Full Press Release Details
| Investor News | Oliver Maier | |||
| Head of Investor Relations | ||||
| Fresenius Medical Care | ||||
| Else-Kr ner-Stra e 1 | ||||
| 61352 Bad Homburg | ||||
| Germany | ||||
| T +49 6172 609-2601 | ||||
| F +49 6172 609-2301 | ||||
| oliver.maier@fmc-ag.com | ||||
| www.fmc-ag.com |
Fresenius Medical Care Reports Third Quarter 2012 And Nine Months 2012 Results
3rd Quarter 2012 Summary:
| Net revenue | $ | 3,418 million | +7 | % | ||
| Operating income (EBIT) | $ | 568 million | +6 | % | ||
| Net income * | $ | 270 million | -3 | % | ||
| Earnings per ordinary share | $ | 0.88 | -4 | % |
Nine Months 2012 Summary:
| Net revenue | $ | 10,095 million | +8 | % | ||
| Operating income (EBIT) | $ | 1,659 million | +11 | % | ||
| Net income * | $ | 930 million | +22 | % | ||
| Earnings per ordinary share | $ | 3.05 | +21 | % | ||
| Earnings excluding investment gain: | ||||||
| Net income * | $ | 790 million | +4 | % | ||
| Earnings per ordinary share | $ | 2.59 | +3 | % |
* Attributable to shareholders of Fresenius Medical Care AG & Co. KGaA
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 third quarter and first nine months of 2012.
Net revenue for the third quarter of 2012 increased by 7% to $3,418 million (+11% at constant currency) compared to the third quarter of 2011. Organic revenue growth worldwide was 4%. Dialysis services revenue grew by 10% to $2,605 million (+12% at constant currency) and dialysis product revenue decreased by 1% to $813 million and increased by 7% at constant currency.
North America revenue for the third quarter of 2012 increased by 13% to $2,249 million. Dialysis services revenue grew by 15% to $2,047 million with a same market treatment growth of 4%. Average revenue per treatment for U.S. clinics increased to $349 in the third quarter of 2012 compared to $345 for the corresponding quarter in 2011. Dialysis product revenue decreased by 1% to $202 million. After adjusting for the Liberty acquisition, dialysis product revenue increased by 2%.
International revenue decreased by 2% to $1,163 million and increased by 7% at constant currency. Organic revenue growth was 7%. Dialysis services revenue decreased by 4% to $558 million and increased by 6% at constant currency. Dialysis product revenue decreased by 1% to $605 million and increased by 9% at constant currency.
Operating income (EBIT) for the third quarter of 2012 increased by 6% to $568 million compared to $534 million in the third quarter of 2011. This resulted in an operating margin of 16.6% for the third quarter of 2012 compared to 16.8% for the corresponding quarter in 2011.
In North America, the operating margin decreased from 18.8% to 18.7%. Average costs per treatment for U.S. clinics increased by $2 to $281 in the third quarter of 2012 as compared to $279 in the third quarter of 2011.
In the International segment, the operating margin decreased from 17.3% to 16.8%.
Net interest expense for the third quarter of 2012 was $108 million, compared to $68 million in the third quarter of 2011. This development was mainly attributable to the higher level of indebtedness as a result of the issuance of various tranches of senior notes over the course of 2011 and 2012 to finance dialysis clinic acquisitions.
Income tax expense was $153 million for the third quarter of 2012 compared to $163 million in the third quarter of 2011, reflecting effective tax rates of 33.3% and 35.0%, respectively.
Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the third quarter of 2012 was $270 million, a decrease of 3% compared to the corresponding quarter of 2011.
Earnings per ordinary share (EPS) for the third quarter 2012 was $0.88 compared to $0.92 for the third quarter of 2011. The weighted average number of shares outstanding for the third quarter of 2012 was approximately 305.5 million shares, compared to 303.2million shares for the third quarter of 2011. The increase in shares outstanding resulted from stock option exercises in the past 12 months.
In the third quarter of 2012, the company generated $535 million in cash from operations, an increase of 16% compared to the corresponding figure last year and representing 15.7% of revenue. The cash flow generation was supported by the favorable earnings development as well as the favorable development of working capital items including inventory.
A total of $164 million was spent for capital expenditures, net of disposals. Free cash flow before acquisitions was $371 million (representing 10.8% of revenue) compared
to $313 million in the third quarter of 2011. A total of $37 million in cash was spent for acquisitions and investments, net of divestitures. Free cash flow after acquisitions and divestitures was $334 million, compared to $264 million in the third quarter of 2011.
Revenue and Earnings
Net revenue for the first nine months of 2012 increased by 8% to $10,095 million (+11% at constant currency) compared to the first nine months of 2011. Organic revenue growth was 4% in the first nine months of 2012.
Operating income (EBIT) for the first nine months of 2012 increased by 11% to $1,659 million compared to $1,488 million in the first nine months of 2011. The operating income margin increased to 16.4% for the first nine months of 2012 as compared to 16.0% in the same period in 2011.
Net interest expense for the first nine months of 2012 was $311 million compared to $214 million in the same period of 2011.
For the first nine months of 2012, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA was $930 million, up by 22% from the first nine months of 2011. This includes a non-taxable investment gain of $140 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. Excluding this investment gain, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA increased by 4% to $790 million.
Income tax expense for the first nine months of 2012 was $462 million compared to $436 million in the same period in 2011, reflecting effective tax rates of 31.1% and 34.2%, respectively. Excluding the investment gain the effective tax rate for the first nine months of 2012 was 34.3%.
In the first nine months of 2012, earnings per ordinary share rose by 21% to $3.05 and by 3% to $2.59 if excluding the investment gain. The weighted average number of
shares outstanding during the first nine months of 2012 was approximately 304.7 million compared to 302.7 million shares for the first nine months of 2011.
Cash from operations during the first nine months of 2012 was $1,467 million compared to $950 million for the same period in 2011, representing 14.5% of revenue.
A total of $438 million in cash was spent for capital expenditures, net of disposals. Free cash flow before acquisitions for the first nine months of 2012 was $1,029 million compared to $570 million in the same period in 2011. A total of $1,557 million in cash was spent for acquisitions, net of divestitures. Free cash flow after acquisitions and divestitures was minus $528 million compared to minus $601 million in the first nine months of last year.
Please refer to the attachments for a complete overview on the third quarter and first nine months 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 September 30, 2012, Fresenius Medical Care treated 256,521 patients worldwide, which represents a 12% increase compared to the previous year s figure. North America provided dialysis treatments for 163,454 patients, an increase of 16%. Including 31 clinics managed by Fresenius Medical Care North America, the number of patients in North America was 165,754. The International segment provided dialysis treatment to 93,067 patients, an increase of 6% over the prior year s figure.
As of September 30, 2012, the company operated a total of 3,135 clinics worldwide, which represents a 9% increase compared to the previous year s figure. The number of clinics is comprised of 2,056 clinics in North America (2,087 including managed clinics), and 1,079 clinics in the International segment, representing an increase of 12% and 4%, respectively.
During the first nine months of 2012, Fresenius Medical Care delivered approximately 28.6 million dialysis treatments worldwide. This represents an increase of 12%, compared to last year s figure. North America accounted for 18.1 million treatments, an
increase of 12%. The International segment delivered 10.5 million treatments, an increase of 13%.
As of September 30, 2012, Fresenius Medical Care had 85,368 employees (full-time equivalents) worldwide, compared to 79,159 employees at the end of 2011. This increase of more than 6,200 employees is due to overall growth in the company s business and acquisitions including Liberty Dialysis Holdings, Inc.
The ratio of debt to earnings before interest, taxes, depreciation and amortization (EBITDA) increased from 2.55 at the end of the third quarter of 2011 to 2.81 at the end of the third quarter of 2012. The debt/EBITDA ratio at the end of the second quarter 2012 was 2.92.
During the third quarter of 2012, Standard & Poor s removed the company s ratings from review and affirmed the company s corporate credit as BB+ with a stable outlook. 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.
Successful Renewal of Credit Agreement
Fresenius Medical Care successfully renewed its syndicated credit agreement including a revolving facility and a long term loan. The refinancing of those facilities was well received in the bank market. The company entered into a $3.85 billion syndicated credit agreement, comprised of 5-year revolving facilities (including a $200 million U.S. Dollar facility, a 500 million Euro facility and a $ 400 million multi-currency facility) and a 5-year $2.6 billion term loan. Proceeds from the credit facilities were used to refinance the
company s existing credit facilities, which otherwise would have matured on March 31, 2013, and for general corporate purposes.
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 ~ $14 billion in 2012(1).
Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to grow to ~ $1.14 billion(1). This does neither include the investment gain in the amount of $140 million in the first nine months of 2012 nor does it consider charges of up to $70 million after tax mainly related to the intended renegotiation of the distribution, manufacturing and supply agreement for iron products in North America to reflect changes in the market and a donation to the American Society of Nephrology foundation to establish the Ben J. Lipps Research Fellowship Program.
For 2012, the company expects to spend ~ $700 million on capital expenditures and ~ $1.8 billion on acquisitions. The debt/EBITDA ratio is expected to be below 3.0 by the end of 2012.
Ben Lipps, chief executive officer of Fresenius Medical Care, commented: In light of the negative implications from the difficult economic environment and from currency fluctuations, we achieved good operating results with an excellent operating cash flow in the third quarter of 2012. In summary, we are confirming our guidance for the full year at the lower end of the previously indicated range. We anticipate some special collection efforts related to services performed in prior years and other initiatives in the fourth quarter that will help us to achieve our guidance. The integration progress of our latest acquisitions continues and we are very pleased with our Quality Improvement programs and patient outcomes continuing to improve in nutritional status and reduced hospital days. The CEO transition to Rice Powell continues on track with the appointment of Ron Kuerbitz as the new CEO for North America effective January 2013.
(1) We define the ~ sign as a +/- 0-2% deviation from the respective numbers.
Fresenius Medical Care will hold a conference call to discuss the results of the third quarter and first nine months of 2012 on Wednesday, October 31, 2012, at 3:30 p.m. CET / 10:30 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 3,135 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to 256,521 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.
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
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
| Statement of Earnings | 2012 | 2011 | Change | 2012 | 2011 | Change | |||||||||||
| (in US-$ thousands, except share data) | |||||||||||||||||
| (unaudited) | |||||||||||||||||
| Revenue | |||||||||||||||||
| Dialysis care | 2,674,893 | 2,425,092 | 10.3 | % | 7,894,374 | 7,071,971 | 11.6 | % | |||||||||
| Less: patient service bad debt provision | 69,503 | 58,025 | 19.8 | % | 206,665 | 166,991 | 23.8 | % | |||||||||
| Net dialysis care | 2,605,390 | 2,367,067 | 10.1 | % | 7,687,709 | 6,904,980 | 11.3 | % | |||||||||
| Dialysis products | 812,548 | 816,999 | -0.5 | % | 2,406,957 | 2,400,560 | 0.3 | % | |||||||||
| Total net revenue | 3,417,938 | 3,184,066 | 7.3 | % | 10,094,666 | 9,305,540 | 8.5 | % | |||||||||
| Cost of revenue | 2,305,627 | 2,123,792 | 8.6 | % | 6,785,972 | 6,268,373 | 8.3 | % | |||||||||
| Gross profit | 1,112,311 | 1,060,274 | 4.9 | % | 3,308,694 | 3,037,167 | 8.9 | % | |||||||||
| Selling, general and administrative | 522,177 | 504,868 | 3.4 | % | 1,614,625 | 1,490,663 | 8.3 | % | |||||||||
| Gain on sale of dialysis clinics | (58 | ) | (34,019 | ) | |||||||||||||
| Research and development | 27,867 | 27,612 | 0.9 | % | 83,327 | 80,544 | 3.5 | % | |||||||||
| Income from equity method investees | (5,317 | ) | (5,940 | ) | -10.5 | % | (14,672 | ) | (22,402 | ) | -34.5 | % | |||||
| Operating income (EBIT) | 567,642 | 533,734 | 6.4 | % | 1,659,433 | 1,488,362 | 11.5 | % | |||||||||
| Investment gain | (139,600 | ) | |||||||||||||||
| Interest income | (7,210 | ) | (16,882 | ) | -57.3 | % | (40,012 | ) | (42,882 | ) | -6.7 | % | |||||
| Interest expense | 115,175 | 84,955 | 35.6 | % | 351,052 | 257,124 | 36.5 | % | |||||||||
| Interest expense, net | 107,965 | 68,073 | 58.6 | % | 311,040 | 214,242 | 45.2 | % | |||||||||
| Income before taxes | 459,677 | 465,661 | -1.3 | % | 1,487,993 | 1,274,120 | 16.8 | % | |||||||||
| Income tax expense | 153,036 | 162,797 | -6.0 | % | 462,354 | 436,057 | 6.0 | % | |||||||||
| Net income | 306,641 | 302,864 | 1.2 | % | 1,025,639 | 838,063 | 22.4 | % | |||||||||
| Less: Net income attributable to noncontrolling interests | 36,779 | 23,609 | 55.8 | % | 95,942 | 77,346 | 24.0 | % | |||||||||
| Net income attributable to shareholders of FMC AG & Co. KGaA | 269,862 | 279,255 | -3.4 | % | 929,697 | 760,717 | 22.2 | % | |||||||||
| Operating income (EBIT) | 567,642 | 533,734 | 6.4 | % | 1,659,433 | 1,488,362 | 11.5 | % | |||||||||
| Depreciation and amortization | 152,212 | 141,422 | 7.6 | % | 446,463 | 413,695 | 7.9 | % | |||||||||
| EBITDA | 719,854 | 675,156 | 6.6 | % | 2,105,896 | 1,902,057 | 10.7 | % | |||||||||
| Earnings per ordinary share | $ | 0.88 | $ | 0.92 | -4.1 | % | $ | 3.05 | $ | 2.51 | 21.4 | % | |||||
| Earnings per ordinary ADS | $ | 0.88 | $ | 0.92 | -4.1 | % | $ | 3.05 | $ | 2.51 | 21.4 | % | |||||
| Weighted average number of shares | |||||||||||||||||
| Ordinary shares | 301,531,173 | 299,280,448 | 300,720,312 | 298,714,674 | |||||||||||||
| Preference shares | 3,971,607 | 3,964,914 | 3,968,082 | 3,960,315 | |||||||||||||
| In percent of revenue | |||||||||||||||||
| Cost of revenue | 67.5 | % | 66.7 | % | 67.2 | % | 67.4 | % | |||||||||
| Gross profit | 32.5 | % | 33.3 | % | 32.8 | % | 32.6 | % | |||||||||
| Selling, general and administrative | 15.3 | % | 15.9 | % | 16.0 | % | 16.0 | % | |||||||||
| Gain on sale of dialysis clinics | 0.0 | % | -0.3 | % | |||||||||||||
| Research and development | 0.8 | % | 0.9 | % | 0.8 | % | 0.9 | % | |||||||||
| Income from equity method investees | -0.2 | % | -0.2 | % | -0.1 | % | -0.2 | % | |||||||||
| Operating income (EBIT) | 16.6 | % | 16.8 | % | 16.4 | % | 16.0 | % | |||||||||
| Investment gain | -1.4 | % | |||||||||||||||
| Interest expense, net | 3.2 | % | 2.1 | % | 3.1 | % | 2.3 | % | |||||||||
| Income before taxes | 13.4 | % | 14.6 | % | 14.7 | % | 13.7 | % | |||||||||
| Income tax expense | 4.5 | % | 5.1 | % | 4.6 | % | 4.7 | % | |||||||||
| Net income attributable to noncontrolling interests | 1.1 | % | 0.7 | % | 1.0 | % | 0.8 | % | |||||||||
| Net income attributable to shareholders of FMC AG & Co. KGaA | 7.9 | % | 8.8 | % | 9.2 | % | 8.2 | % | |||||||||
| EBITDA | 21.1 | % | 21.2 | % | 20.9 | % | 20.4 | % |
Fresenius Medical Care
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||
| Segment and Other Information | 2012 | 2011 | Change | 2012 | 2011 | Change | |||||||
| (in US-$ million, except employees) | |||||||||||||
| (unaudited) | |||||||||||||
| Net revenue | |||||||||||||
| North America | 2,249 | 1,992 | 12.9 | % | 6,602 | 5,888 | 12.1 | % | |||||
| International | 1,163 | 1,187 | -2.0 | % | 3,470 | 3,405 | 1.9 | % | |||||
| Corporate | 6 | 5 | 20.5 | % | 23 | 13 | 72.9 | % | |||||
| Total net revenue | 3,418 | 3,184 | 7.3 | % | 10,095 | 9,306 | 8.5 | % | |||||
| Operating income (EBIT) | |||||||||||||
| North America | 420 | 375 | 12.2 | % | 1,199 | 1,035 | 15.8 | % | |||||
| International | 195 | 205 | -4.8 | % | 597 | 579 | 3.1 | % | |||||
| Corporate | (47 | ) | (46 | ) | 4.2 | % | (137 | ) | (126 | ) | 8.8 | % | |
| Total operating income (EBIT) | 568 | 534 | 6.4 | % | 1,659 | 1,488 | 11.5 | % | |||||
| Operating income in percent of revenue | |||||||||||||
| North America | 18.7 | % | 18.8 | % | 18.2 | % | 17.6 | % | |||||
| International | 16.8 | % | 17.3 | % | 17.2 | % | 17.0 | % | |||||
| Total | 16.6 | % | 16.8 | % | 16.4 | % | 16.0 | % | |||||
| Employees | |||||||||||||
| Full-time equivalents | 85,368 | 77,825 |
Fresenius Medical Care
| Reconciliation of non US-GAAP | |||||||||
| financial measures to the most directly | Three months ended September 30, | Nine months ended September 30, | |||||||
| comparable US-GAAP financial measures | 2012 | 2011 | 2012 | 2011 | |||||
| (in US-$ million) | |||||||||
| (unaudited) | |||||||||
| Segment information North America | |||||||||
| Net revenue | 2,249 | 1,992 | |||||||
| Costs of revenue and research and development | 1,528 | 1,343 | |||||||
| Selling, general and administrative | 308 | 280 | |||||||
| Income from equity method investees | (7 | ) | (6 | ) | |||||
| Costs of revenue and operating expenses | 1,829 | 1,617 | |||||||
| Operating income (EBIT) | 420 | 375 | |||||||
| In percent of revenue | 18.7 | % | 18.8 | % | |||||
| Dialysis products revenue incl. and excl. internal sales | |||||||||
| North America | |||||||||
| Dialysis products revenue incl. internal sales | 398 | 401 | |||||||
| Less internal sales | (196 | ) | (197 | ) | |||||
| Dialysis products external sales | 202 | 204 | |||||||
| International | |||||||||
| Dialysis products revenue incl. internal sales | 717 | 723 | |||||||
| Less internal sales | (112 | ) | (115 | ) | |||||
| Dialysis products external sales | 605 | 608 | |||||||
| Reconciliation of cash flow from operating activities to EBITDA (1) | |||||||||
| Total EBITDA | 2,106 | 1,902 | |||||||
| Interest expense, net | (311 | ) | (214 | ) | |||||
| Income tax expense | (462 | ) | (436 | ) | |||||
| Change in working capital and other non-cash items | 134 | (302 | ) | ||||||
| Net cash provided by operating activities | 1,467 | 950 | |||||||
| Annualized EBITDA (2) | |||||||||
| Operating income (EBIT) last twelve months | 2,329 | 2,027 | |||||||
| Depreciation and amortization last twelve months | 614 | 548 | |||||||
| Non-cash charges | 61 | 53 | |||||||
| Annualized EBITDA | 3,004 | 2,628 |
(1) EBITDA is the basis for determining compliance with certain covenants in Fresenius Medical Care s long-term debt instruments.
(2) EBITDA 2012: Pro forma numbers including Liberty Dialysis Holdings Inc., after FTC mandated divestitures.
Fresenius Medical Care
| September 30, | December 31, | ||||
| Balance Sheet | 2012 | 2011 | |||
| (in US-$ million) | (unaudited) | (audited) | |||
| Assets | |||||
| Current assets | 5,944 | 5,695 | |||
| Intangible assets | 12,038 | 9,873 | |||
| Other non-current assets | 3,878 | 3,965 | |||
| Total assets | 21,860 | 19,533 | |||
| Liabilities and equity | |||||
| Current liabilities | 3,352 | 4,263 | |||
| Long-term liabilities | 9,069 | 6,799 | |||
| Noncontrolling interests subject to put provisions | 546 | 410 | |||
| Total equity | 8,893 | 8,061 | |||
| Total liabilities and equity | 21,860 | 19,533 | |||
| Equity/assets ratio: | 41 | % | 41 | % | |
| Debt | |||||
| Short-term borrowings | 114 | 99 | |||
| Short-term borrowings from related parties | 95 | 28 | |||
| Current portion of long-term debt and capital lease obligations | 499 | 1,589 | |||
| Long-term debt and capital lease obligations, less current portion | 7,733 | 5,495 | |||
| Total debt | 8,441 | 7,211 |
Fresenius Medical Care
| Cash Flow Statement | |||||
| Nine months ended September 30, | 2012 | 2011 | |||
| (in US-$ million) | |||||
| (unaudited) | |||||
| Operating activities | |||||
| Net income | 1,026 | 838 | |||
| Depreciation / amortization | 447 | 414 | |||
| Investment gain | (140 | ) | |||
| Change in working capital and other non-cash items | 134 | (302 | ) | ||
| Cash Flow from operating activities | 1,467 | 950 | |||
| Investing activities | |||||
| Purchases of property, plant and equipment | (450 | ) | (397 | ) | |
| Proceeds from sale of property, plant and equipment | 12 | 17 | |||
| Capital expenditures, net | (438 | ) | (380 | ) | |
| Free Cash Flow | 1,029 | 570 | |||
| Acquisitions, net of cash acquired, and purchases of intangible assets | (1,789 | ) | (1,171 | ) | |
| Proceeds from divestitures | 232 | ||||
| Acquisitions, net of divestitures | (1,557 | ) | (1,171 | ) | |
| Free Cash Flow after investing activities | (528 | ) | (601 | ) | |
| Financing activities | |||||
| Change in accounts receivable securitization program | 13 | (510 | ) | ||
| Change in intercompany debt | 66 | 82 | |||
| Change in other debt | 903 | 1,815 | |||
| Proceeds from exercise of stock options | 95 | 69 | |||
| Redemption of Trust Preferred Securities | (654 | ) | |||
| Distributions to noncontrolling interests | (132 | ) | (95 | ) | |
| Contributions from noncontrolling interests | 15 | 18 | |||
| Dividends paid | (272 | ) | (281 | ) | |
| Cash Flow from financing activities | 688 | 444 | |||
| Effects of exchange rates on cash | 2 | 30 | |||
| Net increase (decrease) in cash | 162 | (127 | ) | ||
| Cash at beginning of period | 457 | 523 | |||
| Cash at end of period | 619 | 396 |
Fresenius Medical Care
| Quarterly Performance Scorecard - Revenue | |||||||||
| Three months ended September 30, | 2012 | cc | 2011 | cc | |||||
| (in US-$ thousands, except per-treatment revenue) | |||||||||
| (unaudited) | |||||||||
| North America | |||||||||
| Net revenue | 2,248,724 | 1,991,773 | |||||||
| Growth year-over-year | 12.9 | % | -1.7 | % | |||||
| Net Dialysis care | 2,046,921 | 1,787,666 | |||||||
| Growth year-over-year | 14.5 | % | -1.6 | % | |||||
| U.S. per treatment | 349 | 345 | |||||||
| Per treatment | 342 | 337 | |||||||
| Sequential growth | -0.6 | % | -1.0 | % | |||||
| Growth year-over-year | 1.5 | % | -4.2 | % | |||||
| Dialysis products | |||||||||
| Incl. internal sales | 397,511 | 401,486 | |||||||
| Growth year-over-year | -1.0 | % | 2.9 | % | |||||
| External sales | 201,802 | 204,107 | |||||||
| Growth year-over-year | -1.1 | % | -2.0 | % | |||||
| International | |||||||||
| Net revenue | 1,163,362 | 1,187,436 | |||||||
| Growth year-over-year | -2.0 | % | 7.3 | % | 20.4 | % | 12.9 | % | |
| Net dialysis care | 558,468 | 579,401 | |||||||
| Growth year-over-year | -3.6 | % | 5.6 | % | 26.5 | % | 19.8 | % | |
| Per treatment | 158 | 173 | 170 | 161 | |||||
| Sequential growth | -0.8 | % | -4.3 | % | |||||
| Growth year-over-year | -7.2 | % | 1.7 | % | 6.5 | % | 0.8 | % | |
| Dialysis products | |||||||||
| Incl. internal sales | 717,388 | 722,894 | |||||||
| Growth year-over-year | -0.8 | % | 9.0 | % | 17.3 | % | 9.3 | % | |
| External sales | 604,894 | 608,035 | |||||||
| Growth year-over-year | -0.5 | % | 9.0 | % | 15.1 | % | 6.9 | % |
cc = 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.
Fresenius Medical Care
| Quarterly Performance Scorecard - Dialysis Care Volume | |||||
| Three months ended September 30, | 2012 | 2011 | |||
| (unaudited) | |||||
| North America | |||||
| Number of treatments | 6,178,211 | 5,489,224 | |||
| Treatments per day | 79,208 | 69,484 | |||
| Per day sequential growth | 0.6 | % | 0.7 | % | |
| Per day year-over-year growth | 14.0 | % | 3.9 | % | |
| Same market growth year-over-year | 3.7 | % | 2.9 | % | |
| International | |||||
| Number of treatments | 3,538,895 | 3,407,680 | |||
| Same market growth year-over-year | 2.0 | % | 6.5 | % |
Fresenius Medical Care
| Quarterly Performance Scorecard - Expenses | |||||
| Three months ended September 30, | 2012 | 2011 | |||
| (unaudited) | |||||
| North America | |||||
| Costs of revenue and operating expenses, gain on sale of dialysis clinics and income from equity method investees | |||||
| In percent of revenue | 81.3 | % | 81.2 | % | |
| Selling, general and administrative | |||||
| In percent of revenue | 13.7 | % | 14.1 | % | |
| U.S. Dialysis care operating expenses/treatment (in US-$) | 281 | 279 | |||
| Sequential growth | 0.5 | % | -1.3 | % | |
| Growth year-over-year | 0.9 | % | -3.6 | % | |
| Dialysis Care operating expenses/treatment (in US-$) | 276 | 274 | |||
| Sequential growth | 0.4 | % | -1.1 | % | |
| Growth year-over-year | 0.8 | % | -3.5 | % | |
| Total Group | |||||
| Costs of revenue and operating expenses, gain on sale of dialysis clinics and income from equity method investees | |||||
| In percent of revenue | 83.4 | % | 83.2 | % | |
| Selling, general and administrative | |||||
| In percent of revenue | 15.3 | % | 15.9 | % | |
| Effective tax rate | 33.3 | % | 35.0 | % |
Fresenius Medical Care
| Quarterly Performance Scorecard - Cash Flow/Investing Activities | |||||
| Three months ended September 30, | 2012 | 2011 | |||
| (in US-$ thousands, except number of de novos) | |||||
| (unaudited) | |||||
| Total Group | |||||
| Operating cash flow | 535,414 | 463,137 | |||
| In percent of revenue | 15.7 | % | 14.5 | % | |
| Free cash flow before acquisitions | 370,503 | 313,323 | |||
| In percent of revenue | 10.8 | % | 9.8 | % | |
| Acquisitions and investments, net of divestitures | 37,111 | 48,835 | |||
| Capital expenditures, net | 164,911 | 149,814 | |||
| In percent of revenue | 4.8 | % | 4.7 | % | |
| Maintenance | 93,453 | 84,480 | |||
| In percent of revenue | 2.7 | % | 2.7 | % | |
| Growth | 71,458 | 65,334 | |||
| In percent of revenue | 2.1 | % | 2.1 | % | |
| Number of de novos | 18 | 25 | |||
| North America | 11 | 9 | |||
| International | 7 | 16 |
Fresenius Medical Care
| Quarterly Performance Scorecard - Balance Sheet | |||||
| September 30, | 2012 | 2011 | |||
| (unaudited) | |||||
| Total Group | |||||
| Debt (in US-$ million) | 8,441 | 6,711 | |||
| Debt/EBITDA | 2.8 | 2.6 | |||
| North America | |||||
| Days sales outstanding | 53 | 55 | |||
| International | |||||
| Days sales outstanding | 120 | 118 |
Fresenius Medical Care
| Quarterly Performance Scorecard | |||||
| Three months ended June 30, | 2012 | 2011 | |||
| North America (U.S.) | |||||
| Clinical Performance | |||||
| Single Pool Kt/v > 1.2 | 97 | % | 97 | % | |
| Hemoglobin = 10-12g/dl | 74 | % | 77 | % | |
| Hemoglobin = 10-13g/dl | 83 | % | 89 | % | |
| Calcium = 8.4-10.2mg/dl | 84 | % | 80 | % | |
| Albumin >= 3.5 g/dl (1) | 85 | % | 84 | % | |
| No catheter | 80 | % | 78 | % | |
| Phosphate <= 5.5mg/dl | 66 | % | 64 | % | |
| Hospitalization days per patient (12 months ending September 30) | 9.7 | 9.8 | |||
| Demographics | |||||
| Average age (in years) | 62 | 62 | |||
| Average time on dialysis (in years) | 3.9 | 3.8 | |||
| Average body weight (in kg) | 81 | 81 | |||
| Prevalence of diabetes | 58 | % | 56 | % | |
| Europe, Middle East and Africa | |||||
| Clinical Performance | |||||
| Single Pool Kt/v > 1.2 | 96 | % | 96 | % | |
| Hemoglobin = 10-12g/dl | 59 | % | 57 | % | |
| Hemoglobin = 10-13g/dl | 78 | % | 78 | % | |
| Calcium = 8.4-10.2mg/dl | 77 | % | 78 | % | |
| Albumin >= 3.5 g/dl (1) | 87 | % | 86 | % | |
| No catheter | 82 | % | 82 | % | |
| Phosphate <= 5.5mg/dl | 78 | % | 75 | % | |
| Hospitalization days per patient (12 months ending September 30) | 9.3 | 9.4 | |||
| Demographics | |||||
| Average age (in years) | 64 | 64 | |||
| Average time on dialysis (in years) | 5.3 | 5.0 | |||
| Average body weight (in kg) | 71 | 71 | |||
| Prevalence of diabetes | 27 | % | 28 | % |
(1) International standard BCR CRM470