Quarterly Financial Information as of March 31,
2016
IFRS - Regulated Information - Not Audited
Cegedim: Revenues up in the first quarter of
2016, but margin impacted by the transition to an SaaS model and to
BPO
Revenues
up 5.7% on a reported basis
Robust
investment plan still in place in 2016
Interest
expense expected to fall considerably from Q2 onward
EBITDA
expected to be stable in 2016
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 first quarter 2015
figures published in 2015. Readers should refer to the last annex
of this press release for full details of the adjustments. All of
the figures in this press release reflect the adjustments.
Boulogne-Billancourt, France, May 26, 2016
(GLOBE NEWSWIRE) -- Cegedim, an innovative technology and
services company, generated first quarter 2016 consolidated
revenues from continuing activities of €106.2 million, up 5.7% on a
reported basis and 4.8% like for like compared with the same period
in 2015. Despite the ongoing migration of clients over to SaaS /
cloud-based models, the Health Insurance, HR and e-services
division posted significant growth, and the Healthcare
professionals division saw its growth recover modestly.
First-quarter 2016 EBITDA came to €11.1 million,
down 24.6% year on year. EBITDA declined at all of the Group's
divisions as a result of the investments being made in human
resources and innovation in order to speed up the transition of
software products to cloud-based models and swiftly roll out the
Group's new BPO (Business Process Outsourcing) offerings.
The innovations the Group brought to market in
2015 helped boost first-quarter 2016 revenues despite the ongoing
transition to a cloud model.
This revenue trend fully validates the decision
management made in mid-2015 to speed up the shift to cloud-based
software offerings and rapidly roll out Cegedim's new BPO range.
During the transitional period, profitability has naturally taken a
hit. For 2016, Cegedim expects at least stable revenue from
continuing activities and stability at the EBITDA level.
Further out, Cegedim will enjoy greater customer
loyalty, closer client relationships, simpler operating processes,
more robust offerings and stronger geographic positions. These
changes will also boost the share of recurring revenues, improve
sales growth and predictability, and enhance the Group's
profitability.
In the first quarter of 2016, Cegedim exercised
its call option on the entire 6.75% 2020 bond at a price of
105.0625%, or a premium of €18.0 million. 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. This move will reduce interest
expense by around 9 times over the final nine months of 2016
compared with the same period in 2015.
- Simplified income statement
|
Q1 2016 |
Q1 2015 |
Chg. % |
In
€m |
in
% |
in
€m |
in
% |
Revenue |
106.2 |
100% |
100.5 |
100% |
+5.7% |
EBITDA |
11.1 |
10.4% |
14.7 |
14.6% |
(24.6)% |
Depreciation |
(8.1) |
- |
(7.3) |
- |
+10.7% |
EBIT before special items |
3.0 |
2.8% |
7.4 |
7.4% |
(59.4)% |
Special items |
(1.1) |
- |
(2.9) |
- |
(62.0)% |
EBIT |
1.9 |
1.8% |
4.6 |
4.5% |
(57.9)% |
Cost of net financial
debt |
(23.2) |
- |
(6.9) |
- |
+236.3% |
Tax expenses |
(0.3) |
- |
(0.7) |
- |
(58.9)%. |
Consolidated profit from continuing activities |
(21.0) |
(19.8)% |
(2.6) |
(2.6)% |
n.m. |
Net earnings from
activities held for sale |
(0.4) |
|
1.1 |
- |
n.m. |
Profit attributable to the owners of the parent |
(21.4) |
(20.2)% |
(1.5) |
(1.5)% |
n.s. |
EPS |
(1.4) |
|
0.0 |
|
n.m. |
In first quarter 2016, Cegedim posted
consolidated revenues from continuing activities of €106.2 million,
up 5.7% on a reported basis. Excluding an unfavorable currency
translation effect of 0.5% and a 1.3% boost from acquisitions,
revenues rose 4.8%.
In like-for-like terms the Health Insurance, HR
and e-services and Healthcare professionals divisions' revenues
rose by respectively 8.7% and 0.5%, whereas the Activities not
allocated division's revenues fell by 3.8%.
EBITDA fell €3.6 million year on year, or 24.6%,
to €11.1 million. The margin declined from 14.6% in Q1 2015 to
10.4% in Q1 2016. EBITDA declined at all of the Group's divisions
as a result of the investments being 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.
Depreciation charges rose €0.8 million, from
€7.3 million in Q1 2015 to €8.1 million in Q1 2016. Special items
amounted to a €1.1 million charge in the first quarter compared
with a €2.8 million charge a year earlier. The drop was chiefly due
to the booking in 2015 of fees related to the sale of the CRM and
strategic data division to IMS Health.
EBIT before special items fell €4.4 million in
the first quarter of 2016, or 59.4%, to €3.0 million. The margin
declined from 7.4% in Q1 2015 to 2.8% in Q1 2016.
The net cost of financial debt increased by
€16.3 million or 236.3%, from €6.9 million on March 31, 2015, to
€23.2 million at March 31, 2016. This increase reflects the early
redemption premium paid of €18 million on the 2020 bond, which was
partly offset by a decrease in interest payments attributable to
the bond debt restructuring in 2015.
Tax fell from a charge of €0.7 million at March
31, 2015, to a charge of €0.3 million at March 31, 2016, mainly due
to the drop in taxable income.
Thus, the consolidated net result from
continuing activities came to a loss of €21.0 million at end-March
2016, compared with a loss of €2.6 million in the year-earlier
period. The Group's consolidated net result was a loss of €21.4
million at end-March 2016 compared with a €1.5 million loss at
end-March 2015. Net result per share was a €1.5 loss in the first
quarter of 2016, compared with a €0.1 loss a year earlier.
Analysis of business trends by division
|
|
Revenue |
|
EBIT before special items |
|
EBITDA |
In
€m |
|
Q1 2016 |
Q1 2015 |
|
Q1 2016 |
Q1 2015 |
|
Q1 2016 |
Q1 2015 |
Health insurance, HR and
e-services |
|
59.7 |
53.7 |
|
3.5 |
4.6 |
|
7.1 |
8.5 |
Healthcare
professionals |
|
45.7 |
45.92 |
|
1.8 |
3.5 |
|
5.0 |
6.4 |
Activities not
allocated |
|
0.8 |
0.8 |
|
(2.2) |
(0.7) |
|
(1.0) |
(0.2) |
Cegedim |
|
106.2 |
100.5 |
|
3.0 |
7.4 |
|
11.1 |
14.7 |
- Health insurance, HR and e-services
The division's Q1 2016 revenues came to €59.7
million, up 11.2% on a reported basis. The July 2015 acquisition of
Activus in the UK made a positive contribution of 2.5%. Currencies
had virtually no impact. Like-for-like revenues rose 8.7% over the
period.
The Health insurance, HR and e-services division
represented 56.2% of consolidated revenues from continuing
activities, compared with 53.5% over the same period a year
earlier.
This significant Q1 2016 revenue growth was
chiefly attributable to:
- Cegedim Insurance Solutions, bolstered by robust growth in its
business of managing third-party payment flows and from the
software and services ranges despite the temporarily negative
impact of switching its offering to a cloud format. BPO activities
for health insurance, with iGestion, posted double-digit revenue
growth. This division was also bolstered by the acquisition of
Activus in July 2015.
- Double-digit growth in the operation of the GIS SaaS platform
for electronic data flows by Cegedim e-business, including payment
platforms.
- The double-digit acceleration of growth in business at Cegedim
SRH, the SaaS platform for managing human resources, which started
operations with a number of clients.
EBITDA fell €1.4 million year on year, or 16.7%,
to €7.1 million. The EBITDA margin came to 11.8%, vs. 15.8% a year
earlier.
The drop in EBITDA was mainly due to:
- A temporary decrease in the profitability of the iGestion and
Cegedim e-business activities due to the start of operations with
numerous BPO clients;
- RNP, the specialist in traditional and digital displays for
pharmacy windows in France, which suffered from a change in the
timing of promotional campaigns between 2015 and 2016;
This was partly offset by the good performances
of:
- The business of managing third-party payment flows;
- Cegedim SRH, despite the start of business with numerous BPO
clients;
- The software and services offering for personal insurance,
despite the temporary negative impact of switching to the cloud.
The division's Q1 2016 revenues came to €45.7
million, down 0.5% on a reported basis. Currency effects made a
negative contribution of 1.0%. There was no impact from
acquisitions or divestments. Like-for-like revenues rose 0.5% over
the period.
The Healthcare professionals division
represented 43.0% of consolidated revenues from continuing
activities, compared with 45.7% over the same period a year
earlier.
This modest like-for-like growth was mainly
attributable to:
- Growth of more than 60% at Pulse Systems owing to a successful
rollout of its Revenue Cycle Management (RCM) offering. This
offering will let the Group manage the process of obtaining
reimbursement from multiple US insurers on behalf of doctors.
Growth also came from the rollout of EHR offerings after a period
of some hesitancy by US doctors.
- Growth in the Claude Bernard medication database, whose sales
are also growing in the UK.
This performance was partly offset by mainly a
slowdown in the UK doctor computerization business owing to the
market's migration to cloud-based offerings. That said, investments
in developing a cloud offering should make it possible to
progressively restore sales momentum in 2017.
In May 2016 the Cegedim subsidiary specializing
in French pharmacy IT, one of the market leaders, announced a new
comprehensive pharmacy management solution based on a hybrid
architecture combining cloud and local computing. It has been
designed to facilitate the new kinds of networked collaboration now
in favor between pharmacies and healthcare professionals.
Healthcare data are hosted in a secure environment, earning Cegedim
HDS health data hosting certification from ASIP Santé.
EBITDA came to €5.0 million in the first quarter
of 2016, down €1.4 million or 22% compared with the same period in
2015. As a result, the margin came to 10.9% vs 13.8% a year
earlier.
The decline in EBITDA was chiefly attributable
to investments made to ensure future growth. The Group was in fact
penalized chiefly by the investments it made in France to develop
the new hybrid offering for pharmacies, which it launched in May
2016.The trend was partly offset by EBITDA growth at the RCM and
EHR activities in the US.
The division's Q1 2016 revenues came to €0.8
million, down 3.8% both 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 0.8% over the same period a year
earlier.
EBITDA deteriorated by €0.8 million to a loss of
€1.0 million, compared with a year-earlier loss of €0.2
million.
This EBITDA weakness partly reflects the costs
needed to develop IT infrastructure.
Financial resources
At March 31, 2016, Cegedim's total balance sheet
amounted to €666.7 million.
Acquisition goodwill was €185.8 million at March
31, 2016, compared with €188.5 million at end-2015. The €2.8
million decrease, i.e. 1.5%, was mainly due to the euro's
appreciation against certain foreign currencies, chiefly the pound
sterling for €2.4 million. Acquisition goodwill represented 27.9%
of the total balance sheet at March 31, 2016, compared with 21.8%
on December 31, 2015.
Cash and equivalents came to €20.2 million at
March 31, 2016, a decrease of €211.1 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
€18.0 million in early redemption premium, and an €11.6 million
deterioration in WCR, partly offset by drawing €176.0 million from
the €200 million revolving credit facility.
Shareholders' equity fell by €28.1 million, i.e.
12.3%, to €200 million at March 31, 2016, compared with €228.1
million at December 31, 2015. The drop was mostly the result of a
deterioration in Group earnings and exchange rate gains/losses, by
respectively €88.4 million and €6.3 million. Those items were
partly offset by a €66.5 million increase in Group reserves.
Shareholders' equity represented 30.0% of the total balance sheet
at end-March 2016, compared with 26.4% at end-December 2015.
Net financial debt amounted to €209.4 million at
end-March 2016, up €41.7 million compared with end-December 2015.
It represented 104.7% of Group shareholders' equity at March 31,
2016.
Before the net cost of financial debt and taxes,
cash flow was €13.3 million at March 31, 2016, compared with €19.2
million at March 31, 2015.
Highlights
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
2.1.1.1 on page 14 of the Q1-2016 Quarterly Financial Report).
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.
Significant post-closing transactions and events
- 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.
Apart from the items cited above, to the best of
the company's knowledge, there were no events or changes after the
accounts were closed that would materially alter the Group's
financial situation.
Outlook
For 2016, Cegedim expects at least stable
revenue from continuing activities and stability at the EBITDA
level.
The Group does not expect any significant
acquisitions in 2016 and does not disclose profit projections or
estimates.
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 Q1
2016.
Financial calendar
The Group will hold a conference call in English today,
May 26, 2016, at 6:15 pm (Paris time). The call will be hosted by
Jan Eryk Umiastowski, Cegedim Chief Investment Officer and Head of
Investor Relations. A presentation of Cegedim's Q1 2016
Results will also be available on the website:
http://www.cegedim.com/finance/documentation/Pages/presentations.aspx |
Contact numbers: |
France: +33 1 70 77 09 44
US: +1 866 907 5928 UK and others: +44 (0)20 3367 9453 |
No access code required |
July 26, 2016 after
market closing |
Q2
2016 revenues |
September 15, 2016
after market closing |
H1
2016 results |
September 16, 2016
at 10:00 am |
Analyst meeting (SFAF) |
November 29, 2016
after market closing |
Q3
2016 results |
Additional information
The Audit Committee met on May 24, 2016, and the
Board of Directors met on May 25, 2016, to review the 2016 first
quarter consolidated financial statements.
The interim financial report for the first
quarter of 2016 is available in French and in English in the
Finance section of Cegedim's website:
- French:
http://www.cegedim.fr/finance/documentation/Pages/rapports.aspx
- English:
http://www.cegedim.com/finance/documentation/Pages/reports.aspx
This information is also available on Cegedim IR, the Group's
financial communications app for smartphones and iOS and Android
tablets. To download the app, visit:
http://www.cegedim.fr/finance/profil/Pages/CegedimIR.aspx.
Appendices
- Balance sheet as March 31, 2016
Assets
In thousands of euros |
31.03.2016 |
31.12.2015(1) |
Goodwill on acquisition |
185,777 |
188,548 |
Development costs |
17,944 |
16,923 |
Other intangible fixed assets |
106,961 |
108,166 |
Intangible fixed assets |
124,906 |
125,089 |
Property |
459 |
459 |
Buildings |
4,940 |
5,021 |
Other tangible fixed assets |
18,509 |
16,574 |
Construction work in progress |
878 |
51 |
Tangible fixed assets |
24,786 |
22,107 |
Equity investments |
1,098 |
1,098 |
Loans |
3,145 |
3,146 |
Other long-term investments |
6,547 |
5,730 |
Long-term investments - excluding equity shares in equity method
companies |
10,791 |
9,973 |
Equity shares in equity method companies |
9,681 |
10,105 |
Government - Deferred tax |
28,544 |
28,722 |
Accounts receivable: Long-term portion |
26,491 |
26,544 |
Other receivables: Long-term portion |
1,075 |
1,132 |
Non-current assets |
412,050 |
412,219 |
Services in progress |
0 |
0 |
Goods |
8,958 |
8,978 |
Advances and deposits received on orders |
490 |
218 |
Accounts receivable: Short-term portion |
166,044 |
161,923 |
Other receivables: Short-term portion |
39,526 |
32,209 |
Cash equivalents |
8,001 |
153,001 |
Cash |
12,228 |
78,298 |
Prepaid expenses |
18,036 |
16,666 |
Current assets |
253,283 |
451,293 |
Assets of activities held for sale |
1,356 |
768 |
Total assets |
666,689 |
864,280 |
- Restated see note "Correction of the accounting treatment of
the finance lease business in the group consolidated financial
statement".
Liabilities as of December 31, 2016
In thousands of euros |
31.03.2016 |
31.12.2015(1) |
Share capital |
13,337 |
13,337 |
Group reserves |
205,822 |
139,287 |
Group exchange gains/losses |
2,186 |
8,469 |
Group earnings |
(21,443) |
66,957 |
Shareholders' equity, Group share |
199,902 |
228,051 |
Minority interests (reserves) |
85 |
39 |
Minority interests (earnings) |
1 |
41 |
Minority interests |
86 |
79 |
Shareholders' equity |
199,988 |
228,130 |
Long-term financial liabilities |
227,781 |
51,723 |
Long-term financial instruments |
3,511 |
3,877 |
Deferred tax liabilities |
6,484 |
6,731 |
Non-current provisions |
19,724 |
19,307 |
Other non-current liabilities |
14,486 |
14,376 |
Non-current liabilities |
271,987 |
96,014 |
Short-term financial liabilities |
1,813 |
347,213 |
Short-term financial instruments |
5 |
5 |
Accounts payable and related accounts |
51,131 |
54,470 |
Tax and social liabilities |
67,394 |
70,632 |
Provisions |
2,184 |
2,333 |
Other current liabilities |
71,673 |
61,657 |
Current liabilities |
194,199 |
536,311 |
Liabilities of activities held for sale |
515 |
3,823 |
Total Liabilities |
666,689 |
864,280 |
- Restated see note "Correction of the accounting treatment of
the finance lease business in the group consolidated financial
statement".
- Income statements as of March 31, 2016
In thousands of euros |
31.03.2016 |
31.03.2015(1)(2) |
Revenue |
106,208 |
100,468 |
Other operating activities revenue |
- |
- |
Purchases used |
(9,196) |
(8,875) |
External expenses |
(30,912) |
(26,978) |
Taxes |
(2,896) |
(3,844) |
Payroll costs |
(51,458) |
(46,059) |
Allocations to and reversals of provisions |
(1,033) |
(590) |
Change in inventories of products in progress and finished
products |
- |
- |
Other operating income and expenses |
366 |
581 |
EBITDA |
11,079 |
14,704 |
Depreciation expenses |
(8,076) |
(7,299) |
Operating income from recurring operations |
3,003 |
7,405 |
Depreciation of
goodwill |
- |
- |
Non-recurrent income and
expenses |
(1,085) |
(2,851) |
Other exceptional operating income and expenses |
(1,085) |
(2,851) |
Operating income |
1,918 |
4,554 |
Income from cash and cash equivalents |
879 |
983 |
Gross cost of financial debt |
(23,820) |
(10,054) |
Other financial income and expenses |
(231) |
2,180 |
Cost of net financial debt |
(23,172) |
(6,891) |
Income taxes |
(434) |
(883) |
Deferred taxes |
132 |
148 |
Total taxes |
(302) |
(735) |
Share of profit (loss) for the period of equity method
companies |
511 |
442 |
Profit (loss) for the period from continuing activities |
(21,044) |
(2,629) |
Profit (loss) for the period discontinued activities |
(398) |
1,149 |
Consolidated profit (loss) for the period |
(21,442) |
(1,481) |
Group share |
(21,443) |
(1,474) |
Minority interests |
1 |
(7) |
Average number of shares excluding treasury stock |
13,953,944 |
13,965,725 |
Current Earnings Per Share (in euros) |
(1,4) |
0,0 |
Earnings Per Share (in euros) |
(1,5) |
(0,1) |
Dilutive instruments |
Néant |
Néant |
Earning for recurring operation per share (in euros) |
(1,5) |
(0,1) |
- Restated see note "Correction of the accounting treatment of
the finance lease business in the group consolidated financial
statement"
- The "Taxes" line was restated pursuant to IFRIC 21 for €1,518
thousand.
- Consolidated cash flow statement as of March 31, 2016
In thousands of euros |
31.03.2016 |
31.12.2015 |
31.03.2015(1)(2) |
Consolidated profit (loss)
for the period |
(21,442) |
66,998 |
(1,481) |
Share of earnings from
equity method companies |
(511) |
(1,348) |
(485) |
Depreciation and
provisions |
11,525 |
31,546 |
8,144 |
Capital gains or losses on disposals |
200 |
(46,857) |
372 |
Cash flow after cost of
net financial debt and taxes |
(10,228) |
50,339 |
6,551 |
Cost of net financial
debt |
23,176 |
40,120 |
8,224 |
Tax expenses |
306 |
(14,431) |
4,444 |
Operating cash flow
before cost of net financial debt and taxes |
13,253 |
76,028 |
19,219 |
Tax paid |
(1,292) |
(12,127) |
(6,605) |
Change in working capital
requirements for operations: requirement |
(11,648) |
(24,072) |
- |
Change in working capital
requirements for operations: surplus |
- |
- |
18,412 |
Cash flow generated from operating activities after tax paid and
change in working capital requirements (A) |
313 |
39,829 |
31,026 |
Of
which net cash flows from operating activities of held for
sales |
57 |
6,419 |
9,019 |
Acquisitions of intangible
assets |
(9,595) |
(51,229) |
(14,215) |
Acquisitions of tangible
assets |
(4,977) |
(10,231) |
(6,409) |
Acquisitions of long-term
investments |
- |
- |
(262) |
Disposals of tangible and
intangible assets |
355 |
1,416 |
173 |
Disposals of long-term
investments |
(17) |
927 |
- |
Impact of changes in
consolidation scope |
- |
336,347 |
- |
Dividends received from equity method companies |
- |
81 |
12 |
Net cash flows
generated by investment operations (B) |
(14,235) |
277,311 |
(20,701) |
Of
which net cash flows connected to investment operations of
activities held for sales |
0 |
(7,482) |
(5,018) |
Dividends paid to parent
company shareholders |
- |
- |
- |
Dividends paid to the
minority interests of consolidated companies |
- |
(69) |
- |
Capital increase through
cash contribution |
- |
- |
- |
Loans issued |
176,000 |
- |
- |
Loans repaid |
(340,139) |
(147,563) |
(64) |
Interest paid on
loans |
(29,369) |
(42,681) |
(17,524) |
Other financial income and expenses paid or received |
675 |
(1,130) |
726 |
Net cash flows
generated by financing operations (C) |
(192,833) |
(191,443) |
(16,862) |
Of which net cash flows
related to financing operations of activities held for sales |
(4) |
(852) |
(842) |
Change In Cash without
impact of change in foreign currency exchange rates (A + B +
C) |
(206,755) |
125,698 |
(6,537) |
Impact of changes in
foreign currency exchange rates |
(557) |
2,707 |
2,984 |
Change in cash |
(207,312) |
128,405 |
(3,553) |
Opening cash |
228,120 |
99,715 |
99,715 |
Closing cash |
20,807 |
228,120 |
96,162 |
- Restated see note "Correction of the accounting treatment of
the finance lease business in the group consolidated financial
statement"
- The "Taxes" line was restated pursuant to IFRIC 21 for €1,518
thousand.
- 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.
Impacts on Q1 2015 consolidated financial
statements are described below:
- Q1 2015 Profit and Loss Statement
In € million |
31.03.2015 reported(1) |
Correction of leases |
31.03.2015 restated |
Revenue |
121
017 |
(20 549) |
100
468 |
Other operating activities revenue |
- |
- |
- |
Purchases used |
(22,487) |
13,612 |
(8,875) |
External expenses |
(30,323) |
3,345 |
(26,978) |
Taxes |
(3,844) |
- |
(3,844) |
Payroll costs |
(46,059) |
- |
(46,059) |
Allocations to and reversals of provisions |
(590) |
- |
(590) |
Change in inventories of products in progress and
finished products |
- |
- |
- |
Other operating income and expenses |
543 |
37 |
581 |
EBITDA |
18,258 |
(3,554) |
14,704 |
Depreciation expenses |
(10,942) |
3,643 |
(7,299) |
Operating income from
recurring operations |
7,316 |
89 |
7,405 |
Depreciation of goodwill |
- |
- |
- |
Non-recurrent income and expenses |
(2,851) |
- |
(2,851) |
Other exceptional
operating income and expenses |
(2,851 |
- |
(2,851) |
Operating income |
4,465 |
89 |
4,554 |
Income from cash and cash equivalents |
983 |
- |
983 |
Gross cost of financial debt |
(10,054) |
- |
(10,054) |
Other financial income and expenses |
2,180 |
- |
2,180 |
Cost of net financial
debt |
(6,891) |
- |
(6,891) |
Income taxes |
(883) |
- |
(883) |
Deferred taxes |
149 |
- |
149 |
Total taxes |
(734) |
- |
(734) |
Share of profit (loss) for the period of equity
method companies |
442 |
- |
442 |
Profit (loss) for the period from continuing
activities |
(2,719) |
89 |
(2,630) |
Profit (loss) for the period discontinued
activities |
1,149 |
- |
1,149 |
Consolidated profit (loss) for the period |
(1,570) |
89 |
(1,481) |
Group share |
(1,563) |
89 |
(1,474) |
Minority interests |
(7) |
- |
(7) |
- The "Taxes" line was restated pursuant to IFRIC 21 for €1,518
thousand.
- Q1 2015 Cash Flows Statement
In € million |
31.03.2015 reported(1) |
Correction of leases |
31.03.2015 restated |
Consolidated profit (loss)
for the period |
(1,570) |
89 |
(1,481) |
Share of earnings from
equity method companies |
(485) |
|
(485) |
Depreciation and
provisions |
11,788 |
(3,644) |
8,144 |
Capital gains or losses on
disposals |
372 |
|
372 |
Cash flow after cost of
net financial debt and taxes |
10,105, |
(3,554) |
6,551 |
Cost of net financial
debt |
8,224 |
|
8,224 |
Tax expenses |
4,444 |
|
4,444 |
Operating cash flow before
cost of net financial debt and taxes |
22,773 |
(3,554) |
19,219 |
Tax paid |
(6,605) |
|
(6,605) |
Change in working capital
requirements for operations: requirement |
- |
|
- |
Change in working capital
requirements for operations: surplus |
14,858 |
3,554 |
18,412 |
Cash flow generated from
operating activities after tax paid and change in working capital
requirements (A) |
31,026 |
0 |
31,026 |
Of which net cash flows
from operating activities of held for sales |
9,019 |
|
9,019 |
Acquisitions of intangible
assets |
(14,215) |
|
(14,215) |
Acquisitions of tangible
assets |
(6,409) |
|
(6,409) |
Acquisitions of long-term
investments |
(262) |
|
(262) |
Disposals of tangible and
intangible assets |
173 |
|
173 |
Disposals of long-term
investments |
- |
|
- |
Impact of changes in
consolidation scope (1) |
- |
|
- |
Dividends received from
equity method companies |
12 |
|
12 |
Net cash flows generated
by investment operations (B) |
(20,701) |
0 |
(20,701) |
Of which net cash flows
connected to investment operations of activities held for
sales |
(5,018) |
|
(5,018) |
Dividends paid to parent
company shareholders |
- |
|
- |
Dividends paid to the
minority interests of consolidated companies |
- |
|
- |
Capital increase through
cash contribution |
- |
|
- |
Loans issued |
- |
|
- |
Loans repaid |
(64) |
|
(64) |
Interest paid on
loans |
(17,524) |
|
(17,524) |
Other financial income and
expenses paid or received |
726 |
|
726 |
Net cash flows generated
by financing operations (C) |
(16,862) |
0 |
(16,862) |
Of which net cash flows
related to financing operations of activities held for sales |
(842) |
0 |
(842) |
Change In Cash without
impact of change in foreign currency exchange rates (A + B +
C) |
(6,537) |
0 |
(6,537) |
Impact of changes in foreign currency exchange rates |
2,984 |
|
2,984 |
- The "Taxes" line was restated pursuant to IFRIC 21 for €1,518
thousand.
- Q1 2015 Revenue per division
In € million |
31.03.2015 reported |
IFRS 5 impact from Cegedim Kadrige |
Correction of leases |
Division aggregation |
31.03.2015 restated |
|
|
(1) |
(2) |
(3) |
|
Health
Insurance H.R. & e-services |
54.0 |
(0.3) |
- |
- |
53.7 |
Healthcare Professionals |
37.2 |
- |
- |
8.7 |
45.9 |
Cegelease |
29.3 |
- |
(20.5) |
(8.7) |
- |
Activities not allocated |
0.8 |
- |
- |
- |
0.8 |
Group Cegedim |
121.3 |
(0.3) |
(20.5) |
0 |
100.4 |
(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 of the consolidated revenue of €21m
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.
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.
|
|
EBIT: Earnings Before Interest and Taxes. EBIT
corresponds to 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 before special items: 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).
EBITDA is 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. 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. EBIT margin:
defined as the ratio of EBIT/revenue. EBIT margin before special
items: defined as the ratio of EBIT before special
items/revenue. Net cash: defined as cash and cash equivalent
minus overdraft. |
A
propos de 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 3,600 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 |
|
Contacts : |
Aude BALLEYDIER
Cegedim Media Relations Tel: +33 (0)1 49 09 68 81
aude.balleydier@cegedim.fr |
Jan Eryk
UMIASTOWSKI Cegedim Chief investment Officer Investor Relations
Tel.: +33 (0)1 49 09 33 36 investor.relations@cegedim.fr |
Guillaume DE
CHAMISSO PRPA Agency Media Relations Tel: +33 (0)1 77 35
60 99 guillaume.dechamisso@prpa.fr |
|
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