In This Article:
-
Adjusted Operating Income: $439 million for Q1 2025.
-
Adjusted Earnings Per Share (EPS): $2 for Q1 2025.
-
Free Cash Flow: Negative $45 million for Q1 2025.
-
US Treatments Per Day: Declined 40 basis points versus Q1 2024.
-
Revenue Per Treatment: Increased by $4 in Q1 2025.
-
Patient Care Cost Per Treatment: Increased by $7 sequentially in Q1 2025.
-
G&A Costs: Declined by $33 million sequentially in Q1 2025.
-
Adjusted International Operating Income: Increased by $29 million versus Q4 2024.
-
Integrated Kidney Care Operating Losses: $29 million in Q1 2025.
-
Share Repurchases: 3.7 million shares repurchased in Q1 2025, with an additional 1.7 million shares repurchased since the end of the quarter.
-
Debt Expense: $135 million in Q1 2025, expected to increase to $145 million per quarter starting Q2 2025.
Release Date: May 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
DaVita Inc (NYSE:DVA) reported adjusted operating income and adjusted earnings per share slightly ahead of expectations, driven by strong expense management and profitability from phosphate binders.
-
The partnership with the YMCA for chronic kidney disease education and prevention has shown promising early results, with 30% of participants found to have previously undiagnosed CKD.
-
Despite a cybersecurity incident, DaVita Inc (NYSE:DVA) maintained uninterrupted dialysis care for patients, demonstrating strong operational resilience.
-
The company repurchased approximately $680 million of stock, indicating a commitment to returning capital to shareholders.
-
International operations showed strong performance, contributing positively to the overall financial results.
Negative Points
-
A cybersecurity incident disrupted operations, requiring remediation efforts and resulting in some regulatory and legal follow-ups.
-
Treatment volume underperformed expectations, partly due to an abnormally high flu season and storms, leading to a 50-basis-point decline in treatments for the year.
-
The company experienced a negative free cash flow of $45 million in the first quarter.
-
The cyber incident and flu season are expected to have lingering impacts on treatment volumes and admissions.
-
Integrated Kidney Care (IKC) reported operating losses of $29 million, with some volatility expected in this segment.
Q & A Highlights
Q: Can you help us understand the impact of the flu and the cyberattack on the full-year treatment growth revision? A: Joel Ackerman, CFO, explained that the flu had the largest impact, contributing to more than half of the 50-basis-point decline in full-year treatment growth. The cyberattack resulted in approximately 500 lost admissions, which, along with a higher mistreatment rate, accounted for the remainder of the decline.