Davita Inc. (DVA, Financial) filed Quarterly Report for the period ended 2010-06-30.
Davita Inc. has a market cap of $6.4 billion; its shares were traded at around $61.61 with a P/E ratio of 14.7 and P/S ratio of 1.1. 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 Steve Mandel of Lone Pine Capital, Lee Ainslie of Maverick Capital, Andreas Halvorsen of Viking Global Investors LP, Louis Moore Bacon of Moore Capital Management, LP, Paul Tudor Jones of The Tudor Group, Pioneer Investments, Edward Owens of Vanguard Health Care Fund, Bruce Kovner of Caxton Associates, George Soros of Soros Fund Management LLC, Jeremy Grantham of GMO LLC, Chuck Royce of Royce& Associates, Steven Cohen of SAC Capital Advisors.
Consolidated net operating revenues for the six months ended June 30, 2010 increased by approximately $180 million, or approximately 6.1%, 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 $157 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. The average dialysis revenue per treatment was flat for the first six months of 2010 as compared to the same period in 2009. The increase in consolidated net revenues was also due to an increase of approximately $23 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 physician services.
Dialysis and related lab services patient care costs on a per treatment basis decreased by approximately $2 in the second quarter of 2010 as compared to the second quarter of 2009. The decrease in the per treatment costs was primarily attributable to several items totaling approximately $8, which include lower benefit costs, a decrease in the intensities of physician-prescribed pharmaceuticals and improved productivity, partially offset by an increase in other operating costs of our dialysis centers, an increase in pharmaceutical costs and an increase in labor costs and related payroll taxes totaling $6.
General and administrative expenses. Dialysis and related lab services general and administrative expenses of approximately $109 million for the second quarter of 2010 decreased by approximately $3 million as compared to the first quarter of 2010. The decrease was primarily due to lower payroll taxes and lower professional fees for legal and compliance initiatives. In absolute dollars, general and administrative expenses increased by approximately $3 million in the second quarter of 2010, as compared to the same period in 2009. The increase was primarily due to higher labor and benefit costs and the timing of certain expenditures totaling approximately $5 million, partially offset by lower professional fees of approximately $2 million.
Depreciation and amortization. Depreciation and amortization for dialysis and related lab services was approximately $57 million in the second quarter of 2010, as compared to $56 million for both the first quarter of 2010 and for the second quarter of 2009. The slight increase of $1 million in depreciation and amortization for dialysis and related lab services in the second quarter of 2010, as compared to both the first quarter of 2010 and the second quarter of 2009, was primarily due to growth in new centers and from acquisitions.
Depreciation and amortization for dialysis and related lab services was approximately $113 million for the six months ended June 30, 2010, as compared to $112 million for the same period in 2009. This slight increase of $1 million was primarily due to growth in new centers and expansions of certain existing centers, partially offset by certain assets becoming fully depreciated.
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Davita Inc. has a market cap of $6.4 billion; its shares were traded at around $61.61 with a P/E ratio of 14.7 and P/S ratio of 1.1. 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 Steve Mandel of Lone Pine Capital, Lee Ainslie of Maverick Capital, Andreas Halvorsen of Viking Global Investors LP, Louis Moore Bacon of Moore Capital Management, LP, Paul Tudor Jones of The Tudor Group, Pioneer Investments, Edward Owens of Vanguard Health Care Fund, Bruce Kovner of Caxton Associates, George Soros of Soros Fund Management LLC, Jeremy Grantham of GMO LLC, Chuck Royce of Royce& Associates, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
Consolidated net operating revenues for the second quarter of 2010 increased by approximately $68 million, or approximately 4.5%, as compared to the second 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 $55 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 in the average dialysis revenue per treatment. The increase in consolidated net revenues was also due to an increase of approximately $13 million in the ancillary services and strategic initiatives net revenues primarily from growth in our pharmacy services.Consolidated net operating revenues for the six months ended June 30, 2010 increased by approximately $180 million, or approximately 6.1%, 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 $157 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. The average dialysis revenue per treatment was flat for the first six months of 2010 as compared to the same period in 2009. The increase in consolidated net revenues was also due to an increase of approximately $23 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 physician services.
Dialysis and related lab services patient care costs on a per treatment basis decreased by approximately $2 in the second quarter of 2010 as compared to the second quarter of 2009. The decrease in the per treatment costs was primarily attributable to several items totaling approximately $8, which include lower benefit costs, a decrease in the intensities of physician-prescribed pharmaceuticals and improved productivity, partially offset by an increase in other operating costs of our dialysis centers, an increase in pharmaceutical costs and an increase in labor costs and related payroll taxes totaling $6.
General and administrative expenses. Dialysis and related lab services general and administrative expenses of approximately $109 million for the second quarter of 2010 decreased by approximately $3 million as compared to the first quarter of 2010. The decrease was primarily due to lower payroll taxes and lower professional fees for legal and compliance initiatives. In absolute dollars, general and administrative expenses increased by approximately $3 million in the second quarter of 2010, as compared to the same period in 2009. The increase was primarily due to higher labor and benefit costs and the timing of certain expenditures totaling approximately $5 million, partially offset by lower professional fees of approximately $2 million.
Depreciation and amortization. Depreciation and amortization for dialysis and related lab services was approximately $57 million in the second quarter of 2010, as compared to $56 million for both the first quarter of 2010 and for the second quarter of 2009. The slight increase of $1 million in depreciation and amortization for dialysis and related lab services in the second quarter of 2010, as compared to both the first quarter of 2010 and the second quarter of 2009, was primarily due to growth in new centers and from acquisitions.
Depreciation and amortization for dialysis and related lab services was approximately $113 million for the six months ended June 30, 2010, as compared to $112 million for the same period in 2009. This slight increase of $1 million was primarily due to growth in new centers and expansions of certain existing centers, partially offset by certain assets becoming fully depreciated.
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