Cegedim: First quarter revenues were stable
Cegedim: First quarter revenues were stable
- Innovation efforts and new product launches continue
- Profitability improvement expected from the first quarter
- The Group reiterates its full-year targets
PARIS--(BUSINESS WIRE)-- Regulatory News:
Quarterly Financial Information as of March 31, 2013
IFRS - Regulated Information - Not Audited
Cegedim, a global technology and services company specializing in the healthcare field, posted consolidated first quarter 2013 revenues of €212.9 million, down 0.6% on a reported basis and up 0.1% like for like*.
Organic growth at the Healthcare Professionals and Insurance and services divisions offset a decline at the CRM and strategic data division.
Based on first quarter revenues, the Group is confident it will meet its 2013 financial targets. Operating profit from recurring operations in the first quarter will reflect the full impact of the Performance Improvement Plan initiated in 2012.
- The change in revenues per division for the 1stquarter is as follows:
|€ thousands||1st quarter 2013||1st quarter 2012||Growth|
|CRM and Strategic Data||104,641||111,092||-5.8%||-3.0%|
|Insurance and Services||37,192||35,817||+3.8%||+3.9%|
Like-for-like* Q1 2013 revenue growth came to 0.1% compared with the same period in 2012. The sale of Pharmapost and acquisition of ASP Line added 0.1%, whereas currencies had a negative impact of 0.9%.
Analysis of business trends by division
- CRM and Strategic Data
The division's Q1 2013 revenues came to €104.6 million, down 5.8% on a reported basis. Currencies and changes in scope (April 2012 Pharmapost disposal) had negative impacts of respectively 1.4% and 1.4% on revenues. Like-for-like* revenues fell 3.0% over the period.
The CRM and strategic data division represented 49% of consolidated Group revenues, compared with 52% in the year-earlier period.
Growth in emerging countries continued, particularly in China and Russia. Revenues were less impacted in 2013 by drug patent expiration and competition from generic drugs However, the Group has noted slower order intake for market research.
The Group's innovation efforts have allowed it to launch several new products, such as the ninth version of its Mobile Intelligence software. The new version offers advanced Closed Loop Marketing functions, a new contact center for effective multi-channel strategies, and OneKey™ digital data integration, which provides insights on healthcare professionals' social media footprint. As of today, Mobile Intelligence is the only life sciences CRM platform that supports Windows 8 Pro and Apple iOS devices.
The Group's ongoing investment strategy will allow it to launch even more new products and services over the coming months.
- Healthcare Professionals
The division's Q1 2013 revenues came to €71.0 million, up 5.6% on a reported basis. The ASP Line acquisition boosted revenues by 2.7%, whereas currencies had a negative impact of 0.5%. Like-for-like* revenues rose 3.3% over the period.
The Healthcare professionals division represented 33% of the Group's consolidated revenues, compared with 31% in the year-earlier period.
The division is benefitting from healthy growth in business related to software for healthcare professionals. The development of performance-based pay for physicians in France and the marketing of hosting solutions dedicated to physicians in the UK were particularly good for the Group.
At the same time, Simply Vitale, the mobile practice management tool for healthcare professionals comprising a large touch-screen tablet, a SESAM-Vitale card reader and a scanner, is an ongoing commercial success. The package has more than 650 clients (mostly nurses) after just four months on the market.
Following an exceptional Q1 2012, Cegelease continues to grow, albeit less briskly.
- Insurance and Services
The division's Q1 2013 revenues came to €37.2 million, up 3.8% on a reported basis and 3.9% like for like*. Currencies had little impact and there were no acquisitions or divestments.
The Insurance and services division represented 18% of consolidated Group revenues, compared with 17% in the year-earlier period.
The insurance unit's Activ' Infinite solution was chosen to manage third-party payer aspects of health and provident insurance policies for France's second-largest social welfare institution. This contract strengthens the Group's role as the industry's benchmark supplier to large clients and the market leader.
The division is also partnering with Harmonie Mutuelle to implement its SEPA procedure for managing direct debit mandates signed by policyholders and collecting payments under the conditions stipulated by the new regulation.
Lastly, Moneo Applicam, a specialist in electronic payment solutions, chose Cegedim and its GIS (Global Information Services) platform to digitize client invoices related to its new Moneo Resto smartcard restaurant voucher service.
In addition, the division continues to benefit from double-digit growth in its SRH, outsourced payroll and HR management activities.
Financial resources - 1st quarter highlights
On March 20, Cegedim issued a €300 million senior Reg S/144A bond with a coupon of 6.75% maturing April 1, 2020. The issue price was 100% of the nominal value. Cegedim used the proceeds to:
- redeem 7% bonds maturing in 2015 as part of a redemption offer at a price of 108% on a principal amount of €111.5 million. Including accrued unpaid interest, the total amount was €121.5 million. There are €168.6 million in bonds still outstanding;
- repay a term loan of €140 million;
- repay amounts drawn on a revolving credit;
- pay fees and charges related to these transactions.
As a result, the structure of debt at 31 March 2013 was as follows:
- €168.6 million bond debt at 7.00% maturing 27 July 2015;
- €300 million bond debt at 6.75% maturing 1 April 2020;
- €80 million revolving credit expiring 10 June 2016, not drawn as of 31 March 2013;
- Overdraft facility.
When the operation was announced on 11 March 2013, rating agency Standard and Poor's placed Cegedim's B rating on "credit watch positive".
Significant post-closing transactions and events
On 26 April 2013, Standard and Poor's upgraded its rating on Cegedim and its two bonds to "B+ with stable outlook".
Apart from the items cited above, 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.
For 2013, barring any significant changes in market trends, the Group reiterates its targets:
- Revenue growth of around 2% as a result of stability at the CRM and strategic data division and growth of around 5% at the Healthcare professionals and Insurance and services divisions.
- A 50 basis point increase in the operating margin from recurring operations.
The Group will hold a conference call on May 6th, 2013, at 6:15 pm in English (Paris time). The call will be hosted by Jan Eryk Umiastowski, Cegedim Chief Investment Officer and Head of Investor Relations.
A presentation of Cegedim 2013 Q1 Revenue will also be available on the website: http://www.cegedim.com/finance/documentation/Pages/presentations.aspx
France: +33 1 70 48 01 66
US : +1646 254 3361
UK and others: +44 (0)20 7784 1036
June 4, 2013 (after the stock market closes)
- 2013 Q1 Results announcement
June 6, 2013 at 10:00 am
- Shareholder's Meeting - Auditorium Cegedim 17 rue de l'Ancienne Mairie (Boulogne Billancourt)
July 30, 2013 (after the stock market closes)
- 2013 Q2 Revenue announcement
September 19, 2013 (after the stock market closes)
- 2013 H1 Results announcement
September 20, 2013
- SFAF Meeting
November 7, 2013 (after the stock market closes)
- 2013 Q3 Revenues announcement
The quarterly financial report, including management discussion and analysis, will be posted in the Finance section of Cegedim's website on June 4 after the market closes:
- In French:
- In English:
- Revenues by division and by quarter#:
|# Figures rounded to the nearest unit.|
|* at constant scope and exchange rates|
|CRM and Strategic Data||104,641||104,641|
|Insurance and Services||37,192||37,192|
|CRM and Strategic Data||111,092||126,106||111,113||139,834||488,145|
|Insurance and Services||35,817||37,115||33,848||44,253||151,033|
- By division and geographic zone, the distribution of revenues for the 1stquarter of 2013 is as follows:
|France||EMEA ex. France||Americas||APAC|
|CRM and Strategic Data||33%||35%||24%||9%|
|Insurance and Services||100%||-||-||-|
- By division and currency, the distribution of revenues for the 1stquarter of 2013 is as follows:
|CRM and Strategic Data||51%||20%||4%||25%|
|Insurance and Services||100%||-||-||0%|
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.
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;
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.
EBIT: Earnings Before Interest and Taxes. EBIT corresponds to the net revenue minus operating expenses (such as salaries, social charges, materials, energy, research, services, external services, advertising, etc.). It is the operating income for the Cegedim group.
|EBIT from recurring operations: this is EBIT restated to take account of non-current items, such as losses on tangible and intangible assets, restructuring, etc. It corresponds to the operating income from recurring operations for the Cegedim group. |
EBITDA: Earnings before interest, taxes, depreciation and amortization. EBITDA is the term used when amortization or depreciation and revaluations are not taken into account. "D" stands for depreciation of tangible assets (such as buildings, machines or vehicles), while "A" stands for amortization of intangible assets (such as patents, licenses and goodwill). It corresponds to the gross operating earnings for the Cegedim group.
EBITDA from recurring operations: this is EBITDA restated to take account of non-current items, such as losses on tangible and intangible assets, restructuring, etc. It corresponds to the gross operating earnings from recurring operations for the Cegedim group.
Net Financial Debt: this represents the Company's net debt (non-current and current financial debt, bank loans, debt restated at amortized cost and interest on loans) net of cash and cash equivalents and excluding revaluation of debt derivatives.
Net bank debt: this represents net financial debt less Cegedim's subordinated debt to FCB.
Free cash flow: free cash flow is cash generated, net of the cash part of the following items: (i) changes in working capital requirements, (ii) transactions on equity (changes in capital, dividends paid and received), (iii) capital expenditure net of transfers, (iv) net financial interest paid and (v) taxes paid.
Operating margin: Defined as the ratio of EBIT/revenue.
Operating margin from recurring operations: defined as the ratio of EBIT from recurring operations/revenue
Founded in 1969, Cegedim is a global technology and services company specializing in the healthcare field. Cegedim supplies services, technological tools, specialized software, data flow management services and databases. Its offerings are targeted notably at healthcare industries, life sciences companies, healthcare professionals and insurance companies. The world leader in life sciences CRM, Cegedim is also one of the leading suppliers of strategic healthcare industry data. Cegedim employs 8,100 people in more than 80 countries and generated revenue of €922 million in 2012. Cegedim SA is listed in Paris (EURONEXT: CGM).
To learn more, please visit: www.cegedim.com
And follow Cegedim on Twitter: @CegedimGroup.
Tel.: +33 (0)1 49 09 68 81
Jan Eryk UMIASTOWSKI
Chief investment Officer
Tel.: +33 (0)1 49 09 33 36
Guillaume DE CHAMISSO
Tel.: +33 (0)1 77 35 60 99
KEYWORDS: Europe France
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