MEDICLIN AG — Earnings Release 2004

Mar 23, 2005

News Details

Corporate | 23 March 2005 12:12

MediClin AG:announces figures for financial year 2004

Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. —————————————————————————— Sales revenues in 2004 slightly below previous year – results significantly improved Frankfurt, 23 March 2005 – Despite a difficult market environment, in particular for rehabilitation, the income situation improved. Costs were lowered, efficiency was increased and sales activities were intensified. At year-end, cost of materials and personnel expense were reduced by approximately 6.4 million Euro, with a sales decline of 2.1 million Euro The nursing care segment has become well established. The Management Board expects a significant improvement in performance in 2005. In the first two months of 2005 cumulated sales and profit were above previous years’ figures. In financial year 2004, MediClin AG, one of the large private German clinic operators, earned sales revenues, including inventory changes to the amount of 357.9 million Euro (previous year: 360.0 million Euro). Sales revenues in MediClin’s largest segment, post-acute (rehabilitation), declined by 7.5 million Euro to 207.4 million Euro (py: 214.9 million Euro), mainly due to a weaker demand for medical rehabilitation services. The acute segment, which contributes about 42 percent to total revenues, increased its sales by 3.7 million Euro to 148,8 million Euro (py: 145,1 million Euro). At 38.7 million Euro, the fourth quarter of 2004, in particular, was markedly better than the previous year’s quarter (py: 35.9 million Euro). Nursing care earned sales revenues of 1.7 million Euro in its start-up year. The Group’s operating result (EBIT) improved by 1.8 million Euro to minus 7.8 million Euro (py: minus 9.6 million Euro) as a consequence of the efficiency increase and cost savings measures introduced in 2004. Cost of materials and personnel expenses were down 6.4 million Euro from the previous year. Despite retrograde sales revenues, the post-acute segment result (rehabilitation) improved by 0.5 million Euro to minus 13.5 million Euro (py: minus 14 million Euro). Less seasonal influence on capacity utilisation and the above-mentioned measures had a positive effect on the income situation. At 8.3 million Euro, income almost doubled in the acute segment (py: 4.4 million Euro) with a sales rise of 2.6 percent. The nursing care segment still shows start-up losses amounting to minus 2.6 million Euro. The Group net loss decreased by 3.2 million Euro to minus 13.6 million Euro (py: minus 16.8 million Euro). Measures to improve capacity utilization take effect In financial year 2004, MediClin successfully adapted its income and cost structure to the continuing weak demand for rehabilitation services. In December 2003, the Board of Management decided, with the approval of the Supervisory Board, to use some of the existing capacities at six facilities to introduce nursing care as highly qualified supplementary services. Positive effects from improved utilization of existing administration and service capacities at the respective locations are expected over the medium to longer term. In 2004, MediClin developed a series of offers called “PlusProgramme” that are directed towards private patients. They permit the clinics to make better use of existing resources. Meanwhile, eight “PlusProgramme” are on offer. No uniform picture for nursing days and number of cases The occupancy rate within the Group declined in 2004. The post-acute segment had to accept a drop of 1.5 percent (py: 5.5 percent) whereas the acute segment saw a slight increase. Overall, 2,067,552 nursing days were provided in 2004 (py: 2,144,141 nursing days). Of these, 1,640.887 nursing days were attributable to the post-acute segment (py: 1,756,564 nursing days), and 402,807 nursing days (py: 387,577 nursing days) to the acute clinics. Nursing care received 23,858 nursing days in the start-up year. In 2004, 64,159 cases were treated in the post-acute facilities (py: 69,319 cases), and 37,992 cases (py: 38,945 cases) at the acute clinics. The case- based billing system is gaining importance in both segments which changes the relative significance of the informative value of the nursing days indicator. Coverage provider structure – social security pension funds and public health insurance companies are dominant As previously, the social security pension funds’ and public health insurance companies’ share in total occupancy is dominating at a combined 92.4 percent. In financial year 2004, the proportion of social security pension funds relative to total occupancy declined by 0.6 percentage points (py: -5.1 percentage points) to 36.9 percent (py: 37.5 percent). As before, the decline in occupancy by social security pension funds continues to affect medical rehabilitation in particular. The proportion of beds occupied by the public health insurance companies rose by 0.8 percentage points to 55.5 percent (py: 54.7 percent) and mainly affects subsequent nursing treatment. This indicates a shift in the admittance structure in favour of public health insurance companies and, consequently, a greater demand for treatment within the scope of subsequent nursing treatment. In the context of cost saving and efficiency improvement measures in 2004 staff reductions is almost completed The number of employees calculated according to full-time staff amounted to an average of 5,298employees (py: 5,572 full-time staff). The nursing care segment employed an average of 39 full-time-employees in 2004. A balanced Group result is aimed for in 2005 In 2005, MediClin will drive further the measures introduced and will open new channels of distribution, in particular within the context of co-operations concerning Integrated Medical Service. In November 2004, the first nation-wide agreement on Integrated Medical Service of stroke patients was signed. The acquisition and cooperation policy that has, up to the present, been oriented towards networking and achieving local market leadership will be pursued further. The Board of Management expects that the income situation will improve significantly in financial year 2005, due on the one hand, to actual foreseeable cost saving potentials and through measures aimed to increase profits and efficiency at the clinics on the other. The efforts are directed towards achieving a balanced Group result for 2005. The 2004 Annual Report is available as from April 1, 2005 at http://www.mediclin.de . For more information: Investor Relations, Alexandra Muehr, Phone: +49 (0)781/488-189 end of message, (c)DGAP 23.03.2005 —————————————————————————— WKN: 659510; ISIN: DE0006595101; Index: Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg und Stuttgart 231212 Mär 05