DaVita profit down, still beats analyst expectations

DaVita profit down, still beats analyst expectations
5/3/2011

Dialysis provider DaVita Inc. reported that its profit fell almost 14% in the first quarter due to higher expenses. The results still beat analysts expectations and sent shares up 6%.

The company reported net income of $94.5 million, or $0.96 per share, compared to $109.4 million, or $1.04 per share, for the same quarter last year.

Operating Income: Operating income for the three months ended March 31, 2011 was $236 million as compared to $243 million for the same period of 2010.
Volume: Total treatments for the first quarter of 2011 were 4,602,375, or 59,771 treatments per day, representing a per day increase of 7.2% over the first quarter of 2010. Non-acquired treatment growth in the quarter was 4.0% over the prior year's first quarter. Normalized non-acquired treatment growth in the quarter was 4.2% over the prior year's first quarter.
Effective Tax Rate: The effective tax rate was 35.5% for the quarter ended March 31, 2011. 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 40.0% for the quarter ended March 31, 2011. The company is updating its effective tax rate attributable to DaVita Inc. for 2011 to now be in the range of 39.0% to 40.0%. Our previous expected effective tax rate attributable to DaVita Inc. was in the range of 39.5% to 40.5%.
Center Activity: As of March 31, 2011, DaVita operated or provided administrative services at 1,642 outpatient dialysis centers serving approximately 128,000 patients, of which 1,610 centers are consolidated in its financial statements. During the first quarter of 2011, DaVita acquired and opened a total of 33 centers, sold one center and closed two centers.

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