Asklepios Clinics reporting good figures for the first nine months
Quality of medical outcomes and profit results substantially increased
The third quarter of 2012 has shown an increase of 17.5% in patient numbers, to more than 1,488,000 patients, in comparison to last year. Turnover increased by 21.6% (of which 2.9% were attributable to organic growth) to EUR 2,228m (Q3/2011: EUR 1,833m), for the first time showing the year-round impact of the newly acquired MediClin AG clinics. Despite the nationwide trend of increasing remuneration, as well as the sustained pressure of the cost of additional hospital services, the operating result (EBITDAR) has risen by 34.9% to now more than EUR 235.3m, representing a margin increase of 1.1 percentage points to the current 10.6%.
EBIT improved, compared to last year, by 15.4% to EUR 121.3m, representing a margin of 5.4% (Q3/2011: 5.7%). This reflects the relatively higher rate of depreciation compared to the same period last year due to increased write-downs from completed buildings and acquisitions in the previous year. The consolidated net earnings of the third quarter of EUR 81.2m are about 15.7% higher than the adjusted result for the same period last year; the resulting return on sales stands at 3.6%.
Stephan Leonhard, Deputy Chairman of the Group management and CFO comments: "The increases in remuneration this year is weighing heavily on income results. Though we are awaiting compensation within the year in the form of government staffing subsidies (so-called tariff rates) for the increased costs of staffing incurred, it is not expected to cover all the additional costs."
The net cash flow has increased by 13.1% to EUR 181.0m since last year, not least due to the increase in the operating result in the corresponding period of the previous year.
Solid balance- and financing structure remain
The equity ratio at the time of reporting was 31.2%, including subordinated capital - 35.8%. Liquid assets and unused lines of credit of more than EUR 351m offer the Group additional sufficient financial reserves for growth and investment.
At the end of the third quarter in 2012, the net debt amounted to EUR 625.0m, of which EUR 122.2m was drawn from subordinated capital. Without factoring in subordinated capital, the degree of debt is two times the EBITDA (as of 31.12.2011: 1.5 times the EBITDA). Asklepios has managed to sustain its strength of internal financing and maintains its superbly solid financing structure.
Outlook
Compared to last year, Asklepios is – despite the difficult condition of the market – expected to report an increase in the operating result for the current fiscal year (2012). The effect of measures introduced, for example synergism of cooperation (e.g. buying) and establishing of networks, will prove noticeably effective in the course of this fiscal year.
For the following year, 2013, the challenges in the hospital industry with regards to closing the increasing gap between revenue and costs development will remain; we intend to combat these by continuously improving our internal processes to alleviate costs and extract potential for efficiency throughout the Group.
The healthcare group Asklepios Kliniken GmbH is one of Germany’s leading private operators of hospitals and healthcare facilities. The clinic group pursues a responsible and sustainable growth strategy that is geared towards high quality and innovation. On this basis, Asklepios has achieved dynamic growth since it was founded over 25 years ago. The Group currently has 140 healthcare facilities nationwide and employs more than 44,000 staff. Over 1.7 million patients were treated at facilities run by the Asklepios Group in 2011.