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DENVER, May 01, 2012 (BUSINESS WIRE) -- DaVita Inc.
/quotes/zigman/268700/quotes/nls/dva DVA
+1.19%
today announced results for the quarter ended March 31, 2012. Net income attributable to DaVita Inc. for the quarter ended March 31, 2012 was $140.1 million, or $1.46 per share. This compares to net income attributable to DaVita Inc. for the quarter ended March 31, 2011 of $94.5 million, or $0.96 per share.
Financial and operating highlights include:
-- Cash Flow: For the rolling twelve months ended March 31, 2012 operating cash flow was $1,182 million and free cash flow was $837 million. For the three months ended March 31, 2012 operating cash flow was $332 million and free cash flow was $250 million.
-- Operating Income: Operating income for the quarter ended March 31, 2012 was $321 million as compared to $235 million for the same period of 2011.
-- Volume: Total U.S. treatments for the first quarter of 2012 were 5,314,275, or 68,132 treatments per day, representing a per day increase of 14.2% over the first quarter of 2011. Non-acquired treatment growth in the quarter was 5.5% over the prior year's first quarter. Our normalized non-acquired treatment growth in the quarter was 5.3% over the prior year's first quarter.
-- Effective Tax Rate: Our effective tax rate was 36.7% for the quarter ended March 31, 2012. This effective tax rate is impacted by the amount of third party owners' income attributable to non-tax paying entities. The effective tax rate attributable to DaVita Inc. was 40.5% for the quarter ended March 31, 2012. We still expect our 2012 effective tax rate attributable to DaVita Inc. to be in the range of 40.0% to 41.0%.
-- Center Activity: As of March 31, 2012, we operated or provided administrative services at 1,841 outpatient dialysis centers located in the United States serving approximately 145,000 patients and 15 outpatient dialysis centers that are located in three countries outside of the United States. During the first quarter of 2012, we acquired 28 centers and opened a total of 13 centers located in the United States. We previously provided management and administrative services to nine of the acquired centers. In addition, we also opened a total of four centers outside of the United States.
Outlook
We are raising our operating income guidance for 2012 to now be in the range of $1,230 million to $1,310 million. Our previous operating income guidance for 2012 was in the range of $1,200 million to $1,300 million. We also still expect our operating cash flows for 2012 to be in the range of $950 million to $1,050 million. These projections and the underlying assumptions involve significant risks and uncertainties, including those described below, and actual results may vary significantly from these current projections.
We will be holding a conference call to discuss our results for the first quarter ended March 31, 2012 on May 2, 2012 at 9:30 a.m. Eastern Time. The dial in number is (800) 399-4406. A replay of the conference call will be available on DaVita's official web page,
www.davita.com , for the following 30 days.
This release contains forward-looking statements, within the meaning of the federal securities laws, including statements related to our guidance and expectations for our 2012 operating income, our 2012 operating cash flows and our 2012 effective tax rate attributable to DaVita Inc. Factors that could impact future results include the uncertainties associated with governmental regulations, general economic and other market conditions, competition, accounting estimates, the variability of our cash flows and the risk factors set forth in our SEC filings, including our annual report on Form 10-K for the year ended December 31, 2011 and subsequent quarterly reports to be filed on Form 10-Q. The forward-looking statements should be considered in light of these risks and uncertainties.
These risks and uncertainties include those relating to:
-- the concentration of profits generated from commercial payor plans,
-- continued downward pressure on average realized payment rates from commercial payors, which may result in the loss of revenues or patients,
-- a reduction in the number of patients under higher-paying commercial plans,
-- a reduction in government payment rates under the Medicare End Stage Renal Disease program or other government-based programs,
-- the impact of health care legislation that was enacted in the United States in March 2010,
-- changes in pharmaceutical or anemia management practice patterns, payment policies, or pharmaceutical pricing,
-- our ability to maintain contracts with physician medical directors,
-- legal compliance risks, including our continued compliance with complex government regulations,
-- current or potential investigations by various government entities and related government or private-party proceedings,
-- continued increased competition from large and medium-sized dialysis providers that compete directly with us,
-- our ability to complete any acquisitions, mergers or dispositions that we might be considering or announce, or integrate and successfully operate any business we may acquire, and
-- expansion of our operations and services to markets outside the United States, or to businesses outside of dialysis.
We base our forward-looking statements on information currently available to us at the time of this release, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of changes in underlying factors, new information, future events or otherwise.
This release contains non-GAAP financial measures. For reconciliations of these non-GAAP financial measures to their most comparable measure calculated and presented in accordance with GAAP, see the attached reconciliation schedules. For the reasons stated in the reconciliation schedules, we believe our presentation of non-GAAP financial measures provides useful supplemental information for investors.
DAVITA INC.
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(dollars in thousands, except per share data)
Three months ended March 31,
--------------------------------------------
2012 2011
---------- ----------
Patient service operating revenues $ 1,763,700 $ 1,497,434
Less: Provision for uncollectible accounts related to patient (53,008) (41,071)
service operating revenues
---------- ---- ---------- ----
Net patient service operating revenues 1,710,692 1,456,363
Other revenues 155,943 105,950
---------- ----------
Total net operating revenues 1,866,635 1,562,313
---------- ----------
Operating expenses and charges:
Patient care costs 1,263,159 1,114,086
General and administrative 207,389 151,602
Depreciation and amortization 75,975 61,838
Provision for uncollectible accounts 2,024 972
Equity investment income (2,632) (1,519)
---------- ---- ---------- ----
Total operating expenses and charges 1,545,915 1,326,979
---------- ----------
Operating income 320,720 235,334
Debt expense (61,381) (58,595)
Other income 1,039 841
---------- ----------
Income from continuing operations before income taxes 260,378 177,580
Income tax expense 95,495 62,959
---------- ----------
Income from continuing operations 164,883 114,621
Discontinued operations:
Income from operations of discontinued operations, net of tax a"EUR 131
--------------------- ----------
Net income 164,883 114,752
Less: Net income attributable to noncontrolling (24,763) (20,250)
interests
---------- ---- ---------- ----
Net income attributable to DaVita Inc. $ 140,120 $ 94,502
==== ========== ==== ==========
Earnings per share:
Basic income from continuing operations per share attributable to $ 1.49 $ 0.98
DaVita Inc.
==== ========== ==== ==== ========== ====
Basic net income per share attributable to DaVita Inc. $ 1.49 $ 0.98
==== ========== ==== ==========
Diluted income from continuing operations per share attributable to $ 1.46 $ 0.96
DaVita Inc.
==== ========== ==== ==== ========== ====
Diluted net income per share attributable to DaVita Inc. $ 1.46 $ 0.96
==== ========== ==== ==========
Weighted average shares for earnings per share:
Basic 93,769,092 96,263,802
========== ==========
Diluted 95,729,105 98,378,371
========== ==========
Amounts attributable to DaVita Inc.:
Income from continuing operations $ 140,120 $ 94,371
Discontinued operations a"EUR 131
--------------------- ----------
Net income $ 140,120 $ 94,502
==== ========== ==== ==========
DAVITA INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(unaudited)
(dollars in thousands, except per share data)
Three months ended March 31,
--------------------------------------
2012 2011
------- -------
Net income $ 164,883 $ 114,752
---- ------- ---- -------
Other comprehensive income (loss), net of tax:
Unrealized losses on interest rate swap and cap agreements:
Unrealized losses on interest rate swap and cap agreements (2,261) (4,134)
Less: Reclassifications of net swap and cap agreements realized 2,520 1,743
losses into net income
Unrealized gains on investments:
Unrealized gains on investments 1,146 268
Less: Reclassification of net investment realized gains into net (75) (57)
income
Foreign currency translation adjustments (619) a"EUR
------- ---- ------------------
Other comprehensive income (loss) 711 (2,180)
------- ------- ----
Total comprehensive income 165,594 112,572
Less: Comprehensive income attributable to the noncontrolling (24,763) (20,250)
interest
------- ---- ------- ----
Comprehensive income attributable to DaVita Inc. 140,831 $ 92,322
======= ==== =======
DAVITA INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(dollars in thousands)
Three months ended
March 31,
---------------------------------
2012 2011
---------- -----------
Cash flows from operating activities:
Net income $ 164,883 $ 114,752
Adjustments to reconcile net income to cash provided by operating
activities:
Depreciation and amortization 75,975 62,037
Stock-based compensation expense 12,550 9,716
Tax benefits from stock award exercises 10,890 13,868
Excess tax benefits from stock award exercises (6,101) (7,196)
Deferred income taxes (13,335) 18,221
Equity investment income, net 483 1,420
Loss on disposal of assets and other non-cash charges 7,125 5,506
Changes in operating assets and liabilities, other than from
acquisitions and divestitures:
Accounts receivable (71,706) (20,461)
Inventories 4,851 7,429
Other receivables and other current assets 56,452 24,922
Other long-term assets 3,742 990
Accounts payable (20,624) 26,565
Accrued compensation and benefits 41,623 31,542
Other current liabilities 17,462 9,483
Income taxes 43,072 29,878
Other long-term liabilities 4,532 1,111
---------- -----------
Net cash provided by operating activities 331,874 329,783
---------- -----------
Cash flows from investing activities:
Additions of property and equipment, net (112,459) (67,530)
Acquisitions (132,699) (81,523)
Proceeds from asset sales 825 2,812
Purchase of investments available for sale (489) (298)
Purchase of investments held-to-maturity (3,212) (15,161)
Proceeds from sale of investments available for sale 6,791 1,149
Proceeds from maturities of investments held-to-maturity 7,551 15,163
Distributions received on equity investments 2 --
---------- -----------
Net cash used in investing activities (233,690) (145,388)
---------- --- ----------- ---
Cash flows from financing activities:
Borrowings 8,634,603 10,983,125
Payments on long-term debt (8,658,001) (11,000,635)
Interest rate cap premiums and other deferred financing costs 3 (13,399)
Distributions to noncontrolling interests (26,405) (22,187)
Stock award exercises and other share issuances, net 1,663 3,410
Excess tax benefits from stock award exercises 6,101 7,196
Contributions from noncontrolling interests 3,651 3,959
Proceeds from sales of additional noncontrolling interests 100 785
Purchases from noncontrolling interests (4,372) (756)
---------- --- ----------- ---
Net cash used in financing activities (42,657) (38,502)
Effect of exchange rate changes on cash and cash equivalents 11 --
---------- -----------
Net increase in cash and cash equivalents 55,538 145,893
Cash and cash equivalents at beginning of period 393,752 860,117
---------- -----------
Cash and cash equivalents at end of period $ 449,290 $ 1,006,010
=== ========== === ===========
DAVITA INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(dollars in thousands, except per share data)
March 31, December 31,
2012 2011
------------------ ------------------
ASSETS
Cash and cash equivalents $ 449,290 $ 393,752
Short-term investments 8,616 17,399
Accounts receivable, less allowance of $289,238 and $250,343 1,266,869 1,195,163
Inventories 72,285 75,731
Other receivables 216,493 269,832
Other current assets 47,492 49,349
Deferred income taxes 313,355 280,382
---------- ----------
Total current assets 2,374,400 2,281,608
Property and equipment, net 1,490,572 1,432,651
Amortizable intangibles, net 160,617 159,491
Equity investments 26,956 27,325
Long-term investments 9,897 9,890
Other long-term assets 30,065 34,231
Goodwill 5,064,577 4,946,976
---------- ----------
$ 9,157,084 $ 8,892,172
==== ========== ==== ==========
LIABILITIES AND EQUITY
Accounts payable $ 269,029 $ 289,653
Other liabilities 347,096 325,734
Accrued compensation and benefits 455,825 412,972
Current portion of long-term debt 89,646 87,345
Income tax payable 80,519 37,412
---------- ----------
Total current liabilities 1,242,115 1,153,116
Long-term debt 4,401,865 4,417,624
Other long-term liabilities 139,656 132,006
Alliance and product supply agreement, net 18,655 19,987
Deferred income taxes 448,372 423,098
---------- ----------
Total liabilities 6,250,663 6,145,831
Commitments and contingencies
Noncontrolling interests subject to put provisions 504,491 478,216
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; 135 135
134,862,283 shares issued; 93,983,930 and 93,641,363 shares
outstanding)
Additional paid-in capital 575,364 596,300
Retained earnings 3,335,938 3,195,818
Treasury stock, at cost (40,878,353 and 41,220,920 shares) (1,618,134) (1,631,694)
Accumulated other comprehensive loss (18,773) (19,484)
---------- ---- ---------- ----
Total DaVita Inc. shareholders' equity 2,274,530 2,141,075
Noncontrolling interests not subject to put provisions 127,400 127,050
---------- ----------
Total equity 2,401,930 2,268,125
---------- ----------
$ 9,157,084 $ 8,892,172
==== ========== ==== ==========
DAVITA INC.
SUPPLEMENTAL FINANCIAL DATA
(unaudited)
(dollars in millions, except for per share and per treatment
data)
Three months ended
------------------------------------------------
March 31, December 31, March 31,
2012 2011 2011
----------- ------------- -----------
1. Consolidated Financial Results:
Consolidated operating revenues $ 1,920 $ 1,862 $ 1,603
Consolidated net operating revenues $ 1,867 $ 1,810 $ 1,562
Operating income $ 320.7 $ 330.1 $ 235.3
Operating income margin 16.7 % 17.7 % $ 14.7 %
Income from continuing operations attributable to DaVita Inc. $ 140.1 $ 149.4 $ 94.4
Net income attributable to DaVita Inc. $ 140.1 $ 148.1 $ 94.5
Diluted income from continuing operations per share attributable to $ 1.46 $ 1.58 $ 0.96
DaVita Inc.
Diluted net income per share attributable to DaVita Inc. $ 1.46 $ 1.56 $ 0.96
2. Consolidated Business Metrics:
Expenses
Patient care costs as a percent of consolidated operating revenues(1) 65.8 % 65.2 % 69.5 %
General and administrative expenses as a percent of consolidated 10.8 % 10.4 % 9.5 %
operating revenues(1)
Total provision for uncollectible accounts as a percent of 2.9 % 2.9 % 2.6 %
consolidated operating revenues
Consolidated effective tax rate attributable to DaVita Inc.(2) 40.5 % 38.0 % 40.0 %
3. Segment Financial Results: (dollar amounts rounded to
nearest million)
Operating revenues
Dialysis and related lab services patient service operating revenues $ 1,767 $ 1,717 $ 1,500
Less: Provision for uncollectible accounts related to patient (53) (52) (41)
service operating revenues
----- --- ----- ---- ----- ---
Dialysis and related lab services net patient service operating $ 1,714 $ 1,665 $ 1,459
revenues
Other revenues 3 3 2
----- ----- -----
Total net dialysis and related lab services operating revenues 1,717 1,668 1,461
Other - Ancillary services and strategic initiatives 155 147 106
Other - Ancillary services and strategic initiatives net patient 1 1 a"EUR
service operating revenues
----- ----- -----------
Total net segment operating revenues 1,873 1,816 1,567
Elimination of intersegment revenues (6) (6) (5)
----- --- ----- ---- ----- ---
Total net consolidated operating revenues $ 1,867 $ 1,810 $ 1,562
=== ===== ==== ===== === =====
Operating Income
Dialysis and related lab services operating income $ 348 $ 353 $ 252
Other - Ancillary services and strategic initiatives, including (17) (13) (9)
international dialysis operations operating losses
----- --- ----- ---- ----- ---
Total segment operating income $ 331 $ 340 $ 244
Reconciling items:
Stock-based compensation (13) (12) (10)
Equity investment income 3 2 2
----- ----- -----
Consolidated operating income $ 321 $ 330 $ 235
=== ===== ==== ===== === =====
DAVITA INC.
SUPPLEMENTAL FINANCIAL DATA--continued
(unaudited)
(dollars in millions, except for per share and per treatment
data)
Three months ended
------------------------------------------------------------
March 31, December 31, March 31,
2012 2011 2011
--------------- ----------------- ---------------
4. Segment Business Metrics:
Dialysis and related lab services
Volume
Treatments 5,314,275 5,227,167 4,594,550
Number of treatment days 78.0 79.0 77.0
Treatments per day 68,132 66,167 59,669
Per day year over year increase 14.2 % 12.4 % 7.2 %
Non-acquired growth year over year 5.5 % 4.4 % 4.0 %
Operating revenues before provision for uncollectible accounts
Dialysis and related lab services revenue per treatment $ 332.43 $ 328.54 $ 326.40
Per treatment increase (decrease) from previous quarter 1.2 % (1.6 %) (1.4 %)
Per treatment increase (decrease) from previous year 1.8 % (0.8 %) (5.0 %)
Percent of consolidated revenues 92.0 % 92.2 % 93.6 %
Expenses
Patient care costs
Percent of total segment operating revenues 63.7 % 63.4 % 68.3 %
Per treatment $ 212.12 $ 208.66 $ 223.28
Per treatment increase (decrease) from previous quarter 1.7 % (3.2 %) (0.7 %)
Per treatment decrease from previous year (5.0 %) (7.2 %) (5.8 %)
General and administrative expenses
Percent of total segment operating revenues 9.5 % 8.9 % 8.2 %
Per treatment $ 31.51 $ 29.45 $ 26.72
Per treatment increase (decrease) from previous quarter 7.0 % 0.6 % (3.5 %)
Per treatment increase from previous year 17.9 % 6.3 % 2.4 %
5. Cash Flow:
Operating cash flow $ 331.9 $ 150.7 $ 329.8
Operating cash flow, last twelve months $ 1,182.1 $ 1,180.0 $ 907.6
Free cash flow(2) $ 249.9 $ 32.1 $ 267.7
Free cash flow, last twelve months(2) $ 837.2 $ 855.0 $ 645.3
Capital expenditures:
Routine maintenance/IT/other $ 55.6 $ 85.3 $ 39.9
Development and relocations $ 56.8 $ 63.1 $ 27.6
Acquisition expenditures $ 132.7 $ 150.3 $ 81.5
6. Accounts Receivable:
Net receivables $ 1,267 $ 1,195 $ 1,069
DSO 63 61 62
DAVITA INC.
SUPPLEMENTAL FINANCIAL DATA--continued
(unaudited)
(dollars in millions, except for per share and per treatment
data)
Three months ended
--------------------------------------------------
March 31, December 31, March 31,
2012 2011 2011
--------- ------------ ---------
7. Debt and Capital Structure:
Total debt(3) $ 4,499 $ 4,513 $ 4,301
Net debt, net of cash(3) $ 4,050 $ 4,119 $ 3,295
Leverage ratio (see Note 1 on page 10) 2.55x 2.72x 2.58x
Overall weighted average effective interest rate during the quarter 5.27 % 5.27 % 5.20 %
Overall weighted average effective interest rate at end of the 5.28 % 5.27 % 5.34 %
quarter
Weighted average effective interest rate on the Senior Secured 4.63 % 4.61 % 4.67 %
Credit Facilities at end of the quarter
Effectively fixed interest rates as a percentage of our total debt(4) 100 % 100 % 100 %
Share repurchases $ - $ - $ 13.6
8. Clinical: (quarterly averages)
Dialysis adequacy -% of patients with Kt/V > 1.2 at the end of the 97 % 97 % 97 %
quarter
Patients with arteriovenous fistulas placed 69 % 69 % 68 %
_________________
(1) Consolidated percentages of revenues are comprised of the dialysis
and related lab services business, other ancillary services and
strategic initiatives, as well as stock-based compensation expenses.
(2) These are non-GAAP financial measures. For a reconciliation of these
non-GAAP financial measures to their most comparable measure
calculated and presented in accordance with GAAP, see attached
reconciliation schedules.
(3) The quarters ended March 31, 2012, December 31, 2011 and March 31,
2011, exclude $7.4 million, $7.8 million and $8.0 million,
respectively, of debt discounts associated with our Term Loan B and
our Term Loan A-2 that are not actually outstanding debt principal.
(4) The Term Loan A-2 and Term Loan B are subject to LIBOR floors of
1.00% and 1.50%, respectively. Because LIBOR, for all periods
presented above, was lower than either of these floors, the interest
rates on the Term Loan A-2 and the Term Loan B are treated as
"fixed" for purposes of the table above. We have included both of
these Term Loans in the fixed rate totals in the table above until
such time as the LIBOR-based component of our interest rate exceeds
1.00% on the Term Loan A-2 and 1.50% on the Term Loan B. At such
time, we will then be subject to LIBOR-based interest rate
volatility on the LIBOR variable component of our interest rate on
all of the Term Loan A-2, as well as for the Term Loan B, but
limited to a maximum rate of 4.00% on $1.25 billion of outstanding
principal debt on the Term Loan B. The remaining $478 million
outstanding principal balance of the Term Loan B is subject to
LIBOR-based interest rate volatility above a floor of 1.50%.
DAVITA INC. SUPPLEMENTAL FINANCIAL DATA--continued (unaudited) (dollars in thousands)
Note 1: Calculation of the Leverage Ratio
Under the Company's Senior Secured Credit Facilities (Credit Agreement), the leverage ratio is defined as all funded debt plus the face amount of all letters of credit issued, minus cash and cash equivalents, divided by "Consolidated EBITDA". The leverage ratio determines the interest rate margin payable by the Company for its Term Loan A and revolving line of credit under the Credit Agreement by establishing the margin over the base interest rate (LIBOR) that is applicable. The following leverage ratio was calculated using "Consolidated EBITDA" as defined in the Credit Agreement. The calculation below is based on the last twelve months of "Consolidated EBITDA", pro forma for routine acquisitions that occurred during the period. The Company's management believes the presentation of "Consolidated EBITDA" is useful to investors to enhance their understanding of the Company's leverage ratio under its Credit Agreement.
Rolling twelve months ended March 31, 2012
--------------------------------------------
Net income attributable to DaVita Inc. $ 523,619
Income taxes 348,174
Interest expense 226,855
Depreciation and amortization 281,253
Noncontrolling interests and equity investment income, net 99,324
Other items 127,847
---------------------
"Consolidated EBITDA" $ 1,607,072
===================== =====================
March 31, 2012
--------------------------------------------
Total debt, excluding debt discount of $7.4 million $ 4,498,938
Letters of credit issued 52,297
---------------------
4,551,235
Less: cash and cash equivalents (449,290)
--------------------- -
Consolidated net debt $ 4,101,945
===================== =====================
Last twelve months "Consolidated EBITDA" $ 1,607,072
===================== =====================
Leverage ratio 2.55x
============================================
In accordance with the Credit Agreement, the Company's leverage ratio cannot exceed 4.25 to 1.0 as of March 31, 2012. At that date the Company's leverage ratio did not exceed 4.25 to 1.0.
DAVITA INC. RECONCILIATIONS FOR NON-GAAP MEASURES (unaudited) (dollars in thousands)
1. Effective Income Tax Rates
We believe that reporting the effective income tax rate attributable to DaVita Inc. enhances an investor's understanding of DaVita's effective income tax rate for the periods presented because it excludes noncontrolling owners' income that primarily relates to non-tax paying entities and accordingly is more comparable to prior periods presentations regarding DaVita's effective income tax rate and is more meaningful to an investor to fully understand the related income tax effects on DaVita Inc.'s operating results. This is not a measure under GAAP and should not be considered as an alternative to the effective income tax rate calculated in accordance with GAAP.
Effective income tax rate as compared to the effective income tax rate attributable to DaVita Inc. is as follows:
Three months ended
------------------------------------------------------
March 31, December 31, March 31,
2012 2011 2011
------------- --------------- -------------
Income from continuing operations before income taxes $ 260,378 $ 269,149 $ 177,580
=== ======= ==== ======= === =======
Income tax expense $ 95,495 $ 91,710 $ 62,959
=== ======= ==== ======= === =======
Effective income tax rate 36.7 % 34.1 % 35.5 %
======= === ======= ==== ======= ===
Three months ended
------------------------------------------------------
March 31, December 31, March 31,
2012 2011 2011
------------- --------------- -------------
Income from continuing operations before income taxes $ 260,378 $ 269,149 $ 177,580
Less: Noncontrolling owners' income primarily attributable to (24,883) (28,128) (20,297)
non-tax paying entities
------- --- ------- ---- ------- ---
Income before income taxes attributable to DaVita Inc. $ 235,495 $ 241,021 $ 157,283
=== ======= ==== ======= === =======
Income tax expense 95,495 91,710 $ 62,959
Less income tax attributable to noncontrolling interests (120) (119) (47)
------- --- ------- ---- ------- ---
Income tax attributable to DaVita Inc. $ 95,375 $ 91,591 $ 62,912
=== ======= ==== ======= === =======
Effective income tax rate attributable to DaVita Inc. 40.5 % 38.0 % 40.0 %
======= === ======= ==== ======= ===
DAVITA INC. RECONCILIATIONS FOR NON-GAAP MEASURES (unaudited) (dollars in thousands)
2. Free cash flow
Free cash flow represents net cash provided by operating activities less income distributions to noncontrolling interests and capital expenditures for routine maintenance and information technology. We believe free cash flow is a useful adjunct to cash flow from operating activities and other measurements under GAAP, since free cash flow is a meaningful measure of our ability to fund acquisition and development activities and meet our debt service requirements. In addition, free cash flow excluding income distributions to noncontrolling interests provides an investor with an understanding of free cash flows that are attributable to DaVita Inc. Free cash flow is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing or financing activities, as an indicator of cash flows or as a measure of liquidity.
Three months ended
------------------------------------------------------
March 31, December 31, March 31,
2012 2011 2011
------------- --------------- -------------
Cash provided by operating activities $ 331,874 $ 150,659 $ 329,783
Less: Income distributions to noncontrolling interests (26,405) (33,245) (22,187)
------- --- ------- ---- ------- ---
Cash provided by operating activities attributable to DaVita Inc. 305,469 117,414 307,596
Less: Expenditures for routine maintenance and information technology (55,609) (85,304) (39,928)
------- --- ------- ---- ------- ---
Free cash flow $ 249,860 $ 32,110 $ 267,668
=== ======= ==== ======= === =======
Rolling 12-Month Period
-----------------------------------------------------------
March 31, December 31, March 31,
2012 2011 2011
--------------- ----------------- --------------
Cash provided by operating activities $ 1,182,137 $ 1,180,046 $ 907,619
Less: Income distributions to noncontrolling interests (104,871) (100,653) (87,120)
--------- --- --------- ---- -------- ---
Cash provided by operating activities attributable to DaVita Inc. 1,077,266 1,079,393 820,499
Less: Expenditures for routine maintenance and information technology (240,047) (224,366) (175,181)
--------- --- --------- ---- -------- ---
Free cash flow $ 837,219 $ 855,027 $ 645,318
=== ========= ==== ========= === ========
SOURCE: DaVita Inc.
DaVita Inc.
Jim Gustafson
Investor Relations
(310) 536-2585
Copyright Business Wire 2012
/quotes/zigman/268700/quotes/nls/dva
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