Quarterly Report • May 21, 2012
Quarterly Report
Open in ViewerOpens in native device viewer
Dear Stockholders:
Substantial sales growth again and a very good development of earnings: The NEXUS team was able to deliver a very pleasing result in every respect in the first quarter 2012. We are looking very optimistically to the next months, strengthened by newly introduced projects of the past months and our success in numerous calls for bids.
With sales increases of more than 18% and improved revenues of approx. 25%, we were able to continue our development of increasing sales with a simultaneously disproportionately high rate of increasing profits in the first quarter 2012.
We are again demonstrating that a growth and innovation strategy in our industry remains in accord with continually improving results. We consider it important to link joy in innovation with stable company development. Both aspects are very important for our customers, because a stable partner is just as important in the healthcare sector as is the modernity of the software solutions. The numerous new orders of the last months show that we have found the right balance here and that our strategy is convincing for customers.
As a result, we especially focused on project implementations in the first quarter. We worked on implementing numerous new projects in Germany, which entail a great number of additional development tasks. In Switzerland, approx. 70 hospitals started using the first Swiss DRG accounting system with NEXUS software. This was a challenging step both for our customers and for NEXUS, because it involved a fundamental conversion of the accounting system in the Swiss healthcare system. We prepared delivery of Release 1.0 in the NEXUS / RIS product area and implemented essential product enhancements in the area of NEXUS / PATHOLOGY.
In addition, we advanced integration of Domis AG and NEXUS / OPTIM in the first quarter. Positioning the product line NEXUS / HOME on the German senior citizen home market and the introduction of the product NEXUS / STERILIZATION were the focus of integration measures.
The first quarter started very well with respect to the number of new orders. A total of 19 new hospitals decided in favor of our NEXUS / HIS within the context of calls for bids. This includes Ortenau Hospital, an association with 8 hospitals that is one of the most important in southern Germany with approx. 1,800 beds and 5,000 employees. The Rhineland Lutheran Hospitals with a total of 617 beds and 1,600 employees also chose NEXUS in the first quarter 2012 and consequently documented the current exceptional position of our product in the German market. We were able to acquire a total of 5 new customers in the product area NEXUS / DIS and another 14 in the area of quality management. Our business area of "long-term care" also started successfully with 9 new customers. The development of our business in radiology is certainly to be emphasized. We were able to inspire many customers for the project with our new NEXUS / RIS in the first quarter.
The substantial customer acquisitions and the associated growth bring a lot of challenges with them, which we will have to face over the coming months. We have to increase the professionalism of our project development even further and gain new employees for this area at the same time. By the end of the year, very many hospitals will start live operation with our product NEXUS / HIS, and they all should also receive outstanding parametrization and real-time operation support from NEXUS.
We are looking forward to these challenges and would like to thank you, dear stockholders, for your trust.
Warm regards
Dr. Ingo Behrendt CEO NEXUS AG
| Key Figures | 03/31/2012 | 03/31/2011 | |
|---|---|---|---|
| KEUR | % | KEUR | |
| Sales | 13,855 | 18.3 | 11,710 |
| Sales HC-Software | 12,853 | 23.0 | 10,450 |
| Sales HC-Service | 1,002 | -20.5 | 1,260 |
| Sales National | 6,903 | -3 | 7,117 |
| Sales International | 6,952 | 51.4 | 4,593 |
| Result of the period before tax | 1,407 | 25.0 | 1,126 |
| Result of the period | 1,413 | 31.6 | 1,074 |
| EBITDA | 2,767 | 15.3 | 2,400 |
| Result per Share | 0.10 | 25.0 | 0.08 |
| Investments in intangible and tangible assets | 978 | -1.4 | 992 |
| Depreciation | 1,476 | 4.0 | 1,419 |
| Liquidity | 27,362 | 23.9 | 22,074 |
| Cash Flow from operative activities | 6,353 | 57.7 | 4,028 |
| Employees (31 March) | 486 | 30.3 | 373 |
Report about the Profit, Financial and Asset Situation
NEXUS Group sales increased from KEUR 11,710 to KEUR 13,855 (+18.3%) in the first three months of the year 2012.
Sales in the segment of Healthcare Software increased by about 22% from KEUR 10,450 (Q1-2011) to KEUR 12,853. On the other hand, sales in the area of Healthcare Service declined from KEUR 1,260 (Q1-2011) to KEUR 1,002 in Q1-2012 (-20.5%). The total sales include the consolidated results of one quarter of the Domis AG and NEXUS / OPTIM with a total sales volume of KEUR 1,405 adjusted for the Group. Without these sales, sales increased by 6.3% in the first quarter.
Sales increased in international business by 51.4% in the first half-year.
4
As a result, the share of sales outside of Germany increased overall from 39.2% to 50.2%. The increase in international business is especially concentrated in the Swiss and other international markets. Business decreased by approx. 3% in Germany and reached KEUR 6,903 following KEUR 7,117. The different growth rates in the regions are due to the invoicing processes, but also to the consolidation of Domis AG for the first quarter, which operates in the Swiss market. Exchange rate fluctuations compared to 2011 were not significant, because the average exchange rate of the Swiss franc as of 31 March 2012 at Sfr. 1.21 only differs slightly from the rate on 31 March 2011 (Sfr. 1.22).
The uninterrupted positive development of sales of the NEXUS Group of many years continued in the first quarter 2012.
The effective tax burdens remain slight as previously due to losses of the individual companies carried forward. The operating result increased in the same magnitude at approx. 32% and achieved KEUR 1,291 in the first quarter compared to KEUR 981 in the previous year. The result before taxes and interest (EBIT) amounted to KEUR 1,291 following KEUR 981 (Q1-2012) and increased by approx. 32% compared to the previous year. Capitalized internal performances had a slight negative effect on the result of approx. 8% down to KEUR 910 (Q1-2011: KEUR 992).
The EBITDA increased correspondingly to KEUR 2,767 following KEUR 2,400 (+15.3%). It should be noted here that one-time effects and expenses for company integration of Domis AG and OPTIM SA are represented in their complete amount in the operating result.
An operative cash flow of KEUR 6,353 was achieved in the first quarter 2012 following KEUR 4,028 in the first quarter 2011 (+57.7%). This is a value that also reflects the increased number of maintenance contracts of NEXUS Group. Investments in the amount of KEUR 978 were made (Q1-2011: KEUR 992).
The balance sheet total increased from KEUR 80,420 to KEUR 85,559 compared to 31 December 2011. There are no essential bank liabilities. Intangible assets, goodwill and balanced-out deferred taxes add up to a total of KEUR 39,280 following KEUR 39,697. Receivables from customers decreased from KEUR 14,364 to KEUR 12,761 compared to 31 December 2011.
| Sales by divisions | |||
|---|---|---|---|
| 01/01/ - 03/31/11 |
01/01/ - 03/31/12 |
∆ IN % |
|
| KEUR | KEUR | ||
| Healthcare Software | 10,450 | 12,853 | 23.0 |
| Healthcare Service | 1,260 | 1,002 | -20.5 |
| Total | 11,710 | 13,855 | 18.3 |
| Employees | ||
|---|---|---|
NEXUS Group employed a total of 486 people as of 30 March 2012 (Q1-2011: 362 employees). The great majority of the employees (451) work in the Healthcare Software segment. The Health Care Service segment employs 35 people (Q1-2011: 41).
| Sales by regions | |||
|---|---|---|---|
| 01/01/ - 03/31/11 |
01/01/ - 03/31/12 |
∆ IN % |
|
| KEUR | KEUR | ||
| Germany | 7,117 | 6,903 | -3.0 |
| Switzerland | 3,687 | 5,744 | 55.8 |
| Austria | 547 | 295 | -46.1 |
| Italy | 2 | 2 | 0.0 |
| Rest of world / USA | 357 | 911 | 155.2 |
| Total | 11,710 | 13,855 | 18.3 |
With the software SPM and OPM, NEXUS supports two areas in hospitals that are cost-intensive and critical for hygiene. Both are core topics, which are a focal point of hospitals not only due to the current discussion about hygiene. Transparency and efficiency in sterile areas of OP and the central supply department for sterilized materials are extremely important with respect to finances and quality.
Supply of sterilized materials is a decisive factor for productivity in hospitals and consequently the efficiency of the OP area and even a complete hospital, because scissors, forceps, scalpels and hygienic utensils are used in almost all wards of a hospital. If the required resources, i.e., instruments and equipment, are not provided on time and sterilized for an operation, loss of time and consequently unnecessary costs are threatened. Appropriate documentation and transparency in preparing sterilized materials for hospitals are of vital importance. Current cases of hygiene problems in hospitals in Munich and Bremen demonstrate the explosiveness that this topic entails.
NEXUS solutions for the sterilization process and OP management support and guide staff in mastering their responsibilities. A detailed, prescribed procedure in NEXUS / SPM completely controls the cleaning workflow in central supply department for sterilized materials and documents proper preparation of instrument central supply department for sterilized materials via the software – with relation to specific patients if desired.
The instruments used are sent in the allocated sieves from the OP area to the central supply department for sterilized materials with barcodes, data matrix, QR codes or RFID transponder. NEXUS software "receives" the sieves for primary cleaning in the washers. The easy-to-use documentation software records the procedure instrument-specific and controls work at the packing spot after initial washing.
Users appreciate the detailed process control and operation via touchscreen, which simplify the process enormously.
NEXUS / SPM: The placement of the siev can be supported with a variety of media.
OP planning control via NEXUS software quickly provides OP planners with an overview of resources, which are available and required for a planned operation. For example, operation theaters, staff and instruments are requested and booked automatically. Postponements due to emergencies are scheduled thanks to integrated planning; all those involved are informed. The procedure can be documented live during an operation; a decisive factor in this is the direct entry of performance. Material use is recorded on a cost unit basis. Consequently, hospital contribution costing is put on a more solid basis, and the cost effectiveness of an operation is linked
via NEXUS / SPM with the prescribed hygiene. Hospital management obtains the desired transparency of economic factors and quality, which provide a sophisticated basis for making decisions concerning potential measures.
NEXUS / SPM: The web interface is very useroriented and can be customized.
Please refer to the explanations in the annual report of 31 December 2011 for information about the essential chances and risks in the development of NEXUS Group. There have been no essential changes in the meantime.
We were able to finish the first quarter 2012 very successfully continuing our unabated positive development of the last years. Sales increases of 18.3% and an increase of the Group result of 32% as well as of the operative cash flow of 57% are pleasing results. Although we already had outstanding increase rates in the previous years, we are still able to improve our figures continually.
We are heading into the rest of the year with confidence. The long-term strategy of our business, our strong product portfolio and the high number of orders on hand will help us to keep growing even in difficult economic times. Although development of revenue was hindered by company acquisitions, we do not expect this to be a major burden. Achievement of our ambitious goals over the coming months will depend more on the quality of our development projects and challenging customer projects. However, we also have reason to look to the future with a lot of optimism here.
The fact that the securities market is rewarding our positive development with increasing stock prices is very pleasing news. With respect to our business, we are determined to support the positive development on the securities market with continually increasing business figures.
The director's holders of the Supervisory Board and the Executive Board are as follows on 31 March 2012 in comparison to the previous year:
This interim report from the NEXUS Group of 31 March 2012 has been prepared in keeping with the International Financial Reporting Standards (IFRS) as they are applied in the EU. The interpretation of the International Financial Reporting Interpretation Committee (IFRIC) has been taken into account.
The regulations of IAS 34 have been observed in the interim report of 31 March 2012. This refers to a summarized report, which does not contain all information of an IFRS Group Financial Statement, and consequently this report should be read in connection with the Appendix of the Group Financial Statement 2011. The same accounting and valuation methods were used in the Group Financial Statement for the business year 2011.
The report has not been audited.
| Numbers of stock owned |
Numbers of options |
|
|---|---|---|
| Superviory Board | ||
| Dr. jur. Hans-Joachim König | 101,239 Prev. year (101,239) |
0 Prev. year (0) |
| Prof. Dr. Alexander Pocsay | 121,500 Prev. year (121,500) |
0 Prev. year (0) |
| Erwin Hauser | 15,000 Prev. year (15,000) |
0 Prev. year (0) |
| Matthias Gaebler | 0 Prev. year (0) |
0 Prev. year (0) |
| Master of Business Administration (FH) Wolfgang Dörflinger |
0 Prev. year (0) |
0 Prev. year (0) |
| Prof. Dr. Ulrich Krystek | 0 Prev. year (0) |
0 Prev. year (0) |
| Executive Board | ||
| Dr. Ingo Behrendt (MBA) |
169,000 Prev. year (169,000) |
0 Prev. year (0) |
| Ralf Heilig (MBA) |
135,350 Prev. year (135,350) |
0 Prev. year (0) |
| Edgar Kuner (Dipl. Engineer) |
248,051 Prev. year (253,051) |
0 Prev. year (0) |
Following a stock price leap from € 6.50 to above € 7 for a time at the end of 2011, NEXUS shares started the year 2012 at an initially listed price of € 7.10. The price increased to above € 7.50 at the end of January and remained there. After an approx. four-week consolidation phase in this range, the price of NEXUS stocks rose above the € 8
| General stockholders meeting, Stuttgart (D | 23 May |
|---|---|
| Half-year Report | 20 August |
| Quarterly Report - third quarter | 12 November |
| German equity forum, Frankfurt (D) | 12 - 14 November |
| Deutscher Roentgenkongress, Berlin (D) | 16 - 20 May |
| HIT, Paris (F) | 22 - 25 May |
| Jahrestagung Pathologie, Berlin (D) | 01 - 03 June |
| KTQ-Forum, Berlin (D) | 19 - 20 Oktober |
| IFAS, Zurich (CH) | 23 - 26 Oktober |
| MEDICA & BeraterDialog, Düsseldorf (D) | 14 - 17 November |
mark for the first time on 27 February. Following a somewhat more volatile phase from the end of February until 23 March, during which performance fluctuated between € 7.96 and € 8.33, the price of NEXUS stocks again rose with the publication of the annual report 2011. The stock price headed for the mark of € 8.50 per share on 26 March, the day on which the financial report for the business year 2011 was issued, and on the following days. Then the price of NEXUS stocks leveled out at approx. € 8.50 at the end of April. The general drop in stock prices, which financial experts attribute to the state elections in North Rhine-Westphalia and the political events in Greece, also put pressure on NEXUS stocks. A consolidation phase resulted, which is continuing today. The current price is hovering between € 7.50 and € 8.
| Group statement of income and accumulated earnings | 03/31/2012 | 03/31/2011 |
|---|---|---|
| KEUR | KEUR | |
| Revenue | 13,855 | 11,710 |
| Development work capitalized | 910 | 992 |
| Other operating income | 423 | 335 |
| Cost of materials including purchased services | 1,870 | 1,931 |
| Personnel costs | 8,300 | 6,395 |
| Depreciation | 1,476 | 1,419 |
| Other operating expenses | 2,251 | 2,311 |
| Operating result | 1,291 | 981 |
| Finance Income | 167 | 155 |
| Finance Expenses | 51 | 10 |
| Result before tax on profit | 1,407 | 1,126 |
| Taxes on profit | -6 | 52 |
| Consolidated result | 1,413 | 1,074 |
| Of the period result, attributed to: - Stockholders of NEXUS AG - Minority interests |
1,452 -39 |
1,059 15 |
| Period result per share in KEUR | ||
| Weighted average of issued shares in circulation (in thousands) - simple - diluted |
14,284 0.10 0.10 |
14,71 0.08 0.08 |
03/31/2012 and 12/31/2011
| 03/31/2012 | 12/31/2011 | |
|---|---|---|
| KEUR | KEUR | |
| Consolidated result | 1,413 | 1,074 |
| Actuarial profits and losses (after taxes on profit) | -21 | 6 |
| Differences from the conversion of foreign currency (after taxes on profit) | -145 | -275 |
| Market value changes from assets available for sale (after taxes on profit) | 0 | -1 |
| Other Overall Result | -166 | -270 |
| Overall Result of the Period | 1,247 | 804 |
| Of the overall result, attributed to: | ||
| - Stockholders of NEXUS AG | 1,286 | 789 |
| - Minority interests | -39 | 15 |
| Assets | 03/31/2012 | 12/31/2011 |
|---|---|---|
| KEUR | KEUR | |
| LONG-TERM ASSETS | ||
| Goodwill | 18,322 | 18,433 |
| Other intangible assets | 17,779 | 18,231 |
| Fixed assets | 1,827 | 1,762 |
| Shares in affiliated companies | 90 | 90 |
| Credited deferred taxes | 3,179 | 3,033 |
| Other financial assets | 40 | 74 |
| Total of long-term assets | 41,237 | 41,623 |
| Short-term assets | ||
| Inventories | 416 | 135 |
| Trade receivables and other receivables | 12,761 | 14,364 |
| Receivables from tax on profits | 89 | 52 |
| Other non-financial assets | 1,665 | 903 |
| Other financial assets | 2,030 | 1,254 |
| Short-term financial assets | 10,034 | 10,056 |
| Cash and balance in bank | 17,327 | 12,033 |
| Total of short-term assets | 44,322 | 38,797 |
| Total assets | 85,559 | 80,420 |
| Equity and liabilities | 03/31/2012 | 12/31/2011 |
|---|---|---|
| KEUR | KEUR | |
| Capital and accruals | ||
| Subscribed capital | 14,305 | 14,305 |
| Capital reserves | 19,478 | 19,553 |
| Net loss for the year | 24,004 | 19,155 |
| Consolidated net income | 1,452 | 4,770 |
| Other cumulated Group result | -166 | 134 |
| Own shares | -56 | -46 |
| Equity capital attributable to stockholders of the parent company |
59,017 | 57,871 |
| Minority interests | 299 | 284 |
| Total equity | 59,316 | 58,155 |
| Long-term debts | ||
| Pension obligations | 1,907 | 1,884 |
| Debited deferred taxes | 1,504 | 1,425 |
| Other financial assets | 1.623 | 1.707 |
| Total of long-term debts | 5,034 | 5,016 |
| Short-term debts | ||
| Accruals | 1,350 | 1,380 |
| Financial liabilities | 17 | 88 |
| Trade accounts payable | 3,198 | 3,444 |
| Liabilities from tax on profit | 1,393 | 172 |
| Deferred revenue liability | 6,962 | 2,188 |
| Other non-financial debts | 5,357 | 7,107 |
| Other financial debts | 2,932 | 2,870 |
| Total of short-term debts | 21,209 | 17,249 |
| Total assets | 85,559 | 80,420 |
| 2012 | 2011 | |
|---|---|---|
| KEUR | KEUR | |
| 1. Cash Flow from Current Business Transactions | ||
| Group annual result before tax on income | 1,407 | 1,126 |
| Depreciation and amortization of intangible assets and plant, equipment and other fixed assets | 1,476 | 1,419 |
| Other expenses/income with no impact on cash | -53 | 9 |
| Increase/decrease in inventories | -95 | -80 |
| Increase/decrease in trade receivables and other assets that cannot be allocated to investing or financing activities |
-335 | -1,571 |
| Increases and decreases of accruals insofar as not entered in equity capital | -115 | 366 |
| Increase/decrease in trade receivables and other liabilities that cannot be allocated to investing or financing activities |
3,959 | 2,625 |
| Paid interest | -51 | -1 |
| Received interest | 207 | 72 |
| Income taxes paid | -50 | -27 |
| Income taxes received | 3 | 90 |
| 6,353 | 4,028 | |
| 2. Cash Flow from Investment Activities | ||
| Cash paid for investments in intangible and fixed assets | -978 | -992 |
| -978 | -992 | |
| 3. Cash Flow from Financing Activities | ||
| Amount paid out for redeeming loans | -71 | 8 |
| Erwerb eigener Anteile | -10 | 0 |
| -81 | 8 | |
| 4. Amount of cash and cash equivalents at end of period | ||
| Cash relevant changes in cash and cash equivalents (sum of 1 + 2 + 3) | 5,294 | 3,044 |
| Cash and cash equivalents at beginning of fiscal year | 12,033 | 18,575 |
| 17,327 | 21,619 | |
| 5. Composition of cash and cash equivalents | ||
| Cash on hand | 17,327 | 21,619 |
| 17,327 | 21,619 |
| Group Equity Change Statement |
Subscribed capital KEUR |
Capital reserves KEUR |
Other provisions KEUR |
Equity diference from curency conversion KEUR |
BReserve for financial Instruments KEUR |
Reserve for pensions KEUR |
Consolidated loss carry forward KEUR |
deficit / profit Consolidated KEUR |
Own Shares KEUR |
Equity cap , attributable to stockh of parent KEUR |
Minority interest KEUR |
Total equity KEUR |
Authori zed capital 13 KEUR |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Consolidated equity as of 12/31/2010 |
14,171 | 18,778 | 0 | 916 | -10 | -630 | 15,816 | 3,447 | -26 | 52,462 | 334 | 52,796 | 6,622 |
| Transfer of 2010 consolidated loss to consolidated loss carry-forward |
3,447 | -3,447 | 0 | 0 | |||||||||
| Total of the result entered directly into equity capital |
-276 | 0 | 7 | -1 | -270 | -270 | |||||||
| Overall Result 2011 | 0 | 0 | 0 | -276 | 0 | 7 | 3,447 | -3,447 | -1 | -270 | -270 | ||
| Consolidated net income 2011 |
1,059 | 1,059 | 10 | 1,069 | |||||||||
| Overall Result of period 2011 |
0 | 0 | 0 | -276 | 0 | 7 | 3,447 | -2,388 | -1 | 789 | 10 | 799 | |
| Consolidated equity as of 03/31/2011 |
14,171 | 18,778 | 0 | 640 | -10 | -623 | 19,263 | 1,059 | -27 | 53,251 | 344 | 53,595 | 6,622 |
| Consolidated equity as of 12/31/2011 |
14,305 | 19,553 | 0 | 1,192 | 0 | -1,058 | 19,155 | 4,770 | -46 | 57,871 | 284 | 58,155 | 6,488 |
| Profit before tax 2011 entered directly in accumulated deficit |
4,770 | -4,770 | 0 | 0 | |||||||||
| Total of the result entered directly into equity capital |
-199 | 0 | -21 | -220 | 54 | -166 | |||||||
| Purchase of treasury shares | -75 | -10 | -85 | -85 | |||||||||
| Overall Result of the Period |
0 | -75 | 0 | -199 | 0 | -21 | 4,770 | -4,770 | -10 | -305 | 54 | -251 | |
| Consolidated net income 2012 | 1,452 | 1,452 | -39 | 1,413 | |||||||||
| Overall Result of period | 0 | -75 | 0 | -199 | 0 | -21 | 4,770 | -3,318 | -10 | 1,147 | 15 | 1,162 | |
| Consolidated equity as of 03/31/2012 |
14,305 | 19,478 | 0 | 993 | 0 | -1,079 | 23,924 | 1,452 | -56 | 59,017 | 299 | 59,316 | 6,488 |
To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view ot the assets, liabilities, financial position and profit or loss of the group, and the interim management report of the group includes a fair review of the development and performance of the business and the position of the group, together with a description of the principal opportunities and risks associated with the expected development of the group for the remaining months of the financial year.
Villingen-Schwenningen, May 21th, 2012
NEXUS AG Executive Board
NEXUS AG, Auf der Steig 6, D-78052 Villingen-Schwenningen Telefon +49 (0)7721 8482 -0, Fax +49 (0)7721 8482-888 www.nexus-ag.de, [email protected]
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.