Generale de Sante : 2014 full year Results

Paris, February 25, 2015

Press release

2014 results stay robust in a constrained pricing and economic environment

• Reported revenue down to €1,711.6 million (-8.5%) because of the 2013 disposals, but organic growth was good (+1.6%) on a like-for-like basis;
   
• EBITDA rate remains steady (12% in 2014 vs. 12.1% in 2013);
   
• Current operating income falls to €96.1 million (-8%);
   
• Net debt at €758.1 million vs. €610.3 million at end-2013.

Pascal Roché, the Group's Chief Executive Officer, issued the following statement:

"In a still difficult pricing environment, Générale de Santé experienced good organic growth in 2014 (+1.6% in revenue on a like-for-like basis), which reinforces a dynamic strategy based around its 19 territorial clusters. Current operating profit (-8%) and EBITDA (-8.9%) fell in a narrower scope of consolidation. However, the steadiness of our indicators, in particular the stability of our EBITDA rate at 12%, demonstrates the effectiveness of our model. The number of stays (+0.5%) is still being affected by the economic crisis to some degree. In this context, our leadership in outpatient care (the future of hospital care), which accounts for 54% of surgical procedures, is being strengthened. This continuous growth and the sharp increase in emergency care visits (+5.4%) prove the relevance of our healthcare offering in light of increasing demand from patients for quality care. 2014 was an event-filled one for the Group, with the arrival of new long-term and complementary reference shareholders, and the refinancing negotiated on favorable terms. Besides, Générale de Santé has initiated preparatory work related to the merger project with Ramsay Santé, as announced at the time of the simplified public tender offer for the Group's remaining shares, in October 2014. As the leading group in the private hospital sector, Générale de Santé can rely on strong fundamentals, having, for the past four years, deployed a patient-focused strategy and renowned healthcare channels, designed hand in hand with the 5,000 independent physicians practicing in our institutions."

• Reported revenue down 8.5% in 2014.

Corrected for the change in scope resulting from the sale of mental health and related activities at the end of 2013, the Group's revenue rose by 1.6% on a like-for-like basis.

• EBITDA reached €205.6 million, down by 8.9%.

The Group's EBITDA margin rate is stable at 12%, thus confirming the good control we have over our operational costs in a constrained pricing environment.

• Reported current operating profit stood at €96.1 million at end-December 2014, down from €104.4 million in 2013.

€ million	2014	Change	2013
Revenue	1,711.6	- 8.5%	1,869.7
EBITDA	205.6	- 8.9%	225.8
Current operating income	96.1	- 8.0%	104.4
As a % of revenue	5.6%		5.6%
Operating income	86.2	- 47.2%	163.3
Net income attributable to the Group	19.7	- 82.3%	111.3
Net earnings per share (€)	0.35	- 82.3%	1.97

Business - Decline in published revenue
Consolidated revenue at end-December 2014 totaled €1,711.6 million, compared to €1,869.7 million for the same period in 2013, a decrease of 8.5%. Excluding changes in the scope of consolidation, revenue grew by 1.6% in the period, thanks to a good fourth quarter.

€ million	2014	2013	Change2014/2013	T4 2014	T4 2013	Change2014/2013
Ile de France (Paris region)	751.7	742.3	+1.3%	196.8	191.9	+2.6%
Rhône Alpes	282.7	278.2	+1.6%	74.0	73.6	+0.5%
North	196.8	192.9	+2.0%	51.8	49.8	+4.0%
Provence Alpes Côte d'Azur	165.7	162.0	+2.3%	42.2	41.7	+1.2%
Burgundy	109.1	109.6	-0.5%	28.2	28.9	-2.4%
Other regions	205.6	199.0	+3.3%	55.5	51.3	+8.2%
Other activities (1)	--	185.7	-100.0%	--	33.4	-100.0%
Reported revenue	1,711.6	1,869.7	-8.5%	448.5	470.6	-4.7%
Of which:  - Organic	1,711.6	1,684.1	+1.6%	448.5	437.2	+2.6%
Of which organic France	1,688.5	1,661.2	+1.6%	442.4	431.1	+2.6%
Of which organic Italy	23.1	22.9	+0.9%	6.1	6.1	--
- Changes in scope	--	185.6	N/S	--	33.4	N/S

 

1. "Other activities" includes non-strategic businesses whose assets have been sold".

In France, the changes in scope are due to the disposals of Hôpital Privé Beauregard and Golfe de Saint-Tropez clinic 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 disposed of its mental health activities and related aftercare and rehabilitation clinics.

In France, the Hospital Care and Services activity recorded solid organic growth of 1.6% during 2014, driven by higher volumes.

At end-December 2014, medical, surgery and obstetrics care in the Group's hospitals grew by 0.5% on a like-for-like basis compared with 2013. This growth affected surgery (+0.9%) and medicine (+1.2%), while obstetrics continued to decline (-3.7%).

In connection with the public service missions managed by the Group, the number of emergency care treatments rose by 5.4% at end-December 2014, based on over 416,000 patient visits to emergency departments.

Organic revenue in Italy came solely from the activity of the Hôpital d'Omegna, which grew by 0.9% in 2014.

Results:

1) Decline in current operating profit
Consistent with the decline in published revenue, the Group's EBITDA decreased by 8.9% to €205.6 million, due to a marginal increase in the weighting of medical purchases over the year.

Current operating profit follows the same trend, an 8.0% decline in published data to €96.1 million.

2) Decline in operating profit and net profit
Operating profit fell by 47.2% to €86.2 million at end-December 2014. However, 2013 enjoyed the positive impact of the capital gain from the sale of the mental health division.

The Group's share of net earnings declined for the same reason and reached €19.7 million. In addition, the marginal drop in the cost of debt was completely offset by the increase in income tax expenses on earnings.

Net debt: net financial debt under IFRS rose to €758.1 million in 2014 (from €610.3 million at end-December 2013)
Générale de Santé signed a new syndicated loan agreement consisting of various facilities with a maximum total of €1.075 billion maturing in 2020, of which €500 million was drawn down at the time of the acquisition by Ramsay Healthcare and Crédit Agricole Assurance of a majority stake in Générale de Santé on October 1, 2014, chiefly for the purpose of refinancing its previous bank debt.

Net financial debt under IFRS also increased due to the payment on December 4, 2014 of an extraordinary dividend of €1.07, which was recognized under "additional paid-in capital" and an interim cash dividend of €1.40 for fiscal year 2014.

Net debt includes €812.7 million in borrowings and long-term financial debt and €49.0 million in short-term financial debt, versus €101.0 million in available cash.

The Board of Directors meeting on February 23, 2014, approved the 2014 financial statements. The audit procedures were completed and the Notes and Auditors' Report are being prepared.

 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/hopital-prive-d-antony

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

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	CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
( in million euros )		2012	2013	2014
TURNOVER		1,928.6	1,869.7	1,711.6
Personnel expenses and profit sharing		(873.5)	(826.8)	(737.8)
Purchased consumables		(362.0)	(347.2)	(343.6)
Other operating income and expenses		(214.5)	(229.8)	(211.3)
Taxes and duties		(85.1)	(83.3)	(74.2)
Rents		(153.8)	(156.8)	(139.1)
EBITDA		239.7	225.8	205.6
Depreciation		(124.5)	(121.4)	(109.5)
Current operating profit		115.2	104.4	96.1
Restructuring costs		(10.4)	(6.9)	(12.1)
Result of the management of real estate and financial assets		29.5	65.8	2.2
Impairment of goodwill		--	--	--
Other non current income and expenses		19.1	58.9	(9.9)
Operating profit		134.3	163.3	86.2
Gross interest expenses		(33.3)	(32.1)	(28.8)
Income from cash and cash equivalents		0.5	0.7	0.4
Net interest expenses		(32.8)	(31.4)	(28.4)
Other financial income		0.4	0.7	0.2
Other financial expenses		(6.3)	(4.6)	(5.2)
Other financial income and expenses		(5.9)	(3.9)	(5.0)
Corporate income tax		(36.5)	(13.2)	(29.7)
Share of net profit of associates		0.2	--	--
NET PROFIT FOR THE PERIOD		59.3	114.8	23.1
Revenues and expenses recognised directly as equity
- Retirement commitments		(1.7)	1.8	(3.1)
- Change in fair value of hedging financial instruments		0.6	10.2	5.5
- Translation differential		--	--	--
- Income tax on other comprehensive income		(0.1)	(4.5)	(0.3)
Results recognised directly as equity		(1.2)	7.5	2.1
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD		58.1	122.3	25.2
PROFIT ATTRIBUTABLE TO (in million euros)		2012	2013	2014
Group's share of net earnings		55.7	111.3	19.7
Non-controlling interests		3.6	3.5	3.4
NET PROFIT FOR THE PERIOD		59.3	114.8	23.1
NET EARNINGS PER SHARE (in euros)		0.99	1.97	0.35
NET DILUTED EARNINGS PER SHARE (in euros)		0.99	1.97	0.35
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO (in million euros)		2012	2013	2014
Group's comprehensive income for the period		54.5	118.8	21.8
Non-controlling interests		3.6	3.5	3.4
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD		58.1	122.3	25.2

   

CONSOLIDATED BALANCE SHEET - ASSETS
( in million euros )	12-31-2012	12-31-2013	12-31-2014
Goodwill	562.2	512.0	512.0
Other intangible fixed assets	19.0	18.8	14.1
Tangible fixed assets	809.8	697.9	681.2
Investments in associates	0.5	0.3	0.3
Other long-term investments	35.7	24.1	26.6
Deferred tax assets	44.5	49.3	44.0
NON CURRENT ASSETS	1,471.7	1,302.4	1,278.2
Inventories	33.2	33.2	40.0
Trade and other receivables	121.5	103.0	101.8
Other current assets	138.1	144.7	143.5
Current tax assets	2.5	6.5	3.3
Current financial assets	4.4	4.0	1.9
Cash and cash equivalents	---	---	101.0
Assets held for sale	1.5	5.3	6.8
CURRENT ASSETS	301.2	296.7	398.3
TOTAL ASSETS	1,772.9	1,599.1	1,676.5

   

CONSOLIDATED BALANCE SHEET - LIABILITIES AND EQUITY
( in million euros )	12-31-2012	12-31-2013	12-31-2014
Share capital	42.3	42.3	42.3
Additional paid-in capital	64.6	64.6	4.2
Consolidated reserves	211.5	228.2	219.9
Group's share of net profit	55.7	111.3	19.7
Group's share of equity	374.1	446.4	286.1
Non-controlling interests	12.2	11.3	11.7
TOTAL SHAREHOLDERS' EQUITY	386.3	457.7	297.8
Borrowings and financial debts	620.1	163.2	812.7
Provisions for retirement and other employee benefits	33.4	28.1	33.0
Non-current provisions	34.8	27.6	22.8
Other long term liabilities	24.9	11.7	5.8
Deferred tax liabilities	70.2	65.0	62.3
NON CURRENT LIABILITIES	783.4	295.6	936.6
Current provisions	8.9	11.6	12.0
Accounts payable	159.2	129.6	135.4
Other current liabilities	287.8	253.2	240.6
Tax liabilities due	3.9	4.0	5.1
Short-term borrowings	133.1	424.2	49.0
Bank overdraft	10.3	23.2	---
Liabilities related to assets held for sale	---	---	---
CURRENT LIABILITIES	603.2	845.8	442.1
TOTAL EQUITY AND LIABILITIES	1,772.9	1,599.1	1,676.5

   

 

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, 2011	42.3	64.6	295.7	(12.2)	(28.5)	361.9	12.4	374.3
Capital increase (including net fees)	--	--	--	--	--	--	--	--
Treasury shares	--	--	--	--	--	--	--	--
Stocks options and free share	--	--	--	--	--	--	--	--
Prior year appropriation of earnings	--	--	(28.5)	--	28.5	--	--	--
Distribution of dividends	--	--	(42.3)	--	--	(42.3)	(3.2)	(45.5)
Change in consolidation scope	--	--	--	--	--	--	(0.6)	(0.6)
Total comprehensive income for the period	--	--	--	(1.2)	55.7	54.5	3.6	58.1
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	--	--	--	--	--	--	--	--
Prior year appropriation of earnings	--	--	111.3	--	(111.3)	--	--	--
Distribution of dividends	--	(60.4)	(121.2)	--	--	(181.6)	(3.5)	(185.1)
Change in consolidation scope	--	--	(0.5)	--	--	(0.5)	0.5	--
Total comprehensive income for the period	--	--	--	2.1	19.7	21.8	3.4	25.2
Shareholders' equity at December 31, 2014	42.3	4.2	223.7	(3.8)	19.7	286.1	11.7	297.8
	12-31-2012	12-31-2013	12-31-2014
Dividends per share (in euros including pre-distribution)	0.75	0.75	3.22
Number of treasury shares	25 301	25 301	25 301

 

revenues and expenses recognised directly as equity
( in million euros )	12-31-2012	Income and expenses 2013	12-31-2013	Income and expenses 2014	12-31-2014
Translation differential	(0.3)	--	(0.3)	--	(0.3)
Retirement commitments	(2.8)	1.2	(1.6)	(1.9)	(3.5)
Fair value of hedging financial instruments	(10.3)	6.3	(4.0)	4.0	--
Results recognised directly as equity (Group's share)	(13.4)	7.5	(5.9)	2.1	(3.8)

   

CONSOLIDATED CASH FLOW STATEMENT
( in million euros )	2012	2013	2014
Total net consolidated profit	59.3	114.8	23.1
Depreciation	124.5	121.4	109.5
Other non current income and expenses.	(19.1)	(58.9)	9.9
Share of net profit of associates	(0.2)	--	---
Other financial income and expenses	5.9	3.9	5.0
Net interest expenses	32.8	31.4	28.4
Corporate income tax	36.5	13.2	29.7
EBITDA	239.7	225.8	205.6
Non cash items including provisions and reversals (transactions with no cash effect)	(1.4)	4.0	3.5
Other income and expenses paid	(23.0)	(19.8)	(16.0)
Changes in other long term assets and liabilities	(4.3)	(0.8)	(2.5)
Cash flow before net interest expenses & taxes	211.0	209.2	190.6
Corporate income tax paid	(36.3)	(28.6)	(22.9)
Change in working capital requirements	32.0	(29.3)	(8.7)
NET CASH FROM OPERATING ACTIVITIES: (A)	206.7	151.3	159.0
Purchase of property, plant & equipment and intangible assets	(55.3)	(67.4)	(62.5)
Proceeds from sale of tangible and intangible assets	10.0	110.2	---
Purchase of financial assets	(7.0)	---	(0.1)
Proceeds from the disposal of financial assets	40.3	79.3	0.7
Dividends from non consolidated companies	0.4	0.3	0.3
NET CASH USED FOR INVESTING ACTIVITIES: (B)	(11.6)	122.4	(61.6)
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)	(42.3)	(181.6)
Dividends paid to minority interests of consolidated companies: (e)	(3.2)	(2.9)	(3.5)
Net interest expense paid : (f)	(32.8)	(31.4)	(28.4)
Debt issue costs : (g)	---	---	(25.9)
Cash flow before repayment of borrowings: (h) = (A+B + a + b + c + d + e + f + g)	116.8	192.9	(142.0)
Increase in borrowings : (i)	25.0	15.0	698.2
Repayment of borrowings : (j)	(126.4)	(220.8)	(432.0)
NET CASH USED FOR FINANCING ACTIVITIES: (C) = a + b + c + d + e + f + g + i + j	(179.7)	(286.6)	26.8
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS: ( A + B + C )	15.4	(12.9)	124.2
Cash and cash equivalents at beginning of period	(25.7)	(10.3)	(23.2)
Cash and cash equivalents at end of period	(10.3)	(23.2)	101.0
Net indebtedness at beginning of period	854.4	769.1	610.3
Cash flow before repayment of borrowings: (h)	(116.8)	(192.9)	142.0
Capitalization of financial leases	32.8	114.2	35.3
Loan issue charges fixed assets (old)	3.5	3.5	3.4
Loan issue charges fixed assets (new)	---	---	(24.8)
Assets held for sale	(2.2)	3.8	1.6
Fair value of financial hedging instruments	(0.4)	(6.3)	(4.0)
Change in scope of consolidation and other	(2.2)	(81.1)	(5.7)
Net indebtedness at end of period	769.1	610.3	758.1

GDS : 2014 full year Results:
http://hugin.info/143423/R/1897196/673229.pdf

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The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: GENERALE DE SANTE via Globenewswire

HUG#1897196