DaVita(US:DVA)2020-07-30 23:15Financial Performance - Total revenues for Q2 2020 were $2,879,979, an increase of 1.4% compared to $2,842,705 in Q2 2019[11] - Dialysis patient service revenues reached $2,758,197 in Q2 2020, up from $2,723,816 in Q2 2019, reflecting a growth of 1.3%[11] - Operating income for the first half of 2020 was $875,296, compared to $802,393 in the same period of 2019, representing a 9.1% increase[11] - Net income attributable to DaVita Inc. for Q2 2020 was $201,602, down from $273,551 in Q2 2019, a decrease of 26.3%[11] - Basic net income per share from continuing operations for Q2 2020 was $1.65, compared to $1.17 in Q2 2019, an increase of 40.2%[11] - Total operating expenses for Q2 2020 were $2,470,059, an increase of 3.8% from $2,380,819 in Q2 2019[11] - Comprehensive income attributable to DaVita Inc. for Q2 2020 was $207,020, compared to $287,491 in Q2 2019, a decrease of 28.0%[15] - Patient care costs for the first half of 2020 totaled $3,960,013, up from $3,922,688 in the same period of 2019, reflecting a 1.0% increase[11] - Net income for the six months ended June 30, 2020, was $542,767 thousand, compared to $516,644 thousand for the same period in 2019, reflecting a year-over-year increase of about 5.1%[21] - Net income for the six months ended June 30, 2020, was $441,195, compared to $273,551 for the same period in 2019, representing a year-over-year increase of 61.4%[25] Assets and Liabilities - Total current assets increased to $5,779,830 thousand as of June 30, 2020, up from $3,690,170 thousand at December 31, 2019, representing a growth of approximately 56.5%[18] - Total liabilities rose to $15,729,337 thousand as of June 30, 2020, compared to $13,811,776 thousand at December 31, 2019, indicating an increase of about 13.9%[18] - Long-term debt decreased slightly to $7,894,674 thousand as of June 30, 2020, from $7,977,526 thousand at December 31, 2019, a reduction of about 1.0%[18] - Cash, cash equivalents, and restricted cash of continuing operations at the end of the year stood at $3,035,719 thousand, down from $3,682,410 thousand in the previous year[22] - Total shareholders' equity as of June 30, 2020, was $2,153,915, an increase from $2,133,409 as of December 31, 2019, reflecting a growth of 0.9%[25] Cash Flow - Net cash provided by operating activities was $1,011,503 thousand for the six months ended June 30, 2020, an increase from $751,115 thousand in the prior year, marking a growth of approximately 34.6%[21] - The company reported a net cash used in investing activities of $(407,139) thousand for the six months ended June 30, 2020, compared to a net cash provided of $3,402,692 thousand in the same period of 2019[21] - The company reported a net cash provided by financing activities of $1,239,573 thousand for the six months ended June 30, 2020, compared to a net cash used of $(1,310,553) thousand in the same period of 2019[21] Stock and Equity - The weighted average shares for earnings per share in Q2 2020 were 122,074,452, down from 166,346,041 in Q2 2019, indicating a significant reduction in shares outstanding[11] - The company recorded stock-based compensation expense of $42,125 thousand for the six months ended June 30, 2020, compared to $29,045 thousand in the prior year, representing an increase of approximately 45.2%[21] - The company issued 161 stock unit shares during the period, with stock-settled stock-based compensation expense amounting to $16,908[25] - The average price paid per share for open market repurchases in 2020 was $74.81, compared to $54.46 in 2019, with a total amount paid of $303,139 for 4,052 shares[110] Legal and Regulatory Matters - The Company recorded total monetary consideration of $63.7 million in a settlement agreement related to a federal False Claims Act investigation, with $41.5 million as an incremental cash payment and $22.2 million for previously refunded amounts[78] - The Company is subject to ongoing investigations by the U.S. Attorney's Office, including a 2016 investigation concerning allegations of false claims for payment to the government for prescription medications, covering the period from January 1, 2006, to the present[78] - The Company faces potential financial penalties and operational impacts from ongoing legal proceedings, which could adversely affect revenues, earnings, and cash flows[96] Acquisitions and Divestitures - The company acquired dialysis businesses consisting of three dialysis centers in the U.S. and 25 centers outside the U.S. for a total of $44,267 in net cash, along with deferred purchase price obligations and earn-out obligations[115] - The company divested its vascular access business, RMS Lifeline, Inc., recognizing a loss on sale of approximately $16,252[120] - The company reported a preliminary estimated pre-tax net loss of approximately $23,022 on the sale of its DaVita Medical Group business, which was sold for an aggregate purchase price of $4,340,000[123] Revenue Streams - For the six months ended June 30, 2020, total patient service revenues reached $5,721,216, an increase from $5,585,817 for the same period in 2019, representing a growth of approximately 2.4%[37] - Medicare and Medicare Advantage revenues for the six months ended June 30, 2020, were $3,019,529, slightly up from $3,013,709 in 2019, indicating a stable revenue stream[37] - Total revenues from commercial payors for the three months ended June 30, 2020, were $886,115, an increase from $874,088 in the same period of 2019, showing a growth of approximately 1.4%[35] Comprehensive Income - Total comprehensive income for the six months ended June 30, 2020, was $455.2 million, compared to $517.9 million for the same period in 2019, reflecting a decline of 12%[166] - Other comprehensive loss for the six months ended June 30, 2020, was $11.6 million, compared to a gain of $2.6 million in the same period of 2019[163]