Improving Health, Health Care and Quality of Life
Financial and operating highlights include: -- Continental U.S. dialysis revenue per treatment (excluding lab, management fees and other revenue) in the first quarter was $274.22 as compared to $266.51 in the fourth quarter, or a 2.9% sequential increase. -- Continental U.S. DSO at quarter end was 71 days. This represents a 2-day improvement from the end of the fourth quarter of 2000. -- The continental U.S. EBITDA margin for the first quarter was 22.5% as compared to 21.5% for the fourth quarter of 2000. -- Operating cash flow for the three months ended March 31, 2001 was $58 million, in line with our 2001 forecast of $200-$260 million. -- Total continental U.S. treatments for the first quarter were 1,366,468. Both non-acquired and same center treatment growth were 4.0%. -- At March 31, 2001 we operated 486 outpatient centers in the continental U.S. serving 41,000 patients. During the first quarter we closed 1 under-performing center and acquired 13 previously managed centers. Included in our continental patient and center count are 3,300 patients in 34 centers under management. Other developments: -- In April the Company completed the sale of $225 million of its 9 1/4% Senior Subordinated Notes. The net proceeds of this offering were used to pay down amounts outstanding under the Company's senior credit facilities. Additionally on May 4, the Company completed a refinancing of its existing senior credit facilities. The new credit facilities include $250 million of term loan borrowings and a revolving credit facility with $150 million of unused availability.
DaVita will hold a conference call to discuss its first quarter 2001 results and revised financial outlook on Monday, May 7, 2001 at noon Pacific time, 3 PM 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, http://www.davita.com/, for the following 90 days.
This release contains forward-looking statements. Factors which could impact future results include the uncertainties associated with governmental regulation, general economic and other market conditions, and the risk factors set forth in the Company's SEC filings, including its Form 10-K for the year ended December 31, 2000. These risks include those relating to (1) possible reductions in private and government reimbursement rates, (2) the concentration of profits generated from private indemnity patients, (3) the ongoing payment suspension and review of the Company's Florida laboratory subsidiary by its Medicare carrier and the Department of Justice, (4) the ongoing review by the Civil Division of the US Attorney's Office for the Eastern District of Pennsylvania and (5) the Company's ability to maintain contracts with physician medical directors. The forward-looking statements should be considered in light of these risks and uncertainties.
DAVITA INC. CONSOLIDATED BALANCE SHEETS (dollars in thousands) March 31, December 31, 2001 2000 ASSETS Cash and cash equivalents $17,443 $31,207 Accounts receivable, less allowance of $60,790 and $61,619 299,424 290,412 Inventories 45,566 20,641 Other current assets 14,259 10,293 Income taxes receivable 2,830 Deferred income taxes 42,265 42,492 Total current assets 418,957 397,875 Property and equipment, net 242,797 236,659 Intangible assets, net 947,946 921,623 Investments in third-party dialysis businesses 12,203 34,194 Other long-term assets 2,205 1,979 Deferred taxes 1,629 4,302 $1,625,737 $1,596,632 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable $77,345 $74,882 Other liabilities 106,781 102,563 Accrued compensation and benefits 72,484 70,406 Current portion of long-term debt 7,580 1,676 Income taxes payable 15,503 Total current liabilities 279,693 249,527 Long-term debt 932,025 974,006 Other long-term liabilities 4,755 4,855 Minority interests 21,045 18,876 Shareholders' equity Preferred stock ($0.001 par value; 5,000,000 shares authorized; none issued or Outstanding) Common stock ($0.001 par value, 195,000,000 shares authorized; 82,943,817 and 82,135,634 shares issued and outstanding) 83 82 Additional paid-in capital 438,509 430,676 Notes receivable from shareholders (83) Accumulated deficit (50,373) (81,307) Total shareholders' equity 388,219 349,368 $1,625,737 $1,596,632 DAVITA INC. CONSOLIDATED STATEMENTS OF INCOME (dollars in thousands) Three months ended March 31, 2001 Net operating revenues $386,217 Operating expenses: Dialysis centers and labs 260,974 General and administrative 31,813 Depreciation and amortization 26,148 Provision for uncollectible accounts (8,185) Total operating expenses 310,750 Operating income 75,467 Other income 1,348 Debt expense 19,724 Minority interests in income of consolidated subsidiaries (2,457) Income before income taxes 54,634 Income tax expense 23,700 Net income 30,934 Earnings per share-basic $0.37 Earnings per share-assuming dilution $0.35 Diluted weighted average and incremental shares 102,200,931 Supplemental information: Continental treatments 1,366,468 Continental EBITDA, excluding recoveries $86 million Operating cash flow $58 million Diluted earnings per share, excluding accounts receivable recoveries $0.24
SOURCE: DaVita Inc.
Contact: LeAnne Zumwalt, Investor Relations of DaVita Inc.,