Paris, May 7, 2014

Press Release

Results 1st Quarter 2014

  • Published revenue down by 10.0%, but up by 2.1% on a like-for-like basis
  • EBITDA margin rate improving, but a decrease in gross operating income (7.1%)
  • Current operating profit is down by 3.5%, but the net income attributable to the Group is up 18.1%
  • New decrease in net debt, down to €605.1 million, compared to €610.3 million as at end-December 2013
  • Published revenue down by 10.0% at end-March 2014.
    On a like-for-like basis, based on the same number of working days, revenue has increased by 2.1%, up substantially compared to the first quarter of 2013. The Group recorded a rise in its number of short-term care stays (1.6%), with 226,000 stays on a like-for-like basis (excluding emergency care visits).
  • The EBITDA reached €73.1 million, down by 7.1%.
    Despite more restrictive measures on the part of the French government, and the lower rates since early March, EBITDA margin is improving, accounting for 16.3% of revenue.
  • The published current operating profit is €46.2 million as at end-March 2014, compared to €47.9 million for the first quarter of 2013.

Pascal Roché, the Group's Chief Executive Officer, issued the following statement:
"Despite a particularly difficult environment in terms of the economy and rates, we saw an improved EBITDA margin rate for the quarter in comparison with the same period in 2013, and significant growth on a like-for-like basis of the number of stays to 1.6% for the first three months of the year. These are both testament to the success of our cost-monitoring strategy and our quality offering that makes us stand out from the rest. In particular this allows us to reinforce our market position for the long term as a leader in France in outpatient services, with more than 54% of medical procedures carried out within the Group, whose offer marks the future of the hospitalization sector."

In € million - Not audited  

End-March 2014

Change

End-March 2013
Revenue: 449.2 -10.0% 499.3
EBITDA 73.1 -7.1% 78.7
Current Operating Profit 46.2 -3.5% 47.9

As a % of revenue

10.3%+0.7 point9.6%

Operating Profit

45.9 +2.0% 45.0
Net income attributable to the Group 22.8 +18.1% 19.3

Net earnings per share (in €)

0.40 + €0.06 0.34

Business - Decline in published revenue

Consolidated revenue for the first quarter of 2014 amounted to €449.2 million vs. €499.3 million for the same period in 2013, a decline of 10.0%. Eliminating differences in consolidation scope, revenue grew by 2.1% in the period.

In € millions - March 2014 March 2013 Change 2014/2013
Ile de France (Paris region) 198.7 196.0 +1.4%
Rhône Alpes 74.5 72.3 +3.0%
Nord 51.5 49.7 +3.6%
Provence Alpes Côte d'Azur 44.4 43.0 +3.3%
Bourgogne 28.7 28.3 +1.4%
Other Regions 51.4 50.7 +1.4%
Other Businesses (1) -- 59.3 -100.0%
Published revenue: 449.2 499.3 -10.0%
Of which: - Organic 449.2 440.0 +2.1%
Of which Organic France 443.2 433.9 +2.1%
Of which Organic Italy 6.0 6.1 -1.6%
- Changes in scope -- 59.3 N/S

(1)   The "Other Businesses" line item includes non-strategic businesses whose assets have been sold.

In France, the changes in scope are due to the disposals of Hôpital Privé Beauregard in May, 2013, of the Le Floride clinic in June, 2013, and the Kerléna, Bazincourt and Les Sorbiers clinics in September, 2013.
On December 16, 2013, Générale de Santé also completed the disposal of its mental health businesses and the clinics that handled after-care and rehabilitation related to the mental health activities.

In France, the Hospital Care and Services business recorded an increase in revenue of 2.1% for the first quarter of 2014, driven by growth in volumes.

During the first three months of 2014, the medical, surgery and obstetrics activity conducted in the Group's hospitals grew (1.6%) compared with 2013, on a like-for-like basis, reaching 226,000 stays. This growth breaks down as follows: +2.1% for surgery, +1.3% for medical and +0.2% for obstetrics.

In connection with the public service missions managed by the Group, the number of emergency care treatments rose by 2.6%, on a like-for-like basis, as at end-March 2014, based on over 99,000 patient visits to our emergency departments.

Organic revenue in Italy comes from the activity of the Omegna hospital, and was stable at end-March 2014.

Results:

1) Decline in current operating profit

In connection with the decline in published revenue (-10.0%), the Group recorded a slight fall in its published EBITDA (-7.1%). Optimized management of resources and encouraging outcomes for its MAP 2015 strategic plan made it possible for the Group to improve its EBITDA margin, which reached 16.3% for the quarter.

Current operating profit follows the same trend, a limited 3.5% decline in published data to €46.2 million.

2) Growth in net profit

Operating profit has improved slightly and reached €45.9 million at end-March 2014, compared with €45.0 million the previous year.

Net profit is up, reaching €22.8 million at end-March 2014 versus €19.3 million at end-March 2013, following the lowered cost of debt.

Net debt: new decrease in net financial debt per IFRS reaching €605.1 million at end-March 2014 compared to €610.3 million at end-December 2013.

Net financial debt per IFRS decreased compared to its position at end-December 2013 to €605.1 million despite the poor but regularly occurring seasonal performance of the Group's surplus working capital between December and March. Net debt includes €157.3 million in borrowings and long-term financial debt, €410.8 million in short-term financial debt and €39.6 million in bank overdraft facilities.

About Générale de Santé:
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 private healthcare and services group, Générale de Santé has 19,000 employees, including 7,000 nurses and 4,000 care staff in 75 facilities and centers.
With almost 4,500 practitioners, it is the leading independent medical community in France. As a major player in hospital care, Générale de Santé covers the entire healthcare chain: medical, surgery and obstetrics, oncology, after-care and rehabilitation, and home medical services. Générale de Santé has developed a unique healthcare offering combining quality and safety of care, efficient organization, and a human touch. The Group offers comprehensive care with personalized support before, during, and after hospitalization, taking into account all aspects of the patient's needs; it also operates in the public health service and national healthcare network.
For more information, go to www.generale-de-sante.fr:
http://www.generale-de-sante.fr

ISIN and Euronext Paris code: FR0000044471
Website: http://www.generale-de-sante.fr:
http://www.generale-de-sante.fr


Next key dates:
Publication of 2014 interim financial statements on July 31, 2014


Investor Relations/Analysts
Arnaud Jeudy
Tel. +33 (0)1 53 23 14 75
a.jeudy@gsante.fr:
mailto:a.jeudy@gsante.fr
Press Relations
Martine Esquirou
Tel. +33 (0)1 53 23 12 62
m.esquirou@gsante.fr:
mailto:m.esquirou@gsante.fr
Guillaume Jubin
Tel. +33 (0)1 44 14 99 99
g.jubin@tilder.com:
mailto:g.jubin@tilder.com

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(in million euros) 2013 Period
ended
March 31,
2013
Period
ended
March 31,
2014
TURNOVER 1,869.7 499.3 449.2
Personnel expenses
and profit sharing
(826.8) (206.6) (179.0)
Purchased consumables (347.2) (94.6) (89.7)
Other operating income
and expenses
(229.8) (58.0) (53.6)
Taxes and duties (83.3) (21.0) (18.1)
Rents (156.8) (40.4) (35.7)
EBITDA 225.8 78.7 73.1
Depreciation (121.4) (30.8) (26.9)
Current operating profit 104.4 47.9 46.2
Restructuring costs (6.9) (3.0) (0.3)
Result of the management
of real estate and financial assets
65.8 0.1 --
Impairment of goodwill -- -- --
Other non current
income and expenses
58.9 (2.9) (0.3)
Operating profit 163.3 45.0 45.9
Gross interest expenses (32.1) (7.5) (5.9)
Income from cash and cash equivalents 0.7 0.1 --
Net interest expenses (31.4) (7.4) (5.9)
Other financial income 0.7 -- --
Other financial expenses (4.6) (1.4) (1.3)
Other financial income and expenses (3.9) (1.4) (1.3)
Corporate income tax (13.2) (14.9) (13.9)
Share of net profit of associates -- -- --
NET PROFIT FOR THE PERIOD 114.8 21.3 24.8
Revenues and expenses recognized
directly as equity
- Retirement commitments 1.8 -- --
- Change in fair value of hedging
financial instruments
10.2 1.6 1.8
- Translation differential -- -- --
- Income tax on other comprehensive income (4.5) (0.6) (0.1)
Results recognised directly as equity 7.5 1.0 1.7
TOTAL COMPREHENSIVE
INCOME FOR THE PERIOD
122.3 22.3 26.5
PROFIT ATTRIBUTABLE TO (in million euros) 2013 Period
ended
March 31,
2013
Period
ended
March 31,
2014
Group's share of net earnings 111.3 19.3 22.8
Non-controlling interests 3.5 2.0 2.0
NET PROFIT FOR THE PERIOD 114.8 21.3 24.8
NET EARNINGS PER SHARE  (in euros) 1.97 0.34 0.40
NET DILUTED EARNINGS PER SHARE (in euros) 1.97 0.34 0.40
TOTAL COMPREHENSIVE
INCOME ATTRIBUTABLE TO
(in million euros)
2013 Period
ended
 March 31,
2013
Period
ended
March 31,
2014
Group's comprehensive income for the period 118.8 20.3 24.5
Non-controlling interests 3.5 2.0 2.0
TOTAL COMPREHENSIVE
INCOME FOR THE PERIOD
122.3 22.3 26.5

CONSOLIDATED BALANCE SHEET - ASSETS
( in million euros ) 12-31-2012 12-31-2013 At March 31, 2014
Goodwill 562.2 512.0 512.0
Other intangible fixed assets 19.0 18.8 18.8
Tangible fixed assets 809.8 697.9 691.6
Investments in associates 0.5 0.3 0.3
Other long-term investments 35.7 24.1 24.2
Deferred tax assets 44.5 49.3 46.2
NON CURRENT ASSETS 1 471.7 1 302.4 1 293.1
Inventories 33.2 33.2 33.1
Trade and other receivables 121.5 103.0 120.7
Other current assets 138.1 144.7 160.9
Current tax assets 2.5 6.5 7.1
Current financial assets 4.4 4.0 4.6
Cash and cash equivalents --- --- ---
Assets held for sale 1.5 5.3 5.3
CURRENT ASSETS 301.2 296.7 331.7
TOTAL ASSETS 1,772.9 1,599.1 1,624.8

CONSOLIDATED BALANCE SHEET - LIABILITIES AND EQUITY
( in million euros ) 12-31-2012 12-31-2013 At March
31, 2014
Share capital 42.3 42.3 42.3
Additional paid-in capital 64.6 64.6 64.6
Consolidated reserves 211.5 228.2 341.2
Group's share of net profit 55.7 111.3 22.8
Group's share of equity 374.1 446.4 470.9
Non-controlling interests 12.2 11.3 13.2
TOTAL SHAREHOLDERS' EQUITY 386.3 457.7 484.1
Borrowings and financial debts 620.1 163.2 157.3
Provisions for retirement
and other employee benefits
33.4 28.1 29.0
Non-current provisions 34.8 27.6 26.3
Other long term liabilities 24.9 11.7 6.2
Deferred tax liabilities 70.2 65.0 64.7
NON CURRENT LIABILITIES 783.4 295.6 283.5
Current provisions 8.9 11.6 12.1
Accounts payable 159.2 129.6 140.7
Other current liabilities 287.8 253.2 241.2
Tax liabilities due 3.9 4.0 12.8
Short-term borrowings 133.1 424.2 410.8(1)
Bank overdraft 10.3 23.2 39.6
Liabilities related to assets held for sale --- --- ---
CURRENT LIABILITIES 603.2 845.8 857.2
TOTAL EQUITY AND LIABILITIES 1,772.9 1,599.1 1,624.8
  1. The balance of the Group's senior debt matures on October 24, 2014 (EUR 357.5 million at March 31, 2014 classified as "current financial debt"). The Group is analyzing various refinancing options and does not foresee any difficulties in this respect.
consolidated statement of changes in equity
( in million euros ) SHARE
CAPITAL
ADDITIONAL
PAID
IN
CAPITAL
RESERVES RESULTS
RECOGNISED
DIRECTLY
AS
EQUITY
TOTAL
COMPRE-
HENSIVE
INCOME
FOR
THE
PERIOD
GROUP'S
SHARE
OF
EQUITY
NON
CONTROLLING
INTERESTS
SHAREHOLDERS'
EQUITY
Shareholders' equity
at December 31, 2012
42.3 64.6 224.9 (13.4) 55.7 374.1 12.2 386.3
Capital increase (including net fees) -- -- (4.2) -- -- (4.2) -- (4.2)
Treasury shares -- -- -- -- -- -- -- --
Stocks options and free share -- -- -- -- -- -- -- --
Prior year appropriation of earnings -- -- 55.7 -- (55.7) -- -- --
Distribution of dividends -- -- (42.3) -- -- (42.3) (2.9) (45.2)
Change in consolidation scope -- -- -- -- -- -- (1.5) (1.5)
Total comprehensive income for the period -- -- -- 7.5 111.3 118.8 3.5 122.3
Shareholders' equity
at December 31, 2013
42.3 64.6 234.1 (5.9) 111.3 446.4 11.3 457.7
Capital increase (including net fees) -- -- -- -- -- -- -- --
Treasury shares -- -- -- -- -- -- -- --
Stocks options and free share -- -- -- -- -- -- -- --
Results of the previous financial
year not yet allocated
-- -- 111.3 -- (111.3) -- -- --
Distribution of dividends -- -- -- -- -- -- (0.1) (0.1)
Change in consolidation scope -- -- -- -- -- -- -- --
Total comprehensive income for the period -- -- -- 1.7 22.8 24.5 2.0 26.5
Shareholders' equity
at March 31, 2014
42.3 64.6 345.4 (4.2) 22.8 470.9 13.2 484.1
12-31-2012 12-31-2013 03-31-2014
Dividends per share
(in euros including pre-distribution)
0.75 0.75 (1)
Number of treasury shares 25 301 25 301 25 301
  1. Pending the decision of the General Assembly scheduled for June 17, 2014.
revenues and expenses recognised directly as equity
( in million euros ) 12-31-2012 Income
and
expenses
2013
12-31-2013 Income
and
expensesat
March 31, 2014
At March 31, 2014
Translation differential (0.3) -- (0.3) -- (0.3)
Retirement commitments (2.8) 1.2 (1.6) -- (1.6)
Fair value of hedging financial instruments (10.3) 6.3 (4.0) 1.7 (2.3)
Results recognized directly
as equity (Group's share)
(13.4) 7.5 (5.9) 1.7 (4.2)

CONSOLIDATED CASH FLOW STATEMENT
( in million euros ) 2013 Period
ended
March 31, 2013
Period
ended
March 31, 2014
Total net consolidated profit 114.8 21.3 24.8
Depreciation 121.4 30.8 26.9
Other non-current income and expenses (58.9) 2.9 0.3
Share of net profit of associates -- -- --
Other financial income and expenses 3.9 1.4 1.3
Net interest expenses 31.4 7.4 5.9
Corporate income tax 13.2 14.9 13.9
EBITDA 225.8 78.7 73.1
Non-cash items including provisions and reversals
(transactions with no cash effect)
4.0 (0.9) (0.3)
Other income and expenses paid (19.8) (2.7) (1.1)
Changes in other long term assets and liabilities (0.8) (0.5) --
Cash flow before net interest expenses & taxes 209.2 74.6 71.7
Corporate income tax paid (28.6) 0.2 (0.6)
Change in working capital requirements (29.3) (40.8) (37.4)
NET CASH FROM OPERATING ACTIVITIES   : (A) 151.3 34.0 33.7
Purchase of property,
plant & equipment and intangible assets
(67.4) (26.3) (20.1)
Proceeds from sale of tangible and intangible assets 110.2 -- --
Purchase of financial assets --- -- (0.1)
Proceeds from the disposal of financial assets 79.3 -- --
Dividends from non-consolidated companies 0.3 -- --
NET CASH USED FOR INVESTING ACTIVITIES  :  (B) 122.4 (26.3) (20.2)
Capital increase: (a) (4.2) -- --
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) (42.3) -- --
Dividends paid to minority interests
of consolidated companies: (e)
(2.9) (0.5) (0.1)
Net interest expense paid : (f) (31.4) (7.4) (5.9)
Debt issue costs : (g) --- -- --
Cash flow before repayment of borrowings:
(h) = (A+B + a + b + c + d + e + f + g)
192.9 (0.2) 7.5
Increase in borrowings : (i) 15.0 -- --
Repayment of borrowings : (j) (220.8) (15.3) (23.9)
NET CASH USED FOR  FINANCING ACTIVITIES:
(C) = a + b + c + d + e + f + g + i + j
(286.6) (23.2) (29.9)
NET INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS: ( A + B + C )
(12.9) (15.5) (16.4)
Cash and cash equivalents at beginning of period (10.3) (10.3) (23.2)
Cash and cash equivalents at end of period (23.2) (25.8) (39.6)
Net indebtedness at beginning of period 769.1 769.1 610.3
Cash flow before repayment of borrowings: (h) (192.9) 0.2 (7.5)
Capitalization of financial leases 114.2 0.4 4.9
Loan issue charges fixed assets 3.5 0.9 0.9
Assets held for sale 3.8 3.0 --
Fair value of financial hedging instruments (6.3) (1.0) (1.7)
Change in scope of consolidation and other (81.1) 0.1 (1.8)
Net indebtedness at end of period 610.3 772.7 605.1
GENERALE DE SANTE : 1st Quarter Revenue:
http://hugin.info/143423/R/1783482/610785.pdf



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Source: GENERALE DE SANTE via Globenewswire

HUG#1783482