2024 Q1 Form 10-K Financial Statement

#000092706624000013 Filed on February 14, 2024

View on sec.gov

Income Statement

Concept 2024 Q1 2023 Q4 2023
Revenue $3.071B $3.146B $12.14B
YoY Change 6.89% 7.85% 4.57%
Cost Of Revenue $2.079B $2.138B $8.320B
YoY Change 1.01% 2.38% 1.34%
Gross Profit $991.6M $1.007B $3.820B
YoY Change 21.74% 21.63% 12.35%
Gross Profit Margin 32.29% 32.02% 31.47%
Selling, General & Admin $362.5M $401.5M $1.474B
YoY Change 9.31% 5.73% 8.77%
% of Gross Profit 36.56% 39.85% 38.58%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $187.1M $195.3M $736.5M
YoY Change 5.06% 0.62% 2.13%
% of Gross Profit 18.87% 19.38% 19.28%
Operating Expenses $549.6M $596.7M $2.219B
YoY Change 7.82% 4.0% 6.3%
Operating Profit $483.8M $410.6M $1.603B
YoY Change 55.26% 61.39% 19.69%
Interest Expense -$92.74M -$90.83M -$370.7M
YoY Change -1.3% -8.38% 12.16%
% of Operating Profit -19.17% -22.12% -23.13%
Other Income/Expense, Net -$12.64M -$4.652M -$19.18M
YoY Change -436.91% -40.34% 21.64%
Pretax Income $371.8M $289.1M $1.177B
YoY Change 73.23% 95.99% 21.82%
Income Tax $65.81M $58.50M $220.1M
% Of Pretax Income 17.7% 20.24% 18.7%
Net Earnings $239.6M $150.7M $691.5M
YoY Change 107.4% 121.23% 23.4%
Net Earnings / Revenue 7.8% 4.79% 5.7%
Basic Earnings Per Share $2.73 $7.62
Diluted Earnings Per Share $2.65 $1.62 $7.42
COMMON SHARES
Basic Shares Outstanding 87.70M shares 91.30M shares 90.79M shares
Diluted Shares Outstanding 90.55M shares 93.18M shares

Balance Sheet

Concept 2024 Q1 2023 Q4 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $403.5M $439.6M $391.7M
YoY Change -1.98% 20.06% 21.72%
Cash & Equivalents $345.1M $380.1M $380.1M
Short-Term Investments $58.34M $59.50M $11.61M
Other Short-Term Assets $191.1M $187.2M $187.2M
YoY Change 4.07% 7.76% 7.76%
Inventory $145.8M $143.1M $143.1M
Prepaid Expenses
Receivables $2.595B $1.987B $2.222B
Other Receivables $396.4M $422.7M $194.2M
Total Short-Term Assets $3.684B $3.138B $3.138B
YoY Change 21.19% -0.55% -0.55%
LONG-TERM ASSETS
Property, Plant & Equipment $3.026B $3.074B $5.575B
YoY Change -5.91% -5.62% -5.87%
Goodwill $7.230B $7.113B
YoY Change 1.97% 0.51%
Intangibles $201.4M $203.2M
YoY Change 7.86% 11.24%
Long-Term Investments $540.3M $593.7M $593.7M
YoY Change 88.73% 115.56% 115.56%
Other Assets $262.4M $271.3M $271.3M
YoY Change -9.91% -14.05% -14.05%
Total Long-Term Assets $13.75B $13.76B $13.76B
YoY Change 0.43% -0.13% -0.13%
TOTAL ASSETS
Total Short-Term Assets $3.684B $3.138B $3.138B
Total Long-Term Assets $13.75B $13.76B $13.76B
Total Assets $17.43B $16.89B $16.89B
YoY Change 4.2% -0.2% -0.2%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $489.9M $514.5M $514.5M
YoY Change 9.36% 7.24% 7.24%
Accrued Expenses $1.023B $1.147B $1.753B
YoY Change 0.98% 5.42% 2.61%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $127.6M $123.3M $123.3M
YoY Change -47.31% -46.72% -46.72%
Total Short-Term Liabilities $2.583B $2.642B $2.642B
YoY Change 0.7% 0.86% 0.86%
LONG-TERM LIABILITIES
Long-Term Debt $9.001B $8.268B $8.268B
YoY Change 6.93% -4.88% -4.88%
Other Long-Term Liabilities $179.8M $183.1M $2.513B
YoY Change 79.4% 73.97% -3.64%
Total Long-Term Liabilities $179.8M $183.1M $10.78B
YoY Change 79.4% 73.97% -4.59%
TOTAL LIABILITIES
Total Short-Term Liabilities $2.583B $2.642B $2.642B
Total Long-Term Liabilities $179.8M $183.1M $10.78B
Total Liabilities $14.79B $14.15B $15.84B
YoY Change 3.4% -3.76% -2.33%
SHAREHOLDERS EQUITY
Retained Earnings $837.9M $598.3M
YoY Change 188.91% 242.88%
Common Stock $428.3M $509.9M
YoY Change -27.45% -16.0%
Preferred Stock
YoY Change
Treasury Stock (at cost) $240.1M $0.00
YoY Change
Treasury Stock Shares
Shareholders Equity $926.0M $1.056B $1.056B
YoY Change
Total Liabilities & Shareholders Equity $17.43B $16.89B $16.89B
YoY Change 4.2% -0.2% -0.2%

Cashflow Statement

Concept 2024 Q1 2023 Q4 2023
OPERATING ACTIVITIES
Net Income $239.6M $150.7M $691.5M
YoY Change 107.4% 121.23% 23.4%
Depreciation, Depletion And Amortization $187.1M $195.3M $736.5M
YoY Change 5.06% 0.62% 2.13%
Cash From Operating Activities -$134.8M $485.2M $2.059B
YoY Change -129.15% 41.16% 31.6%
INVESTING ACTIVITIES
Capital Expenditures $121.0M $159.0M $568.0M
YoY Change -18.07% -18.07% -5.87%
Acquisitions
YoY Change
Other Investing Activities -$94.19M -$9.322M -$203.8M
YoY Change -402.27% -51.51% 657.17%
Cash From Investing Activities -$215.2M -$168.3M -$771.8M
YoY Change 84.66% -21.09% 22.44%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $272.2M
YoY Change -66.07%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $319.3M -403.2M -$1.170B
YoY Change -215.73% 74.64% 4.4%
NET CHANGE
Cash From Operating Activities -$134.8M 485.2M $2.059B
Cash From Investing Activities -$215.2M -168.3M -$771.8M
Cash From Financing Activities $319.3M -403.2M -$1.170B
Net Change In Cash -$33.85M -86.34M $125.6M
YoY Change -146.75% -14.04% -158.18%
FREE CASH FLOW
Cash From Operating Activities -$134.8M $485.2M $2.059B
Capital Expenditures $121.0M $159.0M $568.0M
Free Cash Flow -$255.9M $326.2M $1.491B
YoY Change -181.26% 117.95% 55.13%

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CY2023 us-gaap Use Of Estimates
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<div style="margin-top:9pt;text-indent:13.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Use of estimates</span></div><div style="margin-top:9pt;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of financial statements in conformity with U.S. GAAP requires the use of estimates and assumptions that affect the reported amounts of revenues, expenses, assets, liabilities, contingencies and noncontrolling interests subject to put provisions. Although actual results in subsequent periods will differ from these estimates, such estimates are developed based on the best information available to management and management’s best judgments at the time. All significant assumptions and estimates underlying the amounts reported in the financial statements and accompanying notes are regularly reviewed and updated when necessary. Changes in estimates are reflected in the financial statements based upon on-going actual experience trends or subsequent settlements and realizations depending on the nature and predictability of the estimates and contingencies.</span></div><div style="margin-top:9pt;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The most significant assumptions and estimates underlying these consolidated financial statements and accompanying notes involve revenue recognition and accounts receivable, impairments of goodwill, accounting for income taxes, certain fair value estimates and loss contingencies. Specific estimating risks and contingencies are further addressed within these notes to the consolidated financial statements.</span></div>
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CY2022 us-gaap Net Income Loss
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CY2021 us-gaap Weighted Average Number Of Shares Issued Basic
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CY2021 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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4718000 shares
CY2023 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
93182000 shares
CY2022 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
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Goodwill
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CY2021 us-gaap Income Loss From Continuing Operations Before Income Taxes Domestic
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Contingencies<div style="margin-top:9pt;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The majority of the Company’s revenues are from government programs and may be subject to adjustment as a result of: (i) examination by government agencies or contractors, for which the resolution of any matters raised may take extended periods of time to finalize; (ii) differing interpretations of government regulations by different Medicare contractors or regulatory authorities; (iii) differing opinions regarding a patient’s medical diagnosis or the medical necessity of services provided; and (iv) retroactive applications or interpretations of governmental requirements. In addition, the Company’s revenues from commercial payors may be subject to adjustment as a result of potential claims for refunds, as a result of government actions or as a result of other claims by commercial payors.</span></div><div style="margin-top:9pt;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company operates in a highly regulated industry and is a party to various lawsuits, demands, claims, </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">qui tam</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> suits, governmental investigations (which frequently arise from </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">qui tam</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> suits) and audits (including, without limitation, investigations or other actions resulting from its obligation to self-report suspected violations of law) and other legal proceedings, including, without limitation, those described below. 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Additionally, in some cases, no estimate of the possible loss or range of loss in excess of amounts accrued, if any, can be made because of the inherently unpredictable nature of legal proceedings and regulatory matters, which also may be impacted by various factors, including, without limitation, that they may involve indeterminate claims for monetary damages or may involve fines, penalties or non-monetary remedies; present novel legal theories or legal uncertainties; involve disputed facts; represent a shift in regulatory policy; are in the early stages of the proceedings; or may result in a change of business practices. Further, there may be various levels of judicial review available to the Company in connection with any such proceeding.</span></div><div style="margin-top:9pt;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The following is a description of certain lawsuits, claims, governmental investigations and audits and other legal proceedings to which the Company is subject.</span></div><div style="margin-top:9pt;text-indent:13.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Certain Governmental Inquiries and Related Proceedings</span></div><div style="margin-top:9pt;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;text-decoration:underline">2017 U.S. Attorney Colorado Investigation</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">: In November 2017, the U.S. Attorney’s Office, District of Colorado informed the Company of an investigation it was conducting into possible federal healthcare offenses involving DaVita Kidney Care, as well as several of the Company’s wholly-owned subsidiaries. In addition to DaVita Kidney Care, the matter currently </span></div><div style="margin-top:9pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">includes an investigation into DaVita Rx, DaVita Laboratory Services, Inc. (DaVita Labs), and RMS Lifeline Inc. (Lifeline). In each of August 2018, May 2019, and July 2021, the Company received a CID pursuant to the FCA from the U.S. Attorney's Office relating to this investigation. In May 2020, the Company sold its interest in Lifeline, but the Company retained certain liabilities of the Lifeline business, including those related to this investigation. The Company is engaged in discussions with the U.S. Attorney's Office and the Civil Division of the United States Department of Justice to resolve this matter. The Company can make no assurance as to the final outcome. The Company has reserved $40 million for this matter, which includes any potential payment of attorneys' fees. </span></div><div style="margin-top:9pt;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;text-decoration:underline">2020 U.S. Attorney New Jersey Investigation</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">: In March 2020, the U.S. Attorney’s Office, District of New Jersey served the Company with a subpoena and a CID relating to an investigation being conducted by that office and the U.S. Attorney’s Office, Eastern District of Pennsylvania. The subpoena and CID request information on several topics, including certain of the Company’s joint venture arrangements with physicians and physician groups, medical director agreements, and compliance with its five-year Corporate Integrity Agreement, the term of which expired October 22, 2019. In November 2022, the Company learned that, on April 1, 2022, the U.S. Attorney’s Office for the District of New Jersey notified the U.S. District Court for the District of New Jersey of its decision not to elect to intervene in the matter of </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">U.S. ex rel. Doe v. DaVita Inc. </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">and filed a Stipulation of Dismissal. On April 13, 2022, the U.S. District Court for the District of New Jersey dismissed the case without prejudice. On October 12, 2022, the U.S. Attorney’s Office for the Eastern District of Pennsylvania notified the U.S. District Court, Eastern District of Pennsylvania, of its decision not to elect to intervene at this time in the matter of </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">U.S. ex rel. Bayne v. DaVita Inc., et al.</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> The court then unsealed an amended complaint, which alleges violations of federal and state False Claims Acts, by order dated October 14, 2022. On November 8, 2023, the private party relator filed a fourth amended complaint. On November 29, 2023, the Company filed a motion to dismiss the fourth amended complaint.</span></div><div style="margin-top:9pt;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;text-decoration:underline">2020 California Department of Insurance Investigation</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">: In April 2020, the California Department of Insurance (CDI) sent the Company an Investigative Subpoena relating to an investigation being conducted by that office. CDI issued a superseding subpoena in September 2020 and an additional subpoena in September 2021. Those subpoenas request information on a number of topics, including but not limited to the Company’s communications with patients about insurance plans and financial assistance from the American Kidney Fund (AKF), analyses of the potential impact of patients’ decisions to change insurance providers, and documents relating to donations or contributions to the AKF. The Company is continuing to cooperate with CDI in this investigation.</span></div><div style="margin-top:9pt;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;text-decoration:underline">2023 District of Columbia Office of Attorney General Investigation</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">: In January 2023, the Office of the Attorney General for the District of Columbia issued a CID to the Company in connection with an antitrust investigation into the AKF. The CID covers the period from January 1, 2016 to the present. The CID requests information on a number of topics, including but not limited to the Company’s communications with AKF, documents relating to donations to the AKF, and communications with patients, providers, and insurers regarding the AKF. The Company is cooperating with the government in this investigation.</span></div><div style="margin-top:9pt;text-align:center"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">* * *</span></div><div style="margin-top:9pt;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Although the Company cannot predict whether or when proceedings might be initiated or when these matters may be resolved (other than as may be described above), it is not unusual for inquiries such as these to continue for a considerable period of time through the various phases of document and witness requests and ongoing discussions with regulators and to develop over the course of time. In addition to the inquiries and proceedings specifically identified above, the Company frequently is subject to other inquiries by state or federal government agencies, many of which relate to </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">qui tam</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> complaints filed by relators. Negative findings or terms and conditions that the Company might agree to accept as part of a negotiated resolution of pending or future government inquiries or relator proceedings could result in, among other things, substantial financial penalties or awards against the Company, substantial payments made by the Company, harm to the Company’s reputation, required changes to the Company’s business practices, an impact on the Company's various relationships and/or contracts related to the Company's business, exclusion from future participation in the Medicare, Medicaid and other federal health care programs and, if criminal proceedings were initiated against the Company, members of its board of directors or management, possible criminal penalties, any of which could have a material adverse effect on the Company.</span></div><div style="margin-top:9pt;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Other Proceedings</span></div><div style="margin-top:9pt;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;text-decoration:underline">2021 Antitrust Indictment and Putative Class Action Suit</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">: On July 14, 2021, an indictment was returned by a grand jury in the U.S. District Court, District of Colorado against the Company and its former chief executive officer in the matter of </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">U.S. v. DaVita Inc., et al.</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> alleging that purported agreements entered into by DaVita's former chief executive officer not to solicit senior-level employees violated Section 1 of the Sherman Act. On April 15, 2022, a jury returned a verdict in the Company’s favor, acquitting both the Company and its former chief executive officer on all counts. On April 20, 2022, the court entered judgments of acquittal and closed the case. On August 9, 2021, DaVita Inc. and its former chief executive officer were added as </span></div><div style="margin-top:9pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">defendants in a consolidated putative class action complaint in the matter of </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">In re Outpatient Medical Center Employee Antitrust Litigation</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> in the U.S. District Court, Northern District of Illinois. This class action complaint asserts that the defendants violated Section 1 of the Sherman Act and seeks to bring an action on behalf of certain groups of individuals employed by the Company between February 1, 2012 and January 5, 2021. On September 26, 2022, the court denied the Company's motion to dismiss. The Company disputes the allegations in the class action complaint, as well as the asserted violations of the Sherman Act, and intends to defend this action accordingly.</span></div><div style="margin-top:9pt;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Additionally, from time to time the Company is subject to other lawsuits, demands, claims, governmental investigations and audits and legal proceedings that arise due to the nature of its business, including, without limitation, contractual disputes, such as with payors, suppliers and others, employee-related matters and professional and general liability claims. From time to time, the Company also initiates litigation or other legal proceedings as a plaintiff arising out of contracts or other matters.</span></div><div style="margin-top:9pt;text-align:center"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">* * *</span></div><div style="margin-top:9pt;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Other than as may be described above, the Company cannot predict the ultimate outcomes of the various legal proceedings and regulatory matters to which the Company is or may be subject from time to time, including those described in this Note 15, or the timing of their resolution or the ultimate losses or impact of developments in those matters, which could have a material adverse effect on the Company’s revenues, earnings and cash flows. Further, any legal proceedings or regulatory matters involving the Company, whether meritorious or not, are time consuming, and often require management’s attention and result in significant legal expense, and may result in the diversion of significant operational resources, may impact the Company's various relationships and/or contracts related to the Company's business or otherwise harm the Company’s business, results of operations, financial condition, cash flows or reputation.</span></div>
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CY2023 us-gaap Employee Service Share Based Compensation Tax Benefit From Compensation Expense
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CY2022 us-gaap Employee Service Share Based Compensation Tax Benefit From Compensation Expense
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CY2021 us-gaap Employee Service Share Based Compensation Tax Benefit From Compensation Expense
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CY2023 us-gaap Proceeds From Stock Options Exercised
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CY2023Q4 us-gaap Preferred Stock Shares Authorized
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CY2023 dva Period During Which The Company Is Subject To Section203 Of The Delaware General Corporation Law Limitation
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CY2023 us-gaap Net Income Loss
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CY2022 us-gaap Net Income Loss
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CY2021 us-gaap Net Income Loss
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CY2023 us-gaap Payments To Minority Shareholders
PaymentsToMinorityShareholders
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CY2022 us-gaap Payments To Minority Shareholders
PaymentsToMinorityShareholders
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CY2021 us-gaap Payments To Minority Shareholders
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CY2023 us-gaap Business Acquisitions Pro Forma Revenue
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CY2022 us-gaap Business Acquisitions Pro Forma Revenue
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CY2023 us-gaap Business Acquisitions Pro Forma Net Income Loss
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CY2022 dva Debt Extinguishment And Modification Costs
DebtExtinguishmentAndModificationCosts
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CY2021 dva Debt Extinguishment And Modification Costs
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IncomeTaxesPaid
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InterestPaidNet
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InterestPaidNet
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1928000 usd
CY2021 us-gaap Noncash Or Part Noncash Acquisition Fixed Assets Acquired1
NoncashOrPartNoncashAcquisitionFixedAssetsAcquired1
31690000 usd

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