DGAP-News: Fresenius Medical Care AG & Co. KGaA / Key word(s): Final
Results
Fresenius Medical Care AG & Co. KGaA Reports Strong Fourth Quarter And
Full Year 2012 Results In Line With Guidance
26.02.2013 / 07:57
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February 26, 2013
Fresenius Medical Care Reports Strong Fourth Quarter And Full Year 2012
Results In Line With Guidance
Full Year 2012 Summary:
Reported
Net Revenue $13,800 million +10%
Operating income (EBIT) $2,219 million +7%
Net income1 $1,187 million +11%
Earnings per ordinary share $3.89 +10%
Adjusted2
Operating income (EBIT) $2,329 million +12%
Net income1 $1,118 million +4%
Earnings per ordinary share $3.66 +4%
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Dividend proposal
Ordinary Share EUR0.75 +9%
Preference Share EUR0.77 +8%
1Attributable to shareholders of Fresenius Medical Care AG & Co. KGaA
2Fresenius Medical Care's net income guidance for 2012 was based on
adjusted numbers. For further details see page 10 and 11.
Bad Homburg, Germany - Fresenius Medical Care AG & Co. KGaA (the 'company'
or 'Fresenius Medical Care'; Frankfurt Stock Exchange: FME / New York Stock
Exchange: FMS), the world's largest provider of dialysis products and
services, today announced its results for the fourth quarter and full year
2012.
4th Quarter of 2012
Revenue
Net revenue for the fourth quarter of 2012 increased by 13% to $3,706
million (+14% at constant currency) compared to the fourth quarter of 2011.
Organic revenue growth worldwide was 8%. Dialysis services revenue grew by
18% to $2,804 million (+19% at constant currency) and dialysis product
revenue increased by 2% to $902 million and increased by 4% at constant
currency.
North America revenue for the fourth quarter of 2012 increased by 19% to
$2,429 million. Dialysis services revenue grew by 22% to $2,222 million
with a same store growth of 4%. Average revenue per treatment for U.S.
services increased to $368 in the fourth quarter of 2012 compared to $351
for the corresponding quarter in 2011. Dialysis product revenue decreased
by 3% to $207 million.
International revenue increased by 4% to $1,270 million and increased by 6%
at constant currency. Organic revenue growth was 6%. Dialysis services
revenue increased by 5% to $582 million and increased by 8% at constant
currency. Dialysis product revenue increased by 3% to $688 million and
increased by 5% at constant currency.
Earnings
Operating income (EBIT) for the fourth quarter of 2012 decreased by 5% to
$559 million compared to $587 million in the fourth quarter of 2011. The
operating income includes charges in the amount of $110 million related to
the amendment of the agreement for our iron product Venofer in North
America and a donation to the American Society of Nephrology. Excluding
those charges the operating income for the fourth quarter increased by 14%
to $ 669 million, translating into an operating margin of 18.1% for the
fourth quarter of 2012 as compared to 18.0% for the corresponding quarter
in 2011.
Excluding the above mentioned charges, the operating margin for North
America increased from 19.6% to 21.2%. Average costs per treatment for U.S.
services increased to $286 in the fourth quarter of 2012 as compared to
$279 in the fourth quarter of 2011. In the International segment, the
operating margin decreased from 18.7% to 16.7%.
Net interest expense for the fourth quarter of 2012 was $115 million,
compared to $82 million in the fourth quarter of 2011. This development was
mainly attributable to the higher level of indebtedness as a result of the
issuance of various tranches of senior notes over the course of 2011 and
2012 to finance dialysis clinic acquisitions.
Income tax expense was $143 million for the fourth quarter of 2012 compared
to $165 million in the fourth quarter of 2011, reflecting effective tax
rates of 32.1% and 32.7%, respectively.
Net income attributable to shareholders of Fresenius Medical Care AG & Co.
KGaA for the fourth quarter of 2012 was $257 million, a decrease of 17%
compared to the corresponding quarter of 2011. Excluding after tax charges
in the amount of $71 million related to the amendment of the agreement for
Venofer and a donation to the American Society of Nephrology, net income
attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for
the fourth quarter was $327 million, an increase of 5%.
Earnings per ordinary share (EPS) for the fourth quarter of 2012 was $0.84
compared to $1.02 for the fourth quarter of 2011. The weighted average
number of shares outstanding for the fourth quarter of 2012 was
approximately 306.4 million shares, compared to 303.9 million shares for
the fourth quarter of 2011. The increase in shares outstanding resulted
from stock option exercises in the past 12 months. Excluding the above
mentioned charges earnings per ordinary share for the fourth quarter 2012
was $1.07.
Cash flow
In the fourth quarter of 2012, the company generated $572 million in cash
from operations, an increase of 15% compared to the corresponding figure
last year and representing 15.4% of revenue. The cash flow generation was
mainly supported by the favorable development of working capital items.
A total of $227 million was spent for capital expenditures, net of
disposals. Free cash flow before acquisitions was $345 million
(representing 9.3% of revenue) compared to $306 million in the fourth
quarter of 2011. A total of $59 million in cash was spent for acquisitions
and investments, net of divestitures. Free cash flow after acquisitions and
divestitures was $286 million, compared to minus $298 million in the fourth
quarter of 2011.
Full Year 2012
Revenue and Earnings
Net revenue for the full year 2012 increased by 10% to $13,800 million
(+12% at constant currency) compared to the full year 2011. Organic revenue
growth worldwide was 5%.
Operating income (EBIT) for the full year 2012 increased by 7% to $2,219
million compared to $2,075 million for the full year 2011. The operating
income includes charges in the amount of $110 million related to the
amendment of the agreement for Venofer and a donation to the American
Society of Nephrology. Excluding those charges the operating income for the
full year 2012 increased by 12% to $2,329 million, translating into an
operating margin of 16.9% as compared to 16.5% for the full year 2011.
Net interest expense for the full year 2012 was $426 million compared to
$297 million in the same period of 2011.
For the full year 2012, net income attributable to shareholders of
Fresenius Medical Care AG & Co. KGaA increased by 11% to $1,187 million.
This includes a non-taxable investment gain of $140 million related to the
acquisition of Liberty Dialysis Holdings, Inc., including its 51% stake in
Renal Advantage Partners, LLC (RAI). The gain is a result of measuring the
49% equity interest in RAI held by the company at its fair value at the
time of the Liberty acquisition. It also includes after tax charges in the
amount of $71 million related to the amendment of the agreement for Venofer
and a donation to the American Society of Nephrology. Excluding the
investment gain and the before mentioned charges net income attributable to
shareholders of Fresenius Medical Care AG & Co. KGaA was $1,118 million, an
increase of 4% compared to 2011.
Income tax expense for the full year 2012 was $605 million compared to $601
million in the same period in 2011, reflecting effective tax rates of 31.3%
and 33.8%, respectively.
In the full year 2012, earnings per ordinary share rose by 10% to $3.89.
The weighted average number of shares outstanding during the full year 2012
was approximately 305.1 million compared to 303.0 million shares for the
full year 2011. Excluding the investment gain and the above mentioned
charges earnings per ordinary share was $3.66.
Cash Flow
For the full year 2012, the company generated $2,039 million in cash from
operations, an increase of 41% compared to the corresponding figure last
year and representing 14.8% of revenue.
A total of $666 million in cash was spent for capital expenditures, net of
disposals. Free cash flow before acquisitions for the full year 2012 was
$1,373 million compared to $876 million in the same period in 2011. A total
of $1,615 million in cash was spent for acquisitions, net of divestitures.
Free cash flow after acquisitions and divestitures was minus $242 million
compared to minus $899 million in the last year.
Please refer to the attachments for a complete overview on the fourth
quarter and the full year 2012 and the reconciliation of non-GAAP financial
measures included in this release to the most comparable GAAP financial
measures.
Patients - Clinics - Treatments
As of December 31, 2012, Fresenius Medical Care treated 257,916 patients
worldwide, which represents an increase of 11% compared to the previous
year's figure. North America provided dialysis treatments for 164,554
patients, an increase of 16%. Including 32 clinics managed by Fresenius
Medical Care North America, the number of patients in North America was
166,920. The International segment provided dialysis treatment to 93,362
patients, an increase of 3% over the prior year's figure.
As of December 31, 2012, the company operated a total of 3,160 clinics
worldwide, which represents an increase of 9% compared to the previous
year's figure. The number of clinics is comprised of 2,082 clinics in North
America (2,114 including managed clinics), and 1,078 clinics in the
International segment, representing an increase of 13% and 2%,
respectively.
During the full year 2012, Fresenius Medical Care delivered approximately
38.6 million dialysis treatments worldwide. This represents an increase of
12% compared to the previous year's figure. North America accounted for
24.4 million treatments, an increase of 13%. The International segment
delivered 14.2 million treatments, an increase of 11%.
Employees
As of December 31, 2012, Fresenius Medical Care had 86,153 employees
(full-time equivalents) worldwide, compared to 79,159 employees at the end
of 2011. This increase of approximately 7,000 employees is due to overall
growth in the company's business and acquisitions including Liberty
Dialysis Holdings, Inc.
Dividend
The company intends to continue its earnings-driven policy. At the Annual
General Meeting to be held on May 16, 2013, shareholders will be asked to
approve a dividend of EUR0.75 per ordinary share, an increase of 9% from
2011 (EUR0.69). For the 16th consecutive year, shareholders can expect to
receive an increased annual dividend.
Debt/EBITDA ratio
The ratio of debt to earnings before interest, taxes, depreciation and
amortization (EBITDA) increased from 2.69 at the end of 2011 to 2.83 at the
end of 2012. The debt/EBITDA ratio at the end of the third quarter 2012 was
2.81.
Rating
Both Standard & Poor's and Fitch rate the company's corporate credit as
'BB+' with a 'stable' outlook. Moody's rates the company's corporate credit
as 'Ba1' with a 'stable' outlook. For further information on Fresenius
Medical Care's credit ratings and credit instruments, please visit our
website at www.fmc-ag.com / Investor Relations/ Credit Relations.
Outlook for 2013
For the year 2013 the company expects revenue to grow to more than $14.6
billion. Net income attributable to shareholders of Fresenius Medical Care
AG & Co. KGaA is expected to be between $1.1 billion and $1.2 billion. For
2013, the company expects to spend around $700 million on capital
expenditures and around $300 million on acquisitions. The debt/EBITDA ratio
is expected to be equal or below 3.0 by the end of 2013.
Targets for 2013:
in US$ million 2012 Goal 2013 Growth rate
Revenue 13,800 > 14,600 > 6%
Operating income (EBIT) 2,219 2,300 - 2,500 4% - 13%
Net income (comparable basis)* 1,047 1,100 - 1,200 5% - 15%
*excluding investment gain
Rice Powell, chief executive officer of Fresenius Medical Care, commented:
'Fresenius Medical Care looks back on another successful year. We once
again achieved new records both in terms of revenue and earnings despite
challenging global conditions. We were able to sustain our growth path but
more importantly we made very good progress with our quality initiatives in
both products and services. Quality and growth remain our top priorities in
the future. With our strong management team and dedicated employees,
Fresenius Medical Care remains very well positioned for great success in
2013 and beyond.'
Video Webcast
Fresenius Medical Care will hold an analyst meeting at its headquarters in
Bad Homburg, Germany to discuss the results of the fourth quarter and full
year 2012 on Tuesday, February 26, 2013, at 3:15 p.m. CET / 9:15 a.m. EST.
The company invites investors to view the live webcast of the meeting at
the company's website www.fmc-ag.com in the 'Investor Relations' section. A
replay will be available shortly after the meeting.
Fresenius Medical Care is the world's largest integrated provider of
products and services for individuals undergoing dialysis because of
chronic kidney failure, a condition that affects more than 2.2 million
individuals worldwide. Through its network of 3,160 dialysis clinics in
North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius
Medical Care provides dialysis treatment to 257,916 patients around the
globe. Fresenius Medical Care is also the world's leading provider of
dialysis products such as hemodialysis machines, dialyzers and related
disposable products.
For more information about Fresenius Medical Care, visit the company's
website at www.fmc-ag.com.
Disclaimer
This release contains forward-looking statements that are subject to
various risks and uncertainties. Actual results could differ materially
from those described in these forward-looking statements due to certain
factors, including changes in business, economic and competitive
conditions, regulatory reforms, foreign exchange rate fluctuations,
uncertainties in litigation or investigative proceedings, and the
availability of financing. These and other risks and uncertainties are
detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the
U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co.
KGaA does not undertake any responsibility to update the forward-looking
statements in this release.
End of Corporate News
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26.02.2013 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: Fresenius Medical Care AG & Co. KGaA
Else-Kröner-StraÃe 1
61352 Bad Homburg
Germany
Phone: +49 (0) 6172- 609 2525
Fax: +49 (0) 6172- 609 2301
E-mail: ir@fmc-ag.com
Internet: www.fmc-ag.de
ISIN: DE0005785802, DE0005785836,
WKN: 578580, 578583
Indices: DAX
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart; Terminbörse EUREX; NYSE
End of News DGAP News-Service
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202291 26.02.2013
DGAP-News: Fresenius Medical Care AG & Co. KGaA Reports Strong Fourth Quarter And Full Year 2012 Results In Line With Guidance
| Source: EQS Group AG