AI assistant
Ramsay Générale de Santé — Earnings Release 2008
Feb 12, 2009
1620_iss_2009-02-12_88eadfd8-f2e6-4310-9094-2547bf40deb6.pdf
Earnings Release
Open in viewerOpens in your device viewer
Press Release
Results for the year ended December 31, 2008: Decline in operating margin Reduction in net debt achieved through asset disposals
Paris, February 12, 2009
Revenue: The Group's slight improvement in organic growth in the fourth quarter of 2008 (+1.2%) must be set against the changes in the economic climate during this period.(*)
For the year ended December 31, 2008, organic growth came to 3.7%.
EBITDA: The operating margin (11.6% in 2008 compared to 12.5% in 2007) suffered the impact of insufficient tariff increases, which were not able to offset either rising operating costs or lower volumes of business (particularly with respect to in-patient hospitalization), despite continuing efforts to control operating expenses.
| €m | 2008 | Change | 2007 |
|---|---|---|---|
| Revenue | 1,983.8 | +4.1% | 1,906.0 |
| EBITDA | 229.6 | –4,0% | 239.2 |
| Current operating profit | 114.8 | –12.6% | 131.4 |
| As % of revenue | 5.8% | –1.1 points | 6.9% |
| Operating profit | 160.4 | +50.2% | 106.8 |
| Group share of net profit | 87.2 | +91.2% | 45.6 |
| Net earnings per share (€) | 1.59 | +89.3% | 0.84 |
(*) It is also worth noting that the revenue figure for the fourth quarter of 2007 took into account the reimbursement of the tariff decrease enacted by the ministerial decree of September 2006. Restated for this item, the improvement in organic growth was +2.5%.
Revenue: Consolidated revenue for the year ended December 31, 2008 amounted to €1,983.8m, up from €1,906.0m in the previous year.
| €m | 2008 | 2007 | Change 2008/2007 |
Q4 2008 | Q4 2007 | Change 2008/2007 |
|---|---|---|---|---|---|---|
| Published revenue | 1,983.8 | 1,906.0 | 4.1% | 517.7 | 503.2 | 2.9% |
| Organic revenue | 1,952.5 | 1,883.5 | 3.7% | 496.7 | 491.0 | 1.2% |
| Changes in scope | 31.3 | 22.5 | - | 21.0 | 12.2 | N/S |
In the fourth quarter of 2008, Hospital Care France recorded a 1.0% improvement in organic growth, which breaks down as follows:
- a +0.8% price impact (primarily attributable to the 0.75% Acute Care tariff increase as of March 1, 2008);
- a volume/mix effect of +0.2%.
Changes in the scope of consolidation result from the acquisitions of both Clinique de la Francilienne and Clinique de l'Orangerie in the eastern Paris region as well as Centre Hospitalier Privé de la Loire in Saint-Etienne combined with a number of disposals, particularly of the Group's clinics in Tuscany during the fourth quarter of 2008.
Revenue generated in Italy was down 31.7% over the fourth quarter, mainly as a result of these disposals.
Results: Operating profit rose significantly, from €106.8m to €160.4m, primarily as a result of:
- the net capital gain of €59m recognized on the sale of the premises of four clinics in the Paris region;
- the net capital gain of €11m arising on the disposal of the Group's Italian subsidiaries;
- a favorable comparison basis with 2007, during which costs related to the OPAS transaction announced on March 8, 2007 had been recognized for over €8m, together with the indemnity of around €6m paid in connection with the repurchase of shares in the real estate company SCI Lyon Mermoz.
The Group share of net profit thus increased from €45.6m in 2007 to €87.2m in 2008.
Debt: Net financial debt per IFRS was €913.0m at end-December 2008 (compared to €1,001.3m at end-December 2007). This decline is mainly attributable to the recording of the sale price before tax of the property assets and clinics mentioned above, less the acquisition cost of the property assets of Hôpital Privé d'Antony in early 2008.
Dates for your diary:
Publication of first quarter 2009 accounts: April 30, 2009
Annual Shareholders' Meeting: May 25, 2009
Générale de Santé, listed on Compartment A of Eurolist by Euronext Paris (formerly known as the Premier Marché) since June 2001, is included in the Midcac index. Its shares are eligible for the deferred settlement service. As the leading Group in the private hospital care sector in France, Générale de Santé has 20,000 employees, including 6,500 nurses and 3,800 assistant nurses in over 200 hospitals and clinics. With 5,200 physicians, it represents the leading independent medical community in France. Générale de Santé provides a complete range of patient care services spanning: acute care, oncology, subacute care and rehabilitation, mental health and homecare. Générale de Santé develops an original healthcare offering, combining medical excellence, organizational efficiency and a human touch; it provides an all-in-one service with an individually-adapted patient support package, before, during and after hospitalization, taking into consideration all of its patients' needs; it takes part in public-service healthcare initiatives and forms part the nationwide healthcare chain in France.
ISIN and Euronext Paris : FR0000044471 Internet: www.generale-de-sante.fr
Investor Relations/Analysts: Emmanuel de Geuser Tel. + 33 (0)1 53 23 14 89 [email protected]
Press Relations: Gérard Benedetti Tel. + 33 (0) 1 53 23 14 47 [email protected]
INCOME STATEMENT
| (in million euros) | 2006 | 2007 | 2008 |
|---|---|---|---|
| REVENUE | 1,741.5 | 1,906.0 | 1,983.8 |
| Personnel expenses and profit sharing | (787.4) | (844.0) | (894.1) |
| Purchased consumables | (337.5) | (372.8) | (396.6) |
| Other operating income and expenses | (224.4) | (234.3) | (238.6) |
| Taxes and duties | (95.2) | (104.0) | (107.6) |
| Rental expenses | (79.6) | (111.7) | (117.3) |
| EBITDA | 217.4 | 239.2 | 229.6 |
| Depreciation | (91.4) | (107.8) | (114.8) |
| Current operating profit | 126.0 | 131.4 | 114.8 |
| Other income and expenses | 187.1 | (24.6) | 45.6 |
| Operating profit | 313.1 | 106.8 | 160.4 |
| Net interest expenses | (31.4) | (30.0) | (72.5) |
| Other financial income and expenses | 2.8 | 1.4 | (2.9) |
| Share of net profit of associates | --- | --- | --- |
| Corporate income tax | (55.6) | (29.7) | 5.1 |
| NET PROFIT FOR THE PERIOD | 228.9 | 48.5 | 90.1 |
| Allocation: | |||
| Group's share of net profit | 225.4 | 45.6 | 87.2 |
| Minority interests | 3.5 | 2.9 | 2.9 |
| NET EARNINGS PER SHARE (in euros) | 4.53 | 0.84 | 1.59 |
| NET DILUTED EARNINGS PER SHARE (in euros) | 4.47 | 0.82 | 1.59 |
BALANCE SHEET – ASSETS
| (in million euros) | 12-31-2006 | 12-31-2007 | 12-31-2008 |
|---|---|---|---|
| Goodwill | 621.0 | 648.6 | 723.4 |
| Other intangible fixed assets | 7.6 | 7.3 | 15.9 |
| Property, plant and equipment | 865.6 | 960.7 | 962.5 |
| Investments in associates | 0.6 | 1.3 | 0.9 |
| Other non-current financial assets | 32.8 | 33.0 | 32.1 |
| Deferred tax assets | 38.2 | 34.8 | 54.6 |
| NON CURRENT ASSETS | 1,565.8 | 1,685.7 | 1,789.4 |
| Inventories | 32.0 | 35.0 | 38.4 |
| Trade and other receivables | 186.8 | 179.9 | 174.8 |
| Other current assets | 90.0 | 94.8 | 124.4 |
| Current tax assets | 10.2 | 11.6 | 2.8 |
| Current financial assets | 7.3 | 4.9 | 3.2 |
| Cash and cash equivalents | --- | --- | --- |
| CURRENT ASSETS | 326.3 | 326.2 | 343.6 |
| Assets held for sale | 20.0 | 84.8 | 3.1 |
| TOTAL ASSETS | 1,912.1 | 2,096.7 | 2,136.1 |
BALANCE SHEET – LIABILITIES AND EQUITY
| (in million euros) | 12-31-2006 | 12-31-2007 | 12-31-2008 |
|---|---|---|---|
| Share capital | 40.2 | 41.1 | 42.2 |
| Additional paid-in capital | 446.8 | 50.8 | 61.5 |
| Consolidated reserves | 101.5 | 304.9 | 309.5 |
| Group share of net profit | 225.4 | 45.6 | 87.2 |
| Group share of equity | 813.9 | 442.4 | 500.4 |
| Minority interests | 8.6 | 9.6 | 10.0 |
| TOTAL EQUITY | 822.5 | 452.0 | 510.4 |
| Borrowings and financial debts | 284.2 | 871.4 | 847.1 |
| Provision for pension commitments and other employee benefits |
17.4 | 29.5 | 29.6 |
| Non-current provisions | 43.4 | 26.0 | 39.5 |
| Other long term liabilities | 16.9 | 16.3 | 36.3 |
| Deferred tax liabilities | 69.2 | 84.4 | 72.2 |
| NON-CURRENT LIABILITIES | 431.1 | 1,027.6 | 1,024.7 |
| Current provisions | 21.2 | 21.2 | 17.8 |
| Accounts payable | 167.6 | 166.6 | 196.4 |
| Other current liabilities | 269.9 | 270.2 | 305.4 |
| Tax liabilities due | 37.7 | 3.5 | 26.5 |
| Short-term borrowings | 80.5 | 47.8 | 45.0 |
| Bank overdraft | 61.6 | 35.5 | 6.8 |
| CURRENT LIABILITIES | 638.5 | 544.8 | 597.9 |
| Liabilities related to assets held for sale | 20.0 | 72.3 | 3.1 |
| TOTAL LIABILITIES AND EQUITY | 1,912.1 | 2,096.7 | 2,136.1 |
STATEMENT OF CHANGES IN EQUITY
| ( in million euros ) | SHARE CAPITAL |
ADDITIONAL PAID IN CAPITAL |
RESERVES | PROFIT / (LOSS) |
GROUP SHARE OF EQUITY |
MINORITY INTERESTS |
EQUITY |
|---|---|---|---|---|---|---|---|
| equity at December 31, 2005 | 29.3 | 162.9 | 69.4 | 40.9 | 302.5 | 7.0 | 309.5 |
| Capital increase (including net fees) | 10.9 | 283.9 | -- | -- | 294.8 | -- | 294.8 |
| Treasury shares (2) | -- | -- | 1.7 | -- | 1.7 | -- | 1.7 |
| Group savings scheme | -- | -- | 7.0 | -- | 7.0 | -- | 7.0 |
| Stocks options | -- | -- | 1.6 | -- | 1.6 | -- | 1.6 |
| Prior year appropriation of earnings | -- | -- | 40.9 | (40.9) | -- | -- | -- |
| Distribution of dividends (including pre-distribution) | -- | -- | (18.8) | -- | (18.8) | (2.0) | (20.8) |
| Change in consolidation scope | -- | -- | -- | -- | -- | 0.1 | 0.1 |
| Profit for the period | -- | -- | -- | 225.4 | 225.4 | 3.5 | 228.9 |
| Gains and losses taken directly to equity | -- | -- | (0.3) | -- | (0.3) | -- | (0.3) |
| Equity at December 31, 2006 | 40.2 | 446.8 | 101.5 | 225.4 | 813.9 | 8.6 | 822.5 |
| Capital increase (including net fees) | 0.8 | 24.9 | -- | -- | 25.7 | -- | 25.7 |
| Treasury shares (2) | -- | -- | 0.3 | -- | 0.3 | -- | 0.3 |
| Stocks options | -- | -- | 1.1 | -- | 1.1 | -- | 1.1 |
| Prior year appropriation of earnings | -- | (1.1) | 226.5 | (225.4) | -- | -- | -- |
| Distribution of dividends (including pre-distribution) | -- | -- | (19.2) | -- | (19.2) | (1.9) | (21.1) |
| Exceptional distribution of additional paid-in capital | -- | (419.8) | -- | -- | (419.8) | -- | (419.8) |
| Change in consolidation scope | -- | -- | -- | -- | -- | -- | -- |
| Profit for the period. | -- | -- | -- | 45.6 | 45.6 | 2.9 | 48.5 |
| Gains and losses taken directly to equity | 0.1 | -- | (5.3) | -- | (5.2) | -- | (5.2) |
| Equity at December 31, 2007 | 41.1 | 50.8 | 304.9 | 45.6 | 442.4 | 9.6 | 452.0 |
| Capital increase | 1.1 | 10.7 | -- | -- | 11.8 | -- | 11.8 |
| Treasury shares (2) | -- | -- | (0.6) | -- | (0.6) | -- | (0.6) |
| Stocks options and free shares | -- | -- | 1.3 | -- | 1.3 | -- | 1.3 |
| Prior year appropriation of earnings | -- | -- | 45.6 | (45.6) | -- | -- | -- |
| Distribution of dividends (including pre-distribution) | -- | -- | (27.4) | -- | (27.4) | (2.7) | (30.1) |
| Change in consolidation scope | -- | -- | -- | -- | -- | 0.2 | 0.2 |
| Profit for the period. | -- | -- | -- | 87.2 | 87.2 | 2.9 | 90.1 |
| Gains and losses taken directly to equity | -- | -- | (14.3) | -- | (14.3) | -- | (14.3) |
| Equity at December 31, 2008 | 42.2 | 61.5 | 309.5 | 87.2 | 500.4 | 10.0 | 510.4 |
| 12-31-2006 | 12-31-2007 | 12-31-2008 | |||||
| (1) Dividends per share (in euros including pre-distribution) | 0.38 | 8.05 | 0.5 |
| (2) Number of treasury shares | 10 000 | --- | 53 346 |
|---|---|---|---|
| STATEMENT OF RECOGNIZED GAINS AND LOSSES | |||
|---|---|---|---|
| ( in million euros ) | 12-31-2006(1) | 12-31-2007 | 12-31-2008 |
| Net profit (Group share) | 225.4 | 45.6 | 87.2 |
| Translation differential | (0.3) | (0.1) | (0.2) |
| Retirement commitments | -- | (6.7) | 1.6 |
| Fair value of hedging financial instruments | -- | 1.5 | (15.7) |
| Gains and losses recognized directly in equity | (0.3) | (5.3) | (14.3) |
| Total gains and losses (Group share) | 225.1 | 40.3 | 72.9 |
(1) The Group opted for recording actuarial differences as equity in 2006. Therefore, the table below summarizes recognized gains and losses as changes in equity, in accordance with IAS19, paragraph 93B.
STATEMENT OF CASH FLOWS
| (in million euros) | 2006 | 2007 | 2008 |
|---|---|---|---|
| Total net consolidated profit | 228.9 | 48.5 | 90.1 |
| Depreciation | 91.4 | 107.8 | 114.8 |
| Other income and expenses | (187.1) | 24.6 | (45.6) |
| Share of net profit of associates | --- | --- | --- |
| Other financial income and expenses | 2.0 | (1.4) | 2.9 |
| Net interest expenses | 26.6 | 30.0 | 72.5 |
| Corporate income tax | 55.6 | 29.7 | (5.1) |
| EBITDA | 217.4 | 239.2 | 229.6 |
| Non cash items including provisions and reversals (transactions with no cash effect) | 0.4 | (1.4) | 3.5 |
| Other income and expenses paid | (4.7) | (18.3) | (9.7) |
| Changes in other long term assets and liabilities | 2.0 | 1.7 | (5.2) |
| Cash flow before net interest expenses & taxes | 215.1 | 221.2 | 218.2 |
| Corporate income tax paid | (61.8) | (41.7) | (4.1) |
| Change in working capital requirements | (0.7) | 0.1 | 39.2 |
| NET CASH FROM OPERATING ACTIVITIES: (A) | 152.6 | 179.6 | 253.3 |
| Purchase of property, plant & equipment and intangible assets | (221.1) | (163.3) | (131.7) |
| Proceeds from sale of tangible and intangible assets | 421.7 | 3.0 | 177.1 |
| Purchase of financial assets | (589.5) | (102.3) | (58.9) |
| Proceeds from the disposal of financial assets | 45.8 | 0.6 | 52.5 |
| Dividends from non consolidated companies | 0.6 | 0.8 | 1.0 |
| NET CASH USED IN INVESTING ACTIVITIES: (B) | (342.5) | (261.2) | 40.0 |
| Capital increase: (a) | 294.8 | 25.7 | 11.8 |
| Capital increase performed by subsidiaries subscribed to by third parties (b) | --- | --- | --- |
| Exceptional distribution of additional paid-in capital (c) | --- | (419.8) | --- |
| Dividends paid to GDS shareholders: (d) | (18.8) | (19.2) | (27.4) |
| Dividends paid to minority interests of consolidated companies: (e) | (2.0) | (1.9) | (2.7) |
| Net interest expense paid : (f) | (26.6) | (30.0) | (72.5) |
| Debt issue costs : (g) | --- | (25.0) | (1.1) |
| Cash flow before repayment of borrowings: (h) = (A+B + a + b + c + d + e + f + g) | 57.5 | (551.8) | 201.4 |
| Increase in borrowings: (i) | 400.9 | 857.8 | 103.0 |
| Repayment of borrowings: (j) | (539.0) | (279.9) | (275.7) |
| NET CASH USED FOR INVESTING ACTIVITIES: (C) = a + b + c + d + e + g + i + j | 109.3 | 107.7 | (264.6) |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS: ( A + B + C ) | (80.6) | 26.1 | 28.7 |
| Cash and cash equivalents at beginning of period | 19.0 | (61.6) | (35.5) |
| Cash and cash equivalents at end of period | (61.6) | (35.5) | (6.8) |
| Net indebtedness at beginning of period | 588.2 | 439.0 | 1 001.3 |
| Cash flow before repayment of borrowings: (h) | (57.5) | 551.8 | (201.4) |
| Capitalization of financial leases | 27.5 | 23.3 | 33.9 |
| Cancellation of capitalization of finance expenses backed by former senior debt | -- | (24.4) | 3.5 |
| Assets held for sale | 20.0 | (7.7) | (9.2) |
| Fair value of financial hedging instruments | -- | (1.5) | 15.7 |
| Change in scope of consolidation and other | (139.2) | 20.8 | 69.2 |
| Net indebtedness at end of period | 439.0 | 1 001.3 | 913.0 |