a1bffce4-6c4f-4e17-9ae7-aaebf037d8ba.pdf
Paris, February 24, 2016
Press Release
H1 results at December 31, 2015
"Group results have held up well since the Ramsay Générale de Santé merger, in an environment that is still challenging"
H1 revenue fell back slightly by 1.5% at constant structure to EUR 816.5 million.
Net profit Group portion was EUR 14.3 million (against a loss of EUR 7.7 million in H2 2014).
Published EBITDA rose by 42.1% to EUR 113.1 million (steady at constant structure), and margin also improved.
Integration work was completed in advance after the Ramsay Générale de Santé merger.
High levels of investment were maintained, and the integration of the Lille based group HPM acquired in December 2015 was launched.
"Despite a more complicated context of volumes and serious price constraints affecting revenue (-1.5% at constant structure), our action plan to cut costs has kept our EBITDA steady and pushed up our margin at constant structure", said Group CEO Pascal Roché. "The July merger between Ramsay Santé and Générale de Santé has now been successfully completed, consolidating our leadership and market share (17%). Following this development, a high level of investment has been maintained to continue to tirelessly boost quality healthcare and future financial results. Work has also begun on integrating the HPM group, a market leader in the Lille region with 9 hospitals and clinics. "
Information and reminders
It should be borne in mind that the reporting date of the Générale de Santé Group's financial statements was December 31, 2014 up to the general meeting on June 9, 2015, which changed it to June 30 as of the year ended June 30, 2015.
The financial statements at year-end 2015 should therefore be interpreted as the financial position and results of the first half of a 12-month company year ending on June 30, 2016.
For easier reading of the results, in the tables attached we have reproduced a comparative six- month period between July 1 and December 31, 2014, recalculated to reflect the difference between the published annual financial information as of December 31, 2014 and the published interim financial information as of June 30, 2014.
It should also be borne in mind that the results of our last published company year related to a shorter period of 6 months between January 1, 2015 and June 30, 2015.
Pro forma financial information is also presented below. This is intended to provide an illustration, for information purposes, of the effects of the absorption merger with Ramsay Santé by Générale de Santé on July 1, 2015 and refinancing of the target company Ramsay Santé, concomitantly with the merger, on the balance sheet at June 30, 2015 and on the income statement for the period between July 1, 2014 and June 30, 2015, as though these operations had taken place at June 30, 2015, in the case of the balance sheet, and at July 1, 2014, in the case of the income statement.
Générale de Santé's auditors conducted a review of this note as part of their work on the registration document.
The pro forma balance sheet and the pro forma income statement were respectively drawn up in millions of euros at June 30, 2015 in the case of the balance sheet, and for the period between July 1, 2014 and June 30, 2015 in the case of the income statement. The absorption merger with Ramsay Santé by Générale de Santé was posted as a business combination pursuant to the revised IFRS 3 standard.
Pro forma adjustments are based on the information available and on a number of assumptions considered reasonable by Générale de Santé.
Pro Forma Financial Information is presented solely for illustrative purposes and does not provide an indication of the financial position of the merged entity that would have been obtained if the Operations had been carried out at June 30, 2015, in the case of the balance sheet, or of results for the period between July 1, 2014 and June 30, 2015 in the case of the income statement. Nor does it provide any indication of the future results or financial position of the merged entity. Pro Forma Financial Information does not include any consequences of the synergies.
Finally, on December 17, 2015 Ramsay Générale de Santé also announced it had completed acquisition of the Hôpital Privé Métropole group (HPM). Ramsay Générale de Santé added this group to the scope of consolidation in its consolidated financial statements at December 31, 2015, and therefore the income statement for the period is unaffected.
Revenue and company business
The Group's consolidated revenue amounted to EUR 1,015.6 million for the six months between July 1 and December 31, 2015, compared to EUR 828.8 million between July 1 and December 31, 2014. This represented an increase of 22.5% thanks to the addition of Ramsay Santé group companies to the scope of consolidation, in the amount of EUR 199.1 million.
On a like-for-like basis, consolidated revenue was down by 1.5%.
On the comparable scenario, business between July and December 2015 was down by 0.1% against the same period in 2014 (with one more working day).
Surgery was down by 0.5% in the 6 months between July and December 2015, hit by a fall in orthopedics, whereas gastroenterological surgery, spine surgery and neurosurgery rose considerably.
Medicine was up by 1.2% on the six-month period, pulled up by dynamic interventional medicine.
Gynecology-obstetrics continued to move down, by 2.9% over the 6 months, with 3% fewer births.
In terms of the group's public service facilities, the number of emergency cases was up by 3.9% during the 6-month period to December 31, 2015, with 217,000 emergency admissions to our facilities.
The Group's psychiatric units, which merged with Ramsay Santé on July 1, 2015, received a boost of 2.3% on the number of days billed during the 6-month period.
Results
The comparative six-month period ending December 31, 2014 was recalculated to reflect the difference between the published annual financial information as of December 31, 2014 and the published interim financial information as of June 30, 2014.
EBITDA stood at EUR 113.1 million, up by 42.1% against the published figures. EBITDA margin against revenue improved substantially, moving up from 9.6% between July 1 and December 31, 2014 to 11.1% in 2015. At constant structure and accounting methods, EBITDA remained steady and margin improved thanks to the action plans launched in the spring of 2015, especially in relation to purchases, in a bid to counter the detrimental effects of government measures.
The Group's current operating profit doubled to EUR 49.4 million. Non-recurring expenditure and restructuring costs fell in comparison to 2014, which included expenditure on Group refinancing. On the other hand, the net cost of financial debt rose along with debt arising from the merger with Ramsay Santé.
Overall, the Ramsay Générale de Santé Group posted a net profit, Group portion of EUR 14.3 million, as against a loss of EUR 7.7 million between July 1 and December 31, 2014.
Debt
Net IFRS debt at December 31, 2015 rose to EUR 1,097 million, as against EUR 729.3 million at June 30, 2015, due to two significant transactions during the period:
The Extraordinary Shareholders' Meeting of July 1, 2015 approved the merger agreement under which Ramsay Santé transferred to Générale de Santé, by way of a merger through absorption, all of its assets and liabilities, effective retroactively as of July 1, 2015 at 00:00. The exchange ratio agreed was 10 Générale de Santé shares for every 37 Ramsay Santé shares.
At the same Extraordinary Shareholders' Meeting, a capital increase in the amount of EUR 14,647,425 was decided, corresponding to the issuance of 19,529,900 new shares in consideration of the absorption merger.
Concomitant to the merger, the Group proceeded with a drawdown of EUR 240 million ("Term B2 facility"), negotiated in connection with the new syndicated credit agreement executed on October 1, 2014, which contains a number of facilities totaling EUR 1.075 billion, due to mature in 2020. The purpose of this Term B2 facility was to refinance Ramsay Santé's debt.
Ramsay Générale de Santé SA issued this content on 24 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 24 February 2016 17:06:04 UTC
Original Document: http://ramsaygds.com/sites/default/files/pdf/rgds_resultats_fin_decembre_2015_-_communique_presse_us_240216.pdf
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