DaVita said operating cash flow for Q1 2024 declined from the prior-year period, citing lower cash collections tied to the CHC outage and a decrease in other working capital items as the main factors. It also said free cash flow was negative in the same period.

1. 01

   DaVita said operating cash flow for Q1 2024 declined from the prior-year period, citing lower cash collections tied to the CHC outage and a decrease in other working capital items as the main factors. It also said free cash flow was negative in the same period.

2. 02

   The company said the CHC outage increased patient receivables and DSO and led to higher borrowings under its revolving credit facility. It also said CHC began restoring its claims submission function on March 28, 2024. The company said it expects to fund the increase in working capital, if needed, through its temporary financial assistance program, cash on hand and its revolving credit facility.

3. 03

   DaVita said that as of March 31, 2024, it had borrowed $765 million of the $1.5 billion revolving credit facility and $735 million was available. As of the date of the report, it said it had repaid this $765 million using funds from the CHC Funding Arrangement and cash on hand.

4. 04

   DaVita said U.S. dialysis center closure costs were approximately $14.6 million in Q1 2024, approximately $31.8 million in Q4 2023, and approximately $22.2 million in Q1 2023. It also said it recognized a non-cash gain of $35.1 million on its prior investment in a previously nonconsolidated dialysis partnership when it acquired a controlling interest in the partnership in Q1 2024.

Key figures

Quarter ended March 31, 2024

Revenue

$3.1B

Operating income

$484M

Net income

$240M

EPS

$2.65

Operating cash flow

−$135M

Analysis scope · Management's discussion (MD&A)We analyzed excerpts of the Management's Discussion and Analysis (MD&A) section (with omissions). Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

The filing as submitted to SEC EDGAR. You can check the figures and statements of this summary against it.