|
$
|
388
|
|
|
$
|
411
|
|
DAVITA
INC.
|
SUPPLEMENTAL
FINANCIAL DATA - continued
|
(unaudited)
|
(dollars in
millions, except for per share and per treatment
data)
|
|
|
Three months
ended
|
|
March 31,
2019
|
|
December 31,
2018
|
|
March 31,
2018
|
3. Summary of
Reportable Segment Financial Results:
|
|
|
|
|
|
U.S. Dialysis
and Related Lab Services
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
Net dialysis and
related lab patient service revenues
|
$
|
2,542
|
|
|
$
|
2,628
|
|
|
$
|
2,533
|
|
Other
revenues
|
5
|
|
|
5
|
|
|
5
|
|
Total operating
revenues
|
2,547
|
|
|
2,633
|
|
|
2,538
|
|
Operating
expenses:
|
|
|
|
|
|
Patient care
costs
|
1,797
|
|
|
1,872
|
|
|
1,779
|
|
General and
administrative
|
197
|
|
|
210
|
|
|
196
|
|
Depreciation and
amortization
|
141
|
|
|
147
|
|
|
135
|
|
Equity investment
income
|
(5)
|
|
|
(5)
|
|
|
(5)
|
|
Gain on changes in
ownership interests, net
|
—
|
|
|
(28)
|
|
|
—
|
|
Total operating
expenses
|
2,130
|
|
|
2,196
|
|
|
2,105
|
|
Segment operating
income
|
$
|
417
|
|
|
$
|
437
|
|
|
$
|
433
|
|
Reconciliation for
non-GAAP measure:
|
|
|
|
|
|
Gain on changes in
ownership interests, net
|
—
|
|
|
(28)
|
|
|
—
|
|
Adjusted segment
operating income(1)
|
$
|
417
|
|
|
$
|
409
|
|
|
$
|
433
|
|
|
|
|
|
|
|
4. U.S.
Dialysis and Related Lab Services Business
Metrics:
|
|
|
|
|
|
Volume
|
|
|
|
|
|
Treatments
|
7,297,460
|
|
|
7,552,412
|
|
|
7,174,026
|
|
Number of treatment
days
|
76.6
|
|
|
79.4
|
|
|
77.5
|
|
Treatments per
day
|
95,267
|
|
|
95,119
|
|
|
92,568
|
|
Per day year over year
increase
|
2.9
|
%
|
|
3.1
|
%
|
|
4.8
|
%
|
Normalized
non-acquired treatment growth year over year
|
2.4
|
%
|
|
2.6
|
%
|
|
3.4
|
%
|
Operating net
revenues
|
|
|
|
|
|
Dialysis and related
lab services net revenue per treatment
|
$
|
348.37
|
|
|
$
|
347.97
|
|
|
$
|
353.05
|
|
Expenses
|
|
|
|
|
|
Patient care costs per
treatment
|
$
|
246.29
|
|
|
$
|
247.81
|
|
|
$
|
248.02
|
|
General and
administrative expenses per treatment
|
$
|
27.00
|
|
|
$
|
27.86
|
|
|
$
|
27.28
|
|
Accounts
receivable
|
|
|
|
|
|
Net
receivables
|
$
|
1,794
|
|
|
$
|
1,703
|
|
|
$
|
1,620
|
|
DSO
|
64
|
|
|
60
|
|
|
59
|
|
|
|
|
|
|
|
5. Discontinued
Operations:
|
|
|
|
|
|
Operating
results
|
|
|
|
|
|
Net
revenues
|
$
|
1,382
|
|
|
$
|
1,231
|
|
|
$
|
1,228
|
|
Expenses
|
1,338
|
|
|
1,282
|
|
|
1,226
|
|
Valuation
adjustment
|
—
|
|
|
219
|
|
|
—
|
|
Goodwill impairment
charges
|
—
|
|
|
42
|
|
|
—
|
|
Income (loss) from
discontinued operations before taxes
|
44
|
|
|
(313)
|
|
|
2
|
|
Income tax expense
(benefit)
|
14
|
|
|
(3)
|
|
|
7
|
|
Net income (loss)
from discontinued operations, net of tax
|
$
|
30
|
|
|
$
|
(309)
|
|
|
$
|
(6)
|
|
DAVITA
INC.
|
SUPPLEMENTAL
FINANCIAL DATA - continued
|
(unaudited)
|
(dollars in
millions, except for per share and per treatment
data)
|
|
|
Three months
ended
|
|
March 31,
2019
|
|
December 31,
2018
|
|
March 31,
2018
|
6. Cash
Flow:
|
|
|
|
|
|
Operating cash
flow
|
$
|
141
|
|
|
$
|
389
|
|
|
$
|
363
|
|
Operating cash flow
from continuing operations
|
$
|
73
|
|
|
$
|
307
|
|
|
$
|
206
|
|
Operating cash flow
from continuing operations, last twelve months
|
$
|
1,348
|
|
|
$
|
1,481
|
|
|
$
|
993
|
|
Free cash flow from
continuing operations(1)
|
$
|
(52)
|
|
|
$
|
112
|
|
|
$
|
62
|
|
Free cash flow from
continuing operations, last twelve months(1)
|
$
|
756
|
|
|
$
|
869
|
|
|
$
|
447
|
|
Capital expenditures
from continuing operations:
|
|
|
|
|
|
Routine
maintenance/IT/other
|
$
|
80
|
|
|
$
|
139
|
|
|
$
|
99
|
|
Development and
relocations
|
$
|
99
|
|
|
$
|
123
|
|
|
$
|
102
|
|
Acquisition
expenditures
|
$
|
10
|
|
|
$
|
65
|
|
|
$
|
16
|
|
Proceeds from sale of
self-developed properties
|
$
|
12
|
|
|
$
|
13
|
|
|
$
|
18
|
|
|
|
|
|
|
|
7. Debt and
Capital Structure:
|
|
|
|
|
|
Total
debt(3)(4)
|
$
|
10,512
|
|
|
$
|
10,154
|
|
|
$
|
9,526
|
|
Net debt, net of cash
and cash equivalents(3)(4)
|
$
|
10,053
|
|
|
$
|
9,831
|
|
|
$
|
9,167
|
|
Leverage ratio (see
the note titled "Calculation of the Leverage Ratio")
|
4.62x
|
|
|
4.52x
|
|
|
3.75x
|
|
Weighted average
effective interest rate:
|
|
|
|
|
|
During the
quarter
|
5.16
|
%
|
|
5.07
|
%
|
|
4.87
|
%
|
At end of the
quarter
|
5.14
|
%
|
|
5.19
|
%
|
|
4.98
|
%
|
On the senior secured
credit facilities at end of the quarter
|
5.00
|
%
|
|
5.11
|
%
|
|
4.67
|
%
|
Debt with fixed and
capped rates as a percentage of total debt:
|
|
|
|
|
|
Debt with rates fixed
by its terms
|
46
|
%
|
|
48
|
%
|
|
51
|
%
|
Debt with rates fixed
or capped by cap agreements
|
79
|
%
|
|
82
|
%
|
|
88
|
%
|
Share
repurchases
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
298
|
|
Total number of shares
repurchased
|
—
|
|
|
—
|
|
|
4,197,304
|
|
|
Certain columns, rows
or percentages may not sum or recalculate due to the use of rounded
numbers.
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
These are non-GAAP
financial measures. For a reconciliation of these non-GAAP
financial measures to their most comparable measure calculated and
presented in accordance with GAAP, and for a definition of adjusted
amounts, see attached reconciliation schedules.
|
(2)
|
General and
administrative expenses includes certain corporate support,
long-term incentive compensation and advocacy costs.
|
(3)
|
The reported balance
sheet amounts at March 31, 2019, December 31, 2018 and March 31,
2018, exclude $48.5 million, $52.0 million and $62.0 million,
respectively, of a debt discount associated with our Term Loan B
and other deferred financing costs. The reported balance sheet
amounts exclude DMG debt which is classified as held for sale
liabilities for all periods presented.
|
(4)
|
The reported total
debt and net debt, net of cash and cash equivalents, excludes DMG
cash and debt classified as held for sale assets and liabilities,
respectively, for all periods presented.
|
(5)
|
Adjusted operating
income margin is a calculation of adjusted operating income divided
by consolidated revenues.
|
DAVITA INC.
SUPPLEMENTAL FINANCIAL
DATA-continued
(unaudited)
(dollars in
thousands)
Note 1: Calculation of the Leverage Ratio
Under the senior secured credit facilities (Credit Agreement),
the leverage ratio is defined as all funded debt plus the face
amount of all letters of credit issued, minus cash and cash
equivalents, including short-term investments, divided by
"Consolidated EBITDA". The leverage ratio determines the interest
rate margin payable by the Company for its Term Loan A and
revolving line of credit under the Credit Agreement by establishing
the margin over the base interest rate (LIBOR) that is applicable.
The following leverage ratio was calculated using "Consolidated
EBITDA" as defined in the Credit Agreement. The calculation below
is based on the last twelve months of "Consolidated EBITDA", pro
forma for routine acquisitions that occurred during the period. The
Company's management believes the presentation of "Consolidated
EBITDA" is useful to users to enhance their understanding of the
Company's leverage ratio under its Credit Agreement. The leverage
ratio calculated by the Company is a non-GAAP measure and should
not be considered a substitute for debt to net income attributable
to DaVita Inc., net income attributable to DaVita Inc. or total
debt as determined in accordance with United States generally accepted accounting
principles (GAAP). As allowed by the Credit Agreement, the
Company has elected to calculate debt using the existing GAAP in
place at the commencement of the Credit Agreement; therefore, the
Company has not adjusted its debt balance to include the lease
liabilities under ASC Topic 842. The Company's calculation of its
leverage ratio might not be calculated in the same manner as, and
thus might not be comparable to, similarly titled measures by other
companies.
|
Rolling twelve
months ended
|
|
March 31,
2019
|
|
December 31,
2018
|
|
March 31,
2018
|
Net income
attributable to DaVita Inc.
|
$
|
129,997
|
|
|
$
|
159,394
|
|
|
$
|
394,607
|
|
Income
taxes
|
350,689
|
|
|
358,168
|
|
|
(250,715)
|
|
Interest
expense
|
462,877
|
|
|
451,251
|
|
|
407,239
|
|
Depreciation and
amortization
|
596,764
|
|
|
591,035
|
|
|
730,077
|
|
Impairment
charges
|
103,018
|
|
|
61,981
|
|
|
942,223
|
|
Noncontrolling
interests and equity investment income, net
|
173,609
|
|
|
183,855
|
|
|
193,007
|
|
Stock-settled
stock-based compensation
|
75,489
|
|
|
73,081
|
|
|
35,097
|
|
Gain on changes in
ownership interest, net
|
(85,699)
|
|
|
(85,699)
|
|
|
(17,129)
|
|
Valuation adjustment
on disposal group
|
316,840
|
|
|
316,840
|
|
|
—
|
|
Other
|
22,712
|
|
|
41,084
|
|
|
1,552
|
|
"Consolidated
EBITDA"
|
$
|
2,146,296
|
|
|
$
|
2,150,990
|
|
|
$
|
2,435,958
|
|
|
|
|
|
|
|
|
March 31,
2019
|
|
December 31,
2018
|
|
March 31,
2018
|
Total debt, excluding
debt discount and other deferred financing
costs(1)
|
$
|
10,548,104
|
|
|
$
|
10,190,763
|
|
|
$
|
9,563,255
|
|
Letters of credit
issued
|
79,099
|
|
|
36,987
|
|
|
36,917
|
|
|
10,627,203
|
|
|
10,227,750
|
|
|
9,600,172
|
|
Less: Cash and cash
equivalents including short-term investments (excluding DMG's
physician owned entities cash)
|
(710,603)
|
|
|
(501,695)
|
|
|
(470,088)
|
|
Consolidated net
debt
|
$
|
9,916,600
|
|
|
$
|
9,726,055
|
|
|
$
|
9,130,084
|
|
Last twelve months
"Consolidated EBITDA"
|
$
|
2,146,296
|
|
|
$
|
2,150,990
|
|
|
$
|
2,435,958
|
|
Leverage
ratio
|
4.62x
|
|
|
4.52x
|
|
|
3.75x
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The reported total
debt amounts at March 31, 2019, December 31, 2018 and March 31,
2018, exclude $48.5 million, $52.0 million and $62.0 million,
respectively, of a debt discount associated with our Term Loan B
and other deferred financing costs.
|
In accordance with the Credit Agreement, the Company's
leverage ratio cannot exceed 5.00 to 1.00 as of March 31,
2019. At that date the Company's leverage ratio did not exceed 5.00
to 1.00.
DAVITA INC.
RECONCILIATIONS FOR
NON-GAAP MEASURES
(unaudited)
Note on Non-GAAP Financial Measures
As used in this press release, the term "adjusted" refers to
non-GAAP measures as follows, each as reconciled to its most
comparable GAAP measure as presented in the non-GAAP
reconciliations in the notes to this press release: (i) for income
measures, the term "adjusted" refers to operating performance
measures that exclude certain items such as impairment charges,
(gain) loss on ownership changes, restructuring charges, and gains
and charges associated with settlements; and (ii) the term
"effective income tax rate on adjusted income from continuing
operations attributable to DaVita Inc." represents the Company's
effective tax rate excluding applicable non-GAAP items and
noncontrolling owners' income, which primarily relates to non-tax
paying entities.
These non-GAAP or "adjusted" measures are presented because
management believes these measures are useful adjuncts to GAAP
results. However, these non-GAAP measures should not be considered
alternatives to the corresponding measures determined under
GAAP.
Specifically, we use adjusted operating income, adjusted net
income from continuing operations attributable to DaVita Inc. and
adjusted diluted net income from continuing operations per share
attributable to DaVita Inc. to compare and evaluate our performance
period over period and relative to competitors, to analyze the
underlying trends in our business, to establish operational budgets
and forecasts and for incentive compensation purposes. We believe
these non-GAAP measures are useful to management, investors and
analysts in evaluating our performance over time and relative to
competitors, as well as in analyzing the underlying trends in our
business. We also believe these presentations enhance a user's
understanding of our normal consolidated operating income by
excluding certain items which we do not believe are indicative of
our ordinary results of operations. As a result, adjusting for
these amounts allows for comparison to our normalized prior period
results.
In addition, the effective income tax rate on income from
continuing operations attributable to DaVita Inc. excludes
noncontrolling owners' income, which primarily relates to non-tax
paying entities, and the effective income tax rate on adjusted
income from continuing operations attributable to DaVita Inc.
excludes noncontrolling owners' income and certain non-deductible
and other charges which we do not believe are indicative of our
ordinary results. Accordingly, we believe these adjusted effective
income tax rates are useful to management, investors and analysts
in evaluating our performance and establishing expectations for
income taxes incurred on our ordinary results attributable to
DaVita Inc.
Finally, free cash flow from continuing operations represents
net cash provided by operating activities from continuing
operations less distributions to noncontrolling interests and
capital expenditures for routine maintenance and information
technology from continuing operations. We believe this non-GAAP
measure is useful to management, investors and analysts as an
adjunct to cash flows from operating activities from continuing
operations and other measures under GAAP, since free cash flow from
continuing operations is meaningful for assessing our ability to
fund acquisition and development activities and meet our debt
service obligations.
It is important to bear in mind that these non-GAAP "adjusted"
measures are not measures of financial performance or liquidity
under GAAP and should not be considered in isolation from, nor as
substitutes for, their most comparable GAAP measures.
The following Notes 2 through 5 provide reconciliations of the
non-GAAP financial measures presented in this press release to
their most comparable GAAP measures.
DAVITA INC.
RECONCILIATIONS FOR
NON-GAAP MEASURES -
continued
(unaudited)
(dollars in thousands,
except for per share data)
Note 2: Adjusted net income from
continuing operations and adjusted diluted net income from
continuing operations per share attributable to DaVita Inc.
|
Three months
ended
|
|
March 31,
2019
|
|
December 31,
2018
|
|
March 31,
2018
|
|
Dollars
|
|
Per
share
|
|
Dollars
|
|
Per
share
|
|
Dollars
|
|
Per
share
|
Net income from
continuing operations attributable to DaVita Inc.
|
$
|
120,254
|
|
|
$
|
0.72
|
|
|
$
|
160,332
|
|
|
$
|
0.96
|
|
|
$
|
191,015
|
|
|
$
|
1.05
|
|
Operating
charges:
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill impairment
charges
|
41,037
|
|
|
0.25
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Gain on changes in
ownership interests, net
|
—
|
|
|
—
|
|
|
(28,152)
|
|
|
(0.17)
|
|
|
—
|
|
|
—
|
|
Equity investment
loss (income):
|
|
|
|
|
|
|
|
|
|
|
|
Loss due to business
sale in APAC JV
|
—
|
|
|
—
|
|
|
8,715
|
|
|
0.05
|
|
|
—
|
|
|
—
|
|
Loss due to
impairments in APAC JV
|
—
|
|
|
—
|
|
|
1,530
|
|
|
0.01
|
|
|
—
|
|
|
—
|
|
Related income
tax
|
(8,865)
|
|
|
(0.05)
|
|
|
6,719
|
|
|
0.04
|
|
|
—
|
|
|
—
|
|
Adjusted net income
from continuing operations attributable to DaVita Inc.
|
$
|
152,426
|
|
|
$
|
0.91
|
|
|
$
|
149,144
|
|
|
$
|
0.90
|
|
|
$
|
191,015
|
|
|
$
|
1.05
|
|
|
Certain columns or
rows may not sum or recalculate due to the use of rounded
numbers.
|
DAVITA INC.
RECONCILIATIONS FOR
NON-GAAP MEASURES -
continued
(unaudited)
(dollars in
thousands)
Note 3: Adjusted operating income
|
Three months
ended
|
|
March 31,
2019
|
|
December 31,
2018
|
|
March 31,
2018
|
Consolidated:
|
|
|
|
|
|
Operating
income
|
$
|
340,507
|
|
|
$
|
387,908
|
|
|
$
|
410,686
|
|
Operating
charges:
|
|
|
|
|
|
Goodwill impairment
charges
|
41,037
|
|
|
—
|
|
|
—
|
|
Gain on changes in
ownership interests, net
|
—
|
|
|
(28,152)
|
|
|
—
|
|
Equity investment
loss (income):
|
|
|
|
|
|
Loss due to business
sale in APAC JV
|
—
|
|
|
8,715
|
|
|
—
|
|
Loss due to
impairments in APAC JV
|
—
|
|
|
1,530
|
|
|
—
|
|
Adjusted operating
income
|
$
|
381,544
|
|
|
$
|
370,001
|
|
|
$
|
410,686
|
|
|
|
Three months
ended
|
|
March 31,
2019
|
|
December 31,
2018
|
|
March 31,
2018
|
Consolidated:
|
|
|
|
|
|
U.S. dialysis and
related lab services:
|
|
|
|
|
|
Segment operating
income
|
$
|
416,981
|
|
|
$
|
436,893
|
|
|
$
|
433,380
|
|
Gain on changes in
ownership interests, net
|
—
|
|
|
(28,152)
|
|
|
—
|
|
Adjusted U.S.
dialysis and related lab services operating income
|
416,981
|
|
|
408,742
|
|
|
433,380
|
|
Other - Ancillary
services and strategic initiatives:
|
|
|
|
|
|
U.S.
|
|
|
|
|
|
Segment operating
loss
|
(14,918)
|
|
|
(18,993)
|
|
|
(5,186)
|
|
International
|
|
|
|
|
|
Segment operating
loss
|
(42,712)
|
|
|
(10,489)
|
|
|
(1,804)
|
|
Goodwill impairment
charge
|
41,037
|
|
|
—
|
|
|
—
|
|
Equity investment
loss (income):
|
|
|
|
|
|
Loss due to business
sale in APAC JV
|
—
|
|
|
8,715
|
|
|
—
|
|
Loss due to
impairments in APAC JV
|
—
|
|
|
1,530
|
|
|
—
|
|
Adjusted operating
loss
|
(1,675)
|
|
|
(245)
|
|
|
(1,804)
|
|
Adjusted Other -
Ancillary services and strategic initiatives operating
loss
|
(16,593)
|
|
|
(19,238)
|
|
|
(6,990)
|
|
Corporate
administrative support:
|
|
|
|
|
|
Segment operating
loss
|
(18,844)
|
|
|
(19,502)
|
|
|
(15,704)
|
|
Adjusted operating
income
|
$
|
381,544
|
|
|
$
|
370,001
|
|
|
$
|
410,686
|
|
|
Certain columns or
rows may not sum or recalculate due to the use of rounded
numbers.
|
DAVITA INC.
RECONCILIATIONS FOR
NON-GAAP MEASURES -
continued
(unaudited)
(dollars in
thousands)
Note 4: Effective income tax rates and
adjusted effective income tax rates
|
Three months
ended
|
|
March 31,
2019
|
|
December 31,
2018
|
|
March 31,
2018
|
Income from
continuing operations before income taxes
|
$
|
215,928
|
|
|
$
|
259,114
|
|
|
$
|
301,752
|
|
Less: Noncontrolling
owners' income primarily attributable to non-tax paying
entities
|
(39,008)
|
|
|
(47,203)
|
|
|
(40,088)
|
|
Income before income
taxes attributable to DaVita Inc.
|
$
|
176,920
|
|
|
$
|
211,911
|
|
|
$
|
261,664
|
|
|
|
|
|
|
|
Income tax
expense
|
$
|
56,746
|
|
|
$
|
51,748
|
|
|
$
|
70,737
|
|
Less: Income tax
attributable to noncontrolling interests
|
(80)
|
|
|
(169)
|
|
|
(88)
|
|
Income tax expense
attributable to DaVita Inc.
|
$
|
56,666
|
|
|
$
|
51,579
|
|
|
$
|
70,649
|
|
|
|
|
|
|
|
Effective income tax
rate on income from continuing operations attributable to DaVita
Inc.
|
32.0
|
%
|
|
24.3
|
%
|
|
27.0
|
%
|
|
Certain columns, rows
or percentages may not sum or recalculate due to the use of rounded
numbers.
|
The effective income tax rate on adjusted income from continuing
operations attributable to DaVita Inc. is computed as follows:
|
Three months
ended
|
March 31,
2019
|
|
December 31,
2018
|
|
March 31,
2018
|
Income from
continuing operations before income taxes
|
$
|
215,928
|
|
|
$
|
259,114
|
|
|
$
|
301,752
|
|
Operating
charges:
|
|
|
|
|
|
Goodwill impairment
charges
|
41,037
|
|
|
—
|
|
|
—
|
|
Gain on changes in
ownership interests, net
|
—
|
|
|
(28,152)
|
|
|
—
|
|
Equity investment
loss (income):
|
|
|
|
|
|
Loss due to business
sale in APAC JV
|
—
|
|
|
8,715
|
|
|
—
|
|
Loss due to
impairments in APAC JV
|
—
|
|
|
1,530
|
|
|
—
|
|
Noncontrolling
owners' income primarily attributable to non-tax paying
entities
|
(39,008)
|
|
|
(47,203)
|
|
|
(40,088)
|
|
Adjusted income from
continuing operations before income taxes attributable to DaVita
Inc.
|
$
|
217,957
|
|
|
$
|
194,004
|
|
|
$
|
261,664
|
|
Income tax
expense
|
$
|
56,746
|
|
|
$
|
51,748
|
|
|
$
|
70,737
|
|
Add income tax
related to:
|
|
|
|
|
|
Goodwill impairment
charges
|
8,865
|
|
|
—
|
|
|
—
|
|
Gain on changes in
ownership interests, net
|
—
|
|
|
(7,247)
|
|
|
—
|
|
Equity investment
loss (income):
|
|
|
|
|
|
Loss due to business
sale in APAC JV
|
—
|
|
|
449
|
|
|
—
|
|
Loss due to
impairments in APAC JV
|
—
|
|
|
79
|
|
|
—
|
|
Less income tax
related to:
|
|
|
|
|
|
Noncontrolling
interests
|
(80)
|
|
|
(169)
|
|
|
(88)
|
|
Income tax on
adjusted income from continuing operations attributable to DaVita
Inc.
|
$
|
65,531
|
|
|
$
|
44,860
|
|
|
$
|
70,649
|
|
Effective income tax
rate on adjusted income from continuing operations attributable to
DaVita Inc.
|
30.1
|
%
|
|
23.1
|
%
|
|
27.0
|
%
|
|
Certain columns, rows
or percentages may not sum or recalculate due to the use of rounded
numbers.
|
DAVITA INC.
RECONCILIATIONS FOR
NON-GAAP MEASURES -
continued
(unaudited)
(dollars in
thousands)
Note 5: Free cash flow from continuing
operations
|
Three months
ended
|
|
March 31,
2019
|
|
December 31,
2018
|
|
March 31,
2018
|
Net cash provided by
continuing operating activities
|
$
|
73,064
|
|
|
$
|
307,278
|
|
|
$
|
206,291
|
|
Less: Distributions
to noncontrolling interests
|
(44,230)
|
|
|
(56,768)
|
|
|
(45,467)
|
|
Cash provided by
continuing operating activities attributable to DaVita
Inc.
|
28,834
|
|
|
250,510
|
|
|
160,824
|
|
Less: Expenditures
for routine maintenance and information technology
|
(80,390)
|
|
|
(138,745)
|
|
|
(99,268)
|
|
Free cash flow from
continuing operations
|
$
|
(51,556)
|
|
|
$
|
111,765
|
|
|
$
|
61,556
|
|
|
|
Rolling 12-Month
Period
|
|
March 31,
2019
|
|
December 31,
2018
|
|
March 31,
2018
|
Net cash provided by
continuing operating activities
|
$
|
1,347,729
|
|
|
$
|
1,480,956
|
|
|
$
|
992,597
|
|
Less: Distributions
to noncontrolling interests
|
(195,204)
|
|
|
(196,441)
|
|
|
(213,043)
|
|
Cash provided by
continuing operating activities attributable to DaVita
Inc.
|
1,152,525
|
|
|
1,284,515
|
|
|
779,554
|
|
Less: Expenditures
for routine maintenance and information technology
|
(396,160)
|
|
|
(415,038)
|
|
|
(332,663)
|
|
Free cash flow from
continuing operations
|
$
|
756,365
|
|
|
$
|
869,477
|
|
|
$
|
446,891
|
|
|
Certain columns or
rows may not sum or recalculate due to the use of rounded
numbers.
|
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SOURCE DaVita Inc.