Quarterly Report • Nov 3, 2009
Quarterly Report
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| Q1-3/2009 | Q1-3/2008 | Change | ||
|---|---|---|---|---|
| Sales | Million EUR | 77.8 | 51.5 | 51% |
| Return on revenue before tax (operational) | % | 13% | 11% | 15% |
| EBITDA | Million EUR | 16.1 2 | 1.1 | not comparable |
| EBIT | Million EUR | 10.8 | 14.9 | not comparable |
| EBT | Million EUR | 9.8 | 14.3 | not comparable |
| EBT (operational) | Million EUR | 9.8 | 5.6 | 74% |
| Net income/loss before other shareholders' interests | Million EUR | 8.0 | 9.3 | not comparable |
| Profit | Million EUR | 5.3 | 11.0 | not comparable |
| Earnings per share (basic) | EUR | 1.44 | 3.51 | not comparable |
| Earnings per share (operational, basic) | EUR | 1.44 | 0.94 | 54% |
| Operational cash flow | Million EUR | 12.0 | 0.8 | >100% |
| Depreciation and amortization on non-current assets | Million EUR | 5.3 | 6.1 | -14% |
| Staff as of September 30 | Persons | 519 | 419 2 | 4% |
The awarding of the EANM Eckert & Ziegler Abstract Award to five aspiring young scientists on the occasion of the annual congress of the European Association of Nuclear Medicine (EANM) in Barcelona.
The 100th MultiSource® Co-60 HDR (High Dose Rate) cancer irradiation device was supplied to Thailand.
The official version of this quarterly report is in German. The English translation is provided as a convenience to our shareholders. While we strive to provide an accurate and readable version of our quarterly report in English, the technical nature of a quarterly report often yields awkward phrases and sentences. We understand this can cause confusion. So, please always refer to the German quarterly report for the authoritative version.
In the first nine months of 2009, the Eckert & Ziegler Group set new records with sales of EUR 78 million and Group profits of EUR 5.3 million, thus far exceeding the existing operative records. Compared with last year's period, sales increased by EUR 26 million, or 51%. Compared with the same nine-month period in the previous year, the profit after tax and minority interests increased by EUR 2.4 million, or 79%, if the special effect resulting from the IBt consolidation in that period is excluded. The profit per share for the three quarters of 2009 taken together equals EUR 1.44.
This enormous success is based on the very positive figures from all three operative segments. Sales in the therapy segment have increased by 26%, or approx. EUR 5 million. The drivers of growth were above all the tumor irradiation equipment, sales of which increased by 55%, or about EUR 2 million, due in particular to increased sales to eastern Europe. The first sales from the Russian project amounting to about EUR 3 million were already included in the second quarter of 2009. International Brachytherapy s.a. (IBt), an associated company of Eckert & Ziegler, had in the first half of the year set up a joint venture with a Russian state fund corporation to manufacture prostate cancer implants in Russia, and had begun supplying plant and equipment.
In the Nuclear Medicine and Industry segment, sales have almost doubled from EUR 22.2 million to EUR 39.6 million. This resulted from the combined effects of including the Nuclitec sales, the increased sales of robust drill hole sources, and a USD exchange rate improvement of 6%.
Despite the loss of sales in Italy, the Radiopharmaceuticals segment grew by 38%. The two main product categories, Modular-Lab and diagnostics for positron emission tomography (PET), continued their uninterrupted growth trend from the previous quarters. Added to this were Nuclitec's aurigamedical sales.
The Therapy segment is turning into an earnings machine. Last year's restructuring costs had a detrimental effect, resulting in only a very modest profit. Now, however, this highly profitable operational business is making a decisive contribution to increasing Group profits. In addition, the start-up of the Russian project already provided additional profits in the second quarter.
The Nuclear Medicine and Industry segment was still the main sources of revenues, just as in previous periods. Sales have increased by 79%. Approximately a third of that, i.e. 25% growth, can be seen in profits after tax and minority interests, which have increased by EUR 0.9 million compared with the same period last year and which now stand at EUR 4.3 million. The results also show that Nuclitec had been integrated successfully and was likewise turning in profits.
The Radiopharmaceuticals segment continues to make a profit despite high launch costs for introducing new products. Gains from the deconsolidation of the Italian stake further increased profits.
The Other segment includes the costs of the holding company which was faced with high lawyer fees in connection with the IBt lawsuit during the current financial year.
The brief segment statistics on the following page (in thousands of euros) illustrate the sources of turnover and profit.
The superlative key figure of the first nine months of 2009 is the operative cash flow of EUR 12.0 million, which also sets a new record. Although earnings for the period declined compared to the previous quarters, the operating cash flow continued to increase, and amounts to EUR 5.5 million in the third quarter of 2009 alone.
External turnover (in TEUR)
Therapy Nuclear Radio- Other Total (IBt) Medicine and pharma-Industry ceuticals External turnover Q1-3/2008 18,916 22,164 10,374 0 51,454 Q1-3/2009 23,877 39,631 14,319 0 77,827 Profit after tax Q1-3/2008 477 3,672 -634 35 3,550 Q1-3/2009 4,038 4,492 148 -660 8,018 Net profit ratio in % Q1-3/2008 3% 17% -6% 7% Q1-3/2009 17% 11% 1% 10% Turnover growth absolute +4,961 +17,467 +3,945 +26,373 in % +26% +79% +38% +51% Profit growth absolute +3,561 +820 +782 +4,468 in % +747% +22% +126%
As each segment has different minority interests, profit after tax was used as a reference. The figures for 2008 have been adjusted to compensate for the special effects of the IBt consolidation.
A comparison with the first three quarters of 2008 is not very informative because in the comparison period the non-cash effects were dominant, but only a slight operational cash inflow was posted. This is in stark contrast to 2009, where the cash flow from business activities is above the profit figure for the period, which itself is very high.
The main reason for this success lies in the fact that, despite the huge increase in sales, receivables were able to be reduced once the payment of the first Russian project turnover, which was only made in October, is disregarded. Inventories were also able to be reduced. Only the reduction of accounts payable led to liquidity outflows.
The investments of EUR 8.2 million for the Nuclitec shares, less the cash reserves, and in property, plant and equipment were largely financed by the capital increase and by taking out loans totaling EUR 5.1 million. This means that the cash gain from the operative capital flow of EUR 12.0 million was reduced by a total of EUR 3.1 million from investments and financing. The dividend payment of EUR 1.1 million is also to be deducted, as well as the change due to the purchase/issue of EUR 0.2 million own shares. Overall, the cash reserves increased by EUR 7.5 million to EUR 14.8 million on September 30, 2009.
Work in the Therapy segment concentrated on the development of a complete plant for the production of prostate cancer implants for Russia. The specification was finalized for most of the plant's modules, and the actual development phase was begun.
The range of accessories for the cancer irradiation devices was expanded with improved applicators for use in treating breast cancer and new Fletcher applicators for use in gynecology.
In the Radiopharmaceuticals and the Nuclear Medicine and Industry segments, the focus was on the ongoing further development of existing product lines.
As of September 30, 2009, the Eckert & Ziegler Group had 348 employees in Germany, and a total of 519 employees worldwide. Compared with the end of 2008, the number of staff increased by 110 (December 31, 2008: 409). This increase is mainly due to the inclusion of the Nuclitec companies.
The sales target for the 2009 financial year is EUR 100 million. The Executive Board is maintaining its profits forecast of EUR 6.6 million (EUR 1.80 per share), although this figure does not include any special effects of the whole or partial reversal of provisions in connection with the legal dispute regarding IBt (EUR 7.1 million).
Profit after tax (in TEUR)
■ The 628,633 shares from the increase in capital decided upon in January 2009 were authorized for trading in the regulated market (Prime Standard) of the Frankfurt stock exchange.
■ International Brachytherapy S.A. (IBt), an associated company of Eckert & Ziegler AG, has supplied the 100th MultiSource® Co-60 HDR (High Dose Rate) cancer irradiation device. The Vajira Hospital in Bangkok, Thailand will use it principally to treat tumors of the uterus, breast and esophagus.
■ Eckert & Ziegler awarded the EANM Eckert & Ziegler Abstract Award to five nuclear medicine researchers for their outstanding scientific work. The award ceremony took place at the annual congress of the European Association of Nuclear Medicine in Barcelona.
Photos (from top to bottom):
MultiSource® applicator for brachytherapy treatment of gynecologic tumors.
The Vajira Hospital in Bangkok will use the MultiSource® cancer irradiation device principally to treat tumors of the uterus, breast and esophagus.
This year's EANM Eckert & Ziegler Abstract Award was awarded to nuclear medicine researchers for their outstanding work in the fields of cancer diagnostics and therapies.
| Quarterly Report | Quarterly Report | 9-monthly Report | 9-monthly Report | |
|---|---|---|---|---|
| III/2009 | III/2008 | |||
| 07-09/2009 | 07-09/2008 | 01-09/2009 | 01-09/2008 | |
| TEUR | TEUR | TEUR | TEUR | |
| Net sales | 25,474 | 18,640 | 77,827 | 51,454 |
| Cost of sales | -12,710 | -10,835 | -37,454 | -29,305 |
| Gross profit on sales | 12,764 | 7,805 | 40,373 22 | ,149 |
| Selling expenses | -4,075 | -3,532 | -14,023 | -9,976 |
| General and administrative expenses | -4,975 | -3,446 | -14,484 | -9,871 |
| Research and non-capitalized development expenses | -782 | -1,337 | -1,725 | -3,409 |
| Other operating income | 205 | 1,235 | 878 | 2,631 |
| Other operating expenses | -29 | -643 | -256 | -729 |
| Profit from operations | 3,108 | 82 | 10,763 | 795 |
| Other financial items | -137 | 352 | 56 | 14,142 |
| Earnings before interest and taxes (EBIT) | 2,971 | 434 | 10,819 | 14,937 |
| Interest received | 10 | 55 | 40 | 97 |
| Interest paid | -345 | -198 | -1,068 | -702 |
| Profit before tax | 2,636 | 291 | 9,791 | 14,332 |
| Income tax expense | -429 | -824 | -1,773 | -5,003 |
| Profit from continuing operations | 2,207 | -533 | 8,018 | 9,329 |
| Profit from discontinued operations, net | - | - | 97 | - |
| Net income | 2,207 | -533 | 8,115 | 9,329 |
| Profit/loss attributable to minority interests | -853 | 2,184 | -2,796 | 1,698 |
| Dividend to shareholders of Eckert & Ziegler AG | 1,354 | 1,651 | 5,319 | 11,027 |
| Earnings per share | ||||
| Basic | 0.36 | 0.53 | 1.44 | 3.51 |
| Diluted | 0.36 | 0.52 | 1.44 | 3.49 |
| Average number of shares in circulation (basic) | 3,751 | 3,143 | 3,686 | 3,143 |
| Average number of shares in circulation (diluted) | 3,771 | 3,161 | 3,700 | 3,161 |
| 9-monthly Report | 9-monthly Report | |
|---|---|---|
| 01-09/2009 | 01-09/2008 | |
| TEUR | TEUR | |
| Cash flows from operating activities: | ||
| Profit for the period | 8,116 | 9,329 |
| Adjustments for: | ||
| Depreciation and amortization | 5,268 | 6,132 |
| Proceeds from grants less release of deferred income from grants | 45 | -403 |
| Deferred tax | -410 | 2,655 |
| Unrealized foreign currency gains/losses | -51 | -841 |
| Long-term provisions, other non-current liabilities | 394 | -1,002 |
| Gains/losses on the sale of consolidated companies | - | -13,985 |
| Gains/losses on the disposal of non-current assets | 49 | - |
| Gains/losses on the sale of securities | - | -77 |
| Other | -54 | 33 |
| Changes in current assets and liabilities: | ||
| Receivables | -487 | -456 |
| Inventories | 613 | -535 |
| Prepaid expenses, other current assets | -176 | -287 |
| Trade accounts payable and accounts payable to related parties | -1,680 | -562 |
| Income tax liabilities | -1,174 | 486 |
| Other liabilities | 1,525 | 351 |
| Cash inflows generated from operating activities | 11,978 | 838 |
| Cash flows from investment activities: | ||
| Purchase/sale of non-current assets | -4,007 | -5,714 |
| Acquisition of consolidated companies | -4,320 | 2,179 |
| Purchase/sale of shareholdings | 28 | 40 |
| Purchase/sale of securities | 101 | 690 |
| Cash inflows/outflows from investment activities | -8,198 | -2,805 |
| Cash flows from financing activities: | ||
| Dividends paid | -1,132 | -786 |
| Cash inflow from capital increase | 2,959 | - |
| Change in long-term borrowings | 5,427 | 3,758 |
| Change in short-term borrowings | -3,295 | 712 |
| Acquisition of own shares | -431 | - |
| Own shares used for share options or acquisitions | 218 | - |
| Cash inflows/outflows from financing activities | 3,746 | 3,684 |
| Effect of exchange rates on cash and cash equivalents | -66 | 54 |
| Increase (reduction) in cash and cash equivalents | 7,460 | 1,771 |
| Cash and cash equivalents at beginning of period | 7,311 | 4,375 |
| Cash and cash equivalents at end of period | 14,771 | 6,146 |
| Sep. 30, 2009 Dec. 31, 2008 TEUR TEUR ASSETS Non-current assets Intangible assets 46,269 38,726 Property, plant and equipment 2 7,422 2 3,807 Equity investments - 278 Deferred tax 2,001 1,210 Other assets 1,027 1,118 |
|---|
| Total non-current assets 76,719 65,139 |
| Current assets |
| Cash and cash equivalents 14,771 7,311 |
| Securities 236 332 |
| Trade accounts receivable 18,388 13,985 |
| Inventories 12,532 8,555 |
| Other assets 2,984 2,464 |
| Assets held for disposal - 1,012 |
| Total current assets 48,911 33,659 |
| Total assets 125,630 98,798 |
| EQUITY AND LIABILITIES |
| Shareholders' equity |
| Subscibed capital 3,910 3,250 |
| Capital reserves 33,256 30,316 |
| Retained earnings 14,702 10,946 |
| Other reserves -3,736 -3,297 |
| Own shares -787 -359 |
| Equity due to the shareholders of Eckert & Ziegler AG 47,345 40,856 |
| Minority interests 4,264 1,964 |
| Total shareholders' equity 51,609 42,820 |
| Non-current liabilities |
| Long-term borrowings and finance lease obligations 17,324 10,761 |
| Deferred income from grants and other deferred income 1,458 1,416 |
| Deferred tax 1,660 1,147 |
| Retirement benefit obligations 5,421 420 |
| Other provisions 2 3,815 15,969 |
| Other liabilities 584 529 |
| Total non-current liabilities 50,262 30,242 |
| Current liabilities |
| Short-term borrowings and finance lease obligations 3,527 7,751 |
| Trade accounts payable 3,823 4,286 |
| Advance payments received 2,202 1,002 |
| Deferred income from grants and other deferred income 374 371 |
| Current tax payable 486 916 |
| Other liabilities 13,347 10,285 |
| Liabilities held for disposal - 1,125 |
| Total current liabilities 2 3,759 2 5,736 |
| Total equity and liabilities 125,630 98,798 |
| Balance December 31, 2008 | 3,250,000 | 3,250 | 30,316 | 10,946 | 7 | -3,304 | -359 | 40,856 | 1,964 | 42,820 |
|---|---|---|---|---|---|---|---|---|---|---|
| Provisions offset by own shares | 566 | 566 | 566 | |||||||
| Purchase of minority interests | 0 | 3,179 | 3,179 | |||||||
| Dividends paid | -786 | -786 | -104 | -890 | ||||||
| Total income for the period | 0 | 0 | 0 | 4,502 | -35 | 472 | 0 | 4,939 | -1,465 | 3,474 |
| Profit of the year | 4,502 | 4,502 | -1,465 | 3,037 | ||||||
| Total of expenditures and income directly entered in equity |
0 | 0 | 0 | 0 | -35 | 472 | 0 | 437 | 0 | 437 |
| Reversal of unrealized gains/losses on securities at previous balance sheet date |
-42 | -42 | -42 | |||||||
| Unrealized gains/losses on securities at balance sheet date (after tax of EUR 3 thousand) |
7 | 7 | 7 | |||||||
| Foreign currency translation differences |
472 | 472 | 472 | |||||||
| Balance January 1, 2008 | 3,250,000 | 3,250 2 | 9,750 | 7,230 | 42 | -3,776 | -359 | 36,137 | 354 | 36,491 |
| TEUR | TEUR | TEUR | TEUR | TEUR | TEUR | TEUR | TEUR | TEUR | ||
| Shares | value | reserve | earnings | securities | differences | shares | shareholders | shares | equity | |
| Nominal | Capital | Retained | gains/losses on | exchange | Own | attributable to | Minotity | holders' | ||
| Subscribed capital | Unrealized | Foreign currency | Equity | share | ||||||
| Cumulative other equity items | Group |
| Cumulative other equity items | Group | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Subscribed capital | Unrealized | Foreign currency | Equity | share | ||||||
| Nominal | Capital | Retained | gains/losses on | exchange | Own | attributable to | Minotity | holders' | ||
| Shares | value | reserve | earnings | securities | differences | shares | shareholders | shares | equity | |
| TEUR | TEUR | TEUR | TEUR | TEUR | TEUR | TEUR | TEUR | TEUR | ||
| Balance January 1, 2009 | 3,250,000 | 3,250 | 30,316 | 10,946 | 7 | -3,304 | -359 | 40,856 | 1,964 | 42,820 |
| Foreign currency translation differences |
-443 | -443 | -443 | |||||||
| Unrealized gains/losses on securities at balance sheet date |
||||||||||
| (after tax of EUR 5 thousand) | 11 | 11 | 11 | |||||||
| Reversal of unrealized | ||||||||||
| gains/losses on securities at previous balance sheet date |
-7 | -7 | -7 | |||||||
| Total of expenditures and income | ||||||||||
| directly entered in equity | 0 | 0 | 0 | 0 | 4 | -443 | 0 | -439 | 0 | -439 |
| Profit of the year | 5,320 | 5,320 2 | ,796 | 8,116 | ||||||
| Total income for the period | 0 | 0 | 0 | 5,320 | 4 | -443 | 0 | 4,881 2 | ,796 | 7,677 |
| Dividends paid | -1,132 | -1,132 | 0 | -1,132 | ||||||
| Purchase and sale of minority interests |
0 | -496 | -496 | |||||||
| Application of own shares | ||||||||||
| for acquisitions and | ||||||||||
| to service share options | 31,650 | 32 | 177 | 4 2 | 13 2 | 13 | ||||
| Acquisition or own shares | 432 | -432 | -432 | -432 | -432 | |||||
| Capital increase | 628,633 | 629 2 | ,330 2 | ,959 2 | ,959 | |||||
| Balance September 30, 2009 | 3,910,283 | 3,910 | 33,256 | 14,702 | 11 | -3,747 | -787 | 47,345 | 4,264 | 51,609 |
| Nuclear Medicine and Industry |
Radio Therapy pharmaceuticals |
Other | Elimination | Total | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 01-09 2009 |
01-09 2008 |
01-09 2009 |
01-09 2008 |
01-09 2009 |
01-09 2008 |
01-09 2009 |
01-09 2008 |
01-09 2009 |
01-09 2008 |
01-09 2009 |
01-09 2008 |
|
| TEUR | TEUR | TEUR | TEUR | TEUR | TEUR | TEUR | TEUR | TEUR | TEUR | TEUR | TEUR | |
| Sales to external customers | 39,631 22 | ,164 2 | 3,877 | 18,916 | 14,319 | 10,374 | 0 | 0 | 0 | 0 | 77,827 | 51,454 |
| Sales to other segments | 392 | 191 2 | 81 | 1,545 2 | 9 | 60 | 762 | 1,068 | -1,464 | -2,864 | 0 | 0 |
| Total segmental sales | 40,023 22 | ,355 2 | 4,158 2 | 0,461 | 14,348 | 10,434 | 762 | 1,068 | -1,464 | -2,864 | 77,827 | 51,454 |
| Segment profit | ||||||||||||
| before interest and profit taxes (EBIT) | 7,022 | 5,730 | 4,485 | -3,877 | 872 | -236 | -1,549 | 13,329 | -11 | -9 | 10,819 | 14,937 |
| Interest yield and paid | -416 | -312 | -464 | -305 | -749 | -726 | 590 | 729 | 11 | 9 | -1,028 | -605 |
| Income tax expense | -2,114 | -1,746 | 17 | -352 2 | 5 | -1,640 2 | 99 | -1,265 | -1,773 | -5,003 | ||
| Profit before minority interests | 4,492 | 3,672 | 4,038 | -4,534 | 148 | -2,602 | -660 | 12,793 | 8,018 | 9,329 | ||
| Special effects before minority interests | 0 | 0 | 0 | -5,011 | 0 | -1,968 | 0 | 12,758 | 0 | 5,779 | ||
| Profit before minority interests | ||||||||||||
| without special effects | 4,492 | 3,672 | 4,038 | 477 | 148 | -634 | -660 | 35 | 8,018 | 3,550 |
| Nuclear Medicine | Radio- | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| and Industry | Therapy | pharmaceuticals | Other | Total | ||||||
| 2 | 01-09 009 |
01-09 2008 |
01-09 2009 |
01-09 2008 |
01-09 2009 |
01-09 2008 |
01-09 2009 |
01-09 2008 |
01-09 2009 |
01-09 2008 |
| TEUR | TEUR | TEUR | TEUR | TEUR | TEUR | TEUR | TEUR | TEUR | TEUR | |
| Segmental assets | 60,593 | 31,152 | 45,728 | 43,903 | 18,240 | 16,577 | 76,997 | 51,891 2 | 01,558 | 143,523 |
| Elimination of inter-segmental shares, equity investments and receivables |
-77,928 | -58,521 | ||||||||
| Deferred tax assets 2 |
,001 | 8,961 | ||||||||
| Consolidated total assets | 125,631 | 93,963 | ||||||||
| Segmental liabilities | -32,924 | -13,597 | -20,987 | -17,308 | -20,803 | -19,078 | -26,743 | -5,662 -101,457 | -55,645 | |
| Elimination of inter-segmental liabilities 2 | 9,095 | 17,282 | ||||||||
| Deferred tax liabilities | -1,660 | -2,134 | ||||||||
| Consolidated liabilities | -74,022 | -40,497 | ||||||||
| Investments | 1,052 | 3,679 | 1,277 | 1,263 | 1,675 | 750 | 3 22 | 4,007 | 5,714 | |
| Depreciations (without non-scheduled depreciations) | -1,695 | -743 | -1,956 | -2,333 | -1,469 | -1,159 | -148 | -143 | -5,268 | -4,378 |
| Non cash income/expenses | -62 2 | 59 | 113 | 1,760 | -237 | -1,735 2 | 13 | 13,336 2 | 7 | 13,620 |
| Sales by geographic areas | Jan.–Sep. 2009 | Jan.–Sep. 2008 | ||
|---|---|---|---|---|
| Million EUR | % | Million EUR | % | |
| Europe | 48.3 | 62 | 31.3 | 60 |
| North America | 21.0 | 27 | 15.2 | 30 |
| Asia/Pacific | 7.8 | 10 | 4.0 | 8 |
| Other | 0.7 | 1 | 1.0 | 2 |
| Total | 77.8 | 100 | 51.5 | 100 |
These unaudited interim consolidated financial statements as of September 30, 2009 comprise the financial statements of Eckert & Ziegler Strahlen- und Medizintechnik AG and its subsidiaries (also referred to hereinafter as "Eckert & Ziegler AG").
The consolidated financial statements (interim financial statements) of Eckert & Ziegler AG as of September 30, 2009, have been prepared, like the annual financial statements for 2008, in accordance with the International Financial Reporting Standards (IFRS). All of the standards of the London-based International Accounting Standards Board (IASB) which were applicable in the EU on the balance sheet date, as well as the relevant interpretations of the International Financial Reporting Interpretations Committee (IFRIC) and the Standing Interpretations Committee (SIC), have been observed. The accounting and valuation methods described in the appendix to the annual financial statements for 2008 have been applied unchanged. For the preparation of the consolidated financial statements in compliance with the IFRS, it is necessary for estimates and assumptions to be made that impact on the amount and disclosure of recognized asset values and liabilities, income and expenditures. The actual values may differ from the estimates. Significant assumptions and estimates are made concerning useful lives, earnings attainable from goodwill and non-current assets, the realizability of receivables, and the recognition and measurement of provisions. This interim report contains all of the necessary information and adjustments required to produce a picture which reflects the actual circumstances in respect of the assets, financial situation and earnings position of Eckert & Ziegler AG at the time the interim report was produced. The earnings achieved during the course of the current fiscal year do not necessarily allow conclusions to be drawn about the development of future earnings.
In the consolidated financial statements of Eckert & Ziegler AG, all companies are included where Eckert & Ziegler AG, either indirectly or directly, is able to determine the financial and business policies (control concept).
On January 23, 2009, Eckert & Ziegler AG exercised the purchase option it obtained in December 2008 and purchased all the shares in nuclitec GmbH in Braunschweig, its American subsidiary nuclitec Inc., and the French sister company nuclitec s.a.r.l. The purchase price for the shares amounted to EUR 6,859,000. The ancillary purchase costs amount to EUR 35,000. At the time of publishing this interim financial report, the data gathering required for identifying and evaluating the asset values, debts and potential debts was not yet complete. For this reason, the initial accounting for the acquisition of the company could only be carried out provisionally in accordance with IAS 3.62 at the end of the interim financial statement period.
The acquisition of nuclitec GmbH and its American subsidiary, nuclitec Inc., will be recorded on the balance sheet in this interim financial statement with the following provisional figures:
| Book values | Fair value* | |
|---|---|---|
| TEUR | TEUR | |
| Non-current assets | 5,636 | 9,709 |
| Current assets | 11,329 | 11,329 |
| Non-current debts | -14,080 | -15,366 |
| Current debts | -4,076 | -4,076 |
| Net assets | -1,191 | 1,596 |
| Acquisition costs | 6,158 | |
| Goodwill | 4,562 | |
* The calculation of the fair values of the assets and debts is not yet completed. Therefore provisional values have been used in accordance with IFRS 3.62.
The acquisition of nuclitec s.a.r.l. will be recorded on the balance sheet in this interim financial statement with the following provisional figures:
| Book values | Fair value* | |
|---|---|---|
| TEUR | TEUR | |
| Non-curent assets | 2 2 | |
| Current assets | 1,057 | 1,057 |
| Non-current debts | -398 | -398 |
| Current debts | -287 | -287 |
| Net assets | 374 | 374 |
| Acquisition costs | 736 | |
| Goodwill | 362 |
* The calculation of the fair values of the assets and debts is not yet completed. Therefore provisional values have been used in accordance with IFRS 3.62.
In March 2009, Eckert & Ziegler AG sold its Milan subsidiary Eckert & Ziegler f-con Pharma Italia s.r.l. (FCI) to the Italian company A.C.O.M. – Advanced Center Oncology Macerata SPA. The deconsolidation of FCI resulted in non-cash revenue of EUR 97,000 in the present interim financial statement.
In 2008, Eckert & Ziegler AG invested the Therapy segment business in IBt S.A., Seneffe (Belgium) and, in return for this, received 38.5% of the ordinary shares (which equates to 29.9% of the voting shares) in IBt S.A. arising from a capital increase and the loan-related claims. In June 2008, Eckert & Ziegler BEBIG GmbH took over the implants manufacturer Isotron
Isotopentechnik GmbH. In January 2009 the shares of the companies nuclitec GmbH, nuclitec s.a.r.l. and nuclitec Inc. were purchased. In the first quarter of 2009 the shares in Eckert & Ziegler f-con Pharma Italia s.r.l. were sold.
Compared with the first nine months of 2008, this has impacted substantially on the financial situation and earnings position of the Group, which means that it is difficult to compare the Group report with the previous year's report.
The financial statements for the companies outside the European Monetary Union are translated based on the concept of functional currency. The following exchange rates were used for the currency translation: See table below
As of September 30, 2009, Eckert & Ziegler AG held 140,916 own shares. This equates to a share of 3.6% of the Company's nominal capital.
In respect of the substantial transactions with affiliated persons, we refer to the publications made in the consolidated financial statements dated December 31, 2008.
| Country | Currency | Exchange rate on Sep. 30, 2009 |
Exchange rate on Dec. 31, 2008 |
Average rate: Jan. 1 - Sep. 30, 2009 |
Average rate: Jan. 1 - Sep. 30, 2008 |
|---|---|---|---|---|---|
| USA | USD | 1.4592 | 1.4097 | 1.3606 | 1.4398 |
| Czech Rebublic | CZK | 25.2204 2 | 6.6426 2 | 6.9679 2 | 4.6554 |
| Great Britain | GBP | 0.9166 | 0.974 | 0.8872 | n.a. |
| Sweden | SEK | 10.2247 | 10.9861 | 10.7215 | n.a. |
Eckert & Ziegler Strahlen- und Medizintechnik AG has been commissioned to produce an innovative cancer medication for the American drug developer Molecular Insight Pharmaceuticals (NASDAQ: MIPI) based in Cambridge, MA. Under the terms of the agreement signed on October 21, 2009, Eckert & Ziegler will set up a new production plant for this purpose over the next few years at its Braunschweig location with financial support from MIPI. The compound Onalta® is a novel radiotherapeutic product candidate under development for the treatment of neuroendocrine tumors. The production plants will be used both for the manufacture of test batches for clinical development and, later, for the manufacture of the approved radiopharmaceuticals.
Berlin, November 3, 2009
Dr. Andreas Eckert Chief Executive Officer
Dr. Edgar Löffler Executive Board Member
Dr. André Heß Executive Board Member
November 03, 2009 Quarterly Report III/2009
November 11, 2009 German Equity Forum in Frankfurt
March 30, 2010 Annual Report 2009
March 30, 2010 Balance Press Conference in Berlin
May 04, 2010 Quarterly Report I/2010
May 20, 2010 Annual General Meeting in Berlin
August 03, 2010 Quarterly Report II/2010
November 02, 2010 Quarterly Report III/2010
November 2010 German Equity Forum in Frankfurt
Eckert & Ziegler Strahlen- und Medizintechnik AG
Karolin Riehle Investor Relations
Robert-Rössle-Str. 10 13125 Berlin www.ezag.com
Telephone+49 (0) 30 94 10 84 - 0 Telefax +49 (0) 30 94 10 84 - 112 E-Mail [email protected]
ISIN DE000565970 ISIN DE000A0L1L69 WKN 565970
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