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| [April 02, 2012] |
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2011: a Transitional Year for Cegedim - Renewed Growth Expected in 2012
PARIS --(Business Wire)--
Regulatory News:
Cegedim,
a global technology and services company specializing in the healthcare
field, consolidated 2011 revenue of €911.5 million and an operating
income from continuing operations of €83.9 million.
Amid tough conditions, Cegedim's revenue and operating income
experienced a decline. This decline was offset by the Group's diverse
business portfolio, client base and geographical presence, combined with
solid sales momentum.
In 2012, the Group's sustained innovation efforts over the past three
years gave rise to a successful platform for SaaS (News - Alert) offerings (CDF -
Cegedim Dynamic Framework), which is based on a pioneering original
architecture. It will be gradually rolled out in support of the Group's
many applications, starting with software for pharmacists in the UK.
The ongoing sales momentum, innovative new product launches and
Performance Improvement Plan will have a positive impact on Group
operating income from continuing operations starting in the second half
of 2012.
-
Simplified income statement
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2011
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2010
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?
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€m
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%
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€m
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%
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Revenue
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911.5
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100%
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926.7
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100%
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-1.6%
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EBITDA from continuing operations
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150.4
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16.5%
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174.8
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18.9%
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-13.9%
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Depreciation
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-66.5
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|
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-66.8
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-0.4%
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Operating income from continuing operations
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83.9
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9.2%
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108.0
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11.7%
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-22.3%
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Dendrite brand discontinuation
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-
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-104.0
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n.m.
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Exceptional operating income / expenses
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-8.0
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-10.8
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-26.0%
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Operating income
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75.9
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8.3%
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-6.8
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n.m.
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n.m.
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Net cost of financial debt
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-37.7
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-34.3
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+9.9%
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Tax expenses
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-6.6
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+24.0
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n.m.
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Share of earnings in equity-accounted affiliates
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1.0
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0.9
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+15.2%.
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Consolidated profit
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32.7
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3.6%
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-16.2
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n.m.
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Profit attributable to the owners of the parent
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32.6
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3.6%
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-16.3
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n.m.
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* at constant scope and exchange rates
Cegedim generated consolidated revenue of €911.5 million, down 1.6% on a
reported basis and 2.8% like for like compared with 2010. Acquisitions
boosted revenue by 1.7% and currencies had a negative impact of 0.6%.
Operating income from continuing operations was €83.9 million, down
22.3% compared with 2010. This drop was the result of higher personnel
costs in the first half and weaker sales in the second half. As a
result, the operating margin from continuing operations came to 9.2%,
versus 11.7% a year earlier. We note that execution of the Performance
Improvement Plan helped cut personnel costs by 4% between the first and
second half of 2011.
The cost of financial debt rose from €34.3 million to €37.7 million, a
9.9% increase. The effective tax rate came to 17.2%.
The Group's consolidated net profit came to €32.6 million, and EPS
amounted to €2.3 compared with a €1.2 loss a year earlier due to the
impact of discontinuing the Dendrite brand.
The Group global presence and its diversification of activities allowed
it to limit the negative impacts from crises, geopolitical events and
natural disasters that occurred throughout the world in 2011.
Analysis of business trends by sector
Sector revenue for 2011 was €510.6 million, down 3.0% on a reported
basis. Acquisitions boosted revenue by 0.2%, whereas currencies had a
negative impact of 0.9%. Like-for-like* revenue fell 2.3% over the
period.
Sector operating income from continuing operations was €33.6 million,
down €17.6 million compared with 2010. As a result, the operating margin
from continuing operations was 6.6%, compared with 9.7% a year earlier.
But it is important to note that the margin improved tremendously in the
second half of 2011: to 10.2% from 2.8% in the first half.
This speedy recovery was made possible by the salutary effects of
stabilizing the number of Cegedim solution users worldwide, and by
making implementation tools fully reliable.
The sector is also being driven by
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The growth in emerging country business (14% of revenue);
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The development of compliance solutions in response to the Sunshine
Act in the US and similar regulations which extend in Europe;
-
The global healthcare professionals database, Cegedim's core CRM
offering, OneKey, cleared the threshold of 8 million healthcare
professionals in early 2012;
-
The new version of the Mobile Intelligence offering for iPad,
scheduled for launch in the second half of 2012.
Sector revenue came to €259.8 million in 2011, down 4.1% on a reported
basis. Acquisitions (Pulse (News - Alert) in the US and Pharmec in Romania) boosted
revenue by 2.6%, but currencies had a negative impact of 0.3%.
Like-for-like* revenue fell 6.5% over the period.
Sector operating income from continuing operations was €29.3 million,
down €7.5 million compared with 2010. As a result, the operating margin
from continuing operations was 11.3%, down from 13.6% a year earlier.
Most of the drop in Healthcare professional sector revenue was due to
the significant decline in activity at Cegelease and RNP (-12%), in part
compensated by the increase at the Cegedim Healthcare Software division
(+4%), the margin follows the same path.
Cegedim should benefit from:
-
The development of the Performance-based pay policy for doctors around
the world;
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The launch in January 2012 of monLogicielMedical.com, the Group's
fully web-based medical software;
-
Pulse's business increased in the US;
-
From the expected recovery of RNP and Cegelease business.
Sector 2011 revenue amounted to €141.0 million, up 9.2% on a reported
basis. Acquisitions boosted revenue by 6.2%, and currencies had a
positive impact of 0.1%. Like-for-like* revenue rose 2.9% over the
period.
Sector operating income from continuing operations was €21.0 million, up
€1.1 million compared with 2010. As a result, the operating margin from
continuing operations was 14.9%, versus 15.4% a year earlier.
Strong growth in this sector was driven by the positive trends in online
services management in third-party payer platforms.
Future growth is ensured by expanding these offerings to hospitals and
dentists, following the success with eye care professionals in 2011.
Financial resources
Cegedim's total consolidated balance sheet at December 31, 2011,
amounted to €1.393 billion, up slightly compared with the end of 2010.
The balance sheet structure is robust; share capital increased by 7.5%
and now represents 37% of total assets. This trend is chiefly the result
of a €48.9 million increase in consolidated net profit.
Due to EUR/USD currency impacts, acquisition goodwill amounted to
€725 million compared with €711 million at end-2010. It is stable at 52%
of the total balance sheet.
Cash and equivalents (€73.1 million) exceed the value of short-term
financial debt (€49.9 million).
Net financial debt comes to €453.3 million, compared with €461.6 million
at end-2010. This €8.3 million decrease is the result of a €14.3 million
drop in gross debt, partially offset by a €6 million decrease in cash.
Before the cost of net financial debt and taxes, cash flow was
€140 million, down 13% compared with end-2010. The level of gearing
improved to 0.9 from 1.1 at end-June 2011 and 1.0 at end-December 2010.
The Group was in compliance with all of its bank covenants at end-2011.
2011 highlights
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Acquisition in Romania of Pharmec (around €1 million of revenue)
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Refinancing the bank credit used in the May 2007 acquisition of
Dendrite
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Maturity of the FCB loan (FCB, company owned by the Labrune family)
extended by two years
Significant post-closing transactions and events
To the best of the company's knowledge, there have been no post-closing
events or changes that would materially alter the Group's financial
situation.
Outlook
Over the coming months, Cegedim will benefit from:
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The launch of innovative new products;
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The increasing use of performance-based pay policies for doctors,
particularly in France;
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The sales momentum that began in 2011 for the CRM, Compliance and
OneKey offerings;
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The revolution in the control of online rights in the health insurance
sector;
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Continued progress, internally, on the Performance Improvement Plan.
These factors will boost the Group's consolidated revenue and EBITDA
starting in the second half of 2012.
Financial calendar
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The Group will hold a conference call on April 3rd,
2012, at 6:15 pm in English (Paris time). The call will be hosted
by Jan Eryk Umiastowski, Cegedim Chief Investment Officer and Head
of Investor Relations.
Cegedim's annual results
presentation is available at:
http://www.cegedim.com/finance/documentation/Pages/presentations.aspx
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Contact numbers:
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+33 1 72 10 50 80
+33 1 72 10 50 81
+49 302 21 51 00 68
+44
203 428 1111
12122577611
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France
France
Germany
UK
USA
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Access code:
35957892#
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April 3, 2012 - 11:30 am
May 3, 2012 (after the stock market closes)
August 1st 2012 (after the stock market
closes)
September 19, 2012 (after the stock market closes)
September 20, 2012
November 8, 2012 (after the stock market closes)
Additional information
The Audit Committee met on March 30th, 2012. The Board of
Directors and the Auditors met on April 2nd, 2012, to approve
2011 consolidated financial statements. Audit procedures have been
performed and the 2011 Full-year statutory auditors' report on the
financial statements is forthcoming.
The financial information presented in this press release comes from
Cegedim Full-year consolidated financial statements and is fully
available on the 2011 Reference Document at www.cegedim.com/finance
as of April 5, 2012.
A presentation of Cegedim 2011 Full-year results will also be available
on the website:
http://www.cegedim.com/finance/documentation/Pages/presentations.aspx
http://www.cegedim.fr/finance/documentation/Pages/presentations.aspx
The transcription (in French and English) of the April 3rd,
2012, results presentation for analysts by Jean-Claude Labrune and
Pierre Marucchi will also be available on the website shortly.
To stay informed, subscribe to our twitter feed: http://twitter.com/CegedimGroup#
Appendices
Assets
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In thousand of euros
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|
12/31/2011
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12/31/2010**
|
|
Goodwill on acquisition
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|
725,058
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711,089
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|
Development costs
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|
24,446
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|
48,093
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|
Trademarks, patents
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|
-
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-
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Other intangible fixed assets
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|
167,002
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|
121,932
|
|
Intangible fixed assets
|
|
191,448
|
|
170,025
|
|
Property
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|
409
|
|
430
|
|
Buildings
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|
5,147
|
|
5,540
|
|
Other tangible fixed assets
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|
35,958
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|
36,929
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|
Construction work in progress
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|
2,594
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|
261
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|
Tangible fixed assets
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|
44,108
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43,160
|
|
Equity investments
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|
443
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|
299
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|
Loans
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|
1,400
|
|
1,004
|
|
Other long-term investments
|
|
9,637
|
|
8,017
|
|
Long-term investments - excluding equity shares in equity method
companies
|
|
11,480
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|
9,320
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|
Equity shares in equity method companies
|
|
7,645
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|
7,276
|
|
Government - Deferred tax
|
|
48,093
|
|
49,317
|
|
Accounts receivable : Long-term portion
|
|
14,498
|
|
16,685
|
|
Other receivables : Long-term portion
|
|
651
|
|
722
|
|
Non-current assets
|
|
1,042,982
|
|
1,007,594
|
|
Services in progress
|
|
305
|
|
298
|
|
Goods
|
|
10,274
|
|
10,428
|
|
Advances and deposits received on orders
|
|
1,151
|
|
1,250
|
|
Accounts receivable : Short-term portion
|
|
222,350
|
|
233,446
|
|
Unpaid, called-up capital
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|
-
|
|
-
|
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Other receivables : Short-term portion
|
|
25,778
|
|
25,702
|
|
Cash equivalents
|
|
14,041
|
|
13,238
|
|
Cash
|
|
59,087
|
|
65,916
|
|
Prepaid expenses
|
|
17,347
|
|
19,151
|
|
Current assets
|
|
350,334
|
|
369,429
|
|
Total assets
|
|
1,393,316
|
|
1,377,023
|
**: The comparative financial statements presented at 12/31/2010 were
drawn up by retrospectively applying the equity method for actuarial
differences relating to provisions for pensions and similar obligations.
Equity and Liabilities
|
|
|
|
|
|
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In thousand of euros
|
|
12/31/2011
|
|
12/31/2010**
|
|
Share capital
|
|
13,337
|
|
13,337
|
|
Issue premium
|
|
185,562
|
|
185,562
|
|
Group reserves
|
|
263,439
|
|
291,153
|
|
Group exchange reserves
|
|
-238
|
|
-238
|
|
Group exchange gains/losses
|
|
21,058
|
|
6,356
|
|
Group earnings
|
|
32,580
|
|
-16,349
|
|
Investment subsidies
|
|
-
|
|
-
|
|
Regulated provisions
|
|
-
|
|
-
|
|
Shareholders' equity, Group share
|
|
515,737
|
|
479,820
|
|
Minority interests (reserves)
|
|
407
|
|
384
|
|
Minority interests (earnings)
|
|
90
|
|
102
|
|
Minority interests
|
|
497
|
|
486
|
|
Shareholders' equity
|
|
516,234
|
|
480,306
|
|
Long-term financial liabilities
|
|
483,744
|
|
489,280
|
|
Long-term financial instruments
|
|
14,094
|
|
13,334
|
|
Deferred tax liabilities
|
|
12,862
|
|
13,466
|
|
Non-current provisions
|
|
25,154
|
|
26,481
|
|
Other non-current liabilities
|
|
7,142
|
|
29,890
|
|
Non-current liabilities
|
|
542,996
|
|
572,451
|
|
Short-term financial liabilities
|
|
51,871
|
|
60,667
|
|
Short-term financial instruments
|
|
27
|
|
-
|
|
Accounts payable and related accounts
|
|
92,079
|
|
74,789
|
|
Tax and social liabilities
|
|
119,517
|
|
125,780
|
|
Provisions
|
|
5,075
|
|
6,066
|
|
Other current liabilities
|
|
65,516
|
|
56,963
|
|
Current liabilities
|
|
334,085
|
|
324,266
|
|
Total Liabilities
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|
1,393,316
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|
1,377,023
|
**: The comparative financial statements presented at 12/31/2010 were
drawn up by retrospectively applying the equity method for actuarial
differences relating to provisions for pensions and similar obligations.
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In thousand of euros
|
|
12/31/2011
|
|
12/31/2010**
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Revenue
|
|
911,463
|
|
926,674
|
|
Other operating activities revenue
|
|
-
|
|
-
|
|
Capitalized production
|
|
47,137
|
|
40,188
|
|
Purchases used
|
|
-105,648
|
|
-110,887
|
|
External expenses
|
|
-240,184
|
|
-225,586
|
|
Taxes
|
|
-15,101
|
|
-14,660
|
|
Payroll costs
|
|
-442,231
|
|
-435,579
|
|
Allocations to and reversals of provisions
|
|
-3,886
|
|
-4,088
|
|
Change in inventories of products in progress and finished products
|
|
101
|
|
94
|
|
Other operating income and expenses
|
|
-1,224
|
|
-1,371
|
|
EBITDA
|
|
150,428
|
|
174,786
|
|
Depreciation expenses
|
|
-66,523
|
|
-66,807
|
|
Operating income from continuing operations
|
|
83,905
|
|
107,979
|
|
Drop of Dendrite trademark
|
|
-
|
|
-104,009
|
|
Exceptional operating income and expenses
|
|
-7,983
|
|
-10,792
|
|
Other exceptional operating income and expenses
|
|
-7,983
|
|
-114,801
|
|
Operating income
|
|
75,922
|
|
-6,822
|
|
Income from cash and cash equivalents
|
|
5,487
|
|
961
|
|
Gross cost of financial debt
|
|
-36,433
|
|
-30,450
|
|
Other financial income and expenses
|
|
-6,723
|
|
-4,793
|
|
Cost of net financial debt
|
|
-37,669
|
|
-34,282
|
|
Income taxes
|
|
-21,216
|
|
-20,189
|
|
Deferred taxes
|
|
14,642
|
|
44,186
|
|
Total taxes
|
|
-6,574
|
|
23,997
|
|
Share of profit (loss) for the period of equity method companies
|
|
991
|
|
860
|
|
Consolidated profit (loss) for the period
|
|
32,670
|
|
-16,247
|
|
Attributable To Owners Of The Parent (A)
|
|
32,580
|
|
-16,349
|
|
Minority interests
|
|
90
|
|
102
|
|
Average number of shares excluding treasury stock (B)
|
|
13,955,940
|
|
13,965,092
|
|
Earnings Per Share (in euros) (A/B)
|
|
2.3
|
|
-1.2
|
|
Dilutive instruments
|
|
néant
|
|
néant
|
|
Diluted Earnings Per Share (in euros)
|
|
2.3
|
|
-1.2
|
|
Earnings Per Share from continuing operations (in euros)
|
|
2.8
|
|
4.1
|
** The comparative financial statements presented at 12/31/2010 were
drawn up by retrospectively applying the equity method for actuarial
differences relating to provisions for pensions and similar obligations.
-
Consolidated cash flow statement
|
|
|
|
|
|
|
In thousand of euros
|
|
12/31/2011
|
|
12/31/2010**
|
|
Consolidated profit (loss) for the period
|
|
32,670
|
|
-16,247
|
|
Share of earnings from equity method companies
|
|
-991
|
|
-860
|
|
Depreciation and provisions
|
|
63,733
|
|
167,894
|
|
Capital gains or losses on disposals
|
|
415
|
|
-437
|
|
Cash flow after cost of net financial debt and taxes
|
|
95,827
|
|
150,350
|
|
Cost of net financial debt.
|
|
37,669
|
|
34,282
|
|
Tax expenses
|
|
6,574
|
|
-23,997
|
|
Operating cash flow before cost of net financial debt and taxes
|
|
140,070
|
|
160,635
|
|
Tax paid
|
|
-19,776
|
|
-15,264
|
|
Change in working capital requirements for operations
|
|
21,249
|
|
-11,503
|
|
Cash flow generated from operating activities after tax paid and
change in working capital requirements (A)
|
|
141,543
|
|
133,868
|
|
Acquisitions of intangible assets
|
|
-50,538
|
|
-45,511
|
|
Acquisitions of tangible assets
|
|
-29,644
|
|
-27,783
|
|
Acquisitions of long-term investments
|
|
-2,084
|
|
-
|
|
Disposals of tangible and intangible assets
|
|
2,083
|
|
4,155
|
|
Disposals of long-term investments
|
|
-
|
|
683
|
|
Impact of changes in consolidation scope
|
|
-1,422
|
|
-56,291
|
|
Dividends received from equity method companies
|
|
662
|
|
759
|
|
Net cash flows generated by investment operations (B)
|
|
-80,943
|
|
-123,988
|
|
Dividends paid to parent company shareholders
|
|
-13,953
|
|
-13,959
|
|
Dividends paid to the minority interests of consolidated companies
|
|
-72
|
|
-75
|
|
Capital increase through cash contribution
|
|
-
|
|
-
|
|
Loans issued
|
|
200,000
|
|
303,147
|
|
Loans repaid
|
|
-222,558
|
|
-303,704
|
|
Interest paid on loans
|
|
-32,300
|
|
-18,734
|
|
Other financial income and expenses paid or received
|
|
1,050
|
|
-6,310
|
|
Net cash flows generated by financing operations (C)
|
|
-67,833
|
|
-39,635
|
|
Change In Cash without impact of change in foreign currency
exchange rates (A + B + C)
|
|
-7,233
|
|
-29,755
|
|
Impact of changes in foreign currency exchange rates
|
|
931
|
|
5,449
|
|
Change in cash
|
|
-6,302
|
|
-24,306
|
|
Opening cash
|
|
78,032
|
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102,338
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Closing cash
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71,730
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78,032
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** The comparative financial statements presented at 12/31/2010 were
drawn up by retrospectively applying the equity method for actuarial
differences relating to provisions for pensions and similar obligations.
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EPS: Earnings Per Share is a specific financial indicator
defined by the Group as the net profit (loss) for the period
divided by the weighted average of the number of shares in
circulation.
Revenue at constant exchange rate:
when changes in revenue at constant exchange rate are referred to,
it means that the impact of exchange rate fluctuations has been
excluded. The term, "at constant exchange rate" covers the
fluctuation resulting from applying the exchange rates for the
preceding period to the current fiscal year, all other factors
remaining equal.
Revenue on a like-for-like basis:
the effect of changes in scope is corrected by restating the sales
for the previous period as follows:
• by removing the portion of sales originating in the entity or
the rights acquired for a period identical to the period during
which they were held to the current period;
• similarly, when an entity is transferred, the sales for the
portion in question in the previous period are eliminated;
Internal
growth: internal growth covers growth resulting from the
development of an existing contract, particularly due to an
increase in rates and/or the volumes distributed or processed, new
contracts, acquisitions of assets allocated to a contract or a
specific project.
External growth: external
growth covers acquisitions during the current fiscal year, as well
as those which have had a partial impact on the previous fiscal
year, net of sales of entities and/or assets.
EBIT:
Earnings Before Interest and Taxes. EBIT corresponds to the net
revenue minus operating expenses (such as salaries, social
charges, materials, energy, research, services, external services,
advertising, etc.). It is the operating income for the Cegedim
Group.
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EBIT from continuing operations: this is EBIT restated to
take account of non-current items, such as losses on tangible and
intangible assets, restructuring, etc. It corresponds to the
operating income from continuing operations for the Cegedim Group.
EBITDA:
Earnings before interest, taxes, depreciation and amortization.
EBITDA is the term used when amortization or depreciation and
revaluations are not taken into account. "D" stands for
depreciation of tangible assets (such as buildings, machines or
vehicles), while "A" stands for amortization of intangible assets
(such as patents, licenses and goodwill). It corresponds to the
gross operating earnings for the Cegedim Group.
EBITDA
from continuing operations: this is EBITDA restated to take
account of non-current items, such as losses on tangible and
intangible assets, restructuring, etc. It corresponds to the gross
operating earnings from continuing operations for the Cegedim
Group.
Net Financial Debt: this represents the
Company's net debt (non-current and current financial debt, bank
loans, debt restated at amortized cost and interest on loans) net
of cash and cash equivalents and excluding revaluation of debt
derivatives.
Net bank debt: this represents net
financial debt less Cegedim's subordinated debt to FCB.
Free
cash flow: free cash flow is cash generated, net of the cash
part of the following items: (i) changes in working capital
requirements, (ii) transactions on equity (changes in capital,
dividends paid and received), (iii) capital expenditure net of
transfers, (iv) net financial interest paid and (v) taxes paid.
Operating
margin: Defined as the ratio of EBIT/revenue.
Operating
margin from continuing operations: defined as the ratio of
EBIT from continuing operations/revenue.
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About Cegedim:
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Founded in 1969, Cegedim is a global technology and services
company specializing in the healthcare field. Cegedim supplies
services, technological tools, specialized software, data flow
management services and databases. Its offerings are targeted
notably at healthcare industries, life sciences companies,
healthcare professionals and insurance companies. The world leader
in life sciences CRM, Cegedim is also one of the leading suppliers
of strategic healthcare industry data. Cegedim employs 8,200
people in more than 80 countries and generated revenue of €911
million in 2011. Cegedim SA is listed in Paris (EURONEXT: CGM).
To learn more, please visit: www.cegedim.com
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Public company with share capital of 13,336,506.43 euros
Trade and
Commercial Register: Nanterre B 350 422 622
www.cegedim.com
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