DaVita Maintains Revenue Guidance Amid Coronavirus Outbreak

The dialysis provider received a $240 million payment last month as part of the CARES Act.

DaVita Inc. maintained its full year revenue guidance despite the ongoing coronavirus disease 2019 (COVID-19) outbreak, according to its latest earnings report released Tuesday afternoon.

To start the year, the Denver-based dialysis provider recorded consolidated revenues of $2.8 billion, an operating income of $465 million, and diluted earnings per share (EPS) of $1.81.

DaVita turned around its cash flow performance during Q1 2020, posting an operating cash flow of $360 million, compared to a $141 million operating cash flow in Q1 2019. Additionally, free cash flow from continuing operations was $184 million in Q1 2020 compared to $119 million of free cash flow used in continuing operations in Q1 2019.

Related: Year-end Revenues Plateau but Net Income Spikes for DaVita  

For 2020, DaVita expects revenue to be between $11.5 billion to $11.7 billion, with an operating income margin between 13%% to 14%. The company also still expects capital expenditures from continuing operations to be between $700 million to $750 million.

The company's decision to maintain its financial guidance is not surprising given that in mid-April, DaVita stated that the $240 million payment received as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act could potentially offset the short-term financial impact of the ongoing COVID-19 outbreak.

According to a filing with the Securities and Exchange Commission (SEC), DaVita did not expect a significant impact from the pandemic on its Q1 2020 earnings.

Related: DaVita Expects $240M CARES Act Payment May Offset COVID-19 Impact

On the company's earnings call after the report was released, DaVita announced that the funds received through the CARES Act had been returned.

C-suite perspective: 

"I am proud and humbled by the amazing efforts of our 65,000 teammates around the world," Javier Rodriguez, CEO of DaVita, said in a statement. "I offer my deepest gratitude to them all, especially to our caregiving teammates and physician partners working heroically to provide life-sustaining therapy to approximately 238,000 dialysis patients globally."

In addition to its earnings release, DaVita announced the launch of Davita Venture Group (DVG), which will aim to "accelerate advancements in kidney care."

According to the company, DVG will focus its efforts on innovations in "digital health, pharmaceuticals, medical devices, and care delivery models."

For complete financial information, review DaVita's filing with the SEC.

Editor's note: This story has been updated to reflect that on DaVita's earnings call, the company announced that it had returned the $240 million payment it received as part of the CARES Act.