RAMSAY GÉNÉRALE DE SANTÉ 
By Paris, October 24, 2011
Press release
Results for the nine-months to September 30, 2011
Revenue up 2.3% in the nine months to September 30, 2011.
At constant structure, revenue was up 2.8%, with the same number of working days. The group recorded a 1.7% increase of the number of stays in acute care.
The current operating profit in the nine months to September 30, 2011 was ?91.8m, vs. ?80.6m in the first nine months of 2010.
Excluding the reclassification of expenses resulting from the implementation of the reorganization plan, the current operating profit would have been stable. Mechanical inflation in operating expenses in a restrictive tariff environment dampened the impact of growth in our business.
?m | September 30, 2011 | Change | September 30, 2010 |
| Revenue | 1,460.9 | + 2.3% | 1,428.7 |
| EBITDA | 185.5 | + 10.7% | 167.5 |
| Current operating profit | 91.8 | + 13.9% | 80.6 |
As a % of revenue | 6.3 % | + 0.7 points | 5.6% |
Operating profit | 57.1 | - 44.2% | 102.4 |
| Group share of net profit | 3.6 | - 92.0% | 44.9 |
Net earnings per share (en ?) | 0.06 | -?0.74 | 0.80 |
Revenue: increase in reported revenue
Consolidated revenue for the nine months to September 30, 2011 was ?1,460.9m, vs. ?1,428.7m for the same period in 2010.
?m | Sept. 30, 2011 | Sept. 30, 2010 | Change 2011/2010 | Q3 2011 | Q3 2010 | Change 2011/2010 |
Ile de France (Paris region) | 570.1 | 544.5 | + 4.7% | 164.7 | 158.3 | + 4.0% |
| Rhône Alpes | 210.6 | 209.4 | + 0.6% | 63.6 | 62.8 | + 1.3% |
| Nord | 153.6 | 148.2 | + 3.6% | 46.9 | 46.5 | + 0.9% |
| Provence Alpes Côte d'Azur | 173.4 | 167.3 | + 3.6% | 51.7 | 48.9 | + 5.7% |
Burgundy | 79.6 | 77.6 | + 2.6% | 24.2 | 24.1 | + 0.4% |
Other regions | 254.2 | 242.7 | + 4.7% | 80.2 | 73.9 | + 8.5% |
| Other activities (1) | 19.4 | 39.0 | - 50.3% | -- | 10.2 | - 100.0% |
| Reported revenue | 1,460.9 | 1,428.7 | + 2.3% | 431.3 | 424.7 | + 1.6% |
O/w: - Organic | 1,448.4 | 1,408.6 | + 2.8% | 427.2 | 414.5 | + 3.1% |
o/w organic France | 1 431.5 | 1 391.3 | + 2.9% | 422.6 | 409.9 | + 3.1% |
o/w organic Italy | 16.9 | 17.3 | - 2.3% | 4.6 | 4.6 | - |
- Changes in scope | 12.5 | 20.1 | - | 4.1 | 10.2 | - |
(1) "Other activities" includes non-strategic businesses whose assets have been sold
The Hospital Care France business recorded organic growth of 2.9% over the period, attributable to a volume/mix effect.
In France, changes in the scope of consolidation resulted chiefly from the disposal of the Medical Analysis business on February 2, 2010, the acquisition of Hôpital Privé de Marne la Vallée on October 2, 2010, the disposal of Clinique Convert (May 31, 2011), then Clinique Pasteur in Vitry and its scanner (June 28, 2011).
During the first nine months of 2011, acute care activity carried out in Group hospitals increased by 1.7% compared with the same period in 2010, with 670,000 visits over the period. The increase was attributable to surgery (+3.5%), activity in obstetrics and medicine remaining stable. As part of public-service healthcare initiatives managed by the Group, emergency-room activity rose by 9.2% during the first nine months of 2011, with 277,000 patient visits in Group establishments.
With regard to mental health, sub-acute care and rehabilitation, the group increased its number of days billed by 3.9% (to 1,088,000 days) in the nine months to September 30, 2011, thanks to a further increase in its occupancy rates, but also and above all to the gradual ramp-up of extensions made to several establishments.
Organic revenue in Italy was derived solely from the hospital in Omegna, which recorded a slight decline in the period to September 30, 2011.
Results:
1) Improvement in the current operating profit
The reported current operating profit was ?91.8m, an increase of 13.9% compared with the same period in 2010. It benefited from the reclassification of expenses (primarily personnel) resulting from the implementation of the reorganization plan announced by the Group on March 24, 2011. Excluding this adjustment, it would have been stable.
2) Decline in the operating profit and the net profit
The operating profit fell from ?102.4m (first nine months of 2010) to ?57.1m (first nine months of 2011) due mainly to the following non-recurring items:
an expense of ?28.7m recognized as of September 30, 2011, linked to the ongoing reorganization of support functions at the headquarters and regional offices, of which nearly ?16m in provisions,
the capital gain recognized on disposals in 2011,
the capital gain of nearly ?30m, recognized in the first half of 2010, following the disposal of the Medical Analysis business in France.
The decline in the net profit was closely in line with that of the operating profit.
Debt: increase in net financial debt per IFRS as of September 30, 2011 to ?905.8m (vs. ?871.4m as of December 31, 2010)
Net financial debt per IFRS was up compared with December 30, 2010, due to a recurring seasonal effect.
Générale de Santé, listed on the Euronext Paris Eurolist (formerly known as the Premier Marché) since June 2001, is included in the Midcac index. The leading Group in the private hospital care sector in France, Générale de Santé has 23,800 employees in 110 private hospitals and clinics. With 5,000 practitioners, it represents the leading independent medical community in France. A major player in hospitalization, Générale de Santé provides a comprehensive range of patient care services spanning acute care, oncology, sub-acute care and rehabilitation, mental health and homecare. Générale de Santé has an original healthcare offering, combining medical excellence, organizational efficiency and a human touch; it provides a seamless service with an individually adapted patient support package, before, during and after hospitalization, taking into consideration all of its patients' needs; it takes part in public-service healthcare initiatives and forms part of the nationwide healthcare chain in France.
ISIN code and Euronext Paris: FR0000044471
Website: www.generale-de-sante.fr:
http://www.generale-de-sante.fr/
Dates for your diary:
Publication of full-year results on February 17, 2012
| Investor Relations/Analysts: Arnaud Jeudy Tel. + 33 (0)1 53 23 14 89 a.jeudy@gsante.fr | Press Relations: Guillaume Jubin Tel. + 33 (0)1 53 23 14 99 g.jubin@gsante.fr |
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (unaudited) | ||
| ( in million euros ) | Period ended 30 september 2010 | Period ended 30 september 2011 |
| TURNOVER | 1,428.7 | 1,460.9 |
| Personnel expenses and profit sharing | (659.4) | (654.0) |
| Purchased consumables | (269.5) | (278.6) |
| Other operating income and expenses | (171.0) | (171.3) |
| Taxes and duties | (61.6) | (59.6) |
| Rents | (99.7) | (111.9) |
| EBITDA | 167.5 | 185.5 |
| Depreciation | (86.9) | (93.7) |
| Current operating profit | 80.6 | 91.8 |
| Restructuring costs | (10.8) | (36.4) |
| Result of the management of real estate and financial assets | 32.6 | 1.7 |
| Impairment of goodwill | -- | -- |
| Other non current income and expenses | 21.8 | (34.7) |
| Operating profit | 102.4 | 57.1 |
| Gross interest expenses | (34.8) | (35.8) |
| Income from cash and cash equivalents | 0.6 | 0.9 |
| Net interest expenses | (34.2) | (34.9) |
| Other financial income | 0.6 | 0.6 |
| Other financial expenses | (3.7) | (4.1) |
| Other financial income and expenses | (3.1) | (3.5) |
| Corporate income tax | (16.5) | (11.9) |
| Share of net profit of associates | -- | -- |
| NET PROFIT FOR THE PERIOD | 48.6 | 6.8 |
| Revenues and expenses recognised directly as equity | ||
| - Retirement commitments | -- | -- |
| - Change in fair value of hedging financial instruments | 0.5 | 3.4 |
| - Translation differential | -- | -- |
| - Income tax on other comprehensive income | (0.2) | (1.2) |
| Results recognised directly as equity | 0.3 | 2.2 |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 48.9 | 9.0 |
| PROFIT ATTRIBUTABLE TO (in million euros) | Period ended 30 september 2010 | Period ended 30 september 2011 |
| Group's share of net earnings | 44.9 | 3.6 |
| Non-controlling interests | 3.7 | 3.2 |
| NET PROFIT FOR THE PERIOD | 48.6 | 6.8 |
| TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO (in million euros) | Period ended 30 september 2010 | Period ended 30 september 2011 |
| Group's comprehensive income for the period | 45.2 | 5.8 |
| Non-controlling interests | 3.7 | 3.2 |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 48.9 | 9.0 |
| CONSOLIDATED BALANCE SHEET - ASSETS | ||
| ( in million euros ) | 12-31-2010 | At september 30, 2011 (unaudited) |
| Goodwill | 641.6 | 624.4 |
| Other intangible fixed assets | 20.4 | 16.6 |
| Tangible fixed assets | 896.6 | 864.7 |
| Investments in associates | 0.1 | 0.1 |
| Other long-term investments | 29.4 | 29.0 |
| Deferred tax assets | 54.2 | 51.7 |
| NON CURRENT ASSETS | 1 642.3 | 1,586.5 |
| Inventories | 35.4 | 35.0 |
| Trade and other receivables | 121.8 | 145.6 |
| Other current assets | 136.2 | 156.9 |
| Current tax assets | 7.5 | 7.8 |
| Current financial assets | 11.3 | 4.2 |
| Cash and cash equivalents | --- | --- |
| Assets held for sale | 1.5 | 2.0 |
| CURRENT ASSETS | 313.7 | 351.5 |
| TOTAL ASSETS | 1,956.0 | 1,938.0 |
| CONSOLIDATED BALANCE SHEET - LIABILITIES AND EQUITY | ||
| ( in million euros ) | 12-31-2010 | At september 30, 2011 (unaudited) |
| Share capital | 42.2 | 42.3 |
| Additional paid-in capital | 62.5 | 64.6 |
| Consolidated reserves | 298.7 | 280.6 |
| Group's share of net profit | 35.0 | 3.6 |
| Group's share of equity | 438.4 | 391.1 |
| Non-controlling interests | 10.7 | 12.6 |
| TOTAL SHAREHOLDERS' EQUITY | 449.1 | 403.7 |
| Borrowings and financial debts | 756.2 | 710.7 |
| Provisions for retirement and other employee benefits | 32.9 | 35.2 |
| Non-current provisions | 49.5 | 55.4 |
| Other long term liabilities | 32.1 | 27.5 |
| Deferred tax liabilities | 77.1 | 71.2 |
| NON CURRENT LIABILITIES | 947.8 | 900.0 |
| Current provisions | 11.4 | 11.3 |
| Accounts payable | 127.8 | 128.3 |
| Other current liabilities | 297.2 | 304.3 |
| Tax liabilities due | 3.5 | 1.2 |
| Short-term borrowings | 73.8 | 129.6 |
| Bank overdraft | 45.4 | 59.6 |
| Liabilities related to assets held for sale | -- | -- |
| CURRENT LIABILITIES | 559.1 | 634.3 |
| TOTAL EQUITY AND LIABILITIES | 1,956.0 | 1,938.0 |
| consolidated statement of changes in equity | ||||||||
| ( in million euros ) | SHARE CAPITAL | ADDITION AL PAID IN CAPITAL | RESERVES | RESULTS RECOGNISED DIRECTLY AS EQUITY | TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | GROUP'S SHARE OF EQUITY | NON CONTROLLING INTERESTs | SHAREHOLDERS' EQUITY |
| Shareholders' equity at December 31, 2009 | 42.2 | 62.5 | 340.2 | (20.2) | 42.4 | 467.1 | 10.0 | 477.1 |
| Capital increase (including net fees) | -- | -- | -- | -- | -- | -- | -- | -- |
| Treasury shares | -- | -- | -- | -- | -- | -- | -- | -- |
| Stocks options and free share | -- | -- | 3.4 | -- | -- | 3.4 | -- | 3.4 |
| Prior year appropriation of earnings | -- | -- | 42.4 | -- | (42.4) | -- | -- | -- |
| Distribution of dividends | -- | -- | (69.9) | -- | -- | (69.9) | (1.8) | (71.7) |
| Change in consolidation scope | -- | -- | (0.1) | -- | -- | (0.1) | (0.4) | (0.5) |
| Total comprehensive income for the period | -- | -- | -- | 2.9 | 35.0 | 37.9 | 2.9 | 40.8 |
| Shareholders' equity at December 31, 2010 | 42.2 | 62.5 | 316.0 | (17.3) | 35.0 | 438.4 | 10.7 | 449.1 |
| Capital increase (including net fees) | 0.1 | 2.1 | -- | -- | -- | 2.2 | -- | 2.2 |
| Treasury shares | -- | -- | -- | -- | -- | -- | -- | -- |
| Stocks options and free share | -- | -- | 1.1 | -- | -- | 1.1 | -- | 1.1 |
| Prior year appropriation of earnings | -- | -- | 35.0 | -- | (35.0) | -- | -- | -- |
| Distribution of dividends | -- | -- | (56.4) | -- | -- | (56.4) | (1.3) | (57.7) |
| Change in consolidation scope | -- | -- | -- | -- | -- | -- | -- | -- |
| Total comprehensive income for the period | -- | -- | -- | 2.2 | 3.6 | 5.8 | 3.2 | 9.0 |
| Shareholders' equity at 30 september 2011 (unaudited) | 42.3 | 64.6 | 295.7 | (15.1) | 3.6 | 391.1 | 12.6 | 403.7 |
| revenues and expenses recognised directly as equity | |||||
| ( in million euros ) | 12-31-2009 | Income and expenses 2010 | 12-31-2010 | Income and expenses at september 30, 2011 | At september 30, 2011 (unaudited) |
| Translation differential | (0.3) | -- | (0.3) | -- | (0.3) |
| Retirement commitments | (4.0) | (0.3) | (4.3) | -- | (4.3) |
| Fair value of hedging financial instruments | (15.9) | 3.2 | (12.7) | 2.2 | (10.5) |
| Results recognised directly as equity (Group's share) | (20.2) | 2.9 | (17.3) | 2.2 | (15.1) |
| CONSOLIDATED CASH FLOW STATEMENT (unaudited) | ||
| ( en millions d'euros ) | Period ended 30 september 2010 | Period ended 30 september 2011 |
| Total net consolidated profit | 48.6 | 6.8 |
| Depreciation | 86.9 | 93.7 |
| Other non current income and expenses | (21.8) | 34.7 |
| Share of net profit of associates | -- | -- |
| Other financial income and expenses | 3.1 | 3.5 |
| Net interest expenses | 34.2 | 34.9 |
| Corporate income tax | 16.5 | 11.9 |
| EBITDA | 167.5 | 185.5 |
| Non cash items including provisions and reversals (transactions with no cash effect) | -- | 1.9 |
| Other income and expenses paid | (9.1) | (29.7) |
| Changes in other long term assets and liabilities | 1.7 | 0.6 |
| Cash flow before net interest expenses & taxes | 160.1 | 158.3 |
| Corporate income tax paid | (26.9) | (20.2) |
| Change in working capital requirements | (21.4) | (34.0) |
| NET CASH FROM OPERATING ACTIVITIES : (A) | 111.8 | 104.1 |
| Purchase of property, plant & equipment and intangible assets | (88.6) | (54.8) |
| Proceeds from sale of tangible and intangible assets | -- | 7.5 |
| Purchase of financial assets | (3.3) | (0.5) |
| Proceeds from the disposal of financial assets | 55.8 | 16.7 |
| Dividends from non consolidated companies | 0.4 | 0.6 |
| NET CASH USED FOR INVESTING ACTIVITIES : (B) | (35.7) | (30.5) |
| Capital increase: (a) | -- | 2.2 |
| Capital increase performed by subsidiaries subscribed to by third parties (b) | -- | -- |
| Exceptional distribution of additional paid-in capital (c) | -- | -- |
| Dividends paid to GDS shareholders: (d) | (69.9) | (56.4) |
| Dividends paid to minority interests of consolidated companies: (e) | (1.8) | (1.2) |
| Net interest expense paid : (f) | (34.2) | (34.9) |
| Debt issue costs : (g) | -- | -- |
| Cash flow before repayment of borrowings: (h) = (A+B + a + b + c + d + e + f + g) | (29.8) | (16.7) |
| Increase in borrowings : (i) | 120.8 | 50.0 |
| Repayment of borrowings : (j) | (149.5) | (47.5) |
| NET CASH USED FOR FINANCING ACTIVITIES: (C) = a + b + c + d + e + f + g + i + j | (134.6) | (87.8) |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS: ( A + B + C ) | (58.5) | (14.2) |
| Reclassification of the cash of the assets held for sale | 13.0 | -- |
| Cash and cash equivalents at beginning of period | (5.1) | (45.4) |
| Cash and cash equivalents at end of period | (50.6) | (59.6) |
| Net indebtedness at beginning of period | 885.8 | 871.4 |
| Cash flow before repayment of borrowings: (h) | 29.8 | 16.7 |
| Capitalization of financial leases | 6.7 | 17.1 |
| Loan issue charges fixed assets | 2.6 | 2.6 |
| Assets held for sale | (0.6) | 0.6 |
| Fair value of financial hedging instruments | (0.3) | (2.3) |
| Change in scope of consolidation and other | 8.7 | (0.3) |
| Net indebtedness at end of period | 932.7 | 905.8 |
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Source: GENERALE DE SANTE via Thomson Reuters ONE
