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 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 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 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 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 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 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.
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 | |
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.
1 attributable to shareholders of Fresenius Medical Care AG & Co. KGaA
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 years 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.
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 years 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.
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 companys 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 worlds 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 worlds leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products.
For more information visit the Companys 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. 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
|
|
Three months ended |
| ||||
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 |
% |
|
|
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.
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:
|
page 1 | |
|
|
|
|
page 2 | |
|
|
|
|
page 3 | |
|
|
|
|
page 4 | |
|
|
|
|
page 5 | |
|
|
|
|
page 7 | |
|
|
|
|
page 9 | |
|
|
|
|
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. 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.
Copyright by Fresenius Medical Care AG & Co. KGaA
|
|
Three months ended |
| ||||
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 |
% |
|
|
|
|
Three months ended |
| ||||
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 |
% |
|
|
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$168 million.
|
|
Three months ended |
| ||
in US$ 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 |
|
in US$ million, unaudited |
|
2016 |
|
2015 |
|
Change |
|
Change |
|
Organic |
|
Same market |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 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.
Additional information North America Segment
|
|
Three months ended |
| ||||
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 |
% |
|
|
Three months ended |
| ||||
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.
Key metrics Dialysis Care Services
|
|
Three months ended March 31, 2016 |
| ||||||||||||
unaudited |
|
Clinics |
|
Growth |
|
De novos |
|
Patients |
|
Growth |
|
Treatments |
|
Growth |
|
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 |
% |
|
|
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
Reconciliation of non U.S. GAAP financial measures to the most directly comparable U.S. GAAP financial measures
|
|
Three months ended |
| ||
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 Cares long-term debt instruments.
2) EBITDA: including largest acquisitions.
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