Asklepios starts 2011 business year according to plan
Number of patients rises 2.9 percent in the first quarter of 2011
Revenues and earnings continued to grow at Asklepios, one of Germany's largest privately managed clinic operators, over the first three months of FY 2011. It reported a 6.4 percent rise in sales to EUR 596.4 million (Q1/2010: EUR 560.6 million) and a 2.9 percent rise to 418,000 patients. Despite structural hurdles caused by underlying legislative requirements, the group succeeded in increasing its consolidated earnings by 5.2 percent.
'Developments over the first quarter 2011 were in line with our expectations, even though legislation from Berlin is forcing the clinic sector to accept cutbacks in terms of remuneration this year and next,' says Management Board spokesman, Dr. Tobias Kaltenbach. 'Regardless of that, we're naturally delighted about the sustained rise in patient demand
- a confirmation of society's broad acceptance of Asklepios in general and our high quality medical offers in particular,' he continues.
Group CFO Stephan Leonhard added: 'We've already taken internal measures in response to the market's challenges. We're confident that these will bear fruit, positioning us to reach our full-year goals going forward into 2011. Our first-rate balance sheet situation gives us the flexibility to operate independently of the public sector budget situation, and to further invest in the expansion of our clinic portfolio and exploit growth opportunities.'
In the first quarter, Asklepios reported a 1.4 percent rise in earnings before interest, tax, depreciation and amortization (EBIDTA) to EUR 51.2 million (Q1/2010; EUR 50.5 million). The combination of this and a much improved financial result realized through capital cost savings resulted in a 5.2 percent rise in consolidated net income at EUR 26.1 million (Q1/2010: EUR 24.8 million). The group is currently operating on a 4.4 percent return
on sales.
Sustained, stable performance at Hamburger Kliniken
In the first quarter of 2011, Hamburger Asklepios Kliniken also made a positive contribu-tion to group operating income with revenue up 4.7 percent and a 12.2 percent rise in EBITDA. The clinic group also reported a sharp 11.7 percent increase in net cashflow at EUR 43.8 million (Q1/2010: EUR 39.2 million) which was primarily used for investments.
Net debt at the end of the quarter was EUR 445.0 million, of which EUR 236.1 million was attributable to subordinated capital. Excluding the subordinated capital, group indebtedness is 0.9 times EBITDA (per 31.12.2010: 0.9 times). Asklepios thus continued to have very sound financial structuring at the end of the quarter.
The group has an equity ratio of 31.2 percent, rising to 42.7 percent if its subordinated capital is also taken into account. Liquid funds and untapped credit lines of over EUR 600 million also provide the group with adequate financial reserves for further growth and investment.
Mediclin takeover bid
Asklepios announced a public takeover bid for MediClin AG at the end of the first quarter. Its former ca. 26.5 percent holding in MediClin AG rose to approximately 30.7 percent per 31.03.2011 following the off-market purchase of a packet of 2 million shares. With its present takeover offer, Asklepios does not have any concrete aspirations to acquire a majority stake in MediClin AG.
About Asklepios
With a 20%-plus market share, the Asklepios Kliniken GmbH healthcare group is one of the Top 3 operators of private hospitals and healthcare facilities in Germany. The clinic group pursues a responsible, sustainable, quality- and innovation-centric growth strategy. Since its formation over a quarter of a century ago, Asklepios has remained faithful to these
principles which have rewarded it with dynamic growth. The group currently
has 68 clinics with 18,500 beds and ca. 35,000 employees across Germany. In FY 2010, over 1.6 million patients were treated at Asklepios
establishments.