IBA SA : IBA Trading Update - Third Quarter 2016
16 Novembre 2016 - 7:00AM
IBA Trading Update
- Third Quarter 2016
-
Group revenue up 19.3%, full year 2016 revenue
growth guidance of approximately 20%
-
Continued strong growth in Proton Therapy, with
Proton Therapy and Other Accelerators setting a new record backlog
of EUR 362.6 million
-
FY operating margin expected to be around 10%
due to slower Dosimetry business
Louvain-La-Neuve,
Belgium, 16 November 2016 - IBA (Ion Beam Applications S.A.,
EURONEXT), the world's leading provider of proton therapy solutions
for the treatment of cancer, today announces its trading update for
the third quarter ending 30 September 2016.
Group
Highlights
-
Q3 2016 year to date Group revenues of EUR 225.3
million, up 19.3% year-on-year, driven by excellent revenue
recognition of Proton Therapy projects (+43.7% versus last year),
more than offsetting declining Dosimetry (-12.8% versus last year)
and flat revenues of Other Accelerators division
-
Strong growth in Proton Therapy and Other
Accelerators orders - orders at end of Q3 totalling EUR 206.2
million, up 39.5% from Q3 2015, comprising three Proteus®One*, three Proteus®PLUS* (15 proton therapy rooms in total), and ten other
accelerators. This order intake also includes upgrades for EUR 16.9
million.
-
Proton Therapy and Other Accelerators service
revenue up 16.9% to EUR 57.7 million, in line with
expectations
-
Proton Therapy and Other Accelerators backlog at
an all-time record of EUR 362.6 million, following downpayment by
Medstar (Shanghai) Leasing Co, for a previously announced four-room
Proteus®PLUS* solution. Backlog conservatively excludes the
previously announced contract with Qingdao Zhong Jia Lian He
Healthcare Management Company Limited (five-room solution) that is
a firm contract but awaiting down payment
-
Record Dosimetry backlog of EUR 19.4 million, up
from EUR 18.0 million in Q3 2015
-
Healthy gross cash position of EUR 66.4 million
at the end of Q3 2016, compared with EUR 64.7 million at the end of
Q3 2015
-
Revenues for the full-year expected to be around
20% higher than in 2015, reflecting strong PT growth and more than
offsetting Dosimetry weakness; operating margin expected to be
around 10%, slightly below previous expectations of 11% due to the
weak Dosimetry market; the Company expects operating margins to
rise to 13-15% by 2018
Olivier Legrain,
Chief Executive Officer of IBA commented: "This has been another positive quarter of growth, driven
by continued robust demand in the global proton therapy market and
timely execution of the backlog. With a growing order book from
markets as diverse as Europe, US, China and the UAE, we are
confident about the outlook of the Company, despite challenges in
the dosimetry market which has further decreased as a proportion of
our overall business. We are continuing to make targeted strategic
investments in our business to ensure that we can maintain and grow
our clear leadership in proton therapy, expanding our product
offering to provide greater choice to customers and investing in
our commercial, manufacturing and service capabilities."
Key Figures and
Events at Segment Level
IBA reported the following
segmental trends and news during the third quarter of 2016:
Proton Therapy
and Other Accelerators
-
Q3 year to date revenues totaled EUR 190.9
million compared to EUR 149.4 million for the same period in 2015,
up 27.8%; revenue growth came mostly from equipment revenue
recognition which grew 33.1% compared to Q3 2015
-
Two proton therapy centers were sold in
Q3:
-
Contract signed with Proton Partners
International (PPI) to install a Proteus®ONE
compact proton therapy solution in a private clinic in Abu Dhabi,
UAE
-
Contract signed with Medstar (Shanghai) Leasing
Co., Ltd, a subsidiary of Concord Medical Services Holdings
Limited, for the installation and maintenance of a proton therapy
system in Beijing, China.
-
Total of six systems sold comprising 15 proton
therapy rooms in the first nine months of 2016, (seven systems
comprising 12 rooms were sold at end of Q3 2015), confirming IBA's
global leadership
-
New milestones achieved for
Proteus®ONE:
-
All features of Proteus®ONE now
FDA (Food and Drug Administration) cleared
-
First patient treated in Europe at Centre
Antoine Lacassagne in Nice, France
-
Investment in HIL Applied Medical Ltd to develop
laser-based proton therapy solution with the potential to enable a
meaningful reduction in the size and cost of proton therapy systems
without compromising clinical utility
-
At the American Society for Radiation Oncology
(ASTRO) annual meeting, IBA announced initiatives with prestigious
partners including Philips and RaySearch to co-develop integrated
comprehensive solutions for adaptive proton radiation therapy
-
Growth strategy on track, including staff
recruitment and production capacity scale-up to meet high proton
therapy demand; more than 300 of the planned 400 engineers have now
been recruited by the end of Q3
-
Post quarter end, IBA RadioPharma Solutions
presented two new products at the European Association of Nuclear
Medicine (EANM) congress in October - the compact and powerful
Cyclone®KIUBE
cyclotron and the new Synthera®+
chemistry modules. IBA Industrial Solutions introduced the Second
Generation Rhodotron® at the
International Meeting on Radiation Processing (IMRP) in Vancouver,
Canada, offering improved performances including lower power
consumption and a new modular design; the current Rhodotron® product
portfolio has been extended with the TT50, a new compact and
cost-efficient 10 MeV Rhodotron®
Dosimetry
-
Despite strong activity in Dosimetry for PT,
Dosimetry revenue declined 12.8% to EUR 34.4 million versus EUR
39.5 million in Q3 2015 due to strong a comparator period, a slower
conversion rate in 2016 on long-term orders and a difficult LINAC
market in conventional radiotherapy
-
Dosimetry has been impacted in 2016 by revenue
conversion but the backlog remains strong at EUR 19.4 million
compared with EUR 18.0 million at the end of Q3 2015
-
First worldwide clinical implementation of newly
released Dolphin Online Ready Patient QA and Monitoring
Outlook
IBA currently anticipates
full-year revenue growth of around 20%, with continued strong PT
performance more than offsetting current weakness in the Dosimetry
market. Due to a lower than expected Dosimetry profit margin for
the year, the operating margin is expected to be around 10%,
slightly below previous expectations of around 11%, before rising
to between 13% and 15% by 2018. Achievement of these targets
depends on the timing of a small number of outstanding additional
PT contracts.
The Company is making a number of
strategic investments in order to build on and expand its
leadership in the global PT market. This includes scaling up
production capacity including a new Proteus®ONE
accelerator (S2C2) assembly line, plus additional investment in
R&D and commercial infrastructure. Total CAPEX is expected to
be around EUR 15 million, of which about EUR 2.5 million will be in
2016, with the remainder in 2017 and 2018.
The Company is also focusing on
additional skilled recruitment to meet growing market demand, with
the remainder of the additional 400 engineers and other qualified
staff expected to take the total headcount to around 1,600 by the
end of 2016. This additional recruitment is expected to be largely
self-financing through rapid revenue generation.
IBA expects to maintain the
dividend pay-out ratio at 30%.
Shareholder's
Agenda
Year End results 2016 : 23 March
2017
First Quarter 2017 results : 10 May 2017
Directors'
Declarations
In accordance with the Royal
Decree of 14 November 2007, IBA indicates that this Trading Update
has been prepared by the Chief Executive Officer (CEO) and the
Chief Financial Officer (CFO).
About IBA
IBA (Ion Beam Applications S.A.) is a global medical technology
company focused on bringing integrated and innovative solutions for
the diagnosis and treatment of cancer. The company is the worldwide
technology leader in the field of proton therapy, considered to be
the most advanced form of radiation therapy available today. IBA's
proton therapy solutions are flexible and adaptable, allowing
customers to choose from universal full-scale proton therapy
centers as well as compact, single room solutions. In addition, IBA
also has a radiation dosimetry business and develops particle
accelerators for the medical world and industry. Headquartered in
Belgium and employing about 1,400 people worldwide, IBA has
installed systems across the world.
IBA is listed on the pan-European
stock exchange NYSE EURONEXT (IBA: Reuters IBAB.BR and Bloomberg
IBAB.BB).
More information can be found at:
www.iba-worldwide.com
*Proteus®ONE and
Proteus®PLUS are the
brand names of new configurations of the Proteus®235.
For further
information, please contact:
IBA
Jean-Marc Bothy
Chief Strategy Officer
Soumya Chandramouli
Chief Financial Officer
+32 10 475 890
Investorrelations@iba-group.com
Thomas
Ralet
Vice-President Corporate Communication
+32 10 475 890
communication@iba-group.com
For media and
investor enquiries:
Consilium
Strategic Communications
Jonathan Birt, Matthew Neal, Ivar Milligan
+44 (0) 20 3709 5700
IBA@consilium-comms.com
pdf-IBA_3Q_Trading-update-EN-20161116
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information contained therein.
Source: IBA SA via Globenewswire
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