Fresenius Medical Care AG & Co. KGaA reports first quarter 2014 results and confirms guidance for full year 2014
DGAP-News: Fresenius Medical Care AG & Co. KGaA / Schlagwort(e):
Sonstiges
Fresenius Medical Care AG & Co. KGaA reports first quarter 2014
results and confirms guidance for full year 2014
06.05.2014 / 07:38
---------------------------------------------------------------------
- First quarter performance in line with full year guidance
- North America influenced by sequestration and rebasing impact
- International influenced by currency and delayed product sales
- On track to achieve full year guidance
- Accelerated medical and quality initiatives
First quarter 2014 key figures:
Net revenue $3,564 million +3%
Operating income (EBIT) $445 million -10%
Net income1 $205 million -9%
Basic earnings per ordinary share $0.68 -7%
___________________________________________________________________________
1attributable to shareholders of Fresenius Medical Care AG & Co. KGaA
"We can look back on a first quarter that was in line with our guidance for
the full year," said Rice Powell, chief executive officer of Fresenius
Medical Care. "Based on our quarterly results, and on the continuous
efforts we are making to increase profitability, we are able to confirm our
full-year guidance. Moreover, by capitalizing on market opportunities in
our core dialysis business and expanding in business areas like care
coordination for dialysis, Fresenius Medical Care is well placed to meet
the company's ambitious long-term targets."
First quarter 2014
Revenue
Net revenue for the first quarter of 2014 increased by 3% to $3,564 million
(+4% at constant currency) compared to the first quarter of 2013. Organic
revenue growth worldwide was 3%. Dialysis services revenue grew by 4% to
$2,782 million (+5% at constant currency) and dialysis product revenue
decreased by 1% to $782 million (flat at constant currency) compared to the
first quarter of 2013.
North America revenue for the first quarter of 2014 increased by 5% to
$2,393 million. Organic revenue growth was 4%. Dialysis services revenue
grew by 5% to $2,201 million with a same store treatment growth of 3.3%.
Dialysis product revenue increased by 5% to $192 million.
International revenue decreased by 1% to $1,161 million (+4% at constant
currency). Organic revenue growth was 3%. Dialysis services revenue
increased by 1% to $581 million (+8% at constant currency). Dialysis
product revenue decreased by 2% to $580 million (-1% at constant currency).
Earnings
Operating income (EBIT) for the first quarter of 2014 decreased by 10% to
$445 million compared to $493 million in the first quarter of 2013.
Operating income for North America for the first quarter of 2014 decreased
by 8% to $336 million compared to $366 million in the first quarter of
2013. In the International segment, operating income for the first quarter
of 2014 decreased by 6% to $180 million compared to $192 million in the
first quarter of 2013.
Net interest expense for the first quarter of 2014 was $96 million,
compared to $104 million in the first quarter of 2013.
Net income attributable to shareholders of Fresenius Medical Care AG & Co.
KGaA for the first quarter of 2014 was $205 million, a decrease of 9%
compared to the corresponding number of $225 million for the first quarter
of 2013.
Income tax expense was $102 million for the first quarter of 2014 which
translates into an effective tax rate of 29.1%. This compares to income tax
expense of $129 million and a tax rate of 33.2% for the first quarter of
2013.
Basic earnings per ordinary share (EPS) for the first quarter of 2014 was
$0.68, a decrease of 7% compared to the corresponding number for the first
quarter of 2013. The weighted average number of shares outstanding for the
first quarter of 2014 was approximately 301.5 million shares, compared to
306.7 million shares for the first quarter of 2013. The decrease in shares
outstanding resulted from last year's share buy-back program, partially
offset by stock option exercises in the past twelve months.
Cash flow
In the first quarter of 2014, the company generated $112 million in net
cash provided by operating activities, a decrease of 64% compared to the
corresponding figure of last year and representing 3% of revenue.
A total of $197 million was spent for capital expenditures, net of
disposals. Free cash flow was -$85 million compared to $169 million in the
first quarter of 2013.
A total of $135 million in cash was spent for acquisitions and investments,
net of divestitures. Free cash flow after investing activities was -$220
million, compared to $98 million in the first quarter of 2013.
Employees
As of March 31, 2014, Fresenius Medical Care had 91,542 employees
(full-time equivalents) worldwide, compared to 86,855 employees at the end
of March 2013. This increase of more than 4,500 employees was attributable
to our continued organic growth as well as to acquisitions.
Balance sheet structure
The company's total assets were $23,423 million (Dec. 31, 2013: $23,120
million), an increase of 1%. Current assets increased by 3% to $6,497
million (Dec. 31, 2013: $6,287 million). Non-current assets were $16,926
million (Dec. 31, 2013: $16,833 million), an increase of 1%. Total equity
increased by 2% to $9,680 million (Dec. 31, 2013: $9,485 million). The
equity ratio was 41%, unchanged compared to the ratio at the end of 2013.
Total debt was $8,609 million (Dec. 31, 2013: $8,417 million). As of March
31, 2014, the debt/EBITDA ratio was 2.9 (Dec. 31, 2013: 2.8).
Please refer to the attachments for a complete overview of the results for
the first quarter 2014 and the reconciliation of non-GAAP financial
measures included in this release to the most comparable GAAP financial
measures.
Changes in management board
On March 12, 2014, the company announced the resignations of Prof. Emanuele
Gatti, and Dr. Rainer Runte, both effective March 31, 2014, from the
general partner's management board. Dr. Gatti's position on the management
board and duties relating to Europe, Middle East and Africa have been
assumed by Mr. Wehner, effective April 1, 2014, while Latin America region
management duties have been assumed by Mr. John Anderson who reports
directly to CEO Mr. Powell. Until such time as a permanent successor to Dr.
Runte is named, Mr. David Kembel, chief compliance officer for Fresenius
Medical Care North America, has assumed Dr. Runte's responsibilities for
Global Compliance on an interim basis and CEO Mr. Powell, as the chairman
of the management board, has assumed Dr. Runte's remaining
responsibilities, until the search for a General Counsel is complete.
Long-term revenue target
On April, 4 Fresenius Medical Care announced its long-term financial target
for 2020. Based on revenue of $14.6 billion in fiscal year 2013, the
company has set its ambitious revenue guidance for 2020 at $28 billion.
This represents a cumulative average growth rate of around 10% per annum
(CAGR) between 2015 and 2020 and a near doubling of revenue compared to
2013. Over the same period the company expects a high single digit increase
in net income and EPS.
Fresenius Medical Care's world-leading position in the dialysis industry
has been built on its vision and capabilities in developing innovations
that shape the future of treatment for patients. Fresenius Medical Care
will continue to develop innovative products focused on quality outcomes
for the patient while expanding the company's dialysis products and
services around the world. In addition to strong growth in the underlying
business of dialysis products and services, Fresenius Medical Care sees
significant potential in a business area it began developing some years ago
and now calls Care Coordination. Care Coordination is an extension of the
company's renal care for its patients and currently includes e.g. vascular
care, laboratory and pharmacy businesses. By further integrating those
services in the U.S. into the existing core business and thereby creating a
high-performance renal network including risk based models and by the
development of chronic care centers in the International segment, the
company expects a significant improvement of patient care outcomes.
Fresenius Medical Care plans to build this business segment and expects
revenue from Care Coordination to grow from 3% of total revenue in 2013 to
about 18% in 2020.
Outlook
The company expects revenue to be at around $15.2 billion in 2014,
translating into a growth rate of around 4%.
Net income attributable to shareholders of Fresenius Medical Care AG & Co.
KGaA is expected to be between $1.0 billion and $1.05 billion in 2014. The
company initiated a global efficiency program designed to enhance the
company's performance over a multi-year period. Potential cost savings
before income taxes of up to $60 million generated from this program are
not included in the outlook for 2014.
For 2014, the company expects to spend around $900 million on capital
expenditures and around $400 million on acquisitions. The debt/EBITDA ratio
is expected to be equal to or below 3.0 by the end of 2014.
Conference call
Fresenius Medical Care will hold a conference call to discuss the results
of the first quarter 2014 on Tuesday, May 6, 2014, at 3.30 p.m. CEDT/ 9.30
a.m. EDT. The company invites investors to follow the live webcast of the
call at the company's website www.fmc-ag.com in the "Investor Relations"
section. A replay will be available shortly after the call.
Fresenius Medical Care is the world's largest integrated provider of
products and services for individuals undergoing dialysis because of
chronic kidney failure, a condition that affects more than 2.5 million
individuals worldwide. Through its network of 3,263 dialysis clinics in
North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius
Medical Care provides dialysis treatments for 270,570 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.
Relations.
CONTACT
Fresenius Medical Care AG & Co. KGaA
Investor Relations
61352 Bad Homburg v. d. H.
Germany
www.fmc-ag.com
Oliver Maier
Head of Investor Relations &
Corporate Communications
Tel. +49 6172 609 2601
Fax +49 6172 609 2301
email: ir@fmc-ag.com
Published by
Fresenius Medical Care AG & Co. KGaA
Investor Relations
Annual reports, interim reports and further
information on the company is also available on our website.
Please visit us at www.fmc-ag.com
For printed material, please contact Investor Relations.
Ende der Corporate News
---------------------------------------------------------------------
06.05.2014 Veröffentlichung einer Corporate News/Finanznachricht,
übermittelt durch die DGAP - ein Unternehmen der EQS Group AG.
Für den Inhalt der Mitteilung ist der Emittent / Herausgeber
verantwortlich.
Die DGAP Distributionsservices umfassen gesetzliche Meldepflichten,
Corporate News/Finanznachrichten und Pressemitteilungen.
Medienarchiv unter http://www.dgap-medientreff.de und
http://www.dgap.de
---------------------------------------------------------------------
Sprache: Deutsch
Unternehmen: Fresenius Medical Care AG & Co. KGaA
Else-Kröner-Straße 1
61352 Bad Homburg
Deutschland
Telefon: +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
Indizes: DAX
Börsen: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart; Terminbörse EUREX; NYSE
Ende der Mitteilung DGAP News-Service
---------------------------------------------------------------------
266538 06.05.2014