0001104659-16-116857.txt : 20160503 0001104659-16-116857.hdr.sgml : 20160503 20160503060333 ACCESSION NUMBER: 0001104659-16-116857 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 6 CONFORMED PERIOD OF REPORT: 20160503 FILED AS OF DATE: 20160503 DATE AS OF CHANGE: 20160503 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: 161613507 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 a16-8776_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 May 2016

 

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 May 3, 2016 Fresenius Medical Care AG & Co. KGaA (the “Company”) issued an Investor News announcing its first quarter results for the period ending March 31, 2016. A copy of the Investor News is furnished as Exhibit 99.1 and the corresponding financial figures as Exhibit 99.2.

 

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 first quarter 2016 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 Exhibits 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 they 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: May 3, 2016

 

 

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 a16-8776_1ex99d1.htm EX-99.1

Exhibit 99.1

 

May 3, 2016

 

INVESTOR

 

NEWS

 

First quarter 2016

 

 



 

Fresenius Medical Care reports strong start to the year 2016

 

·                  Group revenue increased +6%, strong net income growth of +9%

 

·                  North America: revenue +10%, significant increase of operating income (EBIT) +28%

 

·                  Segments outside North America strongly influenced by currency

 

·                  Care Coordination with strong organic growth of +17%

 

·                  First quarter performance in line to achieve full year guidance

 

First quarter 2016 key figures:

 

Net revenue

 

$

4,205 million

 

+6

%

Operating income (EBIT)

 

$

540 million

 

+7

%

Net income1

 

$

228 million

 

+9

%

Basic earnings per share

 

$

0.75

 

+8

%

 

Rice Powell, Chief Executive Officer of Fresenius Medical Care stated: “We had a strong start to the year. Our core dialysis service and products business showed a very strong underlying growth globally. While our businesses outside the United States were largely influenced by currency, the North American market delivered a very satisfying result. In addition, Care Coordination continues to show strong topline growth. We are investing in our future growth in this area, but also expect the profitability to improve again in the course of the year. We are on track to achieve our full year guidance for 2016.”

 

Revenue & Earnings

 

Net revenue for the company improved by 6% and reached $4,205 million (+9% at constant currency), largely driven by strong Net Health Care revenue growth of +10% in North America. Net Health Care revenue contributed a 7% increase to $3,414 million, while product revenue grew 2% (6% at constant currency) to $791 million. Solid organic growth rates of 7% for Net Health Care as well as for the products business demonstrated a solid business performance. The development was primarily driven by higher revenue per treatment and more dialysis days.

 

Total operating income (EBIT) increased by 7% to $540 million (margin of 12.8%). This increase was driven by lower costs for Health Care supplies, a favorable impact from higher volume with commercial payors and further efficiency gains partially offset by higher personnel expense related to dialysis services in the North America segment, unfavourable foreign exchange effects in all segments outside North America as well as higher legal and consulting expenses.

 


 attributable to shareholders of Fresenius Medical Care AG & Co. KGaA

 

2



 

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the first quarter of 2016 was $228 million, a strong increase of 9% compared to $210 million of last year’s first quarter. Based on a number of approximately 305.3 million shares (weighted average number of shares outstanding), basic earnings per share (EPS) for the first three months 2016 amounted to $0.75, compared to $0.69 for the first quarter of 2015.

 

Segment development

 

North America revenue increased by 10% to $3,044 million (72% of total revenue). Dialysis business grew by 8%, Care Coordination increased by 20%. The continued progress in Care Coordination was driven by organic growth of +17% and reached $522 million in revenues. Dialysis growth was positively influenced by a higher volume  with commercial payors, two more dialysis days and increased product sales (especially machines and dialyzers).

 

The substantially improved dialysis operating income margin of 16.9% (+300 basis points compared to Q1 2015) was due to lower costs from Health Care supplies, a favourable impact from commercial payors as well as decreased legal expenses. Total operating income (EBIT) for the quarter under review was $436 million, an impressive increase of 28%. Total operating income margin improved to 14.3%.

 

EMEA revenue increased by 5% to $631 million at constant currency. Positive business movements from an increase in dialysis treatments were offset by the negative currency impact, especially due to the strong US Dollar. Also product revenue came in with a 5% plus at constant currency ($330 million) due to increased sales of bloodlines, products for acute care treatments and hemodialysis solutions and concentrates. Operating income of $130 million in Q1 2016 was negatively impacted mainly due to the weakening of various local currencies.

 

Asia Pacific grew by 10% at constant currency to $374 million. The region recorded $168 million in Net Health Care revenue, based on an increase of 6% in dialysis treatments. With a growth of +16% at constant currency to $206 million, the product business showed a very strong sales performance in dialysers, bloodlines, machines and peritoneal dialysis products. Operating income decreased to $65 million (-23%) and was impacted by unfavorable foreign exchange effects, increased costs related to further sales development, and costs associated with changes in the Management Board.

 

3



 

Latin America delivered revenue of $153 million, an improvement of 5% at constant currency (-23% on a reported basis). In addition to the negative currency impact, the business was mainly influenced by clinics sold in Venezuela in 2015. Dialysis treatments decreased accordingly by 6%. Product revenue decreased by 4% at constant currency to $40 million. Operating income was at $11 million, compared to $18 million in Q1 2015. Operating income margin decreased to 7.1% in Q1 2016 from 9.0% in Q1 2015 mainly due to higher costs related to inflation, unfavorable foreign exchange effects and an unfavorable impact from manufacturing production costs, partially offset by the impact from prior year lower margin dialysis service business in Venezuela which was subsequently divested in the third quarter of 2015.

 

Net interest expense in Q1 2016 was $105 million compared to $102 million in the first quarter of 2015. The slight increase is based on a lower interest income as a result of the repayment of interest bearing notes receivables. Income tax expense was $138 million for the first quarter of 2016, which translates into an effective tax rate of 31.8%, substantially lower than in Q1 2015 (34.3%). This was primarily driven by increased tax free income attributable to noncontrolling interest in the US and lower tax rates in other jurisdictions.

 

Cash flow

 

In the first quarter of 2016, the company generated $180 million in net cash provided by operating activities, representing 4% of revenue, compared to $447 million in last year’s Q1. The lower level was driven by an adjustment in invoicing within the quarter and the timing of cash payroll payments in the US. The number for DSO (days sales outstanding) increased accordingly to 74 days (71 days in Q1 2015).These timing effects will have no meaningful impact on the full year 2016.

 

Employees

 

As of March 31, 2016, Fresenius Medical Care had 104,687 employees (full-time equivalents) worldwide, compared to 101,543 employees at the end of March 2015. This increase was mainly attributable to our continued organic growth.

 

4



 

Outlook 2016 confirmed

 

Based on the positive Q1 business development, Fresenius Medical Care confirms its full year outlook 2016. The company expects a currency-adjusted revenue growth between +7% and +10% for 2016. Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to increase by +15% to +20% over the previous year.

 

Conference call

 

Fresenius Medical Care will hold a conference call to discuss the results of the first quarter 2016 on Tuesday, May 3, 2016 at 3.30 p.m. CEDT/ 9.30 a.m. EDT. The company invites investors to follow the live webcast of the call at the company’s website www.freseniusmedicalcare.com in the “Investors/Events” section. A replay will be available shortly after the call.

 

Please refer to our statement of earnings included at the end of this news and to the attachments as separate excel- and PDF-files for a complete overview of the results for the first quarter 2016.

 

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 2.8 million individuals worldwide. Through its network of 3,432 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatments for 294,043 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 visit the Company’s website at www.freseniusmedicalcare.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.

 

5



 

Statement of earnings

 

 

 

Three months ended
March 31

 

in US$ million, except share data, unaudited

 

2016

 

2015

 

Change

 

 

 

 

 

 

 

 

 

Health Care revenue

 

3,525

 

3,289

 

7.2

%

Less: patient service bad debt provision

 

111

 

107

 

3.7

%

Net Health Care revenue

 

3,414

 

3,182

 

7.3

%

Dialysis products revenue

 

791

 

778

 

1.7

%

Total net revenue

 

4,205

 

3,960

 

6.2

%

 

 

 

 

 

 

 

 

Costs of revenue

 

2,887

 

2,776

 

4.0

%

Gross profit

 

1,318

 

1,184

 

11.3

%

Selling, general and administrative

 

760

 

655

 

15.8

%

Research and development

 

37

 

31

 

21.1

%

Income from equity method investees

 

(19

)

(6

)

199.3

%

Operating income (EBIT)

 

540

 

504

 

7.1

%

 

 

 

 

 

 

 

 

Interest income

 

(11

)

(60

)

-81.5

%

Interest expense

 

116

 

162

 

-28.2

%

Interest expense, net

 

105

 

102

 

3.1

%

Income before taxes

 

435

 

402

 

8.1

%

Income tax expense

 

138

 

138

 

0.3

%

Net income

 

297

 

264

 

12.2

%

Less: Net income attributable to noncontrolling interests

 

69

 

54

 

25.1

%

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

 

228

 

210

 

8.8

%

 

 

 

 

 

 

 

 

Operating income (EBIT)

 

540

 

504

 

7.1

%

Depreciation and amortization

 

182

 

176

 

3.4

%

EBITDA

 

722

 

680

 

6.1

%

EBITDA margin

 

17.2

%

17.2

%

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares

 

305,325,185

 

303,683,075

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

0.75 €

 

0.69 €

 

8.2

%

Basic earnings per ADS

 

0.37 €

 

0.35 €

 

8.2

%

 

 

 

 

 

 

 

 

In percent of revenue

 

 

 

 

 

 

 

Costs of revenue

 

68.7

%

70.1

%

 

 

Gross profit

 

31.3

%

29.9

%

 

 

Operating income (EBIT)

 

12.8

%

12.7

%

 

 

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

 

5.4

%

5.3

%

 

 

 

6



 

CONTACT

 

Fresenius Medical Care AG & Co. KGaA

Investor Relations

 

61352 Bad Homburg v. d. H.

Germany

www.freseniusmedicalcare.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 are also available on our website.

Please visit us at www.freseniusmedicalcare.com

 

For printed material, please contact Investor Relations.

 


EX-99.2 3 a16-8776_1ex99d2.htm EX-99.2

Exhibit 99.2

 

 

Fresenius Medical Care AG & Co. KGaA

 

COMPLETE OVERVIEW OF THE RESULTS FOR THE FIRST QUARTER 2016

May 3, 2016

 


 

Investor Relations

phone: +49 6172 609 2525

fax: +49 6172 609 2301

email: ir@fmc-ag.com

 

Content:

 

Statement of earnings

 

page 1

 

 

 

Segment information

 

page 2

 

 

 

Balance Sheet

 

page 3

 

 

 

Cash flow

 

page 4

 

 

 

Revenue development

 

page 5

 

 

 

Key metrics

 

page 7

 

 

 

Quality data

 

page 9

 

 

 

Reconciliation

 

page 10

 

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.

 

 

Copyright by Fresenius Medical Care AG & Co. KGaA

 



 

Statement of earnings

 

 

 

Three months ended
March 31

 

in US$ million, except share data, unaudited

 

2016

 

2015

 

Change

 

 

 

 

 

 

 

 

 

Health Care revenue

 

3,525

 

3,289

 

7.2

%

Less: patient service bad debt provision

 

111

 

107

 

3.7

%

Net Health Care revenue

 

3,414

 

3,182

 

7.3

%

Dialysis products revenue

 

791

 

778

 

1.7

%

Total net revenue

 

4,205

 

3,960

 

6.2

%

 

 

 

 

 

 

 

 

Costs of revenue

 

2,887

 

2,776

 

4.0

%

Gross profit

 

1,318

 

1,184

 

11.3

%

Selling, general and administrative

 

760

 

655

 

15.8

%

Research and development

 

37

 

31

 

21.1

%

Income from equity method investees

 

(19

)

(6

)

199.3

%

Operating income (EBIT)

 

540

 

504

 

7.1

%

 

 

 

 

 

 

 

 

Interest income

 

(11

)

(60

)

-81.5

%

Interest expense

 

116

 

162

 

-28.2

%

Interest expense, net

 

105

 

102

 

3.1

%

Income before taxes

 

435

 

402

 

8.1

%

Income tax expense

 

138

 

138

 

0.3

%

Net income

 

297

 

264

 

12.2

%

Less: Net income attributable to noncontrolling interests

 

69

 

54

 

25.1

%

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

 

228

 

210

 

8.8

%

 

 

 

 

 

 

 

 

Operating income (EBIT)

 

540

 

504

 

7.1

%

Depreciation and amortization

 

182

 

176

 

3.4

%

EBITDA

 

722

 

680

 

6.1

%

EBITDA margin

 

17.2

%

17.2

%

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares

 

305,325,185

 

303,683,075

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

0.75 €

 

0.69 €

 

8.2

%

Basic earnings per ADS

 

0.37 €

 

0.35 €

 

8.2

%

 

 

 

 

 

 

 

 

In percent of revenue

 

 

 

 

 

 

 

Costs of revenue

 

68.7

%

70.1

%

 

 

Gross profit

 

31.3

%

29.9

%

 

 

Operating income (EBIT)

 

12.8

%

12.7

%

 

 

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

 

5.4

%

5.3

%

 

 

 

1



 

Segment information

 

 

 

Three months ended
March 31

 

unaudited

 

2016

 

2015

 

Change

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

Revenue in US$ million

 

4,205

 

3,960

 

6.2

%

Operating income (EBIT) in US$ million

 

540

 

504

 

7.1

%

Operating income margin in %

 

12.8

%

12.7

%

 

 

Delivered EBIT in US$ million

 

471

 

450

 

4.9

%

Days sales outstanding (DSO)

 

74

 

71

 

 

 

Employees (full-time equivalents)

 

104,687

 

101,543

 

 

 

 

 

 

 

 

 

 

 

North America

 

 

 

 

 

 

 

Revenue in US$ million

 

3,044

 

2,771

 

9.8

%

Operating income (EBIT) in US$ million

 

436

 

340

 

28.3

%

Operating income margin in %

 

14.3

%

12.3

%

 

 

Delivered EBIT in US$ million

 

370

 

288

 

28.6

%

Days sales outstanding (DSO)

 

60

 

52

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

 

 

 

 

 

Revenue per dialysis treatment in US$

 

348

 

341

 

1.8

%

Cost per dialysis treatment in US$

 

281

 

288

 

-2.4

%

 

 

 

 

 

 

 

 

International

 

 

 

 

 

 

 

Revenue in US$ million

 

1,158

 

1,180

 

-1.8

%

Operating income (EBIT) in US$ million

 

206

 

244

 

-15.5

%

Operating income margin in %

 

17.8

%

20.6

%

 

 

Delivered EBIT in US$ million

 

203

 

242

 

-15.6

%

Days sales outstanding (DSO)

 

110

 

114

 

 

 

 

 

 

 

 

 

 

 

EMEA

 

 

 

 

 

 

 

Revenue in US$ million

 

631

 

629

 

0.3

%

Operating income (EBIT) in US$ million

 

130

 

141

 

-8.1

%

Operating income margin in %

 

20.6

%

22.5

%

 

 

Delivered EBIT in US$ million

 

129

 

141

 

-8.1

%

Days sales outstanding (DSO)

 

104

 

110

 

 

 

 

 

 

 

 

 

 

 

Asia-Pacific

 

 

 

 

 

 

 

Revenue in US$ million

 

374

 

353

 

6.0

%

Operating income (EBIT) in US$ million

 

65

 

85

 

-23.0

%

Operating income margin in %

 

17.4

%

23.9

%

 

 

Delivered EBIT in US$ million

 

63

 

83

 

-23.2

%

Days sales outstanding (DSO)

 

104

 

112

 

 

 

 

 

 

 

 

 

 

 

Latin America

 

 

 

 

 

 

 

Revenue in US$ million

 

153

 

198

 

-22.6

%

Operating income (EBIT) in US$ million

 

11

 

18

 

-39.1

%

Operating income margin in %

 

7.1

%

9.0

%

 

 

Delivered EBIT in US$ million

 

11

 

18

 

-39.2

%

Days sales outstanding (DSO)

 

148

 

133

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

 

Revenue in US$ million

 

3

 

9

 

-62.8

%

Operating income (EBIT) in US$ million

 

(102

)

(80

)

28.6

%

Delivered EBIT in US$ million

 

(102

)

(80

)

28.5

%

 

2



 

Balance sheet

 

 

 

March 31

 

December 31

 

in US$ million, except debt/EBITDA ratio

 

2016

 

2015

 

 

 

(unaudited)

 

(audited)

 

Assets

 

 

 

 

 

Current assets

 

7,147

 

6,768

 

Goodwill and Intangible assets

 

13,984

 

13,863

 

Other non-current assets

 

4,936

 

4,734

 

Total assets

 

26,067

 

25,365

 

 

 

 

 

 

 

Liabilities and equity

 

 

 

 

 

Current liabilities

 

4,448

 

4,149

 

Long-term liabilities

 

9,723

 

9,692

 

Noncontrolling interests subject to put provisions and other temporary equity

 

1,088

 

1,028

 

Total equity

 

10,808

 

10,496

 

Total liabilities and equity

 

26,067

 

25,365

 

 

 

 

 

 

 

Equity/assets ratio

 

41

%

41

%

 

 

 

 

 

 

Debt

 

 

 

 

 

Short-term debt

 

349

 

109

 

Short-term debt from related parties

 

64

 

19

 

Current portion of long-term debt and capital lease obligations

 

678

 

664

 

Long-term debt and capital lease obligations, less current portion

 

7,848

 

7,854

 

Total debt

 

8,939

 

8,646

 

 

 

 

 

 

 

Debt/EBITDA ratio

 

2.8

 

2.8

 

 

In accordance with ASU 2015-17 (Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes) as of December 31, 2015 deferred taxes previously recorded in current assets and liabilities have been reclassified to noncurrent assets and liabilities in the amount of US$216 million and US$36 million, respectively.  As a result of deferred tax netting, noncurrent assets and liabilities were then adjusted in the amount of US$168 million.

 

3



 

Cash flow statement

 

 

 

Three months ended
March 31

 

in US$ million, unaudited

 

2016

 

2015

 

Operating activities

 

 

 

 

 

Net income

 

297

 

264

 

Depreciation / amortization

 

182

 

176

 

Change in working capital and other non-cash items

 

(299

)

7

 

Net cash provided by operating activities

 

180

 

447

 

In percent of revenue

 

4.3

%

11.3

%

 

 

 

 

 

 

Investing activities

 

 

 

 

 

Purchases of property, plant and equipment

 

(250

)

(201

)

Proceeds from sale of property, plant and equipment

 

4

 

4

 

Capital expenditures, net

 

(246

)

(197

)

 

 

 

 

 

 

Free cash flow

 

(66

)

250

 

In percent of revenue

 

-1.6

%

6.3

%

 

 

 

 

 

 

Acquisitions and investments, net of cash acquired, and purchases of intangible assets

 

(91

)

(22

)

Proceeds from divestitures

 

 

11

 

Acquisitions and investments, net of divestitures

 

(91

)

(11

)

Free cash flow after investing activities

 

(157

)

239

 

 

4



 

Revenue development

 

in US$ million, unaudited

 

2016

 

2015

 

Change

 

Change
at cc

 

Organic
growth

 

Same market
treatment
growth
1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended March 31

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

4,205

 

3,960

 

6.2

%

8.7

%

7.3

%

 

 

Net Health Care

 

3,414

 

3,182

 

7.3

%

9.3

%

7.3

%

4.0

%

Dialysis products

 

791

 

778

 

1.7

%

6.5

%

6.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

3,044

 

2,771

 

9.8

%

9.8

%

7.4

%

 

 

Net Health Care

 

2,832

 

2,571

 

10.1

%

10.1

%

7.5

%

4.0

%

Thereof Net Care Coordination revenue

 

522

 

434

 

20.2

%

20.2

%

16.9

%

 

 

Thereof Net Dialysis Care revenue

 

2,310

 

2,137

 

8.1

%

8.1

%

5.6

%

4.0

%

Dialysis products

 

212

 

200

 

5.8

%

5.8

%

6.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

1,158

 

1,180

 

-1.8

%

6.7

%

7.4

%

 

 

Net Health Care

 

582

 

611

 

-4.7

%

5.7

%

6.6

%

4.0

%

Dialysis products

 

576

 

569

 

1.3

%

7.7

%

8.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EMEA

 

631

 

629

 

0.3

%

5.2

%

4.3

%

 

 

Net Health Care

 

301

 

301

 

0.0

%

5.8

%

3.5

%

3.8

%

Dialysis products

 

330

 

328

 

0.5

%

4.6

%

5.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asia-Pacific

 

374

 

353

 

6.0

%

10.1

%

10.8

%

 

 

Net Health Care

 

168

 

164

 

2.5

%

2.8

%

4.2

%

6.7

%

Dialysis products

 

206

 

189

 

9.1

%

16.4

%

16.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Latin America

 

153

 

198

 

-22.6

%

5.4

%

11.6

%

 

 

Net Health Care

 

113

 

146

 

-22.5

%

8.7

%

16.1

%

2.2

%

Dialysis products

 

40

 

52

 

-22.7

%

-4.0

%

-0.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

3

 

9

 

-62.8

%

-62.0

%

 

 

 

 

 


1 same market treatment 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.

 

5



 

Additional information North America Segment

 

 

 

Three months ended
March 31

 

unaudited

 

2016

 

2015

 

Change

 

 

 

 

 

 

 

 

 

Care Coordination

 

 

 

 

 

 

 

Net revenue in US$ million

 

522

 

434

 

20.2

%

Operating income (EBIT) in US$ million

 

10

 

15

 

-33.0

%

Operating income margin in %

 

2.0

%

3.5

%

 

 

Delivered EBIT in US$ million

 

2

 

6

 

-72.0

%

 

 

 

 

 

 

 

 

Dialysis

 

 

 

 

 

 

 

Net revenue in US$ million

 

2,522

 

2,337

 

7.9

%

Operating income (EBIT) in US$ million

 

426

 

325

 

31.2

%

Operating income margin in %

 

16.9

%

13.9

%

 

 

Delivered EBIT in US$ million

 

368

 

282

 

30.7

%

 

6



 

Key metrics Care Coordination

 

 

 

Three months ended
March 31

 

unaudited

 

2016

 

2015

 

Growth in %

 

North America

 

 

 

 

 

 

 

Member months under medical cost management1)

 

93,825

 

4,305

 

2079

%

Medical cost under management (in US$ million)1)

 

723

 

30

 

2282

%

Care Coordination patient encounters

 

1,307,076

 

1,272,047

 

3

%

 


1) The 2016 metrics may be understated due to a physician mapping issue related to the BPCI program within a CMS system which has not yet been resolved. Additionally, data presented for the metrics are subject to finalization by CMS, which may result in changes from previously reported metrics.

 

7



 

Key metrics Dialysis Care Services

 

 

 

Three months ended March 31, 2016

 

unaudited

 

Clinics

 

Growth
in %

 

De novos

 

Patients

 

Growth
in %

 

Treatments

 

Growth
in %

 

Total

 

3,432

 

1

%

22

 

294,043

 

2

%

11,273,342

 

5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

2,224

 

2

%

10

 

182,808

 

3

%

7,053,114

 

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EMEA

 

658

 

2

%

4

 

55,197

 

5

%

2,095,610

 

5

%

Asia-Pacific

 

323

 

2

%

6

 

26,713

 

4

%

970,296

 

6

%

Latin America

 

227

 

-8

%

2

 

29,325

 

-8

%

1,154,322

 

-6

%

 

8



 

Quality data

 

 

 

North America

 

EMEA

 

Latin America

 

Asia-Pacific

 

in % of patients

 

Q1 2016

 

Q4 2015

 

Q1 2016

 

Q4 2015

 

Q1 2016

 

Q4 2015

 

Q1 2016

 

Q4 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Clinical Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Single Pool Kt/v > 1.2

 

98

 

98

 

96

 

96

 

92

 

92

 

97

 

97

 

No catheter (> 90 days)

 

85

 

84

 

82

 

82

 

82

 

83

 

91

 

91

 

Hemoglobin = 10-12 g/dl

 

72

 

72

 

78

 

77

 

52

 

52

 

58

 

60

 

Hemoglobin = 10-13 g/dl

 

77

 

78

 

77

 

77

 

68

 

69

 

66

 

68

 

Albumin > 3.5 g/dl1)

 

82

 

81

 

91

 

92

 

90

 

90

 

89

 

89

 

Phosphate < 5.5 mg/dl

 

64

 

64

 

78

 

79

 

75

 

75

 

70

 

72

 

Calcium = 8.4-10.2 mg/dl

 

84

 

84

 

74

 

77

 

76

 

75

 

74

 

75

 

Hospitalization days2)

 

10.0

 

10.0

 

9.4

 

9.4

 

3.5

 

3.5

 

4.3

 

4.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demographics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average age (in years)

 

62

 

62

 

64

 

64

 

59

 

58

 

64

 

64

 

Average time on dialysis (in years)

 

3.9

 

4.0

 

5.6

 

5.6

 

5.1

 

5.0

 

5.0

 

5.0

 

Average body weight (in kg)

 

83

 

82

 

73

 

72

 

68

 

68

 

61

 

60

 

Prevalence of diabetes (in%)

 

61

 

61

 

31

 

31

 

25

 

25

 

41

 

41

 

 


1) International standard BCR CRM470

 

9



 

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

 

 

 

Three months ended
March 31

 

in US$ million, unaudited

 

2016

 

2015

 

Delivered EBIT reconciliation

 

 

 

 

 

Total

 

 

 

 

 

Operating income (EBIT)

 

540

 

504

 

less noncontrolling interests

 

(69

)

(54

)

Delivered EBIT

 

471

 

450

 

 

 

 

 

 

 

North America

 

 

 

 

 

Operating income (EBIT)

 

436

 

340

 

less noncontrolling interests

 

(66

)

(52

)

Delivered EBIT

 

370

 

288

 

 

 

 

 

 

 

Care Coordination

 

 

 

 

 

Operating income (EBIT)

 

10

 

15

 

less noncontrolling interests

 

(8

)

(9

)

Delivered EBIT

 

2

 

6

 

 

 

 

 

 

 

Dialysis

 

 

 

 

 

Operating income (EBIT)

 

426

 

325

 

less noncontrolling interests

 

(58

)

(43

)

Delivered EBIT

 

368

 

282

 

 

 

 

 

 

 

International

 

 

 

 

 

Operating income (EBIT)

 

206

 

244

 

less noncontrolling interests

 

(3

)

(2

)

Delivered EBIT

 

203

 

242

 

 

 

 

 

 

 

EMEA

 

 

 

 

 

Operating income (EBIT)

 

130

 

141

 

less noncontrolling interests

 

(1

)

 

Delivered EBIT

 

129

 

141

 

 

 

 

 

 

 

Asia-Pacific

 

 

 

 

 

Operating income (EBIT)

 

65

 

85

 

less noncontrolling interests

 

(2

)

(2

)

Delivered EBIT

 

63

 

83

 

 

 

 

 

 

 

Latin America

 

 

 

 

 

Operating income (EBIT)

 

11

 

18

 

less noncontrolling interests

 

 

 

Delivered EBIT

 

11

 

18

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

Operating income (EBIT)

 

(102

)

(80

)

less noncontrolling interests

 

 

 

Delivered EBIT

 

(102

)

(80

)

 

 

 

 

 

 

Reconciliation of net cash provided by operating activities to EBITDA1)

 

 

 

 

 

Total EBITDA

 

722

 

680

 

Interest expense, net

 

(105

)

(102

)

Income tax expense

 

(138

)

(138

)

Change in working capital and other non-cash items

 

(299

)

7

 

Net cash provided by operating activities

 

180

 

447

 

 

 

 

 

 

 

Annualized EBITDA2)

 

 

 

 

 

Operating income (EBIT)

 

2,363

 

2,373

 

Depreciation and amortization

 

723

 

719

 

Non-cash charges

 

84

 

62

 

Annualized EBITDA

 

3,170

 

3,154

 

 


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

2) EBITDA: including largest acquisitions.

 

10


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