Gambro Three Month Report January - March 2002.Business/Health Editors STOCKHOLM Stockholm (stŏk`hôlm'), city (1995 pop. 692,954), capital of Sweden and of Stockholm co., E Sweden, situated where Lake Mälaren flows into the Baltic Sea. , Sweden--(BUSINESS WIRE)--April 26, 2002 Gambro Gambro is a Swedish medical technology company funded by Holger Crafoord 1964. Among their products are machines used for dialysis. Gambro divested its chain of dialysis clinics in North America to Davita in 2005. Healthcare, (GAMBa.ST)(GAMBb.ST)-- - Group revenues increased 12% - Operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before , EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become , up 6% with improvements in all business areas - Strong operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements.
MSEK January-March Currency
2002 2001 Change adjusted
----------------------------------------------------------------------
Revenues 6,909 6,180 +12% +7%
EBITDA 1) 1,106 1,046 +6% +1%
EBITDA margin 16.0% 16.9%
Operating cash flow 144 -430
Earnings per share (EPS) SEK 0.26 0.32 -19%
Cash earnings 2) per share (CEPS) SEK 2.35 2.14 +10%
----------------------------------------------------------------------
1) Earnings before depreciation and amortization
2) Net income plus depreciation and amortization
First quarter highlights:
- Good organic revenue growth, balanced between all three
business areas.
- Revenue per treatment in the US improved to USD 246,
mainly due to improved treatment mix and continued ramp up
in the billing of laboratory services.
- Favorable sales development of synthetic dialyzers,
monitors, dry concentrates and PD fluids.
- Strong demand for Gambro BCT's machines, Trima and
Spectra.
- EBITDA margin somewhat lower for the Group.
- Gambro Healthcare's margin was negatively affected by
economic development in Argentina and a general downturn
in the non-US business. Country improvement programs are
in place.
- Gambro Renal Products' margin was stable and in line with
last year. Gambro BCT's margin dropped due to changes in
product and geographical sales mix.
"Our vision, strategies and programs are in place and are yielding
expected results. This has brought stability to the Group and provides
the basis for Gambro's striving for operational excellence. We are on
the right track for long-term growth and world class performance",
said Soren Mellstig, Gambro president and CEO.
Key data, present structure (excluding nonrecurring items)
----------------------------------------------------------------------
Jan-March April 2001- Jan-Dec
MSEK 2002 2001 March 2002 2001
----------------------------------------------------------------------
Revenues 6,909 6,180 27,449 26,720
Operating earnings
before depr. (EBITDA) 1,106 1,046 4,328 4,268
EBITDA margin 16.0% 16.9% 15.8% 16.0%
Operating earnings (EBIT) 386 420 1,436 1,470
EBIT margin 5.6% 6.8% 5.2% 5.5%
Earnings before tax (EBT) 248 263 689 704
Earnings per share
(EPS) SEK 1) 0.26 0.32 0.32 0.39
Earnings per share (EPS) SEK 1) 0.26 0.32 -1.29 -1.22
including nonrecurring items
Cash earnings per share
(CEPS) SEK 2) 2.35 2.14 8.71 8.50
Operating cash flow 3) 144 -430 563 -11
Operating cash flow per share 3) 0.42 -1.25 1.64 -0.03
Net debt 9,825 8,443 9,825 9,434
----------------------------------------------------------------------
1) After full tax
2) Net income plus depreciation and amortization divided by
number of shares
3) Cash flow before acquisitions/divestitures and taxes
FIRST QUARTER 2002
Gambro's first quarter 2002 revenues reached MSEK 6,909 (6,180)
corresponding to a growth of 12% (7%(a)). Overall Group revenues
developed positively on main markets in Europe and in the U.S. as well
as on prioritized markets in the rest of the world.
Growth was well balanced between the company's three business
areas. For Gambro Healthcare, revenues grew by 15% (10%(a)), including
strong organic growth and strong improvement in revenue per treatment
in the U.S. For Gambro Renal Products, revenues increased by 11%
(8%(a)). Internal sales grew by 58%(a), 25%(a) on a comparable base,
excluding effects of a change in reporting. Internal sales were driven
by strong sales of monitors to Gambro Healthcare in the U.S.
Operating margin, EBITDA, for the Group was 16.0 % (16.9%). Gambro
Healthcare experienced a somewhat reduced margin at 14.4% (14.6%),
with increased margin in the US business and a significantly lower
margin in the non-US business, mainly due to difficult business
conditions in South America. The product business areas, Gambro Renal
Products and Gambro BCT margin continued strong at 19.7% but was below
2001 first quarter's excellent margin at 20.7%. The group margin was
negatively affected by legal and administrative expenses of MSEK 31
related to the subpoena received in June 2001 by Gambro Healthcare US.
The group experienced strong operating cash flow, mainly due to
reduced trade receivables. Net debt on March 31 amounted to MSEK
9,825, an increase of MSEK 391 since the beginning of the year.
Despite an average net debt that was some MSEK 2,400 higher than the
first quarter 2001, financial net was improved to MSEK -138 (-157),
mainly as a result of lower US dollar interest rates.
(a) Currency adjusted
At the Annual General Meeting in March the proposed authority for
the Board to decide on the purchase and sale of the Company's own
shares was approved. In short this includes authority for the Board to
decide on the acquisition of own shares subject to certain conditions
as well as authority to dispose of own shares subject to certain
conditions.
Gambro announced in the beginning of April that it is financing a
professorship in nephrology, held by Professor Borje Haraldsson, at
the Sahlgrenska Academy at Gothenburg University in Sweden for a
period of five years. As a globally leading company in the care and
treatment of renal patients Gambro has for many years been cooperating
with prominent university hospitals all over the world. The goal is to
always be in the forefront of research in the renal care area.
OUTLOOK
The company reconfirms its overall objectives for the year 2002 -
to leverage the improved platform for growth and profitability. Focus
will also be to define the business model as an integrated service
provider and to explore new growth opportunities. The financial
objectives for the group in 2002 are to deliver a revenue growth of
8-10%, improve the operating margin trend and further improve
operating cash flow. The financial results on a group level will be
affected by costs related to the subpoena in Gambro Healthcare US.
BUSINESS AREAS
Gambro Healthcare
On March 31, Gambro operated 676 clinics, serving 52,160 patients
worldwide. During the first quarter 2002 one clinic was divested, two
were acquired, in Portugal and the US and no de novo clinics were
opened.
---------------------------------------------------------------------
Q1 Currency
MSEK 2002 2001 Nominal adjusted
----------------------------------------------------------------------
Revenues 4,256 3,692 +15% +10%
US 3,872 3,321 +17% +9%
Rest of the world 384 371 +4% +18%
----------------------------------------------------------------------
EBITDA(a) 613 537 +14% +9%
----------------------------------------------------------------------
EBITDA(a) margin 14.4% 14.6%
----------------------------------------------------------------------
(a) Operating earnings before depreciation and amortizations
----------------------------------------------------------------------
2002 2001
Q1 Q4 Q3 Q2 Q1
----------------------------------------------------------------------
Total number of
treatments in 1,819 1,856 1,807 1,787 1,686
Consolidated clinics
(thousand)
US 1,509 1,534 1,500 1,497 1,426
Rest of the world 310 322 307 290 260
----------------------------------------------------------------------
Revenue per treatment,
US (USD) of which is 246 242 234 233 239
Laboratory Services 9 6 4 3 10
----------------------------------------------------------------------
March 31 March 31, 2002 March 31, 2002
2002 2001 vs March 31, 2001 vs. Dec. 31 2001
----------------------------------------------------------------------
Total number of clinics 676 653 +23 +1
US 533 526 +7 -
Rest of the world 143 127 +16 +1
----------------------------------------------------------------------
Total number of
patients 52,160 48,800 +3,360 +1,280
US 41,110 39,500 +1,610 +1,060
Rest of the world 11,050 9,300 +1,750 +220
----------------------------------------------------------------------
Gambro Healthcare US first quarter 2002
Revenues per treatment in the US reached USD 246, a
quarter-on-quarter increase of USD 4 and a rise of USD 7 from the
first quarter of 2001. The good performance is due to improved
treatment mix, with good growth in acute treatments and a retail price
increase. The average revenue per treatment is also affected by a
strong ramp up in the billing from Laboratory Services reaching USD 9
per treatment in the quarter. Labor cost per treatment increased by
4.9 percent. The margin was also affected by a general EPO price
increase of 3.9 percent as from January 1, 2002, and no general
Medicare reimbursements increase this year.
Effective April 1, 2001, Gambro changed its laboratory revenue
recognition methodology so that it will only record tests that have
been billed, rather than recording revenue when tests have been
performed. Of the revenues recorded in the first quarter 2001 only a
very minor part was actually billed. For the first quarter this year
all recorded revenues were billed.
Subpoena
In June 2001, Gambro Healthcare, Inc. received a subpoena in
connection with an investigation by the United States Department of
Justice. The subpoena requested information and documentation from
Gambro Healthcare relating to various aspects of its dialysis
operations in the United States. MSEK 31 in legal fees and other costs
of collecting the information requested in the subpoena, was recorded
in the first quarter 2002 (in "Other"). Gambro Healthcare anticipates
that it will take through much of 2002 to complete its response to the
subpoena. The US government has not served Gambro Healthcare with any
claim or lawsuit. Depending on the results of its investigation, the
US government could seek material monetary penalties and other
remedies.
----------------------------------------------------------------------
Gambro patient outcomes October-December 2001(a)
United States Europe
----------------------------------------------------------------------
Demographics of patients (averages)
Age (years) 60.3 62.2
Time on dialysis (years) 2.6 4.4
Weight (kg) 74.3 65.6
Prevalence of diabetes 30% 15%
Outcomes
Kt/V (1) (average) 1.53 1.46
Kt/V >1.3 83% 76%
Urea reduction ratio (2) (average) 74% 72%
Albumin (3) >35 g/l 83% 87%
Hemoglobin (4) >11g/dl 77% 70%
Hematocrit (5) (average) 35% NA(b)
----------------------------------------------------------------------
(a) Latest period for which information is available.
(b) Not available
1) Kt/V is a method of assessing the quantity of dialysis
delivered. Most national standards recommend a minimum
acceptable target for Kt/V of 1.2 in a thrice-weekly
dialysis schedule.
2) Urea reduction ratio (URR) is a measure of how effectively
a dialysis treatment removes urea from the body. Most
national standards recommend a minimum URR of 65% in a
thrice-weekly dialysis schedule.
3) Albumin is the major plasma protein responsible for much
of the plasma colloid osmotic pressure, as it cannot pass
the wall of blood vessels. In dialysis patients, serum
albumin is used as a marker of nutrition and inflammation.
A serum albumin concentration of >35 g/l is generally
defined as adequate, although the target value depends on
the analysis method used.
4) Hemoglobin is the iron-containing protein in red blood
cells that transports oxygen in the body. Hemoglobin is
used as a marker of anemia management. The current target
for hemoglobin in dialysis patients is >11 g/dl.
5) Hematocrit is a measure of the volume fraction of red
blood cells. Hematocrit is used as a marker of anemia
management, mainly in the US. Most standards recommend
hematocrit in dialysis patients to be >33 %.
Gambro Healthcare International (non-US) first quarter 2002
-----------------------------------------------------------
Gambro Healthcare International's clinics are located in Europe
(104 clinics in ten countries), and include 33 clinics in Argentina,
four in Uruguay and two in Australia. During the first quarter this
year revenues and margins were primarily affected by economic
development in Argentina. Revenue growth in Europe was mainly related
to previous acquisitions and increases in reimbursement rates in some
countries.
The Renal Services Development segment was established on January
1, 2002, to capture new types of customer needs, especially in
emerging markets through an integrated approach combining the
strengths of Gambro Healthcare International and Gambro Renal
Products.
During the first quarter several country improvement programs were
in place, both in Europe and South America, focusing on improving
operational performance, organic growth, quality outcomes and
efficiencies on labor and capacity costs. Measures in the first
quarter led to improvements in cash flow as a result of strong
collections of receivables.
Gambro Renal Products and Gambro BCT
----------------------------------------------------------------------
Q1 Currency
MSEK 2002 2001 Nominal adjusted
----------------------------------------------------------------------
Revenues
Gambro Renal Products (GRP) 2,531 2,283 +11% +8%
Gambro BCT (BCT) 480 422 +14% +9%
Total (GRP+BCT) 3,011 2,705 +11% +8%
----------------------------------------------------------------------
EBITDA(a) (GRP + BCT) 592 561 +6% 0%
----------------------------------------------------------------------
EBITDA(a) margin (GRP+ BCT) 19.7% 20.7%
----------------------------------------------------------------------
(a) Operating earnings before depreciation and amortizations
Gambro Renal Products
Gambro Renal Products first quarter 2002
Revenues showed a growth of 11%, including strong growth for
synthetic dialyzers and monitors and continued good growth for dry
concentrates. The recently introduced PD fluid, Gambrosol trio,
continued very successful sales development. Profitability for Gambro
Renal Products was at the same high level as last year, and improved
from fourth quarter 2001. Internal sales continued to grow and were up
by 58%, currency adjusted, compared to the first quarter last year. On
a comparable basis the growth was 25% currency adjusted. The
difference is made up of internal sales of spare parts that
historically has been accounted for net. Nevertheless, the strong
increase was mainly related to increased sales of monitors to Gambro
Healthcare in the US.
The sales trend was very favorable in South America, the Nordic
countries, Portugal and the UK. Sales also developed very well in
several markets in Asia, such as South Korea, Taiwan and China. Sales
in Japan were lower compared to an excellent first quarter last year.
Major markets in Europe continued to show a growth in line or above
general market growth of 5-7 percent.
Gambro Renal Products and Gambro BCT combined operating earnings
before depreciation increased 6%, from MSEK 561 to MSEK 592, while the
operating margin (EBITDA) reached 19.7% compared to 20.7% first
quarter 2001. The margin has been kept at a level of around 20 percent
eight quarters in a row, despite a price pressure of about 2-3 percent
per year.
During the quarter Gambro Renal Products launched a new
biocompatible surface treatment, the Dolphin coating. The Dolphin
coating results in a reduced risk of clotting and clotting deposit on
catheters, resulting in higher safety for patients. Moreover the
application of the Dolphin coating to the Gambro catheter GamCath is
expected to offer a prolonged duration of use compared to uncoated
catheters.
Successful pilot tests of VMI, Vendor Managed Inventory, have
taken place at Gambro Healthcare clinics in Sweden. The VMI concept is
a result of collaboration between Gambro Renal Products and Gambro
Healthcare International. VMI is to be fully implemented in Sweden and
Hungary during this year. The pilot tests have shown that the product
stock can be reduced by about 50 percent at the clinics, resulting in
significant cost savings.
Gambro BCT
Gambro BCT first quarter 2002
Revenues increased by 14%. Sales in the US showed a soft
development due to a lower number of blood donations than previous
quarters. Sales of core products across most countries in Europe
delivered strong growth, especially in major markets like France and
Spain. In the U.K. the conversion to universal leukoreduction resulted
in higher growth due to a competitive advantage for Gambro BCT. The
Americas (excluding the US) and important markets in Asia like Korea
and Taiwan showed significant growth. Equipment sales in Japan showed
excellent performance due to focused effort in the market.
Gambro BCT and Gambro Renal Products, combined operating earnings
before depreciation increased 6%, from MSEK 561 to MSEK 592, while the
operating margin (EBITDA) reached 19.7% compared to 20.7% first
quarter 2001. The EBITDA margin for Gambro BCT was lower compared to a
very strong first quarter last year.
Blood Banking Technology
In March, Gambro BCT was successfully awarded a three-year
contract to supply the NBS, National Blood Service of the U.K., with
apherisis products and solutions. This will involve 90 pieces of
equipment, both Spectra and Trima.
In the first quarter two new Gambro BCT products were approved for
use by the FDA. The first was the TLR red cell filter, manufactured by
Pall Corporation that will be incorporated into both the Trima
platelet, plasma, and red cell disposable set and into the Trima red
cell and plasma disposable set. There is a global trend towards
leukoreduction of red cell components. The TLR red cell disposable
sets enable Gambro BCT to enter this growing market segment. The
second approval was ACDA, an anti-coagulant solution manufactured by
IVEX that will be used with Gambro BCT products. Both new products
help Gambro BCT expand its current product offering and develop global
market leadership further by helping to increase the safety, quality,
and quantity of the world's blood supply.
Gambro BCT acquired the assets of Sanguistech in 2001. Sales of
the initial product, trademarked Orbisac, are taking place in Sweden,
with other customers in validation. Further development of this
platform will allow the Company to enter the large global whole blood
processing market.
Therapeutic Specialties
Gambro BCT has expanded its distribution of the Eligix Cell
Separation System manufactured by BioTransplant, Inc. to now include
Canada, Latin America and Australia, in addition to Europe.
Pathogen Eradication Technology (PET)
The PET project is progressing according to plan. MSEK 30 (28) was
invested in the project during the first quarter. The plan is to
invest approximately MUSD 25 in total in the project during 2002 and
to initiate phase 1 clinical studies for the purification of platelets
during the year. These studies will be the first trials on humans. The
potential market for inactivation of viruses and bacteria is estimated
at approximately USD 3 billion. Gambro BCT will continuously evaluate
partnerships and alliances to capture the full opportunity of the PET
business.
Gambro BCT entered into a strategic partnership with Sangart, Inc.
last year, comprising an equity investment and a license for Sangart
to utilize Gambro BCT's PET technology for inactivation of viruses in
its production of hemoglobin-based products from human red blood
cells. Sangart Inc. has been successful in its pre-clinical work and
the Phase I clinical trials on humans were initiated in April this
year. As part of the ongoing partnership with Sangart, Gambro invested
an additional MSEK 6 into Sangart Inc. during the first quarter.
INVESTMENTS
Group investments net during the period amounted to MSEK 679
(761), which is made up of MSEK 723 (932) in gross investments and
MSEK 44 (171) in disposals and divestitures. The figures include
acquisitions, significantly referring to Gambro Healthcare, amounting
to MSEK 108 (338) and development costs capitalized in Gambro Renal
Products and Gambro BCT amounting to MSEK 46 (47).
The remaining amount is split between Gambro Renal Products by
MSEK 310, Gambro Healthcare by MSEK 230 and by Gambro BCT by MSEK 29.
Renal Products investments largely refer to new production capacity
for dialyzers in Germany and France that will be ready in the first
half of 2003 and solutions in Italy and the United States that will be
up and running in 2003-2004. In terms of Gambro Healthcare the
investments are largely referring to de novo clinics, replacement of
equipment in existing clinics and IT systems.
FINANCIAL POSITION
As of March 31, 2002, net debt (loans and accruals for pension
less cash and short-term investments) amounted to MSEK 9,825 (8,443).
Net debt during the first quarter increased by MSEK 391. Average net
debt during the quarter amounted to some MSEK 10,300 (7,900),
resulting in an average interest rate of approximately 5.2%, (6.8%).
Despite the increase in net debt the financial net declined to MSEK
-138 (-157) mainly as a result of reduced US dollar interest rates.
The equity/assets ratio at the close of this period was 57% (58%).
PERSONNEL
The total number of employees in the Gambro group increased by 128
during the quarter. By the end of the period, the total number of
employees amounted to 20,499.
EMPLOYEE STOCK OPTION PROGRAM
The Board of Gambro AB resolved to implement an employee stock
option program for 2002. The duration for the options is determined to
five years. In line with the existing program, the strike price was
set at 110% of the stock market price when launched. The program
encompasses 3.7 million underlying shares. The program will not have
any diluting impact for shareholders as the program has been hedged by
existing shares through an equity swap. The program for year 2002
corresponds to some 1.1 % of all shares in the Company; together with
existing programs, the total volume corresponds to some 2.8 %.
The allocation is intended to be made in the same way as for the
programs of the previous years, so that higher executives, totaling
some four hundred, are divided into four different categories
("bands"). The CEO constitutes the highest band, with an allocation
which the Board has decided to 111,875 options, while the remaining
management group in total will receive 350,000 options.
OTHER
The Gambro group applies recommendations by the Swedish Financial
Accounting Standards Council and statements by their emerging issues
task force. On January 1, 2002, seven new recommendations were
introduced, five of them were applied by Gambro as of 2001. Therefore
only two new recommendations are introduced this year; RR21, Borrowing
costs (The recommendation gives two alternatives, Gambro applies the
principal rule, implying that borrowing costs should be recorded in
the result for the related period. Gambro has used this principal
before) and RR23, Related party disclosures. The introduction of the
new recommendations has no effect on this years' nor earlier years'
results.
PARENT COMPANY
Parent Company earnings before tax and appropriations amounted to
MSEK 119 (87) for the first quarter 2002. The Parent Company's liquid
funds at the end of the quarter amounted to MSEK 90 (37).
AFTER THE CLOSING OF THE PERIOD
No significant events that affect the Group's or the Parent
Company's financial position have occurred since year end.
Stockholm, April 26, 2002
Soren Mellstig
President and CEO
This report has not been subject to examination by the Company's
auditors.
Gambro's financial information is also available on the Internet:
www.gambro.com
The company will host a conference call and web cast to present
its first quarter results today at 16:00 Central European time.
Teleconference callers should dial +44 (0)20 8781 0598 (if calling
from Europe) or +1 303 224 6999 (if calling from the US). Regarding
the web cast, please find all related information on Gambro's web
site: www.gambro.com/investors/.
Please note the change of reporting days
----------------------------------------
Six-month report: July 26, 2002
Nine-month report: October 25, 2002
Revenues by business area
----------------------------------------------------------------------
January-March Change in % Full year
MSEK 2002 2001 Nominal Currency 2001
adjusted
----------------------------------------------------------------------
Gambro Healthcare 4,256 3,692 +15% +10% 16,238
Gambro Renal Products 2,531 2,283 +11% +8% 9,663
Intra-Group -358 -217 +65% +58% -1,013
Total, Renal Care 6,429 5,758 +12% +7% 24,888
Gambro BCT 480 422 +14% +9% 1,832
----------------------------------------------------------------------
Total 6,909 6,180 +12% +7% 26,720
----------------------------------------------------------------------
Revenues by market
----------------------------------------------------------------------
January-March Change in % Full year
MSEK 2002 2001 Nominal Currency 2001.
adjusted
----------------------------------------------------------------------
Europe 1,833 1,668 +10% +8% 7,074
United States 4,471 3,844 +16% +9% 16,799
Asia, Pacific, RoW 605 668 -10% -3% 2,847
----------------------------------------------------------------------
Total 6,909 6,180 +12% +7% 26,720
----------------------------------------------------------------------
GAMBRO GROUP INCOME STATEMENT
----------------------------------------------------------------------
January-March April 2001- Full year
MSEK 2002 2001 March 2002 2001
----------------------------------------------------------------------
Revenues 6,909 6,180 27,449 26,720
Cost of sales -5,176 -4,649 -20,674 -20,147
----------------------------------------------------------------------
Gross earnings 1,733 1,531 6,775 6,573
Operating expenses -1,347 -1,111 -6,528 -6,292
----------------------------------------------------------------------
Operating earnings
(EBIT) (1) (2) 386 420 247 281
Financial items, net -138 -157 -455 -474
----------------------------------------------------------------------
Earnings before tax (EBT) 248 263 -208 -193
Minority interest -14 -9 -64 -59
Taxes -145 -142 -173 -170
----------------------------------------------------------------------
Net income (3) 89 112 -445 -422
----------------------------------------------------------------------
1) Earnings before
depreciation and 1,106 1,046 3,365 3,305
amortization (EBITDA)
2) Of which, nonrecurring items
Impairment, goodwill -228 -228
Impairment, other assets -62 -62
Reversal of provisions 27 27
Provision for lab. billing -927 -927
---------------------------------------------
-1,190 -1,190
Amortization, goodwill -279 -254 -1,161 -1,136
Depreciation,
other assets -441 -372 -1,729 -1,660
---------------------------------------------
-720 -626 -2,890 -2,796
3) Earnings per share
before and 0.26 0.32 -1.29 -1.22
after dilution (SEK)
Total number of shares outstanding
344,653,288 of which:
Series A: 250,574,090
Series B: 94,079,198
QUARTERLY DATA PER SEGMENT
2002 2001
MSEK Q1 Q 1 Q 2 Q 3 Q 4 Total
---------------------------------------------------------------------
Revenues
Gambro Renal Products 2,531 2,283 2,424 2,383 2,573 9,663
Gambro Healthcare 4,256 3,692 3,997 4,146 4,403 16,238
Gambro BCT 480 422 468 464 478 1,832
Intra-group -358 -217 -270 -248 -278 -1,013
-----------------------------------------------
Total Revenues 6,909 6,180 6,619 6,745 7,176 26,720
Operating earnings
- before depr. (EBITDA)
Products (GRP + BCT) 592 561 609 545 581 2,296
Healthcare 613 537 539 595 643 2,314
Nonrecurring items - - -927 - -35 -962
Other -99 -52 -73 -70 -148 -343
-----------------------------------------------
Total operating earnings
- before depr. (EBITDA) 1,106 1,046 148 1,070 1,041 3,305
margin % 16.0% 16.9% 2.2% 15.9% 14.5% 12.4%
margin excl
nonrecurring % 16.0% 16.9% 16.3% 15.9% 15.0% 16.0%
Operating earnings
- after depr. (EBIT)
Products (GRP + BCT) 329 355 367 297 335 1,354
Healthcare 160 131 91 129 131 482
Nonrecurring items - - -927 - -263 -1,190
Other -103 -66 -69 -75 -155 -365
------------------------------------------------
Total operating earnings
- after depr. (EBIT) 386 420 -538 350 49 281
margin % 5.6% 6.8% -8.1% 5.2% 0.7% 1.1%
margin excl
nonrecurring % 5.6% 6.8% 5.9% 5.2% 4.4% 5.5%
Financial net
Interest net -135 -135 -163 -199 -195 -692
Other financial items -3 -22 -18 -12 270(1) 218
------------------------------------------------
Financial net -138 -157 -181 -211 75 -474
------------------------------------------------
Earnings before tax (EBT) 248 263 -719 139 124 -193
---------------------------------------------------------------------
Nonrecurring items Q2 01 Q4 01Total 2001
----- ---------------
Provision for lab. billing -927 0 -927
Reversal of provisions 27 27
Asset impairment, other -62 -62
-35 -962
Asset impairment, goodwill -228 -228
-263 -1,190
1) Including a capital gain of MSEK 293, related to the
divestiture of shares in Thoratec Corp.
GAMBRO GROUP BALANCE SHEET
----------------------------------------------------------------------
March 31 March 31 December 31
MSEK 2002 2001 2001
----------------------------------------------------------------------
ASSETS
Fixed assets
Intangible assets (1) 17,603 18,024 18,107
Tangible assets 7,768 7,139 7,865
Shares and participations 216 188 236
Long-term receivables 2,648 2,788 2,274
---------------------------------------------------------------------
Total fixed assets 28,235 28,139 28,482
Current assets
Inventories 2,807 2,604 2,743
Trade receivables 6,302 7,135 6,335
Other current receivables 1,293 1,381 1,692
Liquid assets 554 957 899
---------------------------------------------------------------------
Total current assets 10,956 12,077 11,669
TOTAL ASSETS 39,191 40,216 40,151
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity (2) 22,101 23,232 22,571
Minority interests 180 208 182
Provisions 2,476 2,698 2,490
Long-term liabilities 8,151 8,118 8,650
Current liabilities 6,283 5,960 6,258
---------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 39,191 40,216 40,151
AND LIABILITIES
NET DEBT 9,825 8,443 9,434
1) Of which goodwill 16,593 17,345 17,166
2) Total number of shares outstanding,
344,653,288 (of which Series
A: 250,574,090, Series B: 94,079,198)
Shareholders' equity: Opening balance 22,571 21,897 21,897
Net income 89 112 -422
Translation
difference -559 1,602 1,475
Dividend -379 -379
-------------------------------------------------
Closing balance 22,101 23,232 22,571
STATEMENT OF CHANGES IN FINANCIAL POSITION
----------------------------------------------------------------------
January-March Full year
MSEK 2002 2001 2001
----------------------------------------------------------------------
Operating activities
Earnings before tax 248 263 -193
Adjustment for non-cash items
Depreciation and write-downs 721 626 3,024
Provisions 20 73 30
Unrealized exchange gains/losses 36 -626 113
Capital gains/losses 0 -2 -308
Non-distributed earnings
in associated companies 2 13 22
Paid income taxes -128 219 -25
----------------------------------------------------------------------
Cash flow from current
operations before changes
in operating capital 899 566 2,663
Changes in operating capital:
Inventories -123 -235 -198
Receivables -293 -964 253
Liabilities -338 461 -281
----------------------------------------------------------------------
Cash flow from operating
activities 145 -172 2,437
Investment activities
Investments in financial
fixed assets -20 -22 -222
Disposals of financial
fixed assets 0 22 334
Investments in intangible
fixed assets -219 -391 -1,654
Disposals of intangible
fixed assets 13 141 31
Investments in tangible
fixed assets -484 -519 -2,181
Disposals of tangible
fixed assets 31 8 96
----------------------------------------------------------------------
Cash flow from investment
activities -679 -761 -3,596
Financing activities
Change in loans 209 1,711 1,813
Dividend paid 0 -379 -379
----------------------------------------------------------------------
Cash flow from financing
activities 209 1,332 1,434
Cash flow this period -325 399 275
Liquid assets, opening balance 899 600 600
Currency effect in liquid assets -20 -42 24
----------------------------------------------------------------------
Liquid assets at closing balance 554 957 899
----------------------------------------------------------------------
Cash flow from operating
activities 145 -172 2,437
Cash flow from investment
activities -679 -761 -3,596
Add back: Change in
operating capital 754 738 226
Add back: Nonrecurring
working capital changes 0 0 990
Change in operating
working capital -248 -742 -1,084
Add back: Provisions
and Unrealized
exchange gains/losses -56 553 -143
Add back: Acquisitions/
divestitures net 100 173 934
Add back: Paid income taxes 128 -219 25
Net assets acquired
during the period 0 0 200
Operating cash flow 144 -430 - 11
Of which currency effects 218 -431 -619
----------------------------------------------------------------------
Gambro is a global medical technology and healthcare company with leading Gambro AB positions in 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 - services and products - and blood component technology. A public company (publ) Gambro Healthcare is one of the leading providers of kidney dialysis Dialysis, Kidney Definition Dialysis treatment replaces the function of the kidneys, which normally serve as the body's natural filtration system. services in Reg REG, n.pr See random event generator. no. 556041-8005 the world with more than 52,000 patients in more than 670 clinics worldwide. Jakobsgatan 6, P O Box 7373 Gambro Renal Products comprises dialyzers, 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. machines, blood lines Not to be confused with Blood Lines (novel). Blood Lines is a short story collection by British crime-writer Ruth Rendell, published in 1995. The title story features her detective Inspector Wexford, and the final story is the acclaimed novella "The Strawberry Tree". and SE-103 91 Stockholm dialysis concentrates. Gambro BCT BCT Brigade Combat Team BCT Basic Combat Training BCT Best Conventional Pollutant Control Technology (EPA) BCT Business Cards Tomorrow BCT Banque Centrale de Tunisie (Central Bank of Tunisia) is the market leader in separation and handling Sweden Sweden, Swed. Sverige, officially Kingdom of Sweden, constitutional monarchy (2005 est. pop. 9,002,000), 173,648 sq mi (449,750 sq km), N Europe, occupying the eastern part of the Scandinavian peninsula. of blood components. The group, with 2001 revenues of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. SEK SEK In currencies, this is the abbreviation for the Swedish Krona. 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. 27 billion Tel +46 8-613 65 00 (USD USD In currencies, this is the abbreviation for the U.S. Dollar. 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. 2.7 billion), has 20,500 employees in some 40 countries. Fax +46 8-611 28 30 Email info@gambro.com www.gambro.com |
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