Quarterly Financial Information as of September
30, 2016
IFRS - Regulated Information - Not Audited
Cegedim: robust revenue growth
continued in third quarter 2016, and the decline in EBITDA
slowed
-
Revenue up 4.9% like for like in Q3 2016
-
Margins temporarily pinched by investments and
the start of operations with BPO clients
-
Positive net income of €3.4 million compared
with a loss a year ago
-
2016 revenue target revised upward and 2016
EBITDA target maintained
Disclaimer: Pursuant to IAS 17 as it applies to
Cegelease's activities, leases are now classified as financial
leases, resulting in an adjustment to the quarterly 2015 figures
published in 2015. Readers should refer to the last annexes of this
press release for full details of the adjustments. All of the
figures in this press release reflect the adjustments. Furthermore,
the consolidated data presented in this press release relate to
continuing activities, unless otherwise mentioned. |
Conference CALL ON November 29, 2016, at 6:15pm
cet |
FR : +33 1 70 77 09 44 |
USA : +1 866 907 5928 |
UK : +44 (0)20 3367 9453 |
No access code required |
|
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Boulogne-Billancourt, November
29, 2016
Cegedim, an
innovative technology and services company, posted consolidated
first nine months of 2016 revenues of €318.3 million, up 3.7% on a
reported basis and 4.0% like for like compared with the same period
in 2015. EBITDA came to €40.6 million in first nine months of 2016,
down 22.4% year on year.
In the third quarter 2016, revenues came to €102.8
million, up 2.6% on a reported basis and 4.9% like for like. The Q3
2016 EBITDA came to €14.9 million, down 13.4% year on year.
The revamp of the business model
continues and will allow Cegedim to enjoy
greater customer loyalty, closer client relationships, simpler
operating processes, more robust offerings and stronger geographic
positions. The changes now under way will also boost the share of
recurring revenues, improve sales growth and predictability, and
enhance the Group's profitability. Profitability has been
negatively affected during this business model transition.
Cegedim expects to begin seeing the initial
positive impact of its investments, reorganizations and
transformations in 2017, with a full impact in 2018.
As proof that its clients see the
relevance of its new strategy, Cegedim is
revising its 2016 revenue target upward once again, and reiterates
its 2016 EBITDA target. However, there is a chance that recently
signed BPO contracts could negatively affect profitability in the
fourth quarter of 2016, since related revenues will not be
recognized until 2017.
Simplified income
statement
|
9M 2016 |
9M 2015 |
Chg. |
|
In €m |
In % |
In €m |
In % |
In % |
Revenue |
318.3 |
100.0% |
306.9 |
100.0% |
+3.7% |
EBITDA |
40.6 |
12.7% |
52.3 |
17.0% |
(22.4)% |
Depreciation |
(25.3) |
- |
(22.4) |
- |
+12.7% |
EBIT before special items |
15.3 |
4.8% |
29.9 |
9.7% |
(48.9)% |
Special
items |
(5.7) |
- |
(5.0) |
- |
+14.3% |
EBIT |
9.6 |
3.0% |
24.8 |
8.1% |
(61.6)% |
Cost of net
financial debt |
(25.2) |
- |
(32.7) |
- |
(22.9)% |
Tax
expenses |
(1.4) |
- |
(2.5) |
- |
(42.8)% |
Consolidated profit from continuing activities |
(15.5) |
(4.9)% |
(9.0) |
(2.9)% |
(72.9)% |
Net
earnings from activities held for sale |
(1.2) |
- |
32.2 |
- |
n.m. |
Profit
attributable to the owners of the parent |
(16.8) |
(5.3)% |
23.2 |
7.6% |
n.m. |
EPS before
special items |
(0.7) |
- |
(0.3) |
- |
(146.4)% |
Over the third quarter of 2016,
Cegedim posted consolidated revenues of €102.8
million, up 2.6% on a reported basis. Excluding an unfavorable
currency translation effect of 2.3%, revenues rose 4.9%. There were
no disposals or acquisitions. In like-for-like terms the Health Insurance, HR and e-services division's revenues
rose by 9.5%, whereas the Healthcare professionals division's revenues fell by 0.7%.
In the first nine months of 2016,
Cegedim posted consolidated revenues of €318.3
million, up 3.7% on a reported basis. Excluding an unfavorable
currency translation effect of 1.4% and a 1.1% boost from
acquisitions, revenues rose 4.0%. In like-for-like terms the
Health Insurance,
HR and e-services
division's revenues rose by 9.5%, whereas the Healthcare professionals
division's revenues fell by 2.3%.
EBITDA
declined by €11.7 million, or 22.4%, to €40.6 million. The
first-nine month's margin fell to 12.7% from 17.0% a year earlier.
The EBITDA trend was attributable to investments made in human
resources and innovation in order to speed up the transition of
software products to cloud-based formats and swiftly roll out the
Group's new BPO offerings. It is worth noting that more than 80% of
this decline occurred during the first half of 2016.
Depreciation
charges rose €2.9 million, from €22.4 million for the first
nine months of 2015 to €25.3 million for the first nine months of
2016. Amortization of R&D expenses over the period amounted to
1.0 million.
EBIT from
recurring operations fell €14.6 million over the first nine
months of 2016, or 48.9%, to €15.3 million. The margin fell from
9.7% for the first nine months of 2015 to 4.8% for the first nine
months of 2016.
Special items
amounted to a €5.7 million charge over the first nine months of
2016 compared with a €5.0 million charge a year earlier. The
increase was chiefly due to the increase in restructuring costs due
to the implementation of new organizational structures.
The net cost of
financial debt amounted to €25.2 million over the first nine
months of 2016 compared to €32.7 million for the first months of
2015, a decrease of €7.5 million, or 22.9%. It represented 7.9% of
first nine months 2016 revenues, compared with 10.7% of first nine
months 2015 revenues. This decline reflects lower interest expenses
in the second and third quarters as a result of the debt
restructuring carried out in January and March 2016.
Tax amounted
to €1.4 million for the first nine months of 2016, compared with
€2.5 million for the first nine months of 2015, a decrease of €1.1
million, or 42.8%. This was chiefly due to the lack of corporate
income tax.
Thus, the consolidated net result from continuing activities came
to a loss of €15.5 million at end-September 2016, compared with a
loss of €9.0 million in the year-earlier period. Earnings per share before special items came to loss of
€0.7 at end of September 2016, compared with a €0.3 loss a year
earlier. Note that consolidated net result from
continuing activities came to €3.4million profit in the third
quarter, compared with a €0.7 million loss a year earlier.
Analysis of business trends by
division
|
|
Revenue |
|
EBIT before special items |
|
EBITDA |
In €m |
|
9M 2016 |
9M 2015 |
|
9M 2016 |
9M 2015 |
|
9M 2016 |
9M 2015 |
Health
Insurance, HR and e-services |
|
185.2 |
166.2 |
|
15.4 |
18.0 |
|
26.8 |
29.9 |
Healthcare Professionals |
|
130.8 |
138.0 |
|
2.3 |
13.3 |
|
12.1 |
21.8 |
Activities not allocated |
|
2.3 |
2.8 |
|
(2.4) |
(1.4) |
|
1.6 |
0.6 |
Cegedim |
|
318.3 |
306.9 |
|
15.3 |
29.9 |
|
40.6 |
52.3 |
Over the first
nine months of 2016, division revenues came to €185.2 million, up
11.4% on a reported basis. The July 2015 acquisition of Activus in
the UK made a positive contribution of 2.0%. Currencies had
virtually no impact. Like-for-like revenues rose 9.5% over the
period.
The Health
insurance, HR and e-services division
represented 58.2% of consolidated revenues from continuing
activities, compared with 54.1% over the same period a year
earlier.
The division's Q3 2016 revenues came to €60.6
million, up 9.3% on a reported basis. There were no disposals or
acquisitions. Currencies had virtually no impact. Like-for-like
revenues rose 9.5% over the period:
This significant revenue growth
over the first nine months of 2016 was chiefly attributable to:
-
Cegedim Insurance
Solutions, driven by double-digit growth in its iGestion BPO activities and a brisk increase in
third-party payment processing. The start of operations with new
clients allowed the software and services business for the personal
insurance segment to more than offset the effects of switching over
to the cloud.
-
Double-digit growth at Cegedim
e-business following the start of operations with new clients
on its Global Information Services SaaS
platform for digital data exchanges, including payment
platforms.
-
The start of operations with numerous clients on
the Cegedim SRH SaaS platform for human
resources management, resulting in double-digit revenue
growth.
Over the first
nine months of 2016, division EBITDA came to €26.8 million, down
€3.1 million, or 10.4%. The EBITDA margin came to 14.5%, vs. 18.0%
a year earlier.
In the third quarter of 2016, division EBITDA came
€9.0 million, slightly down €0.2 million, or 2.1%. The EBITDA
margin came to 14.8%, vs. 16.6% a year earlier.
The decline in EBITDA took place
almost entirely in the first half of 2016, as third-quarter EBITDA
was virtually stable. The decline in the first half was chiefly the
result of:
-
The start of operations with BPO clients for
iGestion and Cegedim
e-business;
-
Cegedim Insurance Solutions
switching its core products over to SaaS format, the start of
operations with numerous new clients, and the start of new projects
for existing clients;
-
A difference in the timing of promotional
campaigns in the first half of 2016 compared to 2015 for RNP;
The impact was partially offset by
Cegedim SRH's fine performance in processing
third-party payment flows
Over the first
nine months of 2016, division revenues came to €130.8 million, down
5.2% on a reported basis. Currency effects made a negative
contribution of 2.9%. There was no impact from acquisitions or
divestments. Like-for-like revenues fell 2.3% over the
period.
The Healthcare professionals division
represented 41.1% of consolidated revenues from continuing
activities, compared with 45.0% over the same period a year
earlier.
The division's Q3 2016 revenues came to €41.5
million, down 5.6% on a reported basis. Currency effects made a
negative contribution of 4.9%. There was no impact from
acquisitions or divestments. Like-for-like revenues fell 0.7% over
the period.
The decline in revenues over the
first nine months of 2016 was mainly due to the following:
-
A slowing in the UK doctor computerization
business in anticipation of the early-2017 launch of a cloud-based
offering. Marketing for that offering should restore sales
momentum;
-
The September 2016 release in France of the new
Smart Rx offering - a comprehensive pharmacy
management solution built around a hybrid architecture that
combines local and cloud-based computing. The new solution allows
networks amongst individual pharmacies and links with healthcare
professionals. Thus, revenues at the French pharmacy business are
likely to resume their growth in the next few months.
-
The negative short-term impact of switching
Belgian doctors over to SaaS format.
These performances were offset
mainly by a double-digit growth:
-
At Pulse, driven by the RCM
and EHR activities.
-
In offerings for physical therapists and nurses
in France.
Over the first
nine months of 2016, division EBITDA came to €12.1 million, down
€9.6 million, or 44.3%. The EBITDA margin came to 9.3%, vs. 15.8% a
year earlier.
In the third quarter of 2016, division EBITDA came
€4.7 million, slightly down €2.9 million, or 38.2%. The EBITDA
margin came to 11.4%, vs. 17.3% a year earlier.
The decline in EBITDA was chiefly
attributable to investments made to ensure future growth. The Group
was chiefly penalized by the investments it made in:
-
France, to develop the new hybrid offering for
pharmacies;
-
The US, focusing on Revenue Cycle Management
(RCM) activities and SaaS electronic health records (EHR);
-
The UK, where it aims to have a cloud-based
offering for UK doctors in 2017
EBITDA felt a pinch in the short
term from efforts to switch Belgian doctors over to SaaS format and
reorganize the business in the US.
Over the first
nine months of 2016, division revenues came to €2.3 million, down 15.4% on a reported basis and like for
like. There were no currency effects and no acquisitions or
divestments.
The Activities not allocated division represented 0.7% of consolidated revenues from
continuing activities, compared with 0.9% over the same period a
year earlier.
The division's Q3
2016 revenues came to €0.8 million, down 8.7%
on a reported basis and like for like. There were no currency
effects and no acquisitions or divestments.
This trend reflects the return to
a normal level of billing.
Over the first
nine months of 2016, division EBITDA came to €1.6 million, up €1.0
million. In the third quarter of 2016, division EBITDA came €1.2
million, up €0.8 million.
Financial resources
Cegedim's
consolidated total balance sheet amounted to €659.9 million, at
September 30, 2016,
Acquisition
goodwill represented €183.8 million at September 30, 2016,
compared with €188.5 million at end-2015. The €4.7 million
decrease, equal to 2.5%, was mainly attributable to the euro's
appreciation against the British pound, for a total of €4.8
million. Acquisition goodwill represented 27.9% of the total
balance sheet at September 30, 2016, compared with 21.8% on
December 31, 2015.
Cash and
equivalents came to €9.1 million at September 30, 2016, a
decrease of €222.2 million compared with December 31, 2015. The
drop was principally due to the early redemption of the 2020 bond
for a nominal value of €340.1 million, payment of a €15.9 million
early redemption premium, and an €9.8 million deterioration in WCR,
partly offset by drawing €169.0 million from the €200 million
revolving credit facility. Cash and equivalents represented 1.4% of
the total balance sheet at September 30, 2016, compared with 26.8%
at December 31, 2015.
Shareholders'
equity fell by €32.7 million, i.e. 14.3%, to €195.4 million at
September 30, 2016, compared with €228.1 million at December
31, 2015. Shareholders' equity represented 29.6% of the total
balance sheet at end-September 2016, compared with 26.4% at
end-December 2015.
Net financial
debt amounted to €215.6 million at end-September 2016, up €48.0
million compared with end-December 2015. It represented 110.3%
of Group shareholders' equity at September 30, 2016.
Before the net
cost of financial debt and taxes, cash flow was €44.6 million
at September 30, 2016, compared with €51.5 million at
September 30, 2015.
Highlights
Apart from the items cited below,
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.
In January 2016, the Group took
out a new five-year revolving credit facility (RCF) of €200
million. The applicable interest rate for this credit facility is
Euribor plus a margin. The Euribor rate can be the 1-, 3- or 6-
month rate; if Euribor is below zero, it will be deemed to be equal
to zero. The margin can range from 0.70% to 1.40% depending on the
leverage ratio calculated semi-annually in June and December (Refer
to point 2.4.1.1 on page 14 of the Q2-2016 Quarterly Financial
Report).
On April 1, 2016, Cegedim exercised its call option on the entire 6.75%
2020 bond with ISIN code XS0906984272 and XS0906984355, for a total
principal amount of €314,814,000.00 and a price of 105.0625%, i.e.
a total premium of €15,937,458.75. The company then cancelled these
securities. The transaction was financed by drawing a portion of
the RCF obtained in January 2016 and using the proceeds of the sale
to IMS Health. Following this transaction, the Group's debt
comprised the €45.1 million FCB subordinated loan, the partially
drawn €200 million RCF, and overdraft facilities.
After Cegedim
announced that it would redeem the entire 6.75% 2020 bond, rating
agency Standard and Poor's raised the company's rating on April 28,
2016, to BB with a positive outlook.
Significant post-closing
transactions and events
Apart from the items cited below,
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.
Cegedim
announced on November 2, 2016, that it has signed a heads of
agreement to acquire Futuramedia Group. This
deal will strengthen the digital offerings of its subsidiary
RNP, which specializes in pharmacy displays in
France.
Last year Futuramedia Group generated revenues of around €5.4
million. It will have an accretive impact on Cegedim Group's margins and will begin contributing to
the Group's consolidation scope from December 1, 2016.
The Kadrige business was sold to
IMS Health on November 9, 2016.
Outlook
Cegedim is revising upward its
target for 2016 revenues and maintained it 2016 EBITDA target,
despite economic uncertainty and a challenging geopolitical
environment. Thus for the full year 2016, Cegedim expects:
-
Like-for-like revenue growth of 4% instead of at
least 3% before.
-
EBITDA down by €10 million relative to 2015.
However, the signing of a significant BPO contracts in third
quarter 2016 could have an impact on Group profitability in fourth
quarter 2016, because revenues related to the contract will not be
booked until 2017.
Cegedim expects to begin seeing
the initial positive impact of its investments, reorganizations and
transformations in 2017, with a full impact in 2018.
In 2016, the Group acquired
Futuramedia. It currently has no plans for further significant
acquisitions. Lastly, the Group does not communicate earnings
estimates or forecasts.
In 2015, the UK accounted for
15.1% of consolidated Group revenues and 19.2% of consolidated
Group EBIT.
Cegedim deals in local currency in
the UK, as it does in every country where it is present. Thus,
Brexit is unlikely to have a material impact on Group EBIT.
With regard to healthcare policy,
the Group has not identified any major European programs at work in
the UK and expects UK policy to be only marginally affected by
Brexit.
Starting in 2017, Cegedim will
only publish half-year and annual results. It will, however,
continue to publish quarterly revenues.
The figures cited above include
guidance on Cegedim's future financial performances. This
forward-looking information is based on the opinions and
assumptions of the Group's senior management at the time this press
release is issued and naturally entails risks and uncertainty. For
more information on the risks facing Cegedim, please refer to
points 2.4, "Risk factors and insurance", and 3.7, "Outlook", of
the 2015 Registration Document filed with the AMF on March 31,
2016, as well as point 2.4, "Risk factors", of the Interim
Financial Report of Q3 2016.
|
December 14, 2016, at 1:30pm
January 26, 2017, after market
closing
March 22, 2017, after market closing
March 23, 2017, at 10:00am CET
April 27, 2017, after market closing |
7th Investor
Day
Full year 2016 revenue
Full year 2016 earnings
Analyst meeting (SFAF meeting)
Q1 2017 revenues |
Financial calendar
November 29, 2016, at
6:15pm (Paris time) |
The Group
will hold a conference call hosted by Jan Eryk Umiastowski, Cegedim
Chief Investment Officer and Head of Investor Relations.
The Q3 2016 earnings presentation is available at:
The website:
http://www.cegedim.fr/finance/documentation/Pages/presentations.aspx
The Group's financial communications app, Cegedim IR. To download
the app, visit:
http://www.cegedim.fr/finance/profil/Pages/CegedimIR.aspx |
Contact numbers: |
France: +33 1 70 77 09 44
United States: +1 866 907 5928
UK and others: +44 (0)20 3367 9453 |
No access code required |
Informations
additionnelles
The Audit
Committee met on November 25, 2016, and the Board of Directors met
on November 29, 2016, to review the Q3 2016 consolidated financial
statements. |
|
The interim financial report for Q3 2016 is
available:
In French:
http://www.cegedim.fr/finance/documentation/Pages/rapports.aspx
In English:
http://www.cegedim.com/finance/documentation/Pages/reports.aspx
To download the app, visit
http://www.cegedim.fr/finance/profil/Pages/CegedimIR.aspx. |
Appendices
Balance sheet as September 30,
2016
In
thousands of euros |
09.30.2016 |
12.31.2015(1) |
Goodwill on acquisition |
183,814 |
188,548 |
Development costs |
38,719 |
16,923 |
Other
intangible fixed assets |
96,157 |
108,166 |
Intangible fixed assets |
134,876 |
125,089 |
Property |
459 |
459 |
Buildings |
4,824 |
5,021 |
Other
tangible fixed assets |
20,123 |
16,574 |
Construction work in progress |
684 |
51 |
Tangible fixed assets |
26,090 |
22,107 |
Equity
investments |
1,098 |
1,098 |
Loans |
3,138 |
3,146 |
Other
long-term investments |
5,719 |
5,730 |
Long-term invetsments - excluding equity shares in equity
method companies |
9,956 |
9,973 |
Equity
shares in equity method companies |
9,780 |
10,105 |
Government
- Deferred tax |
29,672 |
28,722 |
Accounts
receivable: Long-term portion |
26,916 |
26,544 |
Other
receivables: Long-term portion |
407 |
1,132 |
Non-current assets |
421,511 |
412,219 |
Services
in progress |
- |
0 |
Goods |
10,429 |
8,978 |
Advances
and deposits received on orders |
1,012 |
218 |
Accounts
receivables: Short-term portion |
155,039 |
161,923 |
Other
receivables: Short-term portion |
48,929 |
32,209 |
Cash
equivalents |
8,000 |
153,001 |
Cash |
1,142 |
78,298 |
Prepaid
expenses |
13,023 |
16,666 |
Current Assets |
237,575 |
451,293 |
Assets of
activities held for sale |
840 |
768 |
Total Assets |
659,925 |
864,280 |
-
Restated see note "Correction
of the accounting treatment of the finance lease business in the
group consolidated financial statement.
In
thousands of euros |
09.30.2016 |
12.31.2015(1) |
Share
capital |
13,337 |
13,337 |
Group
reserves |
202,113 |
139,287 |
Group
exchange gains/losses |
(3,283) |
8,469 |
Group
earnings |
(16,782) |
66,957 |
Shareholders' equity, Group share |
195,384 |
228,051 |
Minority
interests (reserves) |
9 |
39 |
Minority
interests (earnings) |
10 |
41 |
Minority interests |
19 |
79 |
Shareholders' equity |
195,403 |
228,130 |
Long-term
financial liabilities |
220,518 |
51,723 |
Long-term
financial intruments |
2,517 |
3,877 |
Deferred
tax liabilities |
6,131 |
6,731 |
Non-current provisions |
26,064 |
19,307 |
Other
non-current liabilities |
13,208 |
14,376 |
Non-current liabilities |
268,439 |
96,014 |
Short-term
financial liabilities |
4,242 |
347,213 |
Short-term
financial instruments |
5 |
5 |
Accounts
payable and related accounts |
49,858 |
54,470 |
Tax and
social liabilities |
60,623 |
70,632 |
Provisions |
2,930 |
2,333 |
Other
current liabilities |
77,457 |
61,657 |
Current liabilities |
195,116 |
536,311 |
Liabilities of activities held for sale |
968 |
3,823 |
Total Liabilities |
659,925 |
864,280 |
(1) Restated see
note "Correction of the accounting treatment of the finance lease
business in the group consolidated financial statement".
· Income
statements as of September 30, 2016
In
thousands of euros |
09.30.2016 |
09.30.2015(1) |
Revenue |
318,345 |
306,889 |
Other
operating activities revenue |
- |
- |
Purchased
used |
(24,704) |
(26,600) |
External
expenses |
(93,962) |
(81,696) |
Taxes |
(5,469) |
(7,858) |
Payroll
costs |
(150,447) |
(136,258) |
Allocations to and reversals of provisions |
(2,952) |
(2,739) |
Change in
inventories of products in progress and finished products |
- |
- |
Other
operating income and expenses |
(249) |
555 |
EBITDA |
40,562 |
52,294 |
Depreciation expenses |
(25,295) |
(22,444) |
Operating
income from recurring operations |
15,267 |
29,850 |
Depreciation of goodwill |
- |
- |
Non-recurrent income and expenses |
(5,717) |
(5,003) |
Other exceptional operating income and expenses |
(5,517) |
(5,003) |
Operating income |
9,550 |
24,847 |
Income
from cash and cash equivalents |
1,056 |
1,202 |
Gross cost
of financial debt |
(27,215) |
(32,775) |
Other
financial income and expenses |
914 |
(1,153) |
Cost of net financial debt |
(25,245) |
(32,726) |
Income
taxes |
(579) |
(2,134) |
Deferred
taxes |
(867) |
(394) |
Total taxes |
(1,446) |
(2,528) |
Share of
profit (loss) for the period of equity method companies |
1,613 |
1,428 |
Profit
(loss) for the period from continuing activities |
(15,528) |
(8,979) |
Profit
(loss) for the period from discontinued activities |
(1,244) |
32,186 |
Consolidated profit (loss) for the period |
(16,772) |
23,207 |
Group share |
(16,782) |
23,217 |
Minority
interests |
10 |
(10) |
Average number of shares excluding treasury stock |
13,955,230 |
13,934,479 |
Current Earnings Per Share (in euros) |
(0.7) |
(0.3) |
Earnings Per Share (in euros) |
(1.2) |
1.7 |
Dilutive
instruments |
None |
None |
Earning for recurring operation per share (in
euros) |
(1.2) |
1.7 |
(1) Restated see
note "Correction of the accounting treatment of the finance lease
business in the group consolidated financial statement.
In
thousands of euros |
09.30.2016 |
09.30.2015(1) |
Consolidated profit (loss) for the period |
(16,772) |
23,207 |
Share of
earnings from equity method companies |
(1,613) |
(1,470) |
Depreciation and provisions |
36,395 |
22,929 |
Capital
gains or losses on disposals |
(86) |
(30,687) |
Cash flow after cost of net financial debt and
taxes |
17,925 |
13,979 |
Cost of
net financial debt |
25,262 |
31,758 |
Tax
expenses |
1,448 |
5,744 |
Operating cash flow before cost of net financial debt and
taxes |
44,636 |
51,481 |
Tax
paid |
(3,743) |
(9,877) |
Change in
working capital requirements for operations: requirement |
(9,849) |
(23,097) |
Cash flow generated from operating activities after tax
paid and change in working capital requirements (A) |
31,044 |
18,507 |
Of which
net cash flows from operating activities of held for sales |
2,019 |
5,177 |
Acquisitions of intangible assets |
(33,667) |
(30,381) |
Acquisitions of tangible assets |
(10,496) |
(9,731) |
Acquisitions of long-term investments |
- |
- |
Disposals
of tangible and intangible assets |
699 |
1,532 |
Disposals
of long-term investments |
(265) |
1,604 |
Impact of
changes in consolidation scope |
(1,448) |
319,370 |
Dividends
received from equity method companies |
- |
81 |
Net cash flows generated by investment operations
(B) |
(45,177) |
282,475 |
Of which
net cash flows connected to investment operations of activities
held for sales |
(13) |
(7,482) |
Dividends
paid to parent company shareholders |
- |
- |
Dividends
paid to the minority interests of consolidated companies |
(87) |
(69) |
Capital
increase through cash contribution |
- |
- |
Loans
issued |
169,000 |
- |
Loans
repaid |
(340,259) |
(144,457) |
Interest
paid on loans |
(31,630) |
(41,530) |
Other
financial income and expenses paid or received |
(995) |
(643) |
Net cash flows generated by financing operations
(C) |
(203,971) |
(186,699) |
Of which
net cash flows related to financing operations of activities held
for sales |
(16) |
(850) |
Change In Cash without impact of change in foreign currency
exchange rates (A + B + C) |
(218,104) |
114,283 |
Impact of
changes in foreign currency exchange rates |
(954) |
2,850 |
Change in cash |
(219,057) |
117,133 |
Opening
cash |
228,120 |
99,715 |
Closing
cash |
9,062 |
216,848 |
(1) Restated see
note "Correction of the accounting treatment of the finance lease
business in the group consolidated financial statement"
Cegelease is
a wholly owned subsidiary of Cegedim which
offers since 2001 financing options through a variety of contracts
dedicated to pharmacies and healthcare professionals in
France.
Initially, these solutions were
aimed at serving the pharmacists, who preferred leasing instead of
paying up-front, the pharmacies management system software that
they bought from the Cegedim group.
As time passed, Cegelease diversified its activities. Starting as the
exclusive finance lease provider for Cegedim group products,
Cegelease converted to a broker proposing a
variety of leasing solutions (for group products as well as
products developed by third parties) offered to a variety of
clients (including clients who are not already in business with
other group entities).
After the sale of its CRM and strategic data business to IMS Health,
Cegedim investigated in depth these activities
and found that they had to be reclassified pursuant to IAS 17 on
March 23, 2016 when the 2015 accounts were published.
All the impacts on previous
accounts are indicated in the 2015 Registration Document filled
with the AMF on March 31, 2016 in Chapter 4.4 point 1.3 on page 89
to 94, as well as in the Q1 2016 Financial Interim Report in point
2.5.1 on page 17 to 19, in the Q2 2016 Financial Interim Report in
point 2.5.1 on page 17 and in the Q3 2016 Financial Interim Report
in point 2.5.1 on page 17.
Impacts for the first nine months
of 2015 consolidated financial statements are described below:
In €
million |
09.30.2015
reported(1) |
Correction of leases |
09.30.2015
restated |
Revenue |
365,270 |
(58,381) |
306,889 |
Other
operating activities revenue |
- |
- |
- |
Purchases
used |
(64,883) |
38,284 |
(26,600 |
External
expenses |
(92,014) |
10,318 |
(81,696) |
Taxes |
(7,858) |
|
(7,858) |
Payroll
costs |
(136,258) |
- |
(136,258) |
Allocations to and reversals of provisions |
(2,739) |
- |
(2,739) |
Change in
inventories of products in progress and finished products |
- |
- |
- |
Other
operating income and expenses |
555 |
- |
555 |
EBITDA |
62,073 |
(9,780) |
52,294 |
Depreciation expenses |
(32,047) |
9,603 |
(22,444) |
Operating income from recurring operations |
30,026 |
(176) |
29,850 |
Depreciation of goodwill |
- |
- |
- |
Non-recurrent income and expenses |
(5,003) |
- |
(5,003) |
Other exceptional operating income and expenses |
(5,003) |
- |
(5,003) |
Operating income |
25,024 |
(176) |
24,847 |
Income
from cash and cash equivalents |
1,202 |
- |
1,202 |
Gross cost
of financial debt |
(32,775) |
- |
(32,775) |
Other
financial income and expenses |
(1,153) |
- |
(1,153) |
Cost of net financial debt |
(32,726) |
- |
(32,726) |
Income
taxes |
(2,134) |
- |
(2,134) |
Deferred
taxes |
(461) |
67 |
(394) |
Total taxes |
(2,595) |
67 |
(2,528) |
Share of
profit (loss) for the period of equity method companies |
1,428 |
- |
1,428 |
Profit
(loss) for the period from continuing activities |
(8,869) |
(109) |
(8,979) |
Profit
(loss) for the period discontinued activities |
32,185 |
- |
32,186 |
Consolidated profit (loss) for the period |
23,316 |
(109) |
23,207 |
Group share |
23,326 |
(109) |
23,217 |
Minority interests |
(10) |
|
(10) |
(1) Restated from the
IFRS 5 Cegedim Kadrige impact.
In €
million |
09.30.2015
reported(1) |
Correction of leases |
09.30.2015
restated |
Consolidated profit (loss) for the period |
23,316 |
(109) |
23,207 |
Share of
earnings from equity method companies |
(1,470) |
- |
(1,470) |
Depreciation and provisions |
32,532 |
(9,603) |
22,929 |
Capital
gains or losses on disposals |
(30,687) |
- |
(30,687) |
Cash flow after cost of net financial debt and
taxes |
23,691 |
(9,712) |
13,979 |
Cost of
net financial debt |
31,758 |
- |
31,758 |
Tax
expenses |
5,811 |
(67) |
5,744 |
Operating cash flow before cost of net financial debt and
taxes |
61,260 |
(9,779) |
51,481 |
Tax
paid |
(9,877) |
- |
(9,877) |
Change in
working capital requirements for operations: requirement |
(21,370) |
(1,727) |
(23,097) |
Change in
working capital requirements for operations: surplus |
|
|
|
Cash flow generated from operating activities after tax
paid and change in working capital requirements (A) |
30,013 |
(11,506) |
18,507 |
Of which net cash flows from operating activities of held
for sales |
5,177 |
- |
5,177 |
Acquisitions of intangible assets |
(30,615) |
234 |
(30,381) |
Acquisitions of tangible assets |
(21,003) |
11,272 |
(9,731) |
Acquisitions of long-term investments |
- |
- |
- |
Disposals
of tangible and intangible assets |
1,532 |
- |
1,532 |
Disposals
of long-term investments |
1,604 |
- |
1,604 |
Impact of
changes in consolidation scope (1) |
319,370 |
- |
319,370 |
Dividends
received from equity method companies |
81 |
- |
81 |
Net cash flows generated by investment operations
(B) |
270,969 |
11,506 |
282,475 |
Of which net cash flows connected to investment operations
of activities held for sales |
(7,482) |
- |
(7,482) |
Dividends
paid to parent company shareholders |
- |
- |
- |
Dividends
paid to the minority interests of consolidated companies |
(69) |
- |
(69) |
Capital
increase through cash contribution |
- |
- |
- |
Loans
issued |
- |
- |
- |
Loans
repaid |
(144,457) |
- |
(144,457) |
Interest
paid on loans |
(41,530) |
- |
(41,530) |
Other
financial income and expenses paid or received |
(643) |
- |
(643) |
Net cash flows generated by financing operations
(C) |
(186,699) |
- |
(186,699) |
Of which net cash flows related to financing operations of
activities held for sales |
(850) |
- |
(850) |
Change In Cash without impact of change in foreign currency
exchange rates (A + B + C) |
114,283 |
- |
114,283 |
Impact of
changes in foreign currency exchange rates |
2,850 |
- |
2,850 |
Change in cash |
117,133 |
- |
117,133 |
Opening
cash |
99,715 |
- |
99,715 |
Closing
cash |
216,848 |
- |
216,848 |
(1) Restated from the
IFRS 5 Cegedim Kadrige impact.
In € million |
|
09.30.2015
reported |
IFRS 5 impact Cegedim Kadrige |
Correction of leases |
Divisions aggregation |
09.30.2015
restated |
|
|
|
(1) |
(2) |
(3) |
|
Health Insurance H.R. & e-services |
|
167.5 |
(1.3) |
- |
- |
166.2 |
Healthcare Professionals |
|
113.0 |
- |
- |
24.9 |
137.9 |
Cegelease |
|
83.3 |
- |
(58.4) |
(24.9) |
- |
Activities not allocated |
|
2.8 |
- |
- |
- |
2.8 |
Group Cegedim |
|
366.6 |
(1.3) |
(58.4) |
0 |
306.9 |
(1) The Cegedim Group
decided to sell the Kadrige activities. These activities are thus
isolated in separate lines of the profit and loss statement and
balance sheet, according to the IFRS 5 accounting standard.
(2) The correct
accounting treatment of the Cegelease finance lease business, for
all types of contracts (self-financed, sold except process
management, or backed against a bank) requires a correction over
the first nine months of 2015 consolidated revenue of €58.4m
downward.
(3) The finance lease
business accounts for less than 10% of the consolidated revenue or
EBITDA, and as such is not isolated anymore within the Group
internal reporting. These activities are reported into the «
Healthcare professionals » division, where they already belonged
until the 2014 annual closing.
Glossary
Activities not allocated: 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.
|
|
|
About Cegedim:
Founded in 1969, Cegedim is an innovative technology and services
company in the field of digital data flow management for healthcare
ecosystems and B2B, and a business software publisher for
healthcare and insurance professionals. Cegedim employs more than
4,000 people in 11 countries and generated revenue of €426 million
in 2015. Cegedim SA is listed in Paris (EURONEXT: CGM).
To learn more, please visit: www.cegedim.com
And follow Cegedim on Twitter: @CegedimGroup and LinkedIn
|
Aude Balleydier
Cegedim Communications
Manager
and Media Relations
Tel.: +33 (0)1 49 09 68 81
aude.balleydier@cegedim.com |
Jan Eryk Umiastowski
Cegedim
Chief Investment Officer
and Head of Investor Relations
Tel.: +33 (0)1 49 09 33 36
janeryk.umiastowski@cegedim.com |
Guillaume de Chamisso
PRPA Agency
Media Relations
Tel.: +33 (0)1 77 35 60 99
guillaume.dechamisso@prpa.fr |
Follow Cegedim:
|
Cegedim_Results_3Q2016_ENG
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The issuer of this announcement warrants that they are solely
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information contained therein.
Source: Cegedim SA via Globenewswire
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