Asklepios raises forecast for 2010
6.5 percent rise in number of patients
The Asklepios Group once more reports a sharp rise in turnover and net profit for the first three quarters of FY 2010. With turnover up 6.5 percent at Euro 1,705.4 million (Q3/2009: Euro 1,602.0 million), the clinic group sees itself on track to completing a thriving full business year. It also announces a notable increase in operating profits of ca. 16 percent compared to the same period last year. Further to this, a bond issue in late September secured the group additional financial reserves for future refinancing and investments.
“We’re delighted with the high level of patient acceptance enjoyed by our medical portfo-lio,” says Group Executive Board Chairman, Dr. Tobias Kaltenbach. “We treated over 1.2 million patients in the first nine months of 2010, a rise of 6.5 percent over the same period last year. That’s a clear vote of confidence in Asklepios, its abilities, innovation and excellent quality of treatment. With this, the current financial year is proceeding according to plan; we’re very confident about reaching our operating goals for FY 2010 and – despite the regulatory burdens imposed by the German Statutory Health Insurance Financing Act – for FY 2011 as well.”
Additionally to the ca. 6.0 percent organic rise in turnover, the municipal hospitals of the district of Schwandorf, whose 411 beds were acquired in January 2010, were for the first time included in the consolidated third quarter results of 2010. Earnings before interest, tax, depreciation and amortization (EBITDA) rose disproportionately to Euro 166.8 million (Q3/2009: Euro 143.9 million). The sustained improvement in operating result since 2008 at Asklepios’ clinics in Hamburg made a major contribution here. This, together with a stronger financial result, helped boost consolidated net income by 32.9 percent at Euro 84.8 million (Q3/2009: Euro 63.8 million), pushing the net profit margin to 5.0 percent. The clinic group also generated a strong net cash flow from operations of Euro 193.3 million (Q3/2009: Euro 100.5 million) which was used primarily for investments and the repayment of financial liabilities.
“With the issuance of our Euro 150 million debut bond and associated opener to the capital markets, the Asklepios group has tapped a new strategic source of financing. At the same time, the outstanding improvement in earnings and cashflow has allowed us to slash our net debt by ca. Euro 90 million,” says Asklepios Group Managing Director and CFO, Stephan Leonhard.
Net debt at the end of the third quarter amounted to Euro 468.8 million, of which Euro 280.6 million was attributable to subordinated capital. Taking the subordinated capital into account, net debt declined to 2.1 times the EBITDA (as of 31st December 2009: 2.9 times). The very sound financial structure of the Asklepios Group is additionally reflected in an equity ratio of 29.1 percent as of September 30, 2010. When subordinated capital is included, the ratio rises to 42.5 percent. Cash and cash equivalents and untapped lines of credit currently exceed Euro 650 million.
“Given these very strong business results for the year to date, we’re now concretizing our full year forecast for an EBITDA increase of over 12 percent on a turnover goal of ca. EUR 2.3 billion,” Stephan Leonhard continues.
Guidance for 2011 indicates further potential for increases in turnover and profits
Despite industry related regulatory burdens – such as the German Statutory Health Insur-ance Financing Act and pay scale affects – the clinic group’s initial FY 2011 forecast is for a repeated increase in EBITDA of at least 8 percent on a 3 percent-plus rise in turnover.
With a share of over 20 percent of the German market, the Asklepios Kliniken GmbH healthcare group is one of Germany’s three largest private operators of hospitals and healthcare facilities. The group pursues a responsible, sustainable, excellence- and innovation-centric growth strategy that has driven its dynamic growth since formation over quarter of a century ago. Asklepios currently operates over 66 hospitals with around 18,000 beds and ca. 33,500 staff nationwide. In FY 2009, it treated more than 1.6 million patients at its facilities.