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Ramsay Générale de Santé — Earnings Release 2009
Feb 11, 2010
1620_iss_2010-02-11_95585bab-0efc-4b91-ae61-1cf8b10edd08.pdf
Earnings Release
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"Press release"
Results for the year ended December 31, 2009:
3.1% revenue growth
Net profit decline
Reduction in net debt achieved through asset disposals
Paris, February 11, 2010
- Revenue: + 3.1% growth, including + 3.6% organic growth.
- Current operating profit: + 1.1% growth
Efforts to keep expenses under control in 2009 have limited the reduction in the current operating margin (5.7% in 2009 vs 5.8% in 2008), attributable to:
- an unfavorable scissor effect on prices,
- higher rent and depreciation expenses, as a result of the sustained investment policy pursued over the last few years.
| €m | 2009 | Change | 2008 |
|---|---|---|---|
| Revenue | 2,046.2 | + 3.1% | 1,983.8 |
| EBITDA | 237.0 | + 3.2% | 229.6 |
| Current operating profit | 116.1 | + 1.1% | 114.8 |
| As % of revenue | 5.7% | - 0.1 point | 5.8% |
| Operating profit | 131.4 | - 18.1% | 160.4 |
| Group share of net profit | 42.4 | - 51.4% | 87.2 |
| Net earnings per share (€) | 0.76 | - 52.2% | 1.59 |
| €m | 2009 | 2008 | Change 2009/2008 |
Q4 2009 | Q4 2008 | Change 2009/2008 |
|---|---|---|---|---|---|---|
| Ile de France | 769.2 | 749.2 | + 2.7% | 202.8 | 196.8 | + 3.0% |
| Rhône Alpes | 313.7 | 263.0 | + 19.3% | 83.3 | 77.3 | + 7.8% |
| Nord | 213.7 | 207.1 | + 3.2% | 55.0 | 54.0 | + 1.9% |
| Provence Alpes Côte d'Azur | 232.7 | 226.9 | + 2.6% | 59.4 | 56.6 | + 4.9% |
| Other French regions | 447.7 | 445.5 | + 0.5% | 115.7 | 114.9 | + 0.7% |
| Italy | 69.2 | 92.1 | - 24.9% | 19.3 | 18.1 | + 6.6% |
| Published revenue | 2,046.2 | 1,983.8 | + 3.1% | 535.5 | 517.7 | + 3.4% |
| o/w: - Organic |
1,988.5 | 1,918.5 | + 3.6% | 533.2 | 504.1 | + 5.8% |
| o/w organic France | 1,919.3 | 1,852.1 | + 3.6% | 513.9 | 486.2 | + 5.7% |
| o/w organic Italy | 69.2 | 66.4 | + 4.2% | 19.3 | 17.9 | + 7.8% |
| - Changes in scope | 57.7 | 65.3 | - | 2.3 | 13.6 | - |
Revenue – Consolidated revenue for the year ended December 31, 2009 amounted to €2,046.2m compared to €1,983.8m one year earlier.
In the fourth quarter of 2009, Hospital Care France recorded +5.7% organic growth, which breaks down as follows:
- a + 0.5% price effect
- a + 5.2% volume/mix effect (including a favorable base effect compared with the fourth quarter of 2008 which was impacted by the economic slowdown).
The main changes in the scope of consolidation relate to the acquisition of Clinique de Saint Victor (mental health) near Saint-Etienne in the second quarter of 2009, Clinique de la Francilienne and Clinique de l'Orangerie in the eastern Paris region as well as Centre Hospitalier Privé de la Loire (Saint-Etienne) in September 2008; combined with a number of disposals, particularly Clinique Hartmann (Neuilly) in March 2009 and Parc Saint Lazare (Beauvais) in April 2009.
The other divestments (Biology unit in Italy; homecare, two dialysis centers and Clinique Tourny in Bordeaux) were carried out at the end of the year.
Overall, given the changes in consolidation scope, Hospital Care France grew +3.3% in Q4 2009.
In Q4 2009, revenue generated in Italy achieved organic growth of +7.8%.
Results – The decline in operating profit from €160.4m to €131.4m was mainly attributable to the change in non-recurring items between 2008 and 2009:
- in 2008, a net capital gain of €70m was recorded following the divestment of the buildings of four clinics in the Paris region and of certain Italian subsidiaries,
- in 2009, the net capital gain was €21m on the disposals disclosed above.
Debt management and a reduction in interest rates in 2009 significantly reduced the cost of debt, which fell from €72.5m to €55.3m, representing a €17.2m reduction (almost -24% vs 2008).
Moreover, corporate income tax increased by €31.6m, mainly as a result of the change in deferred tax between 2008 (positive impact from the disposal of Vesta) and 2009 (consequence of the application under the French finance law, adopted as of December 30, 2009, of the Business Value-Added Contribution (CVAE), leading to the recognition of a net deferred tax expense of €8.6m in accordance with IAS 12).
Net profit (group share) fell from €87.2m in 2008 to €42.4m in 2009.
Debt – Net financial debt per IFRS was €885.8m at end-December 2009 (compared to €913.0m at end-December 2008). This reduction was due notably to the disposals of the Homecare unit (France) and Biology unit (Italy) in December. However, the extent of the reduction was lessened by an adverse impact of some €60m as a result of measures introduced under the French Law on the Modernization of the Economy (LME).
Post balance sheet event – On February 2nd, 2010, the group finalized the disposal of its French diagnostics activities (medical analysis laboratories representing 2009 revenue of around €60m) as part of a strategy to focus its activity on Hospital Care in France initiated in 2008, which continued into 2009.
Dates for your diary:
Publication of first quarter 2010 accounts: April 22, 2010
Annual Shareholders' Meeting: May 31, 2010
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 21,500 employees, including 7,000 nurses and 4,100 assistant nurses in 110 hospitals and clinics. With 5,500 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 of 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]
STATEMENT OF COMPREHENSIVE INCOME
| INCOME STATEMENT (in million euros) | 2007 | 2008 | 2009 |
|---|---|---|---|
| TURNOVER | 1 906.0 | 1,983.8 | 2,046.2 |
| Personnel expenses and profit sharing | (844.0) | (894.1) | (926.7) |
| Purchased consumables | (372.8) | (396.6) | (394.1) |
| Other operating income and expenses | (234.3) | (238.6) | (247.3) |
| Taxes and duties | (104.0) | (107.6) | (106.4) |
| Rents | (111.7) | (117.3) | (134.7) |
| EBITDA | 239.2 | 229.6 | 237.0 |
| Depreciation | (107.8) | (114.8) | (120.9) |
| Current operating profit | 131.4 | 114.8 | 116.1 |
| Restructuring costs | (25.6) | (20.0) | (13.7) |
| Result of the management of real estate and financial assets Impairment of goodwill |
1.0 -- |
65.6 --- |
29.0 -- |
| Other non current income and expenses | (24.6) | 45.6 | 15.3 |
| Operating profit | 106.8 | 160.4 | 131.4 |
| Gross interest expenses | (31.4) | (74.8) | (56.4) |
| Income from cash and cash equivalents | 1.4 | 2.3 | 1.1 |
| Net interest expenses | (30.0) | (72.5) | (55.3) |
| Other financial income | 5.4 | 2.3 | 0.6 |
| Other financial expenses | (4.0) | (5.2) | (4.9) |
| Other financial income and expenses | 1.4 | (2.9) | (4.3) |
| Corporate income tax | (29.7) | 5.1 | (26.5) |
| Share of net profit of associates | -- | --- | -- |
| NET PROFIT FOR THE PERIOD | 48.5 | 90.1 | 45.3 |
| Revenues and expenses recognised directly as equity | |||
| - Retirement commitments | (10.2) | 2.5 | 1.7 |
| - Change in fair value of hedging financial instruments | 1.5 | (23.2) | (2.6) |
| - Translation differential | (0.1) | (0.2) | -- |
| - Income tax on other comprehensive income | 3.5 | 6.6 | 0.3 |
| Résults recognised directly as equity | (5.3) | (14.3) | (0.6) |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 43.2 | 75.8 | 44.7 |
| PROFIT ATTRIBUTABLE TO (in million euros) | 2007 | 2008 | 2009 |
| Group's share of net earnings | 45.6 | 87.2 | 42.4 |
| Minority interests | 2.9 | 2.9 | 2.9 |
| NET PROFIT FOR THE PERIOD | 48.5 | 90.1 | 45.3 |
| NET EARNINGS PER SHARE (in euros) | 0.84 | 1.59 | 0.76 |
| NET DILUTED EARNINGS PER SHARE (in euros) | 0.82 | 1.59 | 0.76 |
| TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO (in millions euros) | 2007 | 2008 | 2009 |
| Group's comprehensive income for the period | 40.3 | 72.9 | 41.8 |
| Minority interests | 2.9 | 2.9 | 2.9 |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 43.2 | 75.8 | 44.7 |
CONSOLIDATED BALANCE SHEET – ASSETS
| ( in million euros ) | 12-31-2007 | 12-31-2008 | 12-31-2009 |
|---|---|---|---|
| Goodwill | 648.6 | 723.4 | 627.9 |
| Other intangible fixed assets | 7.3 | 15.9 | 19.2 |
| Tangible fixed assets | 960.7 | 962.5 | 915.6 |
| Investments in associates | 1.3 | 0.9 | 0.1 |
| Other long-term investments | 33.0 | 32.1 | 28.1 |
| Deferred tax assets | 34.8 | 54.6 | 50.5 |
| NON CURRENT ASSETS | 1,685.7 | 1,789.4 | 1,641.4 |
| Inventories | 35.0 | 38.4 | 32.8 |
| Trade and other receivables | 179.9 | 174.8 | 130.0 |
| Other current assets | 94.8 | 124.4 | 139.9 |
| Current tax assets | 11.6 | 2.8 | 2.0 |
| Current financial assets | 4.9 | 3.2 | 13.2 |
| Cash and cash equivalents | --- | --- | --- |
| Assets held for sale | 84.8 | 3.1 | 56.2 |
| CURRENT ASSETS | 411.0 | 346.7 | 374.1 |
| TOTAL ASSETS | 2,096.7 | 2,136.1 | 2,015.5 |
CONSOLIDATED BALANCE SHEET – LIABILITIES
| ( in million euros ) | 12-31-2007 | 12-31-2008 | 12-31-2009 |
|---|---|---|---|
| Share capital | 41.1 | 42.2 | 42.2 |
| Additional paid-in capital | 50.8 | 61.5 | 62.5 |
| Consolidated reserves | 304.9 | 309.5 | 320.0 |
| Group's share of net profit | 45.6 | 87.2 | 42.4 |
| Group's share of equity | 442.4 | 500.4 | 467.1 |
| Minority interests | 9.6 | 10.0 | 10.0 |
| TOTAL SHAREHOLDERS' EQUITY | 452.0 | 510.4 | 477.1 |
| Borrowings and financial debts | 871.4 | 847.1 | 812.4 |
| Provisions for retirement and other employee benefits | 29.5 | 29.6 | 29.7 |
| Non-current provisions | 26.0 | 39.5 | 37.3 |
| Other long term liabilities | 16.3 | 36.3 | 35.4 |
| Deferred tax liabilities | 84.4 | 72.2 | 81.3 |
| NON CURRENT LIABILITIES | 1,027.6 | 1,024.7 | 996.1 |
| Current provisions | 21.2 | 17.8 | 13.8 |
| Accounts payable | 166.6 | 196.4 | 124.1 |
| Other current liabilities | 270.2 | 305.4 | 296.2 |
| Tax liabilities due | 3.5 | 26.5 | 0.6 |
| Short-term borrowings | 47.8 | 45.0 | 44.7 |
| Bank overdraft | 35.5 | 6.8 | 5.1 |
| Liabilities related to assets held for sale | 72.3 | 3.1 | 57.8 |
| CURRENT LIABILITIES | 617.1 | 601.0 | 542.3 |
| TOTAL EQUITY AND LIABILITIES | 2,096.7 | 2,136.1 | 2,015.5 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| ( in million euros ) | SHARE CAPITAL |
ADDITION AL PAID IN CAPITAL |
RESERVES | RESULTS RECOGNISED DIRECTLY AS EQUITY |
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
GROUP'S SHARE OF EQUITY |
MINORITY INTERESTS |
SHAREHOL DERS' EQUITY |
|---|---|---|---|---|---|---|---|---|
| Shareholders' equity at 31 december 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 | -- | -- | 0.3 | -- | -- | 0.3 | -- | 0.3 |
| Stocks options and free share | -- | -- | 1.1 | -- | -- | 1.1 | -- | 1.1 |
| Prior year appropriation of earnings | -- | (1.1) | 226.5 | -- | (225.4) | -- | -- | -- |
| Distribution of dividends | -- | -- | (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 | -- | -- | -- | -- | -- | -- | -- | -- |
| Total comprehensive income for the period | -- | -- | -- | -- | 45.6 | 45.6 | 2.9 | 48.5 |
| Profit and loss directly recognised against equity | 0.1 | -- | -- | (5.3) | -- | (5.2) | -- | (5.2) |
| Shareholders' equity at 31 december 2007 | 41.1 | 50.8 | 310.2 | (5.3) | 45.6 | 442.4 | 9.6 | 452.0 |
| Capital increase (including net fees) | 1.1 | 10.7 | -- | -- | -- | 11.8 | -- | 11.8 |
| Treasury shares | -- | -- | (0.6) | -- | -- | (0.6) | -- | (0.6) |
| Stocks options and free share | -- | -- | 1.3 | -- | -- | 1.3 | -- | 1.3 |
| Prior year appropriation of earnings | -- | -- | 45.6 | -- | (45.6) | -- | -- | -- |
| Distribution of dividends | -- | -- | (27.4) | -- | -- | (27.4) | (2.7) | (30.1) |
| Change in consolidation scope | -- | -- | -- | -- | -- | -- | 0.2 | 0.2 |
| Total comprehensive income for the period | -- | -- | -- | (14.3) | 87.2 | 72.9 | 2.9 | 75.8 |
| Shareholders' equity at 31 december 2008 | 42.2 | 61.5 | 329.1 | (19.6) | 87.2 | 500.4 | 10.0 | 510.4 |
| Capital increase (including net fees) | -- | 1.0 | -- | -- | -- | 1.0 | -- | 1.0 |
| Treasury shares | -- | -- | (9.4) | -- | -- | (9.4) | -- | (9.4) |
| Stocks options and free share | -- | -- | 2.6 | -- | -- | 2.6 | -- | 2.6 |
| Prior year appropriation of earnings | -- | -- | 87.2 | -- | (87.2) | -- | -- | -- |
| Distribution of dividends | -- | -- | (69.3) | -- | -- | (69.3) | (1.8) | (71.1) |
| Change in consolidation scope | -- | -- | -- | -- | -- | -- | (1.1) | (1.1) |
| Total comprehensive income for the period | -- | -- | -- | (0.6) | 42.4 | 41.8 | 2.9 | 44.7 |
| Shareholders' equity at 31 december 2009 | 42.2 | 62.5 | 340.2 | (20.2) | 42.4 | 467.1 | 10.0 | 477.1 |
| 12-31-2007 | 12-31-2008 | 12-31-2009 | |
|---|---|---|---|
| Dividends per share (in euros including pre-distribution) | 8.02 | 0.5 | 1.23 |
| Number of treasury shares | --- | 53 346 | 773 668 |
| ( in million euros ) | 12-31-2007 | Revenues and expenses 2008 |
12-31-2008 | Revenues and expenses 2009 |
12-31-2009 |
|---|---|---|---|---|---|
| Translation differential | (0.1) | (0.2) | (0.3) | -- | (0.3) |
| Retirement commitments | (6.7) | 1.6 | (5.1) | 1.1 | (4.0) |
| Fair value of hedging financial instruments | 1.5 | (15.7) | (14.2) | (1.7) | (15.9) |
| Results recognised directly as equity (Group's share) | (5.3) | (14.3) | (19.6) | (0.6) | (20.2) |
CONSOLIDATED CASH FLOW STATEMENT
| (in million euros) | 2008 | 2008 | 2009 |
|---|---|---|---|
| Total net consolidated profit | 48.5 | 90.1 | 45.3 |
| Depreciation | 107.8 | 114.8 | 120.9 |
| Other non current income and expenses | 24.6 | (45.6) | (15.3) |
| Share of net profit of associates | --- | -- | --- |
| Other financial income and expenses | (1.4) | 2.9 | 4.3 |
| Net interest expenses | 30.0 | 72.5 | 55.3 |
| Corporate income tax | 29.7 | (5.1) | 26.5 |
| EBITDA | 239.2 | 229.6 | 237.0 |
| Non cash items including provisions and reversals (transactions with no cash effect) | (1.4) | 3.5 | (2.9) |
| Other income and expenses paid | (18.3) | (9.7) | (9.5) |
| Changes in other long term assets and liabilities | 1.7 | (5.2) | (2.5) |
| Cash flow before net interest expenses & taxes | 221.2 | 218.2 | 222.1 |
| Corporate income tax paid | (41.7) | (4.1) | (34.8) |
| Change in working capital requirements | 0.1 | 39.2 | (38.3) |
| NET CASH FROM OPERATING ACTIVITIES : (A) | 179.6 | 253.3 | 149.0 |
| Purchase of property, plant & equipment and intangible assets | (163.3) | (131.7) | (103.9) |
| Proceeds from sale of tangible and intangible assets | 3.0 | 177.1 | 28.9 |
| Purchase of financial assets | (102.3) | (58.9) | (25.3) |
| Proceeds from the disposal of financial assets | 0.6 | 52.5 | 125.7 |
| Dividends from non consolidated companies | 0.8 | 1.0 | 0.6 |
| NET CASH USED FOR INVESTING ACTIVITIES : (B) | (261.2) | 40.0 | 26.0 |
| Capital increase: (a) | 25.7 | 11.8 | 1.0 |
| 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) | (19.2) | (27.4) | (69.3) |
| Dividends paid to minority interests of consolidated companies: (e) | (1.9) | (2.7) | (1.8) |
| Net interest expense paid : (f) | (30.0) | (72.5) | (55.3) |
| Debt issue costs : (g) | (25.0) | (1.1) | --- |
| Cash flow before repayment of borrowings: (h) = (A+B + a + b + c + d + e + f + g) | (551.8) | 201.4 | 49.6 |
| Increase in borrowings : (i) | 857.8 | 103.4 | 140.2 |
| Repayment of borrowings : (j) | (279.9) | (276.1) | (175.1) |
| NET CASH USED FOR FINANCING ACTIVITIES: (C) = a + b + c + d + e + f + g + i + j | 107.7 | (264.6) | (160.3) |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS: ( A + B + C ) | 26.1 | 28.7 | 14.7 |
| Reclassification of the cash of the assets held for sale | --- | --- | (13.0) |
| Cash and cash equivalents at beginning of period | (61.6) | (35.5) | (6.8) |
| Cash and cash equivalents at end of period | (35.5) | (6.8) | (5.1) |
| Net indebtedness at beginning of period | 439.0 | 1,001.3 | 913.0 |
| Cash flow before repayment of borrowings: (h) | 551.8 | (201.4) | (49.6) |
| Capitalization of financial leases | 23.3 | 33.9 | 31.0 |
| Loan issue charges fixed assets | (24.4) | 3.5 | 3.5 |
| Assets held for sale | (7.7) | (9.2) | 1.7 |
| Fair value of financial hedging instruments | (1.5) | 15.7 | 1.7 |
| Change in scope of consolidation and other | 20.8 | 69.2 | (15.5) |
| Net indebtedness at end of period | 1,001.3 | 913.0 | 885.8 |