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Attendo
Quarterly Report • May 6, 2022
3003_10-q_2022-05-06_21188267-ed78-48ad-9cd0-6155a7cd7786.pdf
Quarterly Report
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INTERIM REPORT JANUARY-MARCH 2022
Summary of the first quarter 2022
Q1
- Net sales amounted to SEK 3,482m (3,062). Organic growth was 8.2 percent.
- Lease adjusted EBITA, i.e., EBITA according to the previous accounting standard, was SEK 31m (75), corresponding to a lease adjusted operating margin of 0.9 percent (2.4). Underlying profit, adjusted for the effects of the pandemic and other non-recurring items, is estimated to have increased by approximately SEK 25 million.
- Operating profit (EBITA) amounted to SEK 142m (183), corresponding to an operating margin of 4.1 percent (6.0).
- The loss for the period amounted to SEK -32m (-9). Earnings per share after dilution were SEK -0.20 (-0.06). Adjusted earnings per share after dilution were SEK 0.09 (0.26).
- Free cash flow amounted to SEK 57m (138).
- The number of beds in Attendo's homes at the end of the period was 21,155 (20,852). Occupancy in homes was 84 percent (81).
| Q1 | Jan-Dec | |||
|---|---|---|---|---|
| SEKm | 2022 | 2021 | Δ% | 2021 |
| Net sales | 3,482 | 3,062 | 14% | 12,867 |
| Lease adjusted operating profit (EBITA) ¹ | 31 | 75 | -59% | 400 |
| Lease adjusted operating margin (EBITA)¹, % | 0.9 | 2.4 | - | 3.1 |
| Operating profit (EBITA)¹ | 142 | 183 | -22% | 836 |
| Operating margin (EBITA)¹, % | 4.1 | 6.0 | - | 6.5 |
| Profit for the period | -32 | -9 | - | 59 |
| Earning per share diluted, SEK | -0.20 | -0.06 | - | 0.35 |
| Adjusted earnings per share diluted¹' ², SEK | 0.09 | 0.26 | -65% | 1.48 |
| Free cash flow | 57 | 138 | -58% | 249 |
Group key figures
1) See also definitions of key data and alternative performance measures on pages 28-29.
2) Profit for the period attributable to the parent company shareholders excluding amortization of acquisition related intangible assets, IFRS 16 and items affecting comparability and related tax effects divided with the average number of shares outstanding, after dilution.
HIGH ORGANIC GROWTH BUT PROFITABILITY UNDER PRESSURE DUE TO THE PANDEMIC
Attendo has had strong organic growth since the autumn of 2021, driven mainly by higher prices in Finland combined with normalisation of demand for nursing home beds in Scandinavia. With organic growth of 8 percent and an underlying profit improvement, the first quarter of 2022 was no exception. At the same time, the quarter is impacted by costs related to high sick leave in Finland as a result of the strong transmission of infection in society. This is expected to gradually decrease but will continue to have a negative impact on earnings during the second quarter. The margin for the Attendo Group is expected to increase during the second half of 2022.
Our Scandinavian operation is expected to continue to develop steadily, while developments in the labour market for healthcare professionals in Finland make the outlook for the Finnish market more difficult to assess. We are taking several measures to improve the conditions for staffing in Finland. At the beginning of the second quarter, we acquired a company focused on international recruitment of care staff.
Group: High organic growth and underlying earnings improvement
We are reporting organic growth of around 8 percent during the first quarter, driven mainly by higher customer inflow and price adjustments. This was accompanied, however, by unusually high personnel costs in Finland and lower public support, which had clear impact on performance. Lease adjusted EBITA for the first quarter of 2022 decreased by SEK 44 million compared to 2021, but the underlying profit increased by approximately SEK 25 million adjusted for the impact of the pandemic and other non-recurring items.
The profit impact of the pandemic in Finland will lessen as sick leave normalises, but as virus transmission in Finland is still higher than elsewhere in the Nordic countries, we expect the costs of sick leave will remain elevated also during part of the second quarter. Late in the quarter, we also saw a markedly higher rate of inflation as a consequence of Russia's invasion of Ukraine. Going forward, we estimate that costs will increase due to rising prices for energy, fuel, food and consumable supplies to at least SEK 20 million per quarter at current price levels. We do expect a large part of this to be compensated for starting in 2023, however, through adjustments for inflation in existing contracts.
Martin Tivéus, CEO
"Our key focus areas in Finland in 2022 involve renegotiating all contracts ahead of 2023 to set sustainable terms and addressing staff provision in pace with rising staffing requirements ."
Scandinavia: Stable underlying performance and continued high customer inflow
We opened 60 new nursing home beds in Sweden during the quarter, bringing the total to 450 new beds in the last year. A high rate of new establishment lays the foundation for good organic growth, but constrains profit in the short term when we have more units in the start-up phase in relation to units in a ramp-up phase. The inflow rate has been clearly lower than normal during the pandemic years. Combined with the high number of openings, this has held back occupancy and profitability in Scandinavia. The high inflow rate to nursing homes remained high in the first quarter and with only about 150 new beds planned for 2022, we believe conditions are favourable for continuing to increase occupancy and profitability in our nursing homes.
By virtue of a good occupancy trend combined with acquisitions, we increased sales in Attendo Scandinavia by about 11 percent compared to the same quarter in the preceding year. Lease adjusted EBITA amounted to SEK 66 million, down by around SEK 25 million in relation to the preceding year. The decrease is explained by lower public support, whilst underlying performance in
Scandinavia is in line with the first quarter of 2021, in spite of the high rate of openings during the year.
In the first quarter, Uppsala municipality cancelled Attendo's home care contract in the municipality. The background is that a few former employees in one of Attendo's home care units in Uppsala have acted in bad faith against both Attendo and the municipality. These people have been reported to the police by Attendo. The loss of the contract will reduce annual revenues by about SEK 90 million.
Finland: Continued high virus transmission and greater turbulence in the Finnish labour market are impacting occupancy and profits
Although I am pleased with the strong growth of 12 percent, the overall performance is a disappointment. High sick leave increased personnel costs, public support was lower and inflation led to higher costs for consumables. These factors combined reduced profit by SEK 20 million compared to last year. Adjusted for the exceptionally high sick leave rate in Finland, however, we demonstrated profit growth in the first quarter.
We expect that sick leave will gradually be normalized, but we expect a negative impact on earnings of approximately SEK 10 million per month in our Finnish operations at least during the two initial months of the second quarter of 2022.
The occupancy trend during the first quarter was weak even though there was good underlying demand for care beds in Finland. Average occupancy fell slightly from 86 percent to 85 percent. The high sick leave due to Omicron made it difficult to find substitute employees. As a result, we could not accept customers at the rate we would have preferred, in recognition of the risk of not being able to meet the staffing requirements and because regulations prevent us from accepting new customers into homes where there is active Covid infection among either customers or staff. In addition, we have cancelled several major contracts for renegotiation ahead of 2023. Although we consider it necessary over the long term in order to ensure sustainable terms, this does mean that we will receive considerably fewer new customers in these regions in the short term.
Our key focus areas in Finland in 2022 include renegotiating all contracts ahead of 2023 to set sustainable terms and addressing staff provision in pace with rising staffing requirements.
Increased uncertainty in Finland may delay the timing of the profit target
In recent months, the challenges in the labour market for healthcare professionals in Finland have increased. Increased difficulties in finding qualified staff in
combination with higher staff turnover in the market contribute to rising personnel costs. In addition, occupancy development is slowed down as we are not allowed to accept new customers if we cannot increase staffing at the same time.
Our financial target for 2023 of an adjusted earnings per share of at least SEK 4 is mainly based on improved occupancy in all markets and higher prices in Finland. In addition, there is potential from M&A. While development in Scandinavia is picking up according to plan, we believe that the challenging staffing conditions in Finland are contributing to increased uncertainty regarding both occupancy development and personnel costs in Finland. In our assessment, it is still possible to achieve the profit target in 2023, but given the current development in Finland, there is a risk that the timing may be delayed somewhat.
We have extensive work in progress in Finland to ensure the needs of employees before the summer and before the next step in the staffing reform in April 2023. We work with communication, advocacy work, new introduction programs, clearer career paths, training and compensation models. After the end of the quarter, we also acquired the international recruitment company Silkkitie. Through the acquisition, Attendo will have better opportunities to recruit nurses internationally and the goal is for us to be able to recruit 1,000 additional nurses via Silkkitie by 2024.
Support for Ukraine
We are all profoundly shaken by Russia's invasion of Ukraine, where the human suffering is beyond comprehension. Immediately after the war broke out in February, teams were appointed in Finland and Sweden to determine what we at Attendo can do to help. One of the first actions was to make vacant apartments and homes available to municipalities and government authorities in the Nordic countries. We welcomed the first families from Ukraine after only a week. Attendo has no operations in Ukraine and we believe the most effective way to support the situation in the country is to donate funds to established aid organisations. Attendo chose to donate SEK 500,000 to the Red Cross, which is delivering humanitarian aid in Ukraine. Employees of our local units have also made outstanding efforts on a voluntary basis. It is gratifying to see the heartfelt engagement, capacity to take action and compassion of our employees and their commitment to supporting the numerous people who are fleeing the war.
Martin Tivéus, CEO
Group
January – March 2022
Net sales and operating profit
Net sales increased by 13.7 percent to SEK 3,482m (3,062) during the quarter. Adjusted for currency effects, net sales increased by 11.5 percent. Organic growth accounted for 8.2 percent and the net change due to acquisitions and divestments was 3.3 percent. Organic growth is attributable mainly to higher net sales in Attendo Finland, particularly in care for older people. Sick leave due to Omicron had some negative impact on net sales in both business areas.
Lease adjusted operating profit (EBITA) amounted to SEK 31m (75). The lease adjusted operating margin (EBITA) was 0.9 percent (2.4). Profit decreased in both Attendo Scandinavia and Attendo Finland. A significant increase in transmission of Omicron in society had negative impact on profit in both business areas, particularly in Attendo Finland. Adjusted for pandemic effects and non-recurring costs, profit increased in Attendo Finland with approximately SEK 25m, while profit was in line with last year in Attendo Scandinavia.
Effects on operating profit (EBITA) related to IFRS 16 amounted to SEK 111m (108).
Operating profit (EBITA) amounted to SEK 142m (183) and the operating margin was 4.1 percent (6.0). Currency effects had no material impact on profits.
The total number of beds in operation in all homes at the end of the quarter was 21,155 (20,852), an increase by 1 percent. Occupancy in all homes was 84 percent (81) at the end of the quarter. The number of beds under construction in own operations was 433 across 8 homes.
Operating profit (EBIT) amounted to SEK 127m (15), corresponding to an operating margin (EBIT) of 3.6 percent (5.0). The change is attributable to the same factors described above, as well as lower amortisation of acquisition-related intangible assets.
Net sales per business area, Q1 2022, (SEKm)
Lease adjusted operating profit (EBITA) per business area, Q1 2022, (SEKm)
Adjusted earnings per share, r12 (SEK)
1) Excluding items affecting comparability.
Financial net
Net financial items amounted to SEK -169m (-164) for the quarter, including net interest expense of SEK -9m (-11). Interest expense related to the lease liability for land and buildings in accordance with IFRS 16 amounted to SEK -153m (-143).
Income tax
Income tax for the period amounted to SEK 10m (1), corresponding to a tax rate of 23.1 percent (10.3). Tax for the period was affected by the low profit and temporary differences in profit.
Profit and earnings per share for the period
The loss for the period was SEK -32m (-9), corresponding to basic and diluted earnings per share for shareholders in the parent company of SEK -0.20 (-0.06). Adjusted earnings per share after dilution were SEK 0.09 (0.26).
ATTENDO SCANDINAVIA
Continued strong customer inflow
Individual and family care Social psychiatry
Net sales by service offering,
January – March 2022
Net sales in Attendo Scandinavia amounted to SEK 1,607m (1,447), corresponding to growth of 11.1 percent including currency effects and 11.0 percent excluding currency effects. The increase is attributable mainly to higher net sales in nursing homes, as well as acquisitions. The exceptionally high sick leave due to Omicron had some negative impact on net sales.
Despite the high transmission rate, Attendo Scandinavia managed to sell many beds, resulting in increased occupancy, both in relation to the comparison quarter and to Q4 2021. Occupancy is still lower than it was before the pandemic, both in total and in units that opened before 2020.
Lease adjusted EBITA amounted to SEK 66m (91), corresponding to a lease adjusted operating margin of 4.1 percent (6.3). Sick leave was exceptionally high during the quarter, but public compensation that Attendo Scandinavia received during the quarter offset the higher direct costs related to the Omicron pandemic. Sick leave rate decreased during the quarter, but is still higher than it was before the pandemic. In the comparison quarter, Attendo Scandinavia received SEK 36m in public compensation for certain pandemic-related costs attributable to 2020. Attendo Scandinavia made a
provision of SEK 10m during Q1 2022 for discontinued home care operations in Uppsala, while profit in the comparison quarter was negatively affected by SEK 20m in compensation to a former real estate owner. Adjusted for these items, operating profits were in line with the comparison quarter. Attendo Scandinavia has a high proportion of new units and contracts in start-up phase, which constrains profit.
Effects on operating profit related to IFRS 16 amounted to SEK 47m (45).
Operating profit (EBITA) amounted to SEK 113m (136), corresponding to an operating margin (EBITA) of 7.0 percent (9.4).
One nursing home with a total of 60 beds was opened during the quarter. The number of beds opened in own homes in the last twelve months amounts to 450, which remains a historically high level for Scandinavia. Attendo closed one nursing home during the quarter.
Construction of a nursing home with 60 beds started during the quarter, bringing the total number of beds in own homes under construction at the end of the quarter to 220. Annual sales for outsourcing contracts won but not yet started and outsourcing contracts lost but not yet ended are estimated to a net of SEK -53m.
ATTENDO SCANDINAVIA
Key data per quarter
| Attendo Scandinavia | Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | Q1 2022 |
|---|---|---|---|---|---|
| Number of beds in homes in operation¹ | 6,677 | 6,772 | 6,779 | 7,051 | 7,078 |
| Occupancy in homes¹, % | 77 | 77 | 78 | 80 | 81 |
| Number of opened beds in own homes (r12)² | 497 | 518 | 603 | 594 | 450 |
| Number of beds in own homes under construction² | 592 | 386 | 319 | 220 | 220 |
| Number of home care customers | 9,868 | 10,391 | 10,585 | 10,528 | 10,576 |
1) All homes.
2) Own homes.
ATTENDO FINLAND
High sick leave affects profits negatively
January – March 2022
Net sales in Attendo Finland amounted to SEK 1,875m (1,615) corresponding to growth of 16.1 percent. Adjusted for currency affects, net sales grew by 12.1 percent. The growth is attributable mainly to higher net sales in care for older people as a result of price increases and acquisitions. Total price increases correspond to approximately 5 percent. A significant increase in transmission of Omicron in society, combined with public restrictions led to historically high sick leave. High sick leave and general staff shortage due to new staffing requirements inhibited new inflow of customers. The number of sold nursing home beds and occupancy decreased slightly during the quarter in relation to the preceding quarter, but was higher than in the comparison quarter. The number of home care customers also decreased due to sick leave and resulting staff shortage.
Lease adjusted EBITA amounted to SEK -18m (2) and the lease adjusted EBITA margin was -1.0 percent (0.1). The net effects of public compensation and higher costs due to Omicron are estimated to have a negative impact on profit in the quarter by SEK 40m. The sick leave rate decreased slightly during the quarter but remained at a
historically high level at the end of Q1. In the comparison quarter net effects of the pandemic amounted to SEK 5m in Attendo Finland. Adjusted for estimated Omicron effects and other pandemic effects, profit increased with approximately SEK 25m, particularly in care for older people, mainly due to price effects, but also to more sold beds. The price increases in care for older people have been partially offset by higher operating costs due to higher staffing requirements and higher personnel costs due to staff shortages, as well as high cost inflation during the quarter.
Effects on operating profit (EBITA)related to IFRS 16 amounted to SEK 64m (63).
Operating profit (EBITA) amounted to SEK 46m (64) and the operating margin (EBITA) was 2.5 percent (4.0). Currency effects had no material impact on profits.
In total, 188 beds were opened in the past twelve months. At the end of the quarter, there were 213 beds under construction in own operations.
x
ATTENDO FINLAND
Key data per quarter
| Attendo Finland | Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | Q1 2022 |
|---|---|---|---|---|---|
| Number of beds in homes in operation¹ | 14,175 | 14,086 | 14,156 | 14,042 | 14,077 |
| Occupancy in homes¹, % | 83 | 85 | 85 | 86 | 85 |
| Number of opened beds in own homes (r12)² | 458 | 192 | 328 | 238 | 188 |
| Number of beds in own homes under construction² | 190 | 222 | 130 | 213 | 213 |
| Number of home care customers | 675 | 655 | 581 | 595 | 550 |
1) All homes.
2) Own homes.
Cash flow
January – March 2022
Free cash flow was SEK 57m (138) during the quarter, whereof changes in working capital amounted to SEK 67m (74).
Cash flow from operations was SEK 384m (404). Cash used for net investments in non-current assets was SEK -59m (-33). Business acquisitions reduced cash flow by SEK -6m (-190). Cash flow from investing activities thus amounted to SEK -65m (-223).
Cash flow from financing activities was SEK -318m (-233). Bank loans of SEK 50m (-) were repaid during the quarter. Total cash flow amounted to SEK 1m (-52).
Financial position
Equity attributable to shareholders in the parent amounted to SEK 4,925m (4,932) as of 31 March 2022, representing diluted equity per share attributable to shareholders in the parent of SEK 30.77 (30.27). Net debt amounted to SEK 13,761m (13,115). Lease adjusted net debt, excluding lease liability for land and buildings, amounted to SEK 1,545m (1,643).
Interest-bearing liabilities amounted to SEK 14,278m (13,781) on 31 March 2022. Cash and cash equivalents as of 31 March 2022 amounted to SEK 517m (670) and Attendo had SEK 1,750m (1,800) in unutilised credit facilities.
Net debt/EBITDA was 6.3 (6.4). Lease adjusted net debt/lease adjusted EBITDA was 2.7 (2.8).
| 31 Mar | 31 Dec | ||
|---|---|---|---|
| SEKm | 2022 | 2021 | 2021 |
| Interest-bearing liabilities Provision for post |
14,278 | 13,781 | 13,877 |
| employment benefits | - | 4 | 2 |
| Cash and cash equivalents | -517 | -670 | -513 |
| Net debt | 13,761 | 13,115 | 13,366 |
| Lease liability real estate | -12,216 | -11,472 | -11,776 |
| Lease adjusted net debt | 1,545 | 1,643 | 1,590 |
| 31 Mar | 31 Dec | ||
| SEKm | 2022 | 2021 | 2021 |
| Net debt / EBITDA Lease adjusted net debt / |
6.3 | 6.4 | 6.2 |
| Lease adjusted EBITDA | 2.7 | 2.8 | 2.6 |
Quality and employees
Focus on attracting employees
Our capacity to attract and retain outstanding employees and managers is a key issue in both the short and long term. The challenges are especially great in Finland as needs in the industry are rising at a faster rate than the number of new graduates. We have a comprehensive project ongoing in Finland to ensure that staff requirements are met before the summer holiday season and ahead of the next stage of the staffing reform in April 2023. We have updated everything from communications to the introduction programme and values work to career paths, training and compensation models.
Attendo decided in Q1 2022 to acquire Silk Road Workforce Management (Silkkitie Oy), a company that specialises in recruiting Filipino nurses and providing language instruction so that they can work in the Nordic countries. Attendo has collaborated with Silk Road for many years in both Finland and Sweden. The acquisition will give Attendo access to even more highly skilled nurses in the Finnish market.
Good end-of-life care
Good and dignified care and care in the final stages of life so-called Palliative care is one of the most important tasks in care for older people. For many years, Attendo has registered all deaths in the palliative care register, which is a national quality register with the aim of fact-checking and following developments to improve end-of-life care for patients and their relatives. We work systematically based on the registered indicators to be able to focus on the most important areas in palliative care. Overall, Attendo has improved in six of seven areas between 2020 and 2021, and especially in the areas: Human presence at the moment of death, Documented oral health assessment during the last week of life and Pain assessment. We continuously monitor and analyse our work with palliative care in order to ensure good care and care and continuously improve this important work. With the palliative care register, we can also compare ourselves with other equivalent businesses to further strengthen our learning.
Patient safety in focus
In accordance with the Patient Safety Act, during the first quarter we conducted this year's patient safety reports in all operations where we conduct health and medical care. Our patient safety reports describe the systematic patient safety work, what measures we have worked on and what results have been achieved. In order to strengthen patient safety work, this year we used the new template developed to comply with the national action plan for increased patient safety in health care - this to support the development of our patient safety work. Right now, we are also conducting a pilot where we test the analysis tool developed by Swedish Association of Local Authorities and Regions (SKR) that will support the development of patient safety work based on the national action plan. Based on the Corona Commission's final report at national level, strengthening and developing work in the area of patient safety has been identified and noted as a priority area for health care in care for older people provided by local authorities and private operators.
Courageous response to fire
Attendo's nursing home in Ängelholm, Attendo Solängen, caught fire in the middle of the night on March 15/16 when flames broke out in an adjacent building. When the fire alarm sounded, employees reacted swiftly and were able to help the emergency service safely evacuate all 39 residents to a nearby sports centre. In the afternoon, the 39 customers were moved to another nursing home in Laholm that was unoccupied. In a heroic effort, Attendo employees Rebecca Paulsson and Åsa Luukkonen quickly moved the residents, most of whom are suffering from dementia in various stages, out of the home. They have been nominated as "Swedish Heroes" by the newspaper Aftonbladet. A jury will name six heroes at the televised Swedish Heroes Gala in December 2022.
Significant events in the first quarter
Acquisitions and divestments
A small home care business in Sweden was acquired during the quarter.
Other information
Number of shares
The total number of shares is 161,386,592. Attendo's holding of treasury shares amounts to 473,744, which means the number of shares outstanding at 31 March 2022 was 160,912,848.
Number of employees
The average number of employees in the first quarter was 19,749 (18,012).
Related party transactions
Transactions with related parties are described in the annual report. Related-party transactions take place on market terms. There were no significant transactions with related parties during the period.
Parent company, Attendo AB (publ)
The business of the parent company is to provide services to the subsidiaries and manage shares in subsidiaries. The company's expenses relate mainly to executive salaries, directors' fees and costs for external consultants.
Net sales for the period were SEK 4m (4), and were entirely related to services provided to subsidiaries. Profit for the period after net financial items was SEK 29m (-9). At the end of the quarter, cash and cash equivalents amounted to SEK 0 (0), shares in subsidiaries to SEK 6,494m (6,494), and non-restricted equity to SEK 6,564m (6,001).
Seasonal and calendar effects
Attendo's profitability is affected by factors including seasonal variations, weekends and national public holidays. For Attendo, public holidays and weekends have a negative effect on profitability mainly due to wage compensation for unsocial working hours. For example, profitability is affected by Easter in either the first or second quarter, depending on the quarter in which Easter falls, while the first and fourth quarters are affected by the Christmas and New Year's holidays.
Roundings
Note that roundings occur in text, charts and tables.
Significant events after the reporting date
Annual general meeting
Attendo held the annual general meeting on 26 April. As proposed by the board of directors, the annual general meeting decided that no dividend would be distributed.
The annual general meeting resolved that the board should be composed of seven directors and re-elected the directors Margareta Danelius, Catarina Fagerholm, Alf Göransson, Tobias Lönnevall, Suvi-Anne Siimes and Anssi Soila. Ulf Mattson was elected as new chair.
The annual general meeting resolved to elect the audit firm PwC. PwC has in turn appointed the authorized public accountant Erik Bergh as the principal auditor.
The annual general meeting also resolved in favour of two long-term incentive programs. A program based on warrants directed to senior executives and a performance share program directed to senior executives and key employees.
Acquisitions
After the end of the quarter, Attendo acquired the international recruitment company Silkkitie Oy, which recruits and provides language training to nurses from the Philippines to work in Finland and Sweden.
After the quarter, Attendo entered into an agreement with the intention of acquiring Kaunialan Sairaala Oy, which is a rehabilitation hospital outside Helsinki. The acquisition is subject to a review by the competition authorities.
Risks and uncertainties
All business requires companies to take risks in various forms and to various extents. Risk management, defined as the work involved in identifying, managing and monitoring risks, is a key component of Attendo's strategy and operations. Attendo takes a structured approach to managing risks based on a framework that covers industry and market risks, operational risks and financial risks. External risks related to the conditions for private companies to operate care businesses, political risks, regulatory risks and reputational risks. Operational risks refer to risks directly linked to Attendo's operations, such as occupancy, pricing and access to skilled employees. Financial risks are related to factors including access to capital, exchange rates, interest rates and liquidity. The risks and how Attendo manages them are described in greater detail in Attendo's annual report (see the "Risks and risk management" section in the 2021 annual report, pages 52-55).
Current risks and risk management
In the drive to further develop Attendo, external risks, operational risks and financial risks are assessed in the light of Attendo's strategy and financial targets.
The Covid pandemic remains a significant risk for Attendo, with serious impact on Attendo's business and financial performance. The most significant effects of the pandemic are decreased occupancy and increased personnel costs due to high sick leave among employees.
A comprehensive care reform is ongoing in Finland. One of the aspects of the reform is that staff requirements have been increased in several steps and are planned to increase further in 2023. Higher staff requirements entail higher costs for all providers. Private providers must negotiate with each local authority or county on price compensation for staffing changes, which entails an uncertainty. Costs also arise before each stage (staff requirements) comes into force and there is consequently a lag before compensation is received.
Staff provision in Finnish care for older people is generally strained and the shortage of care workers has been exacerbated by the reform and the effects of the pandemic.
Currently we see no direct effects of Russia's invasion of Ukraine, as Attendo has no operations in any of the countries. On the other hand, we see indirect effects in the form of increased purchase prices for fuel, energy, food and consumables. There is a high risk that increased purchasing costs will not be covered by higher prices during the current year. This is because the company's contract with local authorities normally regulates inflation during the year in next year's prices.
Accounting policies
The group applies International Financial Reporting Standards (IFRS) and interpretations from IFRIC, as adopted by the European Union, the Swedish Financial Reporting Board's standard RFR 1 Supplementary Accounting Rules for Groups and related interpretations and the Swedish Annual Accounts Act.
This interim report has been prepared according to IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act and should be read together with the annual report for 2021. The most significant accounting policies under IFRS, the reporting norm applied in preparing this interim report, are set forth in Note C1 on pages 68-72 of the annual report for 2021, which were applied to the preparation of this interim report.
The interim information on pages 1-13 is an integrated part of this financial report. The parent company's financial statements are prepared in accordance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's recommendation, RFR 2 Accounting for Legal Entities.
The interim report has not been reviewed by the company's auditors. This English report is an unofficial translation. In case of any discrepancy between the English version and the Swedish version, the Swedish text shall prevail.
Outlook
Attendo does not publish forecasts.
Danderyd, May 6, 2022
Martin Tivéus, President and CEO
Financial reports
Consolidated Income Statement
| Q1 | Jan-Dec | |||
|---|---|---|---|---|
| SEKm | 2022 | 2021 | 2021 | |
| Net sales | 3,482 | 3,062 | 12,867 | |
| Other operating income | 4 | 6 | 24 | |
| Total revenue | 3,486 | 3,068 | 12,891 | |
| Personnel costs | -2,381 | -2,086 | -8,709 | |
| Other external costs | -598 | -480 | -2,016 | |
| Operating profit before amortization and depreciations (EBITDA) | 507 | 502 | 2,166 | |
| Amortization and depreciation of tangible and intangible assets | -365 | -319 | -1,330 | |
| Operating profit after depreciation (EBITA) | 142 | 183 | 836 | |
| Operating margin (EBITA), % | 4.1 | 6.0 | 6.5 | |
| Amortization and write-down of acquisition related intangible assets | -15 | -29 | -81 | |
| Operating profit (EBIT) | 127 | 154 | 755 | |
| Operating margin (EBIT), % | 3.6 | 5.0 | 5.9 | |
| Net financial items | -169 | -164 | -652 | |
| Profit before tax | -42 | -10 | 103 | |
| Income tax | 10 | 1 | -44 | |
| Profit for the period | -32 | -9 | 59 | |
| Profit margin, % | -0.9 | -0.3 | 0.5 | |
| Profit for the period attributable to: | ||||
| Parent company shareholders | -33 | -10 | 56 | |
| Non-controlling interest | 1 | 1 | 3 | |
| Basic earnings per share, SEK | -0.20 | -0.06 | 0.35 | |
| Diluted earnings per share, SEK | -0.20 | -0.06 | 0.35 | |
| Average number of shares outstanding, basic, thousands | 160,913 | 160,913 | 160,913 | |
| Average number of shares outstanding, diluted, thousands | 160,932 | 160,925 | 160,930 |
Consolidated Statement of Comprehensive Income
| Q1 | Jan-Dec | ||
|---|---|---|---|
| SEKm | 2022 | 2021 | 2021 |
| Profit for the period | -32 | -9 | 59 |
| Other comprehensive income for the period | |||
| Items that will not be reclassified to profit or loss | |||
| Remeasurements of defines benefit pension plans, net of tax | 10 | 5 | 5 |
| Items that may be reclassified to profit or loss | |||
| Exchange rate differences on translating foreign operations attributable to | |||
| the parent company shareholders | 16 | 29 | 26 |
| Other comprehensive income for the period | 26 | 34 | 31 |
| Total comprehensive income for the period | -6 | 25 | 90 |
| Total comprehensive income attributable to: | |||
| Parent company shareholders | -7 | 23 | 87 |
| Non-controlling interest | 1 | 2 | 3 |
Consolidated Balance Sheet
| SEKm | 31 Mar 2022 31 Mar 2021 | 31 Dec 2021 | |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Goodwill | 6,906 | 6,850 | 6,878 |
| Other intangible assets | 487 | 500 | 478 |
| Equipment | 547 | 571 | 538 |
| Right-of-use assets | 10,910 | 10,435 | 10,535 |
| Financial assets | 457 | 428 | 434 |
| Total non-current assets | 19,307 | 18,784 | 18,863 |
| Current assets | |||
| Trade receivables | 1,303 | 1,013 | 1,312 |
| Other current assets | 472 | 506 | 370 |
| Cash and cash equivalents | 517 | 670 | 513 |
| 2,292 | 2,189 | 2,195 | |
| Assets held for sale | 6 | 19 | 18 |
| Total current assets | 2,298 | 2,208 | 2,213 |
| Total assets | 21,605 | 20,992 | 21,076 |
| EQUITY and LIABILITIES | |||
| Equity | |||
| Equity attributable to the parent company shareholders | 4,925 | 4,872 | 4,932 |
| Non-controlling interest | 26 | 24 | 25 |
| Total equity | 4,951 | 4,896 | 4,957 |
| Non-current liabilities | |||
| Liabilities to credit institutions | 2,034 | 2,272 | 2,069 |
| Long-term lease liabilities¹ | 11,102 | 10,513 | 10,739 |
| Provisions for post-employment benefits | - | 4 | 2 |
| Long term provisions | 76 | 76 | 70 |
| Other non-current liabilities | 107 | 121 | 106 |
| Total non-current liabilities | 13,319 | 12,986 | 12,986 |
| Current liabilities | |||
| Liabilities to credit institutions | 0 | - | 1 |
| Short-term lease liabilities² | 1,141 | 995 | 1,068 |
| Trade payables | 411 | 338 | 425 |
| Short-term provisions | 39 | 109 | 53 |
| Other current liabilities | 1,740 | 1,664 | 1,582 |
| 3,331 | 3,106 | 3,129 | |
| Liabilities held for sale | 4 | 4 | 4 |
| Total current liabilities | 3,335 | 3,110 | 3,133 |
| Total equity and liabilities | 21,605 | 20,992 | 21,076 |
1) Long-term lease liabilities include car leases amounting to SEK 2m (7m) and full year SEK 11m.
2) Short-term lease liabilities include car leases amounting to SEK 25m (29m) and full year SEK 20m.
Consolidated Cash Flow Statement
| Q1 | Jan-Dec | |||
|---|---|---|---|---|
| Operational cash flow (alternative performance measure), SEKm | 2022 | 2021 | 2021 | |
| Operating profit (EBITA)¹ | 142 | 183 | 836 | |
| Depreciation and amortization of tangible and intangible assets | 365 | 319 | 1,330 | |
| Changes in working capital | 67 | 74 | -72 | |
| Paid income tax | -27 | -9 | -58 | |
| Other non-cash items | 0 | -6 | -26 | |
| Cash flow after changes in working capital | 547 | 561 | 2,010 | |
| Investments on tangible and intangible assets | -61 | -40 | -170 | |
| Divestments of tangible and intangible assets | 2 | 7 | 19 | |
| Operating cash flow | 488 | 528 | 1,859 | |
| Interest received/paid | -10 | -14 | -51 | |
| Interest expense for lease liabilities of real estate | -153 | -143 | -581 | |
| Repayment of lease liabilities | -268 | -233 | -978 | |
| Free cash flow | 57 | 138 | 249 | |
| Net change in assets and liabilities held for sale | - | - | 2 | |
| Acquisition of operations | -6 | -190 | -263 | |
| Divestment of subsidiaries | - | - | -1 | |
| Warrants | - | - | 2 | |
| Repayment of loans | -50 | - | -300 | |
| New borrowings | - | - | 100 | |
| Total cash flow | 1 | -52 | -211 | |
| Cash and cash equivalents at the beginning of the period | 513 | 716 | 716 | |
| Effect of exchange rate changes on cash | 3 | 6 | 8 | |
| Cash and cash equivalents at the end of the period | 517 | 670 | 513 | |
| Q1 | Jan-Dec | |||
| Cash flow according to IFRS, SEKm | 2022 | 2021 | 2021 | |
| Cash flow from operations | 384 | 404 | 1,378 | |
| Cash flow from investing activities | -65 | -223 | -413 | |
| Cash flow from financing activities | -318 | -233 | -1,176 | |
| Total cash flow | 1 | -52 | -211 |
Consolidated Statement of Changes in Equity
| SEKm | 31 Mar 2022 31 Mar 2021 | 31 Dec 2021 | |
|---|---|---|---|
| Opening balance | 4,957 | 4,871 | 4,871 |
| Total comprehensive income attributable to: | |||
| The parent company shareholders | -7 | 23 | 87 |
| Non-controlling interest | 1 | 2 | 3 |
| Transactions with owners | |||
| Warrants | - | - | 2 |
| Share-savings plan | - | - | 1 |
| Total transactions with owners | - | - | 3 |
| Transactions with non-controlling interest | - | - | -7 |
| Closing balance | 4,951 | 4,896 | 4,957 |
| Equity attributable to: | |||
| Parent company shareholders | 4,925 | 4,872 | 4,932 |
| Non-controlling interests | 26 | 24 | 25 |
Segment in Summary
| Other and | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Scandinavia | Full | Finland eliminations Full Full |
Group Full |
|||||||||
| Q1 | Q1 | year | Q1 | Q1 | year | Q1 | Q1 | year | Q1 | Q1 | year | |
| SEKm | 2022 | 2021 | 2021 | 2022 | 2021 | 2021 | 2022 | 2021 | 2021 | 2022 | 2021 | 2021 |
| Net sales | 1,607 | 1,447 | 6,037 | 1,875 | 1,615 | 6,830 | - | - | - | 3,482 | 3,062 | 12,867 |
| - Net sales, own operations | 1,231 | 1,100 | 4,632 | 1,862 | 1,600 | 6,772 | - | - | - | 3,093 | 2,700 | 11,404 |
| - Net sales, outsourcing | 376 | 347 | 1,405 | 13 | 15 | 58 | - | - | - | 389 | 362 | 1,463 |
| Lease adjusted EBITA Lease adjusted operating |
66 | 91 | 428 | -18 | 2 | 43 | -17 | -18 | -70 | 31 | 75 | 400 |
| margin (EBITA), % | 4.1 | 6.3 | 7.1 | -1.0 | 0.1 | 0.6 | - | - | - | 0.9 | 2.4 | 3.1 |
| Operating profit (EBITA) | 113 | 136 | 611 | 46 | 64 | 296 | -17 | -18 | -70 | 142 | 183 | 836 |
| Operating margin (EBITA), % | 7.0 | 9.4 | 10.1 | 2.5 | 4.0 | 4.3 | - | - | - | 4.1 | 6.0 | 6.5 |
Net Financial Items
| Q1 | |||||
|---|---|---|---|---|---|
| SEKm | 2022 | 2021 | 2021 | ||
| Net interest expense (excluding lease liabilities for real estate) | -9 | -11 | -36 | ||
| Interest expense, lease liabilities for real estate | -153 | -143 | -581 | ||
| Other | -7 | -10 | -35 | ||
| Net financial items | -169 | -164 | -652 |
Investments
| Q1 | Jan-Dec | ||||
|---|---|---|---|---|---|
| SEKm | 2022 | 2021 | 2021 | ||
| Investments | |||||
| Investments in intangible assets | 22 | 4 | 28 | ||
| Investments in tangible assets | 39 | 37 | 142 | ||
| Divestments of tangible and intangible assets | -2 | -8 | -19 | ||
| Total net investments | 59 | 33 | 151 | ||
| Intangible assets acquired through business combination | |||||
| Goodwill | 6 | 163 | 208 | ||
| Customer relations | 0 | 29 | 47 | ||
| Other | - | - | - | ||
| Total intangible assets acquired through business combination | 6 | 192 | 255 | ||
| Financial Assets and Liabilities | |||||
| SEKm | 31 Mar 2022 31 Mar 2021 | 31 Dec 2021 | |||
| ASSETS | |||||
| Financial assets measured at fair value | |||||
| Trade receivables | 1,303 | 1,013 | 1,312 | ||
| Cash and cash equivalents | 517 | 670 | 513 | ||
| Total financial assets | 1,820 | 1,683 | 1,825 | ||
| LIABILITIES | |||||
| Financial liabilities at fair value through profit or loss | |||||
| Contingent considerations | - | 0 | 0 | ||
| Purchase option from non-controlling interests | 21 | 14 | 21 | ||
| Financial liabilities measured at amortised cost | |||||
| Borrowings | 2,034 | 2,272 | 2,070 | ||
| Lease liabilities | 12,243 | 11,508 | 11,807 | ||
| Trade payables | 411 | 338 | 425 | ||
| Total financial liabilities | 14,709 | 14,132 | 14,323 |
The table shows the Group's significant financial assets and liabilities. Assets and liabilities recognized as loans and receivables, and other financial liabilities are valued at amortized cost. Fair value for all financial assets and liabilities are equal to the carrying value. For complete table and further information see Attendo's Annual report 2021, note C26.
Valuation technique
Level 3: The fair value of contingent considerations is based on estimated outcome from the contractual clauses in the share purchase agreements.
Pledged Assets and Contingent Liabilities
| SEKm | 31 Mar 2022 31 Mar 2021 | 31 Dec 2021 | |
|---|---|---|---|
| Assets pledged as collateral | 53 | 64 | 66 |
| Contingent liabilities¹ | 3,013 | 3,965 | 2,877 |
1) Leases of assets not yet in use are reported in contingent liabilities. Contingent liabilities also include a potential outflow of resources to complete acquisitions of real estate and operations from a few local authorities in Finland.
Adjusted Earnings and Adjusted Earnings per Share Q1 2022
| Reported | Acq.¹ | IFRS 16² | Total adj. | Adjusted | |
|---|---|---|---|---|---|
| SEKm | earnings | ||||
| Net sales | 3,482 | - | - | - | 3,482 |
| Other operating income | 4 | - | - | 4 | |
| Operating profit before amortization and | |||||
| depreciation (EBITDA) | 507 | - | -421 | -421 | 86 |
| Amortization and depreciation of tangible and | |||||
| intangible assets | -365 | - | 310 | 310 | -55 |
| Operating profit (EBITA) | 142 | - | -111 | -111 | 31 |
| Amortization and write-down of acquisition related | |||||
| intangible assets | -15 | 15 | - | 15 | - |
| Operating profit (EBIT) | 127 | 15 | -111 | -96 | 31 |
| Net financial items | -169 | - | 153 | 153 | -16 |
| Profit before tax (EBT) | -42 | 15 | 42 | 57 | 15 |
| Income tax | 10 | -3 | -8 | -11 | -1 |
| Profit for the period | -32 | 12 | 34 | 46 | 14 |
| Profit for the period attributable to: | |||||
| The parent company shareholders | -33 | 12 | 34 | 46 | 13 |
| Non-controlling interests | 1 | - | - | - | 1 |
| Average number of shares outstanding, diluted, | |||||
| thousands | 160,932 | 160,932 | 160,932 | 160,932 | 160,932 |
| Earnings per share diluted, SEK | -0.20 | 0.08 | 0.21 | 0.29 | 0.09 |
Profit for the period attributable to the parent company shareholders excluding amortization of acquisition related intangible assets (1)and IFRS 16 (2) and related tax effects divided with the average number of shares outstanding, after dilution.
Adjusted Earnings and Adjusted Earnings per Share Q1 2021
| Reported | Acq.¹ | IFRS 16² | Total adj. | Adjusted | |
|---|---|---|---|---|---|
| SEKm | earnings | ||||
| Net sales | 3,062 | - | - | - | 3,062 |
| Other operating income | 6 | - | 6 | 6 | 12 |
| Operating profit before amortization and | |||||
| depreciation (EBITDA) | 502 | - | -377 | -377 | 125 |
| Amortization and depreciation of tangible and | |||||
| intangible assets | -319 | - | 269 | 269 | -50 |
| Operating profit (EBITA) | 183 | - | -108 | -108 | 75 |
| Amortization and write-down of acquisition related | |||||
| intangible assets | -29 | 29 | - | 29 | - |
| Operating profit (EBIT) | 154 | 29 | -108 | -79 | 75 - |
| Net financial items | -164 | - | 143 | 143 | -21 |
| Profit before tax (EBT) | -10 | 29 | 35 | 64 | 54 |
| Income tax | 1 | -6 | -7 | -13 | -12 |
| Profit for the period | -9 | 23 | 28 | 51 | 42 |
| Profit for the period attributable to: | |||||
| The parent company shareholders | -10 | 23 | 28 | 51 | 41 |
| Non-controlling interests | 1 | - | - | - | 1 |
| Average number of shares outstanding, diluted, | |||||
| thousands | 160,925 | 160,925 | 160,925 | 160,925 | 160,925 |
| Earnings per share diluted, SEK | -0.06 | 0.15 | 0.18 | 0.32 | 0.26 |
Profit for the period attributable to the parent company shareholders excluding amortization of acquisition related intangible assets (1)and IFRS 16 (2) and related tax effects divided with the average number of shares outstanding, after dilution.
Adjusted Earnings and Adjusted Earnings per Share 2021
| Reported | Acq.¹ | IFRS 16² | Total adj. | Adjusted earnings |
|
|---|---|---|---|---|---|
| SEKm | |||||
| Net sales | 12,867 | - | - | - | 12,867 |
| Other operating income | 24 | - | - | - | 24 |
| Operating profit before amortization and | |||||
| depreciation (EBITDA) | 2,166 | - | -1,558 | -1,558 | 608 |
| Amortization and depreciation of tangible and | |||||
| intangible assets | -1,330 | - | 1,124 | 1,124 | -206 |
| Operating profit (EBITA) | 836 | - | -436 | -436 | 400 |
| Amortization and write-down of acquisition related | |||||
| intangible assets | -81 | 81 | - | 81 | - |
| Operating profit (EBIT) | 755 | 81 | -436 | -355 | 400 |
| Net financial items | -652 | - | 581 | 581 | -71 |
| Profit before tax (EBT) | 103 | 81 | 145 | 226 | 329 |
| Income tax | -44 | -16 | -28 | -44 | -88 |
| Profit for the period | 59 | 65 | 117 | 182 | 241 |
| Profit for the period attributable to: | |||||
| The parent company shareholders | 56 | 65 | 117 | 182 | 238 |
| Non-controlling interests | 3 | - | - | - | 3 |
| Average number of shares outstanding, diluted, | |||||
| thousands | 160,930 | 160,930 | 160,930 | 160,930 | 160,930 |
| Earnings per share diluted, SEK | 0.35 | 0.40 | 0.73 | 1.13 | 1.48 |
Profit for the period attributable to the parent company shareholders excluding amortization of acquisition related intangible assets (1)and IFRS 16 (2) and related tax effects divided with the average number of shares outstanding, after dilution.
Key Data
| Q1 | Jan-Dec | |||
|---|---|---|---|---|
| 2022 | 2021 | 2021 | ||
| Organic growth | % | 8.2 | 2.0 | 4.4 |
| Acquired growth | % | 3.3 | -1.2 | 2.2 |
| Change in currencies | % | 2.2 | -2.9 | -1.9 |
| Operating margin (EBITA margin) r12 | % | 6.0 | 6.5 | 6.5 |
| Lease adjusted operating margin (lease adjusted | ||||
| EBITA margin) r12 | % | 2.7 | 3.0 | 3.1 |
| Working capital | SEKm | -414 | -590 | -379 |
| Return on capital employed | % | 3.9 | 3.5 | 4.1 |
| Net debt to equity ratio | times | 2.8 | 2.7 | 2.7 |
| Equity to asset ratio | % | 23 | 23 | 24 |
| Net debt/EBITDA r12 | times | 6.3 | 6.4 | 6.2 |
| Lease adjusted net debt / Lease adjusted EBITDA | ||||
| r12 | times | 2.7 | 2.8 | 2.6 |
| Free cash flow | SEKm | 57 | 138 | 249 |
| Net investments | SEKm | -59 | -33 | -151 |
| Average number of employees | 19,749 | 18,012 | 19,041 | |
| Key data per share | ||||
| Earnings per share, basic | SEK | -0.20 | -0.06 | 0.35 |
| Earnigns per share, diluted | SEK | -0.20 | -0.06 | 0.35 |
| Adjusted earnings per share, diluted | SEK | 0.09 | 0.26 | 1.48 |
| Equity per share, basic | SEK | 30.77 | 30.27 | 30.65 |
| Equity per share, diluted | SEK | 30.77 | 30.27 | 30.65 |
| Average number of shares outstanding, basic | thousands | 160,913 | 160,913 | 160,913 |
| Average number of shares outstanding, diluted | thousands | 160,932 | 160,925 | 160,930 |
| Number of shares, end of period | thousands | 161,387 | 161,387 | 161,387 |
| Number of treasury shares, end of period | thousands | 474 | 474 | 474 |
| Number of shares outstanding, end of period | thousands | 160,913 | 160,913 | 160,913 |
Quarterly Data
| SEKm | Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 | |||||||
|---|---|---|---|---|---|---|---|---|
| Total net sales | 3,112 | 2,983 | 3,065 | 3,062 | 3,207 | 3,260 | 3,338 | 3,482 |
| - Net sales, own operations | 2,627 | 2,604 | 2,668 | 2,700 | 2,849 | 2,897 | 2,957 | 3,093 |
| - Net sales, outsourcing | 485 | 379 | 397 | 362 | 358 | 362 | 381 | 389 |
| Total net sales | 3,112 | 2,983 | 3,065 | 3,062 | 3,207 | 3,260 | 3,338 | 3,482 |
| - Net sales, Scandinavia | 1,548 | 1,410 | 1,475 | 1,447 | 1,489 | 1,516 | 1,584 | 1,607 |
| - Net sales, Finland | 1,564 | 1,573 | 1,590 | 1,615 | 1,718 | 1,744 | 1,754 | 1,875 |
| Lease adjusted operating profit (EBITDA) Lease adjusted operating margin (EBITDA |
98 | 218 | 142 | 125 | 104 | 261 | 118 | 86 |
| margin), % | 3.2 | 7.3 | 4.6 | 4.1 | 3.2 | 8.0 | 3.5 | 2.5 |
| Lease adjusted operating profit (EBITA) Lease adjusted operating margin (EBITA |
42 | 162 | 87 | 75 | 53 | 208 | 65 | 31 |
| margin), % | 1.4 | 5.4 | 2.8 | 2.4 | 1.7 | 6.4 | 2.0 | 0.9 |
| Operating profit (EBITDA) | 471 | 581 | 509 | 502 | 496 | 657 | 511 | 507 |
| Operating margin (EBITDA margin), % | 15.1 | 19.5 | 16.6 | 16.4 | 15.5 | 20.2 | 15.3 | 14.6 |
| Operating profit (EBITA) | 153 | 269 | 193 | 183 | 162 | 319 | 172 | 142 |
| Operating margin (EBITA margin), % | 4.9 | 9.0 | 6.3 | 6.0 | 5.1 | 9.8 | 5.2 | 4.1 |
| Profit for the period | -975 | 64 | 4 | -9 | -19 | 95 | -8 | -32 |
| Profit margin, % | -31.3 | 2.1 | 0.1 | -0.3 | -0.6 | 2.9 | -0.2 | -0.9 |
| Earnings per share basic, SEK | -6.06 | 0.40 | 0.02 | -0.06 | -0.12 | 0.58 | -0.06 | -0.20 |
| Earnings per share diluted, SEK | -6.06 | 0.40 | 0.02 | -0.06 | -0.12 | 0.58 | -0.06 | -0.20 |
| Adjusted earnings per share diluted, SEK | 0.11 | 0.64 | 0.32 | 0.26 | 0.19 | 0.83 | 0.21 | 0.09 |
| Average number of employees | 18,659 | 18,514 | 17,523 | 18,012 | 18,518 | 20,104 | 19,303 | 19,749 |
| Operational data | ||||||||
| Number of units in operation¹ | 709 | 700 | 707 | 716 | 716 | 716 | 710 | 711 |
| Number of beds in homes² | 20,708 | 20,107 | 20,349 | 20,852 | 20,858 | 20,935 | 21,093 | 21,155 |
| Occupancy in homes, %² | 80 | 81 | 81 | 81 | 83 | 83 | 84 | 84 |
| Number of beds under construction³ | 1,110 | 1,228 | 1,036 | 782 | 608 | 449 | 433 | 433 |
| Number of opened beds (r12)³ | 2,042 | 1,630 | 1,349 | 955 | 710 | 931 | 832 | 638 |
1) All units in all contract models and segments.
2) All homes.
3) Own homes.
Parent Company Income Statement
| Q1 | Jan-Dec | ||
|---|---|---|---|
| SEKm | 2022 | 2021 | 2021 |
| Net sales | 4 | 4 | 15 |
| Personnel costs | -8 | -9 | -29 |
| Other external costs | -4 | -2 | -11 |
| Operating profit | -8 | -7 | -25 |
| Net financial items | 0 | -2 | 502 |
| Profit after financial items | -8 | -9 | 477 |
| Group contributions | - | - | 50 |
| Profit before tax | -8 | -9 | 527 |
| Results of commission | 46 | - | - |
| Income tax | -9 | - | -4 |
| Profit for the period | 29 | -9 | 523 |
| Profit for the period corresponds to total comprehensive income. | |||
| Parent Company Balance Sheet | |||
| SEKm | 31 Mar 2022 31 Mar 2021 | 31 Dec 2021 |
Parent Company Balance Sheet
| ASSETS | |||
|---|---|---|---|
| Non-current assets | |||
| Shares in subsidiaries | 6,494 | 6,494 | 6,494 |
| Total non-current assets | 6,494 | 6,494 | 6,494 |
| Current assets | |||
| Receivables to group companies | 92 5 |
50 | |
| Other receivables | 2 3 |
2 | |
| Cash and cash equivalents | 0 - |
0 | |
| Total current assets | 94 8 |
52 | |
| Total assets | 6,588 | 6,502 | 6,546 |
| EQUITY AND LIABILITIES | |||
| Equity | 6,565 | 6,002 | 6,535 |
| Current liabilities | |||
| Liabilities to group companies | 10 485 |
- | |
| Other liabilities | 13 15 |
11 | |
| Total current liabilities | 23 500 |
11 | |
| Total equity and liabilities | 6,588 | 6,502 | 6,546 |
Attendo's operations
Attendo is the leading private provider of care services in the Nordics. The company has operations in Sweden, Finland and Denmark. Attendo is the largest private care provider in Sweden and Finland. Attendo is a locally based company and has more than 700 units in operation in about 300 municipalities. The company has about 27,000 employees. With the vision of empowering the individual, Attendo provides services within care for older people, care for people with disabilities, social psychiatry and care for individuals and relatives.
Attendo provides services through two business areas, Attendo Scandinavia and Attendo Finland.
Attendo provides care services through two contract models:
• Own operations, where Attendo provides services in own controlled units/premises or provides home care in customer choice models. Attendo has own units within care for older people, people with
disabilities, social psychiatry and care for individuals and relatives.
• Outsourcing operations, where Attendo provides services in publicly controlled units/premises or provides home care services based on outsourcing contracts. Attendo has outsourced units for care for older people, care for people with disabilities and care for individuals and relatives.
Local authorities (mainly municipalities) are usually the contracting authorities for a large majority of Attendo's service offerings, but contract types and duration of contracts vary depending on the contract model and service offering. Own operations are normally based on framework agreements and outsourcing operations are based on outsourcing contracts, following a tender process. The contract period is typically 2-5 years.
Definitions of key data and alternative performance measures (APM)
Explanations of financial performance measures
Acquired growth (APM)
The net between the increase in the company's net sales from businesses and operations acquired during the past 12 months and loss of net sales from businesses and operations divested during the past 12 months in relation to the comparable period's net sales.
Adjusted earnings per share (APM)
Profit or loss for the period attributable to the parent company shareholders excluding effects from amortization and impairment of acquisition-related intangible assets, IFRS 16 as well as items affecting comparability and related tax items divided by the number of outstanding shares after dilution. See the tables Adjusted earnings and adjusted earnings per share for more information.
Capital employed
Equity plus interest-bearing liabilities and provisions for post-employment benefits. See Note C35 Reconciliations of alternative performance measures in the 2021 annual report for a reconciliation of the performance measure on a full year basis.
Cash and cash equivalents
Cash and bank balances, short term investments and derivatives with a positive fair value.
Earnings per share
Profit or loss for the period attributable to the parent company shareholders divided by average shares outstanding. Calculated both before (basic) and after dilution.
Equity/assets ratio
Equity divided by total assets.
Equity per share
Equity attributable to the parent company shareholders divided by average shares outstanding. Calculated both before (basic) and after dilution.
Free cash flow (APM)
Free cash flow is a measure of the cash and cash equivalents the group generates in operating activities and investing activities. The performance measure is defined as operating cash flow after changes in working capital, cash flow from investments in and divestments of tangible and intangible assets, received/paid interest as well as
interest expense for lease liabilities of real estate and repayment of lease liabilities according to IFRS 16. See the Consolidated cash flow statement for reconciliation and Note C35 Reconciliations of alternative performance measures in the 2021 annual report for a reconciliation of the performance measure on a full year basis.
Items affecting comparability
Items whose effects on profit are important to pay attention to when profit for the period is compared with earlier periods, such as significant impairment losses and other significant, non-recurring costs or income.
Lease adjusted EBITA (APM)
See the definition of operating profit (EBITA) below. Lease adjusted operating profit (EBITA) is operating profit according to the previous reporting standard IAS 17, i.e. excluding the effects of the implementation of IFRS 16. Car leases were reported as finance leases under the previous standard. Consequently, it is the effects of leases of real estate under IFRS 16 that differentiate operating profit from lease adjusted operating profit. See the tables Adjusted earnings and adjusted earnings per share for more information.
Lease adjusted EBITDA (APM)
See the definition of operating profit (EBITDA) below. Lease adjusted operating profit (EBITDA) is operating profit according to the previous accounting standard IAS 17, i.e. excluding the effects of the implementation of IFRS 16. Car leases were reported as finance leases under the previous standard. Consequently, it is the effects of leases of real estate under IFRS 16 that differentiate operating profit from lease adjusted operating profit. See the tables Adjusted earnings and adjusted earnings per share for more information.
Lease adjusted net debt (APM)
See the definition of net debt below. Lease adjusted net debt is net debt according to the previous reporting standard IAS 17, i.e. excluding the IFRS 16 effect on lease liabilities attributable to right-of-use assets for real estate. See the table showing net debt calculation for more information.
Lease adjusted net debt / lease adjusted EBITDA (APM)
Lease adjusted net debt in relation to lease adjusted EBITDA r12.
Lease adjusted operating margin (EBITA) (APM)
Lease adjusted operating profit (EBITA) divided by net sales.
Lease adjusted operating margin (EBITDA) (APM)
Lease adjusted operating profit (EBITDA) divided by net sales.
Net debt (APM)
Net debt is a way of describing the group's indebtedness and its ability to repay its debt with cash and cash equivalents if all debts were to be due for payment today. Net debt is defined as interest-bearing liabilities plus provisions for post-employment benefits minus cash and cash equivalents. Net debt is presented both including and excluding lease liabilities attributable to right-of-use assets for real estate. See the section Financial position in this report for a reconciliation of net debt.
Net debt / EBITDA
(APM)
Net debt divided by operating profit (EBITDA) r12.
Net debt to equity ratio
(APM) Net debt divided by equity.
Net investments
(APM)
The net of investments in and divestments of tangible and intangible assets, excluding acquisitions and divestment of operations as well as investments in and divestments of assets held for sale.
Operating margin (EBIT margin)
Operating profit or loss (EBIT) divided by net sales.
Operating margin (EBITA margin) Operating profit (EBITA) divided by net sales.
Operating margin (EBITDA margin)
Operating profit (EBITDA) divided by net sales.
Operating profit (EBIT) (APM)
Attendo reports operating profit (EBIT) as a performance measure because it shows the development of operating activities independent of financing. Operating profit (EBIT) refers to profit before financial items and tax. See the Consolidated income statement for a reconciliation of EBIT.
Operating profit (EBITA) (APM)
Operating profit (EBITA) is used as a performance measure because it shows the development of operating activities without the effect of amortization and impairments of intangible assets from acquired companies and independently of financing. Operating profit (EBITA) refers to profit before amortization of acquisition-related intangible assets, financial items and tax. See the Consolidated income statement for a reconciliation of EBITA.
Operating profit (EBITDA) (APM)
Attendo reports operating profit (EBITDA) as a performance measure because it shows the development of operating activities independent of financing and investments. Operating profit (EBITDA) refers to profit or loss before depreciation, amortization and impairments. See the Consolidated income statement for a reconciliation of EBITDA.
Organic growth (APM)
Attendo reports organic growth as a performance measure to show underlying net sales development excluding acquisitions/divestments and currency effects. The performance measure is calculated as net sales growth excluding acquisitions / divestments and changes in exchange rates.
Profit (Loss) for the period
Profit or loss for the period attributable to parent company shareholders and noncontrolling interest.
Profit margin
Profit or loss for the period divided by net sales.
r12 "rolling 12 months"
The sum of the period's past 12 months.
Return on capital employed (APM)
Attendo reports return on capital employed because it shows profits in relation to the capital used in operations. The definition of return on capital employed is operating profit (EBIT) excluding items affecting comparability for the past 12 months divided by average capital employed. See Note C35 Reconciliations of alternative performance measures in the 2021 annual report for a reconciliation of the performance measure on a full year basis.
Working capital (APM)
Working capital is a key performance measure for optimising cash generation. The performance measure is defined as current assets excluding cash and cash equivalents and current interest-bearing assets minus current non-interest-bearing liabilities and provisions. Assets and liabilities held for sale are not included in working capital. See Note C35 Reconciliations of alternative performance measures in the 2021 annual report for a reconciliation of the performance measure on a full year basis.
Explanations of operational measures
CoP
Care for older people.
Mature unit
Own home in care for older people, care for people with disabilities and social psychiatry opened during the calendar year of 2018 or earlier, and units in other contract models and segments in operation for more than 12 months.
Occupancy
The number of occupied beds divided by the number of available beds. Occupancy is a weighted average in the last month of each reporting period.
INFORMATION TO SHAREHOLDERS AND ANALYSTS
Financial Calendar
Interim report January-June 2022 21 July 2022 Interim report January-September 2022 26 October 2022
Presentation
A webcasted presentation will be held on May 6 at 10:00 (CET). You can follow the presentation at the following web link: https://tv.streamfabriken.com/attendo-q1-2022
Analysts and investors have the opportunity to dial into the presentation to ask questions. Contact information is obtained by emailing to: [email protected]
The report and other information material will be made available at: https://www.attendo.com/
For further information please contact:
| Fredrik Lagercrantz | Andreas Koch |
|---|---|
| CFO | Communications and IR Director |
| Phone +46 8 586 252 00 | Phone +46 70 509 77 61 |
This is information that Attendo AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above on 6 May 2022 at 08.00 CET.
Forward-looking information
This report contains forward-looking information that reflects Attendo management's current assessments and expectations on certain future circumstances and possible outcome. This type of forward-looking information involves risks and uncertainties that may significantly impact future outcome. The information is based on certain assumptions, including such attributable to general economic conditions in the company's markets and demand for the company's services.
Company number : 559026-7885
