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DGAP-News: Fresenius Medical Care AG & Co. KGaA: Reports Excellent First Quarter 2012 Results And Confirms Guidance For Full Year 2012 (deutsch)

Veröffentlicht am 03.05.2012, 07:24
Aktualisiert 03.05.2012, 07:28
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

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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

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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

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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

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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167828 03.05.2012

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