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DENVER, Aug. 8, 2024 /PRNewswire/ -- DaVita Inc. (NYSE: DVA) ("DaVita") announced today that it has commenced a private offering (the "offering") of $1.0 billion aggregate principal amount of its senior notes due 2032 (the "2032 notes"), subject to market and other conditions. DaVita intends to use the net proceeds from the offering to (i) repay a portion of its outstanding Term Loan B-1 facility borrowings maturing in 2026 and a portion of its outstanding revolving credit facility borrowings, in each case, ...

DaVita Inc. (DVA) delivered adjusted earnings per share (EPS) of $2.59 in the second quarter of 2024, up 24.5% year over year. The figure topped the Zacks Consensus Estimate by 4.9%. GAAP EPS for the quarter was $2.50, reflecting a surge of 30.9% year over year. Revenues in Detail Revenues of $3.19 billion in the second quarter increased 6.2% year over year. The figure surpassed the Zacks Consensus Estimate by 0.7%. Per management, the revenue uptick primarily resulted from a seasonal improvement from patie ...

Financial Data and Key Metrics Changes - Adjusted operating income for Q2 2024 was $506 million, with adjusted earnings per share (EPS) at $2.59, exceeding expectations primarily due to favorable patient care costs and strong revenue per treatment (RPT) [6][14] - The company raised its 2024 adjusted operating income guidance from a range of $1.875 billion to $1.975 billion to a new range of $1.91 billion to $2.01 billion, reflecting a $35 million increase at the midpoint [12][20] Business Line Data and Key Metrics Changes - U.S. dialysis treatment volume per day increased by 1.1% sequentially in Q2 compared to Q1, but year-over-year growth was only 50 basis points, below expectations due to severe weather and higher mistreatment rates [15][16] - Revenue per treatment increased by approximately $6 sequentially, with full-year growth now expected to be between 3.5% and 4% [16][17] Market Data and Key Metrics Changes - The company noted that the Centers for Medicare & Medicaid Services (CMS) proposed a rate increase of approximately 2.1% for 2025, which aligns with internal expectations but does not fully reflect true cost inflation [10][11] - The company is experiencing a nursing shortage, prompting initiatives to support the next generation of dialysis nurses through collaborations with nursing universities and internship programs [5][6] Company Strategy and Development Direction - DaVita is focused on enhancing clinical capabilities while optimizing revenue, operations, and cost structure, with a commitment to improving collection capabilities and negotiating better rates with health plans [4][8] - The company is investing in technology and automation to improve billing and collection processes, which has led to a better collection rate and reduced days sales outstanding [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the back half of the year due to an extra treatment day compared to the previous year, although they acknowledged challenges with mistreatment rates and mortality [23][24] - The company is addressing elevated mortality rates, which are higher than expected, and is working to understand the underlying causes [37][42] Other Important Information - The company repurchased 2.7 million shares in Q2 and an additional 1.1 million shares in Q3, with leverage at the end of Q2 at 3.1 times EBITDA [18][19] - Center closure costs are now included in adjusted operating income, with an expected total of approximately $60 million for the year [14][20] Q&A Session Summary Question: Can you provide insights on the NAG and July performance? - Management noted elevated mistreatments and below-expectation census growth, with confidence in the second half due to an extra treatment day [23] Question: How did you raise guidance by $95 million excluding closure costs? - The increase was primarily driven by RPT growth and improvements in labor costs, offset by lower volume [24][26] Question: What is the expectation for the Integrated Kidney Care (IKC) business? - Management expects IKC to remain within the $50 million loss range for the year, with stronger performance anticipated in the back half [35] Question: What is driving the elevated mortality rates? - Management is investigating the causes, noting that higher mortality is contributing to volume growth shortfalls [37][42] Question: How does the company view the international business margins? - Management expects international growth to increase, particularly due to recent acquisitions, but margins will evolve differently across various countries [67][69]

DaVita HealthCare (DVA) came out with quarterly earnings of $2.59 per share, beating the Zacks Consensus Estimate of $2.47 per share. This compares to earnings of $2.08 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 4.86%. A quarter ago, it was expected that this kidney dialysis provider would post earnings of $1.96 per share when it actually produced earnings of $2.38, delivering a surprise of 21.43%. Over the last four qua ...

Financial Performance - Total consolidated revenues for Q2 2024 reached $3,187 million, an increase of $116 million or 3.8% compared to Q1 2024[113]. - U.S. dialysis revenues for Q2 2024 were $2,841 million, up $85 million or 3.1% from $2,756 million in Q1 2024[113]. - For the six months ended June 30, 2024, total consolidated revenues were $6,257 million, an increase of $384 million or 6.5% compared to the same period in 2023[115]. - Total revenues for the six months ended June 30, 2024, were $5,597 million, an increase of 4.8% compared to $5,343 million for the same period in 2023[121]. - Operating income for the six months ended June 30, 2024, was $1,076 million, representing a 30.9% increase from $822 million in the same period of 2023[136]. - U.S. dialysis operating income for Q2 2024 was $550 million, an increase of $24 million or 4.6% from Q1 2024[113]. Treatment and Patient Care - In Q2 2024, treatment per day volumes increased compared to Q1 2024, driven by census gains, but revenue and treatment volume were negatively impacted by elevated mortality rates among patients[107]. - The average treatments per day for Q2 2024 were 93,147, an increase of 988 treatments or 1.1% from Q1 2024[116]. - U.S. dialysis treatment volume for Q2 2024 was 7,265,444, reflecting an increase of 113,932 treatments or 1.6% from Q1 2024[116]. - The ongoing impact of COVID-19 has contributed to higher mortality rates among patients, adversely affecting patient census and treatment volumes[107]. - Future revenues and treatment volumes may be negatively impacted by sustained elevated mortality levels in the ESKD and CKD populations[107]. Operational Challenges - The company is facing challenges related to supply chain disruptions and elevated labor costs, which may impact operational efficiency[106]. - The company is currently focused on mitigating the impact of the CHC outage through alternative claim processing methods and has secured interest-free funding from United and its affiliates[102]. - The CHC cybersecurity breach led to a significant reduction in cash flow, with claims processing suspended since February 2024, resulting in increased days sales outstanding (DSOs)[102][103]. - The company is actively monitoring its information technology infrastructure following the CHC outage to prevent potential data breaches[105]. - General economic conditions, including inflation and labor market pressures, are expected to have a material adverse impact on the company's operations and financial condition[106]. Revenue and Cost Management - Average patient service revenue per treatment increased to $390.22 in Q2 2024, a rise of 1.5% from $384.54 in Q1 2024[120]. - The company expects continued elevated staffing and labor costs due to a challenging healthcare labor market, which could materially impact operations[109]. - The company is implementing cost savings initiatives to mitigate inflationary pressures, including optimizing clinic operations and improving procurement[109]. - U.S. dialysis patient care costs per treatment for the six months ended June 30, 2024, increased to $255.19, a slight increase of 0.1% from $254.94 in the prior year[125]. Cash Flow and Debt Management - Net cash provided by operating activities for the six months ended June 30, 2024, was $664 million, a decrease of 27.3% compared to $913 million for the same period in 2023[161]. - Free cash flow for the six months ended June 30, 2024, decreased to $327 million, down 37.7% from $525 million in the same period in 2023[163]. - Significant sources of cash included a $1,640 million extension of the maturity date for a portion of Term Loan B-1 and $393 million in temporary funding assistance from Change Healthcare[164]. - As of June 30, 2024, DaVita had $1,240 million available and $260 million drawn on its $1.5 billion revolving line of credit[167]. - The company believes its cash flow from operations and other liquidity sources will be sufficient to fund scheduled debt service and other obligations for the next 12 months[168]. Shareholder Returns and Investments - DaVita repurchased 4,774,415 shares of common stock for $616 million during the six months ended June 30, 2024, with an average price of $127.98 per share[167]. - DaVita Inc. has entered into purchase agreements to acquire dialysis service operations in Chile, Ecuador, Colombia, and Brazil, with expected cash payments of approximately $180 million for the remaining transactions[182]. Tax and Income - The effective income tax rate for Q2 2024 was 19.3%, up from 17.7% in Q1 2024[151]. - The effective income tax rate attributable to DaVita Inc. for the six months ended June 30, 2024, decreased compared to the same period in 2023, primarily due to increased benefits recognized for forecasted tax credits and a nontaxable noncash gain on change in ownership[156]. - Net income attributable to noncontrolling interests for Q2 2024 was $77 million, an increase of 16.7% from $66 million in Q1 2024[151]. - Income before income taxes attributable to DaVita Inc. was $294 million for the three months ended June 30, 2024[177]. Debt Structure - As of June 30, 2024, total fixed and economically fixed debt amounted to $8,454 million, with an average interest rate of 4.13%[186]. - Total variable rate debt not subject to caps was $594 million, with an average interest rate of 7.51%[186]. - The average fixed interest rate for the company's long-term debt is 4.07%[184]. - The average variable interest rate for the company's long-term debt is 4.64%[184]. - The company has principal amounts of $950 million for Term Loan B-1, $1,640 million for Extended Term Loan B-1, and $910 million for Term Loan A-1, which are effectively hedged by interest rate cap agreements[186].

Contact: Investor Relations DaVita Inc. ir@davita.com DaVita Inc. 2nd Quarter 2024 Results Denver, Colorado, August 6, 2024 — DaVita Inc. (NYSE: DVA) announced financial and operating results for the quarter ended June 30, 2024. "On behalf of all the teammates who provide life-saving care to our patients, I am grateful for the opportunity to report another positive quarter for DaVita," said Javier Rodriguez, CEO of DaVita Inc. "We continue to enhance our clinical capabilities while optimizing our revenue op ...

Financial Performance - DaVita Inc. reported consolidated revenues of $3.187 billion for the quarter ended June 30, 2024, an increase from $3.000 billion in the same quarter of 2023 [22] - Operating income for the quarter was $506 million, with an operating margin of 15.9% [3][22] - Net income attributable to DaVita Inc. was $223 million, translating to diluted earnings per share of $2.50 [2][22] - Adjusted diluted earnings per share increased to $2.59 from $2.26 in the previous quarter [2] Cash Flow and Share Repurchase - Operating cash flow for the quarter was $799 million, while free cash flow was $654 million [13][22] - The company repurchased 2.7 million shares at an average price of $140.14 per share during the quarter [13] Dialysis Metrics - Total U.S. dialysis treatments for Q2 2024 were 7,265,444, averaging 93,147 treatments per day, a 1.1% increase from Q1 2024 [4] - Revenue per treatment increased to $390.22 from $384.54 in the previous quarter [5] Patient Care Costs - Patient care costs per treatment were $255.25, showing a slight increase from $255.13 in the previous quarter [5] - The increase in patient care costs was attributed to higher operating expenses, including health benefits and medical supplies [6] Center Activity - As of June 30, 2024, DaVita provided dialysis services to approximately 265,100 patients across 3,124 outpatient dialysis centers [15] - The company acquired and opened 10 new dialysis centers while closing three in the U.S. during the second quarter [15] Debt and Financing - DaVita extended the maturity date for a portion of Term Loan B-1, totaling $1.64 billion [11] - The company incurred charges of approximately $15.3 million related to U.S. dialysis center closures during the quarter [9] Integrated Kidney Care - DaVita had approximately 71,300 patients in risk-based integrated care arrangements, representing about $5.4 billion in annualized medical spend [16]

Company Performance - DaVita HealthCare is expected to report earnings of $2.47 per share on August 6, 2024, reflecting a year-over-year growth of 18.75% [1] - The consensus estimate for revenue is $3.16 billion, which represents a 5.43% increase from the prior-year quarter [1] - For the entire fiscal year, earnings are projected at $9.62 per share and revenue at $12.74 billion, indicating changes of +13.58% and +4.97% respectively from the previous year [8] Valuation Metrics - DaVita HealthCare currently has a Forward P/E ratio of 14.46, which is below the industry average of 23.51, indicating it is trading at a discount [2] - The company holds a PEG ratio of 1.06, compared to the industry average PEG ratio of 2.07, suggesting a more favorable valuation relative to growth expectations [9] Market Performance - In the latest trading session, DaVita HealthCare closed at $136.47, down 1.93%, underperforming the S&P 500's daily loss of 0.5% [5] - Over the past month, shares have appreciated by 0.4%, underperforming the Medical sector's gain of 0.74% but outperforming the S&P 500's gain of 0.1% [10] Analyst Sentiment - Recent revisions to analyst forecasts for DaVita HealthCare are important as they reflect short-term business trends, with positive revisions seen as a good sign for the company's outlook [3] - DaVita HealthCare currently holds a Zacks Rank of 3 (Hold), with no change in the Zacks Consensus EPS estimate over the past month [11]

DaVita Inc. (DVA) - The company's market capitalization is $12.05 billion, with a stock price of $137 as of July 26, 2024, reflecting a year-to-date increase of over 28% [1][2] - In Q1 2024, DaVita reported revenue of $3.071 billion, exceeding estimates of $3.028 billion, and net income of $240 million, surpassing the expected $179 million, with an EPS of $2.65 compared to the anticipated $1.95 [2] - DaVita specializes in kidney care services, particularly dialysis, and is well-positioned to benefit from the increasing global prevalence of chronic kidney disease [9][10] Floor & Decor Holdings (FND) - Floor & Decor focuses on hard surface flooring and related accessories, appealing to both professional contractors and DIY enthusiasts, which has driven significant consumer interest and sales growth [3][5] - The company has a market capitalization of approximately $10.27 billion, with a stock price of $96, and is attempting to recover from a year-to-date loss of about 13% [11] - Floor & Decor's aggressive expansion strategy, including new store openings across the U.S., enhances its market reach and growth potential [16] Investment Insights - Warren Buffett's investment philosophy emphasizes long-term value and growth potential, with his stakes in DaVita and Floor & Decor indicating confidence in their business models and prospects [6][12] - Berkshire Hathaway holds 36.1 million shares of DaVita, representing 40.33% of the company's outstanding stock, highlighting Buffett's significant investment in the company [13] - The potential for significant growth in both DaVita and Floor & Decor suggests that a modest investment could yield substantial returns by 2025 [12][17]