Half-Year Financial Information as of June 30,
2016
IFRS - Regulated Information - Audited
Cegedim: a mixed first-half 2016
marked by revenue growth and margins temporarily pinched by
investments and the start of business with new clients
-
Interest expense fell considerably in Q2
2016
-
Continuing activities returned to positive
earnings in Q2 2016
-
Robust investment program had an impact
-
2016 revenue target revised upward, but EBITDA
expectations revised lower
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 Q1, Q2 and Half-year 2015
figures published in 2015. Readers should refer to the last annexe
of this press release for full details of the adjustments. All of
the figures in this press release reflect the adjustments. |
Conference CALL ON September 15, 2016, at 6:15pm
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USA : +1 866 907 5928 |
UK : +44 (0)20 3367 9453 |
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Boulogne-Billancourt, September
15, 2016
Cegedim, an
innovative technology and services company, posted consolidated H1
2016 revenues from continuing activities of €215.5 million, up 4.3%
on a reported basis and 3.6% like for like compared with the same
period in 2015. EBITDA came to €25.7 million in the first half,
down 26.9% year on year.
Like-for-like growth at the
Health insurance, HR and e-services division
picked up in the second quarter relative to the first despite the
ongoing migration of clients over to SaaS/cloud offerings. EBITDA
declined at all of the Group's operational 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. 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 upward its target for 2016 revenues. However, as this is a
pivotal year in the Group's transformation, Cegedim is also lowering its EBITDA target for
2016.
This new business model will
enable 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.
Simplified income
statement
|
H1 2016 |
H1 2015 |
Chg. |
|
In €m |
In % |
In €m |
In % |
In % |
Revenue |
215.5 |
100% |
206.7 |
100% |
+4.3% |
EBITDA |
25.7 |
11.9% |
35.1 |
17.0% |
(26.9)% |
Depreciation |
(16.4) |
- |
(14.8) |
- |
+10.8% |
EBIT before special items |
9.2 |
4.3% |
20.3 |
9.8% |
(54.4)% |
Special
items |
(3.7) |
- |
(4.2) |
- |
(10.1)% |
EBIT |
5.5 |
2.6% |
16.1 |
7.8% |
(65.8)% |
Cost of net
financial debt |
(23.9) |
- |
(23.2) |
- |
+2.6% |
Tax
expenses |
(1.7) |
- |
(2.1) |
- |
(18.9)% |
Consolidated profit from continuing activities |
(19.0) |
(8.8)% |
(8.3) |
(4.0% |
+128.7% |
Net
earnings from activities held for sale |
(0.8) |
|
32.5 |
- |
n.m. |
Profit
attributable to the owners of the parent |
(19.8) |
(9.2)% |
24.2 |
11.7% |
n.m. |
EPS before
special items |
(1.1) |
|
(0.3) |
|
+267.9% |
In the second quarter of 2016,
Cegedim posted consolidated revenues from
continuing activities of €109.3 million, up 2.9% on a reported
basis. Excluding an unfavorable currency translation effect of 1.3%
and a 1.9% boost from acquisitions, revenues rose 2.4%. In
like-for-like terms the Health Insurance, HR and
e-services division's revenues rose by 10.3%, whereas the
Healthcare professionals
division's revenues fell by 6.3%.
In first half 2016, Cegedim posted consolidated revenues from continuing
activities of €215.5 million, up 4.3% on a reported basis.
Excluding an unfavorable currency translation effect of 0.9% and a
1.6% boost from acquisitions, revenues rose 3.6%. In like-for-like
terms the Health Insurance, HR and
e-services division's revenues rose by 9.6%, whereas the
Healthcare professionals
division's revenues fell by 3.0%.
EBITDA
declined by €9.4 million, a drop of 26.9%, to €25.7 million. The
first-half margin fell to 11.9% from 17.0% a year earlier. The
EBITDA trend was attributable to all of the Group's operational
divisions and stemmed from 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. Of all the hiring done over the past 12 months, 89% of
new contracts started between June 2015 and March 2016.
Depreciation
charges rose €1.6 million, from €14.8 million in H1 2015 to
€16.4 million in H1 2016.
EBIT from
recurring operations fell €11.0 million in the first half of
2016, or 54.4%, to €9.2 million. The margin fell from 9.8% in the
first half of 2015 to 4.3% in the first half of 2016.
Special items
amounted to a €3.7 million charge in H1 2016 compared with a €4.2
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.
The net cost of
financial debt rose by €0.6 million, from €23.2 million in the
first six months of 2015 to €23.9 million in the first six months
of 2016. The increase reflects the payment of an early
reimbursement premium on the 2020 bond amounting to €15.9 million
in Q1 2016, which was almost entirely offset by the decrease in
interest paid in Q2 2016 owing to the debt restructuring the Group
performed in January 2016.
Tax fell from
a charge of €2.1 million at June 30, 2015, to a charge of €1.7
million at June 30, 2016, mainly due to deferred tax assets.
Thus, the consolidated net result from continuing activities came
to a loss of €19.0 million at end-June 2016, compared with a loss
of €8.3 million in the year-earlier period. The
Group share of consolidated net result was a loss of €19.8
million at end-June 2016, compared with a profit of €24.2 million
at end-June 2015.
Earnings per
share before special items came to €1.1 in the first half of
2016, compared with a €0.3 loss a year earlier. Note that Earnings
per share before special items came to €0.3 profit in the second
quarter, compared with a €0.3 loss a year earlier.
Analysis of business trends by
division
|
|
Revenue |
|
EBIT before special items |
|
EBITDA |
In €m |
|
H1 2016 |
H1 2015 |
|
H1 2016 |
H1 2015 |
|
H1 2016 |
H1 2015 |
Health
Insurance, HR and e-services |
|
124.6 |
110.7 |
|
10.5 |
12.8 |
|
17.8 |
20.7 |
Healthcare Professionals |
|
89.4 |
94.0 |
|
1.0 |
8.5 |
|
7.4 |
14.2 |
Activities not allocated |
|
1.6 |
1.9 |
|
(2.2) |
(1.1) |
|
0.5 |
0.2 |
Cegedim |
|
215.5 |
206.7 |
|
9.2 |
20.3 |
|
25.7 |
35.1 |
The division's H1
2016 revenues came to €124.6 million, up 12.5% on a reported basis.
The July 2015 acquisition of Activus in the UK made a positive
contribution of 3.0%. Currencies had virtually no impact.
Like-for-like revenues rose 9.6% over the period.
The Health
insurance, HR and e-services division
represented 57.8% of consolidated revenues from continuing
activities, compared with 53.6% over the same period a year
earlier.
The division's Q2 2016 revenues came to €64.8
million, up 13.8% on a reported basis. The July 2015 acquisition of
Activus in the UK made a positive contribution of 3.5%. Currencies
had virtually no impact. Like-for-like revenues rose 10.3% over the
period:
This significant H1 2016 revenue
growth was chiefly attributable to:
-
Cegedim Insurance
Solutions, bolstered by robust growth in the business of
managing third-party payment flows and by its software and services
ranges for personal insurance companies, following the start of
operation with new clients which more than offset the 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 at Cegedim
e-business following the start of operations with new clients
on its Global Invoice 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.
In the first half
of 2016, division EBITDA fell €2.9 million, or 14.0%, to €17.8
million. The EBITDA margin came to 14.3%, vs. 18.7% a year
earlier.
In the second quarter of 2016, division EBITDA
fell €1.5 million, or 12.2%, to €10.7 million. The EBITDA margin
came to 16.5%, vs. 21.4% 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;
-
Cegedim Insurance Solutions
offerings, due to switching the core products over to SaaS format,
the start of operations with numerous new clients, and the start of
new projects for existing 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 division's H1
2016 revenues came to €89.4 million, down 5.0% on a reported basis.
Currency effects made a negative contribution of 2.0%. There was no
impact from acquisitions or divestments. Like-for-like revenues
fell 3.0% over the period.
The Healthcare professionals division
represented 41.5% of consolidated revenues from continuing
activities, compared with 45.5% over the same period a year
earlier.
The division's Q2 2016 revenues came to €43.7
million, down 9.2% 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 6.3% over
the period.
The decline in first-half and
second-quarter 2016 revenues was chiefly attributable to:
-
Weaker activity in the computerization of UK
doctors, as the market is now moving predominantly to cloud-based
offerings. The investments now being made in
Cegedim's own cloud offering are expected to
result in renewed sales growth starting in 2017.
-
The negative short-term impact of switching
Belgian doctors over to SaaS format.
-
The second-quarter impact of the low level of
order intake in the pharmacy segment in France in late 2015. The
order book weakness has since been reversed, starting in May with
the release 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 will allow networks amongst individual pharmacies and
links with healthcare professionals. Thus, revenues are likely to
resume their growth in the next few months.
These performances were partially
offset by:
-
Double-digit growth at Pulse in the first half, despite a contraction in June
owing to the postponement of certain projects, mainly related to
the unit's RCM offerings. The Group also set up a new, more nimble
organization in response to a growing and rapidly changing market,
particularly in BPO. For example, some changes were made to the
local management team, and cloud offerings from Nightingale,
acquired in late 2015, are currently being integrated and first
modules should be available in a few months and the complete offer
in September 2015. These investments efforts will weigh on
profitability in the short term, but they will ensure profitable
growth over the long run.
-
Significant growth in solutions for physical
therapists and nurses in the second quarter, which more than made
up for the shortfall in the first quarter.
In the first half
of 2016, division EBITDA fell €6.7 million, or 47.5%, to €7.4
million. The EBITDA margin came to 8.3%, vs. 15.1% a year
earlier.
In the second quarter of 2016, division EBITDA
fell €5.3 million, or 68.3%, to €2.5 million. The EBITDA margin
came to 5.7%, vs. 16.2% a year earlier.
The decline in EBITDA was chiefly
attributable to investments made to ensure future growth. The Group
was penalized by the investments it made in:
-
France, to develop the new hybrid offering for
pharmacies, which it launched in May 2016;
-
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 in the second quarter to switch Belgian doctors
over to SaaS format and investments done in the US.
The division's H1
2016 revenues came to €1.6 million, down 18.4% 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 Q2
2016 revenues came to €0.8 million, down 29.2% 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.
In the first half
of 2016, division EBITDA rose €0.2 million year on year to €0.5
million. In the second quarter of 2016, division EBITDA rose €1.0
million year on year to €1.4 million.
Financial resources
Cegedim's
consolidated total balance sheet amounted to €666.3 million, at
June 30, 2016,
Acquisition
goodwill represented €189.5 million at June 30, 2016, compared
with €188.5 million at end-2015. The €0.9 million increase, equal
to 0.5%, was mainly attributable to the restatement of expected
future earn-out payments on the Activus and
Nightingale acquisitions, totaling €4.7 million; these were partly
offset by the euro's appreciation against certain foreign
currencies, chiefly the British pound, for a total of €3.7 million.
Acquisition goodwill represented 28.4% of the total balance sheet
at June 30, 2016, compared with 21.8% on December 31, 2015.
Cash and
equivalents came to €10.8 million at June 30, 2016, a decrease
of €220.5 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 €10.6 million deterioration in WCR,
partly offset by drawing €169.0 million from the €200 million
revolving credit facility. Cash and equivalents represented 1.6% of
the total balance sheet at June 30, 2016, compared with 26.8% at
December 31, 2015.
Shareholders'
equity fell by €29.7 million, i.e. 13.0%, to €198.4 million at
June 30, 2016, compared with €228.1 million at December 31, 2015.
Shareholders' equity represented 29.8% of the total balance sheet
at end-June 2016, compared with 26.4% at end-December 2015.
Net financial
debt amounted to €216.6 million at end-June 2016, up €48.9
million compared with end-December 2015. It represented 109.1% of
Group shareholders' equity at June 30, 2016.
Before the net
cost of financial debt and taxes, cash flow was €29.2 million
at June 30, 2016, compared with €35.3 million at June 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 13 of the Q2-2016 Quarterly Financial
Report).
On April 1, 2016, Cegedim exercised its call option on the entire 6.75%
2020 bond with ISIN code XS0906984272 and XS0906984355, for a total
principal amount of €314,814,000.00 and a price of 105.0625%, i.e.
a total premium of €15,937,458.75. The company then cancelled these
securities. The transaction was financed by drawing a portion of
the RCF obtained in January 2016 and using the proceeds of the sale
to IMS Health. Following this transaction, the Group's debt
comprised the €45.1 million FCB subordinated loan, the partially
drawn €200 million RCF, and overdraft facilities.
After Cegedim
announced that it would redeem the entire 6.75% 2020 bond, rating
agency Standard and Poor's raised the company's rating on April 28,
2016, to BB with a positive outlook.
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.
Significant post-closing
transactions and events
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.
Outlook
Despite economic uncertainty and a
challenging geopolitical environment, Cegedim is revising its
target for 2016 revenues upward. As it indicated in July, the Group
is lowering its EBITDA outlook. For the full year 2016, Cegedim
expects:
-
Like-for-like revenue growth of at least 3% from
continuing activities.
-
A €10 million decrease in EBITDA compared with
2015. The vast majority of this year-on-year decline occurred in
the first half of 2016.
Cegedim expects to begin seeing
the initial positive impact of its investments, reorganizations and
transformations in 2017, with a full impact in 2018.
The Group does not expect any
significant acquisitions in 2016 and does not disclose profit
projections or estimates.
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.
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.
|
September 16, 2016, at 10am CET
November 29, 2016, after market
closing
December 14, 2016, at 1:30pm |
Analyst meeting (SFAF meeting)
Q3 2016 earnings
7th Investor
Day |
Financial calendar
September 15, 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 H1 2016 revenue 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 September 13, 2016, and the Board of Directors met
on September 15, 2016, to review the first half of 2016
consolidated financial statements. |
|
The interim financial report for the first
half of 2016 is available:
In French:
http://www.cegedim.fr/finance/documentation/Pages/rapports.aspx
In English:
http://www.cegedim.com/finance/documentation/Pages/reports.aspx
To download the app, visit
http://www.cegedim.fr/finance/profil/Pages/CegedimIR.aspx. |
Appendices
Balance sheet as June 30,
2016
In
thousands of euros |
06.30.2016 |
12.31.2015(1) |
Goodwill on acquisition |
189,473 |
188,548 |
Development costs |
28,101 |
16,923 |
Other
intangible fixed assets |
102,106 |
108,166 |
Intangible fixed assets |
130,208 |
125,089 |
Property |
459 |
459 |
Buildings |
4,907 |
5,021 |
Other
tangible fixed assets |
17,634 |
16,574 |
Construction work in progress |
1,149 |
51 |
Tangible fixed assets |
24,149 |
22,107 |
Equity
investments |
1,098 |
1,098 |
Loans |
3,138 |
3,146 |
Other
long-term investments |
7,584 |
5,730 |
Long-term invetsments - excluding equity shares in equity
method companies |
11,820 |
9,973 |
Equity
shares in equity method companies |
9,258 |
10,105 |
Government
- Deferred tax |
27,274 |
28,722 |
Accounts
receivable: Long-term portion |
26,945 |
26,544 |
Other
receivables: Long-term portion |
609 |
1,132 |
Non-current assets |
419,736 |
412,219 |
Services
in progress |
0 |
0 |
Goods |
9,484 |
8,978 |
Advances
and deposits received on orders |
620 |
218 |
Accounts
receivables: Short-term portion |
162,431 |
161,923 |
Other
receivables: Short-term portion |
45,179 |
32,209 |
Cash
equivalents |
8,000 |
153,001 |
Cash |
2,765 |
78,298 |
Prepaid
expenses |
16,500 |
16,666 |
Current Assets |
244,980 |
451,293 |
Assets of
activities held for sale |
1,563 |
768 |
Total Assets |
666,280 |
864,280 |
-
Restated see note "Correction
of the accounting treatment of the finance lease business in the
group consolidated financial statement.
In
thousands of euros |
06.30.2016 |
12.31.2015(1) |
Share
capital |
13,337 |
13,337 |
Group
reserves |
205,317 |
139,287 |
Group
exchange gains/losses |
(433) |
8,469 |
Group
earnings |
(19,775) |
66,957 |
Shareholders' equity, Group share |
198,445 |
228,051 |
Minority
interests (reserves) |
9 |
39 |
Minority
interests (earnings) |
(26) |
41 |
Minority interests |
(17) |
79 |
Shareholders' equity |
198,429 |
228,130 |
Long-term
financial liabilities |
223,000 |
51,723 |
Long-term
financial intruments |
3,052 |
3,877 |
Deferred
tax liabilities |
6,322 |
6,731 |
Non-current provisions |
20,451 |
19,307 |
Other
non-current liabilities |
13,595 |
14,376 |
Non-current liabilities |
266,422 |
96,014 |
Short-term
financial liabilities |
4,335 |
347,213 |
Short-term
financial instruments |
5 |
5 |
Accounts
payable and related accounts |
54,295 |
54,470 |
Tax and
social liabilities |
66,823 |
70,632 |
Provisions |
2,953 |
2,333 |
Other
current liabilities |
72,422 |
61,657 |
Current liabilities |
200,832 |
536,311 |
Liabilities of activities held for sale |
597 |
3,823 |
Total Liabilities |
666,280 |
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 June 30, 2016
In
thousands of euros |
06.30.2016 |
06.30.2015(1) |
Revenue |
215,509 |
206,661 |
Other
operating activities revenue |
- |
- |
Purchased
used |
(16,966) |
(20,009) |
External
expenses |
(63,290) |
(52,718) |
Taxes |
(3,684) |
(5,728) |
Payroll
costs |
(103,670) |
(92,148) |
Allocations to and reversals of provisions |
(2,454) |
(1,529) |
Change in
inventories of products in progress and finished products |
- |
- |
Other
operating income and expenses |
240 |
585 |
EBITDA |
25,685 |
35,115 |
Depreciation expenses |
(16,443) |
(14,845) |
Operating
income from recurring operations |
9,243 |
20,270 |
Depreciation of goodwill |
- |
- |
Non-recurrent income and expenses |
(3,731) |
(4,152) |
Other exceptional operating income and expenses |
(3,731) |
(4,152) |
Operating income |
5,511 |
16,118 |
Income
from cash and cash equivalents |
974 |
1,063 |
Gross cost
of financial debt |
(25,458) |
(24,984) |
Other
financial income and expenses |
634 |
674 |
Cost of net financial debt |
(23,851) |
(23,247) |
Income
taxes |
(530) |
(1,635) |
Deferred
taxes |
(1,187) |
(483) |
Total taxes |
(1,717) |
(2,119) |
Share of
profit (loss) for the period of equity method companies |
1,082 |
952 |
Profit
(loss) for the period from continuing activities |
(18,974) |
(8,295) |
Profit
(loss) for the period from discontinued activities |
(826) |
32,450 |
Consolidated profit (loss) for the period |
(19,801) |
24,155 |
Group share |
(19,775) |
24,164 |
Minority
interests |
(26) |
(9) |
Average number of shares excluding treasury stock |
13,953,978 |
13,954,653 |
Current Earnings Per Share (in euros) |
(1.1) |
(0.3) |
Earnings Per Share (in euros) |
(1.4) |
1.7 |
Dilutive
instruments |
None |
None |
Earning for recurring operation per share (in
euros) |
(1.4) |
1.7 |
(1) Restated see
note "Correction of the accounting treatment of the finance lease
business in the group consolidated financial statement.
In
thousands of euros |
06.30.2016 |
06.30.2015(1) |
Consolidated profit (loss) for the period |
(19,801 |
24,154 |
Share of
earnings from equity method companies |
(1,082) |
(995) |
Depreciation and provisions |
24,511 |
14,987 |
Capital
gains or losses on disposals |
(38) |
(30,792) |
Cash flow after cost of net financial debt and
taxes |
3,591 |
7,354 |
Cost of
net financial debt |
23,854 |
22,585 |
Tax
expenses |
1,722 |
5,323 |
Operating cash flow before cost of net financial debt and
taxes |
29,167 |
35,262 |
Tax
paid |
(2,251) |
(8,682) |
Change in
working capital requirements for operations: requirement |
(10,638) |
(25,188) |
Change in
working capital requirements for operations: surplus |
- |
- |
Cash flow generated from operating activities after tax
paid and change in working capital requirements (A) |
16,278 |
1,392 |
Of which
net cash flows from operating activities of held for sales |
(224) |
4,830 |
Acquisitions of intangible assets |
(20,976) |
(22,749) |
Acquisitions of tangible assets |
(7,811) |
(6,139) |
Acquisitions of long-term investments |
- |
- |
Disposals
of tangible and intangible assets |
492 |
1,389 |
Disposals
of long-term investments |
(130) |
1,717 |
Impact of
changes in consolidation scope |
(1,448) |
323,982 |
Dividends
received from equity method companies |
- |
12 |
Net cash flows generated by investment operations
(B) |
(29,872) |
298,212 |
Of which
net cash flows connected to investment operations of activities
held for sales |
(9) |
(7,482) |
Dividends
paid to parent company shareholders |
- |
- |
Dividends
paid to the minority interests of consolidated companies |
(17) |
- |
Capital
increase through cash contribution |
- |
- |
Loans
issued |
169,000 |
- |
Loans
repaid |
(340,262) |
(60,848) |
Interest
paid on loans |
(30,491) |
(24,951) |
Other
financial income and expenses paid or received |
(566) |
(467) |
Net cash flows generated by financing operations
(C) |
(202,337) |
(86,266) |
Of which
net cash flows related to financing operations of activities held
for sales |
(2) |
(850) |
Change In Cash without impact of change in foreign currency
exchange rates (A + B + C) |
(215,930) |
213,338 |
Impact of
changes in foreign currency exchange rates |
(845) |
2,947 |
Change in cash |
(216,775) |
216,285 |
Opening
cash |
228,120 |
99,715 |
Closing
cash |
11,345 |
316,000 |
(1) Restated see
note "Correction of the accounting treatment of the finance lease
business in the group consolidated financial statement"
Cegelease is
a wholly owned subsidiary of Cegedim which
offers since 2001 financing options through a variety of contracts
dedicated to pharmacies and healthcare professionals in
France.
Initially, these solutions were
aimed at serving the pharmacists, who preferred leasing instead of
paying up-front, the pharmacies management system software that
they bought from the Cegedim group.
As time passed, Cegelease diversified its activities. Starting as the
exclusive finance lease provider for Cegedim group products,
Cegelease converted to a broker proposing a
variety of leasing solutions (for group products as well as
products developed by third parties) offered to a variety of
clients (including clients who are not already in business with
other group entities).
After the sale of its CRM and strategic data business to IMS Health,
Cegedim investigated in depth these activities
and found that they had to be reclassified pursuant to IAS 17 on
March 23, 2016 when the 2015 accounts were published.
All the impacts on previous
accounts are indicated in the 2015 Registration Document filled
with the AMF on March 31, 2016 in Chapter 4.4 point 1.3 on page 89
to 94, as well as in the Q1 2016 Financial Interim Report in point
2.5.1 on page 17 to 19 and in the Q2 2016 Financial Interim Report
in point 2.5.1 on page 17.
Impacts on H1 2015 consolidated
financial statements are described below:
In €
million |
06.30.2015
reported(1) |
Correction of leases |
06.30.2015
restated |
Revenue |
245,311 |
(38,650) |
206,661 |
Other
operating activities revenue |
- |
|
- |
Purchases
used |
(45,302) |
25,293 |
(20,009) |
External
expenses |
(59,701) |
6,983 |
(52,718) |
Taxes |
(5,728) |
|
(5,728) |
Payroll
costs |
(92,148) |
|
(92,148) |
Allocations to and reversals of provisions |
(1,529) |
|
(1,529) |
Change in
inventories of products in progress and finished products |
- |
|
- |
Other
operating income and expenses |
585 |
|
585 |
EBITDA |
41,489 |
(6,374) |
35,115 |
Depreciation expenses |
(21,175) |
6,330 |
(14,845) |
Operating income from recurring operations |
20,314 |
(44) |
20,270 |
Depreciation of goodwill |
- |
|
- |
Non-recurrent income and expenses |
(4,152) |
|
(4,152) |
Other exceptional operating income and expenses |
(4,152) |
|
(4,152) |
Operating income |
16,162 |
(44) |
16,118 |
Income
from cash and cash equivalents |
1,063 |
|
1,063 |
Gross cost
of financial debt |
(24,984) |
|
(24,984) |
Other
financial income and expenses |
674 |
|
674 |
Cost of net financial debt |
(23,247) |
|
(23,247) |
Income
taxes |
(1,635) |
|
(1,635) |
Deferred
taxes |
(500) |
17 |
(483) |
Total taxes |
(2,135) |
17 |
(2,119) |
Share of
profit (loss) for the period of equity method companies |
952 |
|
952 |
Profit
(loss) for the period from continuing activities |
(8,268) |
(27) |
(8,295) |
Profit
(loss) for the period discontinued activities |
32,450 |
|
32,450 |
Consolidated profit (loss) for the period |
24,182 |
(27) |
24,155 |
Group share |
24,191 |
(27) |
24,164 |
Minority interests |
(9) |
|
(9) |
(1) The "Taxes" line
was restated pursuant to IFRIC 21 for €1,518 thousand.
In €
million |
06.30.2015
reported(1) |
Correction of leases |
06.30.2015
restated |
Consolidated profit (loss) for the period |
24,181 |
(27) |
24,155 |
Share of
earnings from equity method companies |
(995) |
|
(995) |
Depreciation and provisions |
21,317 |
(6,330) |
14,987 |
Capital
gains or losses on disposals |
(30,792) |
|
(30,792) |
Cash flow after cost of net financial debt and
taxes |
13,711 |
(6,357 |
7,354 |
Cost of
net financial debt |
22,585 |
|
22,585 |
Tax
expenses |
5,340 |
(17) |
5,323 |
Operating cash flow before cost of net financial debt and
taxes |
41,636 |
(6,374) |
35,262 |
Tax
paid |
(8,682) |
|
(8,682) |
Change in
working capital requirements for operations: requirement |
(23,073) |
(2,115) |
(25,188) |
Change in
working capital requirements for operations: surplus |
- |
- |
- |
Cash flow generated from operating activities after tax
paid and change in working capital requirements (A) |
9,881 |
(8,489) |
1,392 |
Of which net cash flows from operating activities of held
for sales |
4,830 |
|
4,830 |
Acquisitions of intangible assets |
(22,925) |
176 |
(22,749) |
Acquisitions of tangible assets |
(14,452) |
8,313 |
(6,139) |
Acquisitions of long-term investments |
- |
|
- |
Disposals
of tangible and intangible assets |
1,389 |
|
1,389 |
Disposals
of long-term investments |
1,717 |
|
1,717 |
Impact of
changes in consolidation scope (1) |
323,982 |
|
323,982 |
Dividends
received from equity method companies |
12 |
|
12 |
Net cash flows generated by investment operations
(B) |
289,723 |
8,488 |
298,212 |
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 |
- |
|
- |
Capital
increase through cash contribution |
- |
|
- |
Loans
issued |
- |
|
- |
Loans
repaid |
(60,848) |
|
(60,848) |
Interest
paid on loans |
(24,951) |
|
(24,951) |
Other
financial income and expenses paid or received |
(467) |
|
(467) |
Net cash flows generated by financing operations
(C) |
(86,266) |
0 |
(86,266) |
Of which net cash flows related to financing operations of
activities held for sales |
(850) |
0 |
(850) |
Change In Cash without impact of change in foreign currency
exchange rates (A + B + C) |
213,338 |
0 |
213,338 |
Impact of
changes in foreign currency exchange rates |
2,947 |
|
2,947 |
Change in cash |
216,285 |
|
216,285 |
Opening
cash |
99,715 |
|
99,715 |
Closing
cash |
316,000 |
0 |
316,000 |
(1) The "Taxes" line
was restated pursuant to IFRIC 21 for €1,518 thousand.
In € million |
|
06.30.2015
reported |
IFRS 5 impact Cegedim Kadrige |
Correction of leases |
Divisions aggregation |
06.30.2015
restated |
|
|
|
(1) |
(2) |
(3) |
|
Health Insurance H.R. & e-services |
|
111.5 |
(0.8) |
- |
- |
110.7 |
Healthcare Professionals |
|
76.5 |
- |
- |
17.5 |
94.0 |
Cegelease |
|
56.1 |
- |
(38.6) |
(17.5) |
- |
Activities not allocated |
|
1.9 |
- |
- |
- |
1.9 |
Group Cegedim |
|
246.1 |
(0.8) |
(38.6) |
0 |
206.7 |
(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 €38.6m 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.
|
Glossary
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
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 and LinkedIn
|
Aude Balleydier
Cegedim Communications
Manager
and Media Relations
Tel.: +33 (0)1 49 09 68 81
aude.balleydier@cegedim.com |
Jan Eryk Umiastowski
Cegedim
Chief Investment Officer
and Head of Investor Relations
Tel.: +33 (0)1 49 09 33 36
janeryk.umiastowski@cegedim.com |
Guillaume de Chamisso
PRPA Agency
Media Relations
Tel.: +33 (0)1 77 35 60 99
guillaume.dechamisso@prpa.fr |
Follow Cegedim:
|
Cegedim_Results_2Q2016_ENG
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of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Cegedim SA via Globenewswire
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