Recent Updates
Recently added Catalysts
FMS

Investor News Fresenius Medical Care AG & Co. KGaA Investor Relations Else-Kr ner-Str. 1 D-61352 Bad Homburg Contact: Oliver Maier Phone: + 49 6172 609 2601 Fax: + 49 6172 609 2301 E-mail: ir@fmc-ag.com North America: Te

Thursday, February 22, 2007 11 min read
Key Takeaway: Investor News Fresenius Medical Care AG & Co. KGaA Investor Relations Else-Kr ner-Str. 1 D-61352 Bad Homburg Contact: Oliver Maier Phone: + 49 6172 609 2601 Fax: + 49 6172 609 2301 E-mail: ir@fmc-ag.com North America: Terry Proveaux Phone:

Full Press Release Details

Investor News Fresenius Medical Care AG & Co. KGaA
Investor Relations
Else-Kr ner-Str. 1
D-61352 Bad Homburg
Contact:
Oliver Maier
Phone: + 49 6172 609 2601
Fax: + 49 6172 609 2301
E-mail: ir@fmc-ag.com
North America:
Terry Proveaux
Phone: + 1 800 948 2538
Fax: + 1 615 345 5605
E-mail: ir@fmc-ag.com
Internet: www.fmc-ag.com
February 22, 2007
Fresenius Medical Care Reports Excellent Fourth Quarter and
Full Year 2006 Results and Provides Strong Outlook for 2007
Summary Full Year 2006:
The Company exceeded its financial targets, achieved record earnings and proposes its 10th consecutive annual dividend increase.
Net revenue $ 8,499 million + 26 %
Operating income (EBIT) $ 1,318 million + 40 %
Net income $ 537 million + 18 %
Excluding SFAS 123(R) and one-time items
Operating income (EBIT) $ 1,329 million + 38 %
Net income $ 584 million + 24 %
Dividend Proposal Ordinary Share 1.41 + 15 %
Preference Share 1.47 + 14 %
Bad Homburg, Germany Fresenius Medical Care AG & Co. KGaA ( the Company ), the world s largest provider of Dialysis Products and Services, today announced its results for the fourth quarter and full year of 2006.
Please note, the result of operations of Renal Care Group (RCG) are consolidated from April 1, 2006 onward.
Fourth Quarter 2006:
Net revenue for the fourth quarter 2006 compared to the fourth quarter 2005 increased by 33% (31% at constant currency) to $2,352 million.Organic revenue growth worldwide was 11%. Dialysis Services revenue grew by 39% to $1,749 million (38% at constant currency) in the fourth quarter of 2006. Dialysis Product revenue increased by 17% to $603 million (12% at constant currency) in the same period.
North America revenue increased by 39% to $1,658 million. Dialysis Services revenue increased by 44% to $1,505 million. Average revenue per treatment for the U.S. clinics increased by 9% to $328 in the fourth quarter 2006 compared to $302 for the same quarter in 2005. Dialysis Product revenue increased by 5% to $153 million led by strong sales of our 2008K hemodialysis machines. Excluding the effects of the RCG acquisition and related divestitures, the Dialysis Product revenue increased by 13% compared to last year.
International revenue was $694 million, an increase of 20% (14% at constant currency) compared to the fourth quarter of 2005. Dialysis Services revenue reached $244 million, an increase of 17% (13% at constant currency). Dialysis Product revenue increased by 22% to $450 million (15% at constant currency), led by strong sales of machines (both the 4008 and 5008 series), dialyzers and peritoneal dialysis products.
Operating income (EBIT) increased by 45% to $354 million. Operating income for the fourth quarter 2006 includes $29 million of costs related to the change of accounting principles for stock options (SFAS 123R), restructuring costs and in-process R&D.
Excluding these costs, operating income for the fourth quarter 2006 increased by 48% to $383 million resulting in an operating margin of 16.3%. For the fourth quarter 2005 the operating margin was 14.6%.
Compared with the fourth quarter 2005, the operating margin excluding one-time items in North America increased by 260 basis points to 17.1% due to the consolidation of RCG, an increase in the revenue per treatment and strong demand for dialysis products. In the International segment, the operating margin increased from an already high level by 30 basis points to 17.7%. The continued strong operational performance in the International segment was driven by increased product sales in all regions and positively impacted by production efficiencies and reimbursement increases in key countries in Europe and Latin America.
Net interest expense for the fourth quarter 2006 was $96 million compared to $46 million in the same quarter of 2005. This increase is entirely attributable to the debt financing for the RCG acquisition.
Income tax expense was $99 million for the fourth quarter of 2006 compared to $82 million in the fourth quarter of 2005, reflecting effective tax rates of 38.5% and 41.3%, respectively.
Net income for the fourth quarter 2006 was $152 million, an increase of 32%. Excluding one-time costs and SFAS 123(R), the net income increased on a comparable basis by 35% to $172 million.
Earnings per share (EPS) for the fourth quarter of 2006 rose by 31% to $1.55 per ordinary share ($0.52 per American Depositary Share (ADS)) compared to $1.18 ($0.39 per ADS) for the fourth quarter of 2005. The weighted average number of shares outstanding for the fourth quarter of 2006 was approximately 98.3 million shares compared to 97.6 million shares for the fourth quarter of 2005. The increase in shares outstanding results from stock option exercises in 2006.
In the fourth quarter of 2006, the Company generated $443 million in cash from operations, representing 19% of revenue clearly above our target. The strong cash flow generation was supported by increased earnings.
A total of $177 million was spent for capital expenditures, net of disposals. Free Cash Flow before acquisitions was $266 million compared to $65 million in the fourth quarter of 2005. A total of $118 million in cash was used for acquisitions.
Earnings and Revenue
For the full year 2006, net income was $537 million, up 18% from 2005. Excluding costs related to the change of accounting principles for stock options (SFAS 123R) of $10 million and one-time items of $37 million, net income increased by 24% to $584 million. In the future, costs related to SFAS 123(R) will not be adjusted when comparing with 2007 figures.
Net revenue for 2006 was $8,499 million, up 26% from 2005. Adjusted for currency, net revenue rose by 25%. Organic growth was 10%.
Operating income (EBIT) increased by 40% to $1,318 million. Operating income for the full year 2006 includes expenses of $11 million as a result of restructuring and in-process R&D, transformation of legal form and the change of accounting principles for stock options, net of the gain from the clinic divestitures.
Excluding these items and the one-time costs for the transformation of the legal form in the prior year, operating income for 2006 increased by 38% to $1,329 million. This performance resulted in an operating margin of 15.6% compared to 14.2% for the year 2005.
Net interest expense for the full year 2006 was $351 million compared to $173 million in 2005. The increase was the result of three quarters worth of additional interest expense and the write-off of deferred financing costs related to the 2003 senior credit facility of $15 million, both in conjunction with the financing of the RCG acquisition.
Income tax expense was $413 million for the full year compared to $309 million in 2005, reflecting tax rates of 42.8% and 40.3%, respectively. The tax rate was impacted by tax payments in connection with the gain on divestiture of dialysis clinics in the U.S. and by a tax audit in Germany. Excluding these impacts, the effective tax rate was 38.5%.
For the full year 2006, earnings per ordinary share rose by 17% to $5.47 ($1.82 per ADS). The weighted average number of shares outstanding during 2006 was approximately 98.1 million.
Cash from operations during the full year 2006 was $908 million compared to $670 million for 2005 on a reported basis. On an adjusted basis, cash from operations was $1,106 million in 2006 compared to $805 million in 2005. The increase compared to prior the year was mainly due to increased earnings and further improvements in working capital efficiency.
A total of $450 million was used for capital expenditures, net of disposals. Free Cash Flow before acquisitions for 2006 was $458 million compared to $373 million in 2005. The underlying Free Cash Flow before acquisitions and one-time effects for 2006 was $656 million. A total of $159 million in cash was used for acquisitions other than the RCG acquisition in 2006.
For a complete overview on the fourth quarter and the full year of 2006 and the reconciliation of non-GAAP financial measures included in this release to the most comparable GAAP financial measures, please refer to the attachments.
Patients Clinics Treatments
As of December 31, 2006, Fresenius Medical Care treated 163,517 patients worldwide, which represents a 24% increase in patients compared to last year. North America provided dialysis treatments for 117,855 patients (up 32%). Including 33 managed clinics, the number of patients in North America was 119,883. The International segment served 45,662 patients (up 8%).
As of December 31, 2006, the Company operated a total of 2,108 clinics worldwide. This is comprised of 1,560 clinics in North America, an increase of 35%, and 548 clinics in the International segment, an increase of 5%.
Fresenius Medical Care delivered approximately 23.74 million dialysis treatments worldwide, which represents an increase of 20% year over year. North America accounted for 16.88 million treatments, an increase of 25%, and the International segment delivered 6.86 million treatments, an increase of 10% over last year.
As of December 31, 2006, Fresenius Medical Care employed 56,803 people (full-time equivalents) worldwide compared to 47,521 at the end of 2005. The increase of 9,282 employees is primarily due to the acquisition of Renal Care Group.
The Company will continue to follow an earnings-driven dividend policy. For the tenth consecutive year, shareholders can expect to receive an increased annual dividend for the fiscal year 2006. At the Annual General Meeting to be held on May 15, 2007, shareholders will be asked to approve a dividend of 1.41 per ordinary share, an increase of 15% from 2005 ( 1.23) and 1.47 per preference share, an increase of 14% from 2005 ( 1.29).
Acquisition in Taiwan
On January 9, 2007, the Company announced the acquisition of a 51% equity interest in Jiate Excelsior Co. Ltd. ( Excelsior ) in Taiwan. The purchase price for the 51% equity interest in Excelsior was $38 million. The transaction is expected to add about $80 million to the consolidated revenues and to be accretive to the Company s earnings for 2007. Through the transaction, Fresenius Medical Care will become the leading dialysis provider in the Asia-Pacific region.
For the full year 2007, the Company expects to achieve revenue of approximately $9.4 billion, an increase of 11%.
The net income is expected to be between $675 million and $695 million in 2007. This represents an increase of between 18% and 21% on an adjusted basis to 2006. On a reported basis, the net income would increase by 26% to 29%.
The Company expects spending on capital expenditures and acquisitions to be at approximately $650 million. The debt/EBITDA ratio is expected to fall below 3.0 by the end of 2007.
Ben Lipps, Chief Executive Officer of Fresenius Medical Care, commented: Our excellent financial performance for the year reflects the strong demand for our products and services worldwide. We are pleased to have again delivered on our commitments in 2006 and are proposing to deliver our tenth consecutive dividend increase to our shareholders. With the successful integration of the Renal Care Group acquisition, expansion opportunities for patient care in Europe and Asia and the progress on our growth initiatives, we are confident as we look ahead.
Fresenius Medical Care will hold an analyst meeting at its headquarters in Bad Homburg, Germany, to discuss the results of the fourth quarter and the full year of 2006 on February 22, 2007, at 3.15pm CET / 9.15am EST. The Company invites investors to view the live video 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.
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 about 1,500,000 individuals worldwide. Through its network of 2,108 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to 163,517 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. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME, FME3) and the New York Stock Exchange (FMS, FMS-p).
For more information about Fresenius Medical Care visit the Company s website at www.fmc-ag.com.
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.
Fresenius Medical Care
Statements of Earnings
(in US-$ thousands, except share and per share data)
Three Months Ended December 31, Twelve Months Ended December 31,
2006 2005 % Change 2006 2005 % Change
Net revenue
Dialysis Care 1,749,326 1,256,776 39.2 % 6,377,390 4,866,833 31.0 %
Dialysis Products 603,025 515,594 17.0 % 2,121,648 1,904,986 11.4 %
Total net revenue 2,352,351 1,772,370 32.7 % 8,499,038 6,771,819 25.5 %
Cost of revenue 1,532,894 1,191,153 28.7 % 5,621,482 4,563,681 23.2 %
Gross profit 819,457 581,217 41.0 % 2,877,556 2,208,138 30.3 %
Selling, general and administrative 451,808 326,504 38.4 % 1,548,369 1,218,265 27.1 %
Gain on sale of dialysis clinics (40,233 )
Research and development 13,946 10,859 28.4 % 51,293 50,955 0.7 %
Operating income (EBIT) 353,703 243,854 45.0 % 1,318,127 938,918 40.4 %
Interest income (5,588 ) (6,913 ) -19.2 % (20,432 ) (18,187 ) 12.3 %
Interest expense 101,764 53,344 90.8 % 371,678 191,379 94.2 %
Interest expense, net 96,176 46,431 107.1 % 351,246 173,192 102.8 %
Earnings before income taxes and minority interest 257,527 197,423 30.4 % 966,881 765,726 26.3 %
Income tax expense 99,088 81,592 21.4 % 413,489 308,748 33.9 %
Minority interest 6,415 299 16,646 2,026
Net income 152,024 115,532 31.6 % 536,746 454,952 18.0 %
Operating income (EBIT) 353,703 243,854 45.0 % 1,318,127 938,918 40.4 %
Depreciation and amortization 87,440 68,153 28.3 % 308,698 251,452 22.8 %
EBITDA 441,143 312,007 41.4 % 1,626,825 1,190,370 36.7 %
Total bad debt expenses 48,456 38,732 177,285 140,799
Earnings per ordinary share $ 1.55 $ 1.18 31.1 % $ 5.47 $ 4.68 17.0 %
Earnings per ordinary ADS $ 0.52 $ 0.39 31.1 % $ 1.82 $ 1.56 17.0 %
Weighted average number of shares
Ordinary shares 97,125,582 70,000,000 96,873,968 70,000,000
Preference shares 1,218,442 27,610,971 1,191,792 26,789,816
Percentages of revenue
Cost of revenue 65.2 % 67.2 % 66.1 % 67.4 %
Gross profit 34.8 % 32.8 % 33.9 % 32.6 %
Selling, general and administrative 19.2 % 18.4 % 18.2 % 18.0 %
Gain on sale of dialysis clinics 0.0 % 0.0 % -0.5 % 0.0 %
Research and development 0.6 % 0.6 % 0.6 % 0.8 %
Operating income (EBIT) 15.0 % 13.8 % 15.5 % 13.9 %
Interest expense, net 4.1 % 2.6 % 4.1 % 2.6 %
Earnings before income taxes and minority interest 10.9 % 11.1 % 11.4 % 11.3 %
Income tax expense 4.2 % 4.6 % 4.9 % 4.6 %
Minority interest 0.3 % 0.0 % 0.2 % 0.0 %
Net income 6.5 % 6.5 % 6.3 % 6.7 %
EBITDA 18.8 % 17.6 % 19.1 % 17.6 %
Fresenius Medical Care
Segment and Other Information
Three Months Ended December 31, Twelve Months Ended December 31,
2006 2005 % Change 2006 2005 % Change
Net revenue
North America 1,658 1,194 38.9 % 6,025 4,577 31.6 %
International 694 578 20.1 % 2,474 2,195 12.7 %
Total net revenue 2,352 1,772 32.7 % 8,499 6,772 25.5 %
Operating income (EBIT)
North America 260 173 50.5 % 965 644 49.8 %
International 123 101 22.0 % 440 362 21.7 %
Corporate (29 ) (30 ) -1.1 % (87 ) (67 ) 29.6 %
Total operating income (EBIT) 354 244 45.0 % 1,318 939 40.4 %
Operating income in percentage of revenue
North America 15.7 % 14.5 % 16.0 % 14.1 %
International 17.7 % 17.4 % 17.8 % 16.5 %
Total 15.0 % 13.8 % 15.5 % 13.9 %
Excluding SFAS 123(R) and one-time items 1)
Operating income (EBIT)
North America 284 173 64.2 % 958 644 48.7 %
International 123 101 22.0 % 440 362 21.7 %
Corporate (24 ) (16 ) 52.6 % (69 ) (45 ) 54.6 %
Total operating income (EBIT) 383 258 48.4 % 1,329 961 38.3 %
Operating income in percentage of revenue
North America 17.1 % 14.5 % 15.9 % 14.1 %
International 17.7 % 17.4 % 17.8 % 16.5 %
Total 16.3 % 14.6 % 15.6 % 14.2 %
Employees
Full-time equivalents 56,803 47,521
Fresenius Medical Care
Reconciliation of non US-GAAP financial measures to the most directly comparable US-GAAP financial measures
Three Months Ended December 31, Twelve Months Ended December 31,
2006 2005 % Change 2006 2005 % Change
Operating performance excluding SFAS 123(R) and one-time items 1)
Operating income (EBIT) 354 244 45 % 1,318 939 40 %
SFAS 123 (R) and one-time items 2) 29 14 11 22
Operating income (EBIT) excluding SFAS 123(R) and one-time items 1) 383 258 48 % 1,329 961 38 %
Percent of revenue 16.3 % 14.6 % 15.6 % 14.2 %
Net income 152 116 32 % 537 455 18 %
SFAS 123 (R) and one-time items 2) 20 11 47 17
Net income excluding SFAS 123(R) and one-time items 1) 172 127 35 % 584 472 24 %
Segment information North America
Net revenue 1,658 1,194
Costs of revenue and research and development 1,117 838
Selling, general and administrative 281 183
Costs of revenue and operating expenses 1,398 1,021
Operating income (EBIT) 260 173
One-time items 2) 24
Operating income (EBIT) excluding one-time items 284 173
Percent of revenue 17.1 % 14.5 %
Dialysis Products revenue incl. and excl. internal sales
North America
Dialysis Products revenue incl. internal sales 284 237
less internal sales (131 ) (92 )
Dialysis Products external sales 153 145
International
Dialysis Products revenue incl. internal sales 501 421
less internal sales (51 ) (51 )
Dialysis Products external sales 450 370
Reconciliation of cash flow from operating activities to EBITDA
Total EBITDA 1,627 1190
Interest expense, net (351 ) (173 )
Income tax expense (413 ) (309 )
Change in working capital and other non cash items 45 (38 )
Net cash provided by operating activities 908 670
Annualized EBITDA 3)
Operating income (EBIT) last twelve months 1,367 939
Depreciation and amortization last twelve months 326 251
Non cash charges 35 14
Annualized EBITDA 1,728 1,204
1) These non US-GAAP financial measures are provided to assist readers in evaluation of Fresenius Medical Care s underlying operating performance.
2) Costs related to the change of accounting principles for stock options (SFAS 123 R), the gain from the sale of dialysis clinics, one-time costs associated with the transformation of legal form, restructuring costs, in-process R&D and the write-off of deferred financing costs related to the 2003 senior credit facility in 2006 and one-time costs associated with the transformation of legal form and the Settlement and related legal fees of the shareholder suit in 2005.
3) EBITDA 2006: Pro forma numbers including RCG, after FTC mandated divestitures, excluding restructuring costs and in-process R&D and excluding the gain from the sale of dialysis clinics.
Fresenius Medical Care
December 31, 2006 December 31, 2005
Assets
Current assets 3,412 2,461
Intangible assets 7,554 4,043
Other non-current assets 2,079 1,479
Total assets 13,045 7,983
Shareholders equity and liabilities
Current liabilities 2,376 1,578
Long-term liabilities 5,799 2,431
Shareholders equity 4,870 3,974
Total shareholders equity and liabilities 13,045 7,983
Equity/assets ratio: 37 % 50 %
Debt
Short-term borrowings 331 151
Short-term borrowings from related parties 5 19
Current portion of long-term debt and capital lease obligations 160 126
Long-term debt and capital lease obligations, less current portion 3,829 707
Trust Preferred Securities 1,254 1,188
Total debt 5,579 2,191
Fresenius Medical Care
Twelve Months Ended December 31,
2006 2005
Operating activities
Net income 537 455
Depreciation / amortization 309 251
Change in working capital and other non cash items 126 (36 )
Net tax payments related to clinic divestitures and RCG acquisition (64 )
Cash Flow from operating activities 908 670
Investing activities
Purchases of property, plant and equipment (467 ) (315 )
Proceeds from sale of property, plant and equipment 17 18
Capital expenditures, net (450 ) (297 )
Free Cash Flow 458 373
Acquisitions, net of cash acquired (4,307 ) (125 )
Proceeds from divestitures 516
Free Cash Flow after investing activities (3,333 ) 248
Financing activities
Change in accounts receivable securitization program 172 (242 )
Change in intercompany debt (16 ) 14
Change in other debt 3,035 64
Proceeds from exercise of stock options 54 80
Proceeds from conversion of preference shares into ordinary shares 307
Change in minority interests (15 ) 1
Dividends paid (154 ) (137 )
Cash Flow from financing activities 3,383 (220 )
Effects of exchange rates on cash 24 (2 )
Net increase in cash 74 26
Cash at beginning of period 85 59
Cash at end of period 159 85
Fresenius Medical Care
Reconciliation of Cash Flow
Three Months Ended December 31, Twelve Months Ended December 31,
2006 2005 2006 2005
Net cash provided by operating activities adjusted 443 283 1,106 805
Tax payments for prior years (78 ) (99 ) (124 )
RCG acquisition (99 )
Cash out for transformation & settlement (5 ) (11 )
Net cash provided by operating activities 443 200 908 670
Capital expenditures (net) (177 ) (450 )
Free Cash Flow adjusted 266 656
Tax payments for prior years (99 )
RCG acquisition (99 )
Free Cash Flow 266 458
Divestitures adjusted 0 0
RCG acquisition 9 516
Divestitures 9 516
Acquisitions adjusted (115 ) (159 )
RCG acquisition (3 ) (4,148 )
Acquisitions (118 ) (4,307 )
Free Cash Flow after acquisitions and divestitures adjusted 151 497
Tax payments for prior years (99 )
RCG acquisition 6 (3,731 )
Free Cash Flow after acquisitions and divestitures 157 (3,333 )
Fresenius Medical Care
Quarterly Performance Scorecard - Revenue
Three months ended December 31,
(in US-$ thousands, except per-treatment revenue)
2006 cc 2005 cc
North America
Net revenue 1,658,076 1,194,127
Growth year-over-year 38.9 % 8.7 %
Dialysis Care 1,504,896 1,048,708
Growth year-over-year 43.5 % 7.1 %
U.S. per treatment 328 302
Per treatment 325 299
Sequential growth 1.2 % 1.0 %
Growth year-over-year 8.7 % 3.7 %
Dialysis Products
incl. internal sales 283,866 237,281
Growth year-over-year 19.6 % 11.8 %
External sales 153,180 145,419
Growth year-over-year 5.3 % 21.6 %
International
Net revenue 694,274 578,244
Growth year-over-year 20.1 % 14.0 % 6.9 % 12.2 %
Dialysis Care 244,430 208,069
Growth year-over-year 17.5 % 12.6 % 10.8 % 15.4 %
Per treatment 138 133 127 133
Sequential growth 4.7 % -2.0 %
Growth year-over-year 8.8 % 4.3 % 0.7 % 4.9 %
Dialysis Products
incl. internal sales 501,055 421,368
Growth year-over-year 18.9 % 12.4 % 7.8 % 13.4 %
External sales 449,844 370,175
Growth year-over-year 21.5 % 14.8 % 4.8 % 10.4 %
Fresenius Medical Care
Quarterly Performance Scorecard - Dialysis Care Volume
Three months ended December 31,
2006 2005
North America
Number of treatments 4,540,797 3,435,057
Treatments per day 57,475 43,477
Per day sequential growth 0.9 % 0.1 %
Per day year-over-year growth 32.2 % 3.5 %
of which:
- Acquisition RCG 32.9 % 0.0 %
- FTC divestitures -3.2 % 0.0 %
- Other acquisitions 0.5 % 1.4 %
- Same market growth year-over-year 2.3 % 2.8 %
- Adjustments for closed/sold facilities, yield and other -0.3 % -0.7 %
International
Number of treatments 1,765,471 1,634,687
Same market growth year-over-year 9.1 % 7.6 %
Fresenius Medical Care
Quarterly Performance Scorecard - Expenses
Three months ended December 31,
2006 2005
North America
Costs of revenue and operating expenses
Percent of revenue 1) 84.3 % 85.5 %
Selling, general and administrative
Percent of revenue 1) 17.0 % 15.3 %
Bad debt expenses
Percent of revenue 2.9 % 3.1 %
Dialysis Care operating expenses/Treatment (in US-$) 267 256
Sequential growth -0.5 % 0.8 %
Growth year-over-year 4.4 % 2.5 %
Total Group
Costs of revenue and operating expenses
Percent of revenue 2) 85.0 % 86.2 %
Selling, general and administrative
Percent of revenue 2) 19.2 % 18.4 %
Effective tax rate 38.5 % 41.3 %
1) Includes 1.4% restructuring costs and in-process R&D in 2006.
2) Includes 1.3% related to change in accounting principles for stock options (SFAS 123 (R)), one-time costs associated with restructuring, in-process R&D and the transformation of legal form in 2006 and 0.8% related to one-time costs associated with the transformation of legal form and the settlement and related legal fees of the shareholders suit in 2005.
Fresenius Medical Care
Quarterly Performance Scorecard - Cash Flow/Investing Activities
Three months ended December 31,
(in US-$ thousands, except number of de novos)
2006 2005
Total Group
Operating Cash Flow 442,839 200,314
Percent of revenue 18.8 % 11.3 %
Free Cash Flow before acquisitions 265,606 64,840
Percent of revenue 11.3 % 3.7 %
Acquisitions, net 117,745 39,244
Divestitures (9,012 )
Capital expenditures, net 177,234 135,474
Percent of revenue 7.5 % 7.6 %
Maintenance 75,640 61,161
Percent of revenue 3.2 % 3.5 %
Growth 101,594 74,313
Percent of revenue 4.3 % 4.2 %
Number of de novos 26 14
North America 18 6
International 8 8
Fresenius Medical Care
Quarterly Performance Scorecard - Balance Sheet
Three months ended December 31,
2006 2005
Total Group
Debt (in US-$million) 5,579 2,191
Debt/EBITDA 3.2 1.8
North America
Days sales outstanding 59 63
Sequential development 1.7 % 0.0 %
Year-over-year development -6.3 % -6.0 %
International
Days sales outstanding 119 120
Sequential development -2.5 % -1.6 %
Year-over-year development -0.8 % 0.8 %
Fresenius Medical Care
Quarterly Performance Scorecard
Three months ended December 31,
2006 2005
Clinical Performance (FME only)
North America (U.S.)
Urea reduction >= 65% 91 % 91 %
Single Pool Kt/v > 1.2 95 % 94 %
Hemoglobin >= 11g/dl 83 % 82 %
Albumin >= 3.5 g/dl* 80 % 79 %
Hospitalization days per patient (12 months ending December 31,) 11.7 11.9
Demographics (FME only)
North America (U.S.)
Average age (yr) 62 61
Average time on dialysis (yr) 3.5 3.4
Average body weight (kg) 78 77
Prevalence of diabetes 52 % 52 %
Tags: FMS Viatris Investor Conferences Healthcare investor conferences healthcare conferences UBS Global Healthcare
Last updated: Feb 22, 2007