Davita Inc. (DVA, Financial) filed Quarterly Report for the period ended 2009-06-30.
DaVita Inc. is one of the largest providers of high-quality dialysis and related services for patients suffering from chronic kidney failure also known as end stage renal disease. The company provides dialysis and ancillary services through a network of outpatient dialysis facilities. Davita Inc. has a market cap of $5.22 billion; its shares were traded at around $50.52 with a P/E ratio of 13.8 and P/S ratio of 0.9. Davita Inc. had an annual average earning growth of 24.1% over the past 10 years. GuruFocus rated Davita Inc. the business predictability rank of 5-star.
Consolidated net operating revenues for the second quarter of 2009 increased by approximately $112 million, or approximately 7.9%, as compared to the second quarter of 2008. The increase in consolidated net operating revenues was primarily due to an increase in Dialysis and Related Lab Services net revenues of approximately $90 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, as well as an increase in the average revenue per treatment. The increase in consolidated net revenues was also due to an increase of approximately $22 million in the Ancillary Services and Strategic Initiatives net revenues primarily from growth in our pharmacy business.
The increase in consolidated net operating revenues of approximately $215 million, or approximately 7.8%, for the six months ended June 30, 2009, as compared to the same period in 2008, was primarily due to an increase in Dialysis and Related Lab Services net revenues of approximately $170 million, or 6.2%, which was primarily due to an increase in the number of dialysis treatments and an increase in the average dialysis revenue per treatment, with the balance of the increase in revenues of approximately $45 million, or 1.6%, from the Ancillary Services and Strategic Initiatives, primarily due to growth in our pharmacy business.
General and administrative expenses. Dialysis and Related Lab Services general and administrative expenses for the second quarter of 2009 increased in absolute dollars by approximately $3.4 million from the first quarter of 2009. The increase in the second quarter of 2009 compared to the first quarter of 2009 was primarily due to higher labor and benefit costs, partially offset by the timing of certain other expenditures that occurred in the first quarter of 2009. In absolute dollars, general and administrative expenses increased by approximately $6.3 million and $15.9 million in the second quarter of 2009 and for the six months ended June 30, 2009, respectively, as compared to the same periods in 2008. The increases were primarily due to higher labor and benefit costs as well as an increase in our professional fees for legal and compliance initiatives.
Dialysis and Related Lab Services operating income for the second quarter of 2009 increased by approximately $14 million, as compared to the first quarter of 2009. The increase in operating income was primarily attributable to an increase in revenue as a result of additional treatment days in the second quarter of 2009 and non-acquired treatment growth, as well as an increase in the average dialysis revenue per treatment of approximately $3 primarily from an increase in the intensities of physician-prescribed pharmaceuticals, partially offset by a seasonal decline in lab revenues due to the timing of annual testing and changes in the mix of our non-government payors. Operating income also increased as a result of improved labor productivity, lower payroll taxes and lower operating costs of our dialysis centers due to the timing of certain expenses that occurred in the first quarter of 2009.
Dialysis and Related Lab Services operating income for the second quarter of 2009 increased by approximately $13 million, as compared to the second quarter of 2008. The increase in operating income was primarily attributable to growth in revenue from additional treatments as a result of non-acquired treatment growth, as well as increases in our average dialysis revenue per treatment of approximately $4 primarily from a 1% increase in the Medicare composite rate and increases in our non-government payment rates, partially offset by changes in the mix of our non-government payors and a decrease in the intensities of physician-prescribed pharmaceuticals outpacing increases in operating expenses such as higher labor and benefit costs.
Read the The complete ReportDVA is in the portfolios of Andreas Halvorsen of Viking Global Investors LP, Lee Ainslie of Maverick Capital, Edward Owens of Vanguard Health Care Fund.
DaVita Inc. is one of the largest providers of high-quality dialysis and related services for patients suffering from chronic kidney failure also known as end stage renal disease. The company provides dialysis and ancillary services through a network of outpatient dialysis facilities. Davita Inc. has a market cap of $5.22 billion; its shares were traded at around $50.52 with a P/E ratio of 13.8 and P/S ratio of 0.9. Davita Inc. had an annual average earning growth of 24.1% over the past 10 years. GuruFocus rated Davita Inc. the business predictability rank of 5-star.
Highlight of Business Operations:
$64 million, principally due to an increase in the number of treatments as a result of additional treatment days in the second quarter of 2009 and non-acquired treatment growth, as well as an increase in the average 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 from growth in our pharmacy business.Consolidated net operating revenues for the second quarter of 2009 increased by approximately $112 million, or approximately 7.9%, as compared to the second quarter of 2008. The increase in consolidated net operating revenues was primarily due to an increase in Dialysis and Related Lab Services net revenues of approximately $90 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, as well as an increase in the average revenue per treatment. The increase in consolidated net revenues was also due to an increase of approximately $22 million in the Ancillary Services and Strategic Initiatives net revenues primarily from growth in our pharmacy business.
The increase in consolidated net operating revenues of approximately $215 million, or approximately 7.8%, for the six months ended June 30, 2009, as compared to the same period in 2008, was primarily due to an increase in Dialysis and Related Lab Services net revenues of approximately $170 million, or 6.2%, which was primarily due to an increase in the number of dialysis treatments and an increase in the average dialysis revenue per treatment, with the balance of the increase in revenues of approximately $45 million, or 1.6%, from the Ancillary Services and Strategic Initiatives, primarily due to growth in our pharmacy business.
General and administrative expenses. Dialysis and Related Lab Services general and administrative expenses for the second quarter of 2009 increased in absolute dollars by approximately $3.4 million from the first quarter of 2009. The increase in the second quarter of 2009 compared to the first quarter of 2009 was primarily due to higher labor and benefit costs, partially offset by the timing of certain other expenditures that occurred in the first quarter of 2009. In absolute dollars, general and administrative expenses increased by approximately $6.3 million and $15.9 million in the second quarter of 2009 and for the six months ended June 30, 2009, respectively, as compared to the same periods in 2008. The increases were primarily due to higher labor and benefit costs as well as an increase in our professional fees for legal and compliance initiatives.
Dialysis and Related Lab Services operating income for the second quarter of 2009 increased by approximately $14 million, as compared to the first quarter of 2009. The increase in operating income was primarily attributable to an increase in revenue as a result of additional treatment days in the second quarter of 2009 and non-acquired treatment growth, as well as an increase in the average dialysis revenue per treatment of approximately $3 primarily from an increase in the intensities of physician-prescribed pharmaceuticals, partially offset by a seasonal decline in lab revenues due to the timing of annual testing and changes in the mix of our non-government payors. Operating income also increased as a result of improved labor productivity, lower payroll taxes and lower operating costs of our dialysis centers due to the timing of certain expenses that occurred in the first quarter of 2009.
Dialysis and Related Lab Services operating income for the second quarter of 2009 increased by approximately $13 million, as compared to the second quarter of 2008. The increase in operating income was primarily attributable to growth in revenue from additional treatments as a result of non-acquired treatment growth, as well as increases in our average dialysis revenue per treatment of approximately $4 primarily from a 1% increase in the Medicare composite rate and increases in our non-government payment rates, partially offset by changes in the mix of our non-government payors and a decrease in the intensities of physician-prescribed pharmaceuticals outpacing increases in operating expenses such as higher labor and benefit costs.
Read the The complete ReportDVA is in the portfolios of Andreas Halvorsen of Viking Global Investors LP, Lee Ainslie of Maverick Capital, Edward Owens of Vanguard Health Care Fund.
