Fresenius Medical Care AG & Co. KGaA: Reports Excellent First Quarter 2012 Results And Confirms Guidance For Full Year 2012
DGAP-News: Fresenius Medical Care AG & Co. KGaA / Key word(s): Quarter
Results
Fresenius Medical Care AG & Co. KGaA: Reports Excellent First Quarter
2012 Results And Confirms Guidance For Full Year 2012
03.05.2012 / 07:24
---------------------------------------------------------------------
May 3, 2012
Fresenius Medical Care Reports Excellent First Quarter 2012 Results And
Confirms Guidance For Full Year 2012
1st Quarter 2012 Summary:
^
Net revenue $3,249 million +9%
Operating income (EBIT) $503 million +13%
Net income * $370 million +68%
Earnings per share $1.22 +67%
Earnings excluding investment gain:
Net income * $244 million +10%
Earnings per share $0.80 +10%
°
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 first quarter of 2012.
* Attributable to shareholders of Fresenius Medical Care AG & Co. KGaA
Revenue
Net revenue for the first quarter of 2012 increased by 9% to $3,249 million
(+10% at constant currency) compared to the first quarter of 2011. Organic
revenue growth worldwide was 3%. Dialysis services revenue grew by 11% to
$2,478 million (+12% at constant currency) and dialysis product revenue
increased by 3% to $771 million (+5% at constant currency).
North America revenue for the first quarter of 2012 increased by 9% to
$2,105 million. Dialysis services revenue grew by 11% to $1,918 million
with a same market growth of 3%. Average revenue per treatment for U.S.
clinics increased to $353 in the first quarter of 2012 compared to $348 for
the corresponding quarter in 2011. Dialysis product revenue decreased by 4%
to $187 million mainly as a result of lower pricing of renal
pharmaceuticals.
International revenue increased by 8% to $1,136 million (+ 12% at constant
currency). Organic revenue growth was 6%. Dialysis services revenue
increased by 11% to $560 million (+16% at constant currency). Dialysis
product revenue increased by 4% to $576 million and increased by 8% at
constant currency, mainly driven by higher sales of dialysis machines.
Earnings
Operating income (EBIT) for the first quarter of 2012 increased by 13% to
$503 million compared to $445 million in the first quarter of 2011. This
resulted in an operating margin of 15.5% for the first quarter of 2012
compared to 14.9% for the corresponding quarter in 2011.
In North America, the operating margin increased from 16.2% to 16.5%. The
increase in Medicare rates and the growth of our expanded services
contributed favorably to this development. Average costs per treatment for
U.S. clinics decreased to $286 in the first quarter of 2012 compared to
$288 for the corresponding quarter in 2011.
In the International segment, the operating margin increased from 16.2% to
17.2%, mainly due to favorable exchange rate effects.
Net interest expense for the first quarter of 2012 was $99 million,
compared to $72 million in the first quarter of 2011. 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
and 2012.
Net income attributable to shareholders of Fresenius Medical Care AG & Co.
KGaA for the first quarter of 2012 was $370 million, an increase of 68%
compared to the corresponding quarter of 2011. This includes a non-taxable
investment gain of $127 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 and is subject to the finalization of the Liberty
purchase accounting. Excluding this investment gain net income attributable
to shareholders of Fresenius Medical Care AG & Co. KGaA increased by 10% to
$244 million.
Income tax expense was $137 million for the first quarter of 2012 compared
to $124 million in the first quarter of 2011. The effective tax rate
decreased to 25.8% from 33.3% driven by the non-taxable investment gain.
Excluding the investment gain the effective tax rate was 33.9%.
Earnings per ordinary share (EPS) for the first quarter 2012 was $1.22 and
$0.80 if excluding the investment gain. This represents an increase
compared to the first quarter of 2011 of 67% and 10%, respectively. The
weighted average number of shares outstanding for the first quarter of 2012
was approximately 304.2 million shares, compared to 302.3 million shares
for the first quarter of 2011. The increase in shares outstanding resulted
from stock option exercises in the past 12 months.
Cash flow
In the first quarter of 2012, the company generated $481 million in cash
from operations, an increase of 174% compared to the corresponding figure
last year and representing approximately 14.8% of revenue. The cash flow
generation was supported by a favorable development of DSO and inventory
levels as well as lower income tax payments.
A total of $122 million was spent for capital expenditures, net of
disposals. Free cash flow before acquisitions was $359 million compared to
$62 million in the first quarter of 2011. A total of $1,526 million in cash
was spent for acquisitions and investments, net of divestitures. Free cash
flow after acquisitions and divestitures was minus $1,167 million, compared
to minus $277 million in the first quarter of 2011.
Please refer to the attachments for a complete overview on the first
quarter of 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 March 31, 2012, Fresenius Medical Care treated 253,041 patients
worldwide, which represents a 17% increase compared to the previous year's
figure. North America provided dialysis treatments for 161,656 patients, an
increase of 17%. Including 21 clinics managed by Fresenius Medical Care
North America, the number of patients in North America was 163,261. The
International segment provided dialysis treatment to 91,385 patients, an
increase of 16% over the prior year's figure.
As of March 31, 2012, the company operated a total of 3,119 clinics
worldwide, which represents a 13% increase compared to the previous year's
figure. The number of clinics is comprised of 2,053 clinics in North
America (2,074 including managed clinics), and 1,066 clinics in the
International segment, representing an increase of 13% and 13%,
respectively.
During the first quarter of 2012, Fresenius Medical Care delivered
approximately 9.21 million dialysis treatments worldwide. This represents
an increase of 13%, compared to last year's figure. North America accounted
for 5.75 million treatments, an increase of 10%. The International segment
delivered 3.47 million treatments, an increase of 18%.
Employees
As of March 31, 2012, Fresenius Medical Care had 82,979 employees
(full-time equivalents) worldwide, compared to 79,159 employees at the end
of 2011. This increase of more than 3,800 employees is due to overall
growth in the company's business and acquisitions including Liberty
Dialysis Holdings, Inc.
Debt/EBITDA ratio
The ratio of debt to Earnings before interest, taxes, depreciation and
amortization (EBITDA) increased from 2.55 at the end of the first quarter
of 2011 to 2.96 at the end of the first quarter of 2012. The debt/EBITDA
ratio at the end of 2011 was 2.69.
Rating
In February Standard & Poor's Ratings Services upgraded the company's
corporate credit to 'BB+' from 'BB'. The agency also raised the ratings of
Fresenius Medical Care's various unsecured senior notes to 'BB+' from 'BB'.
The rating of 'BBB-' on Fresenius Medical Care's senior secured credit
facilities was affirmed. A stable outlook has been assigned to all ratings.
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.
Announcement of Management Board Change
On March 9, 2012, Fresenius Medical Care announced a change in the
Management Board. Rice Powell will succeed Dr. Ben J. Lipps as CEO of
Fresenius Medical Care AG & Co. KGaA and Chairman of the Management Board,
effective January 1, 2013. The appointment of Rice Powell is part of the
company's succession plan to ensure a smooth transition of leadership. Ben
Lipps was appointed Chief Executive Officer and Chairman of the Management
Board in 1999. In recognition of his extraordinary achievements and unique
expertise Dr. Ben J. Lipps has been appointed Honorary Chairman of the
supervisory boards of Fresenius Medical Care AG & Co. KGaA and the
Fresenius Medical Care Management AG, effective January 1, 2013.
Closing of the acquisition of Liberty Dialysis Holdings
Fresenius Medical Care North America has closed the acquisition of Liberty
Dialysis Holdings, Inc., the holding company of Liberty Dialysis and Renal
Advantage effective February 28, 2012. The closing followed the completion
of the review of the transaction and issuance of a consent decree by the
United States' Federal Trade Commission. In connection with the consent
decree, Fresenius Medical Care completed the sale of 44 clinics to Dialysis
Newco, Inc. ('DSI Renal'). The acquisition of Liberty Dialysis Holdings
Inc. is expected to add annual revenues of around $ 700 million and 201
clinics to Fresenius Medical Care's network for an investment, net of
proceeds from the divestiture, of approximately $1.5 billion.
Sales and earnings outlook for 2012 confirmed
For the full year 2012, the company confirms its sales and earnings
outlook.
The company expects revenue to grow to around $14 billion in 2012.
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. This does not include the
investment gain in the amount of approximately $127 million in the first
quarter of 2012.
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.
'Our first quarter results show an excellent start for the year with both
the North American as well as the International segment continuing their
strong operating performance. On this basis we clearly confirm our previous
guidance for the full year 2012 expecting another record year in terms of
revenue and earnings', said Ben Lipps, chief executive officer of Fresenius
Medical Care. 'We have made very good progress on our growth initiatives
globally and successfully closed the acquisition of Liberty Dialysis during
the first quarter of 2012. With our global base we continue to be well
positioned for the continuing success of our business.'
Conference call
Fresenius Medical Care will hold a conference call to discuss the results
of the first quarter of 2012 on Thursday, May 3, 2012, at 3:30 p.m. CEDT /
9:30 a.m. EDT. The company invites investors to view 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 2.1 million
individuals worldwide. Through its network of 3,119 dialysis clinics in
North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius
Medical Care provides dialysis treatment to 253,041 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.
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
---------------------------------------------------------------------
03.05.2012 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory 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-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
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
---------------------------------------------------------------------
167828 03.05.2012
DGAP-News: Fresenius Medical Care AG & Co. KGaA / Key word(s): Quarter
Results
Fresenius Medical Care AG & Co. KGaA: Reports Excellent First Quarter
2012 Results And Confirms Guidance For Full Year 2012
03.05.2012 / 07:24
---------------------------------------------------------------------
May 3, 2012
Fresenius Medical Care Reports Excellent First Quarter 2012 Results And
Confirms Guidance For Full Year 2012
1st Quarter 2012 Summary:
^
Net revenue $3,249 million +9%
Operating income (EBIT) $503 million +13%
Net income * $370 million +68%
Earnings per share $1.22 +67%
Earnings excluding investment gain:
Net income * $244 million +10%
Earnings per share $0.80 +10%
°
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 first quarter of 2012.
* Attributable to shareholders of Fresenius Medical Care AG & Co. KGaA
Revenue
Net revenue for the first quarter of 2012 increased by 9% to $3,249 million
(+10% at constant currency) compared to the first quarter of 2011. Organic
revenue growth worldwide was 3%. Dialysis services revenue grew by 11% to
$2,478 million (+12% at constant currency) and dialysis product revenue
increased by 3% to $771 million (+5% at constant currency).
North America revenue for the first quarter of 2012 increased by 9% to
$2,105 million. Dialysis services revenue grew by 11% to $1,918 million
with a same market growth of 3%. Average revenue per treatment for U.S.
clinics increased to $353 in the first quarter of 2012 compared to $348 for
the corresponding quarter in 2011. Dialysis product revenue decreased by 4%
to $187 million mainly as a result of lower pricing of renal
pharmaceuticals.
International revenue increased by 8% to $1,136 million (+ 12% at constant
currency). Organic revenue growth was 6%. Dialysis services revenue
increased by 11% to $560 million (+16% at constant currency). Dialysis
product revenue increased by 4% to $576 million and increased by 8% at
constant currency, mainly driven by higher sales of dialysis machines.
Earnings
Operating income (EBIT) for the first quarter of 2012 increased by 13% to
$503 million compared to $445 million in the first quarter of 2011. This
resulted in an operating margin of 15.5% for the first quarter of 2012
compared to 14.9% for the corresponding quarter in 2011.
In North America, the operating margin increased from 16.2% to 16.5%. The
increase in Medicare rates and the growth of our expanded services
contributed favorably to this development. Average costs per treatment for
U.S. clinics decreased to $286 in the first quarter of 2012 compared to
$288 for the corresponding quarter in 2011.
In the International segment, the operating margin increased from 16.2% to
17.2%, mainly due to favorable exchange rate effects.
Net interest expense for the first quarter of 2012 was $99 million,
compared to $72 million in the first quarter of 2011. 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
and 2012.
Net income attributable to shareholders of Fresenius Medical Care AG & Co.
KGaA for the first quarter of 2012 was $370 million, an increase of 68%
compared to the corresponding quarter of 2011. This includes a non-taxable
investment gain of $127 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 and is subject to the finalization of the Liberty
purchase accounting. Excluding this investment gain net income attributable
to shareholders of Fresenius Medical Care AG & Co. KGaA increased by 10% to
$244 million.
Income tax expense was $137 million for the first quarter of 2012 compared
to $124 million in the first quarter of 2011. The effective tax rate
decreased to 25.8% from 33.3% driven by the non-taxable investment gain.
Excluding the investment gain the effective tax rate was 33.9%.
Earnings per ordinary share (EPS) for the first quarter 2012 was $1.22 and
$0.80 if excluding the investment gain. This represents an increase
compared to the first quarter of 2011 of 67% and 10%, respectively. The
weighted average number of shares outstanding for the first quarter of 2012
was approximately 304.2 million shares, compared to 302.3 million shares
for the first quarter of 2011. The increase in shares outstanding resulted
from stock option exercises in the past 12 months.
Cash flow
In the first quarter of 2012, the company generated $481 million in cash
from operations, an increase of 174% compared to the corresponding figure
last year and representing approximately 14.8% of revenue. The cash flow
generation was supported by a favorable development of DSO and inventory
levels as well as lower income tax payments.
A total of $122 million was spent for capital expenditures, net of
disposals. Free cash flow before acquisitions was $359 million compared to
$62 million in the first quarter of 2011. A total of $1,526 million in cash
was spent for acquisitions and investments, net of divestitures. Free cash
flow after acquisitions and divestitures was minus $1,167 million, compared
to minus $277 million in the first quarter of 2011.
Please refer to the attachments for a complete overview on the first
quarter of 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 March 31, 2012, Fresenius Medical Care treated 253,041 patients
worldwide, which represents a 17% increase compared to the previous year's
figure. North America provided dialysis treatments for 161,656 patients, an
increase of 17%. Including 21 clinics managed by Fresenius Medical Care
North America, the number of patients in North America was 163,261. The
International segment provided dialysis treatment to 91,385 patients, an
increase of 16% over the prior year's figure.
As of March 31, 2012, the company operated a total of 3,119 clinics
worldwide, which represents a 13% increase compared to the previous year's
figure. The number of clinics is comprised of 2,053 clinics in North
America (2,074 including managed clinics), and 1,066 clinics in the
International segment, representing an increase of 13% and 13%,
respectively.
During the first quarter of 2012, Fresenius Medical Care delivered
approximately 9.21 million dialysis treatments worldwide. This represents
an increase of 13%, compared to last year's figure. North America accounted
for 5.75 million treatments, an increase of 10%. The International segment
delivered 3.47 million treatments, an increase of 18%.
Employees
As of March 31, 2012, Fresenius Medical Care had 82,979 employees
(full-time equivalents) worldwide, compared to 79,159 employees at the end
of 2011. This increase of more than 3,800 employees is due to overall
growth in the company's business and acquisitions including Liberty
Dialysis Holdings, Inc.
Debt/EBITDA ratio
The ratio of debt to Earnings before interest, taxes, depreciation and
amortization (EBITDA) increased from 2.55 at the end of the first quarter
of 2011 to 2.96 at the end of the first quarter of 2012. The debt/EBITDA
ratio at the end of 2011 was 2.69.
Rating
In February Standard & Poor's Ratings Services upgraded the company's
corporate credit to 'BB+' from 'BB'. The agency also raised the ratings of
Fresenius Medical Care's various unsecured senior notes to 'BB+' from 'BB'.
The rating of 'BBB-' on Fresenius Medical Care's senior secured credit
facilities was affirmed. A stable outlook has been assigned to all ratings.
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.
Announcement of Management Board Change
On March 9, 2012, Fresenius Medical Care announced a change in the
Management Board. Rice Powell will succeed Dr. Ben J. Lipps as CEO of
Fresenius Medical Care AG & Co. KGaA and Chairman of the Management Board,
effective January 1, 2013. The appointment of Rice Powell is part of the
company's succession plan to ensure a smooth transition of leadership. Ben
Lipps was appointed Chief Executive Officer and Chairman of the Management
Board in 1999. In recognition of his extraordinary achievements and unique
expertise Dr. Ben J. Lipps has been appointed Honorary Chairman of the
supervisory boards of Fresenius Medical Care AG & Co. KGaA and the
Fresenius Medical Care Management AG, effective January 1, 2013.
Closing of the acquisition of Liberty Dialysis Holdings
Fresenius Medical Care North America has closed the acquisition of Liberty
Dialysis Holdings, Inc., the holding company of Liberty Dialysis and Renal
Advantage effective February 28, 2012. The closing followed the completion
of the review of the transaction and issuance of a consent decree by the
United States' Federal Trade Commission. In connection with the consent
decree, Fresenius Medical Care completed the sale of 44 clinics to Dialysis
Newco, Inc. ('DSI Renal'). The acquisition of Liberty Dialysis Holdings
Inc. is expected to add annual revenues of around $ 700 million and 201
clinics to Fresenius Medical Care's network for an investment, net of
proceeds from the divestiture, of approximately $1.5 billion.
Sales and earnings outlook for 2012 confirmed
For the full year 2012, the company confirms its sales and earnings
outlook.
The company expects revenue to grow to around $14 billion in 2012.
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. This does not include the
investment gain in the amount of approximately $127 million in the first
quarter of 2012.
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.
'Our first quarter results show an excellent start for the year with both
the North American as well as the International segment continuing their
strong operating performance. On this basis we clearly confirm our previous
guidance for the full year 2012 expecting another record year in terms of
revenue and earnings', said Ben Lipps, chief executive officer of Fresenius
Medical Care. 'We have made very good progress on our growth initiatives
globally and successfully closed the acquisition of Liberty Dialysis during
the first quarter of 2012. With our global base we continue to be well
positioned for the continuing success of our business.'
Conference call
Fresenius Medical Care will hold a conference call to discuss the results
of the first quarter of 2012 on Thursday, May 3, 2012, at 3:30 p.m. CEDT /
9:30 a.m. EDT. The company invites investors to view 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 2.1 million
individuals worldwide. Through its network of 3,119 dialysis clinics in
North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius
Medical Care provides dialysis treatment to 253,041 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.
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
---------------------------------------------------------------------
03.05.2012 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory 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-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
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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