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Analysis

Year-end Revenues Plateau but Net Income Spikes for DaVita

By Jack O'Brien  
   February 10, 2020

Despite the slight dip in revenues, the Denver–based dialysis provider posted decent earnings to end 2019.

Denver-based DaVita Inc. produced strong financials during Q4 2019, even though year-end total revenues slid compared to 2018, according to the company's latest earnings report released Monday afternoon.

For the full year, DaVita recorded total revenues of $11.3 billion, down from $11.4 billion in 2018. However, DaVita ended Q4 2019 with nearly $2.9 billion in total revenues, eclipsing $2.8 billion in total revenues in Q4 2018.

In 2019, DaVita posted a net income of $811 million, well above its net income of $159 million at the end of 2018. The dialysis provider also produced a net income per share of $5.27, exceeding the $0.92 net income per share from 2018.

The company posted an operating income of $1.6 billion for 2019 with an adjusted operating income of $1.76 billion, within its projected range according to DaVita's Q3 earnings report.

Related: DaVita Revenues Near $3B, Company Names New CAO  

DaVita benefited from a slight increase in dialysis patient volume during both Q4 and 2019.

Total dialysis treatments increased 1.7% per day in Q4 and "normalized non-acquired treatment growth" increased by 2.1% year-over-year.

Related: For DaVita Subsidiary Vively, It's Not Just About Dialysis Care  

The company also reported an operating cash flow just north of $2 billion for 2019, up from $1.7 billion in 2018.

Free cash flow from continuing operations had the largest growth area, jumping from $480 million to $1.1 billion during 2019.

Related: Dialysis Patients Panic As Financial 'Life Raft' Becomes Unmoored  

The company expects to have total revenues between $11.5 billion to $11.7 billion in 2020 as well as capital expenditures from continuing operations between $700 million to $750 million.

ADDITIONAL DAVITA Q4 EARNINGS REPORT HIGHLIGHTS:  

  • The company also repurchased 8.3 million shares for $542 million in Q4 and a total of 41 million shares throughout the year for $2.4 billion.
  • DaVita's net income from continuing operations per share rose nearly $1 over 2019, totaling $4.62 by the end of the year.

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

Jack O'Brien is the finance editor at HealthLeaders, a Simplify Compliance brand.

Photo credit: St. Joseph, Missouri / United States of America - March 26 2019: Davita Kidney Care in downtown St. Joseph. - Image / Editorial credit: APN Photography / Shutterstock.com


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