EX-99.1 2 a12-17177_1ex99d1.htm EX-99.1

Exhibit 99.1

 

 

Investor News

 

Oliver Maier

 

 

Head of Investor Relations

 

 

 

 

 

Fresenius Medical Care

 

 

Else-Kröner-Straße 1

 

 

61352 Bad Homburg

 

 

Germany

 

 

T +49 6172 609-2601

 

 

F +49 6172 609-2301

 

 

oliver.maier@fmc-ag.com

 

 

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

 

$

3,428 million

 

+9

%

Operating income (EBIT)

 

$

589 million

 

+16

%

Net income *

 

$

289 million

 

+11

%

Earnings per ordinary share

 

$

0.95

 

+10

%

 

 

 

 

 

 

Earnings excluding investment gain:

 

 

 

 

 

Net income *

 

$

276 million

 

+6

%

Earnings per ordinary share

 

$

0.91

 

+5

%

 

First Half 2012 Summary:

 

Net revenue

 

$

6,677 million

 

+9

%

Operating income (EBIT)

 

$

1,092 million

 

+14

%

Net income *

 

$

660 million

 

+37

%

Earnings per ordinary share

 

$

2.17

 

+36

%

 

 

 

 

 

 

Earnings excluding investment gain:

 

 

 

 

 

Net income *

 

$

520 million

 

+8

%

Earnings per ordinary share

 

$

1.71

 

+7

%

 


* Attributable to shareholders of Fresenius Medical Care AG & Co. KGaA

 

1



 

Bad Homburg, GermanyFresenius Medical Care AG & Co. KGaA (the “company” or “Fresenius Medical Care”; Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS), the world’s 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.

 

2



 

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.

 

3



 

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.

 

4



 

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 year’s 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 year’s figure.

 

5



 

As of June 30, 2012, the company operated a total of 3,123 clinics worldwide, which represents a 10% increase compared to the previous year’s 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 year’s 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 company’s 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

 

Moody’s affirmed the company’s corporate credit as ‘Ba1’ with a ‘stable’ outlook, and Fitch rates the company’s corporate credit as ‘BB+’ with a ‘stable’ outlook. Standard & Poor’s placed the company’s corporate credit on review as ‘BB+’ with a possible downgrade from “stable” to “negative”.  For further information on Fresenius Medical Care’s credit ratings, maturity profiles and credit instruments, please visit our website at www.fmc-ag.com / Investor Relations / Credit Relations.

 

6



 

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 company’s 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 world’s largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than

 

7



 

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 world’s leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products.

 

For more information about Fresenius Medical Care, visit the company’s 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. KGaA’s 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.

 

8



 

Fresenius Medical Care

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30,

 

June 30,

 

Statement of Earnings

 

2012

 

2011

 

Change

 

2012

 

2011

 

Change

 

(in US-$ thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

Dialysis care

 

2,675,422

 

2,361,563

 

13.3

%

5,219,481

 

4,646,879

 

12.3

%

Less: patient service bad debt provision

 

70,303

 

56,429

 

24.6

%

137,162

 

108,966

 

25.9

%

Net dialysis care

 

2,605,119

 

2,305,134

 

13.0

%

5,082,319

 

4,537,913

 

12.0

%

Dialysis products

 

822,854

 

832,489

 

-1.2

%

1,594,409

 

1,583,561

 

0.7

%

Total net revenue

 

3,427,973

 

3,137,623

 

9.3

%

6,676,728

 

6,121,474

 

9.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

2,301,099

 

2,108,617

 

9.1

%

4,480,345

 

4,144,581

 

8.1

%

Gross profit

 

1,126,874

 

1,029,006

 

9.5

%

2,196,383

 

1,976,893

 

11.1

%

Selling, general and administrative

 

539,616

 

501,559

 

7.6

%

1,092,448

 

985,795

 

10.8

%

Gain on sale of dialysis clinics

 

(24,647

)

 

 

 

(33,961

)

 

 

 

Research and development

 

26,938

 

26,783

 

0.6

%

55,460

 

52,932

 

4.8

%

Income from equity method investees

 

(3,858

)

(8,880

)

-56.5

%

(9,355

)

(16,462

)

-43.2

%

Operating income (EBIT)

 

588,825

 

509,544

 

15.6

%

1,091,791

 

954,628

 

14.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment gain

 

(12,915

)

 

 

 

(139,600

)

 

 

 

Interest income

 

(12,496

)

(15,579

)

-19.8

%

(32,802

)

(26,000

)

26.2

%

Interest expense

 

116,691

 

90,183

 

29.4

%

235,877

 

172,169

 

37.0

%

Interest expense, net

 

104,195

 

74,604

 

39.7

%

203,075

 

146,169

 

38.9

%

Income before taxes

 

497,545

 

434,940

 

14.4

%

1,028,316

 

808,459

 

27.2

%

Income tax expense

 

172,241

 

148,856

 

15.7

%

309,318

 

273,260

 

13.2

%

Net income

 

325,304

 

286,084

 

13.7

%

718,998

 

535,199

 

34.3

%

Less: Net income attributable to noncontrolling interests

 

35,967

 

25,323

 

42.0

%

59,163

 

53,737

 

10.1

%

Net income attributable to shareholders of FMC AG & Co. KGaA

 

289,337

 

260,761

 

11.0

%

659,835

 

481,462

 

37.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (EBIT)

 

588,825

 

509,544

 

15.6

%

1,091,791

 

954,628

 

14.4

%

Depreciation and amortization

 

150,877

 

136,289

 

10.7

%

294,251

 

272,273

 

8.1

%

EBITDA

 

739,702

 

645,833

 

14.5

%

1,386,042

 

1,226,901

 

13.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per ordinary share

 

$

0.95

 

$

0.86

 

10.3

%

$

2.17

 

$

1.59

 

36.2

%

Earnings per ordinary ADS

 

$

0.95

 

$

0.86

 

10.3

%

$

2.17

 

$

1.59

 

36.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares

 

 

 

 

 

 

 

 

 

 

 

 

 

Ordinary shares

 

300,415,725

 

298,559,749

 

 

 

300,310,425

 

298,427,098

 

 

 

Preference shares

 

3,966,600

 

3,958,515

 

 

 

3,966,301

 

3,957,978

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In percent of revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

67.1

%

67.2

%

 

 

67.1

%

67.7

%

 

 

Gross profit

 

32.9

%

32.8

%

 

 

32.9

%

32.3

%

 

 

Selling, general and administrative

 

15.7

%

16.0

%

 

 

16.4

%

16.1

%

 

 

Gain on sale of dialysis clinics

 

-0.7

%

 

 

 

-0.5

%

 

 

 

Research and development

 

0.8

%

0.9

%

 

 

0.8

%

0.9

%

 

 

Income from equity method investees

 

-0.1

%

-0.3

%

 

 

-0.1

%

-0.3

%

 

 

Operating income (EBIT)

 

17.2

%

16.2

%

 

 

16.4

%

15.6

%

 

 

Investment gain

 

-0.4

%

 

 

 

 

-2.1

%

 

 

 

 

Interest expense, net

 

3.0

%

2.4

%

 

 

3.0

%

2.4

%

 

 

Income before taxes

 

14.5

%

13.9

%

 

 

15.4

%

13.2

%

 

 

Income tax expense

 

5.0

%

4.7

%

 

 

4.6

%

4.5

%

 

 

Net income attributable to noncontrolling interests

 

1.0

%

0.8

%

 

 

0.9

%

0.9

%

 

 

Net income attributable to shareholders of FMC AG & Co. KGaA

 

8.4

%

8.3

%

 

 

9.9

%

7.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

21.6

%

20.6

%

 

 

20.8

%

20.0

%

 

 

 

9



 

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

 

 

 

 

10



 

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 Care’s long-term debt instruments.

(2) EBITDA 2012: Pro forma numbers including Liberty Dialysis Holdings Inc., after FTC mandated divestitures.

 

11



 

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

 

 

12



 

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

 

 

13



 

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.

 

14



 

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

%

 

15



 

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

 

 

16



 

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

 

17