DaVita's Net Income Falls, Consolidated Revenues Inch Past $11.5B

DaVita's total dialysis treatment volume for Q4 2020 experienced a per day decline of nearly 1% year-over-year.

DaVita Inc.'s net income for both Q4 and 2020 overall experienced year-over-year declines, according to the latest earnings report released Thursday afternoon.

At the end of Q4, DaVita reported $193 million in net income from continuing operations, down from $242 million during the same period in 2019, and net income of $174 million, down from $245 million in Q4 2019. Similarly, DaVita's net income for 2020 was $774 million, down from $811 at the end of 2019, though its net income from continuing operations rose by $76 million. 

Most notably, the Denver-based dialysis company recorded an operating income of $382 million for Q4 2020, down from $463 million in Q4 2019, though its year-end operating income of $1.695 billion marked an improvement of $52 million. 

DaVita's total dialysis treatment volume for Q4 2020 experienced a per day decline of nearly 1% year-over-year while normalized non-acquired treatment growth for the quarter was 0.3%. 

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The company attributed the revenue and cost changes to a number of factors, including the ongoing COVID-19 pandemic. In its press release, DaVita stated that the challenges related to COVID-19 resulted in an estimated net impact on operating income of $60 million.

C-suite perspective: 

"Throughout the pandemic, including the recent surge in the number of COVID-19 cases across the United States, our teammates continue to respond with a focus on the health and safety of 240,000 patients receiving high quality, life-sustaining care," Javier Rodriguez, CEO of DaVita, said in a statement. "Over the past six weeks, we have begun providing vaccinations to our front-line caregivers, and we are now beginning the process of providing COVID-19 vaccinations to our patients."

The dialysis provider recorded full year diluted earnings per share from continuing operations of $6.39, up nearly 39% year-over-year.

DaVita's cash flow, specifically operating cash flow, operating cash flow from continuing operations, and free cash flow from continuing operations, all experienced year-over-year declines during the quarter.

For the quarter, DaVita also repurchased over 4.1 million shares for $417 million.

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Looking ahead to 2021, DaVita projected adjusted operating income in the range of $1.675 billion to $1.825, adjusted diluted net income from continuing operations per share attributable to the company between $7.75 to $8.75, and free cash flow from continuing operations between $900 million to $1.15 billion.

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Still, DaVita added that the pandemic continues to "generate significant risk and uncertainty, and as a result, our future results could vary materially from the guidance provided."

For complete financial information, review DaVita's filing with the Securities and Exchange Commission.