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 |
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UK : +44 (0)20 3367 9453 |
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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 |
- Health insurance, HR and e-services
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).
- Exercise of the call option on the entire 2020 bond
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.
- S&P has raised Cegedim's rating to BB with positive
outlook
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 signs heads of agreement to acquire Futuramedia
Group
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: on our website In French:
http://www.cegedim.fr/finance/documentation/Pages/rapports.aspx In
English:
http://www.cegedim.com/finance/documentation/Pages/reports.aspx on
Cegedim IR, the Group's financial communications app To download
the app, visit
http://www.cegedim.fr/finance/profil/Pages/CegedimIR.aspx. |
Appendices
Balance sheet as September 30, 2016
- Assets as of 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.
- Liabilities and shareholders' equity as of September 30,
2016
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.
- Consolidated cash flow statement as of September 30, 2016
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"
- 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:
- First nine months of 2015 Profit and Loss Statement
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.
- First months of 2015 Cash Flows Statement
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.
- First nine months of 2015 Revenue per division
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
BalleydierCegedim Communications Managerand Media
RelationsTel.: +33 (0)1 49 09 68 81aude.balleydier@cegedim.com |
Jan Eryk
UmiastowskiCegedimChief Investment Officerand Head of
Investor RelationsTel.: +33 (0)1 49 09 33
36janeryk.umiastowski@cegedim.com |
Guillaume de
ChamissoPRPA Agency Media RelationsTel.: +33 (0)1
77 35 60 99guillaume.dechamisso@prpa.fr |
Follow Cegedim:
|
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