Try our mobile app
DENVER, Feb. 13, 2019 /PRNewswire/ -- DaVita Inc. (NYSE:DVA) today announced results for the quarter and year ended December 31, 2018.
Fourth quarter 2018 financial highlights:
| Three months ended December 31, | Year ended December 31, | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| Net income (loss) attributable to DaVita Inc.: | (dollars in millions, except per share data) | |||||||||||||||
| Net income from continuing operations | $ | 160 | $ | 156 | $ | 624 | $ | 901 | ||||||||
| Per share | $ | 0.96 | $ | 0.85 | $ | 3.62 | $ | 4.71 | ||||||||
| Adjusted net income from continuing operations(1) | $ | 149 | $ | 170 | $ | 616 | $ | 635 | ||||||||
| Per share adjusted(1) | $ | 0.90 | $ | 0.92 | $ | 3.57 | $ | 3.32 | ||||||||
| Net (loss) income | $ | (150) | $ | 303 | $ | 159 | $ | 664 | ||||||||
| Per share | $ | (0.90) | $ | 1.64 | $ | 0.92 | $ | 3.47 | ||||||||
| Three months ended December 31, | Year ended December 31, | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| Operating income: | (dollars in millions) | |||||||||||||||
| Operating income | $ | 388 | $ | 150 | $ | 1,526 | $ | 1,813 | ||||||||
| Adjusted operating income(1) | $ | 370 | $ | 430 | $ | 1,513 | $ | 1,616 |
| ____________________ | |
|---|---|
| (1) | For the definitions of non-GAAP financial measures such as adjusted net income from continuing operations attributable to DaVita Inc., see the note titled "Note on Non-GAAP Financial Measures" below. |
Current items impacting operating income:
Advocacy costs: During the three and twelve months ended December 31, 2018, we incurred advocacy costs of $30 million and $93 million, respectively, in countering union policy efforts, including ballot initiatives. These costs are included in the U.S. dialysis and related lab services segment in general and administrative expenses.
Non-GAAP adjustments to operating income:
Gain on changes in ownership interest: During the fourth quarter of 2018, we acquired a controlling interest in a previously nonconsolidated dialysis partnership. As a result of this transaction, we consolidated this partnership and recognized a non-cash gain of $28 million on our previously held ownership interest in this partnership.
Equity loss on impairments and changes in business ownership: During the fourth quarter of 2018, we recognized a reduction in equity earnings of $2 million as a result of impairment charges recognized by our Asia Pacific joint venture (APAC JV). In addition, we recognized an equity investment loss of $9 million due to the APAC JV's sale of our India business.
| Three months ended | Year ended | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31,2018 | December 31,2017 | December 31,2018 | December 31,2017 | ||||||||||||
| (dollars in millions) | |||||||||||||||
| Operating charges: | |||||||||||||||
| Gain on changes in ownership interests, net | $ | (28) | $ | — | $ | (61) | $ | (6) | |||||||
| Impairment charges | — | 280 | 20 | 330 | |||||||||||
| Gain on settlement, net | — | — | — | (527) | |||||||||||
| Equity investment loss (income): | |||||||||||||||
| Loss due to business sale in APAC JV | 9 | — | 9 | — | |||||||||||
| Loss due to impairments in APAC JV | 2 | — | 8 | 6 | |||||||||||
| Income related to gain on settlement | — | — | — | (3) | |||||||||||
| Loss related to restructuring charges | — | — | — | 1 | |||||||||||
| General and administrative: | |||||||||||||||
| Restructuring charges | — | — | 11 | 2 | |||||||||||
| Total non-GAAP adjustments | $ | (18) | $ | 280 | $ | (13) | $ | (197) |
| Certain columns or rows may not sum or recalculate due to the use of rounded numbers. |
|---|
Valuation adjustment on assets held for sale: On December 11, 2018, we entered into an amendment to the agreement to sell our DMG business that, among other things, reduced the purchase price from $4.9 billion to $4.34 billion. The closing of the transaction remains subject to receipt of required regulatory approval and other customary closing conditions. As a result of entering into this amendment, we recorded an additional charge of approximately $252 million on our DMG business which included a $219 million valuation adjustment, a $42 million goodwill impairment charge and $8 million in related tax benefit on this held-for-sale business.
Financial and operating metrics:
| Certain columns or rows may not sum or recalculate due to the use of rounded numbers. |
|---|
DAVITA INC.
RECONCILIATIONS FOR NON-GAAP MEASURES - continued
(unaudited)
(dollars in thousands)
Note 3: Adjusted operating income
| Certain columns or rows may not sum or recalculate due to the use of rounded numbers. |
|---|
DAVITA INC.
RECONCILIATIONS FOR NON-GAAP MEASURES - continued
(unaudited)
(dollars in thousands)
Note 4: Effective income tax rates and adjusted effective income tax rates
The effective income tax rate on income from continuing operations and on income from continuing operations attributable to DaVita Inc. is computed as follows:
| Certain columns or rows may not sum or recalculate due to the use of rounded numbers. |
|---|
View original content to download multimedia:http://www.prnewswire.com/news-releases/davita-inc-4th-quarter-2018-results-300795354.html
SOURCE DaVita Inc.
