Paris, July 31, 2012
"Press Release"
Results at the end of June 2012:
Stable operating profit
in a deteriorating economic environment
1.5% fall in published revenue
Stable EBITDA (+1.3%)
Slight rise in profit from continuing operations (+2.3%)
Stable debt level
Revenue for the first half of 2012 showed a slight fall of 1.5%.
Revenue increased by 2.2% on a like-for-like basis, with one less business day. The Group recorded a slight increase of 1.9% in the number of acute care stays, adjusted to take into account the missing business day.
EBITDA remained stable, at €145.7 million (+1.3%)
In a deteriorating economic context made worse by the price freeze, and despite its fall in revenue, the Group maintained its EBITDA by keeping good control over its operating costs.
Published profit from continuing operations came to €83.2 million at the end of June 2012, compared to €81.3 million in the first half of last year.
The slight increase in profit from continuing operations was mainly due to the ongoing operational efforts undertaken to reorganize health care services into regional divisions.
In € millions | End of June 2012 | Change | End of June 2011 |
| Revenue | 1,014.1 | -1.5% | 1,029.6 |
| EBITDA | 145.7 | +1.3% | 143.9 |
| Current operating profit | 83.2 | +2.3% | 81.3 |
As a % of revenue | 8.2% | +0.3 points | +7.9% |
Operating profit | 78.1 | 43.3 % | 54.5 |
| Net income attributable to the Group | 28.1 | 102.2% | 13.9 |
Net profit per share (in €) | 0.50 | +100.0% | 0.25 |
Business activity: Fall in published revenue
Consolidated revenue at June 30, 2012 amounted to €1,014.1 million, vs. €1,029.6 million for the same period in 2011.
In € millions - | 2012 End of June | 2011 End of June | 2012/2011 change | Q2 2012 | Q2 2011 | 2012/2011 change |
Ile de France | 407.6 | 405.4 | +0.5% | 200.1 | 201.6 | -0.7% |
| Rhône Alpes | 153.5 | 147.0 | +4.4% | 74.4 | 72.5 | +2.6% |
| Nord | 110.7 | 106.7 | +3.7% | 54.2 | 53.1 | +2.1% |
| Provence Alpes Côte d'Azur | 124.3 | 121.7 | +2.1% | 60.7 | 60.3 | +0.7% |
Bourgogne | 57.5 | 55.4 | +3.8% | 27.7 | 27.2 | +1.8% |
Other regions | 160.5 | 153.9 | +4.3% | 79.5 | 76.5 | +3.9% |
| Other activities (1) | -- | 39.5 | -100.0% | -- | 18.4 | -100.00% |
| Published revenue | 1,014.1 | 1,029.6 | -1.5% | 496.6 | 509.6 | -2.6% |
Of which: - Organic | 1,012.0 | 990.1 | +2.2% | 494.8 | 491.2 | +0.7% |
inc. organic France | 1,000.0 | 977.8 | +2.3% | 488.9 | 484.8 | +0.8% |
inc. organic Italy | 12.0 | 12.3 | -2.4% | 5.9 | 6.4 | -7.8% |
Change in consolidation scope | 2.1 | 39.5 | -- | 1.8 | 18.4 | -- |
(1) "Other Activities" include non-strategic activities whose assets have been sold
Hospital Care and Services in France recorded organic growth of 2.3% in the first half of 2012, attributable to a volume/mix effect (with one less business day).
In France, changes in scope mainly relate to the sales of the Vitry, Convert, Aguilera and Sourdille clinics in 2011.
In the first half of 2012, acute care revenue in the Group's establishments increased by 1.1% compared to the same period in 2011, with 478,000 stays. This increase was driven by surgery (+1.2%) and medicine (+2.5%), with obstetrics recording a small decrease of 3.7%.
In connection with the public service missions managed by the Group, the number of emergency care treatments rose by 1.7% in the first half of 2012, representing a total of 194,000 patient visits.
In the area of mental health, the Group saw a 3.6% increase in invoiced days in the first half of 2012 (to a total of 405,000 days) achieved in part through continued higher occupancy rates, but also attributable in particular to the steadily increasing number of openings and expansions completed in the Group's establishments.
The opening of two after-care and rehabilitation centers in the first half of the year (Montévrain and Champigny), a mental health clinic (Océane in Le Havre) and the Hôpital Privé de Villeneuve d'Ascq in June, which demonstrate the significant investments made by the Group to continue expanding its healthcare provision in France, have not yet had an overall positive impact on the volume of activity but offer good prospects for the second half of the year.
The Group's organic revenue in Italy is generated solely by the Omegna hospital, which reported a drop in results in the first half of 2012.
Results:
1) Stable profit from continuing operations
Despite the fall in published revenue (- 1.5%), the Group generated a stable EBITDA (1.3%), mainly thanks to effective control over the payroll expense originating mainly in the finalization of the restructuring of head office and regional management support functions in late 2011.
The published profit from continuing operations amounted to €83.2 million, which represented a slight increase of 2.3%. It benefited from the operational efforts following the restructuring of the Group's healthcare provision in our 21 regional divisions.
2) Rise in operating profit and net profit for the period
Operating profit amounted to €78.1 million in the first half of 2012, compared to €54.5 million in the same period last year, that was hindered by the restructuring costs incurred by the Group reorganization.
The rise in profit for the period is closely tied to the rise in operating profit.
Debt: stable net financial debt per IFRS at €847.2 million as of June 30, 2012 compared to €854.4 million at the end of 2011.
Net financial debt per IFRS remained stable compared to its position as of December 31, 2011, owing to strict control of our investments.
In a deteriorating economic environment, the Group is maintaining a prudent outlook over its prospects for the second half of the year.
The accounts have undergone a limited examination by the auditors
Générale de Santé, listed on the Euronext Paris Eurolist (formerly known as the Premier Marché) since June 2001, is included in the Midcac index. The largest private healthcare and services group, Générale de Santé has 19,400 employees, including 7,000 nurses and 4,100 care staff, in 106 private establishments, clinics and hospitals. With 5,050 practitioners, it represents the leading independent medical community in France. A major player in hospitalization, Générale de Santé provides a comprehensive range of healthcare services spanning acute care, oncology, after-care and rehabilitation, mental health and home medical services. Générale de Santé has developed a unique healthcare offering combining quality and safety in care, efficient organization, and human quality. The Group offers comprehensive care with personalized support before, during, and after hospitalization, taking into account all aspects of the patient's needs; it is also operates in the public health service and national healthcare network.
ISIN code and Euronext Paris: FR0000044471
Website: www.generale-de-sante.fr
Today's conference call in English
At 6.30 pm (Paris time) - Dial the following numbers
From France: +33 (0) 1 70 99 32 02
From Italy: +39 (0) 0645210 8002
From the UK: +44 (0) 207 154 2667
From the US: +1 (0) 480 248 5061
Next meeting:
Publication of 3rd quarter results, October 29, 2012
| Investor/analyst relations: Arnaud Jeudy Tel. + 33 (0)1 53 23 14 89 a.jeudy@gsante.fr | Press Relations: Martine Esquirou Tel. + 33 (0)1 53 23 12 62 m.esquirou@gsante.fr Guillaume Jubin Tel. +33 (0)1 44 14 99 99 g.jubin@tilder.com |
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | |||
| 1st half | |||
| ( in million euros ) | 2011 | 2011 | 2012 |
| TURNOVER | 1,955.0 | 1,029.6 | 1,014.1 |
| Personnel expenses and profit sharing | (874.4) | (455.3) | (448.7) |
| Purchased consumables | (374.0) | (196.6) | (193.2) |
| Other operating income and expenses | (226.8) | (116.6) | (105.9) |
| Taxes and duties | (81.7) | (42.6) | (43.2) |
| Rents | (149.2) | (74.6) | (77.4) |
| EBITDA | 248.9 | 143.9 | 145.7 |
| Depreciation | (123.5) | (62.6) | (62.5) |
| Current operating profit | 125.4 | 81.3 | 83.2 |
| Restructuring costs | (43.9) | (29.4) | (3.0) |
| Result of the management of real estate and financial assets | 19.0 | 2.6 | (2.1) |
| Impairment of goodwill | (50.2) | -- | -- |
| Other non current income and expenses | (75.1) | (26.8) | (5.1) |
| Operating profit | 50.3 | 54.5 | 78.1 |
| Gross interest expenses | (46.9) | (23.4) | (17.2) |
| Income from cash and cash equivalents | 0.8 | 0.5 | 0.3 |
| Net interest expenses | (46.1) | (22.9) | (16.9) |
| Other financial income | 0.6 | 0.6 | 0.1 |
| Other financial expenses | (5.2) | (2.7) | (3.9) |
| Other financial income and expenses | (4.6) | (2.1) | (3.8) |
| Corporate income tax | (25.3) | (12.7) | (26.1) |
| Share of net profit of associates | -- | -- | -- |
| NET PROFIT FOR THE PERIOD | (25.7) | 16.8 | 31.3 |
| Revenues and expenses recognised directly as equity | |||
| - Retirement commitments | 4.4 | --- | --- |
| - Change in fair value of hedging financial instruments | 3.2 | 11.1 | (1.5) |
| - Translation differential | -- | --- | --- |
| - Income tax on other comprehensive income | (2.5) | (3.8) | 0.5 |
| Results recognised directly as equity | 5.1 | 7.3 | (1.0) |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | (20.6) | 24.1 | 30.3 |
| 1st half | |||
| PROFIT ATTRIBUTABLE TO (in million euros) | 2011 | 2011 | 2012 |
| Group's share of net earnings | (28.5) | 13.9 | 28.1 |
| Non-controlling interests | 2.8 | 2.9 | 3.2 |
| NET PROFIT FOR THE PERIOD | (25.7) | 16.8 | 31.3 |
| NET EARNINGS PER SHARE (in euros) | (0.50) | 0.25 | 0.50 |
| NET DILUTED EARNINGS PER SHARE (in euros) | (0.50) | 0.25 | 0.50 |
| 1st half | |||
| TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO (in million euros) | 2011 | 2011 | 2012 |
| Group's comprehensive income for the period | (23.4) | 21.2 | 27.1 |
| Non-controlling interests | 2.8 | 2.9 | 3.2 |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | (20.6) | 24.1 | 30.3 |
| CONSOLIDATED BALANCE SHEET - ASSETS | |||
| ( in million euros ) | 12-31-2010 | 12-31-2011 | 06-30-2012 |
| Goodwill | 641.6 | 569.0 | 571.8 |
| Other intangible fixed assets | 20.4 | 18.6 | 19.0 |
| Tangible fixed assets | 896.6 | 863.5 | 850.0 |
| Investments in associates | 0.1 | 0.1 | 0.1 |
| Other long-term investments | 29.4 | 29.2 | 34.0 |
| Deferred tax assets | 54.2 | 48.4 | 43.2 |
| NON CURRENT ASSETS | 1,642.3 | 1,528.8 | 1 518.1 |
| Inventories | 35.4 | 34.6 | 33.6 |
| Trade and other receivables | 121.8 | 120.3 | 146.8 |
| Other current assets | 136.2 | 155.5 | 155.9 |
| Current tax assets | 7.5 | 6.1 | 1.3 |
| Current financial assets | 11.3 | 7.3 | 4.9 |
| Cash and cash equivalents | --- | --- | --- |
| Assets held for sale | 1.5 | 3.7 | 1.0 |
| CURRENT ASSETS | 313.7 | 327.5 | 343.5 |
| TOTAL ASSETS | 1,956.0 | 1,856.3 | 1,861.6 |
| CONSOLIDATED BALANCE SHEET - LIABILITIES AND EQUITY | |||
| ( in million euros ) | 12-31-2010 | 12-31-2011 | 06-30-2012 |
| Share capital | 42.2 | 42.3 | 42.3 |
| Additional paid-in capital | 62.5 | 64.6 | 64.6 |
| Consolidated reserves | 298.7 | 283.5 | 211.7 |
| Group's share of net profit | 35.0 | (28.5) | 28.1 |
| Group's share of equity | 438.4 | 361.9 | 346.7 |
| Non-controlling interests | 10.7 | 12.4 | 14.6 |
| TOTAL SHAREHOLDERS' EQUITY | 449.1 | 374.3 | 361.3 |
| Borrowings and financial debts | 756.2 | 688.1 | 654.9 |
| Provisions for retirement and other employee benefits | 32.9 | 29.7 | 31.8 |
| Non-current provisions | 49.5 | 42.2 | 36.7 |
| Other long term liabilities | 32.1 | 32.9 | 29.4 |
| Deferred tax liabilities | 77.1 | 78.9 | 75.4 |
| NON CURRENT LIABILITIES | 947.8 | 871.8 | 828.2 |
| Current provisions | 11.4 | 11.2 | 11.1 |
| Accounts payable | 127.8 | 128.1 | 163.6 |
| Other current liabilities | 297.2 | 305.7 | 299.2 |
| Tax liabilities due | 3.5 | 2.0 | 12.3 |
| Short-term borrowings | 73.8 | 137.5 | 183.5 |
| Bank overdraft | 45.4 | 25.7 | 2.4 |
| Liabilities related to assets held for sale | -- | --- | ---- |
| CURRENT LIABILITIES | 559.1 | 610.2 | 672.1 |
| TOTAL EQUITY AND LIABILITIES | 1,956.0 | 1,856.3 | 1,861.6 |
| consolidated statement of changes in equity | ||||||||
| ( in million euros ) | SHARE CAPITAL | ADDITION AL PAID IN CAPITAL | RESERVES | RESULTS RECOGNISED DIRECTLY AS EQUITY | TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | GROUP'S SHARE OF EQUITY | NON CONTROLLING INTERESTs | SHAREHOLDERS' EQUITY |
| Shareholders' equity at December 31, 2010 | 42.2 | 62.5 | 316.0 | (17.3) | 35.0 | 438.4 | 10.7 | 449.1 |
| Capital increase (including net fees) | 0.1 | 2.1 | -- | -- | -- | 2.2 | -- | 2.2 |
| Treasury shares | -- | -- | -- | -- | -- | -- | -- | -- |
| Stocks options and free share | -- | -- | 1.1 | -- | -- | 1.1 | -- | 1.1 |
| Prior year appropriation of earnings | -- | -- | 35.0 | -- | (35.0) | -- | -- | -- |
| Distribution of dividends | -- | -- | (56.4) | -- | -- | (56.4) | (1.4) | (57.8) |
| Change in consolidation scope | -- | -- | -- | -- | -- | -- | 0.3 | 0.3 |
| Total comprehensive income for the period | -- | -- | -- | 5.1 | (28.5) | (23.4) | 2.8 | (20.6) |
| Shareholders' equity at December 31, 2011 | 42.3 | 64.6 | 295.7 | (12.2) | (28.5) | 361.9 | 12.4 | 374.3 |
| Capital increase (including net fees) | -- | -- | -- | -- | -- | -- | -- | -- |
| Treasury shares | -- | -- | -- | -- | -- | -- | -- | -- |
| Stocks options and free share | -- | -- | -- | -- | -- | -- | -- | -- |
| Prior year appropriation of earnings | -- | -- | (28.5) | -- | 28.5 | -- | -- | -- |
| Distribution of dividends | -- | -- | (42.3) | -- | -- | (42.3) | (1.1) | (43.4) |
| Change in consolidation scope | -- | -- | -- | -- | -- | -- | 0.1 | 0.1 |
| Total comprehensive income for the period | -- | -- | -- | (1.0) | 28.1 | 27.1 | 3.2 | 30.3 |
| Shareholders' equity at June 30, 2012 | 42.3 | 64.6 | 224.9 | (13.2) | 28.1 | 346.7 | 14.6 | 361.3 |
| 12-31-2010 | 12-31-2011 | 06-30-2012 | ||||||
| Dividends per share (in euros including pre-distribution) | 1.25 | 1.00 | 0.75 | |||||
| Number of treasury shares | 419 005 | 25 301 | 25 301 | |||||
| revenues and expenses recognised directly as equity | |||||
| ( in million euros ) | 12-31-2010 | Income and expenses 2011 | 12-31-2011 | Income and expenses 1st half 2012 | 06-30-2012 |
| Translation differential | (0.3) | -- | (0.3) | -- | (0.3) |
| Retirement commitments | (4.3) | 3.1 | (1.2) | -- | (1.2) |
| Fair value of hedging financial instruments | (12.7) | 2.0 | (10.7) | (1.0) | (11.7) |
| Results recognised directly as equity (Group's share) | (17.3) | 5.1 | (12.2) | (1.0) | (13.2) |
| CONSOLIDATED CASH FLOW STATEMENT | |||
| ( in million euros ) | 2011 | 1st half | |
| 2011 | 2012 | ||
| Total net consolidated profit | (25.7) | 16.8 | 31.3 |
| Depreciation | 123.5 | 62.6 | 62.5 |
| Other non current income and expenses | 75.1 | 26.8 | 5.1 |
| Share of net profit of associates | -- | -- | -- |
| Other financial income and expenses | 4.6 | 2.1 | 3.8 |
| Net interest expenses | 46.1 | 22.9 | 16.9 |
| Corporate income tax | 25.3 | 12.7 | 26.1 |
| EBITDA | 248.9 | 143.9 | 145.7 |
| Non cash items including provisions and reversals (transactions with no cash effect) | 1.0 | 2.1 | -- |
| Other income and expenses paid | (44.5) | (21.8) | (12.4) |
| Changes in other long term assets and liabilities | (2.6) | 0.5 | (1.6) |
| Cash flow before net interest expenses & taxes | 202.8 | 124.7 | 131.7 |
| Corporate income tax paid | (23.5) | (7.9) | (8.9) |
| Change in working capital requirements | (6.9) | (36.5) | 0.3 |
| NET CASH FROM OPERATING ACTIVITIES : (A) | 172.4 | 80.3 | 123.1 |
| Purchase of property, plant & equipment and intangible assets | (60.5) | (26.2) | (32.5) |
| Proceeds from sale of tangible and intangible assets | 7.5 | 7.5 | -- |
| Purchase of financial assets | (0.6) | (0.5) | (5.7) |
| Proceeds from the disposal of financial assets | 40.7 | 16.9 | (0.5) |
| Dividends from non consolidated companies | 0.6 | 0.6 | 0.1 |
| NET CASH USED FOR INVESTING ACTIVITIES : (B) | (12.3) | (1.7) | (38.6) |
| Capital increase: (a) | 2.2 | 2.2 | -- |
| Capital increase performed by subsidiaries subscribed to by third parties (b) | --- | -- | -- |
| Exceptional distribution of additional paid-in capital (c) | --- | -- | -- |
| Dividends paid to GDS shareholders: (d) | (56.4) | -- | -- |
| Dividends paid to minority interests of consolidated companies: (e) | (1.4) | (1.2) | (1.1) |
| Net interest expense paid : (f) | (46.1) | (22.9) | (16.9) |
| Debt issue costs : (g) | --- | -- | -- |
| Cash flow before repayment of borrowings: (h) = (A+B + a + b + c + d + e + f + g) | 58.4 | 56.7 | 66.5 |
| Increase in borrowings : (i) | 50.0 | 0.7 | 25.0 |
| Repayment of borrowings : (j) | (88.7) | (35.9) | (68.2) |
| NET CASH USED FOR FINANCING ACTIVITIES: (C) = a + b + c + d + e + f + g + i + j | (140.4) | (57.1) | (61.2) |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS: ( A + B + C ) | 19.7 | 21.5 | 23.3 |
| Reclassification of the cash of the assets held for sale | -- | -- | -- |
| Cash and cash equivalents at beginning of period | (45.4) | (45.4) | (25.7) |
| Cash and cash equivalents at end of period | (25.7) | (23.9) | (2.4) |
| Net indebtedness at beginning of period | 871.4 | 871.4 | 854.4 |
| Cash flow before repayment of borrowings: (h) | (58.4) | (56.7) | (66.5) |
| Capitalization of financial leases | 38.2 | 11.3 | 11.8 |
| Loan issue charges fixed assets | 3.5 | 1.8 | 1.8 |
| Assets held for sale | 2.3 | -- | 1.0 |
| Fair value of financial hedging instruments | (2.0) | (7.3) | 1.0 |
| Dividends to pay | -- | 56.4 | 42.3 |
| Change in scope of consolidation and other | (0.6) | 0.1 | 1.4 |
| Net indebtedness at end of period | 854.4 | 877.0 | 847.2 |
