| Investor News | Oliver Maier |
| | Head of Investor Relations |
| | |
| | Fresenius Medical Care |
| | Else-Kröner-Straße 1 |
| | 61352 Bad Homburg |
| | Germany |
| | T +49 6172 609-2601 |
| | F +49 6172 609-2301 |
| | oliver.maier@fmc-ag.com |
| | www.fmc-ag.com |
May 3, 2012
Fresenius Medical Care Reports Excellent First Quarter 2012 Results And Confirms Guidance For Full Year 2012
1st Quarter 2012 Summary:
| Net revenue | | | $3,249 million | | | +9% |
| Operating income (EBIT) | | | $503 million | | | +13% |
| Net income * | | | $370 million | | | +68% |
| Earnings per share | | | $1.22 | | | +67% |
| | | | | | | |
| Earnings excluding investment gain: | | | | |
| Net income * | | | $244 million | | | +10% |
| Earnings per share | | | $0.80 | | | +10% |
Bad Homburg, Germany –Fresenius Medical Care AG & Co. KGaA (the “company” or “Fresenius Medical Care”; Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS), the world’s largest provider of dialysis products and services, today announced its results for the first quarter of 2012.
*Attributable to shareholders of Fresenius Medical Care AG & Co. KGaA
Revenue
Net revenue for the first quarter of 2012increased by 9%to$3,249 million(+10% at constant currency) compared to the first quarter of 2011. Organic revenue growth worldwide was 3%. Dialysis services revenue grew by 11% to $2,478 million (+12% at constant currency) and dialysis product revenue increased by 3% to $771 million (+5% at constant currency).
North Americarevenuefor the first quarter of2012 increased by 9% to $2,105 million. Dialysis services revenue grew by 11% to $1,918 million with a same market growth of 3%. Average revenue per treatment for U.S. clinics increased to $353 in the first quarter of 2012 compared to $348 for the corresponding quarter in 2011. Dialysis product revenue decreasedby 4% to $187 million mainly as a result of lower pricing of renal pharmaceuticals.
Internationalrevenue increased by 8% to $1,136 million (+ 12% at constant currency). Organic revenue growth was 6%. Dialysis services revenue increased by 11% to $560 million (+16%at constant currency). Dialysis product revenue increased by 4% to $576 million and increased by 8% at constant currency, mainly driven by higher sales of dialysis machines.
Earnings
Operating income (EBIT)for the first quarter of 2012 increased by 13% to $503 million compared to $445 million in the first quarter of 2011. This resulted in an operating margin of 15.5% for the first quarter of 2012 compared to 14.9% for the corresponding quarter in 2011.
In North America, the operating margin increased from 16.2% to 16.5%. The increase in Medicare rates and the growth of our expanded services contributed favorably to this development. Average costs per treatment for U.S. clinics decreased to $286 in the first quarter of 2012 compared to $288 for the corresponding quarter in 2011.
In the International segment, the operating margin increased from 16.2% to 17.2%, mainly due to favorable exchange rate effects.
Net interest expense for the first quarter of 2012 was$99 million, compared to $72 million in the first quarter of 2011. This development was mainly attributable to the higher level of financial debt as a result of the issuance of various tranches of senior notes over the course of 2011 and 2012.
Net incomeattributable to shareholders of Fresenius Medical Care AG & Co. KGaAfor the first quarter of 2012 was $370 million, an increase of 68% compared to the corresponding quarter of 2011. This includes a non-taxable investment gain of $127 million related to the acquisition of Liberty Dialysis Holdings, Inc., including its 51% stake in Renal Advantage Partners, LLC (RAI). The gain is a result of measuring the 49% equity interest in RAI held by the company at its fair value at the time of the Liberty acquisition and is subject to the finalization of the Liberty purchase accounting. Excluding this investment gain net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA increased by 10% to $244 million.
Income tax expense was $137 million for the first quarter of 2012 compared to $124 million in the first quarter of 2011. The effectivetax rate decreased to 25.8% from 33.3% driven by the non-taxable investment gain. Excluding the investment gain the effective tax rate was 33.9%.
Earnings per ordinary share (EPS) for the first quarter 2012 was $1.22 and $0.80 if excluding the investment gain. This represents an increase compared to the first quarter of 2011 of 67% and 10%, respectively. The weighted average number of shares outstanding for the first quarter of 2012 was approximately 304.2 million shares,compared to 302.3 million shares for the first quarter of 2011.The increase in shares outstanding resulted from stock option exercises in the past 12 months.
Cash flow
In the first quarter of 2012, the company generated $481 million incash from operations, an increase of 174% compared to the corresponding figure last year and representing approximately 14.8% of revenue. The cash flow generation was supported by a favorable development of DSO and inventory levels as well as lower income tax payments.
A total of $122 million was spent forcapital expenditures, net of disposals.Free cash flow before acquisitions was $359 million compared to $62 million in the first quarter of 2011. A total of $1,526 million in cash was spent foracquisitions and investments,net of divestitures.Free cash flow after acquisitions and divestitures was minus $1,167 million, compared to minus $277 million in the first quarter of 2011.
Please refer to the attachments for a complete overview on the first quarter of 2012 and the reconciliation of non-GAAP financial measures included in this release to the most comparable GAAP financial measures.
Patients – Clinics – Treatments
As of March 31, 2012, Fresenius Medical Care treated 253,041patients worldwide, which represents a 17% increase compared to the previous year’s figure. North America provided dialysis treatments for 161,656 patients, an increase of 17%. Including 21 clinics managed by Fresenius Medical Care North America, the number of patients in North America was 163,261. The International segment provided dialysis treatment to 91,385 patients, an increase of 16% over the prior year’s figure.
As of March 31, 2012, the company operated a total of 3,119clinics worldwide, which represents a 13% increase compared to the previous year’s figure. The number of clinics is comprised of 2,053 clinics in North America (2,074 including managed clinics), and 1,066 clinics in the International segment, representing an increase of 13% and 13%, respectively.
During the first quarter of 2012, Fresenius Medical Care delivered approximately 9.21 million dialysistreatments worldwide. This represents an increase of 13%, compared to last year’s figure. North America accounted for 5.75 million treatments, an increase of 10%. The International segment delivered 3.47 million treatments, an increase of 18%.
Employees
As of March 31, 2012, Fresenius Medical Care had 82,979 employees (full-time equivalents) worldwide, compared to 79,159 employees at the end of 2011. This increase of more than 3,800 employees is due to overall growth in the company’s business and acquisitions including Liberty Dialysis Holdings, Inc.
Debt/EBITDA ratio
The ratio of debt to Earnings before interest, taxes, depreciation and amortization (EBITDA) increased from 2.55 at the end of the first quarter of 2011 to 2.96 at the end of the first quarter of 2012. The debt/EBITDA ratio at the end of 2011 was 2.69.
Rating
In February Standard & Poor’s Ratings Services upgraded the company’s corporate credit to ‘BB+’ from ‘BB’. The agency also raised the ratings of Fresenius Medical Care’s various unsecured senior notes to ‘BB+’ from ‘BB’. The rating of ‘BBB-’ on Fresenius Medical Care’s senior secured credit facilities was affirmed. A stable outlook has been assigned to all ratings. Moody’s rates the company’s corporate credit as ‘Ba1’ with a ‘stable’ outlook, and Fitch rates the company’s corporate credit as ‘BB+’ with a ‘stable’ outlook. For further information on Fresenius Medical Care’s credit ratings, maturity profiles and credit instruments, please visit our website at www.fmc-ag.com / Investor Relations / Credit Relations.
Announcement of Management Board Change
On March 9, 2012, Fresenius Medical Care announced a change in the Management Board. Rice Powell will succeed Dr. Ben J. Lipps as CEO of Fresenius Medical Care AG & Co. KGaA and Chairman of the Management Board, effective January 1, 2013. The appointment of Rice Powell is part of the company’s succession plan to ensure a smooth transition of leadership. Ben Lipps was appointed Chief Executive Officer and Chairman of the Management Board in 1999. In recognition of his extraordinary achievements and unique expertise Dr. Ben J. Lipps has been appointed Honorary Chairman of the supervisory boards of Fresenius Medical Care AG & Co. KGaA and the Fresenius Medical Care Management AG, effective January 1, 2013.
Closing of the acquisition of Liberty Dialysis Holdings
Fresenius Medical Care North America has closed the acquisition of Liberty Dialysis Holdings, Inc., the holding company of Liberty Dialysis and Renal Advantage effective February 28, 2012. The closing followed the completion of the review of the transaction and issuance of a consent decree by the United States’ Federal Trade Commission. In connection with the consent decree, Fresenius Medical Care completed the sale of 44 clinics to Dialysis Newco, Inc. (“DSI Renal”). The acquisition of Liberty Dialysis Holdings Inc. is expected to add annual revenues of around $ 700 million and 201 clinics to Fresenius Medical Care’s network for an investment, net of proceeds from the divestiture, of approximately $1.5 billion.
Sales and earnings outlook for 2012 confirmed
For the full year 2012, the company confirms its sales and earnings outlook.
The company expectsrevenue to grow to around $14 billion in 2012.
Net incomeis expected to grow to around $1.3 billion and net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to grow to around $1.14 billion. This does not include the investment gain in the amount of approximately $ 127 million in the first quarter of 2012.
For 2012, the company expects to spend around $700 million oncapital expendituresand around $1.8 billion onacquisitions.Thedebt/EBITDA ratiois expected to bebelow 3.0 by the end of 2012.
“Our first quarter results show an excellent start for the year with both the North American as well as the International segment continuing their strong operating performance. On this basis we clearly confirm our previous guidance for the full year 2012 expecting another record year in terms of revenue and earnings”, said Ben Lipps, chief executive officer of Fresenius Medical Care. “We have made very good progress on our growth initiatives globally and successfully closed the acquisition of Liberty Dialysis during the first quarter of 2012. With our global base we continue to be well positioned for the continuing success of our business.”
Conference call
Fresenius Medical Care will hold a conference call to discuss the results of the first quarter of 2012 on Thursday, May 3, 2012, at 3:30 p.m. CEDT / 9:30 a.m. EDT. The company invites investors to view the live webcast of the call at the company’s websitewww.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 2.1 million individuals worldwide. Through its network of 3,119 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to 253,041 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 atwww.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.
| Fresenius Medical Care | | Three Months Ended | | |
| Statement of Earnings | | March 31, | | |
| (in US-$ thousands, except share data) | | 2012 | | 2011 | | % Change |
| (unaudited) | | | | | | |
| | | | | | | |
| Revenue | | | | | | | | | | | | |
| Dialysis care | | | 2,544,059 | | | | 2,285,316 | | | | 11.3 | % |
| Less: patient service bad debt provision | | | 66,859 | | | | 52,537 | | | | 27.3 | % |
| Net dialysis care | | | 2,477,200 | | | | 2,232,779 | | | | 10.9 | % |
| Dialysis products | | | 771,555 | | | | 751,072 | | | | 2.7 | % |
| Total net revenue | | | 3,248,755 | | | | 2,983,851 | | | | 8.9 | % |
| | | | | | | | | | | | | |
| Cost of revenue | | | 2,179,246 | | | | 2,035,964 | | | | 7.0 | % |
| Gross profit | | | 1,069,509 | | | | 947,887 | | | | 12.8 | % |
| | | | | | | | | | | | | |
| Selling, general and administrative | | | 552,832 | | | | 484,236 | | | | 14.2 | % |
| Gain on sale of dialysis clinics | | | (9,314 | ) | | | — | | | | | |
| Research and development | | | 28,522 | | | | 26,149 | | | | 9.1 | % |
| Income from equity method investees | | | (5,497 | ) | | | (7,582 | ) | | | -27.5 | % |
| Operating income (EBIT) | | | 502,966 | | | | 445,084 | | | | 13.0 | % |
| Investment gain | | | (126,685 | ) | | | — | | | | | |
| Interest income | | | (20,306 | ) | | | (10,421 | ) | | | 94.9 | % |
| Interest expense | | | 119,186 | | | | 81,986 | | | | 45.4 | % |
| Interest expense, net | | | 98,880 | | | | 71,565 | | | | 38.2 | % |
| Income before taxes | | | 530,771 | | | | 373,519 | | | | 42.1 | % |
| Income tax expense | | | 137,077 | | | | 124,404 | | | | 10.2 | % |
| Net income | | | 393,694 | | | | 249,115 | | | | 58.0 | % |
| Less: Net income attributable to noncontrolling interests | | | 23,196 | | | | 28,414 | | | | -18.4 | % |
| Net income attributable to shareholders of FMC AG & Co. KGaA | | | 370,498 | | | | 220,701 | | | | 67.9 | % |
| | | | | | | | | | | | | |
| Operating income (EBIT) | | | 502,966 | | | | 445,084 | | | | 13.0 | % |
| | | | | | | | | | | | | |
| Depreciation and amortization | | | 143,374 | | | | 135,984 | | | | 5.4 | % |
| EBITDA | | | 646,340 | | | | 581,068 | | | | 11.2 | % |
| | | | | | | | | | | | | |
| Earnings per ordinary share | | $ | 1.22 | | | $ | 0.73 | | | | 66.8 | % |
| Earnings per ordinary ADS | | $ | 1.22 | | | $ | 0.73 | | | | 66.8 | % |
| | | | | | | | | | | | | |
| Weighted average number of shares | | | | | | | | | | | | |
| Ordinary shares | | | 300,205,126 | | | | 298,292,972 | | | | | |
| Preference shares | | | 3,966,001 | | | | 3,957,435 | | | | | |
| | | | | | | | | | | | | |
| In percent of revenue | | | | | | | | | | | | |
| Cost of revenue | | | 67.1 | % | | | 68.2 | % | | | | |
| Gross profit | | | 32.9 | % | | | 31.8 | % | | | | |
| Selling, general and administrative | | | 17.0 | % | | | 16.2 | % | | | | |
| Gain on sale of dialysis clinics | | | -0.3 | % | | | — | | | | | |
| Research and development | | | 0.9 | % | | | 0.9 | % | | | | |
| Income from equity method investees | | | -0.2 | % | | | -0.3 | % | | | | |
| Operating income (EBIT) | | | 15.5 | % | | | 14.9 | % | | | | |
| Investment gain | | | -3.9 | % | | | | | | | | |
| Interest expense, net | | | 3.0 | % | | | 2.4 | % | | | | |
| Income before taxes | | | 16.3 | % | | | 12.5 | % | | | | |
| Income tax expense | | | 4.2 | % | | | 4.2 | % | | | | |
| Net income attributable to noncontrolling interests | | | 0.7 | % | | | 1.0 | % | | | | |
| Net income attributable to shareholders of FMC AG & Co. KGaA | | | 11.4 | % | | | 7.4 | % | | | | |
| | | | | | | | | | | | | |
| EBITDA | | | 19.9 | % | | | 19.5 | % | | | | |
| Fresenius Medical Care | | Three Months Ended | | |
| Segment and Other Information | | March 31, | | |
| (in US-$ million, except employees) | | 2012 | | 2011 | | % Change |
| (unaudited) | | | | | | |
| | | | | | | |
| Net revenue | | | | | | | | | | | | |
| North America | | | 2,105 | | | | 1,925 | | | | 9.3 | % |
| International | | | 1,136 | | | | 1,055 | | | | 7.7 | % |
| Corporate | | | 8 | | | | 4 | | | | 109.0 | % |
| Total net revenue | | | 3,249 | | | | 2,984 | | | | 8.9 | % |
| | | | | | | | | | | | | |
| Operating income (EBIT) | | | | | | | | | | | | |
| North America | | | 348 | | | | 312 | | | | 11.4 | % |
| International | | | 195 | | | | 171 | | | | 14.0 | % |
| Corporate | | | (40 | ) | | | (38 | ) | | | 4.6 | % |
| Total operating income (EBIT) | | | 503 | | | | 445 | | | | 13.0 | % |
| | | | | | | | | | | | | |
| Operating income in percent of revenue | | | | | | | | | | | | |
| North America | | | 16.5 | % | | | 16.2 | % | | | | |
| International | | | 17.2 | % | | | 16.2 | % | | | | |
| Total | | | 15.5 | % | | | 14.9 | % | | | | |
| | | | | | | | | | | | | |
| Employees | | | | | | | | |
| Full-time equivalents | | | 82,979 | | | | 74,844 | | | | | |
| Fresenius Medical Care | | | | |
| Reconciliation of non US-GAAP | | |
| financial measures to the most directly | | Three Months Ended |
| comparable US-GAAP financial measures | | March 31, |
| (in US-$ million) | | 2012 | | 2011 |
| (unaudited) | | | | |
| | | | | |
| Segment information North America | | | | | | | | |
| Net revenue | | | 2,105 | | | | 1,925 | |
| Costs of revenue and research and development | | | 1,439 | | | | 1,351 | |
| Selling, general and administrative | | | 330 | | | | 270 | |
| Gain on sale of dialysis clinics | | | (9 | ) | | | — | |
| Income from equity method investees | | | (3 | ) | | | (8 | ) |
| Costs of revenue and operating expenses | | | 1,757 | | | | 1,613 | |
| Operating income (EBIT) | | | 348 | | | | 312 | |
| In percent of revenue | | | 16.5 | % | | | 16.2 | % |
| | | | | | | | | |
| Dialysis products revenue incl. and excl. internal sales | | | | | | | | |
| North America | | | | | | | | |
| Dialysis products revenue incl. internal sales | | | 371 | | | | 377 | |
| Less internal sales | | | (184 | ) | | | (182 | ) |
| Dialysis products external sales | | | 187 | | | | 195 | |
| International | | | | | | | | |
| Dialysis products revenue incl. internal sales | | | 682 | | | | 644 | |
| Less internal sales | | | (106 | ) | | | (92 | ) |
| Dialysis products external sales | | | 576 | | | | 552 | |
| | | | | | | | | |
| Reconciliation of cash flow from operating activities to EBITDA1) | | | | | | | | |
| Total EBITDA | | | 646 | | | | 581 | |
| Interest expense, net | | | (99 | ) | | | (72 | ) |
| Income tax expense | | | (137 | ) | | | (124 | ) |
| Change in working capital and other non-cash items | | | 71 | | | | (210 | ) |
| Net cash provided by operating activities | | | 481 | | | | 175 | |
| | | | | | | | | |
| Annualized EBITDA2) | | | | | | | | |
| Operating income (EBIT) last twelve months | | | 2,284 | | | | 1,944 | |
| Depreciation and amortization last twelve months | | | 635 | | | | 514 | |
| Non-cash charges | | | 56 | | | | 47 | |
| Annualized EBITDA | | | 2,975 | | | | 2,505 | |
1) EBITDA is the basis for determining compliance with certain covenants in Fresenius Medical Care's long-term debt instruments.
2)EBITDA 2012: Pro forma numbers including Liberty Dialysis Holdings Inc., after FTC mandated divestitures.
| Fresenius Medical Care | | March 31, | | December 31, |
| Balance Sheet | | 2012 | | 2011 |
| (in US-$ million) | | (unaudited) | | (audited) |
| | | | | | | | | |
| Assets | | | | | | | | |
| Current assets | | | 6,093 | | | | 5,695 | |
| Intangible assets | | | 12,034 | | | | 9,873 | |
| Other non-current assets | | | 3,861 | | | | 3,965 | |
| Total assets | | | 21,988 | | | | 19,533 | |
| | | | | | | | | |
| Liabilities and equity | | | | | | | | |
| Current liabilities | | | 5,886 | | | | 4,263 | |
| Long-term liabilities | | | 6,965 | | | | 6,799 | |
| Noncontrolling interests subject to put provisions | | | 502 | | | | 410 | |
| Total equity | | | 8,635 | | | | 8,061 | |
| Total liabilities and equity | | | 21,988 | | | | 19,533 | |
| | | | | | | | | |
| Equity/assets ratio: | | | 39 | % | | | 41 | % |
| | | | | | | | | |
| Debt | | | | | | | | |
| Short-term borrowings | | | 104 | | | | 99 | |
| Short-term borrowings from related parties | | | 15 | | | | 28 | |
| Current portion of long-term debt and capital lease obligations | | | 3,107 | | | | 1,589 | |
| Long-term debt and capital lease obligations, less current portion | | | 5,583 | | | | 5,495 | |
| Total debt | | | 8,809 | | | | 7,211 | |
| Fresenius Medical Care | | | | |
| Cash Flow Statement | | | | |
| Three months ended March 31, | | | 2012 | | | | 2011 | |
| (in US-$ million) | | | | | | | | |
| (unaudited) | | | | | | | | |
| | | | | | | | | |
| Operating activities | | | | | | | | |
| Net income | | | 394 | | | | 249 | |
| Depreciation / amortization | | | 143 | | | | 136 | |
| Investment gain | | | (127 | ) | | | — | |
| Change in working capital and other non-cash items | | | (71 | ) | | | (210 | ) |
| Cash Flow from operating activities | | | 481 | | | | 175 | |
| | | | | | | | | |
| Investing activities | | | | | | | | |
| Purchases of property, plant and equipment | | | (124 | ) | | | (117 | ) |
| Proceeds from sale of property, plant and equipment | | | 2 | | | | 4 | |
| Capital expenditures, net | | | (122 | ) | | | (113 | ) |
| Free Cash Flow | | | 359 | | | | 62 | |
| | | | | | | | | |
| Acquisitions, net of cash acquired, and net purchases of intangible assets | | | (1,703 | ) | | | (339 | ) |
| Proceeds from divestitures | | | 177 | | | | — | |
| Acquisitions, net of divestitures | | | (1,526 | ) | | | (339 | ) |
| Free Cash Flow after investing activities | | | (1,167 | ) | | | (277 | ) |
| | | | | | | | | |
| Financing activities | | | | | | | | |
| Change in accounts receivable securitization program | | | (333 | ) | | | (510 | ) |
| Change in intercompany debt | | | (14 | ) | | | 24 | |
| Change in other debt | | | 1,654 | | | | 862 | |
| Proceeds from exercise of stock options | | | 4 | | | | 2 | |
| Distributions to noncontrolling interests | | | (32 | ) | | | (25 | ) |
| Contributions from noncontrolling interests | | | 5 | | | | 4 | |
| Cash Flow from financing activities | | | 1,284 | | | | 357 | |
| | | | | | | | | |
| Effects of exchange rates on cash | | | 6 | | | | 17 | |
| Net increase (decrease) in cash | | | 123 | | | | 97 | |
| | | | | | | | | |
| Cash at beginning of period | | | 457 | | | | 523 | |
| Cash at end of period | | | 580 | | | | 620 | |
| Fresenius Medical Care | | | | | | | | |
| Quarterly Performance Scorecard - Revenue | | | | | | | | |
| Three months ended March 31, | | | 2012 | | | | cc | | | | 2011 | | | | cc | |
| (in US-$ thousands, except per-treatment revenue) | | | | | | | | | | | | | | | | |
| (unaudited) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| North America | | | | | | | | | | | | | | | | |
| Net revenue | | | 2,104,584 | | | | | | | | 1,924,751 | | | | | |
| Growth year-over-year | | | 9.3 | % | | | | | | | 1.2 | % | | | | |
| | | | | | | | | | | | | | | | | |
| Net Dialysis care | | | 1,917,384 | | | | | | | | 1,729,464 | | | | | |
| Growth year-over-year | | | 10.9 | % | | | | | | | 1.5 | % | | | | |
| U.S. per treatment | | | 353 | | | | | | | | 348 | | | | | |
| Per treatment | | | 345 | | | | | | | | 340 | | | | | |
| Sequential growth | | | 0.8 | % | | | | | | | -1.9 | % | | | | |
| Growth year-over-year | | | 1.5 | % | | | | | | | -2.2 | % | | | | |
| | | | | | | | | | | | | | | | | |
| Dialysis products | | | | | | | | | | | | | | | | |
| Incl. internal sales | | | 371,028 | | | | | | | | 376,716 | | | | | |
| Growth year-over-year | | | -1.5 | % | | | | | | | 3.1 | % | | | | |
| External sales | | | 187,200 | | | | | | | | 195,287 | | | | | |
| Growth year-over-year | | | -4.1 | % | | | | | | | -2.0 | % | | | | |
| | | | | | | | | | | | | | | | | |
| International | | | | | | | | | | | | | | | | |
| Net revenue | | | 1,136,090 | | | | | | | | 1,055,233 | | | | | |
| Growth year-over-year | | | 7.7 | % | | | 11.8 | % | | | 14.4 | % | | | 13.0 | % |
| | | | | | | | | | | | | | | | | |
| Net dialysis care | | | 559,816 | | | | | | | | 503,315 | | | | | |
| Growth year-over-year | | | 11.2 | % | | | 16.1 | % | | | 22.6 | % | | | 21.2 | % |
| Per treatment | | | 161 | | | | 169 | | | | 172 | | | | 170 | |
| Sequential growth | | | 0.2 | % | | | | | | | 1.7 | % | | | | |
| Growth year-over-year | | | -5.9 | % | | | -1.8 | % | | | 3.4 | % | | | 2.2 | % |
| | | | | | | | | | | | | | | | | |
| Dialysis products | | | | | | | | | | | | | | | | |
| Incl. internal sales | | | 682,190 | | | | | | | | 643,954 | | | | | |
| Growth year-over-year | | | 5.9 | % | | | 9.8 | % | | | 8.9 | % | | | 7.6 | % |
| External sales | | | 576,273 | | | | | | | | 551,917 | | | | | |
| Growth year-over-year | | | 4.4 | % | | | 7.8 | % | | | 7.8 | % | | | 6.4 | % |
| | | | | | | | | | | | | | | | | |
| cc = at constant currencies1 | | | | | | | | | | | | | | | | |
1Constant currency
Changes in revenue include the impact of changes in foreign currency exchange rates. We use the non-GAAP financial measure “at constant exchange rates” in our filings to show changes in our revenue without giving effect to period-to-period currency fluctuations. Under U.S. GAAP, revenues received in local (non-U.S. dollar) currency are translated into U.S. dollars at the average exchange rate for the period presented. When we use the term “constant currency”, it means that we have translated local currency revenues for the current reporting period into U.S. dollars using the same average foreign currency exchange rates for the conversion of revenues into U.S. dollars that we used to translate local currency revenues for the comparable reporting period of the prior year. We then calculate the change, as a percentage, of the current period revenues using the prior period exchange rates versus the prior period revenues. This resulting percentage is a non-GAAP measure referring to a change as a percentage “at constant exchange rates”.
We believe that revenue growth is a key indication of how a company is progressing from period to period and that the non-GAAP financial measure constant currency is useful to investors, lenders, and other creditors because such information enables them to gauge the impact of currency fluctuations on its revenue from period to period. However, we also believe that data on constant currency period-over-period changes have limitations, particularly as the currency effects that are eliminated could constitute a significant element of our revenue and could significantly impact our performance. We therefore limit our use of constant currency period-over-period changes to a measure for the impact of currency fluctuations on the translation of local currency revenue into U.S. dollars. We do not evaluate our results and performance without considering both constant currency period-over-period changes in non-U.S. GAAP revenue on the one hand and changes in revenue prepared in accordance with U.S. GAAP on the other. We caution the readers of this report to follow a similar approach by considering data on constant currency period-over-period changes only in addition to, and not as a substitute for or superior to, changes in revenue prepared in accordance with U.S. GAAP. We present the fluctuation derived from U.S. GAAP revenue next to the fluctuation derived from non-GAAP revenue. Because the reconciliation is inherent in the disclosure, we believe that a separate reconciliation would not provide any additional benefit.
| Fresenius Medical Care | | | | |
| Quarterly Performance Scorecard - Dialysis Care Volume | | | | |
| Three months ended March 31, | | | 2012 | | | | 2011 | |
| (unaudited) | | | | | | | | |
| | | | | | | | | |
| North America | | | | | | | | |
| Number of treatments | | | 5,745,986 | | | | 5,241,652 | |
| Treatments per day | | | 73,666 | | | | 68,073 | |
| Per day sequential growth | | | 5.8 | % | | | 0.6 | % |
| Per day year-over-year growth | | | 8.2 | % | | | 4.1 | % |
| Same market growth year-over-year | | | 3.4 | % | | | 3.7 | % |
| | | | | | | | | |
| International | | | | | | | | |
| Number of treatments | | | 3,466,660 | | | | 2,933,190 | |
| Same market growth year-over-year | | | 4.6 | % | | | 5.6 | % |
| Fresenius Medical Care | | | | |
| Quarterly Performance Scorecard - Expenses | | | | |
| Three months ended March 31, | | | 2012 | | | | 2011 | |
| (unaudited) | | | | | | | | |
| | | | | | | | | |
| North America | | | | | | | | |
| Costs of revenue and operating expenses, gain on sale of dialysis clinics and income from equity method investees | | | | | | | | |
| In percent of revenue | | | 83.5 | % | | | 83.8 | % |
| Selling, general and administrative | | | | | | | | |
| In percent of revenue | | | 15.7 | % | | | 14.0 | % |
| U.S. Dialysis care operating expenses/treatment (in US-$) | | | 286 | | | | 288 | |
| Sequential growth | | | 2.3 | % | | | 0.5 | % |
| Growth year-over-year | | | -0.8 | % | | | -2.3 | % |
| Dialysis Care operating expenses/treatment (in US-$) | | | 280 | | | | 282 | |
| Sequential growth | | | 2.5 | % | | | 0.4 | % |
| Growth year-over-year | | | -0.6 | % | | | -2.5 | % |
| | | | | | | | | |
| Total Group | | | | | | | | |
| Costs of revenue and operating expenses, gain on sale of dialysis clinics and income from equity method investees | | | | | | | | |
| In percent of revenue | | | 84.5 | % | | | 85.1 | % |
| Selling, general and administrative | | | | | | | | |
| In percent of revenue | | | 17.0 | % | | | 16.2 | % |
| Effective tax rate | | | 25.8 | % | | | 33.3 | % |
| Fresenius Medical Care | | | | | | | | |
| Quarterly Performance Scorecard - Cash Flow/Investing Activities | | | | | | | | |
| Three months ended March 31, | | | 2012 | | | | 2011 | |
| (in US-$ thousands, except number of de novos) | | | | | | | | |
| (unaudited) | | | | | | | | |
| | | | | | | | | |
| Total Group | | | | | | | | |
| Operating cash flow | | | 481,177 | | | | 175,319 | |
| In percent of revenue | | | 14.8 | % | | | 5.9 | % |
| | | | | | | | | |
| Free cash flow before acquisitions | | | 358,608 | | | | 62,159 | |
| In percent of revenue | | | 11.0 | % | | | 2.1 | % |
| | | | | | | | | |
| Acquisitions and investments, net of divestitures | | | 1,526,081 | | | | 338,792 | |
| | | | | | | | | |
| Capital expenditures, net | | | 122,569 | | | | 113,160 | |
| In percent of revenue | | | 3.8 | % | | | 3.8 | % |
| | | | | | | | | |
| Maintenance | | | 75,224 | | | | 77,056 | |
| In percent of revenue | | | 2.3 | % | | | 2.6 | % |
| | | | | | | | | |
| Growth | | | 47,345 | | | | 36,104 | |
| In percent of revenue | | | 1.5 | % | | | 1.2 | % |
| | | | | | | | | |
| Number of de novos | | | 12 | | | | 22 | |
| North America | | | 6 | | | | 15 | |
| International | | | 6 | | | | 7 | |
| Fresenius Medical Care | | | | |
| Quarterly Performance Scorecard - Balance Sheet | | | | |
| March 31, | | | 2012 | | | | 2011 | |
| (unaudited) | | | | | | | | |
| | | | | | | | | |
| Total Group | | | | | | | | |
| Debt (in US-$ million) | | | 8,809 | | | | 6,397 | |
| Debt/EBITDA | | | 3.0 | | | | 2.6 | |
| | | | | | | | | |
| North America | | | | | | | | |
| Days sales outstanding | | | 55 | | | | 60 | |
| | | | | | | | | |
| International | | | | | | | | |
| Days sales outstanding | | | 124 | | | | 116 | |
| Fresenius Medical Care | | | | |
| Quarterly Performance Scorecard | | | | |
| Three months ended March 31, | | | 2012 | | | | 2011 | |
| | | | | | | | | |
| North America (U.S.) | | | | | | | | |
| Clinical Performance | | | | | | | | |
| Single Pool Kt/v > 1.2 | | | 97 | % | | | 97 | % |
| Hemoglobin = 10-12g/dl | | | 78 | % | | | 73 | % |
| Hemoglobin = 10-13g/dl | | | 86 | % | | | 88 | % |
| Calcium = 8.4-10.2mg/dl | | | 82 | % | | | 79 | % |
| Albumin >= 3.5 g/dl1) | | | 85 | % | | | 84 | % |
| No catheter | | | 78 | % | | | 76 | % |
| Phosphate <= 5.5mg/dl | | | 64 | % | | | 63 | % |
| Hospitalization days per patient (12 months ending March 31) | | | 9.8 | | | | 9.8 | |
| | | | | | | | | |
| Demographics | | | | | | | | |
| Average age (in years) | | | 62 | | | | 62 | |
| Average time on dialysis (in years) | | | 3.8 | | | | 3.7 | |
| Average body weight (in kg) | | | 81 | | | | 81 | |
| Prevalence of diabetes | | | 57 | % | | | 56 | % |
| | | | | | | | | |
| Europe, Middle East and Africa | | | | | | | | |
| Clinical Performance | | | | | | | | |
| Single Pool Kt/v > 1.2 | | | 96 | % | | | 96 | % |
| Hemoglobin = 10-12g/dl | | | 57 | % | | | 54 | % |
| Hemoglobin = 10-13g/dl | | | 77 | % | | | 78 | % |
| Calcium = 8.4-10.2mg/dl | | | 77 | % | | | 78 | % |
| Albumin >= 3.5 g/dl1) | | | 86 | % | | | 88 | % |
| No catheter | | | 82 | % | | | 81 | % |
| Phosphate <= 5.5mg/dl | | | 77 | % | | | 76 | % |
| Hospitalization days per patient (12 months ending March 31) | | | 9.4 | | | | 9.8 | |
| | | | | | | | | |
| Demographics | | | | | | | | |
| Average age (in years) | | | 64 | | | | 64 | |
| Average time on dialysis (in years) | | | 5.1 | | | | 5.0 | |
| Average body weight (in kg) | | | 71 | | | | 71 | |
| Prevalence of diabetes | | | 27 | % | | | 27 | % |
1) International standard BCR CRM470
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