(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Title of each class: | Trading symbol(s): | Name of each exchange on which registered: | ||||||||||||
Exhibit Number | Description | ||||
Press Release dated August 3, 2021 announcing the registrant’s financial results for the quarter ended June 30, 2021. | |||||
104.0 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. |
DAVITA INC. | ||||||||
Date: August 3, 2021 | By: | /s/ John D. Winstel | ||||||
John D. Winstel | ||||||||
Chief Accounting Officer |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net income attributable to DaVita Inc.: | (dollars in millions, except per share data) | ||||||||||||||||||||||
Net income from continuing operations | $ | 294 | $ | 202 | $ | 531 | $ | 431 | |||||||||||||||
Diluted per share | $ | 2.64 | $ | 1.62 | $ | 4.72 | $ | 3.44 | |||||||||||||||
Adjusted net income from continuing operations(1) | $ | 294 | $ | 242 | $ | 531 | $ | 474 | |||||||||||||||
Diluted per share adjusted(1) | $ | 2.64 | $ | 1.95 | $ | 4.72 | $ | 3.78 | |||||||||||||||
Net income | $ | 294 | $ | 202 | $ | 531 | $ | 441 | |||||||||||||||
Diluted per share | $ | 2.64 | $ | 1.62 | $ | 4.72 | $ | 3.52 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||
Amount | Margin | Amount | Margin | Amount | Margin | Amount | Margin | ||||||||||||||||||||||||||||||||||||||||
Operating income: | (dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||||
Operating income | $ | 490 | 16.8 | % | $ | 410 | 14.2 | % | $ | 933 | 16.3 | % | $ | 875 | 15.3 | % | |||||||||||||||||||||||||||||||
Adjusted operating income(1)(2) | $ | 490 | 16.8 | % | $ | 461 | 16.0 | % | $ | 933 | 16.3 | % | $ | 927 | 16.2 | % |
Three months ended | Quarter change | Six months ended | Year to date change | ||||||||||||||||||||||||||||||||
June 30, 2021 | March 31, 2021 | June 30, 2021 | June 30, 2020 | ||||||||||||||||||||||||||||||||
Per treatment metrics: | |||||||||||||||||||||||||||||||||||
Revenue | $ | 360.14 | $ | 354.50 | $ | 5.64 | $ | 357.35 | $ | 349.91 | $ | 7.44 | |||||||||||||||||||||||
Patient care costs | $ | 236.90 | $ | 238.69 | $ | (1.79) | $ | 237.79 | $ | 237.69 | $ | 0.10 | |||||||||||||||||||||||
General and administrative | $ | 31.72 | $ | 30.33 | $ | 1.39 | $ | 31.03 | $ | 27.46 | $ | 3.57 |
Three months ended June 30, | Twelve months ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Cash flow: | (dollars in millions) | ||||||||||||||||||||||
Operating cash flow | $ | 680 | $ | 651 | $ | 1,802 | $ | 2,333 | |||||||||||||||
Operating cash flow from continuing operations | $ | 680 | $ | 651 | $ | 1,802 | $ | 2,337 | |||||||||||||||
Free cash flow from continuing operations (1) | $ | 503 | $ | 507 | $ | 982 | $ | 1,543 |
Three months ended June 30, 2021 | Six months ended June 30, 2021 | |||||||||||||
Effective income tax rate on: | ||||||||||||||
Income from continuing operations | 18.8 | % | 20.6 | % | ||||||||||
Income from continuing operations attributable to DaVita Inc.(1) | 21.6 | % | 23.8 | % | ||||||||||
Adjusted income from continuing operations attributable to DaVita Inc.(1) | 21.6 | % | 23.8 | % |
Current 2021 guidance | Prior 2021 guidance | ||||||||||||||||||||||
Low | High | Low | High | ||||||||||||||||||||
(dollars in millions, except per share data) | |||||||||||||||||||||||
Adjusted operating income | $ | 1,800 | $ | 1,875 | $ | 1,750 | $ | 1,875 | |||||||||||||||
Adjusted diluted net income from continuing operations per share attributable to DaVita Inc. | $ | 8.80 | $ | 9.40 | $ | 8.20 | $ | 9.00 | |||||||||||||||
Free cash flow from continuing operations | $ | 1,000 | $ | 1,200 | $ | 900 | $ | 1,150 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Dialysis patient service revenues | $ | 2,817,957 | $ | 2,758,197 | $ | 5,532,544 | $ | 5,471,478 | |||||||||||||||
Other revenues | 98,553 | 121,782 | 203,967 | 249,738 | |||||||||||||||||||
Total revenues | 2,916,510 | 2,879,979 | 5,736,511 | 5,721,216 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Patient care costs | 1,965,277 | 1,984,564 | 3,903,607 | 3,960,013 | |||||||||||||||||||
General and administrative | 298,091 | 316,209 | 579,517 | 579,785 | |||||||||||||||||||
Depreciation and amortization | 169,689 | 157,376 | 335,390 | 312,055 | |||||||||||||||||||
Equity investment income | (7,023) | (4,342) | (15,081) | (22,185) | |||||||||||||||||||
Loss on changes in ownership interest, net | — | 16,252 | — | 16,252 | |||||||||||||||||||
Total operating expenses | 2,426,034 | 2,470,059 | 4,803,433 | 4,845,920 | |||||||||||||||||||
Operating income | 490,476 | 409,920 | 933,078 | 875,296 | |||||||||||||||||||
Debt expense | (73,324) | (81,381) | (140,338) | (169,984) | |||||||||||||||||||
Debt refinancing charges | — | — | — | (2,948) | |||||||||||||||||||
Other income, net | 15,188 | 9,545 | 16,356 | 5,195 | |||||||||||||||||||
Income from continuing operations before income taxes | 432,340 | 338,084 | 809,096 | 707,559 | |||||||||||||||||||
Income tax expense | 81,309 | 83,212 | 166,520 | 174,772 | |||||||||||||||||||
Net income from continuing operations | 351,031 | 254,872 | 642,576 | 532,787 | |||||||||||||||||||
Net income from discontinued operations, net of tax | — | — | — | 9,980 | |||||||||||||||||||
Net income | 351,031 | 254,872 | 642,576 | 542,767 | |||||||||||||||||||
Less: Net income attributable to noncontrolling interests | (57,211) | (53,270) | (111,353) | (101,572) | |||||||||||||||||||
Net income attributable to DaVita Inc. | $ | 293,820 | $ | 201,602 | $ | 531,223 | $ | 441,195 | |||||||||||||||
Earnings per share attributable to DaVita Inc.: | |||||||||||||||||||||||
Basic net income from continuing operations | $ | 2.76 | $ | 1.65 | $ | 4.94 | $ | 3.49 | |||||||||||||||
Basic net income | $ | 2.76 | $ | 1.65 | $ | 4.94 | $ | 3.57 | |||||||||||||||
Diluted net income from continuing operations | $ | 2.64 | $ | 1.62 | $ | 4.72 | $ | 3.44 | |||||||||||||||
Diluted net income | $ | 2.64 | $ | 1.62 | $ | 4.72 | $ | 3.52 | |||||||||||||||
Weighted average shares for earnings per share: | |||||||||||||||||||||||
Basic shares | 106,364 | 122,074 | 107,606 | 123,485 | |||||||||||||||||||
Diluted shares | 111,423 | 124,068 | 112,555 | 125,479 | |||||||||||||||||||
Amounts attributable to DaVita Inc.: | |||||||||||||||||||||||
Net income from continuing operations | $ | 293,820 | $ | 201,602 | $ | 531,223 | $ | 431,215 | |||||||||||||||
Net income from discontinued operations | — | — | — | 9,980 | |||||||||||||||||||
Net income attributable to DaVita Inc. | $ | 293,820 | $ | 201,602 | $ | 531,223 | $ | 441,195 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net income | $ | 351,031 | $ | 254,872 | $ | 642,576 | $ | 542,767 | |||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Unrealized (losses) gains on interest rate cap agreements: | |||||||||||||||||||||||
Unrealized (losses) gains | (2,059) | (1,824) | 2,823 | (14,842) | |||||||||||||||||||
Reclassifications of net realized losses into net income | 1,033 | 1,623 | 2,066 | 3,246 | |||||||||||||||||||
Unrealized gains (losses) on foreign currency translation | 57,910 | 5,619 | (4,634) | (76,013) | |||||||||||||||||||
Other comprehensive income (loss) | 56,884 | 5,418 | 255 | (87,609) | |||||||||||||||||||
Total comprehensive income | 407,915 | 260,290 | 642,831 | 455,158 | |||||||||||||||||||
Less: Comprehensive income attributable to noncontrolling interests | (57,211) | (53,270) | (111,353) | (101,572) | |||||||||||||||||||
Comprehensive income attributable to DaVita Inc. | $ | 350,704 | $ | 207,020 | $ | 531,478 | $ | 353,586 |
Six months ended June 30, | |||||||||||
2021 | 2020 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 642,576 | $ | 542,767 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 335,390 | 312,055 | |||||||||
Debt refinancing charges | — | 884 | |||||||||
Stock-based compensation expense | 51,717 | 42,125 | |||||||||
Deferred income taxes | 40,685 | 132,101 | |||||||||
Equity investment income, net | (2,764) | (6,494) | |||||||||
Loss on sales of business interests, net | — | 16,252 | |||||||||
Other non-cash charges, net | 1,274 | (5,885) | |||||||||
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures: | |||||||||||
Accounts receivable | (117,171) | 15,194 | |||||||||
Inventories | (3,270) | (696) | |||||||||
Other receivables and prepaid and other current assets | 14,465 | (131,988) | |||||||||
Other long-term assets | (13,706) | 1,950 | |||||||||
Accounts payable | (47,390) | (15,858) | |||||||||
Accrued compensation and benefits | (90,381) | (19,325) | |||||||||
Other current liabilities | 25,090 | 146,490 | |||||||||
Income taxes | 10,753 | (4,800) | |||||||||
Other long-term liabilities | (13,232) | (13,269) | |||||||||
Net cash provided by operating activities | 834,036 | 1,011,503 | |||||||||
Cash flows from investing activities: | |||||||||||
Additions of property and equipment | (294,438) | (291,667) | |||||||||
Acquisitions | (23,890) | (44,267) | |||||||||
Proceeds from asset and business sales | 29,774 | 70,615 | |||||||||
Purchase of debt investments held-to-maturity | (7,923) | (142,483) | |||||||||
Purchase of other debt and equity investments | (2,164) | (3,034) | |||||||||
Proceeds from debt investments held-to-maturity | 7,923 | 7,621 | |||||||||
Proceeds from sale of other debt and equity investments | 11,908 | 3,438 | |||||||||
Purchase of equity method investments | (6,029) | (8,101) | |||||||||
Distributions from equity method investments | 1,140 | 739 | |||||||||
Net cash used in investing activities | (283,699) | (407,139) | |||||||||
Cash flows from financing activities: | |||||||||||
Borrowings | 1,611,086 | 2,324,300 | |||||||||
Payments on long-term debt | (754,407) | (635,695) | |||||||||
Deferred financing costs | (9,089) | (20,375) | |||||||||
Purchase of treasury stock | (560,507) | (321,798) | |||||||||
Distributions to noncontrolling interests | (99,362) | (118,553) | |||||||||
Net payments related to stock purchases and awards | (43,605) | (2,106) | |||||||||
Contributions from noncontrolling interests | 15,925 | 20,582 | |||||||||
Purchases of noncontrolling interests | (4,493) | (6,782) | |||||||||
Net cash provided by financing activities | 155,548 | 1,239,573 | |||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,197) | (16,936) | |||||||||
Net increase in cash, cash equivalents and restricted cash | 704,688 | 1,827,001 | |||||||||
Less: Net increase in cash, cash equivalents and restricted cash from discontinued operations | — | — | |||||||||
Net increase in cash, cash equivalents and restricted cash from continuing operations | 704,688 | 1,827,001 | |||||||||
Cash, cash equivalents and restricted cash of continuing operations at beginning of the year | 501,790 | 1,208,718 | |||||||||
Cash, cash equivalents and restricted cash of continuing operations at end of the period | $ | 1,206,478 | $ | 3,035,719 |
June 30, 2021 | December 31, 2020 | ||||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | 1,043,632 | $ | 324,958 | |||||||
Restricted cash and equivalents | 162,846 | 176,832 | |||||||||
Short-term investments | 36,701 | 20,101 | |||||||||
Accounts receivable | 1,947,466 | 1,824,282 | |||||||||
Inventories | 115,369 | 111,625 | |||||||||
Other receivables | 541,430 | 544,376 | |||||||||
Prepaid and other current assets | 69,360 | 76,387 | |||||||||
Income tax receivable | 61,782 | 70,163 | |||||||||
Total current assets | 3,978,586 | 3,148,724 | |||||||||
Property and equipment, net of accumulated depreciation of $4,760,572 and $4,480,429, respectively | 3,485,600 | 3,521,824 | |||||||||
Operating lease right-of-use assets | 2,865,320 | 2,863,089 | |||||||||
Intangible assets, net of accumulated amortization of $73,215 and $70,141, respectively | 162,484 | 166,585 | |||||||||
Equity method and other investments | 245,389 | 257,491 | |||||||||
Long-term investments | 33,777 | 32,193 | |||||||||
Other long-term assets | 95,490 | 79,501 | |||||||||
Goodwill | 6,943,665 | 6,919,109 | |||||||||
$ | 17,810,311 | $ | 16,988,516 | ||||||||
LIABILITIES AND EQUITY | |||||||||||
Accounts payable | $ | 376,264 | $ | 434,253 | |||||||
Other liabilities | 837,284 | 810,529 | |||||||||
Accrued compensation and benefits | 593,859 | 685,555 | |||||||||
Current portion of operating lease liabilities | 382,342 | 369,497 | |||||||||
Current portion of long-term debt | 184,435 | 168,541 | |||||||||
Income tax payable | 11,856 | 7,768 | |||||||||
Total current liabilities | 2,386,040 | 2,476,143 | |||||||||
Long-term operating lease liabilities | 2,727,323 | 2,738,670 | |||||||||
Long-term debt | 8,798,263 | 7,917,263 | |||||||||
Other long-term liabilities | 157,687 | 150,060 | |||||||||
Deferred income taxes | 851,961 | 809,600 | |||||||||
Total liabilities | 14,921,274 | 14,091,736 | |||||||||
Commitments and contingencies | |||||||||||
Noncontrolling interests subject to put provisions | 1,426,211 | 1,330,028 | |||||||||
Equity: | |||||||||||
Preferred stock ($0.001 par value, 5,000 shares authorized; none issued) | — | — | |||||||||
Common stock ($0.001 par value, 450,000 shares authorized; 110,644 and 105,625 shares issued and outstanding at June 30, 2021, respectively, and 109,933 shares issued and outstanding at December 31, 2020) | 111 | 110 | |||||||||
Additional paid-in capital | 523,038 | 597,073 | |||||||||
Retained earnings | 1,383,760 | 852,537 | |||||||||
Treasury stock (5,019 and zero shares, respectively) | (563,230) | — | |||||||||
Accumulated other comprehensive loss | (65,899) | (66,154) | |||||||||
Total DaVita Inc. shareholders' equity | 1,277,780 | 1,383,566 | |||||||||
Noncontrolling interests not subject to put provisions | 185,046 | 183,186 | |||||||||
Total equity | 1,462,826 | 1,566,752 | |||||||||
$ | 17,810,311 | $ | 16,988,516 |
Three months ended | Six months ended June 30, 2021 | ||||||||||||||||||||||
June 30, 2021 | March 31, 2021 | June 30, 2020 | |||||||||||||||||||||
1. Consolidated business metrics: | |||||||||||||||||||||||
Operating margin | 16.8 | % | 15.7 | % | 14.2 | % | 16.3 | % | |||||||||||||||
Adjusted operating margin excluding certain items(1)(2) | 16.8 | % | 15.7 | % | 16.0 | % | 16.3 | % | |||||||||||||||
General and administrative expenses as a percent of consolidated revenues(3) | 10.2 | % | 10.0 | % | 11.0 | % | 10.1 | % | |||||||||||||||
Effective income tax rate on income from continuing operations | 18.8 | % | 22.6 | % | 24.6 | % | 20.6 | % | |||||||||||||||
Effective income tax rate on income from continuing operations attributable to DaVita Inc.(1) | 21.6 | % | 26.4 | % | 29.2 | % | 23.8 | % | |||||||||||||||
Effective income tax rate on adjusted income from continuing operations attributable to DaVita Inc.(1) | 21.6 | % | 26.4 | % | 28.0 | % | 23.8 | % | |||||||||||||||
2. Summary of financial results: | |||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
U.S. dialysis patient services and other | $ | 2,676 | $ | 2,590 | $ | 2,675 | $ | 5,266 | |||||||||||||||
Other—Ancillary services | |||||||||||||||||||||||
U.S. other | 88 | 99 | 116 | 187 | |||||||||||||||||||
International dialysis patient service and other | 174 | 162 | 129 | 336 | |||||||||||||||||||
261 | 261 | 245 | 523 | ||||||||||||||||||||
Eliminations | (21) | (31) | (40) | (53) | |||||||||||||||||||
Total consolidated revenues | $ | 2,917 | $ | 2,820 | $ | 2,880 | $ | 5,737 | |||||||||||||||
Operating income (loss): | |||||||||||||||||||||||
U.S. dialysis | $ | 534 | $ | 480 | $ | 523 | $ | 1,014 | |||||||||||||||
Other—Ancillary services | |||||||||||||||||||||||
U.S. | (28) | (25) | (41) | (53) | |||||||||||||||||||
International(4) | 10 | 13 | 1 | 24 | |||||||||||||||||||
(18) | (12) | (40) | (30) | ||||||||||||||||||||
Corporate administrative support expenses | (25) | (25) | (73) | (51) | |||||||||||||||||||
Total consolidated operating income | $ | 490 | $ | 443 | $ | 410 | $ | 933 |
Three months ended | Six months ended June 30, 2021 | ||||||||||||||||||||||
June 30, 2021 | March 31, 2021 | June 30, 2020 | |||||||||||||||||||||
3. Summary of reportable segment financial results and metrics: | |||||||||||||||||||||||
U.S. dialysis | |||||||||||||||||||||||
Financial results | |||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Dialysis patient service revenues | $ | 2,670 | $ | 2,583 | $ | 2,667 | $ | 5,253 | |||||||||||||||
Other revenues | 6 | 7 | 8 | 13 | |||||||||||||||||||
Total operating revenues | 2,676 | 2,590 | 2,675 | 5,266 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Patient care costs | 1,756 | 1,739 | 1,802 | 3,496 | |||||||||||||||||||
General and administrative | 235 | 221 | 210 | 456 | |||||||||||||||||||
Depreciation and amortization | 160 | 156 | 148 | 316 | |||||||||||||||||||
Equity investment income | (9) | (6) | (8) | (15) | |||||||||||||||||||
Total operating expenses | 2,143 | 2,110 | 2,152 | 4,253 | |||||||||||||||||||
Segment operating income | $ | 534 | $ | 480 | $ | 523 | $ | 1,014 | |||||||||||||||
Metrics | |||||||||||||||||||||||
Volume: | |||||||||||||||||||||||
Treatments | 7,413,497 | 7,286,934 | 7,570,908 | 14,700,431 | |||||||||||||||||||
Number of treatment days | 78.0 | 77.0 | 78.0 | 155.0 | |||||||||||||||||||
Average treatments per day | 95,045 | 94,636 | 97,063 | 94,841 | |||||||||||||||||||
Per day year-over-year (decrease) increase | (2.1) | % | (2.3) | % | 0.7 | % | (2.2) | % | |||||||||||||||
Normalized year-over-year non-acquired treatment growth(5) | (1.9) | % | (2.2) | % | 1.6 | % | |||||||||||||||||
Operating net revenues: | |||||||||||||||||||||||
Average patient service revenue per treatment | $ | 360.14 | $ | 354.50 | $ | 352.26 | $ | 357.35 | |||||||||||||||
Expenses: | |||||||||||||||||||||||
Patient care costs per treatment | $ | 236.90 | $ | 238.69 | $ | 238.02 | $ | 237.79 | |||||||||||||||
General and administrative expenses per treatment | $ | 31.72 | $ | 30.33 | $ | 27.78 | $ | 31.03 | |||||||||||||||
Accounts receivable: | |||||||||||||||||||||||
Receivables | $ | 1,766 | $ | 1,892 | $ | 1,649 | |||||||||||||||||
DSO | 61 | 67 | 57 | ||||||||||||||||||||
Three months ended | Six months ended June 30, 2021 | ||||||||||||||||||||||
June 30, 2021 | March 31, 2021 | June 30, 2020 | |||||||||||||||||||||
4. Cash flow: | |||||||||||||||||||||||
Operating cash flow | $ | 680 | $ | 154 | $ | 651 | $ | 834 | |||||||||||||||
Operating cash flow from continuing operations | $ | 680 | $ | 154 | $ | 651 | $ | 834 | |||||||||||||||
Operating cash flow from continuing operations, last twelve months | $ | 1,802 | $ | 1,773 | $ | 2,337 | |||||||||||||||||
Free cash flow from continuing operations(1) | $ | 503 | $ | (17) | $ | 507 | $ | 485 | |||||||||||||||
Free cash flow from continuing operations, last twelve months(1) | $ | 982 | $ | 986 | $ | 1,543 | |||||||||||||||||
Capital expenditures from continuing operations: | |||||||||||||||||||||||
Routine maintenance/IT/other | $ | 91 | $ | 90 | $ | 74 | $ | 181 | |||||||||||||||
Development and relocations | $ | 58 | $ | 55 | $ | 63 | $ | 113 | |||||||||||||||
Acquisition expenditures | $ | 20 | $ | 4 | $ | 10 | $ | 24 | |||||||||||||||
Proceeds from sale of self-developed properties | $ | 13 | $ | 16 | $ | 42 | $ | 29 | |||||||||||||||
5. Debt and capital structure: | |||||||||||||||||||||||
Total debt(6) | $ | 9,046 | $ | 9,063 | $ | 9,886 | |||||||||||||||||
Net debt, net of cash and cash equivalents(6) | $ | 8,002 | $ | 8,179 | $ | 6,957 | |||||||||||||||||
Leverage ratio (see calculation on page 13) | 3.30x | 3.39x | 3.66x | ||||||||||||||||||||
Weighted average effective interest rate: | |||||||||||||||||||||||
During the quarter | 3.36 | % | 3.08 | % | 3.64 | % | |||||||||||||||||
At end of the quarter | 3.33 | % | 3.18 | % | 3.65 | % | |||||||||||||||||
On the senior secured credit facilities at end of the quarter | 2.16 | % | 1.97 | % | 2.10 | % | |||||||||||||||||
Debt with fixed and capped rates as a percentage of total debt: | |||||||||||||||||||||||
Debt with rates fixed by its terms | 51 | % | 51 | % | 54 | % | |||||||||||||||||
Debt with rates fixed by its terms or capped by cap agreements | 90 | % | 90 | % | 90 | % | |||||||||||||||||
Amount spent on share repurchases | $ | 241 | $ | 322 | $ | — | $ | 563 | |||||||||||||||
Number of shares repurchased | 2,070 | 2,949 | — | 5,019 |
Twelve months ended | |||||||||||||||||
June 30, 2021 | March 31, 2021 | June 30, 2020 | |||||||||||||||
Net income attributable to DaVita Inc. from continuing operations (1) | $ | 883 | $ | 791 | $ | 824 | |||||||||||
Income taxes | 306 | 308 | 322 | ||||||||||||||
Interest expense | 251 | 255 | 308 | ||||||||||||||
Depreciation and amortization | 654 | 641 | 626 | ||||||||||||||
Impairment charges | — | — | 84 | ||||||||||||||
Noncontrolling interests and equity investment income, net | 248 | 247 | 221 | ||||||||||||||
Stock-settled stock-based compensation | 99 | 94 | 80 | ||||||||||||||
Debt prepayment, refinancing and redemption charges | 86 | 86 | 24 | ||||||||||||||
Loss on changes in ownership interest, net | — | 16 | 16 | ||||||||||||||
Other | 5 | 29 | 10 | ||||||||||||||
“Consolidated EBITDA” | $ | 2,532 | $ | 2,468 | $ | 2,515 | |||||||||||
June 30, 2021 | March 31, 2021 | June 30, 2020 | |||||||||||||||
Total debt, excluding debt discount and other deferred financing costs(2) | $ | 9,046 | $ | 9,063 | $ | 9,886 | |||||||||||
Letters of credit issued | 69 | 65 | 57 | ||||||||||||||
9,115 | 9,128 | 9,944 | |||||||||||||||
Less: Cash and cash equivalents including short-term investments(3) | (750) | (750) | (750) | ||||||||||||||
Consolidated net debt | $ | 8,365 | $ | 8,378 | $ | 9,194 | |||||||||||
Last twelve months “Consolidated EBITDA” | $ | 2,532 | $ | 2,468 | $ | 2,515 | |||||||||||
Leverage ratio | 3.30x | 3.39x | 3.66x | ||||||||||||||
Maximum leverage ratio permitted under the Credit Agreement | 5.00x | 5.00x | 5.00x |
Three months ended | |||||||||||||||||||||||||||||||||||
June 30, 2021 | March 31, 2021 | June 30, 2020 | |||||||||||||||||||||||||||||||||
Dollars | Per share | Dollars | Per share | Dollars | Per share | ||||||||||||||||||||||||||||||
Net income from continuing operations attributable to DaVita Inc. | $ | 294 | $ | 2.64 | $ | 237 | $ | 2.09 | $ | 202 | $ | 1.62 | |||||||||||||||||||||||
Operating charges: | |||||||||||||||||||||||||||||||||||
Loss on changes in ownership interests, net | — | — | — | — | 16 | 0.13 | |||||||||||||||||||||||||||||
General and administrative: | |||||||||||||||||||||||||||||||||||
Accruals for legal matters | — | — | — | — | 35 | 0.28 | |||||||||||||||||||||||||||||
Related income tax | — | — | — | — | (11) | (0.09) | |||||||||||||||||||||||||||||
Adjusted net income from continuing operations attributable to DaVita Inc. | $ | 294 | $ | 2.64 | $ | 237 | $ | 2.09 | $ | 242 | $ | 1.95 |
Six months ended | |||||||||||||||||||||||
June 30, 2021 | June 30, 2020 | ||||||||||||||||||||||
Dollars | Per share | Dollars | Per share | ||||||||||||||||||||
Net income from continuing operations attributable to DaVita Inc. | $ | 531 | $ | 4.72 | $ | 431 | $ | 3.44 | |||||||||||||||
Operating charges: | |||||||||||||||||||||||
Loss on changes in ownership interests, net | — | — | 16 | 0.13 | |||||||||||||||||||
General and administrative: | |||||||||||||||||||||||
Accruals for legal matters | — | — | 35 | 0.28 | |||||||||||||||||||
Debt refinancing charges | — | — | 3 | 0.02 | |||||||||||||||||||
Related income tax | — | — | (12) | (0.09) | |||||||||||||||||||
Adjusted net income from continuing operations attributable to DaVita Inc. | $ | 531 | $ | 4.72 | $ | 474 | $ | 3.78 |
Three months ended | Six months ended | ||||||||||||||||||||||||||||
June 30, 2021 | March 31, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | |||||||||||||||||||||||||
Consolidated: | |||||||||||||||||||||||||||||
Operating income | $ | 490 | $ | 443 | $ | 410 | $ | 933 | $ | 875 | |||||||||||||||||||
Operating charges: | |||||||||||||||||||||||||||||
Loss on changes in ownership interests, net | — | — | 16 | — | 16 | ||||||||||||||||||||||||
General and administrative: | |||||||||||||||||||||||||||||
Accruals for legal matters | — | — | 35 | — | 35 | ||||||||||||||||||||||||
Adjusted operating income | $ | 490 | $ | 443 | $ | 461 | $ | 933 | $ | 927 |
Three months ended | Six months ended | ||||||||||||||||||||||||||||
June 30, 2021 | March 31, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | |||||||||||||||||||||||||
Consolidated: | |||||||||||||||||||||||||||||
U.S. dialysis: | |||||||||||||||||||||||||||||
Segment operating income | 534 | 480 | 523 | 1,014 | 1,014 | ||||||||||||||||||||||||
Other - Ancillary services: | |||||||||||||||||||||||||||||
U.S. | |||||||||||||||||||||||||||||
Segment operating loss | (28) | (25) | (41) | (53) | (60) | ||||||||||||||||||||||||
Loss on changes in ownership interests, net | — | — | 16 | — | 16 | ||||||||||||||||||||||||
Adjusted operating loss | (28) | (25) | (25) | (53) | (44) | ||||||||||||||||||||||||
International | |||||||||||||||||||||||||||||
Segment operating income | $ | 10 | $ | 13 | $ | 1 | $ | 24 | $ | 18 | |||||||||||||||||||
Adjusted Other - Ancillary services operating loss | $ | (18) | $ | (12) | $ | (23) | $ | (30) | $ | (26) | |||||||||||||||||||
Corporate administrative support expenses: | |||||||||||||||||||||||||||||
Segment expenses | $ | (25) | $ | (25) | $ | (73) | $ | (51) | $ | (97) | |||||||||||||||||||
Accruals for legal matters | $ | — | $ | — | $ | 35 | $ | — | $ | 35 | |||||||||||||||||||
Adjusted Corporate administrative support expenses | $ | (25) | $ | (25) | $ | (38) | $ | (51) | $ | (62) | |||||||||||||||||||
Adjusted operating income | $ | 490 | $ | 443 | $ | 461 | $ | 933 | $ | 927 |
Three months ended | Six months ended June 30, 2021 | ||||||||||||||||||||||
June 30, 2021 | March 31, 2021 | June 30, 2020 | |||||||||||||||||||||
Income from continuing operations before income taxes | $ | 432 | $ | 377 | $ | 338 | $ | 809 | |||||||||||||||
Less: Noncontrolling owners’ income primarily attributable to non-tax paying entities | (58) | (54) | (53) | (112) | |||||||||||||||||||
Income from continuing operations before income taxes attributable to DaVita Inc. | $ | 375 | $ | 323 | $ | 285 | $ | 697 | |||||||||||||||
Income tax expense for continuing operations | $ | 81 | $ | 85 | $ | 83 | $ | 167 | |||||||||||||||
Less: Income tax attributable to noncontrolling interests | — | — | — | — | |||||||||||||||||||
Income tax expense from continuing operations attributable to DaVita Inc. | $ | 81 | $ | 85 | $ | 83 | $ | 166 | |||||||||||||||
Effective income tax rate on income from continuing operations attributable to DaVita Inc. | 21.6 | % | 26.4 | % | 29.2 | % | 23.8 | % |
Three months ended | Six months ended June 30, 2021 | ||||||||||||||||||||||
June 30, 2021 | March 31, 2021 | June 30, 2020 | |||||||||||||||||||||
Income from continuing operations before income taxes | $ | 432 | $ | 377 | $ | 338 | $ | 809 | |||||||||||||||
Operating charges: | |||||||||||||||||||||||
Loss on changes in ownership interests, net | — | — | 16 | — | |||||||||||||||||||
General and administrative: | |||||||||||||||||||||||
Accruals for legal matters | — | — | 35 | — | |||||||||||||||||||
Noncontrolling owners’ income primarily attributable to non-tax paying entities | (58) | (54) | (53) | (112) | |||||||||||||||||||
Adjusted income from continuing operations before income taxes attributable to DaVita Inc. | $ | 375 | $ | 323 | $ | 336 | $ | 697 | |||||||||||||||
Income tax expense | $ | 81 | $ | 85 | $ | 83 | $ | 167 | |||||||||||||||
Plus income tax related to: | |||||||||||||||||||||||
Operating charges: | |||||||||||||||||||||||
Loss on changes in ownership interests, net | — | — | 2 | — | |||||||||||||||||||
General and administrative: | |||||||||||||||||||||||
Accruals for legal matters | — | — | 9 | — | |||||||||||||||||||
Less income tax related to: | |||||||||||||||||||||||
Noncontrolling interests | — | — | — | — | |||||||||||||||||||
Income tax on adjusted income from continuing operations attributable to DaVita Inc. | $ | 81 | $ | 85 | $ | 94 | $ | 166 | |||||||||||||||
Effective income tax rate on adjusted income from continuing operations attributable to DaVita Inc. | 21.6 | % | 26.4 | % | 28.0 | % | 23.8 | % |
Three months ended | Six months ended June 30, 2021 | ||||||||||||||||||||||
June 30, 2021 | March 31, 2021 | June 30, 2020 | |||||||||||||||||||||
Net cash provided by continuing operating activities | $ | 680 | $ | 154 | $ | 651 | $ | 834 | |||||||||||||||
Less: Distributions to noncontrolling interests | (45) | (54) | (60) | (99) | |||||||||||||||||||
Plus: Contributions from noncontrolling interests | 5 | 11 | 11 | 16 | |||||||||||||||||||
Cash provided by operating activities from continuing operations | $ | 639 | $ | 111 | $ | 602 | $ | 751 | |||||||||||||||
Less: Expenditures for routine maintenance and information technology | (91) | (90) | (74) | (181) | |||||||||||||||||||
Less: Expenditures for development | (58) | (55) | (63) | (113) | |||||||||||||||||||
Plus: Proceeds from sale of self-developed properties | 13 | 16 | 42 | 29 | |||||||||||||||||||
Free cash flow from continuing operations | $ | 503 | $ | (17) | $ | 507 | $ | 485 |
Twelve months ended | |||||||||||||||||
June 30, 2021 | March 31, 2021 | June 30, 2020 | |||||||||||||||
Net cash provided by operating activities from continuing operations | $ | 1,802 | $ | 1,773 | $ | 2,337 | |||||||||||
Less: Distributions to noncontrolling interests | (234) | (249) | (256) | ||||||||||||||
Plus: Contributions from noncontrolling interests | 38 | 44 | 47 | ||||||||||||||
Cash provided by operating activities from continuing operations | $ | 1,606 | $ | 1,568 | $ | 2,128 | |||||||||||
Less: Expenditures for routine maintenance and information technology | (425) | (408) | (370) | ||||||||||||||
Less: Expenditures for development | (252) | (257) | (315) | ||||||||||||||
Plus: Proceeds from sale of self-developed properties | 54 | 83 | 100 | ||||||||||||||
Free cash flow from continuing operations | $ | 982 | $ | 986 | $ | 1,543 |
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Document and Entity Information Document and Entity Information |
Aug. 03, 2021 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Aug. 03, 2021 |
Entity Registrant Name | DAVITA INC. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 1-14106 |
Entity Tax Identification Number | 51-0354549 |
Entity Address, Address Line One | 2000 16th Street |
Entity Address, City or Town | Denver, |
Entity Address, State or Province | CO |
Entity Address, Postal Zip Code | 80202 |
City Area Code | 720 |
Local Phone Number | 631-2100 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, $0.001 par value |
Trading Symbol | DVA |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0000927066 |
Amendment Flag | false |
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