- Revenue grew by 7.0%
- EBIT before special items grew by
76.3%
- FY 2015 outlook revised upward
Regulatory News:
Cegedim, a technology and services company committed to
innovation, posted consolidated first quarter 2015 revenues
excluding activities held for sale of €121.3 million, up 7.0%
on a reported basis and 4.9% like for like compared with the same
period in 2014. EBIT from continuing activities before special
items amounted to €8.2 million, up 76.3%. Thus, the EBIT margin
from continuing activities before special items came to 6.8% in the
first quarter of 2015, compared with 4.1% a year earlier.
Cegedim announced on April 1, 2015,
that it had completed of the disposal of its CRM and Strategic Data division to IMS Health for
a selling price of €396 million1. Consequently, its first
quarter 2015 Financial Statements are reported in compliance with
IFRS 5, which separates out non-current Assets Held for Sale.
Including activities held for sale, consolidated revenue came to
€234.9 million in first quarter 2015, up 9.3% on a reported basis
and 5.8% like for like compared with the same period a year
earlier. EBIT before special items amounted to €16.7 million, up
€14.4 million. Thus, the EBIT margin before special items came to
7.5% in Q1 2015, compared with 1.1% a year earlier.
Rating agency S&P upgraded its rating for Cegedim on April 13, 2015, to BB- with a positive
outlook.
As of its first quarter 2015 earnings release, Cegedim is raising its growth rate outlook for
consolidated EBIT from continuing activities before special items
from 5.0% to 10.0%. This follows the upward revision to its revenue
outlook on April 28, 2015.
- Simplified income statement
Q1 2015 Q1 2014
Δ
€m % €m %
Revenue 121.3 100.0
113.4 100.0 +7.0% EBITDA 19.1
15.8 13.6 12.0 +40.6% Depreciation (10.9) ─ (9.0) ─
+22.1%
Operating income before special items
8.2 6.8 4.7 4.1
+76.3% Special items (2.9) ─ (0.6) ─ +365.9%
Operating income 5.3 4.4
4.0 3.6 +32.3% Cost of net
financial debt (6.9) ─ (10.1) ─ (31.6)% Tax expenses (0.7) ─ (0.5)
─ +54.3%
Consolidated profit from continuing activities
(1.8) ─
(6.1) ─
n.m. Net earnings from activities held for sale
1.8 ─
(2.8) ─
n.m.
Profit attributable to the owners of the parent (0.0)
─ (9.0) ─ n.m.
In the first quarter of 2015, revenues from continuing
activities came to €121.3 million, up 4.9% on a like-for-like basis
compared with the year-earlier period. Acquisitions had virtually
no impact, and currencies had a positive impact of 2.1%, thus
revenue increased by 7.0% on a reported basis. Group revenue
including activities held for sale amounted to €223.0 million, up
9.3% on a reported basis and 5.8% like for like.
The like-for-like decline at the Healthcare Professionals
division was more than offset by increases at the Health Insurance,
HR and e-services and Cegelease divisions.
EBITDA increased by €5.5 million to €19.1 million; the
margin came to 15.8% at the end of March 2015 compared to 12.0% at
the end of March 2014. This EBITDA trend was attributable to drops
at the Healthcare professionals and
Cegelease divisions being more than
offset by EBITDA improvements at the Health Insurance, HR and
e-services and at the Activities not
allocated.
Special items at the end of March 2015 amounted to a charge of
€1.5 million, compared with a charge of €0.6 million one year
earlier.
The cost of financial debt decreased by €3.2 million, from €10.1
million for the first three months of 2014 to €6.9 million for the
first three months of 2015. This decrease reflects the increase in
income from cash and cash equivalents and in currency translation,
partially offset by an increase in debt interest payments.
Tax expense increased slightly by €0.3 million, from a charge of
€0.5 million at the end of March 2014 to a charge of €0.7 million
at the end of March 2015. This relative stability mainly reflects
stability in income taxes and a decrease of deferred taxes.
Consolidated net profit from continuing activities amounted to a
loss of €1.8 million, compared with a €6.1 million loss a year
earlier. This improvement in consolidated net loss reflected the
trends in revenue, EBIT, special items, cost of net financial debt
and tax expense based on the factors set out above.
The loss per share from continuing activities before special
items was €0.0 at the end of March 2015, compared with a €0.4 loss
at the end of March 2014.
Analysis of business trends by division
in €m
Revenue
EBIT before special items
EBITDA 1st Quarter 1st Quarter 1st Quarter
2015 2014 2015 2014 2015 2014 Health
Insurance, HR and e-services 54.0 49.8 4.5 0.9 8.4
4.4 Healthcare Professionals 37.2 36.9 3.7 4.6 6.5 7.0
Cegelease 29.3 25.9 0.1 1.3 3.8 3.9 Activities not allocated 0.8
0.8 0.0 (2.1) 0.5 (1.8)
Total from continuing activities
121.3 113.4 8.2 4.7 19.1
13.6 Activities held for sale 104.1 93.2 8.5 (2.4) 8.5 4.4
IFRS 5 restatement (2.5) (2.5) - - - -
Total Cegedim
223.0 204.1 16.7 2.3
27.6 18.0
Revenue by division differs slightly from that published on
April 28 owing to the restatement of revenues generated by
continuing activities with activities held for sale.
The divisions Technology and Reconciliation have been renamed
respectively Health Insurance, HR and e-services and Activities not
allocated to reflect to the best the extent of their offerings.
- Health Insurance, HR and
e-services
The division’s first-quarter 2015 revenues came to
€54.0 million, up 8.4% on a reported basis and 8.4% like for
like. Currencies had virtually no impact, and there were no
acquisitions or divestments.
The Health Insurance, HR and e-services division represented
44.5% of the Group’s consolidated revenues from continuing
activities, compared with 43.9% a year earlier.
EBITDA came to €8.4 million, up €3.9 million. Thus, the margin
came to 15.5% compared to 8.9% a year earlier.
EBIT before special items came to €4.5 million, up €3.6 million.
Thus, the margin came to 8.3% compared to 1.8% a year earlier.
This increase was among other attributable to RNP, the
specialist in window dressing for French pharmacists; the Cegedim
e-business electronic invoicing activity, and the Health Insurance
activities.
In the first quarter of 2015, the division’s revenues amounted
to €37.2 million, up 0.8% on a reported basis. The SoCall
acquisition and currencies had positive impacts of respectively
0.1% and 6.3%. Like-for-like revenues were down 5.7% over the
period.
The Healthcare Professionals division represented 30.7% of the
Group’s consolidated revenues from continuing activities, compared
with 32.6% in the year-earlier period.
EBITDA came to €6.5 million, down €0.5 million. Thus, the margin
came to 17.5% compared to 19.0% a year earlier.
EBIT before special items came to €3.7 million, down €0.9
million. Thus, the margin came to 9.9% compared to 12.3% a year
earlier.
The decrease in EBITDA mainly reflects the impact of a temporary
delay in billing UK physicians and the business environment for US
physicians. This decrease was partially offset better profitability
in the computerization of doctors in France and Spain, French and
UK drug database operations and, lastly, the computerization of
nurses and physical therapists in France.
The division’s first-quarter 2015 revenues came to
€29.3 million, up 13.2% both on a reported basis and like for
like. There were no acquisitions or divestments, and there was no
currency impact.
The Cegelease division represented 24.1% of the Group’s
consolidated revenues from continuing activities, compared with
22.8% a year earlier.
EBITDA came to €3.8 million, down €0.1 million. Thus, the margin
came to 12.8% compared to 15.2% a year earlier.
EBIT before special items came to €0.1 million, down €1.2
million. Thus, the margin came to 0.3% compared to 5.0% a year
earlier.
This relative stability in EBITDA was mainly due to the increase
in self-financed contracts. It should be noted that over the
duration of the contract, self-financed contracts have a higher
positive impact on margins than do resold contracts.
The division’s first-quarter 2015 revenues came to
€0.8 million, relatively stable compared to the same period
last year. Currencies had virtually no impact and there were no
acquisitions or divestments.
The Activities not allocated represented 0.7% of the Group’s
consolidated revenues from continuing activities, about the same as
a year earlier.
EBITDA came to a profit of €0.5 million, up €2.2 million. EBIT
before special items was a virtually negligible loss, up €2.0
million.
This favorable EBITDA trend reflects cost-containment
efforts.
- Activities held for sale (“CRM and
Strategic Data” division)
In the first quarter of 2015, the division’s revenues came to
€104.1 million, up 11.8% on a reported basis. Currencies had a
positive impact of 5.0%. There were no acquisitions or divestments.
Like-for-like revenues increased 6.8% over the period.
EBITDA came to €8.5 million, up €4.1 million. Thus, the margin
came to 8.2% compared to 4.7% a year earlier.
EBIT before special items came to €8.5 million, up €10.9
million. Thus, the margin came to 8.2% compared to (2.5)% a year
earlier.
Assets held for sale amounted to €690.9 million at the end of
March 2015. This represented 55.3% of total assets.
Liabilities associated with assets held for sale amounted to
€193.6 million at the end of March 2015. This represented 15.5% of
Total Liabilities & Shareholders’ Equity.
Financial resources
The consolidated total balance sheet amounted to €1,249.8
million at March 31, 2015, an 8.8% increase over December 31,
2014.
Goodwill on acquisition was €180.8 million at March 31, 2015,
compared with €175.4 million at the end of 2014. This increase is
chiefly attributable to the appreciation of some foreign currencies
against the euro, mainly that of the US dollar and pound sterling,
whose movements amounted to respectively €3.5 million and €2.2
million. Goodwill on acquisition represented 14.5% of the total
balance sheet on March 31, 2015, compared to 15.3% in December
2014.
Cash and cash equivalents came to €18.8 million at March 31,
2015, down €25.2 million compared with December 31, 2014. This
decline reflects the direct impact of interest payments on the bond
maturing in 2020 and the reduced use of bank overdrafts.
Shareholders’ equity increased by €88.8 million to €306.9
million at March 31, 2015, compared to €218.1 million at the end of
2014. This increase stems from the €81.8 million improvement in
Group foreign exchange gains. Total shareholders’ equity came to
19.0% of total assets at the end of December 2014, compared to
24.6% at the end of March 2015.
Net debt came to €519.5 million at the end of March 2015, up
€15.3 million compared with the end of 2014. It should be noted
that following the disposal of the CRM and Strategic Data division
to IMS Health on April 1, 2015, pro forma net debt, adjusted for
€396 million of proceeds, represents 37.5% of shareholders equity
as of March 31, 2015.
Before the cost of net financial debt and taxes, operating cash
flow was €24.3 million at the end of March 2015, an increase of
€7.3 million compared with the end of December 2014.
1st quarter highlights
To the best of the company’s knowledge, there were no events or
changes during the period that would materially alter the Group’s
financial situation.
Significant post-closing transactions and events
- Disposal of the “CRM and Strategic
Data” division to IMS Health
On April 1, 2015, Cegedim announced that it had completed the
disposal of its CRM and Strategic Data division to IMS Health. The
estimated selling price, determined in accordance with October 2014
agreements, amounts to €396 million. This estimated amount is
subject to joint review on the basis of the accounts at March 31,
2015, to be prepared within 90 business days.
- S&P has upgraded Cegedim’s
rating to BB- with positive outlook
Following the announcement of the transaction, rating agency
Standard and Poor’s upgraded Cegedim’s rating to BB-, with positive
outlook, on April 13, 2015.
Apart from the items cited above, to the best of the company’s
knowledge, there were no post-closing events or changes that would
materially alter the Group’s financial situation.
Outlook
For 2015, Cegedim expects consolidated revenue from continuing
activities to grow by 2.5%, like for like.
Cegedim is raising its growth rate outlook for consolidated EBIT
from continuing activities before special items from 5.0% to
10.0%.
The Group does not anticipate any significant acquisitions for
2015 and does not disclose profit projections or estimates.
Financial calendar
The Group will hold a conference call on
May 27, 2015, at 6:15 pm in English (Paris time). The call willbe
hosted by Jan Eryk Umiastowski, Cegedim Chief Investment Officer
and Head of Investor Relations.
A presentation of Cegedim Q1 2015 Results
will also be available on the website:
http://www.cegedim.com/finance/documentation/Pages/presentations.aspx
Contact numbers: France: +33 1 70 77 09
44
US : +1 866 907 5928
UK and others: +44 (0)20 3367 9453
No Access code required
July 28, 2015 (after the stock market closes)
- Q2 2015 Revenue announcement
September 28, 2015 (after the stock market closes)
- H1 2015 Results announcement
September 29, 2015
October 27, 2015 (after the stock market closes)
- Q3 2015 Revenue announcement
November 26, 2015 (after the stock market closes)
- Q3 2015 Results announcement
Additional Information
Complete financial information and a presentation on Cegedim’s
first quarter earnings are available on our website:
www.cegedim.com/finance.
This information is also available on Cegedim IR, the Group’s
financial communications app for smartphones and iOS and Android
tablets. To download the app, visit: http://www.cegedim.fr/finance/profil/Pages/CegedimIR.aspx.
Appendices
- Q1 2015 Consolidated financial
statement
Assets
In thousands of euros 03/31/2015
12/31/2014 Goodwill on acquisition
180,828, 175,389, Development costs 18,160,
12,059, Other intangible fixed assets 89,781, 92,979,
Intangible fixed assets 107,941, 105,038, Land
389, 389, Buildings 3,551, 3,637, Other Property, plants and
equipment 16,587, 16,006, Construction work in progress
1,198, 697,
Tangible fixed assets 21,726,
20,727, Equity investments 979, 704, Loans 2,618, 2,684,
Other long-term investments 7,344, 8,834,
Long-term investments - excluding equity shares in equity method
companies 10,941, 12,222, Equity shares in equity
method companies 9,261, 8,819, Government - Deferred tax 12,058,
10,625, Accounts receivable: Long-term portion 14,671, 15,162,
Other receivables: Long-term portion 1,684, 1,812,
Non-current assets 359,110, 349,793, Services
in progress 0, 0, Goods 8,974, 8,563, Advances and deposits
received on orders 978, 77, Accounts receivable: Short-term portion
129,280, 127,264, Other receivables: Short-term portion 25,907,
21,931, Cash equivalents 0, 2,416, Cash 18,825, 41,619, Prepaid
expenses 15,861, 12,708,
Current assets
199,825, 214,579, Assets of activities held
for sale 690,890, 584,857, Total
assets 1,249,825 1,149,229
Liabilities
In thousands of euros 03/31/2015
12/31/2014 Share capital 13,337, 13,337, Issue
premium 182,955, 182,955, Group reserves (39,726), 157,808, Group
exchange reserves (238), (238), Group exchange gains/losses
150,445, 63,815, Group earnings (44), (199,757),
Shareholders’ equity, Group share 306,728,
217,921, Minority interests (reserves) 133, 118, Minority
interests (earnings) (8), 24,
Minority
interests 125, 142,
Shareholders' equity 306,853, 218,063,
Long-term financial liabilities 476,418, 476,024, Long-term
financial instruments 7,599, 8,094, Deferred tax liabilities 8,043,
7,620, Non-current provisions 19,772, 18,680, Other non-current
liabilities 1,253, 1,123,
Non-current
liabilities 513,085, 511,541, Short-term
financial liabilities 61,864, 72,192, Short-term financial
instruments 8, 8, Accounts payable and related accounts 46,611,
47,166, Tax and social liabilities 69,201, 69,188, Provisions
2,598, 2,615, Other current liabilities 55,987,
47,808,
Current liabilities 236,267,
238,976, Liabilities of activities held for sale
193,619, 180,649, Total
liabilities 1,249,825, 1,149,229,
Income statement
In thousands of euros 03/31/2015
03/12/2014 Revenue 121,309
113,370 Other operating activities revenue , Purchases used
(22,487) (20,668) External expenses (30,861) (31,449) Taxes (2,302)
(2,554) Payroll costs (46,460) (43,965) Allocations to and
reversals of provisions (599) (761) Change in inventories of
products in progress and finished products 0 0 Other operating
income and expenses 543 (360)
EBITDA 19,143
13,613 Depreciation expenses (10,942) (8,963)
Operating income from recurring operations 6,826
4,651 Depreciation of goodwill , Non-recurrent income and
expenses (1,482) (613)
Other exceptional operating income and
expenses (1,482) (613) Operating
income 5,344 4,038 Income from cash and cash
equivalents 983 153 Gross cost of financial debt (10,054) (9,314)
Other financial income and expenses 2,174 (918)
Cost of net financial debt (6,897) (10,079)
Income taxes (883) (933) Deferred taxes 149 457
Total taxes (734) (476) Share of profit (loss)
for the period of equity method companies 442 392 Net profit (loss)
for the period from continuing activities (1,844) (6,125) Net
profit (loss) for the period from discontinued activities 1,794
(2,837) Consolidated profit (loss) for the period (51)
(8,962)
Group share (A) (44) (8,971)
Minority interests (7) 8 Average number of shares excluding
treasury stock (B) 13,965,725 13,942,008
Current
earnings per share from continuing activities 0.0
(0.4) Net earnings per share (in euros) (A/B)
0.0 (0.6) Diluting instruments None None
Diluted
earnings per share (in euros) 0.0
(0.6)
Consolidated cash flow statement
In thousands of euros 03/31/2015
03/31/2014 Consolidated profit (loss) for the period
(52) (8,963) Share of earnings from equity method companies
(485) (434) Depreciation and provisions (1) 11,788 15,841 Capital
gains or losses on disposals 372 108
Cash flow
after cost of net financial debt and taxes 11,623
6,553 Cost of net financial debt. 8,224 9,908 Tax expenses
4,444 515
Operating cash flow before cost of net
financial debt and taxes 24,291 16,975 Tax paid
(6,605) (5,981) Change in working capital requirements for
operations: requirement , , Change in working capital requirements
for operations: surplus 13,340 17,415
Cash flow
generated from operating activities after tax paid and change in
working capital requirements (A) 31,026
28,409 Of which net cash flows from operating activities
of discontinued activities 9,232
3,363 Acquisitions of intangible assets (14,215) (12,955)
Acquisitions of tangible assets (6,409) (5,441) Acquisitions of
long-term investments (262) (359) Disposals of tangible and
intangible assets 173 140 Disposals of long-term investments 0 0
Impact of changes in consolidation scope 0 (317) Dividends received
from equity method companies 12 16
Net cash flows
generated by investment operations (B) (20,701)
(18,917) Of which net cash flows connected to
investment operations of discontinued activities
(5,018) (899) Dividends paid to parent company
shareholders 0 0 Dividends paid to the minority interests of
consolidated companies 0 0 Capital increase through cash
contribution 0 0 Loans issued 0 0 Loans repaid (64) (162) Interest
paid on loans (17,524) (16,953) Other financial income and expenses
paid or received 726 (1,002)
Net cash flows
generated by financing operations (C) (16,862)
(18,117) Of which net cash flows related to
financing operations of discontinued activities
(836) 198 Change In Cash without impact of
change in foreign currency exchange rates (A + B + C)
(6,537) (8,625) Impact of changes in foreign currency
exchange rates 2,984 (508)
Change in cash (3,553)
(9,133) Opening cash 99,715 54,227 Closing cash
96,162 45,093
Reconciliation: this division
encompasses the activities the Group performs as the parent company
of a listed entity, as well as the support it provides to the three
operating divisions.
EPS: Earnings Per Share is a
specific financial indicator defined by the Group as the net profit
(loss) for the period divided by the weighted average of the number
of shares in circulation.
Operating expenses: defined as
purchases used, external expenses and payroll costs.
Revenue at constant exchange rate:
when changes in revenue at constant exchange rate are referred to,
it means that the impact of exchange rate fluctuations has been
excluded. The term “at constant exchange rate” covers the
fluctuation resulting from applying the exchange rates for the
preceding period to the current fiscal year, all other factors
remaining equal.
Revenue on a like-for-like basis:
the effect of changes in scope is corrected by restating the sales
for the previous period as follows:
• by removing the portion of sales
originating in the entity or the rights acquired for a period
identical to the period during which they were held to the current
period;
• similarly, when an entity is
transferred, the sales for the portion in question in the previous
period are eliminated.
Life-for-like data: at constant
scope and exchange rates.
Internal growth: internal growth
covers growth resulting from the development of an existing
contract, particularly due to an increase in rates and/or the
volumes distributed or processed, new contracts, acquisitions of
assets allocated to a contract or a specific project.
External growth: external growth
covers acquisitions during the current fiscal year, as well as
those which have had a partial impact on the previous fiscal year,
net of sales of entities and/or assets.
EBIT: Earnings Before Interest and
Taxes. EBIT corresponds to net revenue minus operating expenses
(such as salaries, social charges, materials, energy, research,
services, external services, advertising, etc.). It is the
operating income for the Cegedim Group.
EBIT from recurring operations:
this is EBIT restated to take account of non-current items, such as
losses on tangible and intangible assets, restructuring, etc. It
corresponds to the operating income from recurring operations for
the Cegedim Group.
EBITDA: Earnings before interest,
taxes, depreciation and amortization. EBITDA is the term used when
amortization or depreciation and revaluations are not taken into
account. “D” stands for depreciation of tangible assets (such as
buildings, machines or vehicles), while “A” stands for amortization
of intangible assets (such as patents, licenses and goodwill).
EBITDA is restated to take account of non-current items, such as
losses on tangible and intangible assets, restructuring, etc. It
corresponds to the gross operating earnings from recurring
operations for the Cegedim Group.
Net Financial Debt: this represents
the Company’s net debt (non-current and current financial debt,
bank loans, debt restated at amortized cost and interest on loans)
net of cash and cash equivalents and excluding revaluation of debt
derivatives.
Free cash flow: free cash flow is
cash generated, net of the cash part of the following items: (i)
changes in working capital requirements, (ii) transactions on
equity (changes in capital, dividends paid and received), (iii)
capital expenditure net of transfers, (iv) net financial interest
paid and (v) taxes paid.
Operating margin: defined as the
ratio of EBIT/revenue.
Operating margin from recurring
operations: defined as the ratio of EBIT from recurring
operations/revenue.
Net cash: defined as cash and cash
equivalent minus overdraft.
About Cegedim :
Founded in 1969, Cegedim is a technology
and services company committed to innovation. Cegedim supplies
services, technological tools, specialized software, data flow
management services and databases. Its offerings are targeted
notably at healthcare professionals, healthcare industries, life
science companies, and health insurance companies. Cegedim employs
almost 3,500 people in 11 countries and generated revenue from
continuing activities of €494 million in 2014. Cegedim SA is listed
in Paris (EURONEXT: CGM)
To learn more, please visit:
www.cegedim.com
And follow Cegedim on Twitter:@CegedimGroup
1 This estimated amount is subject to joint review on the basis
of the accounts at March 31, 2015, to be prepared within 90
business days.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150527006218/en/
Aude BALLEYDIERCegedimMedia RelationsTel.: +33 (0)1 49 09
68 81aude.balleydier@cegedim.frorJan Eryk
UMIASTOWSKICegedimChief investment OfficerInvestor
RelationsTel.: +33 (0)1 49 09 33
36investor.relations@cegedim.frorGuillaume DE CHAMISSOPRPA
AgencyPress RelationsTel.: +33 (0)1 77 35 60
99guillaume.dechamisso@prpa.fr
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