Quarterly Report • May 10, 2013
Quarterly Report
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Dear Stockholders:
Very pleasing growth in sales and good development of earnings: The NEXUS team was able to show an extremely positive track record in the first quarter 2013.
With sales increases of approx. 20% and improved revenues of approx. 18.1%, we were able to continue our development of increasing sales with a simultaneously high rate of increasing profits in the first quarter 2013.
This is a result, which is not to be taken for granted following the strong growth figures of the last periods. We are profiting from the good demand for our products and also from our newly acquired companies in this first quarter, which are responsible for part of the growth.
Highlights Q1 - 2013 Company development
Our wide range of products in the meantime is also providing us with additional marketing potential. Today, we can provide our customers with a complete range of market-leading diagnostic information systems in addition to NEXUS / HIS. We also provide complete solutions for rehabilitation institutions and senior citizen homes. This is a tre-
mendous advantage for our customers, because they no longer have to face technical integration aspects and delivery from one source substantially reduces complexity for them.
However, our focus in the first quarter was not so much on sales and marketing, but rather on the challenges that we face in implementing our large projects. We were able to make considerable progress in these projects in the first quarter. We advanced numerous new introductions and development tasks substantially, so that we can meet decisive deadlines this year. Against the background of many new orders, we are extremely satisfied with this situation.
We also started with integration of CoM.Med GmbH in the first quarter, which we acquired on 1 January 2013. With 11 employees, the company develops and markets solutions for administration and billing for rehabilitation clinics in Germany and Austria. Now we can also provide complete solutions for rehabilitation institutions from the NEXUS portfolio, a gap that we have wanted to fill for quite some time.
The first quarter started very well with respect to the number of new orders. We received orders from a total of 86 hospitals, rehabilitation institutions and senior citizen homes. They included a call for bids for a complete hospital system, which we were able to win with NEXUS / HIS. The number of incoming orders greatly increased in France. Seven hospitals decided in favor of our OP documentation or CSSD software. In the area of senior citizen homes, we recorded orders from 33 institutions, especially for software conversions in Switzerland and Germany. Our product E-Qalin started the year very successfully in Austria. Within our diagnostic product groups, we were able to win institutions of the amedes Group for our pathology system and other customers in obstetrics (among others, Aachen University Hospital).
NEXUS is positioned more widely and stably today than in the past. Our incoming orders are smoothing out and coming from different business areas. Consequently, we are able to react very dynamically to different customer groups and the developments in various markets. The increased complexity is also creating very varied challenges, which we have to face in the upcoming months. We have to increase the professionalism of support for our regular customers even further and gain new employees for this area at the same time.
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 | 03/31/2013 | 03/31/2012 | |
|---|---|---|---|
| KEUR | % | KEUR | |
| Sales | 16,604 | 19,8 | 13,855 |
| Sales HC-Software | 14,509 | 12,9 | 12,853 |
| Sales HC-Service | 2,095 | 109,1 | 1,002 |
| Sales National | 9,479 | 37,3 | 6,903 |
| Sales International | 7,125 | 2,5 | 6,952 |
| Result of the period before tax | 1,662 | 18,1 | 1,407 |
| Result of the period | 1,702 | 20,5 | 1,413 |
| EBITDA | 3,240 | 17,1 | 2,767 |
| Result per Share | 0,12 | 20,0 | 0,10 |
| Investments in intangible and tangible assets | 1,299 | 32,8 | 978 |
| Depreciation | 1,612 | 9,2 | 1,476 |
| Liquidity | 25,992 | -5,0 | 27,362 |
| Cash Flow from operative activities | 4,547 | -28,4 | 6,353 |
| Employees (31 March) | 578 | 18,9 | 486 |
Report about the Profit, Financial and Asset Situation
We were able to achieve especially strong growth in the Healthcare Service area. The business area developed positively, and the sales of the acquired ASS.TEC GmbH, Villingen, were consolidated. Sales increased from KEUR 1,002 to KEUR 2,095. The Healthcare Software segment increased by approx. 12.9% to KEUR 14,509 (Q1-2012: KEUR 12,853); E&L medical systems GmbH, Villingen, was consolidated here for the first time. Without the sales of the companies consolidated for the first time, sales would have increased by 7.1% in the first quarter.
In addition to Switzerland, the highest volumes were in France and Austria. We were able to increase sales in Germany by 37.3% to KEUR 9,479 (Q1-2012: KEUR 6,903). The different growth rates in the regions are especially due to billing procedures, but also to the consolidation of the new subsidiaries in the first quarter. Exchange rate fluctuations compared to 2012 were not significant, because the average exchange rate of the Swiss franc as of 31 March 2013 SFR (1.21) only differs slightly from the average rate on 31 December 2012 (SFR 1.21).
We continued the uninterrupted positive development of sales of the NEXUS-Group of many years in the first quarter 2013!
The operating result increased by approx. 26.1% and achieved KEUR 1,628 in the first quarter compared to KEUR 1,291 in the previous year. The result before taxes and interest (EBIT) amounted to KEUR 1,662 following KEUR 1,407 (Q1-2012) and increased by approx. 18.1% compared to the previous year. Depreciation of intangible assets, which increased by approx. 9% to KEUR 1,612 (Q1-2012: KEUR 1,476) due the recent acquisitions, affected the result negatively.
The EBITDA increased correspondingly to KEUR 3,240 following KEUR 2,767 (+17.1%). One-time effects and expenses for company integrations are represented in their complete amount in the operating result.
Our operative cash flow remained strong at KEUR 4,547 in Q1-2013, but did not reach the high value of the previous year of KEUR 6,353. Special effects played a greater role in this last year.
Investments in the amount of KEUR 1.299 were made (Q1-2012: KEUR 978).
The balance sheet total increased from KEUR 101,167 to KEUR 105,124 compared to 31 December 2012. There are no essential bank liabilities. Intangible assets and goodwill add up to a total of KEUR 49,241 following KEUR 49,495 (31 Dec. 2012). Receivables from customers decreased from KEUR 19,122 to KEUR 18,790 compared to 31 December 2012.
| 01/01/ - 03/31/12 |
01/01/ - 03/31/13 |
∆ IN % |
|
|---|---|---|---|
| KEUR | KEUR | ||
| Healthcare Software | 12,853 | 14,509 | 12.9 |
| Healthcare Service | 1,002 | 2,095 | 109.1 |
| Total | 13,855 | 16,604 | 19.8 |
| 01/01/ - 03/31/12 |
01/01/ - 03/31/13 |
∆ IN % |
|
|---|---|---|---|
| KEUR | KEUR | ||
| Germany | 6,903 | 9,479 | 37.3 |
| Switzerland | 5,744 | 5,709 | -0.6 |
| Austria | 295 | 383 | 29.8 |
| Italy | 2 | 2 | 0.0 |
| Rest of world / USA | 911 | 1,031 | 13.2 |
| Total | 13,855 | 16,604 | 19.8 |
NEXUS-Group employed a total of 578 people as of 31 March 2013 (Q1-2012: 486 employees). The great majority of the employees (517) work in the Healthcare Software segment. The Health Care Service segment employs 61 people (Q1-2011: 35).
The new Radiology Information System NEXUS / RIS is based on modern software architecture, which enables fast workflows and short paths. The experience from hundreds of installations has been integrated into state-of-the-art technology with one objective: To save time!
It is the newest generation of software, which NEXUS has to offer. With the new NEXUS / RIS, we have made great progress in ergonomy and function strength, a fact that radiologists and MTAs have confirmed. It's about time from the viewpoint of users. The market had not produced any completely new, technologically strong RIS for more than a decade. The customers are correspondingly enthusiastic when they test the new possibilities intensively.
The pre-configured diagnosis of examinations is especially striking. This provides radiologists and doctors with valuable support in structuring their workflows and saves time. NEXUS supplies a novel interface completely adapted to users for this: the NEXUS Workspace. In addition, plugins ensure a modular system.
NEXUS / HIS is designed on principle to be simple and user-friendly and is based on state-of-the-art technology. Hospital staff access required information with one click thanks to our "One-Click to Information" philosophy. The new generation of hospital information systems enables even faster access to patient data; thanks to the use of mobile solutions, hospital staff have all relevant information on hand at all times. User-defined apps for medicine and care simplify everyday hospital work and are redundant throughout the system.
The user-friendly software NEXUS / SPM supports the cost-intensive supply of sterilized goods by the CSSD, which is critical for hygiene. Transparency and efficiency in the Central Sterile Supply Department (CSSD) are extremely important both with respect to finances and quality.
The NEXUS solution for the sterilization process supports and guides the staff via touch control in mastering their tasks. A detailed, prescribed procedure in NEXUS / SPM completely controls the cleaning workflow in the CSSD and comprehensively documents preparation of instruments with respect to quality – 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. The software "receives" the sieves for primary washing and records the workflow with respect to specific instruments.
A patient management system cannot be a standalone system anymore today, but instead has to be integrated into a HIS with respect to functionality and ergonomy. This is the reason why NEXUS / PDMS was developed as an integral component of NEXUS / HIS – including equipment links.
NEXUS / PDMS is not just an information system in this context, but also a communication system. The processes of intensive care medicine are depicted comprehensively. As a result, drug prescriptions, care process planning, entry of services performed, billing and display of the patient chart are performed using the standard module of the NEXUS / HIS solution. The advantage: doctors and nurses can find what they want more easily, because the same applications are used on wards and in intensive care. Access to the patient chart is retained when a patient is moved from intensive care. NEXUS has broken down the wall between intensive care solutions and HIS with this innovative approach.
Please refer to the explanations in the annual report of 31 December 2012 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 2013 very successfully continuing our unabated positive development of the last years. Sales increases of 19.8% and an increase of the Group result of 18.1% and a strong operative cash flow are pleasing results. Although we already had outstanding increase rates in the previous years, we are still able to improve our figures continually.
The penetration of new markets and business areas is significant, something that we have been pushing consistently for the past two years with product developments and company acquisitions. This is creating great potential, but also challenges to which we have to dedicate ourselves with tremendous intensity. We will have to prove during the next periods that we can continue to improve and expand our revenue picture in spite of these considerable investments.
We already see a lot of positive results in our new business areas and are very optimistic concerning the rest of 2013 thanks to our strong product portfolio and our good order situation.
The director's holders of the Supervisory Board and the Executive Board are as follows on 31 March 2013 in comparison to the previous year:
| 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 (Graduate Engineer) |
248,051 Prev. year (253,051) |
0 Prev. year (0) |
This interim report from the NEXUS-Group of 31 March 2013 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 2013. 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 2012. The same accounting and valuation methods were used in the Group Financial Statement for the business year 2012.
The report has not been audited.
Following a stock price leap from €9.10 to €9.69 on 28 December at the end of 2012, NEXUS shares started the year 2013 at an initially listed price of €9.49. The price declined in January to the September level of the prior year from €9.20 to €8.70. The price decreased to its lo-
| General stockholders meeting, Stuttgart (D | 13 May |
|---|---|
| Half-year Report | 19 August |
| Quarterly Report - third quarter | 11 November |
| German equity forum, Frankfurt (D) | 11 - 13 November |
| HIT, Paris (F) | 09 - 12 May |
| Jahrestagung Radioonkologie, Berlin (D) | 09 - 12 May |
| Jahrestagung Pathologie, Heidelberg (D) | 23 - 26 May |
| Deutscher Roentgenkongress, Berlin (D) | 29 - 01 June |
| IFAS, Lausanne (CH) | 30 - 01 November |
| MEDICA & BeraterDialog, Düsseldorf (D) | 20 - 23 November |
west point of €8.69 in the time leading into February. NEXUS shares recovered in February to the second highest price until now and were listed at €9.34. NEXUS shares rose sharply for a short time at the time of publishing the annual report 2012 on 25 March. Publication of the invitation to the annual stockholders meeting at the beginning of April with the proposal to pay a dividend of €0.11 per share affected the price negatively (€8.63) after a direct rise (€9.12). Afterward, the stock price moved to a great extent within a range parallel to the TecDax in a sideways tendency around €9.00.
+ Klinikum Memmingen, Memmingen (D)
+ Centre Hospitalier Intercommunal, Meulan Les Mureaux (F)
| Group statement of income and accumulated earnings | 03/31/2013 | 03/31/2012 |
|---|---|---|
| KEUR | KEUR | |
| Revenue | 16,604 | 13,855 |
| Changes in inventories of finished goods and work in progress | 6 | 0 |
| Development work capitalized | 1,265 | 910 |
| Other operating income | 438 | 423 |
| Cost of materials including purchased services | 3,589 | 1,870 |
| Personnel costs | 9,425 | 8,300 |
| Depreciation | 1,612 | 1,476 |
| Other operating expenses | 2,059 | 2,251 |
| Operating result | 1,628 | 1,291 |
| Results of equity-accounted investments | 1 | 0 |
| Finance Income | 76 | 167 |
| Finance Expenses | 43 | 51 |
| Result before tax on profit | 1,662 | 1,407 |
| Taxes on profit | -40 | -6 |
| Consolidated result | 1,702 | 1,413 |
| Of the period result, attributed to: - Stockholders of NEXUS AG - Minority interests |
1,843 -141 |
1,452 -39 |
| Period result per share in KEUR | ||
| Weighted average of issued shares in circulation (in thousands) - simple - diluted |
15,064 0,12 0,12 |
14,284 0,10 0,10 |
03/31/2013 and 12/31/2012
| 03/31/2013 | 12/31/2012 | |
|---|---|---|
| KEUR | KEUR | |
| Consolidated result | 1,702 | 1,413 |
| Actuarial profits and losses (after taxes on profit) | -14 | -21 |
| Differences from the conversion of foreign currency (after taxes on profit) | 356 | -145 |
| Market value changes from assets available for sale (after taxes on profit) | -1 | 0 |
| Other Overall Result | 341 | -166 |
| Overall Result of the Period | 2,043 | 1,247 |
| Of the overall result, attributed to: | ||
| - Stockholders of NEXUS AG | 2,184 | 1,286 |
| - Minority interests | -141 | -39 |
| Assets | 03/31/2013 | 12/31/2012 |
|---|---|---|
| KEUR | KEUR | |
| LONG-TERM ASSETS | ||
| Goodwill | 25,121 | 25,227 |
| Other intangible assets | 24,120 | 24,267 |
| Fixed assets | 1,865 | 1,925 |
| Shares in affiliated companies | 83 | 43 |
| Credited deferred taxes | 4,250 | 4,174 |
| Other financial assets | 91 | 131 |
| Total of long-term assets | 55,530 | 55,767 |
| Short-term assets | ||
| Inventories | 286 | 414 |
| Trade receivables and other receivables | 18,828 | 19,144 |
| Receivables from tax on profits | 669 | 509 |
| Other non-financial assets | 2,155 | 1,153 |
| Other financial assets | 1,664 | 1,129 |
| Short-term financial assets | 10,106 | 10,145 |
| Cash and balance in bank | 15,886 | 12,906 |
| Total of short-term assets | 49,594 | 45,400 |
| Total assets | 105,124 | 101,167 |
| Equity and liabilities | 03/31/2013 | 12/31/2012 |
|---|---|---|
| KEUR | KEUR | |
| Capital and accruals | ||
| Subscribed capital | 15,105 | 15,105 |
| Capital reserves | 25,757 | 25,757 |
| Net loss for the year | 28,524 | 22,398 |
| Consolidated net income | 1,843 | 6,128 |
| Other cumulated Group result | -1,230 | -861 |
| Own shares | -293 | -296 |
| Equity capital attributable to stockholders of the parent company |
69,706 | 68,231 |
| Minority interests | -211 | -118 |
| Total equity | 69,495 | 68,113 |
| Long-term debts | ||
| Pension obligations | 2,678 | 2,597 |
| Debited deferred taxes | 3,844 | 3,840 |
| Other financial assets | 5,030 | 5,030 |
| Total of long-term debts | 11,552 | 11,467 |
| Short-term debts | ||
| Accruals | 553 | 1,315 |
| Financial liabilities | 117 | 385 |
| Trade accounts payable | 3,505 | 4,079 |
| Liabilities from tax on profit | 516 | 513 |
| Deferred revenue liability | 8,787 | 3,569 |
| Other non-financial debts | 6,577 | 8,132 |
| Other financial debts | 4,022 | 3,594 |
| Total of short-term debts | 24,077 | 21,587 |
| Total assets | 105,124 | 101,167 |
| 2013 | 2012 | |
|---|---|---|
| KEUR | KEUR | |
| 1. Cash Flow from Current Business Transactions | ||
| Group annual result before tax on income | 1,662 | 1,407 |
| Depreciation and amortization of intangible assets and plant, equipment and other fixed assets | 1,612 | 1,476 |
| Other expenses/income with no impact on cash | 39 | -53 |
| Increase/decrease in inventories | 128 | -95 |
| Increase/decrease in trade receivables and other assets that cannot be allocated to investing or financing activities |
-1,434 | -335 |
| Increases and decreases of accruals insofar as not entered in equity capital | -725 | -115 |
| Increase/decrease in trade receivables and other liabilities that cannot be allocated to investing or financing activities |
3,194 | 3,959 |
| Paid interest | -1 | -51 |
| Received interest | 90 | 207 |
| Income taxes paid | -21 | -50 |
| Income taxes received | 3 | 3 |
| 4,547 | 6,353 | |
| 2. Cash Flow from Investment Activities | ||
| Cash paid for investments in intangible and fixed assets | -1,299 | -978 |
| -1,299 | -978 | |
| 3. Cash Flow from Financing Activities | ||
| Amount paid out for redeeming loans | -268 | -71 |
| Erwerb eigener Anteile | 0 | -10 |
| -268 | -81 | |
| 4. Amount of cash and cash equivalents at end of period | ||
| Cash relevant changes in cash and cash equivalents (sum of 1 + 2 + 3) | 2,980 | 5,294 |
| Cash and cash equivalents at beginning of fiscal year | 12,521 | 12,033 |
| 15,501 | 17,327 | |
| 5. Composition of cash and cash equivalents | ||
| Cash on hand | 15,618 | 17,327 |
| Bank liabilities due on demand | -117 | 0 |
| 15,501 | 17,327 |
| Group Equity Change Statement |
Subscribed capital KEUR |
Capital reserves 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 KEUR |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Consolidated equity as of 12/31/2011 |
14,305 | 19,553 | 1,192 | 0 | -1,058 | 19,155 | 4,770 | -46 | 57,871 | 284 | 58,155 | 6,488 |
| Transfer of 2011 consolidated loss to consolidated loss carry-forward |
4,770 | -4,770 | 0 | 0 | ||||||||
| Total of the result entered directly into equity capital |
-199 | 0 | -21 | -220 | 54 | -166 | ||||||
| Erwerb eigener Anteile | -75 | -10 | -85 | -85 | ||||||||
| Overall Result 2012 | 0 | -75 | -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 | -199 | 0 | -21 | 4,770 | -3,318 | -10 | 1,147 | 15 | 1,162 | |
| Consolidated equity as of 03/31/2012 |
14,305 | 19,478 | 993 | 0 | -1,079 | 23,924 | 1,452 | -56 | 59,017 | 299 | 59,316 | 6,488 |
| Consolidated equity as of 12/31/2012 |
15,105 | 25,757 | 1,076 | -310 | -1,627 | 22,398 | 6,128 | -296 | 68,231 | -118 | 68,113 | 6,353 |
| Profit before tax 2012 entered directly in accumulated deficit |
6,128 | -6,128 | 0 | 0 | ||||||||
| Total of the result entered directly into equity capital |
-356 | -1 | -14 | 3 | -368 | -368 | ||||||
| Overall Result of the Period |
0 | 0 | -356 | -1 | -14 | 6,128 | -6,128 | 3 | -368 | 0 | -368 | |
| Consolidated net income 2013 | 1,843 | 1,843 | -93 | 1,750 | ||||||||
| Overall Result of period | 0 | -356 | -1 | -14 | 6,128 | -6,128 | 3 | 1,475 | -93 | 1,382 | ||
| Consolidated equity as of 03/31/2013 |
15,105 | 25,757 | 720 | -311 | -1,641 | 28,526 | 1,843 | -293 | 69,706 | -211 | 69,495 | 6,353 |
13
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 10th, 2013
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]
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