Davita Inc. (DVA, Financial) filed Quarterly Report for the period ended 2010-09-30.
Davita Inc. has a market cap of $7.41 billion; its shares were traded at around $72.33 with a P/E ratio of 17.2 and P/S ratio of 1.2. Davita Inc. had an annual average earning growth of 23.5% over the past 10 years. GuruFocus rated Davita Inc. the business predictability rank of 4-star.DVA is in the portfolios of Larry Robbins of Glenview Capital, Lee Ainslie of Maverick Capital, Steve Mandel of Lone Pine Capital, Andreas Halvorsen of Viking Global Investors LP, Pioneer Investments, Edward Owens of Vanguard Health Care Fund, George Soros of Soros Fund Management LLC, Chuck Royce of Royce& Associates, Steven Cohen of SAC Capital Advisors, Jeremy Grantham of GMO LLC.
Consolidated net operating revenues for the third quarter of 2010 increased by approximately $78 million, or approximately 5.0%, as compared to the third quarter of 2009. The increase in consolidated net operating revenues was primarily due to an increase in dialysis and related lab services net revenues of approximately $62 million, principally due to an increase in the number of treatments from non-acquired treatment growth in existing and new centers and growth through acquisitions, partially offset by a decrease of approximately $4 in the average dialysis revenue per treatment. The increase in consolidated net revenues was also due to an increase of approximately $15 million in the ancillary services and strategic initiatives net revenues primarily from growth in our pharmacy services.
Consolidated net operating revenues for the nine months ended September 30, 2010 increased by approximately $257 million, or approximately 5.7%, as compared to same period in 2009. The increase in consolidated net operating revenues was primarily due to an increase in dialysis and related lab services net revenues of approximately $219 million, principally due to an increase in the number of treatments from non-acquired treatment growth in existing and new centers and growth through acquisitions, partially offset by a decrease of approximately $1 in the average dialysis revenue per treatment. The increase in consolidated net revenues was also due to an increase of approximately $38 million in the ancillary services and strategic initiatives net revenues primarily from growth in our pharmacy services, partially offset by a decrease in revenue in our disease management services and in our clinical research services.
Consolidated operating income for the third quarter of 2010 increased by approximately $15 million, or approximately 6.2%, as compared to the second quarter of 2010. The increase in consolidated operating income was primarily due to strong treatment growth as a result of one additional treatment day in the quarter and from non-acquired growth and acquisitions as well as an increase of approximately $4 in the average dialysis revenue per treatment. The increase was partially offset by higher labor and benefit costs, higher pharmaceuticals costs, a decline in the intensities of physician-prescribed pharmaceuticals, a decline in productivity and an increase in professional fees.
Consolidated operating income for the third quarter of 2010 increased by $12 million, or approximately 4.9%, as compared to the third quarter of 2009. The increase in consolidated operating income was primarily due to growth in revenue in the dialysis and related lab services, primarily from additional treatments, partially offset by a decrease in the average dialysis revenue per treatment. Consolidated operating income also increased as a result of cost control initiatives, improved productivity as well as a decrease of $3 million in operating losses in the ancillary services and strategic initiatives. However, consolidated operating income was negatively impacted by a decline in the intensities of physician-prescribed pharmaceuticals, higher labor costs and pharmaceutical costs and an increase in professional fees.
Dialysis and related lab services net operating revenues for the third quarter of 2010 increased by approximately $57 million, or approximately 3.8%, as compared to the second quarter of 2010. The increase in net operating revenues was primarily due to an increase in the number of treatments as a result of one additional treatment day in the third quarter of 2010 and additional treatments from non-acquired growth and acquisitions totaling approximately 2.5%. This increase was also due to an increase in our average dialysis revenue per treatment of approximately $4, or approximately 1.2%. The increase in the average dialysis revenue per treatment was primarily due to an increase in some of our commercial payment rates, an increase in our reimbursement rates for average sale price, or ASP, associated with EPO and seasonal flu shots administrations, partially offset by a decline in the intensities of physician-prescribed pharmaceuticals and a decline in the commercial payor mix.
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Davita Inc. has a market cap of $7.41 billion; its shares were traded at around $72.33 with a P/E ratio of 17.2 and P/S ratio of 1.2. Davita Inc. had an annual average earning growth of 23.5% over the past 10 years. GuruFocus rated Davita Inc. the business predictability rank of 4-star.DVA is in the portfolios of Larry Robbins of Glenview Capital, Lee Ainslie of Maverick Capital, Steve Mandel of Lone Pine Capital, Andreas Halvorsen of Viking Global Investors LP, Pioneer Investments, Edward Owens of Vanguard Health Care Fund, George Soros of Soros Fund Management LLC, Chuck Royce of Royce& Associates, Steven Cohen of SAC Capital Advisors, Jeremy Grantham of GMO LLC.
Highlight of Business Operations:
Consolidated net operating revenues for the third quarter of 2010 increased by approximately $65 million, or approximately 4.1%, as compared to the second quarter of 2010. The increase in consolidated net operating revenues was primarily due to an increase in dialysis and related lab services net revenues of approximately $57 million, principally due to an increase in the number of treatments as a result of one additional treatment day in the third quarter of 2010 and additional treatments from non-acquired growth and acquisitions, as well as an increase of approximately $4 in the average dialysis revenue per treatment. The increase in consolidated net revenues was also due to an increase of approximately $7 million in the ancillary services and strategic initiatives net revenues primarily as a result of volume growth in our pharmacy services.Consolidated net operating revenues for the third quarter of 2010 increased by approximately $78 million, or approximately 5.0%, as compared to the third quarter of 2009. The increase in consolidated net operating revenues was primarily due to an increase in dialysis and related lab services net revenues of approximately $62 million, principally due to an increase in the number of treatments from non-acquired treatment growth in existing and new centers and growth through acquisitions, partially offset by a decrease of approximately $4 in the average dialysis revenue per treatment. The increase in consolidated net revenues was also due to an increase of approximately $15 million in the ancillary services and strategic initiatives net revenues primarily from growth in our pharmacy services.
Consolidated net operating revenues for the nine months ended September 30, 2010 increased by approximately $257 million, or approximately 5.7%, as compared to same period in 2009. The increase in consolidated net operating revenues was primarily due to an increase in dialysis and related lab services net revenues of approximately $219 million, principally due to an increase in the number of treatments from non-acquired treatment growth in existing and new centers and growth through acquisitions, partially offset by a decrease of approximately $1 in the average dialysis revenue per treatment. The increase in consolidated net revenues was also due to an increase of approximately $38 million in the ancillary services and strategic initiatives net revenues primarily from growth in our pharmacy services, partially offset by a decrease in revenue in our disease management services and in our clinical research services.
Consolidated operating income for the third quarter of 2010 increased by approximately $15 million, or approximately 6.2%, as compared to the second quarter of 2010. The increase in consolidated operating income was primarily due to strong treatment growth as a result of one additional treatment day in the quarter and from non-acquired growth and acquisitions as well as an increase of approximately $4 in the average dialysis revenue per treatment. The increase was partially offset by higher labor and benefit costs, higher pharmaceuticals costs, a decline in the intensities of physician-prescribed pharmaceuticals, a decline in productivity and an increase in professional fees.
Consolidated operating income for the third quarter of 2010 increased by $12 million, or approximately 4.9%, as compared to the third quarter of 2009. The increase in consolidated operating income was primarily due to growth in revenue in the dialysis and related lab services, primarily from additional treatments, partially offset by a decrease in the average dialysis revenue per treatment. Consolidated operating income also increased as a result of cost control initiatives, improved productivity as well as a decrease of $3 million in operating losses in the ancillary services and strategic initiatives. However, consolidated operating income was negatively impacted by a decline in the intensities of physician-prescribed pharmaceuticals, higher labor costs and pharmaceutical costs and an increase in professional fees.
Dialysis and related lab services net operating revenues for the third quarter of 2010 increased by approximately $57 million, or approximately 3.8%, as compared to the second quarter of 2010. The increase in net operating revenues was primarily due to an increase in the number of treatments as a result of one additional treatment day in the third quarter of 2010 and additional treatments from non-acquired growth and acquisitions totaling approximately 2.5%. This increase was also due to an increase in our average dialysis revenue per treatment of approximately $4, or approximately 1.2%. The increase in the average dialysis revenue per treatment was primarily due to an increase in some of our commercial payment rates, an increase in our reimbursement rates for average sale price, or ASP, associated with EPO and seasonal flu shots administrations, partially offset by a decline in the intensities of physician-prescribed pharmaceuticals and a decline in the commercial payor mix.
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