Asklepios Grows Step in Q3 Quarter 2011
First full consolidation of MediClin AG
Asklepios’s majority takeover of MediClin AG in September 2011 has helped the group report a sharp increase in third quarter turnover, up 8.6 percent at EUR 1,832.6 million (Q3/2010: EUR 1,687.8 million). It also reported a strong rise in the number of patients treated, up 8.4 percent to over 1,296,000.
“The MediClin AG takeover has positioned the Asklepios healthcare group with a unique, nationwide hospital presence covering every level of treatment,” says Group Management Board Chairman, Dr Ulrich Wandschneider. “Our regional clusters enable us to generate value added for our patients across the country in the framework of integrated treatment, improved care structures and even better medical quality.”
Third quarter operating earnings before interest, taxation, depreciation, amortization, rent and leasing expenditures (EBITDAR) came in at EUR 175.1 million, marginally lower than a year earlier (Q3/2010: EUR 175.6 million). Regulatory, collective bargaining-related and inflationary pressures, which could not be fully compensated for, resulted in a lower operating margin of 8.9 percent. Full-year net income at the end of the third quarter was EUR 19.7 million or, after adjusting for the special effect of the write-down of the company’s Greek holding, EUR 71.0 million (Q3/2010: EUR 84.8 million). The normalized return of sales was 3.9 percent or 1.1 percent before adjustment.
“Asklepios successfully completed its next growth steps in the third quarter, despite an array of challenging market fundamentals,” says Deputy Group Management Board Chairman and CFO, Stephan Leonhard. “The full consolidation of MediClin AG is a milestone in our strategy for further developing our integrated healthcare business model. Establishing regional clusters with efficient market development and integrating processes and services for the successive formation of shared services additionally enables us to leverage synergies,” he continues.
In the third quarter of 2011, Asklepios generated an operating net cash flow of EUR 160.1 million which was primarily used to repay financial liabilities and for investments – especially in medical treatment and in building up the group’s stakeholdings in MediClin AG.
Solid financial structure and equity ratio despite special effects
Net debt at the end of the quarter was EUR 480.3 million, of which EUR 200.4 million was attributable to subordinated capital. Excluding the subordinated capital, group indebt-edness was 1.2 times EBITDA, compared to 0.9 times EBITDA per 31.12.2010.
The group’s equity capital ratio was 28.8 percent, rising to 36.8 percent if its subordinated capital is also taken into account. At the end of September 2011, the group had liquid funds and untapped credit lines of over EUR 618.8 million at its disposal for further growth and investment.
For the coming 2012 financial year, Asklepios is seeking to generate sales of around EUR 3 billion. A large wave of privatizations is not expected in this connection, rather healthy competition for the few, attractive acquisition opportunities that arise. Asklepios’s solid financing structure will continue to offer it the flexibility needed to participate in attractive bidding processes in the future as well.
About Asklepios
With a market share of over 20 percent, the Asklepios Kliniken GmbH healthcare group is one of the Top 3 private operators of hospitals and healthcare facilities in Germany. The clinic group pursues a responsible, sustainable growth strategy centered on quality and innovation. These are the principles on which Asklepios has based its dynamic growth since it was formed more than a quarter of a century ago. The group currently has 114 clinics and 20 other healthcare facilities with 26,700 beds and ca. 44,000 employees across Germany. Around 1.3 million patients were treated at Asklepios establishments in the past nine months of the current financial year.