0001104659-14-076158.txt : 20141104 0001104659-14-076158.hdr.sgml : 20141104 20141104061530 ACCESSION NUMBER: 0001104659-14-076158 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20141104 FILED AS OF DATE: 20141104 DATE AS OF CHANGE: 20141104 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Fresenius Medical Care AG & Co. KGaA CENTRAL INDEX KEY: 0001333141 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MISC HEALTH & ALLIED SERVICES, NEC [8090] IRS NUMBER: 000000000 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-32749 FILM NUMBER: 141190993 BUSINESS ADDRESS: STREET 1: ELSE-KROENER STRASSE 1 CITY: BAD HOMBURG STATE: 2M ZIP: 61352 BUSINESS PHONE: 011-49-6172-6090 MAIL ADDRESS: STREET 1: ELSE-KROENER STRASSE 1 CITY: BAD HOMBURG STATE: 2M ZIP: 61352 6-K 1 a14-23116_16k.htm 6-K

 

 

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 registrant’s 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 company’s 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 user’s 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.

 

2



 

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

 

 

 

 

FRESENIUS MEDICAL CARE AG & Co. KGaA,

 

a partnership limited by shares, represented by:

 

 

 

FRESENIUS MEDICAL CARE MANAGEMENT AG, its

 

General Partner

 

 

 

 

 

By:

/s/ RICE POWELL

 

 

Name:

Rice Powell

 

 

Title:

Chief Executive Officer and

 

 

 

Chairman of the Management Board

 

 

 

of the General Partner

 

 

 

 

 

 

 

By:

/s/ MICHAEL BROSNAN

 

 

Name:

Michael Brosnan

 

 

Title:

Chief Financial Officer and

 

 

 

Member of the Management Board

 

 

 

of the General Partner

 

3


EX-99.1 2 a14-23116_1ex99d1.htm EX-99.1

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

 

GRAPHIC

 



 

·                  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

 

2



 

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.

 

3



 

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%.

 

4



 

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.

 

5



 

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 company’s performance over a multi-year period.

 

6



 

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 company’s website www.fmc-ag.com in the “Investor Relations” section. A replay will be available shortly after the call.

 

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 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 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.

 

7



 

Statement of earnings

 

 

 

Three months ended
 September 30

 

Nine months ended
 September 30

 

in US$ million, except share data, unaudited

 

2014

 

2013

 

Change

 

2014

 

2013

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dialysis care revenue

 

3,277

 

2,887

 

13.5

%

9,136

 

8,440

 

8.2

%

Less: patient service bad debt provision

 

80

 

74

 

8.5

%

208

 

205

 

1.3

%

Net dialysis care revenue

 

3,197

 

2,813

 

13.6

%

8,928

 

8,235

 

8.4

%

Dialysis products revenue

 

916

 

853

 

7.4

%

2,583

 

2,508

 

3.0

%

Total net revenue

 

4,113

 

3,666

 

12.2

%

11,511

 

10,743

 

7.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs of revenue

 

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

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

1.5

%

EBITDA margin

 

18.7

%

19.7

%

 

 

18.3

%

19.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares

 

 

 

 

 

 

 

 

 

 

 

 

 

Ordinary shares

 

302,711,512

 

301,310,149

 

 

 

301,999,288

 

302,158,886

 

 

 

Preference shares

 

 

 

 

 

 

2,590,857

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

1.25

 

-5.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In percent of revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

68.7

%

68.1

%

 

 

68.9

%

68.0

%

 

 

Gross profit

 

31.3

%

31.9

%

 

 

31.1

%

32.0

%

 

 

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

%

 

 

 

8



 

Segment and other information

 

 

 

Three months ended
 September 30

 

Nine months ended
 September 30

 

unaudited

 

2014

 

2013

 

Change

 

2014

 

2013

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 year’s presentation.

 

9



 

Reconciliation of non U.S. GAAP financial measures to the most directly comparable U.S. GAAP financial measures

 

 

 

Three months ended
 September 30

 

Nine months ended
 September 30

 

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 year’s presentation.

2) EBITDA is the basis for determining compliance with certain covenants in Fresenius Medical Care’s long-term debt instruments.

3) EBITDA 2014: Pro forma numbers including Sound Inpatient Physicians Inc..

 

10



 

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

 

 

11



 

Cash flow statement

 

 

 

Three months ended
 September 30

 

Nine months ended
 September 30

 

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

 

 

12



 

Revenue development

 

in US$ million, unaudited

 

2014

 

2013

 

Change

 

Change
 in cc

 

Organic
growth

 

Same store
growth
1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 company’s 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.

 

13



 

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 company’s 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.

 

14



 

Key figures service business

 

 

 

 

Nine months ended September 30, 2014

 

unaudited

 

Clinics

 

Growth
in %

 

De novos

 

Patients

 

Growth
in %

 

Treatments

 

Growth
in %

 

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/
Africa

 

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

 

15



 

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

 

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16


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