) reported third-quarter 2012 operating earnings of $1.50 per
share, lagging the Zacks Consensus Estimate of $1.55.
Nevertheless, operating earnings were substantially higher than
$1.45 per share reported in the prior-year quarter.
Net income attributable to DaVita's shareholders amounted to
$144.7 million or $1.50 per share, increasing from $135.4 million
or $1.42 per share in the year-ago quarter.
Net operating revenue in the reported quarter increased 11.7%
year over year to $1.96 billion from $1.76 billion. Top line
lagged the Zacks Consensus Estimate of $2.02 billion.
Total operating expenses and charges also climbed 12.5% to
$1.62 billion from $1.44 billion in the third quarter of
DaVita provided administrative services across 1,912
outpatient dialysis centers in the U.S., serving approximately
150,000 patients during the reported quarter. Additionally, the
company provided administrative services in 24 outpatient
dialysis centers in five non-U.S. countries.
During the reported quarter, DaVita acquired 10 centers and
opened 21 centers in the U.S., while 2 centers were opened
outside the U.S.
Total U.S. treatments for the reported quarter came in at
approximately 5.55 million or 71,162 treatments per day. This
represents a per day increase of 12.3% over the year-ago quarter.
The growth of non-acquired treatment in the quarter stood at
The company's effective tax rate was 36.4% in the reported
quarter. The third-party owners' income attributable to non-tax
paying entities impacted the effective tax rate. The effective
tax rate attributable to DaVita in the reported quarter was
Segment wise, total revenue from the
Dialysis and Related Lab Services
segment came in at $1.79 billion during the quarter, against
$1.63 billion in the prior-year quarter.
Operating income for the segment expanded 8.4% year over year
to $361 million in the reported quarter from $333 million in the
Ancillary Services and Strategic Initiatives
generated revenues of $185 million, up from $137 million in the
year-ago quarter. However, the segment recorded operating loss of
$11 million in the reported quarter, narrower than $19 million
loss incurred in the year-ago quarter.
Operating cash flow amounted to $367 million during the
quarter under review, reflecting a 26% decrease from $495 million
in the prior-year quarter.
Free cash flow was $271 million, reflecting a 36% decrease
from $423 million in the prior-year quarter.
Total assets at the end of September 2012 were $10.82 billion,
up from $8.89 billion as of December 31, 2011, while long-term
debt increased to $5.62 billion from $4.42 billion as of December
31, 2011. Shareholders' equity as of September 30, 2012 amounted
to $2.54 billion, up from $2.14 billion at 2011 end.
Concurrently, DaVita raised its operating income guidance for
dialysis services and related ancillary businesses for 2012 to
$1.32-$1.33 billion from the previous outlook of $1.28-$1.33
billion. The guidance excludes legal proceeding contingency
accrual and related expenses of $78 million and transaction
expenses related to the HealthCare Partners (HCP)
Operating income from HCP acquisition is expected to be
$25-$30 million per month from November 2012. The company expects
the effective tax rate attributable to DaVita to be in the range
of 40%-41% for 2012.
Operating income for 2013 is expected to be around $1.75-$1.90
billion, including the operating income from HCP. Operating cash
flow guidance for 2013 stands at $1.35-$1.50 billion
The shares of DaVita, which competes with
), currently retain a Zacks #1 Rank, implying a short-term Strong
DAVITA INC (DVA): Free Stock Analysis Report
HEALTHSOUTH CP (HLS): Free Stock Analysis
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