DaVita Fourth Quarter Results Top Estimates, Boosts 2014 Outlook

(RTTNews) - Kidney dialysis centers operator DaVita HealthCare Partners, Inc. (DVA)reported Tuesday a profit for the fourth quarter that grew from last year, reflecting improved operating margins and revenue growth. Both adjusted earnings per shared and quarterly revenues topped analysts' expectations. The company also raised its operating income guidance for the full-year 2014.

The Denver, Colorado-based company reported net income of $212.28 million or $0.99 per share for the fourth quarter, higher than $155.84 million or $0.75 per share in the prior-year quarter.

Excluding items, adjusted earnings from continuing operations for the quarter was $212.28 million or $0.99 per share, compared to $173.77 million or $0.84 per share in the year-ago quarter.

On average, 16 analysts polled by Thomson Reuters expected the company to report earnings of $0.98 per share for the quarter. Analysts' estimates typically exclude special items.

Total net revenues for the quarter grew to $3.06 billion from $2.48 billion in the same quarter last year, and topped twelve Wall Street analysts' consensus estimate of $3.02 billion.

Net patient service revenues grew to $2.08 million from $1.86 million from last year.

Operating margin for the quarter improved 220 basis points to 15.8 percent from last year's 12.6 percent. Total operating expenses and charges for the quarter increased to $2.58 billion from $2.09 billion in the year-ago quarter.

Total U.S. dialysis treatments for the quarter were 6.11 million or 76,711 treatments per day, representing a per day increase of 6.3 percent over last year. Non-acquired treatment growth in the quarter was 4.7 percent, and normalized non-acquired treatment growth was 5.2 percent.

Including growth contributed from acquisitions, number of member months for which HCP provided capitated care during the quarter grew 8.1 percent to about 2.3 million from last year.

During the fourth quarter, the company acquired five dialysis centers and opened a total of 28 dialysis centers in the U.S. as well as acquired eight additional dialysis centers outside of the U.S.

DaVita operated or provided administrative services at 2,147 outpatient dialysis centers, with 73 of them located in ten countries outside of the U.S. at the end of the fourth quarter, serving about 168,000 patients.

For fiscal 2013, the company reported net income of $633.45 million or $2.95 per share, higher than $536.02 million or $2.74 per share in the prior year. Excluding items, adjusted earnings from continuing operations for the year was $817.57 million or $3.81 per share, compared to $612.64 million or $3.13 per share in the year ago. Total net revenues for the quarter grew to $11.76 billion from $8.19 billion in the previous year.

Street was looking for full-year 2013 earnings of $3.81 per share on revenues of $11.73 billion.

Looking ahead to fiscal 2014, the company raise its consolidated operating income guidance to a range of $1.725 billion to $1.860 billion from the prior forecast between $1.675 billion and $1.850 billion.

DVA closed Tuesday's regular trading session at $64.33, up $0.49 or 0.77% on a volume of 3.99 million shares. The stock surged a further $5.17 or 8.04% in after-hours trading.