Fresenius Medical Care AG & Co. KGaA Reports Very Strong Fourth Quarter and Full Year Results; Another Record Year expected for 2012
DGAP-News: Fresenius Medical Care AG & Co. KGaA / Key word(s): Final
Results/Forecast
Fresenius Medical Care AG & Co. KGaA Reports Very Strong Fourth
Quarter and Full Year Results; Another Record Year expected for 2012
21.02.2012 / 08:05
---------------------------------------------------------------------
Contact: Fresenius Medical Care AG & Co. KGaA
Oliver Maier Else-Kröner-Str.1
Phone: + 49 6172 609 2601 61352 Bad Homburg
Fax: + 49 6172 609 2301 Germany
www.fmc-ag.com
North America:
Terry L. Morris
Phone: + 1 800 948 2538
Fax: + 1 615 345 5605
E-mail: ir@fmc-ag.com February 21, 2012
Investor News
Fresenius Medical Care Reports Very Strong Fourth
Quarter and Full Year Results; Another Record Year expected for 2012
4th Quarter 2011 Summary:
^
Net revenue $3,323 +5%
million
Operating income (EBIT) $587 +9%
million
Net income attributable to shareholders ofFresenius $310 +14%
Medical Care AG & Co. KGaA million
Earnings per share $1.02 +14%
°
Full Year 2011 Summary:
^
Net revenue $12,795 +6%
million
Operating income (EBIT) $2,075 +8%
million
Net income attributable to shareholders ofFresenius $1,071 +9%
Medical Care AG & Co. KGaA million
Earnings per share $3.54 +9%
Dividend Proposal Ordinary share EUR0.69 +6%
Preference share EUR0.71 +6%
°
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
of 2011.
4th Quarter 2011:
Revenue
Net revenue for the fourth quarter of 2011 increased by 5% to $3,323
million (+6% at constant currency) compared to the fourth quarter of 2010.
Organic revenue growth worldwide was 3%. Dialysis services revenue grew by
3% to $2,435 million (+4% at constant currency) and dialysis product
revenue increased by 9% to $888 million (+10% at constant currency).
North America revenue for the fourth quarter of 2011 increased by 1% to
$2,096 million including the impact of the new Medicare end-stage renal
disease prospective payment system in the United States. Dialysis services
revenue increased by 1% to $1,882 million with a same market growth of 3%.
Average revenue per treatment for U.S. clinics decreased to $351 in the
fourth quarter of 2011 compared to $355 for the corresponding quarter in
2010 reflecting the implementation of the new prospective payment system.
Dialysis product revenue increased by 2% to $214 million, mainly as a
result of increased sales of hemodialysis products partially offset by
lower pricing of renal pharmaceuticals.
International revenue increased by 12% to $1,223 million (+14% at constant
currency). Organic revenue growth was 8%. Dialysis services revenue
increased by 13% to $553 million (+16% at constant currency). Dialysis
product revenue increased by 11% to $669 million and increased by 12% at
constant currency, mainly driven by higher sales of peritoneal dialysis
products, dialysis machines, dialyzers, products for acute care treatments
and renal pharmaceuticals.
Earnings
Operating income (EBIT) for the fourth quarter of 2011 increased by 9% to
$587 million compared to $539 million in the fourth quarter of 2010. This
resulted in an operating margin of 17.7% for the fourth quarter of 2011
compared to 17.0% for the corresponding quarter in 2010.
In North America, the operating margin increased from 17.9% in the fourth
quarter of 2010 to 19.1% in the fourth quarter of 2011. This increase was
favorably influenced by the development of pharmaceutical costs. Average
costs per treatment for U.S. clinics decreased to $279 in the fourth
quarter of 2011 compared to $287 for the corresponding quarter in 2010.
In the International segment, the operating margin increased from 18.0% to
18.7% mainly due to favorable exchange rate effects and business growth in
Asia-Pacific.
Net interest expense for the fourth quarter of 2011 was $82 million
compared to $74 million in the fourth quarter of 2010. This development was
mainly attributable to the higher level of financial debt as a result of
the issuance of various tranches of senior notes over the course of 2011.
Income tax expense was $165 million for the fourth quarter of 2011 compared
to $169 million in the fourth quarter of 2010. The effective tax rate
decreased to 32.7% from 36.3%.
Net income attributable to shareholders of Fresenius Medical Care AG & Co.
KGaA for the fourth quarter of 2011 was $310 million, an increase of 14%
compared to the corresponding quarter of 2010.
Earnings per share (EPS) for the fourth quarter of 2011 rose by 14% to
$1.02 per ordinary share compared to $0.90 for the fourth quarter of 2010.
The weighted average number of shares outstanding for the fourth quarter of
2011 was approximately 303.9 million shares compared to 302.1 million
shares for the fourth quarter of 2010. The increase in shares outstanding
resulted from stock option exercises in the past 12 months.
Cash flow
In the fourth quarter of 2011, the company generated $497 million in cash
from operations, an increase of 46% compared to the corresponding figure
last year and representing approximately 15% of revenue. The cash flow
generation was supported by increased earnings, a favorable development of
days sales outstanding (DSO) compared to the fourth quarter of 2010 and
lower income tax payments.
A total of $191 million in cash was spent for capital expenditures, net of
disposals. Free cash flow before acquisitions was $306 million compared to
$173 million in the fourth quarter of 2010. A total of $604 million in cash
was spent for acquisitions, net of divestitures. Free cash flow after
acquisitions and divestitures was minus $298 million compared to minus $75
million in the fourth quarter of 2010.
Full Year 2011:
Revenue and Earnings
Net revenue for the full year 2011 increased by 6% to $12,795 million (+5%
at constant currency) compared to the full year 2010 and in line with our
guidance. Organic revenue growth was 2% in the full year 2011.
Operating income (EBIT) for the full year 2011 increased by 8% to $2,075
million compared to $1,924 million in 2010, resulting in an operating
margin of 16.2% compared to 16.0% for the full year 2010.
Net interest expense for the full year 2011 was $297 million compared to
$280 million in the same period of 2010.
Income tax expense for the full year 2011 was $601 million compared to $578
million in the same period in 2010, reflecting effective tax rates of 33.8%
and 35.2%, respectively.
For the full year 2011, net income attributable to shareholders of
Fresenius Medical Care AG & Co. KGaA was $1,071 million, up by 9% from the
full year 2010 and in line with our guidance.
In the full year 2011, earnings per ordinary share rose by 9% to $3.54. The
weighted average number of shares outstanding during the full year 2011 was
approximately 303.0 million.
Cash Flow
Cash from operations during 2011 was $1,446 million compared to $1,368
million for the same period in 2010, representing approximately 11% of
revenue and above our targeted 10% level.
A total of $570 million in cash was spent for capital expenditures, net of
disposals. Free cash flow before acquisitions for the full year 2011 was
$876 million compared to $861 million in the same period in 2010. A total
of $1,775 million in cash was spent for acquisitions, net of divestitures.
Free cash flow after acquisitions and divestitures was minus $899 million
compared to $243 million in the last year.
Please refer to the attachments for a complete overview on the fourth
quarter and the full year 2011 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, 2011, Fresenius Medical Care treated 233,156 patients
worldwide, which represents a 9% increase compared to the previous year's
figure. North America provided dialysis treatments for 142,319 patients, an
increase of 3%. Including 21 clinics managed by Fresenius Medical Care
North America, the number of patients in North America was 143,679. The
International segment provided dialysis treatments to 90,837 patients, an
increase of 18% over the prior year's figure.
As of December 31, 2011, the company operated a total of 2,898 clinics
worldwide, which represents a 6% increase compared to the previous year's
figure. The number of clinics is comprised of 1,838 clinics in North
America (1,859 including managed clinics), and 1,060 clinics in the
International segment, representing an increase of 2% and 13%,
respectively.
During the full year 2011, Fresenius Medical Care delivered approximately
34.39 million dialysis treatments worldwide. This represents an increase of
9% compared to last year's figure. North America accounted for 21.61
million treatments, an increase of 4%. The International segment delivered
12.78 million treatments, an increase of 18%.
Employees
As of December 31, 2011, Fresenius Medical Care had 79,159 employees
(full-time equivalents) worldwide compared to 73,452 employees at the end
of 2010. This increase of more than 5,700 employees is due to overall
growth in the company's business and acquisitions.
Dividend
The company intends to continue its earnings-driven dividend policy. At the
Annual General Meeting to be held on May 10, 2012, shareholders will be
asked to approve a dividend of EUR0.69 per ordinary share, an increase of
6% from 2010 (EUR0.65). For the 15th 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 2.38 at the end of 2010 to 2.69 at the
end of 2011. The debt/EBITDA ratio at the end of the third quarter 2011 was
2.55.
Rating
Standard & Poor's Ratings Services 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, and Fitch rates the company's
corporate credit as 'BB+' with a 'stable' outlook. For further information
on Fresenius Medical Care's credit ratings, maturity profiles and credit
instruments, please visit our website at www.fmc-ag.com / Investor
Relations / Credit Relations.
Vifor Fresenius Medical Care Renal Pharma Ltd. Formation Completed
After the recent clearance by the European Union antitrust commissions, the
formation of Vifor Fresenius Medical Care Renal Pharma Ltd. was completed
globally on November 1, 2011.
Acquisition of American Access Care Completed
The American Accesss Care (AAC) acquisition was closed effective October 1,
2011. AAC operates 28 freestanding out-patient centers primarily dedicated
to serving vascular access needs of dialysis patients. The acquired
operations will add approximately $175 million in annual revenue and are
expected to be accretive to earnings in the first year after closing of the
transaction.
Acquisition of Liberty Dialysis Holdings, Inc.
The acquisition of Liberty Dialysis Holdings, Inc. is on schedule and is
still expected to close in the first quarter of 2012.
Issuance of senior notes
In January 2012, Fresenius Medical Care successfully completed the largest
placement of senior notes in the history of the company. Proceeds from the
offering of three tranches of U.S. dollar and euro-denominated senior
unsecured notes amounting to approximately $1.81 billion are intended to be
used for acquisitions, including the acquisition of Liberty Dialysis
Holdings, Inc., to refinance indebtedness and for general corporate
purposes. The coupon for the dollar-denominated senior notes in the
principal amount of $800 million due 2019 is 5.625% and the coupon for the
dollar-denominated senior notes in the principal amount of $700 million due
2022 is 5.875%. The coupon for the euro-denominated senior notes in the
principal amount of EUR250 million due 2019 is 5.25%. All tranches were
issued at par.
Issuance of floating rate senior notes
In October 2011, Fresenius Medical Care issued euro-denominated floating
rate senior notes in the principal amount of EUR100 million, due 2016. The
coupon is equal to the three-month Euribor rate plus 350 basis points.
Outlook for 2012
For the year 2012, the company expects revenue to grow to around $14
billion. This takes into account a change in US-GAAP1) in the presentation
of U.S. dialysis service revenue which will be shown net of the provision
for bad debt. Based on the comparable revenue for 2011 of $12,571 million
the revenue outlook represents an increase of 11% and between 13% and 15%
based on constant currencies.
Net income is expected to grow to around $1.3 billion and net income
attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is
expected to grow to around $1.14 billion with operating margins forecast to
increase to approximately 16.9%.
For 2012, the company expects to spend around $700 million on capital
expenditures and around $1.8 billion on acquisitions. The debt/EBITDA ratio
is expected to be below 3.0 by the end of 2012.
'We are very pleased to have achieved another year of record results in
2011. In the past 15 years, since the foundation of the company, Fresenius
Medical Care has been able to quadruple its sales and to increase its
earnings tenfold. With our strong performance in 2011 we are proposing to
deliver our fifteenth consecutive dividend increase to our shareholders',
said Ben Lipps, chief executive officer of Fresenius Medical Care. 'We
successfully handled the implementation of the new reimbursement system in
the U.S. and have made good progress on our growth initiatives. We are
confident that we will continue our strong performance targeting another
record year in 2012.'
1) First time adoption of Accounting Standards Codification 954-605 in 2012
(Patient service revenue less provision for bad debt).
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 of 2011 on Tuesday, February 21, 2012, at 3:15 p.m. CET / 9:15 a.m.
EDT. 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.
About Fresenius Medical Care
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 2.1 million
individuals worldwide. Through its network of 2,898 dialysis clinics in
North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius
Medical Care provides dialysis treatment to 233,156 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.
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.
1 Constant currency
Changes in revenue include the impact of changes in foreign currency
exchange rates. We use the non-GAAP financial measure 'at constant exchange
rates' in our filings to show changes in our revenue without giving effect
to period-to-period currency fluctuations. Under U.S. GAAP, revenues
received in local (non-U.S. dollar) currency are translated into U.S.
dollars at the average exchange rate for the period presented. When we use
the term 'constant currency', it means that we have translated local
currency revenues for the current reporting period into U.S. dollars using
the same average foreign currency exchange rates for the conversion of
revenues into U.S. dollars that we used to translate local currency
revenues for the comparable reporting period of the prior year. We then
calculate the change, as a percentage, of the current period revenues using
the prior period exchange rates versus the prior period revenues. This
resulting percentage is a non-GAAP measure referring to a change as a
percentage 'at constant exchange rates'.
We believe that revenue growth is a key indication of how a company is
progressing from period to period and that the non-GAAP financial measure
constant currency is useful to investors, lenders, and other creditors
because such information enables them to gauge the impact of currency
fluctuations on its revenue from period to period. However, we also believe
that data on constant currency period-over-period changes have limitations,
particularly as the currency effects that are eliminated could constitute a
significant element of our revenue and could significantly impact our
performance. We therefore limit our use of constant currency
period-over-period changes to a measure for the impact of currency
fluctuations on the translation of local currency revenue into U.S.
dollars. We do not evaluate our results and performance without considering
both constant currency period-over-period changes in non-U.S. GAAP revenue
on the one hand and changes in revenue prepared in accordance with U.S.
GAAP on the other. We caution the readers of this report to follow a
similar approach by considering data on constant currency
period-over-period changes only in addition to, and not as a substitute for
or superior to, changes in revenue prepared in accordance with U.S. GAAP.
We present the fluctuation derived from U.S. GAAP revenue next to the
fluctuation derived from non-GAAP revenue. Because the reconciliation is
inherent in the disclosure, we believe that a separate reconciliation would
not provide any additional benefit.
End of Corporate News
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company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Language: English
Company: Fresenius Medical Care AG & Co. KGaA
Else-Kröner-Straße 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
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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157461 21.02.2012
DGAP-News: Fresenius Medical Care AG & Co. KGaA / Key word(s): Final
Results/Forecast
Fresenius Medical Care AG & Co. KGaA Reports Very Strong Fourth
Quarter and Full Year Results; Another Record Year expected for 2012
21.02.2012 / 08:05
---------------------------------------------------------------------
Contact: Fresenius Medical Care AG & Co. KGaA
Oliver Maier Else-Kröner-Str.1
Phone: + 49 6172 609 2601 61352 Bad Homburg
Fax: + 49 6172 609 2301 Germany
www.fmc-ag.com
North America:
Terry L. Morris
Phone: + 1 800 948 2538
Fax: + 1 615 345 5605
E-mail: ir@fmc-ag.com February 21, 2012
Investor News
Fresenius Medical Care Reports Very Strong Fourth
Quarter and Full Year Results; Another Record Year expected for 2012
4th Quarter 2011 Summary:
^
Net revenue $3,323 +5%
million
Operating income (EBIT) $587 +9%
million
Net income attributable to shareholders ofFresenius $310 +14%
Medical Care AG & Co. KGaA million
Earnings per share $1.02 +14%
°
Full Year 2011 Summary:
^
Net revenue $12,795 +6%
million
Operating income (EBIT) $2,075 +8%
million
Net income attributable to shareholders ofFresenius $1,071 +9%
Medical Care AG & Co. KGaA million
Earnings per share $3.54 +9%
Dividend Proposal Ordinary share EUR0.69 +6%
Preference share EUR0.71 +6%
°
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
of 2011.
4th Quarter 2011:
Revenue
Net revenue for the fourth quarter of 2011 increased by 5% to $3,323
million (+6% at constant currency) compared to the fourth quarter of 2010.
Organic revenue growth worldwide was 3%. Dialysis services revenue grew by
3% to $2,435 million (+4% at constant currency) and dialysis product
revenue increased by 9% to $888 million (+10% at constant currency).
North America revenue for the fourth quarter of 2011 increased by 1% to
$2,096 million including the impact of the new Medicare end-stage renal
disease prospective payment system in the United States. Dialysis services
revenue increased by 1% to $1,882 million with a same market growth of 3%.
Average revenue per treatment for U.S. clinics decreased to $351 in the
fourth quarter of 2011 compared to $355 for the corresponding quarter in
2010 reflecting the implementation of the new prospective payment system.
Dialysis product revenue increased by 2% to $214 million, mainly as a
result of increased sales of hemodialysis products partially offset by
lower pricing of renal pharmaceuticals.
International revenue increased by 12% to $1,223 million (+14% at constant
currency). Organic revenue growth was 8%. Dialysis services revenue
increased by 13% to $553 million (+16% at constant currency). Dialysis
product revenue increased by 11% to $669 million and increased by 12% at
constant currency, mainly driven by higher sales of peritoneal dialysis
products, dialysis machines, dialyzers, products for acute care treatments
and renal pharmaceuticals.
Earnings
Operating income (EBIT) for the fourth quarter of 2011 increased by 9% to
$587 million compared to $539 million in the fourth quarter of 2010. This
resulted in an operating margin of 17.7% for the fourth quarter of 2011
compared to 17.0% for the corresponding quarter in 2010.
In North America, the operating margin increased from 17.9% in the fourth
quarter of 2010 to 19.1% in the fourth quarter of 2011. This increase was
favorably influenced by the development of pharmaceutical costs. Average
costs per treatment for U.S. clinics decreased to $279 in the fourth
quarter of 2011 compared to $287 for the corresponding quarter in 2010.
In the International segment, the operating margin increased from 18.0% to
18.7% mainly due to favorable exchange rate effects and business growth in
Asia-Pacific.
Net interest expense for the fourth quarter of 2011 was $82 million
compared to $74 million in the fourth quarter of 2010. This development was
mainly attributable to the higher level of financial debt as a result of
the issuance of various tranches of senior notes over the course of 2011.
Income tax expense was $165 million for the fourth quarter of 2011 compared
to $169 million in the fourth quarter of 2010. The effective tax rate
decreased to 32.7% from 36.3%.
Net income attributable to shareholders of Fresenius Medical Care AG & Co.
KGaA for the fourth quarter of 2011 was $310 million, an increase of 14%
compared to the corresponding quarter of 2010.
Earnings per share (EPS) for the fourth quarter of 2011 rose by 14% to
$1.02 per ordinary share compared to $0.90 for the fourth quarter of 2010.
The weighted average number of shares outstanding for the fourth quarter of
2011 was approximately 303.9 million shares compared to 302.1 million
shares for the fourth quarter of 2010. The increase in shares outstanding
resulted from stock option exercises in the past 12 months.
Cash flow
In the fourth quarter of 2011, the company generated $497 million in cash
from operations, an increase of 46% compared to the corresponding figure
last year and representing approximately 15% of revenue. The cash flow
generation was supported by increased earnings, a favorable development of
days sales outstanding (DSO) compared to the fourth quarter of 2010 and
lower income tax payments.
A total of $191 million in cash was spent for capital expenditures, net of
disposals. Free cash flow before acquisitions was $306 million compared to
$173 million in the fourth quarter of 2010. A total of $604 million in cash
was spent for acquisitions, net of divestitures. Free cash flow after
acquisitions and divestitures was minus $298 million compared to minus $75
million in the fourth quarter of 2010.
Full Year 2011:
Revenue and Earnings
Net revenue for the full year 2011 increased by 6% to $12,795 million (+5%
at constant currency) compared to the full year 2010 and in line with our
guidance. Organic revenue growth was 2% in the full year 2011.
Operating income (EBIT) for the full year 2011 increased by 8% to $2,075
million compared to $1,924 million in 2010, resulting in an operating
margin of 16.2% compared to 16.0% for the full year 2010.
Net interest expense for the full year 2011 was $297 million compared to
$280 million in the same period of 2010.
Income tax expense for the full year 2011 was $601 million compared to $578
million in the same period in 2010, reflecting effective tax rates of 33.8%
and 35.2%, respectively.
For the full year 2011, net income attributable to shareholders of
Fresenius Medical Care AG & Co. KGaA was $1,071 million, up by 9% from the
full year 2010 and in line with our guidance.
In the full year 2011, earnings per ordinary share rose by 9% to $3.54. The
weighted average number of shares outstanding during the full year 2011 was
approximately 303.0 million.
Cash Flow
Cash from operations during 2011 was $1,446 million compared to $1,368
million for the same period in 2010, representing approximately 11% of
revenue and above our targeted 10% level.
A total of $570 million in cash was spent for capital expenditures, net of
disposals. Free cash flow before acquisitions for the full year 2011 was
$876 million compared to $861 million in the same period in 2010. A total
of $1,775 million in cash was spent for acquisitions, net of divestitures.
Free cash flow after acquisitions and divestitures was minus $899 million
compared to $243 million in the last year.
Please refer to the attachments for a complete overview on the fourth
quarter and the full year 2011 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, 2011, Fresenius Medical Care treated 233,156 patients
worldwide, which represents a 9% increase compared to the previous year's
figure. North America provided dialysis treatments for 142,319 patients, an
increase of 3%. Including 21 clinics managed by Fresenius Medical Care
North America, the number of patients in North America was 143,679. The
International segment provided dialysis treatments to 90,837 patients, an
increase of 18% over the prior year's figure.
As of December 31, 2011, the company operated a total of 2,898 clinics
worldwide, which represents a 6% increase compared to the previous year's
figure. The number of clinics is comprised of 1,838 clinics in North
America (1,859 including managed clinics), and 1,060 clinics in the
International segment, representing an increase of 2% and 13%,
respectively.
During the full year 2011, Fresenius Medical Care delivered approximately
34.39 million dialysis treatments worldwide. This represents an increase of
9% compared to last year's figure. North America accounted for 21.61
million treatments, an increase of 4%. The International segment delivered
12.78 million treatments, an increase of 18%.
Employees
As of December 31, 2011, Fresenius Medical Care had 79,159 employees
(full-time equivalents) worldwide compared to 73,452 employees at the end
of 2010. This increase of more than 5,700 employees is due to overall
growth in the company's business and acquisitions.
Dividend
The company intends to continue its earnings-driven dividend policy. At the
Annual General Meeting to be held on May 10, 2012, shareholders will be
asked to approve a dividend of EUR0.69 per ordinary share, an increase of
6% from 2010 (EUR0.65). For the 15th 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 2.38 at the end of 2010 to 2.69 at the
end of 2011. The debt/EBITDA ratio at the end of the third quarter 2011 was
2.55.
Rating
Standard & Poor's Ratings Services 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, and Fitch rates the company's
corporate credit as 'BB+' with a 'stable' outlook. For further information
on Fresenius Medical Care's credit ratings, maturity profiles and credit
instruments, please visit our website at www.fmc-ag.com / Investor
Relations / Credit Relations.
Vifor Fresenius Medical Care Renal Pharma Ltd. Formation Completed
After the recent clearance by the European Union antitrust commissions, the
formation of Vifor Fresenius Medical Care Renal Pharma Ltd. was completed
globally on November 1, 2011.
Acquisition of American Access Care Completed
The American Accesss Care (AAC) acquisition was closed effective October 1,
2011. AAC operates 28 freestanding out-patient centers primarily dedicated
to serving vascular access needs of dialysis patients. The acquired
operations will add approximately $175 million in annual revenue and are
expected to be accretive to earnings in the first year after closing of the
transaction.
Acquisition of Liberty Dialysis Holdings, Inc.
The acquisition of Liberty Dialysis Holdings, Inc. is on schedule and is
still expected to close in the first quarter of 2012.
Issuance of senior notes
In January 2012, Fresenius Medical Care successfully completed the largest
placement of senior notes in the history of the company. Proceeds from the
offering of three tranches of U.S. dollar and euro-denominated senior
unsecured notes amounting to approximately $1.81 billion are intended to be
used for acquisitions, including the acquisition of Liberty Dialysis
Holdings, Inc., to refinance indebtedness and for general corporate
purposes. The coupon for the dollar-denominated senior notes in the
principal amount of $800 million due 2019 is 5.625% and the coupon for the
dollar-denominated senior notes in the principal amount of $700 million due
2022 is 5.875%. The coupon for the euro-denominated senior notes in the
principal amount of EUR250 million due 2019 is 5.25%. All tranches were
issued at par.
Issuance of floating rate senior notes
In October 2011, Fresenius Medical Care issued euro-denominated floating
rate senior notes in the principal amount of EUR100 million, due 2016. The
coupon is equal to the three-month Euribor rate plus 350 basis points.
Outlook for 2012
For the year 2012, the company expects revenue to grow to around $14
billion. This takes into account a change in US-GAAP1) in the presentation
of U.S. dialysis service revenue which will be shown net of the provision
for bad debt. Based on the comparable revenue for 2011 of $12,571 million
the revenue outlook represents an increase of 11% and between 13% and 15%
based on constant currencies.
Net income is expected to grow to around $1.3 billion and net income
attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is
expected to grow to around $1.14 billion with operating margins forecast to
increase to approximately 16.9%.
For 2012, the company expects to spend around $700 million on capital
expenditures and around $1.8 billion on acquisitions. The debt/EBITDA ratio
is expected to be below 3.0 by the end of 2012.
'We are very pleased to have achieved another year of record results in
2011. In the past 15 years, since the foundation of the company, Fresenius
Medical Care has been able to quadruple its sales and to increase its
earnings tenfold. With our strong performance in 2011 we are proposing to
deliver our fifteenth consecutive dividend increase to our shareholders',
said Ben Lipps, chief executive officer of Fresenius Medical Care. 'We
successfully handled the implementation of the new reimbursement system in
the U.S. and have made good progress on our growth initiatives. We are
confident that we will continue our strong performance targeting another
record year in 2012.'
1) First time adoption of Accounting Standards Codification 954-605 in 2012
(Patient service revenue less provision for bad debt).
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 of 2011 on Tuesday, February 21, 2012, at 3:15 p.m. CET / 9:15 a.m.
EDT. 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.
About Fresenius Medical Care
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 2.1 million
individuals worldwide. Through its network of 2,898 dialysis clinics in
North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius
Medical Care provides dialysis treatment to 233,156 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.
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.
1 Constant currency
Changes in revenue include the impact of changes in foreign currency
exchange rates. We use the non-GAAP financial measure 'at constant exchange
rates' in our filings to show changes in our revenue without giving effect
to period-to-period currency fluctuations. Under U.S. GAAP, revenues
received in local (non-U.S. dollar) currency are translated into U.S.
dollars at the average exchange rate for the period presented. When we use
the term 'constant currency', it means that we have translated local
currency revenues for the current reporting period into U.S. dollars using
the same average foreign currency exchange rates for the conversion of
revenues into U.S. dollars that we used to translate local currency
revenues for the comparable reporting period of the prior year. We then
calculate the change, as a percentage, of the current period revenues using
the prior period exchange rates versus the prior period revenues. This
resulting percentage is a non-GAAP measure referring to a change as a
percentage 'at constant exchange rates'.
We believe that revenue growth is a key indication of how a company is
progressing from period to period and that the non-GAAP financial measure
constant currency is useful to investors, lenders, and other creditors
because such information enables them to gauge the impact of currency
fluctuations on its revenue from period to period. However, we also believe
that data on constant currency period-over-period changes have limitations,
particularly as the currency effects that are eliminated could constitute a
significant element of our revenue and could significantly impact our
performance. We therefore limit our use of constant currency
period-over-period changes to a measure for the impact of currency
fluctuations on the translation of local currency revenue into U.S.
dollars. We do not evaluate our results and performance without considering
both constant currency period-over-period changes in non-U.S. GAAP revenue
on the one hand and changes in revenue prepared in accordance with U.S.
GAAP on the other. We caution the readers of this report to follow a
similar approach by considering data on constant currency
period-over-period changes only in addition to, and not as a substitute for
or superior to, changes in revenue prepared in accordance with U.S. GAAP.
We present the fluctuation derived from U.S. GAAP revenue next to the
fluctuation derived from non-GAAP revenue. Because the reconciliation is
inherent in the disclosure, we believe that a separate reconciliation would
not provide any additional benefit.
End of Corporate News
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Language: English
Company: Fresenius Medical Care AG & Co. KGaA
Else-Kröner-Straße 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
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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