DGAP-News: Fresenius Medical Care AG & Co. KGaA / Key word(s): Half
Year Results/Quarter Results
Fresenius Medical Care Reports Second Quarter And Half Year 2013
Results
30.07.2013 / 07:26
---------------------------------------------------------------------
July 30, 2013
Fresenius Medical Care Reports Second Quarter And Half Year 2013 Results
Second Quarter 2013 Key Figures:
Net revenue $3,613 million +5%
Operating income (EBIT) $544 million -8%
Adjusted operating income (EBIT) $555 million -2%
Net income1 $263 million -9%
Adjusted net income1 $272 million +2%
Earnings per ordinary share $0.86 -10%
Adjusted earnings per ordinary share $0.89 +2%
First Half 2013 Key Figures:
Net revenue $7,076 million +6%
Operating income (EBIT) $1,038 million -5%
Adjusted operating income (EBIT) $1,049 million -3%
Net income1 $488 million -26%
Adjusted net income1 $498 million -3%
Earnings per ordinary share $1.59 -27%
Adjusted earnings per ordinary share $1.62 -4%
______________________________________________
1attributable to shareholders of Fresenius Medical Care AG & Co. KGaA
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 second quarter and first half
of 2013.
Second Quarter 2013
Revenue
Net revenue for the second quarter of 2013 increased by 5% to $3,613
million (+6% at constant currency) compared to the second quarter of 2012.
Organic revenue growth worldwide was 5%. Dialysis services revenue grew by
5% to $2,743 million (+6% at constant currency) and dialysis product
revenue increased by 6% to $870 million (+5% at constant currency).
North America revenue for the second quarter of 2013 increased by 6% to
$2,375 million. Organic revenue growth was 5%. Dialysis services revenue
grew by 6% to $2,157 million with a same store treatment growth of 4%.
Dialysis product revenue increased by 6% to $218 million.
International revenue increased by 5% to $1,228 million (+6% at constant
currency). Organic revenue growth was 5%. Dialysis services revenue
increased by 4% to $586 million (+7% at constant currency). Dialysis
product revenue increased by 5% to $642 million (+5% at constant currency).
Earnings
Operating income (EBIT) for the second quarter of 2013 decreased by 8% to
$544 million compared to $589 million in the second quarter of 2012. The
operating income for North America for the second quarter of 2013 decreased
by 9% to $394 million compared to $431 million in the second quarter of
2012. In the International segment, the operating income for the second
quarter of 2013 increased by 1% to $209 million compared to $207 million in
the second quarter of 2012.
Adjusted for special items related to the acquisition of Liberty Dialysis
Holdings Inc. and the impact from the budget cuts in the U.S.
(sequestration) that were effectively introduced in April 2013, the
operating income for the second quarter of 2013 decreased by 2% to $555
million compared to $568 million in the second quarter of 2012.
Net interest expense for the second quarter of 2013 was $103 million,
compared to $104 million in the second quarter of 2012.
Net income attributable to shareholders of Fresenius Medical Care AG & Co.
KGaA for the second quarter of 2013 was $263 million, a decrease of 9%
compared to the corresponding number of $289 million for the second quarter
of 2012. Adjusted for the net of tax effects of the special items mentioned
above, net income attributable to shareholders of Fresenius Medical Care AG
& Co. KGaA for the second quarter of 2013 increased by 2% to $272 million
compared to $266 million for the second quarter of 2012.
Income tax expense was $144 million for the second quarter of 2013 which
translates into an effective tax rate of 32.6%. This compares to income tax
expense of $172 million and a tax rate of 34.6% for the second quarter of
2012. Adjusted for the special items mentioned above, the tax rate for the
second quarter of 2013 was 32.1% as compared to 34.4% for the second
quarter of 2012.
Earnings per ordinary share (EPS) for the second quarter of 2013 was $0.86,
a decrease of 10% compared to the corresponding number for the second
quarter of 2012. Adjusted for the special items mentioned above, EPS for
the second quarter of 2013 increased by 2% to $0.89 compared to $0.88 for
the second quarter of 2012. The weighted average number of shares
outstanding for the second quarter of 2013 was approximately 306.3 million
shares, compared to 304.4 million shares for the second quarter of 2012.
The increase in shares outstanding mainly resulted from stock option
exercises in the past twelve months, partially offset by the effect of the
share buy-back program.
Cash flow
In the second quarter of 2013, the company generated $525 million in cash
from operations, an increase of 16% compared to the corresponding figure of
last year and representing 14.5% of revenue.
A total of $173 million was spent for capital expenditures, net of
disposals. Free cash flow before acquisitions was $352 million
(representing 9.8% of revenue) compared to $300 million in the second
quarter of 2012.
A total of $13 million in cash was spent for acquisitions and investments,
net of divestitures. Free cash flow after acquisitions and divestitures was
$339 million, compared to $306 million in the second quarter of 2012.
First Half 2013:
Revenue and Earnings
Net revenue for the first half of 2013 increased by 6% to $7,076 million
(+6% at constant currencies) compared to the first half of 2012. Organic
revenue growth was 5% in the first half of 2013.
Operating income (EBIT) for the first half of 2013 decreased by 5% to
$1,038 million compared to $1,092 million in the first half of 2012.
Adjusted for special items related to the acquisition of Liberty Dialysis
Holdings Inc. and the impact from sequestration the operating income for
the first half of 2013 decreased by 3% to $1,049 million compared to $1,078
million for the first half of 2012.
Net interest expense for the first half of 2013 was $207 million compared
to $203 million in the same period of 2012.
For the first half of 2013, net income attributable to shareholders of
Fresenius Medical Care AG & Co. KGaA was $488 million, down by 26% from the
corresponding number of $660 million for the first half of 2012. Adjusted
for the net of tax effects of the special items mentioned above, net income
attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for
the first half of 2013 decreased by 3% to $498 million compared to $514
million for the first half of 2012.
Income tax expense for the first half of 2013 was $273 million which
translates into an effective tax rate of 32.8%. This compares to income tax
expense of $309 million and a tax rate of 30.1% for the first half of 2012.
Adjusted for the special items mentioned above, the tax rate for the first
half of 2013 was 32.6% as compared to 33.8% for the first half of 2012.
In the first half of 2013, earnings per ordinary share decreased by 27% to
$1.59 compared to $2.17 for the first half of 2012. Adjusted for the
special items mentioned above, EPS for the first half of 2013 decreased by
4% to $1.62 compared to $1.69 for the first half of 2012. The weighted
average number of shares outstanding during the first half of 2013 was
approximately 306.5 million.
Cash Flow
Cash from operations during the first half of 2013 was $841 million
compared to $932 million for the same period in 2012, representing 11.9% of
revenue.
A total of $319 million in cash was spent for capital expenditures, net of
disposals. Free cash flow before acquisitions for the first half of 2013
was $522 million compared to $658 million in the same period in 2012. A
total of $84 million in cash was spent for acquisitions, net of
divestitures. Free cash flow after acquisitions and divestitures was $438
million compared to minus $862 million in the first half of last year.
Please refer to the attachments for a complete overview of the results for
the second quarter and first half of 2013 and the reconciliation of
non-GAAP financial measures included in this release to the most comparable
GAAP financial measures.
Patients - Clinics - Treatments
As of June 30, 2013, Fresenius Medical Care treated 264,290 patients
worldwide, which represents an increase of 3% compared to the previous
year's figure. North America provided dialysis treatments for 168,160
patients, an increase of 3% compared to the corresponding number for 2012.
The International segment provided dialysis treatments for 96,130 patients,
an increase of 4% over the prior year's figure.
As of June 30, 2013, the company operated a total of 3,212 clinics
worldwide, an increase of 3% compared to the corresponding number for 2012.
The number of clinics is comprised of 2,104 clinics in North America (+3%)
and 1,108 clinics in the International segment (+3%).
During the first half of 2013, Fresenius Medical Care delivered
approximately 19.7 million dialysis treatments worldwide. This represents
an increase of 5% compared to the previous year's figure. North America
accounted for 12.5 million treatments, an increase of 5%. The International
segment delivered 7.2 million treatments, an increase of 3%.
Employees
As of June 30, 2013, Fresenius Medical Care had 87,944 employees (full-time
equivalents) worldwide, compared to 86,153 employees at the end of 2012.
Debt/EBITDA ratio
The ratio of debt to earnings before interest, taxes, depreciation and
amortization (EBITDA) decreased from 2.92 at the end of the second quarter
of 2012 to 2.91 at the end of the second quarter of 2013.
Rating
Standard & Poor's rates the company's corporate credit as 'BB+', with a
'positive' outlook. Moody's rates the company's corporate credit as 'Ba1'
with a 'stable' outlook. During the second quarter, Fitch has raised the
outlook from 'stable' to 'positive'. Fitch continues to rate the company's
corporate credit as 'BB+'.
Share buy-back program
Fresenius Medical Care has started the share buy-back program on May 20,
2013. The company intends to repurchase ordinary shares with an aggregate
value of up to EUR385 million (approximately $500 million). The program is
expected to run into the third quarter of 2013. As of June 30, 2013, around
3.58 million shares were repurchased in the amount of approximately EUR190
million (~$249 million).
Conversion of preference shares
At the annual general meeting and in a separate meeting of preference
shareholders the shareholders approved the mandatory conversion of all
preference shares into ordinary shares on a 1:1 basis. This conversion was
finalized on June 28, 2013.
Guidance for 2013 confirmed
The company expects revenue to grow to more than $14.6 billion in 2013,
translating into a growth rate of more than 6%.
In April 2013 budget cuts in the U.S. (sequestration) were effectively
introduced. We do not assume that these measurements will be revised this
year. Therefore the net income guidance range has been confirmed and has
been substantiated for the potential impact from sequestration on our
business performance. Net income attributable to shareholders of Fresenius
Medical Care AG & Co. KGaA is expected to be between $1.1 billion and $1.15
billion in 2013.
For 2013, the company expects to spend around $700 million on capital
expenditures and around $500 million on acquisitions. The debt/EBITDA ratio
is expected to be equal or below 3.0 by the end of 2013.
Rice Powell, chief executive officer of Fresenius Medical Care, commented:
'Our second quarter results show a mixed picture. On the one hand, we have
seen an accelerated growth of our business while on the other hand we were
faced with the general budget cuts in the U.S. which affected our operating
income performance. Nevertheless, we were able to show an earnings increase
in the second quarter on an adjusted basis. To stay ahead of our
competition given the challenging environment, we are rigorously focusing
on our company-wide Global Efficiency Program that we initiated at the
beginning of the year.'
Conference Call
Fresenius Medical Care will hold a conference call to discuss the results
of the second quarter and first half of 2013 on Tuesday, July 30, 2013, at
3.30 p.m. CEDT / 9.30 a.m. EDT. The company invites investors to follow the
live webcast of the call at the company's website www.fmc-ag.com in the
'Investor Relations' section. A replay will be available shortly after the
call.
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 2.3 million
individuals worldwide. Through its network of 3,212 dialysis clinics in
North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius
Medical Care provides dialysis treatments for 264,290 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
---------------------------------------------------------------------
30.07.2013 Dissemination of a Corporate News, transmitted by DGAP - a
company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------
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
---------------------------------------------------------------------
223292 30.07.2013
DGAP-News: Fresenius Medical Care Reports Second Quarter And Half Year 2013 Results
| Source: EQS Group AG