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 November 2014
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 November 4, 2014 Fresenius Medical Care AG & Co. KGaA (the Company) issued an Investor News announcing its third quarter results for the period ending September 30, 2014. 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 third quarter 2014 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: November 4, 2014 |
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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/ RICE POWELL | |
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Name: |
Rice Powell |
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Title: |
Chief Executive Officer and |
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Chairman of the Management Board |
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of the General Partner |
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By: |
/s/ MICHAEL BROSNAN | |
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Name: |
Michael Brosnan |
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Title: |
Chief Financial Officer and |
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Member of the Management Board |
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of the General Partner |
Exhibit 99.1
November 4, 2014
INVESTOR
NEWS
Fresenius Medical Care reports
strong operating results for the third quarter 2014 and confirms guidance for full year 2014
· Third quarter shows strong organic revenue growth
· Operating cash flow on record level in third quarter
· Company remains on track to achieve full year guidance
Third quarter 2014 key figures:
Net revenue |
|
$ |
4,113 million |
|
+12 |
% |
Operating income (EBIT) |
|
$ |
590 million |
|
+6 |
% |
Net income1 |
|
$ |
271 million |
|
-1 |
% |
Basic earnings per share |
|
$ |
0.89 |
|
-1 |
% |
First nine months 2014 key figures:
Net revenue |
|
$ |
11,511 million |
|
+7 |
% |
Operating income (EBIT) |
|
$ |
1,591 million |
|
0 |
% |
Net income1 |
|
$ |
710 million |
|
-7 |
% |
Basic earnings per share |
|
$ |
2.35 |
|
-6 |
% |
Rice Powell, chief executive officer of Fresenius Medical Care stated: The third quarter has confirmed the positive trend from the previous quarter. Growth rates in revenue and earnings again improved and our operating cash flow has reached an all time high for a single quarter. We are on track to achieve our guidance as well as our cost savings target for the full year. The recent acquisitions, in combination with financing activities were important steps in the execution of our strategy to achieve our long term target 2020.
1 attributable to shareholders of Fresenius Medical Care AG & Co. KGaA
Third quarter 2014
Revenue
Net revenue for the third quarter of 2014 increased by 12% to $4,113 million (+13% at constant currency) as compared to the third quarter of 2013. Organic revenue growth worldwide was 7%. Dialysis services revenue grew by 14% to $3,197 million (+15% at constant currency) and dialysis product revenue increased by 7% to $916 million (+7% at constant currency) as compared to the third quarter of 2013.
North America revenue for the third quarter of 2014 increased by 11% to $2,710 million. Organic revenue growth was 5%. Dialysis services revenue grew by 12% to $2,498 million with a same store treatment growth of 3.5%. Dialysis product revenue was flat compared to the third quarter of 2013 at $212 million.
International revenue increased by 13% to $1,386 million (+16% at constant currency). Organic revenue growth was 8%. Dialysis services revenue increased by 19% to $699 million (+25% at constant currency). Dialysis product revenue increased by 9% to $687 million (+9% at constant currency).
Earnings
Operating income (EBIT) for the third quarter of 2014 increased by 6% to $590 million as compared to $557 million in the third quarter of 2013. Operating income for North America for the third quarter of 2014 was $413 million, flat as compared to the third quarter of 2013. In the International segment, operating income for the third quarter of 2014 increased by 26% to $269 million as compared to $214 million in the third quarter of 2013.
Net interest expense for the third quarter of 2014 was $99 million, compared to $103 million in the third quarter of 2013.
Income tax expense was $162 million for the third quarter of 2014, which translates into an effective tax rate of 32.9%. This compares to income tax expense of $148 million and a tax rate of 32.6% for the third quarter of 2013.
Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the third quarter of 2014 was $271 million, a decrease of 1% compared to the corresponding number of $273 million for the third quarter of 2013.
Basic earnings per share (EPS) for the third quarter of 2014 was $0.89, a decrease of 1% compared to the corresponding number for the third quarter of 2013. The weighted average number of shares outstanding for the third quarter of 2014 was approximately 302.7 million shares, compared to 301.3 million shares for the third quarter of 2013. The increase in shares outstanding resulted from stock option exercises in the past twelve months.
Cash flow
In the third quarter of 2014, the company generated $712 million in net cash provided by operating activities, an increase of 18% compared to the corresponding figure of last year and representing 17% of revenue.
A total of $224 million was spent for capital expenditures, net of disposals. Free cash flow was $488 million compared to $430 million in the third quarter of 2013.
A total of $613 million in cash was spent for acquisitions and investments, net of divestitures. Free cash flow after investing activities was a negative $125 million as compared to $235 million in the third quarter of 2013.
First nine months 2014
Revenue and earnings
Net revenue for the first nine months of 2014 increased by 7% to $11,511 million (+8% at constant currency) as compared to the first nine months of 2013. Organic revenue growth worldwide was 5%.
Operating income (EBIT) for the first nine months of 2014 was $1,591 million as compared to $1,595 million in the first nine months of 2013.
Net interest expense for the first nine months of 2014 was $294 million as compared to $310 million in the first nine months of 2013.
Income tax expense for the first nine months of 2014 was $440 million, which translates into an effective tax rate of 33.9%. This compares to income tax expense of $421 million and a tax rate of 32.8% for the first nine months of 2013.
For the first nine months of 2014, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA was $710 million, down by 7% from the corresponding number of $761 million for the first nine months of 2013.
In the first nine months of 2014, basic earnings per share (EPS) was $2.35, a decrease of 6% compared to the corresponding number for the first nine months of 2013. The weighted average number of shares outstanding during the first nine months of 2014 was approximately 302.0 million shares.
Cash flow
In the first nine months of 2014, the company generated $1,274 million in net cash provided by operating activities as compared to $1,446 million for the same period in 2013 and representing 11% of revenue.
A total of $639 million was spent for capital expenditures, net of disposals. Free cash flow for the first nine months of 2014 was $635 million as compared to $952 million in the first nine months of 2013.
A total of $1,045 million in cash was spent for acquisitions and investments, net of divestitures. Free cash flow after investing activities was a negative $410 million as compared to $673 million in the first nine months of 2013.
Employees
As of September 30, 2014, Fresenius Medical Care had 97,327 employees (full-time equivalents) worldwide, compared to 89,282 employees at the end of September 2013. This increase of more than 8,000 employees was attributable to acquisitions as well as to our continued organic growth.
Balance sheet structure
The company´s total assets were $24,253 million (Dec. 31, 2013: $23,120 million), an increase of 5%. Current assets increased by 3% to $6,459 million (Dec. 31, 2013: $6,287 million). Non-current assets were $17,794 million (Dec. 31, 2013: $16,833 million), an increase of 6%. Total equity increased by 3% to $9,750 million (Dec. 31, 2013: $9,485 million). The equity ratio was 40% as compared to 41% at the end of 2013. Total debt was $9,068 million (Dec. 31, 2013: $8,417 million). As of September 30, 2014, the debt/EBITDA ratio was 3.0 (Dec. 31, 2013: 2.8).
Please refer to the attachments for a complete overview of the results for the third quarter and first nine months of 2014 and the reconciliation of non-GAAP financial measures included in this release to the most comparable GAAP financial measures.
Outlook
The company expects revenue to be at around $15.2 billion in 2014, translating into a growth rate of around 4%. This outlook excludes revenue of approximately $500 million from acquisitions completed during the first nine months of 2014.
Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to be unchanged between $1.0 billion and $1.05 billion in 2014. The company initiated a global efficiency program designed to enhance the companys performance over a multi-year period.
Potential cost savings, before income taxes, of up to $60 million generated from this program, and net of implementation costs are not included in the outlook for 2014.
For 2014, the company expects to spend around $900 million on capital expenditures. Reflecting the latest acquisitions the company now expects acquisition spending of around $1.3 billion for fiscal year 2014 (previously $1 billion). The debt/EBITDA ratio is expected to be around 3.0 by the end of 2014.
Conference call
Fresenius Medical Care will hold a conference call to discuss the results of the third quarter 2014 on Tuesday, November 4, 2014 at 3.30 p.m. CET/ 9.30 a.m. EST. The company invites investors to follow 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.
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 2.5 million individuals worldwide. Through its network of 3,349 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatments for 283,135 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.
Statement of earnings
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Three months ended |
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Nine months ended |
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in US$ million, except share data, unaudited |
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2014 |
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2013 |
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Change |
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2014 |
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2013 |
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Change |
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Dialysis care revenue |
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3,277 |
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2,887 |
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13.5 |
% |
9,136 |
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8,440 |
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8.2 |
% | ||||
Less: patient service bad debt provision |
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80 |
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74 |
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8.5 |
% |
208 |
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205 |
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1.3 |
% | ||||
Net dialysis care revenue |
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3,197 |
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2,813 |
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13.6 |
% |
8,928 |
|
8,235 |
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8.4 |
% | ||||
Dialysis products revenue |
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916 |
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853 |
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7.4 |
% |
2,583 |
|
2,508 |
|
3.0 |
% | ||||
Total net revenue |
|
4,113 |
|
3,666 |
|
12.2 |
% |
11,511 |
|
10,743 |
|
7.2 |
% | ||||
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Costs of revenue |
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2,825 |
|
2,497 |
|
13.1 |
% |
7,929 |
|
7,306 |
|
8.5 |
% | ||||
Gross profit |
|
1,288 |
|
1,169 |
|
10.2 |
% |
3,582 |
|
3,437 |
|
4.2 |
% | ||||
Selling, general and administrative |
|
670 |
|
585 |
|
14.7 |
% |
1,921 |
|
1,772 |
|
8.4 |
% | ||||
(Gain) loss on sale of dialysis clinics |
|
1 |
|
(1 |
) |
-263.5 |
% |
1 |
|
(9 |
) |
-107.9 |
% | ||||
Research and development |
|
30 |
|
33 |
|
-9.0 |
% |
91 |
|
95 |
|
-3.7 |
% | ||||
Income from equity method investees |
|
(3 |
) |
(5 |
) |
-34.8 |
% |
(22 |
) |
(16 |
) |
51.1 |
% | ||||
Operating income (EBIT) |
|
590 |
|
557 |
|
5.9 |
% |
1,591 |
|
1,595 |
|
-0.2 |
% | ||||
|
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|
|
|
|
|
|
|
|
|
|
|
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Interest income |
|
(12 |
) |
(9 |
) |
32.9 |
% |
(40 |
) |
(26 |
) |
53.7 |
% | ||||
Interest expense |
|
111 |
|
112 |
|
-1.1 |
% |
334 |
|
336 |
|
-0.8 |
% | ||||
Interest expense, net |
|
99 |
|
103 |
|
-3.9 |
% |
294 |
|
310 |
|
-5.4 |
% | ||||
Income before taxes |
|
491 |
|
454 |
|
8.1 |
% |
1,297 |
|
1,285 |
|
1.0 |
% | ||||
Income tax expense |
|
162 |
|
148 |
|
9.1 |
% |
440 |
|
421 |
|
4.6 |
% | ||||
Net income |
|
329 |
|
306 |
|
7.6 |
% |
857 |
|
864 |
|
-0.7 |
% | ||||
Less: Net income attributable to noncontrolling interests |
|
58 |
|
33 |
|
77.3 |
% |
147 |
|
103 |
|
43.5 |
% | ||||
Net income attributable to shareholders of FMC AG & Co. KGaA |
|
271 |
|
273 |
|
-0.8 |
% |
710 |
|
761 |
|
-6.7 |
% | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Operating income (EBIT) |
|
590 |
|
557 |
|
5.9 |
% |
1,591 |
|
1,595 |
|
-0.2 |
% | ||||
Depreciation and amortization |
|
177 |
|
165 |
|
8.0 |
% |
514 |
|
479 |
|
7.1 |
% | ||||
EBITDA |
|
767 |
|
722 |
|
6.3 |
% |
2,105 |
|
2,074 |
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1.5 |
% | ||||
EBITDA margin |
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18.7 |
% |
19.7 |
% |
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18.3 |
% |
19.3 |
% |
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Weighted average number of shares |
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Ordinary shares |
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302,711,512 |
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301,310,149 |
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301,999,288 |
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302,158,886 |
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Preference shares |
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|
|
|
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|
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2,590,857 |
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Basic earnings per share |
|
$ |
0.89 |
|
$ |
0.91 |
|
-1.2 |
% |
$ |
2.35 |
|
$ |
2.50 |
|
-5.9 |
% |
Basic earnings per ADS |
|
$ |
0.45 |
|
$ |
0.45 |
|
-1.2 |
% |
$ |
1.18 |
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$ |
1.25 |
|
-5.9 |
% |
|
|
|
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|
|
|
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|
|
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In percent of revenue |
|
|
|
|
|
|
|
|
|
|
|
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Cost of revenue |
|
68.7 |
% |
68.1 |
% |
|
|
68.9 |
% |
68.0 |
% |
|
| ||||
Gross profit |
|
31.3 |
% |
31.9 |
% |
|
|
31.1 |
% |
32.0 |
% |
|
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Operating income (EBIT) |
|
14.3 |
% |
15.2 |
% |
|
|
13.8 |
% |
14.8 |
% |
|
| ||||
Net income attributable to shareholders of FMC AG & Co. KGaA |
|
6.6 |
% |
7.4 |
% |
|
|
6.2 |
% |
7.1 |
% |
|
|
Segment and other information
|
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Three months ended |
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Nine months ended |
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unaudited |
|
2014 |
|
2013 |
|
Change |
|
2014 |
|
2013 |
|
Change |
|
|
|
|
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|
|
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Total |
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Revenue in US$ million |
|
4,113 |
|
3,666 |
|
12.2 |
% |
11,511 |
|
10,743 |
|
7.2 |
% |
Operating income (EBIT) in US$ million |
|
590 |
|
557 |
|
5.9 |
% |
1,591 |
|
1,595 |
|
-0.2 |
% |
Operating income margin in % |
|
14.3 |
% |
15.2 |
% |
|
|
13.8 |
% |
14.8 |
% |
|
|
Days sales outstanding (DSO) |
|
|
|
|
|
|
|
72 |
|
73 |
|
|
|
Employees (full-time equivalents) |
|
|
|
|
|
|
|
97,327 |
|
89,282 |
|
|
|
|
|
|
|
|
|
|
|
|
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North America |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue in US$ million |
|
2,710 |
|
2,436 |
|
11.2 |
% |
7,624 |
|
7,099 |
|
7.4 |
% |
Operating income (EBIT) in US$ million 1) |
|
413 |
|
413 |
|
-0.1 |
% |
1,149 |
|
1,170 |
|
-1.8 |
% |
Operating income margin in % 1) |
|
15.2 |
% |
17.0 |
% |
|
|
15.1 |
% |
16.5 |
% |
|
|
Revenue per treatment in US$ |
|
363 |
|
352 |
|
3.2 |
% |
358 |
|
350 |
|
2.4 |
% |
Cost per treatment in US$ |
|
299 |
|
287 |
|
4.0 |
% |
297 |
|
287 |
|
3.6 |
% |
Days sales outstanding (DSO) |
|
|
|
|
|
|
|
52 |
|
51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue per treatment in US$ |
|
371 |
|
359 |
|
3.1 |
% |
366 |
|
358 |
|
2.4 |
% |
Cost per treatment in US$ |
|
304 |
|
293 |
|
3.8 |
% |
303 |
|
293 |
|
3.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue in US$ million |
|
1,386 |
|
1,222 |
|
13.4 |
% |
3,843 |
|
3,619 |
|
6.2 |
% |
Operating income (EBIT) in US$ million 1) |
|
269 |
|
214 |
|
25.8 |
% |
692 |
|
624 |
|
11.0 |
% |
Operating income margin in % 1) |
|
19.4 |
% |
17.5 |
% |
|
|
18.0 |
% |
17.2 |
% |
|
|
Revenue per treatment in US$ |
|
168 |
|
156 |
|
7.8 |
% |
162 |
|
159 |
|
1.9 |
% |
Growth at constant currency |
|
13.4 |
% |
1.5 |
% |
|
|
7.4 |
% |
2.3 |
% |
|
|
Days sales outstanding (DSO) |
|
|
|
|
|
|
|
108 |
|
114 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue in US$ million |
|
17 |
|
8 |
|
119.0 |
% |
44 |
|
25 |
|
78.2 |
% |
Operating income (EBIT) in US$ million 1) |
|
(92 |
) |
(70 |
) |
31.6 |
% |
(250 |
) |
(199 |
) |
25.8 |
% |
1) Certain items, in the net aggregate amount of $7,003 and $18,373 for the three- and nine-month periods ending September 30, 2013, respectively, relating to research and development, compensation expense and income from equity method investees have been reclassified between the North America Segment, the International Segment and Corporate, as applicable, to conform to the current years presentation.
Reconciliation of non U.S. GAAP financial measures to the most directly comparable U.S. GAAP financial measures
|
|
Three months ended |
|
Nine months ended |
| ||||
in US$ million, unaudited |
|
2014 |
|
2013 |
|
2014 |
|
2013 |
|
Segment information North America (1) |
|
|
|
|
|
|
|
|
|
Net revenue |
|
2,710 |
|
2,436 |
|
|
|
|
|
Costs of revenue and research and development |
|
1,910 |
|
1,688 |
|
|
|
|
|
Selling, general and administrative |
|
389 |
|
338 |
|
|
|
|
|
Income from equity method investees |
|
(2 |
) |
(3 |
) |
|
|
|
|
Costs of revenue and operating expenses |
|
2,297 |
|
2,023 |
|
|
|
|
|
Operating income (EBIT) |
|
413 |
|
413 |
|
|
|
|
|
Operating income margin |
|
15.2 |
% |
17.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net cash provided by operating activities to EBITDA (2) |
|
|
|
|
|
|
|
|
|
Total EBITDA |
|
|
|
|
|
2,105 |
|
2,074 |
|
Interest expense, net |
|
|
|
|
|
(294 |
) |
(310 |
) |
Income tax expense |
|
|
|
|
|
(440 |
) |
(421 |
) |
Change in working capital and other non-cash items |
|
|
|
|
|
(97 |
) |
103 |
|
Net cash provided by operating activities |
|
|
|
|
|
1,274 |
|
1,446 |
|
|
|
|
|
|
|
|
|
|
|
Annualized EBITDA (3) |
|
|
|
|
|
|
|
|
|
Operating income (EBIT) |
|
|
|
|
|
2,265 |
|
2,154 |
|
Depreciation and amortization |
|
|
|
|
|
684 |
|
636 |
|
Non-cash charges |
|
|
|
|
|
50 |
|
76 |
|
Annualized EBITDA |
|
|
|
|
|
2,999 |
|
2,866 |
|
(1) In 2013 certain items relating to research and development, compensation expense and income from equity method investees have been reclassified between the North America Segment, the International Segment and Corporate, as applicable, to conform to the current years presentation.
2) EBITDA is the basis for determining compliance with certain covenants in Fresenius Medical Cares long-term debt instruments.
3) EBITDA 2014: Pro forma numbers including Sound Inpatient Physicians Inc..
Balance sheet
|
|
September 30 |
|
December 31 |
|
|
|
2014 |
|
2013 |
|
in US$ million, except debt/EBITDA ratio |
|
(unaudited) |
|
(audited) |
|
Assets |
|
|
|
|
|
Current assets |
|
6,459 |
|
6,287 |
|
Intangible assets |
|
13,131 |
|
12,416 |
|
Other non-current assets |
|
4,663 |
|
4,417 |
|
Total assets |
|
24,253 |
|
23,120 |
|
|
|
|
|
|
|
Liabilities and equity |
|
|
|
|
|
Current liabilities |
|
4,296 |
|
3,554 |
|
Long-term liabilities |
|
9,433 |
|
9,433 |
|
Noncontrolling interests subject to put provisions |
|
774 |
|
648 |
|
Total equity |
|
9,750 |
|
9,485 |
|
Total liabilities and equity |
|
24,253 |
|
23,120 |
|
|
|
|
|
|
|
Equity/assets ratio |
|
40 |
% |
41 |
% |
|
|
|
|
|
|
Debt |
|
|
|
|
|
Short-term borrowings |
|
140 |
|
97 |
|
Short-term borrowings from related parties |
|
291 |
|
62 |
|
Current portion of long-term debt and capital lease obligations |
|
924 |
|
511 |
|
Long-term debt and capital lease obligations, less current portion |
|
7,713 |
|
7,747 |
|
Total debt |
|
9,068 |
|
8,417 |
|
|
|
|
|
|
|
Debt/EBITDA ratio |
|
3.0 |
|
2.8 |
|
Cash flow statement
|
|
Three months ended |
|
Nine months ended |
| ||||
in US$ million, unaudited |
|
2014 |
|
2013 |
|
2014 |
|
2013 |
|
Operating activities |
|
|
|
|
|
|
|
|
|
Net income |
|
329 |
|
306 |
|
857 |
|
864 |
|
Depreciation / amortization |
|
177 |
|
165 |
|
514 |
|
479 |
|
Change in working capital and other non-cash items |
|
206 |
|
134 |
|
(97 |
) |
103 |
|
Net cash provided by operating activities |
|
712 |
|
605 |
|
1,274 |
|
1,446 |
|
In percent of revenue |
|
17.3 |
% |
16.5 |
% |
11.1 |
% |
13.5 |
% |
|
|
|
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
(227 |
) |
(179 |
) |
(646 |
) |
(512 |
) |
Proceeds from sale of property, plant and equipment |
|
3 |
|
4 |
|
7 |
|
18 |
|
Capital expenditures, net |
|
(224 |
) |
(175 |
) |
(639 |
) |
(494 |
) |
|
|
|
|
|
|
|
|
|
|
Free cash flow |
|
488 |
|
430 |
|
635 |
|
952 |
|
In percent of revenue |
|
11.9 |
% |
11.7 |
% |
5.5 |
% |
8.9 |
% |
|
|
|
|
|
|
|
|
|
|
Acquisitions, net of cash acquired, and purchases of intangible assets |
|
(614 |
) |
(195 |
) |
(1,049 |
) |
(297 |
) |
Proceeds from divestitures |
|
1 |
|
0 |
|
4 |
|
18 |
|
Acquisitions, net of divestitures |
|
(613 |
) |
(195 |
) |
(1,045 |
) |
(279 |
) |
Free cash flow after investing activities |
|
(125 |
) |
235 |
|
(410 |
) |
673 |
|
Revenue development
in US$ million, unaudited |
|
2014 |
|
2013 |
|
Change |
|
Change |
|
Organic |
|
Same store |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
4,113 |
|
3,666 |
|
12.2 |
% |
13.2 |
% |
6.6 |
% |
|
|
Dialysis products |
|
916 |
|
853 |
|
7.4 |
% |
7.5 |
% |
7.3 |
% |
|
|
Net dialysis care |
|
3,197 |
|
2,813 |
|
13.6 |
% |
14.9 |
% |
6.3 |
% |
3.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
|
2,710 |
|
2,436 |
|
11.2 |
% |
11.2 |
% |
5.3 |
% |
|
|
Dialysis products |
|
212 |
|
212 |
|
-0.2 |
% |
-0.2 |
% |
-0.1 |
% |
|
|
Net dialysis care |
|
2,498 |
|
2,224 |
|
12.3 |
% |
12.3 |
% |
5.8 |
% |
3.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International |
|
1,386 |
|
1,222 |
|
13.4 |
% |
16.4 |
% |
8.5 |
% |
|
|
Dialysis products |
|
687 |
|
633 |
|
8.5 |
% |
8.7 |
% |
8.4 |
% |
|
|
Net dialysis care |
|
699 |
|
589 |
|
18.6 |
% |
24.7 |
% |
8.6 |
% |
3.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional development |
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
|
2,710 |
|
2,436 |
|
11.2 |
% |
11.2 |
% |
5.3 |
% |
|
|
Europe/Middle East/Africa |
|
784 |
|
742 |
|
5.7 |
% |
6.5 |
% |
6.7 |
% |
|
|
Latin America |
|
215 |
|
204 |
|
4.9 |
% |
18.4 |
% |
17.1 |
% |
|
|
Asia-Pacific |
|
387 |
|
276 |
|
40.2 |
% |
41.3 |
% |
7.0 |
% |
|
|
Corporate |
|
17 |
|
8 |
|
119.0 |
% |
119.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended September 30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
11,511 |
|
10,743 |
|
7.2 |
% |
8.1 |
% |
4.8 |
% |
|
|
Dialysis products |
|
2,583 |
|
2,508 |
|
3.0 |
% |
3.1 |
% |
3.0 |
% |
|
|
Net dialysis care |
|
8,928 |
|
8,235 |
|
8.4 |
% |
9.7 |
% |
5.4 |
% |
3.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
|
7,624 |
|
7,099 |
|
7.4 |
% |
7.4 |
% |
4.3 |
% |
|
|
Dialysis products |
|
609 |
|
614 |
|
-0.9 |
% |
-0.9 |
% |
-0.8 |
% |
|
|
Net dialysis care |
|
7,015 |
|
6,485 |
|
8.2 |
% |
8.2 |
% |
4.8 |
% |
3.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International |
|
3,843 |
|
3,619 |
|
6.2 |
% |
9.1 |
% |
5.3 |
% |
|
|
Dialysis products |
|
1,930 |
|
1,869 |
|
3.3 |
% |
3.4 |
% |
3.2 |
% |
|
|
Net dialysis care |
|
1,913 |
|
1,750 |
|
9.3 |
% |
15.2 |
% |
7.7 |
% |
4.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional development |
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
|
7,624 |
|
7,099 |
|
7.4 |
% |
7.4 |
% |
4.3 |
% |
|
|
Europe/Middle East/Africa |
|
2,306 |
|
2,213 |
|
4.2 |
% |
3.4 |
% |
3.3 |
% |
|
|
Latin America |
|
599 |
|
617 |
|
-3.0 |
% |
13.9 |
% |
12.0 |
% |
|
|
Asia-Pacific |
|
938 |
|
789 |
|
18.9 |
% |
21.5 |
% |
5.8 |
% |
|
|
Corporate |
|
44 |
|
25 |
|
78.2 |
% |
75.4 |
% |
|
|
|
|
1 same store growth = organic growth less price effects
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 or Constant Currency 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. Once we translate the local currency revenues for the Constant Currency, 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 Currency.
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 a companys revenue from period to period. However, we also believe that the usefulness of data on Constant Currency period-over-period changes is subject to limitations, particularly if the currency effects that are eliminated constitute a significant element of our revenue and 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.
Key figures product business
in US$ million, unaudited |
|
2014 |
|
2013 |
|
Change |
|
Change in cc |
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30 |
|
|
|
|
|
|
|
|
|
Total product revenue |
|
1,259 |
|
1,186 |
|
6.2 |
% |
6.7 |
% |
Less internal revenue |
|
(343 |
) |
(333 |
) |
3.1 |
% |
4.8 |
% |
Total external revenue |
|
916 |
|
853 |
|
7.4 |
% |
7.5 |
% |
|
|
|
|
|
|
|
|
|
|
North America |
|
432 |
|
422 |
|
2.3 |
% |
2.3 |
% |
Less internal revenue |
|
(220 |
) |
(210 |
) |
4.8 |
% |
4.8 |
% |
Total North America external revenue |
|
212 |
|
212 |
|
-0.2 |
% |
-0.2 |
% |
|
|
|
|
|
|
|
|
|
|
International |
|
810 |
|
755 |
|
7.2 |
% |
8.1 |
% |
Less internal revenue |
|
(123 |
) |
(122 |
) |
0.2 |
% |
4.9 |
% |
Total International external revenue |
|
687 |
|
633 |
|
8.5 |
% |
8.7 |
% |
|
|
|
|
|
|
|
|
|
|
Nine months ended September 30 |
|
|
|
|
|
|
|
|
|
Total product revenue |
|
3,578 |
|
3,461 |
|
3.4 |
% |
4.0 |
% |
Less internal revenue |
|
(995 |
) |
(953 |
) |
4.4 |
% |
6.4 |
% |
Total external revenue |
|
2,583 |
|
2,508 |
|
3.0 |
% |
3.1 |
% |
|
|
|
|
|
|
|
|
|
|
North America |
|
1,238 |
|
1,215 |
|
1.9 |
% |
1.9 |
% |
Less internal revenue |
|
(629 |
) |
(601 |
) |
4.8 |
% |
4.8 |
% |
Total North America external revenue |
|
609 |
|
614 |
|
-0.9 |
% |
-0.9 |
% |
|
|
|
|
|
|
|
|
|
|
International |
|
2,296 |
|
2,221 |
|
3.3 |
% |
4.3 |
% |
Less internal revenue |
|
(366 |
) |
(352 |
) |
3.6 |
% |
9.0 |
% |
Total International external revenue |
|
1,930 |
|
1,869 |
|
3.3 |
% |
3.4 |
% |
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 or Constant Currency 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. Once we translate the local currency revenues for the Constant Currency, 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 Currency.
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 a companys revenue from period to period. However, we also believe that the usefulness of data on Constant Currency period-over-period changes is subject to limitations, particularly if the currency effects that are eliminated constitute a significant element of our revenue and 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.
Key figures service business
|
|
Nine months ended September 30, 2014 |
| ||||||||||||
unaudited |
|
Clinics |
|
Growth |
|
De novos |
|
Patients |
|
Growth |
|
Treatments |
|
Growth |
|
Total |
|
3,349 |
|
4 |
% |
53 |
|
283,135 |
|
7 |
% |
31,526,484 |
|
5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
|
2,158 |
|
2 |
% |
33 |
|
174,335 |
|
3 |
% |
19,733,929 |
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International |
|
1,191 |
|
7 |
% |
20 |
|
108,800 |
|
12 |
% |
11,792,555 |
|
7 |
% |
Europe/Middle East/Africa |
|
636 |
|
1 |
% |
11 |
|
53,073 |
|
4 |
% |
6,001,091 |
|
4 |
% |
Latin America |
|
239 |
|
4 |
% |
3 |
|
30,563 |
|
7 |
% |
3,455,164 |
|
6 |
% |
Asia-Pacific |
|
316 |
|
25 |
% |
6 |
|
25,164 |
|
44 |
% |
2,336,300 |
|
18 |
% |
Quality data
|
|
North America |
|
Europe/Middle East/ |
|
Asia-Pacific |
| ||||||
in % of patients |
|
Q3 2014 |
|
Q2 2014 |
|
Q3 2014 |
|
Q2 2014 |
|
Q3 2014 |
|
Q2 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clinical Performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
Single Pool Kt/v > 1.2 |
|
97 |
|
97 |
|
95 |
|
96 |
|
97 |
|
97 |
|
No catheter (> 90 days) |
|
83 |
|
83 |
|
83 |
|
83 |
|
92 |
|
92 |
|
Hemoglobin = 10-12 g/dl |
|
73 |
|
74 |
|
75 |
|
76 |
|
59 |
|
59 |
|
Hemoglobin = 10-13 g/dl |
|
78 |
|
79 |
|
76 |
|
76 |
|
67 |
|
67 |
|
Albumin > 3.5 g/dl1) |
|
82 |
|
82 |
|
90 |
|
90 |
|
91 |
|
91 |
|
Phosphate < 5.5 mg/dl |
|
64 |
|
63 |
|
76 |
|
76 |
|
71 |
|
71 |
|
Calcium = 8.4-10.2 mg/dl |
|
84 |
|
84 |
|
75 |
|
73 |
|
75 |
|
74 |
|
Hospitalization days |
|
8.9 |
|
9.4 |
|
9.5 |
|
9.4 |
|
4.2 |
|
4.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demographics |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average age (in years) |
|
62 |
|
62 |
|
64 |
|
65 |
|
64 |
|
64 |
|
Average time on dialysis (in years) |
|
4.0 |
|
4.0 |
|
5.4 |
|
5.4 |
|
4.9 |
|
4.8 |
|
Average body weight (in kg) |
|
82 |
|
82 |
|
72 |
|
72 |
|
60 |
|
60 |
|
Prevalence of diabetes (in%) |
|
60 |
|
60 |
|
29 |
|
29 |
|
40 |
|
39 |
|
1) International standard BCR CRM470
CONTACT
Fresenius Medical Care AG & Co. KGaA
Investor Relations
61352 Bad Homburg v. d. H.
Germany
www.fmc-ag.com
Oliver Maier
Head of Investor Relations &
Corporate Communications
Tel. +49 6172 609 2601
Fax +49 6172 609 2301
email: ir@fmc-ag.com
Published by
Fresenius Medical Care AG & Co. KGaA
Investor Relations
Annual reports, interim reports and further
information on the company is also available on our website.
Please visit us at www.fmc-ag.com
For printed material, please contact Investor Relations.
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