03.05.2018 Fresenius Medical Care AG & Co. KGaA  DE0005785802

DGAP-News: Fresenius Medical Care remains on track for another record year after solid first quarter 2018


 
DGAP-News: Fresenius Medical Care AG & Co. KGaA / Key word(s): Quarter Results Fresenius Medical Care remains on track for another record year after solid first quarter 2018 03.05.2018 / 07:00 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- - Revenue and net income growth in the first quarter impacted by significant currency headwind - Growth delivered by Products business and International segments - On track to achieve net income growth target - Expected revenue growth softened due to reduced dosing of calcimimetic drugs in the United States - Divestiture of Sound Inpatient Physicians to further focus U.S. Care Coordination activities Key figures (IFRS)> [1] EUR million Q1 Q1 growt- growt- 2018 2017 h h cc Revenue Revenue adjusted Revenue adjusted 3,976 4,548 (13%) (1%) and excluding special items 3,976 4,409 (10%) 2% 4% 3,976 4,309 (8%) Operating income (EBIT) Operating income 497 651 (24%) (15%) (EBIT) adjusted Operating income (EBIT) 510 651 (22%) (13%) adjusted and excl. special items 510 552 (8%) 3% Net income[1][2] Net income adjusted Net 279 308 (10%) 0% 5% income adjusted and excluding special 292 308 (5%) 8% items 1. #footnote_2 244 249 (2%) Basic earnings per share (in EUR) 0.91 1.01 (10%) 0% "On the back of a solid first quarter, which showed healthy organic growth in our businesses, we are heading towards another record year in our company's history. While managing the shift of the calcimimetic drugs into our clinical operations in the United States, we achieved good organic revenue growth in our Dialysis Services business and strong organic revenue growth in our Products business. This provides a solid basis to deliver on our growth targets for this year. With the planned sale of Sound Inpatient Physicians we have narrowed the focus of our Care Coordination strategy in the U.S. on areas that provide the highest contribution and the best outcomes for our patients," said Rice Powell, Chief Executive Officer of Fresenius Medical Care. "I am proud to announce that we have just proven once again our commitment to patients. We have received the highest quality rankings in the industry from the U.S. Centers for Medicare and Medicaid Services last week." Currency headwind impacts revenue and earnings, healthy organic growth continues Revenue in the first quarter 2018 was significantly impacted by a 12% negative impact resulting from foreign currency translation, declining 1% at constant currency to EUR 3,976 million. Adjusting Q1 2017 for the prior year impact from the recognition of revenue related to the agreement with the U.S. Departments of Veterans Affairs and Justice (VA Agreement) and for the IFRS 15 implementation, revenue growth in the first quarter 2018 was 4% at constant currency. Health Care Services revenue declined by 3% at constant currency (EUR 3,209 million), driven by the effect of the implementation of IFRS 15. Health Care Products revenue increased by 6% at constant currency to EUR 767 million. Organic growth for Health Care Services was at 2%, and for the Health Care Products business at 6%. Dialysis treatments increased by 3% as a result of growth in same-market treatments (2%) and contributions from acquisitions (1%). Total operating income (EBIT) reached EUR 497 million (margin of 12.5%, 180 basis points below the level of last year). This development was strongly impacted by the VA Agreement and the impact from the initial increase in valuation of Sound Physicians' share based payment program caused by the sale of Sound Physician (initial Sound valuation impact). Adjusting for the revenue impact from the implementation of IFRS 15 and excluding the VA Agreement as well as the initial Sound valuation impact, EBIT grew by 3% at constant currency and EBIT margin was stable at 12.8%. Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA remained strong with EUR 279 million, a stable development at constant currency. Adjusted for the negative impact of the initial Sound valuation impact net income grew by 5% on a constant currency basis (EUR 292 million). Excluding all special items - namely the VA Agreement in Q1 2017 and the positive effect from the U.S. Tax Reform in Q1 2018 as well as the initial Sound valuation impact, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA increased by 8% at constant currency. Based on the number of approximately 306.5 million shares (weighted average number of shares outstanding), basic earnings per share (EPS) amounted to EUR 0.91, compared to EUR 1.01 for the first quarter of 2017. Development of Reporting Segments North America revenue, which corresponds to 70% of total revenue, was down by 5% at constant currency to EUR 2,774 million. Dialysis Care revenue decreased by 16% to EUR 2,075 million, including a 13% negative impact resulting from foreign currency translation. At constant currency, Dialysis Care revenue decreased by 3%, mainly due to the implementation of IFRS 15 (EUR 88 million) and the prior-year impact from the VA Agreement (EUR 100 million). Excluding the 2017 effect from the VA Agreement and the 2017 effect from the implementation of IFRS 15, Dialysis Care revenue increased by 5% at constant currency. Same-market treatments grew by 2%, organic revenue per treatment by 2% and acquisitions contributed 1%. At constant currency, Care Coordination revenue decreased by 14%, driven by the shift of calcimimetic drugs into the clinical environment, the implementation of IFRS 15 and the impact from the Shiel Laboratories divestiture in Q4 2017. As of the end of March 2018, the company was treating 197,339 patients at its 2,419 clinics in North America. Both numbers increased by 4%, while dialysis treatments increased by 3%. Key figures North America (IFRS) EUR million Q1 Q1 growth growt- 2018 2017 h cc Revenue Revenue adjusted Revenue adjusted 2,774 3,375 (18%) (5%) and excluding special items 2,774 3,236 (14%) (1%) 2,774 3,136 (12%) 2% Operating income (EBIT) Operating income 362 526 (31%) (21%) (EBIT) adjusted Operating income (EBIT) 375 526 (29%) (19%) adjusted and excl. special items 375 427 (12%) 0% In the U.S., the average revenue per treatment, adjusted for the implementation of IFRS 15 and excluding the 2017 impact of the VA Agreement, the average revenue per treatment increased by USD 6 from USD 342 to USD 348. The increase was mainly driven by the announced initial introduction of calcimimetic drugs in the clinical environment, which is still in an early conversion stage. Higher implicit price concessions (IFRS 15) and, as previously indicated, lower revenue from commercial payors mitigated this effect. Cost per treatment in the U.S., adjusted for the implementation of IFRS 15, increased to USD 288 (from USD 276). This development was largely a result of the announced initial introduction of calcimimetic drugs in the clinical environment, which is still in an early conversion stage, higher personnel expense, as well as increased property and other occupancy related costs and increased costs for medical supplies partially offset by lower costs for health care supplies. At constant currency, Health Care Products revenue increased by 1% due to higher sales of renal pharmaceuticals, peritoneal dialysis products, hemodialysis solutions and concentrates, partially offset by lower sales of machines and dialyzers. The total operating income of the North America segment was EUR 362 million (-31%), (-21% at constant currency), an operating income margin of 13.1%. Adjusted for the initial Sound valuation impact and the 2017 effects from the VA Agreement, operating income (EBIT) was EUR 375 million compared to EUR 427 million in the first quarter 2017. The respective operating income margin was 13.5% compared to 13.6% in the first quarter of 2017. EMEA revenue increased by 6% at constant currency to EUR 636 million, mainly driven by positive business development in Health Care Services revenue and Health Care Products revenue, which both increased by 6% at constant currency. The increase in Health Care Services revenue was driven by acquisitions, same-market treatment growth and an increase in dialysis days. Dialysis Products revenue grew by 7% at constant currency to EUR 302 million, due to higher sales of products for acute care treatments, machines, peritoneal dialysis products and renal pharmaceuticals. Non-dialysis Products revenue decreased by 6% to EUR 20 million, primarily due to lower sales of acute cardiopulmonary products. There was virtually no impact from foreign currency translation effects. Operating income was EUR 109 million. The operating income margin decreased from 18.7% to 17.1%, mainly due to unfavorable impacts from currency effects partially offset by the impact of one additional dialysis day. As of the end of March 2018, the company had 63,114 patients (5% increase) being treated at 754 clinics (4% increase) in the EMEA region. Dialysis treatments increased by 5%. Asia-Pacific revenue grew by 14% at constant currency to EUR 392 million. In the region, Health Care Services revenue increased 9% (20% at constant currency) to EUR 184 million. Care Coordination activities contributed EUR 46 million to Health Care Services revenue. With growth of 8% in constant currency to EUR 208 million, the Health Care Products business showed a solid sales performance, mainly driven by higher sales of chronic hemodialysis products and products for acute care treatments. Operating income reached EUR 74 million (Q1 2017: EUR 82 million). The operating income margin decreased to 19.0% in Q1 2018 (Q1 2017: 21.7%). This was primarily driven by foreign currency transaction effects and delayed product sales. As of the end of March 2018, the company had 30,194 patients (2% increase) being treated at 385 clinics in Asia-Pacific. Dialysis treatments increased by 2%, impacted by same market treatment growth of 4% partially offset by the effect of sold or closed clinics. Latin America delivered revenue of EUR 170 million, a significant improvement of 17% at constant currency. This growth was mainly driven by an increase in organic revenue per treatment. Health Care Products revenue grew by 25% at constant currency based on higher sales of dialyzers, machines, products for acute treatments and peritoneal dialysis products. With an operating income of EUR 14 million the segment generated an operating income on previous year's level. Operating income margin increased slightly to 8.3% in Q1 2018 (Q1 2017: 8.1%). As of the end of March 2018, the company was treating 31,606 patients (5% increase) at 232 clinics in Latin America. Dialysis treatments increased by 4%. Net interest expense was EUR 80 million compared to EUR 92 million in the first quarter of 2017, a decrease of 14% (5% at constant currency). The decrease was driven by the lower leverage level and a repayment of high interest-bearing senior notes. Income tax expense was EUR 87 million for the first quarter of 2018, which translates into an effective tax rate of 20.9%, compared to last year's Q1 with a tax rate of 32.5%. The strong reduction was largely driven by the U.S. Tax Reform. Cash flow with normalized development In the first quarter of 2018, the company used EUR 45 million in net cash from operating activities, compared to EUR 170 million provided by operating activities in last year's Q1. The decrease in net cash provided by operating activities was largely driven by the positive impact from the 2017 cash inflow related to the VA Agreement, a higher impact from seasonality in invoicing and increased inventory levels, partially offset by a positive impact from lower income tax payments. The number of days sales outstanding (DSOs) increased sequentially by 10 days compared with Q4 2017 to reach 85 days driven by the above mentioned seasonality in invoicing. Free cash flow (Net cash used in operating activities, after capital expenditures, before acquisitions and investments) amounted to EUR (263 million) and EUR (25 million) for the three months ended March 31, 2018 and March 31, 2017, respectively. Free cash flow in percent of revenue was (6.6%) and (0.6%) for the three months ended 2018 and 2017, respectively. Focusing the profile in U.S. Care Coordination portfolio On April 21, Fresenius Medical Care announced to divest its controlling interest in Sound Inpatient Physicians to an investment consortium for total transaction proceeds of USD 2.15 billion (EUR 1.76 billion [3]). The divestment is expected to generate a pre-tax book gain of approximately EUR 800 million3, [4]. Closing of the transaction is subject to regulatory approvals and anticipated late in 2018. Employees As of March 31, 2018, Fresenius Medical Care had 114,831 employees (full-time equivalents) worldwide, compared to 110,530 employees at the end of March 2017. This increase was mainly attributable to our continued organic growth and acquisitions. Outlook 2018 The company expects revenue [5] growth between 5% and 7% at constant currency. Adjusted net income [6] is expected to increase by 13% to 15% at constant currency and excluding special items [7] to increase by 7% to 9%. The targets exclude effects from major transactions such as the planned acquisition of NxStage Medical and the planned divestiture of Sound Physicians. Conference call Fresenius Medical Care will host a conference call to discuss the results of the first quarter today at 3:30 p.m. CEDT / 9:30 a.m. EDT. Details will be available on the company's website www.freseniusmedicalcare.com in the "Investors/Events" section. A replay will be available shortly after the call. Please refer to our statement of earnings included at the end of this news and to the attachments as separate PDF-files for a complete overview of the results for the first quarter 2018. Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases of which around 3.2 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,790 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 322,253 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with its core business, the company provides related medical services in the field of Care Coordination. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and on the New York Stock Exchange (FMS). For more information visit the Company's website at www.freseniusmedicalcare.com. ----- [1] For a detailed reconciliation, please refer to the table at the end of the press release [2] Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA [3] EUR/USD 1.22 [4] Based on the company's latest available valuation of the North American operating segment [5] 2017 adjusted for the effect of IFRS 15 implementation [6] Attributable to shareholders of Fresenius Medical Care AG & Co. KGaA, adjusted for the Sound valuation impact [7] VA Agreement, Natural Disaster Costs, FCPA related charge, U.S. Tax Reform ----- 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. Reconciliation of non-IFRS financial measures to the most directly comparable IFRS financial measures in EUR million, unaudited Three months ended March 31 2018 2017 Operating performance excluding special items Revenue 3,976 4,548 Effect from IFRS 15 implementation (139) Revenue adjusted 3,976 4,409 VA Agreement1 (100) Revenue adjusted and excluding special items 3,976 4,309 Operating income (EBIT) 497 651 Initial Sound valuation impact2 13 Operating income (EBIT) adjusted 510 651 VA Agreement (99) Operating income (EBIT) adjusted and excluding 510 552 special items Net income3 279 308 Initial Sound valuation impact 13 Net income3 adjusted 292 308 VA Agreement (59) U.S. Tax Reform4 (48) Net income3 adjusted and excluding special 244 249 items 1 VA Agreement: Agreement with the United States Departments of Veterans Affairs and Justice 2 Initial increase in valuation of Sound Pysicians' share based payment program caused by sale of Sound Physicians 3 Attributable to shareholders of FMC AG & Co. KGaA 4 U.S. Tax Reform: impacts from the U.S. tax reform Statement of earnings in EUR million, except share Three months data, unaudited ended March 31 2018 2017 Cha- Change nge at cc Health Care Services 3,209 3,769 -14- -2.8% .9% Health Care Products 767 779 -1.- 6.4% 5% Revenue 3,976 4,548 -12- -1.2% .6% Revenue adjusted 3,976 4,409 -9.- 1.9% 8% Revenue adjusted and 3,976 4,309 -7.- 4.3% excluding special items 7% Costs of revenue 2,773 2,956 -6.- 6.6% 2% Gross profit 1,203 1,592 -24- -15.7% .4% Selling, general and 692 924 -25- -16.2% administrative .1% Research and development 32 32 -0.- 5.0% 7% Income from equity method (18) (15) 20.- 21.7% investees 3% Operating income (EBIT) 497 651 -23- -15.2% .7% Operating income (EBIT) 510 651 -21- -12.9% adjusted .7% Operating income (EBIT) 510 552 -7.- 2.8% adjusted and excluding 6% special items Interest expense, net 80 92 -13- -4.8% .8% Income before taxes 417 559 -25- -16.9% .4% Income tax expense 87 182 -52- -47.1% .0% Net income 330 377 -12- -2.4% .5% Less: Net income attributable 51 69 -25- -14.4% to non-controlling interests .7% Net income1 279 308 -9.- 0.3% 6% Net income1 adjusted 292 308 -5.- 5.2% 4% Net income1 adjusted and 244 249 -2.- 8.4% excluding special items 2% Operating income (EBIT) 497 651 -23- -15.2% .7% Depreciation and amortization 175 190 -7.- 2.1% 9% EBITDA 672 841 -20- -11.3% .1% EBITDA margin 16.9% 18.5% Weighted average number of 306,453,070 306,241,321 shares Basic earnings per share EUR0.91 EUR1.01 -9.- 0.2% 7% Basic earnings per ADS EUR0.45 EUR0.50 -9.- 0.2% 7% In percent of revenue Costs of revenue 69.7% 65.0% Gross profit 30.3% 35.0% Operating income (EBIT) 12.5% 14.3% Net income1 7.0% 6.8% 1 Attributable to shareholders of FMC AG & Co. KGaA --------------------------------------------------------------------------- 03.05.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at 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: [email protected] Internet: www.freseniusmedicalcare.com ISIN: DE0005785802 WKN: 578580 Indices: DAX Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; NYSE End of News DGAP News Service --------------------------------------------------------------------------- 681883 03.05.2018


Die wichtigsten Finanzdaten auf einen Blick
  2017 2018 2019 2020 2021 2022 2023e
Umsatzerlöse1 17.784,00 16.547,00 17.476,56 17.859,06 17.618,69 19.398,02 19.453,62
EBITDA1,2 3.098,00 3.763,00 3.862,72 4.090,31 3.475,97 3.350,00 3.121,41
EBITDA-Marge3 17,42 22,74 22,10 22,90 19,73 17,27
EBIT1,4 2.362,00 3.038,00 2.269,56 2.304,41 1.852,29 1.511,76 1.369,44
EBIT-Marge5 13,28 18,36 12,99 12,90 10,51 7,79 7,04
Jahresüberschuss1 1.554,00 2.226,00 1.438,50 1.435,83 1.219,03 894,33 732,46
Netto-Marge6 8,74 13,45 8,23 8,04 6,92 4,61 3,77
Cashflow1,7 2.192,00 2.062,00 2.566,95 4.233,16 2.489,50 2.167,38 2.628,80
Ergebnis je Aktie8 4,17 6,47 3,96 3,96 3,31 2,30 1,70
Dividende8 1,06 1,17 1,20 1,34 1,35 1,12 0,96
Quelle: boersengefluester.de und Firmenangaben

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1 in Mio. Euro; 2 EBITDA = Ergebnis vor Zinsen, Steuern und Abschreibungen; 3 EBITDA in Relation zum Umsatz; 4 EBIT = Ergebnis vor Zinsen und Steuern; 5 EBIT in Relation zum Umsatz; 6 Jahresüberschuss (-fehlbetrag) in Relation zum Umsatz; 7 Cashflow aus der gewöhnlichen Geschäftstätigkeit; 8 in Euro; Quelle: boersengefluester.de

Wirtschaftsprüfer: PricewaterhouseCoopers

INVESTOR-INFORMATIONEN
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Fresenius Medical Care
WKN Kurs in € Einschätzung Börsenwert in Mio. €
578580 35,650 Halten 10.460,19
KGV 2025e KGV 10Y-Ø BGFL-Ratio Shiller-KGV
12,51 17,81 0,70 10,04
KBV KCV KUV EV/EBITDA
0,79 3,98 0,54 5,65
Dividende '22 in € Dividende '23e in € Div.-Rendite '23e
in %
Hauptversammlung
1,12 1,19 3,34 16.05.2024
Q1-Zahlen Q2-Zahlen Q3-Zahlen Bilanz-PK
07.05.2024 30.07.2024 05.11.2024 22.03.2024
Abstand 60Tage-Linie Abstand 200Tage-Linie Performance YtD Performance 52 Wochen
-2,13% -9,02% -6,09% -6,53%
    
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