SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
For the month of August 2012
FRESENIUS MEDICAL CARE AG & Co. KGaA
(Translation of registrants name into English)
Else-Kröner Strasse 1
61346 Bad Homburg
Germany
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes o No x
If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82
On August 1, 2012 Fresenius Medical Care AG & Co. KGaA (the Company) issued an Investor News announcing its second quarter results for the period ending June 30, 2012. A copy of the Investor News is furnished as Exhibit 99.1.
The attached Investor News contains non-GAAP financial measures. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of a companys performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles. To supplement our second quarter 2012 consolidated financial results presented in accordance with Generally Accepted Accounting Principles in the United States, or GAAP, we have used non-GAAP financial measure of (a) EBITDA, or operating income excluding interest, taxes, depreciation and amortization, and (b) free cash flow. These non-GAAP measures are provided to enhance the users overall understanding of our current financial performance and our prospects for the future. In addition, because we have historically reported certain non-GAAP financial measures in our financial results, we believe the inclusion of these non-GAAP financial measures provides consistency and comparability in our financial reporting to prior periods for which these non-GAAP financial measures were previously reported. These non-GAAP financial measures should not be used as a substitute for or be considered superior to GAAP financial measures. Reconciliation of the non-GAAP financial measures to the most comparable GAAP financial measures are included in the attached Investor News in a separate statement setting forth the reconciliation and in the Cash Flow Statement.
The Exhibit attached hereto, shall not be deemed filed for purposes of Section 18 of the Securities and Exchange Act of 1934 (the Exchange Act) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
DATE: August 1, 2012 |
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FRESENIUS MEDICAL CARE AG & Co. KGaA, | ||
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a partnership limited by shares, represented by: | ||
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FRESENIUS MEDICAL CARE MANAGEMENT AG, its | ||
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General Partner | ||
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By: |
/s/ DR. BEN J. LIPPS | |
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Name: |
Dr. Ben J. Lipps |
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Title: |
Chief Executive Officer and |
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By: |
/s/ MICHAEL BROSNAN | |
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Name: |
Michael Brosnan |
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Title: |
Chief Financial Officer and |
Exhibit 99.1
Investor News |
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Oliver Maier |
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Head of Investor Relations |
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Fresenius Medical Care |
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Else-Kröner-Straße 1 |
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61352 Bad Homburg |
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Germany |
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T +49 6172 609-2601 |
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F +49 6172 609-2301 |
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oliver.maier@fmc-ag.com |
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www.fmc-ag.com |
August 1, 2012
Fresenius Medical Care Reports Strong Second Quarter 2012 And Half Year 2012 Results And Confirms Guidance For Full Year 2012
2nd Quarter 2012 Summary:
Net revenue |
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$ |
3,428 million |
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+9 |
% |
Operating income (EBIT) |
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$ |
589 million |
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+16 |
% |
Net income * |
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$ |
289 million |
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+11 |
% |
Earnings per ordinary share |
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$ |
0.95 |
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+10 |
% |
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Earnings excluding investment gain: |
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Net income * |
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$ |
276 million |
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+6 |
% |
Earnings per ordinary share |
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$ |
0.91 |
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+5 |
% |
First Half 2012 Summary:
Net revenue |
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$ |
6,677 million |
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+9 |
% |
Operating income (EBIT) |
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$ |
1,092 million |
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+14 |
% |
Net income * |
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$ |
660 million |
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+37 |
% |
Earnings per ordinary share |
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$ |
2.17 |
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+36 |
% |
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Earnings excluding investment gain: |
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Net income * |
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$ |
520 million |
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+8 |
% |
Earnings per ordinary share |
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$ |
1.71 |
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+7 |
% |
* Attributable to shareholders of Fresenius Medical Care AG & Co. KGaA
Bad Homburg, Germany Fresenius Medical Care AG & Co. KGaA (the company or Fresenius Medical Care; Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS), the worlds largest provider of dialysis products and services, today announced its results for the second quarter and first half of 2012.
2nd Quarter 2012
Revenue
Net revenue for the second quarter of 2012 increased by 9% to $3,428 million (+13% at constant currency) compared to the second quarter of 2011. Organic revenue growth worldwide was 4%. Dialysis services revenue grew by 13% to $2,605 million (+16% at constant currency) and dialysis product revenue decreased by 1% to $823 million and increased by +6% at constant currency.
North America revenue for the second quarter of 2012 increased by 14% to $2,249 million. Dialysis services revenue grew by 15% to $2,043 million with a same market growth of 4%. Average revenue per treatment for U.S. clinics increased to $351 in the second quarter of 2012 compared to $348 for the corresponding quarter in 2011. Dialysis product revenue increased by 3% to $206 million mainly as a result of higher sales of hemodialysis products.
International revenue increased by 1% to $1,171 million (+ 11% at constant currency). Organic revenue growth was 6%. Dialysis services revenue increased by 5% to $562 million (+16% at constant currency). Dialysis product revenue decreased by 3% to $609 million and increased by 6% at constant currency, mainly driven by higher sales of dialysis machines and dialyzers.
Earnings
Operating income (EBIT) for the second quarter of 2012 increased by 16% to $589 million compared to $510 million in the second quarter of 2011. This resulted in an operating margin of 17.2% for the second quarter of 2012 compared to 16.2% for the corresponding quarter in 2011.
In North America, the operating margin increased from 17.7% to 19.2%. Average costs per treatment for U.S. clinics decreased by $3 to $280 in the second quarter of 2012 as compared to $283 in the second quarter of 2011.
In the International segment, the operating margin increased from 17.5% to 17.7%.
Net interest expense for the second quarter of 2012 was $104 million, compared to $75 million in the second quarter of 2011. This development was mainly attributable to the higher level of financial debt as a result of the issuance of various tranches of senior notes over the course of 2011 and 2012.
Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the second quarter of 2012 was $289 million, an increase of 11% compared to the corresponding quarter of 2011. This includes a non-taxable investment gain of $13 million related to the acquisition of Liberty Dialysis Holdings, Inc., including its 51% stake in Renal Advantage Partners, LLC (RAI). The gain is a result of measuring the 49% equity interest in RAI held by the company at its fair value at the time of the Liberty acquisition and represents an adjustment to the amount recorded in the first quarter of 2012 as part of the continuing finalization of the Liberty purchase accounting. Excluding this investment gain net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA increased by 6% to $276 million.
Income tax expense was $172 million for the second quarter of 2012 compared to $149 million in the second quarter of 2011, reflecting effective tax rates of 34.6% and 34.2%, respectively. Excluding the investment gain the effective tax rate was 35.5%.
Earnings per ordinary share (EPS) for the second quarter 2012 was $0.95 and $0.91 if excluding the investment gain. This represents an increase compared to the second quarter of 2011 of 10% and of 5%, respectively. The weighted average number of ordinary shares outstanding for the second quarter of 2012 was approximately 300.4 million shares, compared to 298.6 million shares for the second quarter of 2011. The increase in shares outstanding resulted from stock option exercises in the past 12 months.
Cash flow
In the second quarter of 2012, the company generated $451 million in cash from operations, an increase of 45% compared to the corresponding figure last year and representing 13.2% of revenue. The cash flow generation was supported by a favorable development of days sales outstanding.
A total of $151 million was spent for capital expenditures, net of disposals. Free cash flow before acquisitions was $300 million compared to $194 million in the second quarter of 2011. A total of $6 million in cash was generated from divestitures, net of acquisitions. Free cash flow after acquisitions and divestitures was $306 million, compared to minus $590 million in the second quarter of 2011.
First Half 2012:
Revenue and Earnings
Net revenue for the first half of 2012 increased by 9% to $6,677 million (+12% at constant currencies) compared to the first half of 2011. Organic revenue growth was 4% in the first half of 2012.
Operating income (EBIT) for the first half of 2012 increased by 14% to $1,092 million compared to $955 million in the first half of 2011. The operating income margin increased to 16.4% for the first half of 2012 as compared to 15.6% in the same period in 2011.
Net interest expense for the first half of 2012 was $203 million compared to $146 million in the same period of 2011.
For the first half of 2012, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA was $660 million, up by 37% from the first half of 2011. This includes a non-taxable investment gain of $140 million related to the acquisition of Liberty Dialysis Holdings, Inc., including its 51% stake in Renal Advantage Partners, LLC (RAI). The gain is a result of measuring the 49% equity interest in RAI held by the company at its fair value at the time of the Liberty acquisition.
Excluding this investment gain net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA increased by 8% to $520 million.
Income tax expense for the first half of 2012 was $309 million compared to $273 million in the same period in 2011, reflecting effective tax rates of 30.1% and 33.8%, respectively. Excluding the investment gain the effective tax rate was 34.8%.
In the first half of 2012, earnings per ordinary share rose by 36% to $2.17 and by 7% to $1.71 if excluding the investment gain. The weighted average number of ordinary shares outstanding during the first half of 2012 was approximately 300.3 million.
Cash Flow
Cash from operations during the first half of 2012 was $932 million compared to $487 million for the same period in 2011, representing 14% of revenue.
A total of $274 million in cash was spent for capital expenditures, net of disposals. Free cash flow before acquisitions for the first half of 2012 was $658 million compared to $256 million in the same period in 2011. A total of $1,520 million in cash was spent for acquisitions, net of divestitures. Free cash flow after acquisitions and divestitures was minus $862 million compared to minus $866 million in the first half of last year.
Please refer to the attachments for a complete overview on the second quarter and first half of 2012 and the reconciliation of non-GAAP financial measures included in this release to the most comparable GAAP financial measures.
Patients Clinics Treatments
As of June 30, 2012, Fresenius Medical Care treated 256,456 patients worldwide, which represents a 14% increase compared to the previous years figure. North America provided dialysis treatments for 164,058 patients, an increase of 17%. Including 28 clinics managed by Fresenius Medical Care North America, the number of patients in North America was 166,282. The International segment provided dialysis treatment to 92,398 patients, an increase of 7% over the prior years figure.
As of June 30, 2012, the company operated a total of 3,123 clinics worldwide, which represents a 10% increase compared to the previous years figure. The number of clinics is comprised of 2,046 clinics in North America (2,074 including managed clinics), and 1,077 clinics in the International segment, representing an increase of 12% and 6%, respectively.
During the first half of 2012, Fresenius Medical Care delivered approximately 18.89 million dialysis treatments worldwide. This represents an increase of 14%, compared to last years figure. North America accounted for 11.89 million treatments, an increase of 12%. The International segment delivered 7.0 million treatments, an increase of 18%.
Employees
As of June 30, 2012, Fresenius Medical Care had 84,194 employees (full-time equivalents) worldwide, compared to 79,159 employees at the end of 2011. This increase of more than 5,000 employees is due to overall growth in the companys business and acquisitions including Liberty Dialysis Holdings, Inc.
Debt/EBITDA ratio
The ratio of debt to earnings before interest, taxes, depreciation and amortization (EBITDA) increased from 2.77 at the end of the second quarter of 2011 to 2.92 at the end of the second quarter of 2012. The debt/EBITDA ratio at the end of 2011 was 2.69.
Rating
Moodys affirmed the companys corporate credit as Ba1 with a stable outlook, and Fitch rates the companys corporate credit as BB+ with a stable outlook. Standard & Poors placed the companys corporate credit on review as BB+ with a possible downgrade from stable to negative. For further information on Fresenius Medical Cares credit ratings, maturity profiles and credit instruments, please visit our website at www.fmc-ag.com / Investor Relations / Credit Relations.
Sales and earnings outlook for 2012 confirmed
For the full year 2012, the company confirms its sales and earnings outlook.
The company expects revenue to grow to ~ $14 billion in 2012(1).
Net income is expected to grow to ~ $1.3 billion and net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to grow to ~ $1.14 billion(1). This does not include the investment gain in the amount of approximately $140 million in the first half of 2012.
For 2012, the company expects to spend ~ $700 million on capital expenditures and ~ $1.8 billion on acquisitions. The debt/EBITDA ratio is expected to be below 3.0 by the end of 2012.
Ben Lipps, chief executive officer of Fresenius Medical Care, commented: We achieved a very good operating performance in the second quarter of 2012. We are very pleased with the progress we and our clinical associates are achieving to improve global patient care outcomes, notably in anemia and nutrition management and the continued reduction in hospital days. North America is progressing well with its integration of the Liberty acquisition. Revenue growth in both North America and International was double digit in constant currency and despite the difficult global economic environment, we have improved cash collection, which also reflects the dedication of our staff and credibility we have with payers. In summary, we are affirming our guidance for the full year 2012 and expect another record year for the company.
Conference call
Fresenius Medical Care will hold a conference call to discuss the results of the second quarter and first half of 2012 on Wednesday, August 1, 2012, at 3:30 p.m. CEDT / 9:30 a.m. EDT. The company invites investors to view the live webcast of the call at the companys website www.fmc-ag.com in the Investor Relations section. A replay will be available shortly after the call.
(1) We define the ~ sign as a +/- 0-2% deviation from the respective numbers
Fresenius Medical Care is the worlds largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than
2.1 million individuals worldwide. Through its network of 3,123 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to 256,456 patients around the globe. Fresenius Medical Care is also the worlds leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products.
For more information about Fresenius Medical Care, visit the companys website at www.fmc-ag.com.
Disclaimer
This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaAs reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.
Fresenius Medical Care
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Three Months Ended |
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Six Months Ended |
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June 30, |
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June 30, |
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Statement of Earnings |
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2012 |
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2011 |
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Change |
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2012 |
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2011 |
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Change |
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(in US-$ thousands, except share data) |
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(unaudited) |
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Revenue |
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Dialysis care |
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2,675,422 |
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2,361,563 |
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13.3 |
% |
5,219,481 |
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4,646,879 |
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12.3 |
% | ||||
Less: patient service bad debt provision |
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70,303 |
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56,429 |
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24.6 |
% |
137,162 |
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108,966 |
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25.9 |
% | ||||
Net dialysis care |
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2,605,119 |
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2,305,134 |
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13.0 |
% |
5,082,319 |
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4,537,913 |
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12.0 |
% | ||||
Dialysis products |
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822,854 |
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832,489 |
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-1.2 |
% |
1,594,409 |
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1,583,561 |
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0.7 |
% | ||||
Total net revenue |
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3,427,973 |
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3,137,623 |
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9.3 |
% |
6,676,728 |
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6,121,474 |
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9.1 |
% | ||||
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Cost of revenue |
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2,301,099 |
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2,108,617 |
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9.1 |
% |
4,480,345 |
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4,144,581 |
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8.1 |
% | ||||
Gross profit |
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1,126,874 |
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1,029,006 |
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9.5 |
% |
2,196,383 |
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1,976,893 |
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11.1 |
% | ||||
Selling, general and administrative |
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539,616 |
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501,559 |
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7.6 |
% |
1,092,448 |
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985,795 |
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10.8 |
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Gain on sale of dialysis clinics |
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(24,647 |
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(33,961 |
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Research and development |
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26,938 |
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26,783 |
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0.6 |
% |
55,460 |
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52,932 |
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4.8 |
% | ||||
Income from equity method investees |
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(3,858 |
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(8,880 |
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-56.5 |
% |
(9,355 |
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(16,462 |
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-43.2 |
% | ||||
Operating income (EBIT) |
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588,825 |
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509,544 |
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15.6 |
% |
1,091,791 |
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954,628 |
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14.4 |
% | ||||
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Investment gain |
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(12,915 |
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(139,600 |
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Interest income |
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(12,496 |
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(15,579 |
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-19.8 |
% |
(32,802 |
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(26,000 |
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26.2 |
% | ||||
Interest expense |
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116,691 |
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90,183 |
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29.4 |
% |
235,877 |
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172,169 |
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37.0 |
% | ||||
Interest expense, net |
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104,195 |
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74,604 |
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39.7 |
% |
203,075 |
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146,169 |
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38.9 |
% | ||||
Income before taxes |
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497,545 |
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434,940 |
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14.4 |
% |
1,028,316 |
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808,459 |
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27.2 |
% | ||||
Income tax expense |
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172,241 |
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148,856 |
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15.7 |
% |
309,318 |
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273,260 |
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13.2 |
% | ||||
Net income |
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325,304 |
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286,084 |
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13.7 |
% |
718,998 |
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535,199 |
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34.3 |
% | ||||
Less: Net income attributable to noncontrolling interests |
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35,967 |
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25,323 |
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42.0 |
% |
59,163 |
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53,737 |
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10.1 |
% | ||||
Net income attributable to shareholders of FMC AG & Co. KGaA |
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289,337 |
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260,761 |
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11.0 |
% |
659,835 |
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481,462 |
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37.0 |
% | ||||
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Operating income (EBIT) |
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588,825 |
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509,544 |
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15.6 |
% |
1,091,791 |
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954,628 |
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14.4 |
% | ||||
Depreciation and amortization |
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150,877 |
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136,289 |
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10.7 |
% |
294,251 |
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272,273 |
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8.1 |
% | ||||
EBITDA |
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739,702 |
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645,833 |
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14.5 |
% |
1,386,042 |
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1,226,901 |
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13.0 |
% | ||||
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Earnings per ordinary share |
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$ |
0.95 |
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$ |
0.86 |
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10.3 |
% |
$ |
2.17 |
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$ |
1.59 |
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36.2 |
% |
Earnings per ordinary ADS |
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$ |
0.95 |
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$ |
0.86 |
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10.3 |
% |
$ |
2.17 |
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$ |
1.59 |
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36.2 |
% |
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Weighted average number of shares |
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Ordinary shares |
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300,415,725 |
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298,559,749 |
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300,310,425 |
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298,427,098 |
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Preference shares |
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3,966,600 |
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3,958,515 |
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3,966,301 |
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3,957,978 |
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In percent of revenue |
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Cost of revenue |
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67.1 |
% |
67.2 |
% |
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67.1 |
% |
67.7 |
% |
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Gross profit |
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32.9 |
% |
32.8 |
% |
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32.9 |
% |
32.3 |
% |
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Selling, general and administrative |
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15.7 |
% |
16.0 |
% |
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16.4 |
% |
16.1 |
% |
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Gain on sale of dialysis clinics |
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-0.7 |
% |
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-0.5 |
% |
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Research and development |
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0.8 |
% |
0.9 |
% |
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0.8 |
% |
0.9 |
% |
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Income from equity method investees |
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-0.1 |
% |
-0.3 |
% |
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-0.1 |
% |
-0.3 |
% |
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Operating income (EBIT) |
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17.2 |
% |
16.2 |
% |
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16.4 |
% |
15.6 |
% |
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Investment gain |
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-0.4 |
% |
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-2.1 |
% |
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Interest expense, net |
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3.0 |
% |
2.4 |
% |
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3.0 |
% |
2.4 |
% |
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Income before taxes |
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14.5 |
% |
13.9 |
% |
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15.4 |
% |
13.2 |
% |
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Income tax expense |
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5.0 |
% |
4.7 |
% |
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4.6 |
% |
4.5 |
% |
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Net income attributable to noncontrolling interests |
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1.0 |
% |
0.8 |
% |
|
|
0.9 |
% |
0.9 |
% |
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Net income attributable to shareholders of FMC AG & Co. KGaA |
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8.4 |
% |
8.3 |
% |
|
|
9.9 |
% |
7.9 |
% |
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
EBITDA |
|
21.6 |
% |
20.6 |
% |
|
|
20.8 |
% |
20.0 |
% |
|
|
Fresenius Medical Care
|
|
Three Months Ended |
|
Six Months Ended |
| ||||||||
|
|
June 30, |
|
June 30, |
| ||||||||
Segment and Other Information |
|
2012 |
|
2011 |
|
Change |
|
2012 |
|
2011 |
|
Change |
|
(in US-$ million, except employees) |
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
|
2,249 |
|
1,971 |
|
14.1 |
% |
4,353 |
|
3,896 |
|
11.7 |
% |
International |
|
1,171 |
|
1,163 |
|
0.7 |
% |
2,307 |
|
2,217 |
|
4.0 |
% |
Corporate |
|
8 |
|
4 |
|
100.3 |
% |
17 |
|
8 |
|
104.4 |
% |
Total net revenue |
|
3,428 |
|
3,138 |
|
9.3 |
% |
6,677 |
|
6,121 |
|
9.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (EBIT) |
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
|
431 |
|
348 |
|
23.7 |
% |
779 |
|
661 |
|
17.9 |
% |
International |
|
207 |
|
203 |
|
2.0 |
% |
402 |
|
374 |
|
7.5 |
% |
Corporate |
|
(49 |
) |
(41 |
) |
17.7 |
% |
(89 |
) |
(80 |
) |
11.5 |
% |
Total operating income (EBIT) |
|
589 |
|
510 |
|
15.6 |
% |
1,092 |
|
955 |
|
14.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income in percent of revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
|
19.2 |
% |
17.7 |
% |
|
|
17.9 |
% |
17.0 |
% |
|
|
International |
|
17.7 |
% |
17.5 |
% |
|
|
17.4 |
% |
16.9 |
% |
|
|
Total |
|
17.2 |
% |
16.2 |
% |
|
|
16.4 |
% |
15.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employees |
|
|
|
|
|
|
|
|
|
|
|
|
|
Full-time equivalents |
|
|
|
|
|
|
|
84,194 |
|
77,081 |
|
|
|
Fresenius Medical Care
Reconciliation of non US-GAAP |
|
Three Months Ended |
|
Six Months Ended |
| ||||
financial measures to the most directly |
|
June 30, |
|
June 30, |
| ||||
comparable US-GAAP financial measures |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
(in US-$ million) |
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment information North America |
|
|
|
|
|
|
|
|
|
Net revenue |
|
2,249 |
|
1,971 |
|
|
|
|
|
Costs of revenue and research and development |
|
1,534 |
|
1,358 |
|
|
|
|
|
Selling, general and administrative |
|
317 |
|
274 |
|
|
|
|
|
Gain on sale of dialysis clinics |
|
(25 |
) |
|
|
|
|
|
|
Income from equity method investees |
|
(8 |
) |
(9 |
) |
|
|
|
|
Costs of revenue and operating expenses |
|
1,818 |
|
1,623 |
|
|
|
|
|
Operating income (EBIT) |
|
431 |
|
348 |
|
|
|
|
|
In percent of revenue |
|
19.2 |
% |
17.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dialysis products revenue incl. and excl. internal sales |
|
|
|
|
|
|
|
|
|
North America |
|
|
|
|
|
|
|
|
|
Dialysis products revenue incl. internal sales |
|
400 |
|
394 |
|
|
|
|
|
Less internal sales |
|
(194 |
) |
(195 |
) |
|
|
|
|
Dialysis products external sales |
|
206 |
|
199 |
|
|
|
|
|
International |
|
|
|
|
|
|
|
|
|
Dialysis products revenue incl. internal sales |
|
712 |
|
728 |
|
|
|
|
|
Less internal sales |
|
(103 |
) |
(99 |
) |
|
|
|
|
Dialysis products external sales |
|
609 |
|
629 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of cash flow from operating activities to EBITDA (1) |
|
|
|
|
|
|
|
|
|
Total EBITDA |
|
|
|
|
|
1,386 |
|
1,227 |
|
Interest expense, net |
|
|
|
|
|
(203 |
) |
(146 |
) |
Income tax expense |
|
|
|
|
|
(309 |
) |
(273 |
) |
Change in working capital and other non-cash items |
|
|
|
|
|
58 |
|
(321 |
) |
Net cash provided by operating activities |
|
|
|
|
|
932 |
|
487 |
|
|
|
|
|
|
|
|
|
|
|
Annualized EBITDA (2) |
|
|
|
|
|
|
|
|
|
Operating income (EBIT) last twelve months |
|
|
|
|
|
2,349 |
|
1,987 |
|
Depreciation and amortization last twelve months |
|
|
|
|
|
603 |
|
530 |
|
Non-cash charges |
|
|
|
|
|
53 |
|
50 |
|
Annualized EBITDA |
|
|
|
|
|
3,005 |
|
2,567 |
|
(1) EBITDA is the basis for determining compliance with certain covenants in Fresenius Medical Cares long-term debt instruments.
(2) EBITDA 2012: Pro forma numbers including Liberty Dialysis Holdings Inc., after FTC mandated divestitures.
Fresenius Medical Care
|
|
June 30, |
|
December 31, |
|
Balance Sheet |
|
2012 |
|
2011 |
|
(in US-$ million) |
|
(unaudited) |
|
(audited) |
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
Current assets |
|
6,063 |
|
5,695 |
|
Intangible assets |
|
11,894 |
|
9,873 |
|
Other non-current assets |
|
3,787 |
|
3,965 |
|
Total assets |
|
21,744 |
|
19,533 |
|
|
|
|
|
|
|
Liabilities and equity |
|
|
|
|
|
Current liabilities |
|
5,870 |
|
4,263 |
|
Long-term liabilities |
|
6,861 |
|
6,799 |
|
Noncontrolling interests subject to put provisions |
|
541 |
|
410 |
|
Total equity |
|
8,472 |
|
8,061 |
|
Total liabilities and equity |
|
21,744 |
|
19,533 |
|
|
|
|
|
|
|
Equity/assets ratio: |
|
39 |
% |
41 |
% |
|
|
|
|
|
|
Debt |
|
|
|
|
|
Short-term borrowings |
|
103 |
|
99 |
|
Short-term borrowings from related parties |
|
52 |
|
28 |
|
Current portion of long-term debt and capital lease obligations |
|
3,086 |
|
1,589 |
|
Long-term debt and capital lease obligations, less current portion |
|
5,543 |
|
5,495 |
|
Total debt |
|
8,784 |
|
7,211 |
|
Fresenius Medical Care
Cash Flow Statement |
|
|
|
|
|
Six months ended June 30, |
|
2012 |
|
2011 |
|
(in US-$ million) |
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Operating activities |
|
|
|
|
|
Net income |
|
720 |
|
536 |
|
Depreciation / amortization |
|
294 |
|
272 |
|
Investment gain |
|
(140 |
) |
|
|
Change in working capital and other non-cash items |
|
58 |
|
(321 |
) |
Cash Flow from operating activities |
|
932 |
|
487 |
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
Purchases of property, plant and equipment |
|
(277 |
) |
(238 |
) |
Proceeds from sale of property, plant and equipment |
|
3 |
|
7 |
|
Capital expenditures, net |
|
(274 |
) |
(231 |
) |
Free Cash Flow |
|
658 |
|
256 |
|
|
|
|
|
|
|
Acquisitions, net of cash acquired, and purchases of intangible assets |
|
(1,748 |
) |
(1,122 |
) |
Proceeds from divestitures |
|
228 |
|
|
|
Acquisitions, net of divestitures |
|
(1,520 |
) |
(1,122 |
) |
Free Cash Flow after investing activities |
|
(862 |
) |
(866 |
) |
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
Change in accounts receivable securitization program |
|
(83 |
) |
130 |
|
Change in intercompany debt |
|
25 |
|
146 |
|
Change in other debt |
|
1,463 |
|
1,419 |
|
Proceeds from exercise of stock options |
|
23 |
|
32 |
|
Distributions to noncontrolling interests |
|
(79 |
) |
(62 |
) |
Contributions from noncontrolling interests |
|
12 |
|
12 |
|
Dividends paid |
|
(272 |
) |
(281 |
) |
Cash Flow from financing activities |
|
1,089 |
|
742 |
|
|
|
|
|
|
|
Effects of exchange rates on cash |
|
(7 |
) |
50 |
|
Net increase (decrease) in cash |
|
220 |
|
(74 |
) |
|
|
|
|
|
|
Cash at beginning of period |
|
457 |
|
523 |
|
Cash at end of period |
|
677 |
|
449 |
|
Fresenius Medical Care
Quarterly Performance Scorecard - Revenue |
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
2012 |
|
cc |
|
2011 |
|
cc |
|
(in US-$ thousands, except per-treatment revenue) |
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
|
|
|
|
|
|
|
|
|
Net revenue |
|
2,248,692 |
|
|
|
1,970,990 |
|
|
|
Growth year-over-year |
|
14.1 |
% |
|
|
0.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net Dialysis care |
|
2,043,127 |
|
|
|
1,771,515 |
|
|
|
Growth year-over-year |
|
15.3 |
% |
|
|
0.6 |
% |
|
|
U.S. per treatment |
|
351 |
|
|
|
348 |
|
|
|
Per treatment |
|
344 |
|
|
|
340 |
|
|
|
Sequential growth |
|
-0.5 |
% |
|
|
-0.1 |
% |
|
|
Growth year-over-year |
|
1.1 |
% |
|
|
-2.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Dialysis products |
|
|
|
|
|
|
|
|
|
Incl. internal sales |
|
399,979 |
|
|
|
394,413 |
|
|
|
Growth year-over-year |
|
1.4 |
% |
|
|
1.2 |
% |
|
|
External sales |
|
205,565 |
|
|
|
199,475 |
|
|
|
Growth year-over-year |
|
3.1 |
% |
|
|
-4.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
International |
|
|
|
|
|
|
|
|
|
Net revenue |
|
1,170,902 |
|
|
|
1,162,448 |
|
|
|
Growth year-over-year |
|
0.7 |
% |
10.8 |
% |
26.4 |
% |
14.8 |
% |
|
|
|
|
|
|
|
|
|
|
Net dialysis care |
|
561,992 |
|
|
|
533,618 |
|
|
|
Growth year-over-year |
|
5.3 |
% |
16.3 |
% |
31.1 |
% |
19.6 |
% |
Per treatment |
|
159 |
|
176 |
|
178 |
|
162 |
|
Sequential growth |
|
-1.4 |
% |
|
|
3.5 |
% |
|
|
Growth year-over-year |
|
-10.4 |
% |
-1.0 |
% |
11.7 |
% |
1.9 |
% |
|
|
|
|
|
|
|
|
|
|
Dialysis products |
|
|
|
|
|
|
|
|
|
Incl. internal sales |
|
711,970 |
|
|
|
728,130 |
|
|
|
Growth year-over-year |
|
-2.2 |
% |
7.6 |
% |
22.6 |
% |
10.9 |
% |
External sales |
|
608,910 |
|
|
|
628,830 |
|
|
|
Growth year-over-year |
|
-3.2 |
% |
6.1 |
% |
22.7 |
% |
10.9 |
% |
cc= constant currency
Changes in revenue include the impact of changes in foreign currency exchange rates. We use the non-GAAP financial measure at constant exchange rates in our filings to show changes in our revenue without giving effect to period-to-period currency fluctuations. Under U.S. GAAP, revenues received in local (non-U.S. dollar) currency are translated into U.S. dollars at the average exchange rate for the period presented. When we use the term constant currency, it means that we have translated local currency revenues for the current reporting period into U.S. dollars using the same average foreign currency exchange rates for the conversion of revenues into U.S. dollars that we used to translate local currency revenues for the comparable reporting period of the prior year. We then calculate the change, as a percentage, of the current period revenues using the prior period exchange rates versus the prior period revenues. This resulting percentage is a non-GAAP measure referring to a change as a percentage at constant exchange rates.
We believe that revenue growth is a key indication of how a company is progressing from period to period and that the non-GAAP financial measure constant currency is useful to investors, lenders, and other creditors because such information enables them to gauge the impact of currency fluctuations on its revenue from period to period. However, we also believe that data on constant currency period-over-period changes have limitations, particularly as the currency effects that are eliminated could constitute a significant element of our revenue and could significantly impact our performance. We therefore limit our use of constant currency period-over-period changes to a measure for the impact of currency fluctuations on the translation of local currency revenue into U.S. dollars. We do not evaluate our results and performance without considering both constant currency period-over-period changes in non-U.S. GAAP revenue on the one hand and changes in revenue prepared in accordance with U.S. GAAP on the other. We caution the readers of this report to follow a similar approach by considering data on constant currency period-over-period changes only in addition to, and not as a substitute for or superior to, changes in revenue prepared in accordance with U.S. GAAP. We present the fluctuation derived from U.S. GAAP revenue next to the fluctuation derived from non-GAAP revenue. Because the reconciliation is inherent in the disclosure, we believe that a separate reconciliation would not provide any additional benefit.
Fresenius Medical Care
Quarterly Performance Scorecard - Dialysis Care Volume |
|
|
|
|
|
Three months ended June 30, |
|
2012 |
|
2011 |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
North America |
|
|
|
|
|
Number of treatments |
|
6,141,414 |
|
5,379,508 |
|
Treatments per day |
|
78,736 |
|
68,968 |
|
Per day sequential growth |
|
6.9 |
% |
1.3 |
% |
Per day year-over-year growth |
|
14.2 |
% |
3.7 |
% |
Same market growth year-over-year |
|
3.6 |
% |
3.2 |
% |
|
|
|
|
|
|
International |
|
|
|
|
|
Number of treatments |
|
3,531,153 |
|
3,004,965 |
|
Same market growth year-over-year |
|
3.9 |
% |
5.2 |
% |
Fresenius Medical Care
Quarterly Performance Scorecard - Expenses |
|
|
|
|
|
Three months ended June 30, |
|
2012 |
|
2011 |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
North America |
|
|
|
|
|
Costs of revenue and operating expenses, gain on sale of dialysis clinics and income from equity method investees |
|
|
|
|
|
In percent of revenue |
|
80.8 |
% |
82.3 |
% |
Selling, general and administrative |
|
|
|
|
|
In percent of revenue |
|
14.1 |
% |
13.9 |
% |
U.S. Dialysis care operating expenses/treatment (in US-$) |
|
280 |
|
283 |
|
Sequential growth |
|
-2.1 |
% |
-1.9 |
% |
Growth year-over-year |
|
-0.9 |
% |
-3.3 |
% |
Dialysis Care operating expenses/treatment (in US-$) |
|
275 |
|
277 |
|
Sequential growth |
|
-2.0 |
% |
-2.0 |
% |
Growth year-over-year |
|
-0.7 |
% |
-3.5 |
% |
|
|
|
|
|
|
Total Group |
|
|
|
|
|
Costs of revenue and operating expenses, gain on sale of dialysis clinics and income from equity method investees |
|
|
|
|
|
In percent of revenue |
|
82.8 |
% |
83.8 |
% |
Selling, general and administrative |
|
|
|
|
|
In percent of revenue |
|
15.7 |
% |
16.0 |
% |
Effective tax rate |
|
34.6 |
% |
34.2 |
% |
Fresenius Medical Care
Quarterly Performance Scorecard - Cash Flow/Investing Activities |
|
|
|
|
|
Three months ended June 30, |
|
2012 |
|
2011 |
|
(in US-$ thousands, except number of de novos) |
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Total Group |
|
|
|
|
|
Operating cash flow |
|
450,783 |
|
311,244 |
|
In percent of revenue |
|
13.2 |
% |
9.9 |
% |
|
|
|
|
|
|
Free cash flow before acquisitions |
|
299,593 |
|
194,108 |
|
In percent of revenue |
|
8.7 |
% |
6.2 |
% |
|
|
|
|
|
|
Acquisitions and investments, net of divestitures |
|
-6,108 |
|
783,666 |
|
|
|
|
|
|
|
Capital expenditures, net |
|
151,190 |
|
117,136 |
|
In percent of revenue |
|
4.4 |
% |
3.7 |
% |
|
|
|
|
|
|
Maintenance |
|
87,802 |
|
66,615 |
|
In percent of revenue |
|
2.6 |
% |
2.1 |
% |
|
|
|
|
|
|
Growth |
|
63,388 |
|
50,521 |
|
In percent of revenue |
|
1.8 |
% |
1.6 |
% |
|
|
|
|
|
|
Number of de novos |
|
21 |
|
7 |
|
North America |
|
16 |
|
4 |
|
International |
|
5 |
|
3 |
|
Fresenius Medical Care
Quarterly Performance Scorecard - Balance Sheet |
|
|
|
|
|
June 30, |
|
2012 |
|
2011 |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Total Group |
|
|
|
|
|
Debt (in US-$ million) |
|
8,784 |
|
7,114 |
|
Debt/EBITDA |
|
2.9 |
|
2.8 |
|
|
|
|
|
|
|
North America |
|
|
|
|
|
Days sales outstanding |
|
54 |
|
59 |
|
|
|
|
|
|
|
International |
|
|
|
|
|
Days sales outstanding |
|
120 |
|
121 |
|
Fresenius Medical Care
Quarterly Performance Scorecard |
|
|
|
|
|
Three months ended June 30, |
|
2012 |
|
2011 |
|
|
|
|
|
|
|
North America (U.S.) |
|
|
|
|
|
Clinical Performance |
|
|
|
|
|
Single Pool Kt/v > 1.2 |
|
97 |
% |
97 |
% |
Hemoglobin = 10-12g/dl |
|
77 |
% |
75 |
% |
Hemoglobin = 10-13g/dl |
|
83 |
% |
89 |
% |
Calcium = 8.4-10.2mg/dl |
|
83 |
% |
79 |
% |
Albumin >= 3.5 g/dl (1) |
|
86 |
% |
84 |
% |
No catheter |
|
79 |
% |
77 |
% |
Phosphate <= 5.5mg/dl |
|
65 |
% |
63 |
% |
Hospitalization days per patient (12 months ending June 30) |
|
9.7 |
|
9.8 |
|
|
|
|
|
|
|
Demographics |
|
|
|
|
|
Average age (in years) |
|
62 |
|
62 |
|
Average time on dialysis (in years) |
|
3.8 |
|
3.7 |
|
Average body weight (in kg) |
|
81 |
|
81 |
|
Prevalence of diabetes |
|
58 |
% |
56 |
% |
|
|
|
|
|
|
Europe, Middle East and Africa |
|
|
|
|
|
Clinical Performance |
|
|
|
|
|
Single Pool Kt/v > 1.2 |
|
96 |
% |
96 |
% |
Hemoglobin = 10-12g/dl |
|
59 |
% |
57 |
% |
Hemoglobin = 10-13g/dl |
|
78 |
% |
78 |
% |
Calcium = 8.4-10.2mg/dl |
|
76 |
% |
77 |
% |
Albumin >= 3.5 g/dl (1) |
|
88 |
% |
89 |
% |
No catheter |
|
81 |
% |
81 |
% |
Phosphate <= 5.5mg/dl |
|
77 |
% |
74 |
% |
Hospitalization days per patient (12 months ending June 30) |
|
9.2 |
|
9.6 |
|
|
|
|
|
|
|
Demographics |
|
|
|
|
|
Average age (in years) |
|
64 |
|
64 |
|
Average time on dialysis (in years) |
|
5.2 |
|
5.0 |
|
Average body weight (in kg) |
|
71 |
|
71 |
|
Prevalence of diabetes |
|
27 |
% |
28 |
% |
(1) International standard BCR CRM470