DaVita 1st Quarter 2009 Results
PRNewswire-FirstCall
EL SEGUNDO, Calif.
DaVita Inc.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020729/DAVITALOGO) Financial and operating highlights include: -- Significant New Accounting Policies: On January 1, 2009 we adopted SFAS No. 160 Noncontrolling Interests in Consolidated Financial Statements and implemented SEC Topic No. D-98 Classification and Measurement of Redeemable Securities. These standards changed the presentation and measurement of noncontrolling interests in our financial statements for all periods presented, which primarily affected the presentation of operating income, operating cash flows and the effective income tax rate. See reconciliations for non-GAAP measures beginning on page 10 of this release for further details of the impact on our financial statements of adopting these standards. -- Cash Flow: For the rolling 12 months ended March 31, 2009 operating cash flow was $640 million and free cash flow was $468 million. For the three months ended March 31, 2009 operating cash flow was $134 million and free cash flow was $90 million. -- Operating Income: Operating income for the three months ended March 31, 2009 was $221 million, as compared to $206 million for the same period of 2008. -- Volume: Total treatments for the first quarter of 2009 were 4,082,439, or 53,365 treatments per day, representing a per day increase of 5.0% over the first quarter of 2008. Non-acquired treatment growth in the quarter was 4.0% over the prior year's first quarter. -- Effective Tax Rate: Our effective tax rate was 37.4% for the three months ended March 31, 2009. This effective tax rate is impacted by the amount of third parties owners' income attributable to non-tax paying entities. The effective tax rate attributable to DaVita Inc. was 40.2% for the three months ended March 31, 2009 which was in the range of our previous stated guidance. Our effective tax rate for 2009 is projected to be in the range of 37.0% to 38.0% and our 2009 effective tax rate attributable to DaVita Inc. is still projected to be in a range of 39.5% to 40.5%. -- Share Repurchases: During the first quarter of 2009 we repurchased a total of 744,400 of our common stock for $32.0 million, or an average price of $43.01 per share, pursuant to previously announced Board authorizations. We have not repurchased any additional shares of our common stock subsequent to March 31, 2009. -- Center Activity: As of March 31, 2009, we operated or provided administrative services at 1,475 outpatient dialysis centers serving approximately 114,000 patients, of which 1,446 centers are consolidated in our financial statements. During the first quarter of 2009, we acquired seven centers, opened 18 new centers, merged one center and closed one center. Outlook
Our operating income guidance attributable to DaVita Inc. for 2009 remains unchanged at a range of $820-$880 million. However, as a result of adopting SFAS No. 160, the classification of noncontrolling interests was changed to no longer be deducted from our operating income as previously reported. Therefore, our operating income guidance based on the current presentation under SFAS No. 160 is projected to be in the range of $870-$930 million, even though the underlying fundamental economics of our business have not changed. In addition, our operating cash flow guidance is now projected to be in the range of $550-$600 million. See supplemental financial data on page 8 for further details. These projections and the underlying assumptions involve significant risks and uncertainties, including those described below and actual results may vary significantly from these current projections.
DaVita will be holding a conference call to discuss its results for the three months ended March 31, 2009 on April 28, 2009 at 8:30 a.m. Eastern Time. The dial in number is (800) 399-4406. A replay of the conference call will be available on DaVita's official web page, www.davita.com, for the following 30 days.
This release contains forward-looking statements, including statements related to our 2009 operating results and 2009 expected effective tax rate and the expected effective tax rate attributable to DaVita Inc. Factors which could impact future results include the uncertainties associated with governmental regulations, general economic and other market conditions, competition, accounting estimates and the risk factors set forth in our SEC filings, including our Form 10-K for the year ended December 31, 2008. The forward-looking statements should be considered in light of these risks and uncertainties.
These risks and uncertainties include those relating to:
-- the concentration of profits generated from commercial payor plans,
-- continued downward pressure on average realized payment rates from
commercial payors, which may result in the loss of revenue or
patients,
-- a reduction in the number of patients under higher-paying commercial
plans,
-- a reduction in government payment rates or the structure of payments
under the Medicare ESRD Program which result in lower reimbursement
for services we provide to Medicare patients,
-- changes in pharmaceutical or anemia management practice patterns,
payment policies, or pharmaceutical pricing,
-- our ability to maintain contracts with physician medical directors,
-- legal compliance risks, including our continued compliance with
complex government regulations and compliance with the corporate
integrity agreement applicable to the dialysis centers acquired from
Gambro Healthcare and assumed in connection with such acquisition, and
-- the resolution of ongoing investigations by various federal and state
governmental agencies.
We undertake no obligation to update or revise any forward-looking statements, whether as a result of changes in underlying factors, new information, future events or otherwise.
This release contains non-GAAP financial measures. For reconciliations of these non-GAAP financial measures to their most comparable measure calculated and presented in accordance with GAAP, see the attached reconciliation schedules.
DAVITA INC.
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(dollars in thousands, except per share data)
Three months ended
March 31,
2009 2008
Net operating revenues $1,447,640 $1,344,724
Operating expenses and charges:
Patient care costs 1,005,886 930,209
General and administrative 127,273 120,765
Depreciation and amortization 57,123 52,811
Provision for uncollectible accounts 36,736 34,631
Equity investment loss 18 527
Total operating expenses and charges 1,227,036 1,138,943
Operating income 220,604 205,781
Debt expense (48,301) (59,066)
Other income 754 4,863
Income before income taxes 173,057 151,578
Income tax expense 64,783 55,570
Net income 108,274 96,008
Less: Net income attributable to
noncontrolling interests (12,063) (9,074)
Net income attributable to DaVita Inc. $96,211 $86,934
Earnings per share:
Basic earnings per share attributable
to DaVita Inc. $0.93 $0.81
Diluted earnings per share attributable
to DaVita Inc. $0.92 $0.80
Weighted average shares for earnings
per share:
Basic 103,878,417 107,367,356
Diluted 104,409,026 108,239,360
DAVITA INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(dollars in thousands)
Three months ended
March 31,
2009 2008
Cash flows from operating activities:
Net income attributable to DaVita Inc. $ 96,211 $86,934
Adjustments to reconcile net income to cash
provided by operating activities:
Depreciation and amortization 57,123 52,811
Stock-based compensation expense 11,009 9,548
Tax benefits from stock award exercises 2,161 2,618
Excess tax benefits from stock award exercises (779) (1,411)
Deferred income taxes 16,430 (7,439)
Net income attributable to noncontrolling
interests 12,063 9,074
Equity investment loss 18 527
Loss on disposal of assets 3,629 1,355
Non-cash debt and non-cash rent charges 3,422 4,074
Changes in operating assets and liabilities, other
than from acquisitions and divestitures:
Accounts receivable (13,757) (33,168)
Inventories 13,055 3,499
Other receivables and other current assets 41,417 16,846
Other long-term assets 1,422 (537)
Accounts payable (65,411) (39,217)
Accrued compensation and benefits (21,403) (47,571)
Other current liabilities (54,116) (6,500)
Income taxes 40,339 56,653
Other long-term liabilities (8,584) (184)
Net cash provided by operating activities 134,249 107,912
Cash flows from investing activities:
Additions of property and equipment, net (73,203) (64,673)
Acquisitions (39,828) (5,671)
Proceeds from asset sales 4,199 23
Purchase of investments available for sale (514) (839)
Purchase of investments held-to-maturity (6) (109)
Proceeds from sale of investments available
for sale 10,669 4,955
Proceeds from maturities of investments
held-to-maturity 20 73
Purchase of intangible assets and other - (20)
Net cash used in investing activities (98,663) (66,261)
Cash flows from financing activities:
Borrowings 2,619,540 4,050,363
Payments on long-term debt (2,630,739) (4,052,066)
Deferred financing costs - (130)
Purchase of treasury stock (32,016) (7,144)
Excess tax benefits from stock award exercises 779 1,411
Stock award exercises and other share
issuances, net 9,102 8,525
Distributions to noncontrolling interests (13,567) (16,888)
Contributions from noncontrolling interests 4,460 5,103
Proceeds from sales of additional
noncontrolling interests 3,081 4,612
Purchase of noncontrolling interests (1,424) (3,167)
Net cash used in financing activities (40,784) (9,381)
Net (decrease) increase in cash and cash
equivalents (5,198) 32,270
Cash and cash equivalents at beginning of period 410,881 447,046
Cash and cash equivalents at end of period $405,683 $479,316
DAVITA INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(dollars in thousands, except per share data)
ASSETS March 31, December 31,
2009 2008
Cash and cash equivalents $405,683 $410,881
Short-term investments 25,413 35,532
Accounts receivable, less allowance of
$216,261 and $211,222 1,088,584 1,075,457
Inventories 71,353 84,174
Other receivables 194,637 239,165
Other current assets 32,454 33,761
Income tax receivable - 32,130
Deferred income taxes 213,339 217,196
Total current assets 2,031,463 2,128,296
Property and equipment, net 1,067,289 1,048,075
Amortizable intangibles, net 155,823 160,521
Investments in third-party dialysis businesses 23,856 19,274
Long-term investments 5,212 5,656
Other long-term assets 46,006 47,330
Goodwill 3,905,762 3,876,931
$7,235,411 $7,286,083
LIABILITIES AND EQUITY
Accounts payable $217,125 $282,883
Other liabilities 441,124 495,239
Accrued compensation and benefits 276,851 312,216
Current portion of long-term debt 83,295 72,725
Income taxes payable 8,211 -
Total current liabilities 1,026,606 1,163,063
Long-term debt 3,600,233 3,622,421
Other long-term liabilities 100,085 101,442
Alliance and product supply agreement, net 34,645 35,977
Deferred income taxes 260,101 244,884
Total liabilities 5,021,670 5,167,787
Commitments and contingencies
Noncontrolling interests subject to
put provisions 289,592 291,397
Equity:
Preferred stock ($0.001 par value,
5,000,000 shares authorized; none issued)
Common stock ($0.001 par value, 450,000,000
shares authorized; 134,862,283 shares issued;
103,409,287 and 103,753,673 shares outstanding) 135 135
Additional paid-in capital 607,234 584,358
Retained earnings 1,985,661 1,889,450
Treasury stock, at cost (31,452,996 and
31,108,610 shares) (714,977) (691,857)
Accumulated other comprehensive loss (12,111) (14,339)
Total DaVita Inc. shareholders' equity 1,865,942 1,767,747
Noncontrolling interests not subject to
put provisions 58,207 59,152
Total equity 1,924,149 1,826,899
$7,235,411 $7,286,083
DAVITA INC.
SUPPLEMENTAL FINANCIAL DATA
(unaudited)
(dollars in millions, except for per share and per treatment data)
Three months ended
March 31, December 31, March 31,
2009 2008 2008
1. Consolidated Financial Results:
Revenues $1,448 $1,461 $1,345
Operating income $220.6 $223.1 $205.8
Operating income margin 15.2% 15.3% 15.3%
Net income attributable to DaVita Inc. $96.2 $98.4 $86.9
Diluted earnings per share attributable
to DaVita Inc. $0.92 $0.94 $0.80
2. Consolidated Business Metrics:
Expenses
Patient care costs as a percent of
consolidated revenue (3) 69.5% 69.2% 69.2%
General and administrative expenses as
a percent of consolidated revenue (3) 8.8% 9.1% 9.0%
Bad debt expense as a percent of
consolidated revenue 2.5% 2.5% 2.6%
Consolidated effective tax rate
attributable to DaVita Inc.(1) 40.2% 37.7% 39.0%
3. Segment Financial Results:
(dollar amounts rounded to nearest million)
Dialysis and related lab services
Revenues $1,377 $1,389 $1,297
Direct operating expenses 1,140 1,148 1,068
Dialysis segment margin $237 $241 $229
Other - Ancillary services and strategic
initiatives
Revenues $71 $72 $48
Direct operating expenses 76 79 61
Ancillary segment loss $(5) $(7) $(13)
Total segment margin $232 $234 $216
Reconciling items:
Stock-based compensation (11) (11) (10)
Equity investment loss - - (1)
Consolidated operating income $221 $223 $206
DAVITA INC.
SUPPLEMENTAL FINANCIAL DATA--continued
(unaudited)
(dollars in millions, except for per share and per treatment data)
Three months ended
March 31, December 31, March 31,
2009 2008 2008
4. Segment Business Metrics:
Dialysis and related lab services:
Volume
Treatments 4,082,439 4,172,468 3,934,777
Number of treatment days 76.5 79.5 77.4
Treatments per day 53,365 52,484 50,837
Per day year over year increase 5.0% 4.9% 6.3%
Non-acquired growth year over year 4.0% 4.0% 5.0%
Revenue
Dialysis and related lab services
revenue per treatment $336.73 $332.61 $328.95
Per treatment increase (decrease)
from previous quarter 1.2% (1.1%) 0.3%
Per treatment increase (decrease)
from previous year 2.4% 1.4% (2.6%)
Percent of consolidated revenue 95.1% 95.1% 96.4%
Expenses
Patient care costs
Percent of segment revenue 68.8% 68.6% 68.7%
Per treatment $231.88 $228.29 $226.21
Per treatment increase (decrease)
from previous quarter 1.6% (1.8%) 1.4%
Per treatment increase (decrease)
from previous year 2.5% 2.3% (2.5%)
General and administrative expenses
Percent of segment revenue 7.4% 7.6% 7.1%
Per treatment $24.99 $25.36 $23.50
Per treatment (decrease) increase
from previous quarter (1.5%) 2.8% (12.5%)
Per treatment increase (decrease)
from previous year 6.3% (5.6%) (6.6%)
5. Cash Flow
Operating cash flow $134.2 $198.5 $107.9
Operating cash flow last twelve
months $640.0 $613.7 $590.8
Free cash flow(1) $ 89.5 $144.8 $72.6
Free cash flow, last twelve months(1) $467.7 $450.7 $432.5
Capital expenditures:
Development and relocations $42.0 $54.7 $46.1
Routine maintenance/IT other $31.2 $39.4 $18.5
Acquisition expenditures $39.8 $24.8 $5.7
6. Accounts Receivable
Net receivables $1,089 $1,075 $960
DSO 70 70 68
DAVITA INC.
SUPPLEMENTAL FINANCIAL DATA--continued
(unaudited)
(dollars in millions, except for per share and per treatment data)
Three months ended
March 31, December 31, March 31,
2009 2008 2008
7. Debt and Capital Structure
Total debt(2) $3,680 $3,691 $3,701
Net debt, net of cash(2) $3,275 $3,281 $3,222
Leverage ratio (see Note 1:
Calculation of the Leverage Ratio) 2.83x 2.88x 2.94x
Overall effective weighted average
interest rate during the quarter 5.04% 5.77% 6.10%
Overall effective weighted average
interest rate at end of the quarter 5.04% 5.10% 5.79%
Effective weighted average interest
rate on the Senior Secured Credit
Facilities at end of the quarter 3.36% 3.48% 4.80%
Economically fixed interest rates as
a percentage of our total debt 66% 69% 72%
Share repurchases $32.0 $63.0 $32.5
8. Clinical (quarterly averages)
Dialysis adequacy -% of patients with
Kt/V > 1.2 95% 95% 95%
90 day patients with Hb>=10 <=13 87% 86% -
Patients with arteriovenous
fistulas placed 62% 62% 60%
(1) These are non-GAAP financial measures. For a reconciliation of these
non-GAAP financial measures to their most comparable measure
calculated and presented in accordance with GAAP, see attached
reconciliation schedules.
(2) This is a non-GAAP financial measure. It excludes $3.3 million, the
unamortized balance of a debt premium associated with our senior
notes that is not actually outstanding debt principal.
(3) Consolidated percentages of revenue and per treatment amounts are
comprised of the dialysis and related lab services business, other
ancillary services and strategic initiatives, as well as stock-based
compensation expenses.
9. Reconciliations of operating income guidance and operating cash flow
guidance to our previous reported amounts:
Projected Range 2009
Consolidated operating income guidance:
Operating income guidance range as
previously reported $820 - $880
Add: Reclassification of
noncontrolling interests 50 - 50
Operating income guidance range $870 - $930
Consolidated operating cash flow
guidance:
Operating cash flow guidance range as
previously reported $500 - $550
Add: Income distributions to
noncontrolling interests 50 - 50
Operating cash flows guidance range $550 - $600
DAVITA INC.
SUPPLEMENTAL FINANCIAL DATA--continued
(unaudited)
(dollars in thousands)
Note 1: Calculation of the Leverage Ratio
Under the Company's current Senior Secured Credit Facilities (Credit
Agreement), the leverage ratio is defined as all funded debt plus the
face amount of all letters of credit issued, minus cash and cash
equivalents, divided by "Consolidated EBITDA". The leverage ratio
determines the interest rate margin payable by the Company for its term
loan A and revolving line of credit under the Credit Agreement by
establishing the margin over the base interest rate (LIBOR) that is
applicable. The following leverage ratio was calculated using
"Consolidated EBITDA" as defined in the Credit Agreement. The
calculation below is based on the last twelve months of "Consolidated
EBITDA", pro forma for the routine acquisitions that occurred during the
period. The Company's management believes the presentation of
"Consolidated EBITDA" is useful to investors to enhance their
understanding of the Company's leverage ratio under its Credit Agreement.
Rolling twelve
months ended
March 31, 2009
Net income attributable to DaVita Inc. $383,437
Income taxes 244,684
Debt expense 213,951
Depreciation and amortization 221,229
Noncontrolling interests and equity investment loss, net 48,844
Other 21,636
Stock-based compensation expense 42,696
"Consolidated EBITDA" $1,176,477
March 31, 2009
Total debt, excluding debt premium of $3.3 million $3,680,200
Letters of credit issued 50,901
3,731,101
Less: cash and cash equivalents (405,683)
Consolidated net debt $3,325,418
Last twelve months "Consolidated EBITDA" $1,176,477
Leverage ratio 2.83x
In accordance with the Company's Credit Agreement, the Company's leverage
ratio cannot exceed 4.50 to 1.0 as of March 31, 2009. At that date the
Company's leverage ratio did not exceed 4.50 to 1.0.
DAVITA INC.
RECONCILIATIONS FOR NON-GAAP MEASURES
(unaudited)
(dollars in thousands)
On January 1, 2009 we adopted SFAS No. 160 Noncontrolling Interests in
Consolidated Financial Statements and implemented the classification and
measurement of minority interests (noncontrolling interests) according
to SEC Topic No. D-98 Classification and Measurement of Redeemable
Securities. Under the provisions of SFAS No. 160 we are required to
separately report the amount of consolidated net income attributable to
the parent and to the noncontrolling interests on the face of the
consolidated statement of income instead of reporting noncontrolling
interests as a reduction to operating income as we previously had
reported. In addition, we are also required to treat noncontrolling
interests as a separate component of equity; however, in accordance with
SEC Topic No. D-98, we are required to classify securities with
redemption features that are not solely within our control, such as our
noncontrolling interests that are subject to put provisions outside of
permanent equity and to measure these noncontrolling interests at fair
value. The provisions of these standards have been applied
retrospectively for all prior periods presented.
The following tables reflect the adjustments made to our previously
reported financial statement amounts as a result of implementing SFAS
No. 160 and SEC Topic No. D-98.
1. Consolidated Statements of Income:
We believe that this reconciliation of reported operating income to
operating income as previously reported enables a user of our financial
statements to more fully understand the impact on our previously
reported operating results of implementing SFAS No. 160. Operating
income as previously reported is no longer a measure of financial
performance under United States generally accepted accounting principles
and should not be considered as an alternative to operating income.
Three months ended
December 31, March 31,
2008 2008
Operating income as reported $223,109 $205,781
Less: Reclassification of noncontrolling interests(11,509) (9,054)
Operating income as previously reported $211,600 $196,727
2. Consolidated Balance Sheet:
We believe that this reconciliation of certain reported balance sheets
accounts to the same balance sheet accounts as previously reported
enables a user of our financial statements to more fully understand the
impact on our previously reported balance sheet of implementing SFAS No.
160 and SEC Topic D-98. The balance sheet as previously reported is no
longer a measure of financial position under United States generally
accepted accounting principles and should not be considered as an
alternative to financial position.
Noncontrolling
interests Noncontrolling
not interests
Income subject subject Additional
tax Minority to put to put paid in
receivable interest provisions provisions capital
Balances as
previously
reported as
of December
31, 2008 $32,138 $165,846 $- $- $769,069
Net change
due to
implementation
of SFAS No. 160
and SEC
Topic No.
D-98 (8) (165,846) 59,152 291,397 (184,711)
Balances as
adjusted
as of
December 31,
2008 $32,130 $- $59,152 $291,397 $584,358
DAVITA INC.
RECONCILIATIONS FOR NON-GAAP MEASURES
(unaudited)
(dollars in thousands)
3. Effective Income Tax Rates
We believe that reporting the effective income tax rate attributable to
DaVita Inc. enhances a user understanding of DaVita's effective income
tax rate for the periods presented because it excludes noncontrolling
owners' income that primarily relates to non-tax paying entities and
accordingly is more comparable to prior periods presentations regarding
DaVita's effective income tax rate and is more meaningful to a user to
fully understand the related income tax effects on DaVita Inc. operating
results. This measure is not a measure of financial performance under
United States generally accepted accounting principles and should not be
considered as an alternative to the effective income tax rate.
Effective income tax rate as compared to the effective income tax rate
attributable to DaVita Inc. is as follows:
Three months ended
March 31, December 31, March 31,
2009 2008 2008
Income before income taxes $173,057 $169,364 $151,578
Income tax expense $64,783 $59,618 $55,570
Effective income tax rate 37.4% 35.2% 36.7%
Three months ended
March 31, December 31, March 31,
2009 2008 2008
Income before income taxes $173,057 $169,364 $151,578
Less: Noncontrolling owners'
income primarily attributable to
non-tax paying entities (12,156) (11,509) (9,054)
Income before income taxes
attributable to DaVita Inc. $160,901 $157,855 $142,524
Income tax expense $64,783 $59,618 $55,570
Less income (tax) benefit
attributable to noncontrolling interests (93) (128) 20
Income tax attributable to DaVita Inc. $64,690 $59,490 $55,590
Effective income tax rate
attributable to DaVita Inc. 40.2% 37.7% 39.0%
DAVITA INC.
RECONCILIATIONS FOR NON-GAAP MEASURES
(unaudited)
(dollars in thousands)
4. Operating Cash Flow Net of Income Distributions to Noncontrolling
Interests:
We believe that operating cash flow net of income distributions to
noncontrolling interests enhances a user's understanding of the impact
to our cash flow statements of implementing SFAS No. 160 which requires
us to report operating cash flows at an enterprise level. Operating cash
flow net of income distributions to noncontrolling interests also
provides a measure that is more meaningful because it relates to
operating cash flows that are attributable to DaVita Inc. This measure
is not a measure of financial performance under United States generally
accepted accounting principles and should not be considered as an
alternative to cash flows from operating, investing or financing
activities, as an indicator of cash flows or as a measure of liquidity.
Three months ended
March 31, December 31, March 31,
2009 2008 2008
Cash provided by operating activities $134,249 $198,549 $107,912
Less: Income distributions to
noncontrolling interests (13,567) (14,379) (16,888)
Cash provided by operating activities
attributable to DaVita Inc. $120,682 $184,170 $91,024
Rolling 12-Month Period
March 31, December 31, March 31,
2009 2008 2008
Cash provided by operating activities $640,038 $613,701 $590,840
Less: Income distributions to
noncontrolling interests (54,449) (57,770) (54,811)
Cash provided by operating activities
attributable to DaVita Inc. $585,589 $555,931 $536,029
DAVITA INC.
RECONCILIATIONS FOR NON-GAAP MEASURES
(unaudited)
(dollars in thousands)
5. Free cash flow
Free cash flow represents net cash provided by operating activities less
income distributions to noncontrolling interests and capital
expenditures for routine maintenance and information technology. We
believe free cash flow is a useful adjunct to cash flow from operating
activities and other measurements under United States generally accepted
accounting principles, since free cash flow is a meaningful measure of
our ability to fund acquisition and development activities and meet our
debt service requirements. In addition, free cash flow excluding income
distributions to noncontrolling interests also provides a user with an
understanding of free cash flows that are attributable to DaVita Inc.
Free cash flow is not a measure of financial performance under United
States generally accepted accounting principles and should not be
considered as an alternative to cash flows from operating, investing or
financing activities, as an indicator of cash flows or as a measure of
liquidity.
Three months ended
March 31, December 31, March 31,
2009 2008 2008
Cash provided by operating
activities $134,249 $198,549 $107,912
Less: Income distributions to
noncontrolling interests (13,567) (14,379) (16,888)
Cash provided by operating activities
attributable to DaVita Inc. $120,682 $184,170 $91,024
Less: Expenditures for routine
maintenance and information
technology (31,155) (39,412) (18,451)
Free cash flow $89,527 $144,758 $72,573
Rolling 12-Month Period
March 31, December 31, March 31,
2009 2008 2008
Cash provided by operating activities $640,038 $613,701 $590,840
Less: Income distributions to
noncontrolling interests (54,449) (57,770) (54,811)
Cash provided by operating
activities attributable to DaVita Inc. $585,589 $555,931 $536,029
Less: Expenditures for routine
maintenance and information technology (117,937) (105,233) (103,525)
Free cash flow. $467,652 $450,698 $432,504
First Call Analyst:
FCMN Contact: LeAnne.Zumwalt@davita.com
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PRN Photo Desk,
SOURCE: DaVita Inc.
CONTACT: LeAnne Zumwalt, Investor Relations of DaVita Inc.,
+1-650-696-8910
Web Site: http://www.davita.com/