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DaVita Inc. 3rd Quarter 2019 Results

DaVita Inc. 3rd Quarter 2019 Results

DENVER, Nov. 5, 2019 /PRNewswire/ -- DaVita Inc. (DVA) today announced results for the quarter ended September 30, 2019.

Third quarter 2019 financial and operational highlights:

  • Consolidated revenues of $2.904 billion.
  • Operating income of $378 million and adjusted operating income of $462 million.
  • Cash flows from continuing operations of $648 million.
  • Entered into a new $5.5 billion senior secured credit agreement and redeemed our 5.75% senior notes.
  • Repurchased 30,591,750 shares of our common stock at an average cost of $57.14 per share.

 


Three months ended
September 30,


Nine months ended
September 30,


2019


2018


2019


2018

Net income attributable to DaVita Inc.:

(dollars in millions, except per share data)


Net income from continuing operations

$

150



$

73



$

465



$

464



Per share

$

0.99



$

0.44



$

2.87



$

2.66



Adjusted net income from continuing operations(1)

$

232



$

93



$

588



$

467



Per share adjusted(1)

$

1.53



$

0.56



$

3.64



$

2.68



Net income (loss)

$

143



$

(137)



$

566



$

309



Per share

$

0.95



$

(0.82)



$

3.50



$

1.77


 


Three months ended
September 30,


Nine months ended
September 30,


2019


2018


2019


2018

Operating income:

(dollars in millions)


Operating income

$

378



$

289



$

1,181



$

1,138



Adjusted operating income(1)

$

462



$

314



$

1,306



$

1,143


________________________

(1)

For the definitions of non-GAAP financial measures see the note titled "Note on Non-GAAP Financial Measures" and related reconciliations beginning at page 14.

Certain items impacting the quarter:

Debt transactions: On August 12, 2019, we entered into a new $5.5 billion senior secured credit agreement consisting of a $1.75 billion senior secured Term Loan A facility with a delayed draw feature, a $2.75 billion senior secured Term Loan B facility and a $1.0 billion senior secured revolving line of credit. As of September 30, 2019, the new Term Loan A and Term Loan B were fully drawn and the new revolving line of credit remained undrawn. We used the proceeds from the new senior secured credit facilities to pay off the remaining balances outstanding on our previous senior secured credit facilities, redeem our 5.75% senior notes due 2022 and pay related redemption fees, and fund our modified "Dutch auction" tender offer (Tender Offer) to purchase shares of our common stock as further described below, as well as to repurchase additional shares of our common stock through open market transactions. The remaining debt borrowings added cash to our balance sheet for potential acquisitions, share repurchases and other general corporate purposes.

As a result of the debt transactions described above, we recorded debt refinancing and redemption charges of $21 million in the third quarter of 2019. These charges consist of write-offs of old debt discount and deferred financing costs, as well as the redemption premium associated with our 5.75% senior notes and professional fees.

Share repurchases: The following table summarizes repurchases of our common stock during the three and nine months ended September 30, 2019.


Three months ended September 30, 2019


Nine months ended September 30, 2019


Shares
repurchased


Amount paid
(in millions)


Average
amount


Shares
repurchased


Amount paid
(in millions)


Average
amount

Tender Offer(1)

21,801,975



$

1,234



$

56.60



21,801,975



$

1,234



$

56.60


Open market repurchases

8,789,775



514



58.49



10,849,751



626



57.72



30,591,750



$

1,748



$

57.14



32,651,726



$

1,860



$

56.97


___________________

(1)

The amount paid for shares repurchased associated with the Company's Tender Offer during the three and nine months ended September 30, 2019 includes the clearing price of $56.50 per share plus related fees and expenses of $2 million.

In addition to the share repurchases described above, we have also repurchased 4,283,376 shares of our common stock for $246 million at an average cost of $57.32 per share from October 1, 2019 through November 4, 2019. Effective November 4, 2019, our Board of Directors terminated all remaining prior share repurchase authorizations available to us and approved a new share repurchase authorization of $2 billion.

Non-GAAP adjustments to operating income:

Goodwill impairment charge: During the quarter ended September 30, 2019, we recognized a non-cash goodwill impairment charge of $79 million in our Germany kidney care business as a result of continuing developments in the business and our expected timing and ability to mitigate them. This charge included a $17 million increase to the goodwill impairment charge due to the deferred tax assets that the impairment itself generated. The result was a $79 million goodwill impairment charge to operating income, a $17 million credit to tax expense, and a net $62 million impact on net income. We also recognized a $5 million goodwill impairment charge in our other German health operations.

Financial and operating metrics:


Three months ended
September 30,


Twelve months ended
September 30,


2019


2018


2019


2018

Cash flow:

(dollars in millions)


Operating cash flow

$

641



$

458



$

1,781



$

1,727



Operating cash flow from continuing operations

$

648



$

362



$

1,602



$

1,460



Free cash flow from continuing operations(1)

$

437



$

115



$

722



$

498


___________________

(1)

For the definitions of non-GAAP financial measures see the note titled "Note on Non-GAAP Financial Measures" and related reconciliations beginning at page 14.

Volume:  Total U.S. dialysis treatments for the third quarter of 2019 were 7,673,191, or an average of 97,129 treatments per day, representing a per day increase of 2.7% over the third quarter of 2018. Normalized non-acquired treatment growth in the third quarter of 2019 as compared to the third quarter of 2018 was 2.2%.

Effective income tax rate:  Our effective income tax rate on income from continuing operations was 23.8% and 24.3% for the three and nine months ended September 30, 2019, respectively. This effective income tax rate was impacted by the amount of third party owners' income attributable to non-tax paying entities. The effective income tax rate on income from continuing operations attributable to DaVita Inc. was 30.3% and 29.8% for the three and nine months ended September 30, 2019, respectively.

Our effective income tax rate on income from continuing operations attributable to DaVita Inc. for the three and nine months ended September 30, 2019 was further impacted by the write-off of deferred financing costs, other debt costs and goodwill impairment charges. Excluding these items from the three and nine months ended September 30, 2019, our effective income tax rate on adjusted income from continuing operations attributable to DaVita Inc. would have been 27.6% and 28.4% for the three and nine months ended September 30, 2019, respectively.

Center activity:  As of September 30, 2019, we provided dialysis services to a total of approximately 233,300 patients at 2,985 outpatient dialysis centers, of which 2,736 centers were located in the United States and 249 centers were located in nine countries outside of the United States. During the third quarter of 2019, we opened a total of 24 new dialysis centers, acquired two dialysis centers and closed 13 dialysis centers in the United States. In addition, we opened one new dialysis center, acquired two dialysis centers and closed two dialysis centers outside of the United States during the third quarter of 2019.

Outlook:

The following forward-looking measures and the underlying assumptions involve significant risks and uncertainties, including those described below, and actual results may vary significantly from these current forward-looking measures. We do not provide guidance for consolidated operating income, diluted net income from continuing operations per share attributable to DaVita Inc. or effective tax rate on income from continuing operations on a GAAP basis nor a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures on a forward-looking basis because we are unable to predict certain items contained in the GAAP measures without unreasonable efforts. These non-GAAP financial measures do not include certain items, including goodwill impairment charges and foreign currency fluctuations, any of which may be significant. The guidance for effective income tax rate on adjusted income from continuing operations attributable to DaVita Inc. also excludes the write-off of deferred financing costs, other debt costs and the amount of third party owners' income and related taxes attributable to non-tax paying entities.


Current 2019 guidance


Prior 2019 guidance


Low


High


Low


High


(dollars in millions)

Adjusted operating income

$

1,740



$

1,770



$

1,640



$

1,700


Operating cash flow from continuing operations

$

1,525



$

1,675



$

1,450



$

1,625


Capital expenditures from continuing operations

$

740



$

780



$

800



$

840


Effective income tax rate on adjusted income from

 continuing operations attributable to DaVita Inc.

28.5

%


29.5

%


28.5

%


29.5

%










Current 2020 guidance


Prior 2020 guidance


Low


High


Low


High


(dollars in millions, except per share)

Adjusted diluted net income from continuing

 operations per share attributable to DaVita Inc.

$

5.25



$

5.75



$

5.00



$

5.50


Capital expenditures from continuing operations

$

700



$

750



$

700



$

750


We will be holding a conference call to discuss our results for the third quarter ended September 30, 2019, on November 5, 2019, at 5:00 p.m. Eastern Time. To join the conference call, please dial (877) 918-6630 from the U.S. or (517) 308-9042 from outside the U.S., and provide the operator the password 'Earnings'. A replay of the conference call will be available on our website at investors.davita.com for the following 30 days.

DaVita Inc. and its representatives may from time to time make written and oral forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"), including statements in this release, filings with the Securities and Exchange Commission ("SEC"), reports to stockholders and in meetings with investors and analysts. All such statements in this release, during the related presentation or other meetings, other than statements of historical fact, are forward-looking statements and as such are intended to be covered by the safe harbor for "forward-looking statements" provided by the PSLRA. Without limiting the foregoing, statements including the words "expect," "intend," "will," "plan," "anticipate," "believe," "we are confident that," "forecast," "guidance," "outlook," "goals," and similar expressions are intended to identify forward-looking statements.

The forward-looking statements should be considered in light of these risks and uncertainties. All forward-looking statements in this release are based solely on information available to us on the date of this release. We undertake no obligation to publicly update or revise any of our guidance, the assessment of the underlying assumptions or other forward-looking statements, whether as a result of changed circumstances, new information, future events or otherwise.

These forward-looking statements could include but are not limited to statements related to our guidance and expectations for future periods and the assumptions underlying any such projections.

Our actual results and other events could differ materially from any forward-looking statements due to numerous factors that involve substantial known and unknown risks and uncertainties. These risks and uncertainties include, among other things:

  • the concentration of profits generated by higher-paying commercial payor plans for which there is continued downward pressure on average realized payment rates, and a reduction in the number of patients under such plans, including as a result of restrictions or prohibitions on the use and/or availability of charitable premium assistance, which may result in the loss of revenues or patients, or our making incorrect assumptions about how our patients will respond to any change in financial assistance from charitable organizations;
  • the extent to which the ongoing implementation of healthcare reform, or changes in or new legislation, regulations or guidance, enforcement thereof or related litigation, and the extent to which such developments result in a reduction in coverage or reimbursement rates for our services, a reduction in the number of patients enrolled in higher-paying commercial plans, or other material impacts to our business;
  • a reduction in government payment rates under the Medicare End Stage Renal Disease program or other government-based programs and the impact of the Medicare Advantage benchmark structure;
  • risks arising from potential and proposed federal and/or state legislation, regulation, ballot, executive action or other initiatives, including such initiatives related to healthcare and/or labor matters;
  • the impact of the political environment and related developments on the current healthcare marketplace and on our business, including with respect to the future of the Affordable Care Act, the exchanges and many other core aspects of the current health care marketplace;
  • changes in pharmaceutical practice patterns, reimbursement and payment policies and processes, or pharmaceutical pricing, including with respect to calcimimetics;
  • legal and compliance risks, such as our continued compliance with complex government regulations;
  • continued increased competition from dialysis providers and others, and other potential marketplace changes;
  • our ability to maintain contracts with physician medical directors, changing affiliation models for physicians, and the emergence of new models of care introduced by the government or private sector that may erode our patient base and reimbursement rates, such as accountable care organizations, independent practice associations and integrated delivery systems;
  • our ability to complete acquisitions, mergers or dispositions that we might announce or be considering, on terms favorable to us or at all, or to integrate and successfully operate any business we may acquire or have acquired, or to successfully expand our operations and services in markets outside the United States, or to businesses outside of dialysis;
  • uncertainties related to potential payments and/or adjustments under certain provisions of the equity purchase agreement for the sale of our DaVita Medical Group business, such as post-closing adjustments and indemnification obligations;
  • noncompliance by us or our business associates with any privacy or security laws or any security breach by us or a third party involving the misappropriation, loss or other unauthorized use or disclosure of confidential information;
  • the variability of our cash flows; the risk that we may not be able to generate sufficient cash in the future to service our indebtedness or to fund our other liquidity needs; and the risk that we may not be able to refinance our indebtedness as it becomes due, on terms favorable to us or at all;
  • factors that may impact our ability to repurchase stock under our stock repurchase program and the timing of any such stock repurchases, as well as our use of a considerable amount of available funds to repurchase stock;
  • risks arising from the use of accounting estimates, judgments and interpretations in our financial statements;
  • impairment of our goodwill, investments or other assets;
  • uncertainties related to our use of the proceeds from the DaVita Medical Group sale transaction and other available funds, including external financing and cash flow from operations, which may be or have been used in ways that we cannot assure will improve our results of operations or enhance the value of our common stock; and
  • uncertainties associated with the other risk factors set forth in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 as updated by our Quarterly Report on Form 10-Q for the quarter ended September 30, 2019, and the other risks and uncertainties discussed in any subsequent reports that we file or furnish with SEC from time to time.

Contact:

Jim Gustafson


Investor Relations


DaVita Inc.


(310) 536-2585

 

DAVITA INC.

CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

(dollars in thousands, except per share data)



Three months ended
September 30,


Nine months ended
September 30,


2019


2018


2019


2018

Dialysis and related lab patient service revenues

$

2,781,169



$

2,670,701



$

8,150,386



$

7,980,178


Provision for uncollectible accounts

(3,977)



(11,977)



(19,689)



(35,838)


Net dialysis and related lab patient service revenues

2,777,192



2,658,724



8,130,697



7,944,340


Other revenues

126,886



188,606



359,198



639,387


Total revenues

2,904,078



2,847,330



8,489,895



8,583,727


Operating expenses and charges:








Patient care costs

1,991,172



2,063,770



5,913,860



6,168,444


General and administrative

298,736



336,299



824,887



866,922


Depreciation and amortization

155,915



146,000



456,685



435,878


Provision for uncollectible accounts



800





(7,300)


Equity investment (income) loss

(3,936)



3,824



(11,158)



(6,126)


Investment and other asset impairments



6,093





17,338


Goodwill impairment charges

83,855





124,892



3,106


Loss (gain) on changes in ownership interest, net



1,506





(32,451)


Total operating expenses and charges

2,525,742



2,558,292



7,309,166



7,445,811


Operating income

378,336



289,038



1,180,729



1,137,916


Debt expense

(88,589)



(125,927)



(351,774)



(359,135)


Debt prepayment, refinancing and redemption charges

(21,242)





(33,402)




Other income, net

5,280



4,007



17,863



10,583


Income from continuing operations before income taxes

273,785



167,118



813,416



789,364


Income tax expense

65,254



52,047



197,938



206,652


Net income from continuing operations

208,531



115,071



615,478



582,712


Net (loss) income from discontinued operations, net of tax

(6,843)



(211,739)



102,854



(147,829)


Net income (loss)

201,688



(96,668)



718,332



434,883


Less: Net income attributable to noncontrolling interests

(58,418)



(40,128)



(152,222)



(125,717)


Net income (loss) attributable to DaVita Inc.

$

143,270



$

(136,796)



$

566,110



$

309,166


Earnings per share attributable to DaVita Inc.:








Basic net income from continuing operations per share

$

1.00



$

0.44



$

2.88



$

2.69


Basic net income (loss) per share

$

0.95



$

(0.82)



$

3.51



$

1.79


Diluted net income from continuing operations per share

$

0.99



$

0.44



$

2.87



$

2.66


Diluted net income (loss) per share

$

0.95



$

(0.82)



$

3.50



$

1.77


Weighted average shares for earnings per share:








Basic

150,675,465



166,770,664



161,147,122



172,403,944


Diluted

151,295,950



167,262,358



161,636,011



174,348,421


Amounts attributable to DaVita Inc.:








Net income from continuing operations

$

150,113



$

73,371



$

464,590



$

463,989


Net (loss) income from discontinued operations

(6,843)



(210,167)



101,520



(154,823)


Net income (loss) attributable to DaVita Inc.

$

143,270



$

(136,796)



$

566,110



$

309,166


 

DAVITA INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)

(dollars in thousands)



Three months ended

September 30,


Nine months ended

September 30,


2019


2018


2019


2018

Net income (loss)

$

201,688



$

(96,668)



$

718,332



$

434,883


Other comprehensive income (loss), net of tax:








Unrealized (losses) gains on interest rate cap agreements:








Unrealized (losses) gains

(1,060)



37



(1,672)



819


Reclassifications of net realized losses into net income (loss)

1,569



1,606



4,782



4,680


Unrealized losses on foreign currency translation:








Foreign currency translation adjustments

(44,502)



(8,827)



(45,790)



(39,475)


Other comprehensive loss

(43,993)



(7,184)



(42,680)



(33,976)


Total comprehensive income (loss)

157,695



(103,852)



675,652



400,907


Less: Comprehensive income attributable to noncontrolling interests

(58,418)



(40,128)



(152,222)



(125,717)


Comprehensive income (loss) attributable to DaVita Inc.

$

99,277



$

(143,980)



$

523,430



$

275,190


 

DAVITA INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(dollars in thousands)



Nine months ended September 30,


2019


2018

Cash flows from operating activities:




Net income

$

718,332



$

434,883


Adjustments to reconcile net income to net cash provided by operating activities:




Depreciation and amortization

456,685



435,878


Impairment charges

124,892



20,444


Debt prepayment, refinancing and redemption charges

33,402




Stock-based compensation expense

47,811



59,605


Deferred income taxes

72,590



200,056


Equity investment loss, net

5,131



8,611


Gain (loss) on sales of business interests, net

23,022



(57,547)


Other non-cash charges, net

24,291



164,856


Changes in operating assets and liabilities, net of effect of acquisitions and divestitures:




Accounts receivable

(182,684)



(74,622)


Inventories

9,519



88,355


Other receivables and other current assets

51,319



(757)


Other long-term assets

2,324



2,142


Accounts payable

(106,662)



(12,800)


Accrued compensation and benefits

(57,930)



40,225


Other current liabilities

140,046



45,624


Income taxes

57,279



21,749


Other long-term liabilities

(27,542)



5,546


Net cash provided by operating activities

1,391,825



1,382,248


Cash flows from investing activities:




Additions of property and equipment

(547,183)



(705,659)


Acquisitions

(77,348)



(113,526)


Proceeds from asset and business sales

3,863,619



135,268


Purchase of other debt and equity investments

(5,160)



(5,791)


Purchase of investments held-to-maturity

(98,322)



(3,728)


Proceeds from sale of other debt and equity investments

5,893



8,783


Proceeds from investments held-to-maturity



32,628


Purchase of equity investments

(8,770)



(12,874)


Distributions received on equity investments

1,296



3,580


Net cash provided by (used in) investing activities

3,134,025



(661,319)


Cash flows from financing activities:




Borrowings

38,519,991



41,674,279


Payments on long-term debt and other financing costs

(40,570,003)



(40,828,443)


Purchase of treasury stock

(1,837,022)



(1,161,511)


Distributions to noncontrolling interests

(157,170)



(139,673)


Stock award exercises and other share issuances, net

7,333



8,803


Contributions from noncontrolling interests

44,095



43,179


Proceeds from sales of additional noncontrolling interest



15


Purchases of noncontrolling interests

(10,988)



(19,988)


Net cash used in financing activities

(4,003,764)



(423,339)


Effect of exchange rate changes on cash, cash equivalents and restricted cash

(4,178)



(5,790)


Net increase in cash, cash equivalents and restricted cash

517,908



291,800


Less: Net (decrease) increase in cash, cash equivalents and restricted cash from discontinued  operations

(423,813)



270,565


Net increase in cash, cash equivalents and restricted cash from continuing operations

941,721



21,235


Cash, cash equivalents and restricted cash of continuing operations at beginning of the year

415,420



518,920


Cash, cash equivalents and restricted cash of continuing operations at end of the period

$

1,357,141



$

540,155


 

DAVITA INC.

CONSOLIDATED BALANCE SHEETS

(unaudited)

(dollars in thousands, except share data)



September 30, 2019


December 31, 2018

ASSETS




Cash and cash equivalents

$

1,253,256



$

323,038


Restricted cash and equivalents

103,885



92,382


Short-term investments

100,713



2,935


Accounts receivable, net

1,901,225



1,858,608


Inventories

98,641



107,381


Other receivables

474,145



469,796


Income tax receivable

16,236



68,614


Prepaid and other current assets

50,617



111,840


Current assets held for sale, net



5,389,565


Total current assets

3,998,718



8,424,159


Property and equipment, net of accumulated depreciation of $3,792,683 and $3,524,098, respectively

3,419,238



3,393,669


Operating lease right-of-use assets

2,781,288




Intangible assets, net of accumulated amortization of $78,437 and $80,566, respectively

117,666



118,846


Equity method and other investments

219,386



224,611


Long-term investments

35,041



35,424


Other long-term assets

114,834



71,583


Goodwill

6,765,659



6,841,960



$

17,451,830



$

19,110,252


LIABILITIES AND EQUITY




Accounts payable

$

332,136



$

463,270


Other liabilities

716,023



595,850


Accrued compensation and benefits

662,826



658,913


Current portion of operating lease liabilities

374,214




Current portion of long-term debt

121,441



1,929,369


Current liabilities held for sale



1,243,759


Total current liabilities

2,206,640



4,891,161


Long-term operating lease liabilities

2,682,125




Long-term debt

8,014,475



8,172,847


Other long-term liabilities

135,087



450,669


Deferred income taxes

604,921



562,536


Total liabilities

13,643,248



14,077,213


Commitments and contingencies




Noncontrolling interests subject to put provisions

1,296,059



1,124,641


Equity:




Preferred stock ($0.001 par value, 5,000,000 shares authorized; none issued)




Common stock ($0.001 par value, 450,000,000 shares authorized; 166,540,590 and 166,387,307 shares issued and 133,888,864 and 166,387,307 shares outstanding, respectively)

167



166


Additional paid-in capital

906,990



995,006


Retained earnings

3,349,180



2,743,194


Treasury stock (32,651,726 and zero shares, respectively)

(1,860,157)




Accumulated other comprehensive loss

(77,604)



(34,924)


Total DaVita Inc. shareholders' equity

2,318,576



3,703,442


Noncontrolling interests not subject to put provisions

193,947



204,956


Total equity

2,512,523



3,908,398



$

17,451,830



$

19,110,252


 

DAVITA INC.

SUPPLEMENTAL FINANCIAL DATA

(unaudited)

(dollars in millions, except for per share and per treatment data)



Three months ended


Nine months
ended


September 30,

2019


June 30,

2019


September 30,

2018


September 30,
2019

1. Consolidated business metrics:








Operating income margin

13.0

%


16.2

%


10.2

%


13.9

%

Adjusted operating income margin excluding certain items(1)(5)

15.9

%


16.2

%


11.0

%


15.4

%

General and administrative expenses as a percent of consolidated revenues(2)

10.3

%


9.7

%


11.8

%


9.7

%

Effective income tax rate on income from continuing operations

23.8

%


23.5

%


31.1

%


24.3

%

Effective income tax rate on income from continuing operations attributable to DaVita Inc.(1)

30.3

%


28.0

%


41.4

%


29.8

%

Effective income tax rate on adjusted income from continuing operations attributable to DaVita Inc.(1)

27.6

%


27.9

%


38.0

%


28.4

%









2. Summary of division financial results:








Revenues








U.S. net dialysis and related lab patient services and other

$

2,691



$

2,637



$

2,577



$

7,876


Other—Ancillary services and strategic initiatives
















U.S. other

118



114



191



341


International net dialysis patient service and other

131



125



113



376



248



239



304



717


Eliminations

(36)



(34)



(34)



(104)


Total consolidated revenues

$

2,904



$

2,843



$

2,847



$

8,490


Operating income (loss)








U.S. dialysis and related lab services

$

501



$

499



$

390



$

1,417


Other—Ancillary services and strategic initiatives
















U.S.

(15)



(16)



(50)



(45)


International

(83)



1



(10)



(125)



(98)



(15)



(60)



(170)


Corporate administrative support expenses

(25)



(22)



(41)



(66)


Total consolidated operating income

$

378



$

462



$

289



$

1,181


 

DAVITA INC.

SUPPLEMENTAL FINANCIAL DATA - continued

(unaudited)

(dollars in millions, except for per share and per treatment data)



Three months ended


Nine months
ended


September 30,

2019


June 30,

2019


September 30,

2018


September 30,
2019

3. Summary of reportable segment financial results:








U.S. Dialysis and Related Lab Services








Revenue:








Net dialysis and related lab patient service revenues

$

2,681



$

2,632



$

2,572



$

7,855


Other revenues

10



6



5



21


Total operating revenues

2,691



2,637



2,577



7,876


Operating expenses:








Patient care costs

1,813



1,785



1,819



5,396


General and administrative

235



216



233



648


Depreciation and amortization

148



145



139



433


Equity investment income

(5)



(7)



(4)



(17)


Total operating expenses

2,191



2,139



2,187



6,459


Segment operating income

$

501



$

499



$

390



$

1,417










4. U.S. Dialysis and Related Lab Services Business metrics:








Volume








Treatments

7,673,191



7,520,587



7,377,277



22,491,237


Number of treatment days

79.0



78.0



78.0



233.6


Average treatments per day

97,129



96,418



94,580



96,281


Per day year over year increase

2.7

%


2.6

%


4.0

%


2.7

%

Normalized non-acquired treatment growth year over year

2.2

%


2.1

%


3.3

%



Operating net revenues








Dialysis and related lab services net revenuenull