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.
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.
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.
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