Fresenius Medical Care reports Fourth Quarter and Full Year 2005 Results.BAD HOMBURG Bad Hom·burg A city of west-central Germany at the foot of the Taunus Mountains near Frankfurt. It is a famous spa and resort. Population: 53,200. , Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). -- Excellent Full Year 2005: The Company exceeded its financial targets, achieved record earnings and proposes its 9th consecutive annual dividend increase.
Net Revenue $ 6,772 million + 9%
Operating Income (EBIT) $ 939 million + 10%
Operating Income (EBIT) excluding one-time-costs $ 961 million + 13%
Net Income $ 455 million + 13%
Net Income excluding one-time-costs $ 472 million + 17%
Dividend Proposal Ordinary Share EUR 1.23 + 10%
Preference Share EUR 1.29 + 9%
Fresenius Medical Care Fresenius Medical Care is a German company specializing in the production of medical supplies, primarily to facilitate or aid renal dialysis. It is 37%-owned by the health care company Fresenius SE. AG & Co. KGaA KGaA Kommanditgesellschaft Auf Aktien (German: Limited partnership on shares; business entity) ("the Company") (Frankfurt Stock Exchange Frankfurt Stock Exchange The largest of Germany's eight securities exchanges, operated by Deutsche Borse AS. : FME FME Formal Methods Europe FME Faculty of Mechanical Engineering (Brno University of Technology, Czech Republic) FME Feature Manipulation Engine FME Facultat de Matemàtiques I Estadística , FME3) (NYSE NYSE See: New York Stock Exchange : FMS FMS - Flexible Manufacturing System (factory automation). , FMS-p), the world's largest provider of Dialysis dialysis (dīăl`ĭsĭs), in chemistry, transfer of solute (dissolved solids) across a semipermeable membrane. Strictly speaking, dialysis refers only to the transfer of the solute; transfer of the solvent is called osmosis. Products and Services, today announced its results for the fourth quarter and full year of 2005. Fourth Quarter 2005: Revenue Total revenue for the fourth quarter 2005 compared to the fourth quarter 2004 increased by 8% (10% at constant currency) to $1,772 million. The organic growth rate worldwide was 9%. Dialysis Services revenue grew by 8% to $1,257 million (8% at constant currency) in the fourth quarter of 2005. Dialysis Products revenue increased by 9% to $516 million (13% at constant currency) in the same period. North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. revenue increased by 9% to $1,194 million. Dialysis Services revenue increased by 7% to $1,049 million. Average revenue per treatment for the U.S. clinics increased by 4% to $302 in the fourth quarter 2005, as compared to $290 for the same quarter in 2004. Dialysis Products revenue increased by 22% to $145 million led by strong sales of our 2008K hemodialysis hemodialysis /he·mo·di·al·y·sis/ (-di-al´i-sis) removal of certain elements from the blood by virtue of the difference in rates of their diffusion through a semipermeable membrane while being circulated outside the body; the process machines and dialyzers. International revenue was $578 million, an increase of 7% (12% at constant currency) as compared to the fourth quarter of 2004. Dialysis Services revenue reached $208 million, an increase of 11% (15% at constant currency). Dialysis Products revenue increased by 5% to $370 million (10% at constant currency). Earnings Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. (EBIT EBIT See: Earnings Before Interest and Taxes EBIT See earnings before interest and taxes (EBIT). ) increased by 7% to $244 million. Operating income for the fourth quarter 2005 includes $14 million of one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. costs associated with the transformation of Fresenius Fresenius may mean:
When a person begins a civil lawsuit, the person enters into a process called litigation. . Excluding one-time costs, operating income for the fourth quarter 2005 increased by 14% to $258 million. This very good performance resulted in an operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: of 14.6% as compared to 13.9% for the same quarter in 2004. Compared to the fourth quarter 2004, the operating margin in North America increased by 50 basis points to 14.5%. In our International segment, the operating margin increased by 210 basis points to 17.4%. Our strong operational performance in the International segment was positively impacted by better production efficiencies, a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. environment in major dialysis service countries and foreign currency gains. Net interest expense remained unchanged at $46 million for the fourth quarter of 2005 as compared to the same quarter in 2004. Income tax expense was $82 million in the fourth quarter of 2005, as compared to $72 million in the fourth quarter of 2004, reflecting effective tax rates of 41.3% and 39.8%, respectively. Net income for the fourth quarter 2005 was $116 million, an increase of 7%. Excluding one-time costs, net income increased by 18% to $127 million. Earnings per share (EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ) for the fourth quarter of 2005 rose by 5% to $1.18 per ordinary share ($0.39 per American Depositary Share American Depositary Share (ADS) Foreign stock issued in the US and registered in the ADR system. (ADS)), as compared to $1.12 ($0.37 per ADS) for the fourth quarter of 2004. The weighted average number of shares outstanding for the fourth quarter of 2005 was approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 97.6 million shares, as compared to 96.3 million shares for the fourth quarter 2004. The increase in shares outstanding results from stock option exercises in 2005. Cash Flow In the fourth quarter of 2005, the Company generated $200 million in net cash from operations, or 11.3% of revenue, which is at the high end of our expectations. A total of $135 million, net of disposals, was used for capital expenditures. Free Cash Flow before acquisitions was $65 million for the fourth quarter of 2005. Days Sales Outstanding In accountancy, Days Sales Outstanding is a company's average collection period. A low figure indicates that the company collects its outstanding receivables quickly. Typically it is looked at either quarterly or yearly (90 or 365 days). (DSO See CSO. ) in the fourth quarter of 2005 remained unchanged at 82 days from the third quarter of 2005 as a result of strong cash collection efforts. A total of $39 million in cash was used for acquisitions. Full Year 2005: Earnings and Revenue For the full year 2005, net income was $455 million, up 13% from 2004. Excluding one-time costs, net income increased by 17% to $472 million. Net revenue was $6,772 million, up 9% compared to 2004. Adjusted for currency, net revenue rose 8%. Operating income (EBIT) increased by 10% to $939 million. Operating income for the full year 2005 includes $22 million of one-time costs associated with the transformation of Fresenius Medical Care's legal form into a Kommanditgesellschaft auf Aktien and related legal fees and costs concerning the settlement of shareholder litigation. Excluding one-time costs, operating income increased by 13% to $961 million, resulting in an operating margin of 14.2% as compared to 13.7% for the year 2004. Net interest expense for the full year 2005 decreased by 6% to $173 million. Income tax expense was $309 million for the full year as compared to $265 million in 2004. This reflects an effective tax rate of 40.3% for 2005. For the full year 2005, earnings per ordinary share rose by 13% to $4.68 ($1.56 per ADS). The weighted average number of shares outstanding during 2005 was approximately 96.8 million. Cash Flow Cash from operations during the full year 2005 was $670 million as compared to $828 million for 2004. This decrease was mainly due to income tax payments for prior years in Germany This is a list of years in Germany. See also the timeline of German history. For only articles about years in Germany that have been written, see .
A total of $297 million was used for capital expenditures, net of disposals. Free Cash Flow before acquisitions for 2005 was $373 million as compared to $567 million in 2004. Net cash used for acquisitions was $125 million in 2005. For a complete overview of the fourth quarter and the full year 2005, please refer to the appendix appendix, small, worm-shaped blind tube, about 3 in. (7.6 cm) long and 1-4 in. to 1 in. (.64–2.54 cm) thick, projecting from the cecum (part of the large intestine) on the right side of the lower abdominal cavity. . Patients - Clinics - Treatments As of December December: see month. 31, 2005, Fresenius Medical Care treated approximately 131,450 patients worldwide, which represents a 6% increase in patients. North America provided dialysis treatments for more than 89,300 patients (up 3%) and the International segment served approximately 42,150 patients (up 11%). As of December 31, 2005, the Company operated a total of 1,680 clinics worldwide, comprised of 1,155 clinics, an increase of 2% in North America, and 525 clinics, an increase of 11%, in the International segment. Fresenius Medical Care delivered approximately 19.73 million dialysis treatments worldwide in 2005, which represents an increase of 5% year over year. North America accounted for 13.47 million treatments, an increase of 4%, and the International segment delivered 6.26 million treatments, an increase of 8% over last year. Dividends The Company will continue to follow an earnings-driven dividend policy. For the ninth consecutive year, shareholders can expect to receive an increased annual dividend for the fiscal year 2005. At the Annual General Meeting to be held on May 09, 2006, shareholders will be asked to approve a dividend of EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 1.23 per ordinary share, an increase of 10% from 2004 (EUR 1.12) and EUR 1.29 per preference share, an increase of 9% from 2004 (EUR 1.18). Renal renal /re·nal/ (re´n'l) pertaining to the kidney. re·nal adj. Of or in the region of the kidneys. Renal Relating to the kidney. Care Group Acquisition On February February: see month. 15, 2006, the Company announced that its wholly-owned subsidiary, Fresenius Medical Care Holdings, Inc. and Renal Care Group, Inc. (RCG RCG Responsible Conduct of Gambling RCG Revolutionary Communist Group (Northern Ireland) RCG Raiffeisen Central Genossenschaft (German: Raiffeisen Cooperative) RCG Race, Class and Gender ) have signed an agreement to sell a total of approximately 100 dialysis clinics to National Renal Institutes, Inc., a wholly-owned subsidiary of DSI (Dynamic Systems Initiative) An umbrella term for a suite of Microsoft products that help manage the Windows environment in large enterprises. DSI was introduced in 2003. Holding Company, Inc. The purchase price for the clinics is approximately $450 million to be paid in cash, subject to post-closing adjustments for working capital and other routine matters. The sale of the clinics is expected to close shortly after the completion of Fresenius Medical Care's acquisition of Renal Care Group, Inc. The execution of this agreement is an important step toward concluding the review by the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Federal Trade Commission (FTC FTC See Federal Trade Commission (FTC). ) of Fresenius Medical Care's acquisition of Renal Care Group. The completion of the merger with Renal Care Group is targeted to close on or before March 31, 2006, subject to meeting all closing conditions including final approval by the FTC. Transformation of Legal Form to a KGaA and Conversion of Preference Shares into Ordinary Shares Within the 4-week tender period ended February 3, 2006, approximately 96% of all outstanding preference shares were tendered for conversion into ordinary shares. This includes tenders of roughly 92% of outstanding preference shares represented by American Depositary Shares (ADS). The transformation into a Kommanditgesellschaft A Kommanditgesellschaft is the German name for a limited partnership and is used in German, Austrian and some other European legal systems. Partnerships may be formed in the legal forms of General Partnership (Offene Handelsgesellschaft, OHG) or Limited Partnership auf Aktien (KGaA - partnership limited by shares) and the conversion of preference shares into ordinary shares became effective upon registration with the commercial register of the local court (Amtsgericht Amtsgericht is German for Local District Court, situated in Germany in almost every larger capital of a rural district. It mainly acts in Civil and Criminal law affairs. The German Amtsgericht may be compared to the British Magistrates' Court. ) in Hof Hof (hōf), city (1994 pop. 52,720), Bavaria, E central Germany, on the Saale River, near the Czech border. The city's industries produce textiles, beer, and machinery. Hof was first mentioned in the early 13th cent. an der Saale Saale (zäl`ə), river, c.265 mi (430 km) long, rising in the Fichtelgebirge, central Germany, and flowing generally N through E central Germany, past Jena, Naumberg (the head of navigation), and Halle, to the Elbe River SE of Magdeburg. (Germany) on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant evening, February 10, 2006. As of February 10, 2006, the share capital of Fresenius Medical Care AG & Co. KGaA consists of 96,629,422 ordinary bearer shares Bearer share Security not registered on the books of the issuing corporation and thus payable to possessor of the shares. Negotiable without endorsement and transferred by delivery, thus avoiding some of the control associated with ordinary shares. and 1,132,757 non-voting non-voting adj non-voting shares → azioni fpl senza diritto di voto preference bearer shares. Outlook for 2006 For the full year 2006, the Company expects revenue growth at constant currencies of approximately 25% on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis, giving effect to the RCG merger as compared to 2005 reported revenues. Pro forma amounts assume consolidation of RCG's operations into Fresenius Medical Care for the full twelve months of 2006. For the full year 2006, the Company expects to report revenue of more than $8 billion. The Company's projected net income growth on a pro forma basis for 2006 is expected to be between 10 and 15 percent, based on the $472 million net income excluding one-time costs, achieved in 2005. Guidance provided by the Company does not take into effect any expected one-time items and the change of accounting principle for stock options - SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 123(R) in the fiscal year 2006. The Company expects the after tax impact of the one-time items and SFAS 123(R) to be around $50 million. In addition in 2006, the Company expects capital expenditures on a pro forma basis to be approximately $450 million, and approximately $100 million for acquisitions. Ben Lipps Lipps may refer to:
Video Webcast Fresenius Medical Care will hold an analyst meeting at its headquarters in Bad Homburg, Germany, to discuss the results of the fourth quarter and full year of 2005 on February 22, 2006, at 3.15 p.m. CET CET abbr. Central European Time CET Central European Time CET n abbr (= Central European Time) → hora de Europa central CET abbr / 9.15 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy . The Company invites investors to view the live video webcast of the meeting at the Company's website www.fmc-ag.com in the "Investor Relations Investor relations The process by which the corporation communicates with its investors. " section. A replay will be available shortly after the meeting. Fresenius Medical Care is the world's largest, integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure Chronic Kidney Failure Definition Chronic kidney failure occurs when disease or disorder damages the kidneys so that they are no longer capable of adequately removing fluids and wastes from the body or of maintaining the proper level of certain , a condition that affects more than 1,400,000 individuals worldwide. Through its network of approximately 1,680 dialysis clinics in North America, Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. ,
Asia-Pacific The term Asia-Pacific generally applies to littoral East Asia, Southeast Asia and Australasia near the Pacific Ocean, plus the states in the ocean itself (Oceania). and Africa, Fresenius Medical Care provides dialysis
treatment to approximately 131,450 patients around the globe. Fresenius
Medical Care is also the world's leading provider of dialysis
products such as hemodialysis machines, dialyzers and related disposable
products Disposable products are items that are not intended by the manufacturer to be reused more than once or a few times as compared to more permanent serviceable and reusable items. Some products that have disposable versions are:
This release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms Regulatory Reform concerns improvements to the quality of government regulation. At the international level, the "OECD Regulatory Reform Programme is aimed at helping governments improve regulatory quality -- that is, reforming regulations that raise unnecessary obstacles to , foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.
Fresenius Medical Care Three Months Ended
Statement of Earnings December 31,
------------------------------------------------------------------
(in US-$ thousands, except 2005 2004 % Change
share and per share data)
Net revenue
Dialysis Care 1,256,776 1,167,186 7.7%
Dialysis Products 515,594 472,840 9.0%
Total net revenue 1,772,370 1,640,026 8.1%
Cost of revenue 1,158,267 1,078,358 7.4%
Gross profit 614,103 561,668 9.3%
Selling, general and
administrative 359,390 321,050 11.9%
Research and development 10,859 13,195 -17.7%
Operating income (EBIT) 243,854 227,423 7.2%
Interest income (6,913) (3,510) 96.9%
Interest expense 53,344 49,897 6.9%
Interest expense, net 46,431 46,387 0.1%
Earnings before income taxes
and minority interest 197,423 181,036 9.1%
Income tax expense 81,592 72,027 13.3%
Minority interest 299 819 -63.5%
Net income 115,532 108,190 6.8%
Operating income (EBIT) 243,854 227,423 7.2%
Depreciation and amortization 68,153 61,219 11.3%
EBITDA 312,007 288,642 8.1%
Total bad debt expenses 38,732 36,729
Earnings per Ordinary share $1.18 $1.12 5.4%
Earnings per Ordinary ADS $0.39 $0.37 5.4%
Earnings per Preference share $1.20 $1.14 5.1%
Earnings per Preference ADS $0.40 $0.38 5.1%
Weighted average number
of shares
Ordinary shares 70,000,000 70,000,000
Preference shares 27,610,971 26,278,118
Percentages of revenue
Cost of revenue 65.4% 65.8%
Gross profit 34.6% 34.2%
Selling, general and
administrative 20.3% 19.6%
Research and development 0.6% 0.8%
Operating income (EBIT) 13.8% 13.9%
Interest expense, net 2.6% 2.8%
Earnings before income taxes
and minority interest 11.1% 11.0%
Income tax expense 4.6% 4.4%
Minority interest 0.0% 0.0%
Net income 6.5% 6.6%
EBITDA 17.6% 17.6%
------------------------------------------------------------------
Fresenius Medical Care Twelve Months Ended
Statement of Earnings December 31,
----------------------------------------------------------------------
(in US-$ thousands, except 2005 2004 % Change
share and per share data)
Net revenue
Dialysis Care 4,866,833 4,501,197 8.1%
Dialysis Products 1,904,986 1,726,805 10.3%
Total net revenue 6,771,819 6,228,002 8.7%
Cost of revenue 4,439,154 4,142,117 7.2%
Gross profit 2,332,665 2,085,885 11.8%
Selling, general and administrative 1,342,792 1,182,176 13.6%
Research and development 50,955 51,364 -0.8%
Operating income (EBIT) 938,918 852,345 10.2%
Interest income (18,187) (13,418) 35.5%
Interest expense 191,379 197,164 -2.9%
Interest expense, net 173,192 183,746 -5.7%
Earnings before income taxes
and minority interest 765,726 668,599 14.5%
Income tax expense 308,748 265,415 16.3%
Minority interest 2,026 1,186 70.8%
Net income 454,952 401,998 13.2%
Operating income (EBIT) 938,918 852,345 10.2%
Depreciation and amortization 251,452 232,586 8.1%
EBITDA 1,190,370 1,084,931 9.7%
Total bad debt expenses 140,799 131,257
Earnings per Ordinary share $4.68 $4.16 12.6%
Earnings per Ordinary ADS $1.56 $1.39 12.6%
Earnings per Preference share $4.75 $4.23 12.4%
Earnings per Preference ADS $1.58 $1.41 12.4%
Weighted average number
of shares
Ordinary shares 70,000,000 70,000,000
Preference shares 26,789,816 26,243,059
Percentages of revenue
Cost of revenue 65.6% 66.5%
Gross profit 34.4% 33.5%
Selling, general and administrative 19.8% 19.0%
Research and development 0.8% 0.8%
Operating income (EBIT) 13.9% 13.7%
Interest expense, net 2.6% 3.0%
Earnings before income taxes
and minority interest 11.3% 10.7%
Income tax expense 4.6% 4.3%
Minority interest 0.0% 0.0%
Net income 6.7% 6.5%
EBITDA 17.6% 17.4%
----------------------------------------------------------------------
Fresenius Medical Care Three Months Ended
Segment and Other Information December 31,
-------------------------------------------------------------------
(in US-$ million) 2005 2004(1) % Change
Net revenue
North America 1,194 1,099 8.7%
International 578 541 6.9%
Total net revenue 1,772 1,640 8.1%
Operating income (EBIT)
North America 173 154 12.4%
International 101 83 22.0%
Corporate (30) (10) 228.0%
Total operating income (EBIT) 244 227 7.2%
Operating income (EBIT)
in percentage of revenue
North America 14.5% 14.0%
International 17.4% 15.3%
Total 13.8% 13.9%
Employees
Full-time equivalents
-------------------------------------------------------------------
Fresenius Medical Care Twelve Months Ended
Segment and Other Information December 31,
---------------------------------------------------------------
(in US-$ million) 2005 2004(1) % Change
Net revenue
North America 4,578 4,248 7.7%
International 2,194 1,980 10.8%
Total net revenue 6,772 6,228 8.7%
Operating income (EBIT)
North America 644 587 9.6%
International 362 300 20.6%
Corporate (67) (35) 89.9%
Total operating income (EBIT) 939 852 10.2%
Operating income (EBIT)
in percentage of revenue
North America 14.1% 13.8%
International 16.5% 15.2%
Total 13.9% 13.7%
Employees
Full-time equivalents 47,521 44,526
---------------------------------------------------------------
(1) The management responsibility for the Mexican business has been
transferred from the segment International to the segment North
America starting January 1, 2005. 2004 segment information has been
restated accordingly.
Fresenius Medical Care
Reconciliation of non US-GAAP
financial measures to the most
directly comparable US-GAAP Three Months Ended
financial measures December 31,
-------------------------------------------------------------------
(in US-$ million) 2005 2004(1) % Change
Operating performance
before one-time costs(2)
Operating income (EBIT) 244 227 7%
One-time costs(3) 14 0
Operating income (EBIT)
excluding one-time costs(2) 258 227 14%
Percent of revenue 14.6% 13.9%
Net income 116 108 7%
One-time costs(3) 11 0
Net income
excluding one-time costs(2) 127 108 18%
Segment information
North America
Net revenue 1,194 1,099
Costs of revenue and
research and development 838 782
Selling, general and
administrative 183 163
Costs of revenue and
operating expenses 1,021 945
Operating income (EBIT) 173 154
Dialysis Products revenue
incl. and excl. internal sales
North America
Dialysis Products revenue
incl. internal sales 237 212
less internal sales (92) (92)
Dialysis Products external sales 145 120
International
Dialysis Products revenue
incl. internal sales 421 391
less internal sales (51) (38)
Dialysis Products external sales 370 353
------------------------------------------------------------------
Twelve Months Ended
December 31,
-----------------------------------
(in US-$ million) 2005 2004(1) % Change
Operating performance
before one-time costs(2)
Operating income (EBIT) 939 852 10%
One-time costs(3) 22 0
Operating income (EBIT)
excluding one-time costs(2) 961 852 13%
Percent of revenue 14.2 13.7
Net income 455 402 13%
One-time costs(3) 17 0
Net income
excluding one-time costs(2) 472 402 17%
Annualized EBITDA
Operating income (EBIT)
last twelve months 939 852
Depreciation and amortization
last twelve months 251 233
Non-cash charges 14 13
Annualized EBITDA 1,204 1,098
----------------------------------------------------------------------
(1) The management responsibility for the Mexican business has been
transferred from the segment International to the segment North
America starting January 1, 2005. 2004 segment information has
been restated accordingly.
(2) These non US-GAAP financial measures are provided to assist
readers in evaluation of Fresenius Medical Care's underlying
operating performance before this non-recurring item.
(3) One-time costs for transformation of legal form and the settlement
and related legal fees of the shareholders suit.
Fresenius Medical Care December 31, December 31,
Balance Sheet
----------------------------------------------------------------------
(in US-$ million) 2005 2004
Assets
Current assets 2,461 2,446
Intangible assets 4,043 4,047
Other non-current assets 1,479 1,469
Total assets 7,983 7,962
Shareholders' equity and liabilities
Current liabilities 1,578 1,938
Long-term liabilities 2,431 2,389
Shareholders' equity 3,974 3,635
Total Shareholders' equity and liabilities 7,983 7,962
Equity/assets ratio: 50% 46%
Debt
Short-term borrowings 151 419
Short-term borrowings from related parties 19 6
Current portion of long-term debt and capital
lease obligations 126 230
Long-term debt and capital lease obligations,
less current portion 707 545
Trust Preferred Securities 1,188 1,279
Total debt 2,191 2,479
----------------------------------------------------------------------
Fresenius Medical Care
Cash Flow Statement 2005 2004
------------------------------------------------------------- -------
Twelve Months Ended December 31,
(in US-$ million)
Operating activities
Net income 455 402
Depreciation / amortization 251 233
Change in working capital and other non-cash items (36) 193
Cash Flow from operating activities 670 828
Investing activities
Purchases of property, plant and equipment (315) (279)
Proceeds from sale of property, plant and equipment 18 18
Capital expenditures, net (297) (261)
Free Cash Flow 373 567
Acquisitions, net of cash acquired (125) (104)
Free Cash Flow after investing activities 248 463
Financing activities
Change in accounts receivable securitization program (242) 178
Change in intercompany debt 14 (24)
Change in other debt 65 (488)
Proceeds from exercise of stock options 80 4
Dividends paid (137) (122)
Cash Flow from financing activities (220) (452)
Effects of exchange rates on cash (2) 0
Net increase in cash 26 11
Cash at beginning of period 59 48
Cash at end of period 85 59
----------------------------------------------------------------------
Fresenius Medical Care
Quarterly Performance Scorecard - Revenue
----------------------------------------------------------------------
Three months ended December 31, 2005 cc 2004(1) cc
(in US-$ thousands, except per-
treatment revenue)
North America
Net revenue 1,194,127 1,098,878
Growth year-over-year 8.7% 10.1%
Dialysis Care 1,048,708 979,329
Growth year-over-year 7.1% 10.3%
U.S. per treatment 302 290
Per treatment 299 288
Sequential growth 1.0% -0.6%
Growth year-over-year 3.7% 3.6%
Dialysis Products
incl. internal sales 237,281 212,148
Growth year-over-year 11.8% 0.3%
External sales 145,419 119,549
Growth year-over-year 21.6% 8.5%
International
Net revenue 578,244 541,149
Growth year-over-year 6.9% 12.2% 19.2% 10.5%
Dialysis Care 208,069 187,858
Growth year-over-year 10.8% 15.4% 25.7% 16.8%
Per treatment 127 133 126 117
Sequential growth -2.0% 5.5%
Growth year-over-year 0.7% 4.9% 19.8% 11.3%
Dialysis Products
incl. internal sales 421,368 390,829
Growth year-over-year 7.8% 13.4% 15.0% 6.5%
External sales 370,175 353,291
Growth year-over-year 4.8% 10.4% 16.0% 7.5%
----------------------------------------------------------------------
cc = at constant exchange rates
(1) The management responsibility for the Mexican business has been
transferred from the segment International to the segment North
America starting January 1, 2005. 2004 segment information has been
restated accordingly.
Fresenius Medical Care
Quarterly Performance Scorecard - Dialysis Care Volume
----------------------------------------------------------------------
Three months ended December 31, 2005 2004(1)
North America
Number of treatments 3,435,057 3,319,767
Treatments per day 43,477 42,018
Per day sequential growth 0.1% 1.2%
Per day year-over-year growth 3.5% 3.7%
of which:
- Acquisitions 1.4% 1.1%
- Same store growth year-over-year 2.8% 3.4%
- Adjustment for closed/sold facilities, yield
and other -0.7% -0.8%
International
Number of treatments 1,634,687 1,485,863
Same store growth year-over-year 7.6% 3.3%
----------------------------------------------------------------------
Fresenius Medical Care
Quarterly Performance Scorecard - Expenses
----------------------------------------------------------------------
Three months ended December 31, 2005 2004(1)
North America
Costs of revenue and operating expenses
Percent of revenue 85.5% 86.0%
Selling, general and administrative
Percent of revenue 15.3% 14.9%
Bad debt expenses
Percent of revenue 3.1% 2.6%
Dialysis Care operating expenses/Treatment (in US-$) 256 250
Sequential growth 0.8% -0.7%
Growth year-over-year 2.5% 4.2%
Total Group
Costs of revenue and operating expenses
Percent of revenue 86.2% 86.1%
Selling, general and administrative
Percent of revenue 20.3% 19.6%
Effective tax rate 41.3% 39.8%
----------------------------------------------------------------------
(1) The management responsibility for the Mexican business has been
transferred from the segment International to the segment North
America starting January 1, 2005. 2004 segment information has been
restated accordingly.
Fresenius Medical Care
Quarterly Performance Scorecard - Cash Flow/Investing Activities
----------------------------------------------------------------------
Three months ended December 31, 2005 2004(1)
(in US-$ thousands, except number of de novos)
Total Group
Operating Cash Flow 200,314 267,793
Percent of revenue 11.3% 16.3%
Free Cash Flow, before acquisitions 64,840 150,534
Percent of revenue 3.7% 9.2%
Acquisitions, net 39,244 30,512
Capital expenditures, net 135,474 117,259
Percent of revenue 7.6% 7.1%
Maintenance(2) 61,161 35,474
Percent of revenue 3.5% 2.2%
Growth 74,313 52,400
Percent of revenue 4.2% 3.2%
Lease Buy-Out - 29,385
Percent of revenue - 1.8%
Number of de novos 14 17
North America 6 10
International 8 7
----------------------------------------------------------------------
Fresenius Medical Care
Quarterly Performance Scorecard - Balance Sheet
----------------------------------------------------------------------
Three months ended December 31, 2005 2004(1)
Total Group
Debt (in US-$ million) 2,191 2,479
Debt/EBITDA 1.8 2.3
North America
Days sales outstanding 63 67
Sequential development 0.0% 1.5%
Year-over-year development -6.0% -6.9%
International
Days sales outstanding 120 119
Sequential development -1.6% -4.0%
Year-over-year development 0.8% -6.3%
----------------------------------------------------------------------
(1) The management responsibility for the Mexican business has been
transferred from the segment International to the segment North
America starting January 1, 2005. 2004 segment information has been
restated accordingly.
(2) Replacement and modernization of existing assets.
Fresenius Medical Care
Quarterly Performance Scorecard
----------------------------------------------------------------------
Three months ended December 31, 2005 2004
Clinical Performance
North America (U.S.)
Urea reduction (greater than)= 65% 91% 91%
Single Pool Kt/v (greater than) 1.2 94% 94%
Hemoglobin (greater than)= 11g/dl 82% 82%
Albumin (greater than)= 3.5 g/dl (a) 79% 80%
Hospitalization days per patient (12 months ending
Dec. 31,) 11.9 13.1
Demographics
North America (U.S.)
Average age (yr) 61 61
Average time on dialysis (yr) 3.4 3.4
Average body weight (kg) 77 77
Prevalence of diabetes 52% 52%
----------------------------------------------------------------------
(a) International standard BCR CRM470
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion