DaVita HealthCare Partners Inc.
) reported fourth-quarter 2013 net operating earnings of 99 cents
per share, beating the Zacks Consensus Estimate by a penny. The
number also increased 17.9% year over year.
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Bottom-line growth came on the back of higher revenues during the
DaVita Healthcare's net income came in at 99 cents per share, up
30.3% year over year.
Total revenue for DaVita Healthcare increased 23.6% from the
prior-year quarter figure to approximately $3.06 billion. The top
line was a tad higher than the Zacks Consensus Estimate of $3.05
billion. The year-over-year increase was attributable to strong
performance at Dialysis and Related Lab Services segment.
Total operating expenses and charges climbed 23.4% year over year
to $2.58 billion in the reported quarter primarily due to
increased patient care costs and other costs as well as higher
general and administrative expenses.
Adjusted operating income of DaVita Healthcare totaled $484
million during the quarter under review, up 18.62% year over
Total U.S. dialysis treatments for the reported quarter came in
at approximately 6.1 million or 76,711 treatments per day. This
represents a per day increase of 6.3% over the year-ago quarter.
Growth of non-acquired treatment in the quarter was 4.7%.
During the reported quarter, DaVita Healthcare acquired 4
dialysis centers and opened 28 centers in the U.S. Additionally,
the company acquired 8 dialysis centers outside the U.S.
DaVita Healthcare's effective tax rate was 35.7% in the reported
quarter, comparing unfavorably with the prior-year quarter
equivalent of 34.7%. The third-party owners' income, attributable
to non-tax paying entities, impacted the effective tax rate. The
effective tax rate attributable to DaVita shareholders in the
reported quarter was 39%, up from 38.5% in the year-ago quarter.
Revenues from the
Dialysis and related Lab Services
segment amounted to $2 billion, up 9.6% year over year. Operating
income for the segment also increased 13.8% year over year to
$412 million in the reported quarter.
(HCP) generated revenues of $829 million in the quarter, surging
73.8% year over year. Growth was mainly driven by higher HCP
Capitated revenues and also due to the acquisition of the Arizona
Integrated Physicians. However, operating income in the segment
remained unchanged at $98 million.
Ancillary services and strategic initiatives
generated operating loss of 9 million during the quarter,
widening from an operating loss of 8 million reported in the
DaVita Healthcare reported full-year 2013 operating net income of
$3.81 per share, a penny ahead of the Zacks Consensus Estimate of
$3.80. The number increased 17.8% year over year. Bottom-line
improvement was driven by top-line growth and the acquisition of
Including loss contingency reserve and contingent earn-out
obligation adjustment, DaVita Healthcare's net income for 2013
came in at $2.89 per share, up 5.5% year over year.
Total revenue for 2013 amounted to $11.76 billion during the
year, surging 43.7% year over year. The improved top line was
boosted by net patient services revenues as well as significantly
higher capitated revenues.
Total cash and cash equivalents of DaVatia Healthcare slid to
$946.2 million at the end of 2013 from $970.7 million as of the
end of the third quarter.
Net cash flow from operating activities was $1.77 billion during
2013, surging 61.1% year over year. The surge was attributable to
full-year operation of Health Care Partners followed by earnings
DaVita Healthcare's long-term debt as of the end of 2013 stood at
$8.14 billion, declining from $8.18 billion as of Sep 30, 2013.
DaVita Healthcare's operating income guidance range for 2014 was
increased to $1.725-$1.860 billion from $1.675-$1.850 billion
expected previously. Additionally, DaVita raised the operating
income guidance for the dialysis services and related ancillary
businesses for 2014 to $1.475-$1.550 billion from $1.425-$1.540
DaVita Healthcare revealed the guidance for 2014 operating income
for HCP, which ranges between $250 -$310 million compared
unfavorably with $385 million reported for 2013.
DaVita Healthcare also expects its total operating cash flow for
2014 to stand between $1.45 billion to $1.55 billion.
DaVita Healthcare presently carries a Zacks Rank #2 (Buy). Some
other top-ranked stocks worth considering in the same space are
Almost Family Inc.
Addus HomeCare Corporation
China Cord Blood Corporation
). While Almost Family sports a Zacks Rank #1 (Strong buy), Addus
HomeCare and China Cord Blood both carry the same Zacks Rank as