SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

Pursuant to Rule 13a-16 or 15d-16 of the

Securities Exchange Act of 1934

 

For the month of April 2015

 

FRESENIUS MEDICAL CARE AG & Co. KGaA

(Translation of registrant’s name into English)

 

Else-Kröner Strasse 1

61346 Bad Homburg

Germany

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F x

Form 40-F o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

 

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes o

No x

 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82

 

 

 



 

On April 29, 2015 Fresenius Medical Care AG & Co. KGaA (the “Company”) issued an Investor News announcing its first quarter results for the period ending March 31, 2015. A copy of the Investor News is furnished as Exhibit 99.1.

 

The attached Investor News contains non-GAAP financial measures. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles. To supplement our first quarter 2015 consolidated financial results presented in accordance with Generally Accepted Accounting Principles in the United States, or GAAP, we have used non-GAAP financial measure of (a) EBITDA, or operating income excluding interest, taxes, depreciation and amortization, and (b) free cash flow. These non-GAAP measures are provided to enhance the user’s overall understanding of our current financial performance and our prospects for the future. In addition, because we have historically reported certain non-GAAP financial measures in our financial results, we believe the inclusion of these non-GAAP financial measures provides consistency and comparability in our financial reporting to prior periods for which these non-GAAP financial measures were previously reported. These non-GAAP financial measures should not be used as a substitute for or be considered superior to GAAP financial measures. Reconciliation of the non-GAAP financial measures to the most comparable GAAP financial measures are included in the attached Investor News in a separate statement setting forth the reconciliation and in the Cash Flow Statement.

 

The Exhibit attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing.

 

2



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

DATE: April 30, 2015

 

 

FRESENIUS MEDICAL CARE AG & Co. KGaA,

 

a partnership limited by shares, represented by:

 

 

 

FRESENIUS MEDICAL CARE MANAGEMENT AG, its

 

General Partner

 

 

 

 

 

By:

/s/ RICE POWELL

 

 

 

 

 

Name:

Rice Powell

 

 

 

 

 

 

Title:

Chief Executive Officer and

 

 

Chairman of the Management Board

 

 

of the General Partner

 

 

 

 

 

 

By:

/s/ MICHAEL BROSNAN

 

 

 

 

 

Name:

Michael Brosnan

 

 

 

 

 

 

Title:

Chief Financial Officer and

 

 

 

Member of the Management Board

 

 

 

of the General Partner

 

3




Exhibit 99.1

 

April 29, 2015

 

INVESTOR

 

NEWS

 

Fresenius Medical Care reports

 

first quarter 2015 results and confirms guidance for full year 2015

 

 



 

·                  First quarter performance fully on track to achieve full year guidance

 

·                  Strong revenue and earnings growth

 

·                  Strong cash flow generation

 

·                  Segment structure changed and additional disclosures for Care Coordination

 

First quarter 2015 key figures:

 

Net revenue

 

$

3,960 million

 

+11

%

Operating income (EBIT)

 

$

504 million

 

+13

%

Net income1

 

$

210 million

 

+2

%

Basic earnings per share

 

$

0.69

 

+1

%

 

Rice Powell, chief executive officer of Fresenius Medical Care stated: “Our first quarter 2015 results show a positive start into the year. We are pleased with our revenue and earnings growth. We have made good progress on our Care Coordination business and will make operating cost investments in this area in 2015 for future growth. Our performance is in line with our full year guidance for 2015 and we are on track to achieve our long-term targets”.

 

First quarter 2015

 

Revenue

 

Net revenue for the first quarter of 2015 increased by 11% to $3,960 million (+17% at constant currency) as compared to the first quarter of 2014. Organic revenue growth worldwide was 7%. Net Health Care revenue grew by 14% to $3,182 million (+18% at constant currency). The dialysis product revenue of $778 million remained on a similar level as compared to the first quarter of 2014 solely due to negative currency developments. On a constant currency basis the dialysis product revenue increased by +11%.

 

North America revenue for the first quarter of 2015 increased by 16% to $2,771 million. Organic revenue growth was 6%. Net Health Care revenue grew by 17% to $2,571 million with

 


1  attributable to shareholders of Fresenius Medical Care AG & Co. KGaA

 

2



 

a same market treatment growth of 4%. Net Dialysis Care revenue increased by 4% to $2,137 million while the Care Coordination revenue increased by 191% to $434 million (organic growth of 39%). Dialysis product revenue increased by 4% to $200 million as compared to the first quarter of 2014.

 

International revenue increased by 2% to $1,180 million. On a constant currency basis revenue increased 18%. Organic revenue growth was 10%. Net Health Care revenue increased by 5% to $611 million (+24% at constant currency). Dialysis product revenue decreased by 2% to $569 million (+13% at constant currency).

 

Earnings

 

Operating income (EBIT) increased by 13% from $445 million in the first quarter of 2014 to $504 million in the first quarter of 2015. Delivered EBIT (operating income less noncontrolling interests)2 increased 12% to $450 million.

 

Operating income for North America for the first quarter of 2015 was $340 million, an increase of 1% as compared to the first quarter of 2014. Delivered EBIT decreased 3% to $288 million.

 

In the International segment, operating income for the first quarter of 2015 increased by 35% to $244 million as compared to $180 million in the first quarter of 2014.

 

Net interest expense for the first quarter of 2015 was $102 million as compared to $96 million in the first quarter of 2014 which mainly reflects the financing costs of the acquisitions made in the second half of 2014.

 

Income tax expense was $138 million for the first quarter of 2015, which translates into an effective tax rate of 34.3%. This compares to income tax expense of $102 million and a tax rate of 29.1% for the first quarter of 2014. Adjusted for the positive impact of a German tax audit the tax rate would have been 33.6% in the first quarter 2014.

 

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the first quarter of 2015 was $210 million, an increase of 2% compared to $205 million for the first quarter of 2014.

 


2  Approximates the operating income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA.

 

3



 

Basic earnings per share (EPS) for the first quarter of 2015 was $0.69, an increase of 1% compared to the corresponding number for the first quarter of 2014. The weighted average number of shares outstanding for the first quarter of 2015 was approximately 303.7 million shares, compared to approximately 301.5 million shares for the first quarter of 2014. The increase in shares outstanding resulted from stock option exercises during the first quarter of 2015.

 

Cash flow

 

In the first quarter of 2015, the company generated $447 million in net cash provided by operating activities, representing 11% of revenue, compared to the corresponding figure of last year ($112 million).

 

A total of $197 million was spent for capital expenditures, net of disposals. Free cash flow was $250 million compared to a negative $85 million in the first quarter of 2014.

 

A total of $11 million in cash was spent for acquisitions, net of divestitures. Free cash flow after investing activities was $239 million as compared to a negative $220 million in the first quarter of 2014.

 

Employees

 

As of March 31, 2015, Fresenius Medical Care had 101,543 employees (full-time equivalents) worldwide, compared to 91,542 employees at the end of March 2014. This increase of ~10,000 employees was mainly attributable to acquisitions as well as our continued organic growth.

 

4



 

Balance sheet structure

 

The company´s total assets were $25,107 million (Dec. 31, 2014: $25,447 million), a decrease of 1%. Current assets decreased by 2% to $6,599 million (Dec. 31, 2014: $6,725 million). Non-current assets were $18,508 million (Dec. 31, 2014: $18,722 million), a decrease of 1%. Total equity increased by 1% to $10,139 million (Dec. 31, 2014: $10,028 million). The equity ratio was 40% as compared to 39% at the end of 2014. Total debt was $9,052 million (Dec. 31, 2014: $9,532 million). As of March 31, 2015, the debt/EBITDA ratio was 2.9 (Dec. 31, 2014: 3.1).

 

Please refer to the attachments for a complete overview of the results for the first quarter 2015 and the reconciliation of non-GAAP financial measures included in this release to the most comparable GAAP financial measures.

 

Outlook 3 confirmed

 

For the 2015 outlook the company expects revenue to grow at 5-7%, which at constant currency is a growth rate of 10-12%. Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to increase by 0—5% in 2015.

 

The company expects to spend around $1.0 billion on capital expenditures and around $400 million on acquisitions in 2015. The debt/EBITDA ratio is expected to be around 3.0 by the end of 2015.

 

For the 2016 projections we expect revenue to increase 9—12% and net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA to grow by 15—20%.

 

As disclosed in the company’s long-term target for 2020, the company expects revenue to grow at an average annual growth rate of approx. 10% and net income attributable to shareholders in the high single digits.

 


3  The original outlook/projection provided for 2015/2016 is based on exchange rates prevailing at the beginning of 2015. Savings from the global efficiency program are included, while potential acquisitions are not. In addition the outlook reflects further operating cost investments within the Care Coordination business for future growth in line with our 2020 strategy.

 

5



 

Conference call

 

Fresenius Medical Care will hold a conference call to discuss the results of the first quarter 2015 on Thursday, April 30, 2015 at 3.30 p.m. CEDT/ 9.30 a.m. EDT. The company invites investors to follow the live webcast of the call at the company’s website www.freseniusmedicalcare.com in the “Investors/Events” section. A replay will be available shortly after the call.

 

Fresenius Medical Care is the world’s largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 2.6 million individuals worldwide. Through its network of 3,396 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatments for 286,768 patients around the globe. Fresenius Medical Care is also the world’s leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products.

 

For more information about Fresenius Medical Care, visit the company’s website at www.freseniusmedicalcare.com.

 

Disclaimer

 

This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA’s reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

 

6



 

Please note: In 2015, we aligned the disclosure of segments to reflect changes in the way we manage our business. The former International segment is now sub-divided in EMEA (Europe, Middle East, Africa) segment, Asia-Pacific segment and Latin America segment.

 

Statement of earnings

 

 

 

Three months ended
 March 31

 

in US$ million, except share data, unaudited

 

2015

 

2014

 

Change

 

 

 

 

 

 

 

 

 

Health Care revenue

 

3,289

 

2,845

 

15.6

%

Less: patient service bad debt provision

 

107

 

63

 

68.6

%

Net Health Care revenue

 

3,182

 

2,782

 

14.4

%

Dialysis products revenue

 

778

 

782

 

-0.5

%

Total net revenue

 

3,960

 

3,564

 

11.1

%

 

 

 

 

 

 

 

 

Costs of revenue

 

2,776

 

2,482

 

11.9

%

Gross profit

 

1,184

 

1,082

 

9.4

%

Selling, general and administrative

 

655

 

620

 

5.7

%

Research and development

 

31

 

30

 

3.0

%

Income from equity method investees

 

(6

)

(13

)

-50.5

%

Operating income (EBIT)

 

504

 

445

 

13.4

%

 

 

 

 

 

 

 

 

Interest income

 

(60

)

(16

)

288.8

%

Interest expense

 

162

 

112

 

45.1

%

Interest expense, net

 

102

 

96

 

6.1

%

Income  before taxes

 

402

 

349

 

15.4

%

Income tax expense

 

138

 

102

 

36.1

%

Net income

 

264

 

247

 

6.9

%

Less: Net income attributable to noncontrolling interests

 

54

 

42

 

31.0

%

Net income attributable to shareholders of FMC AG & Co. KGaA

 

210

 

205

 

2.0

%

 

 

 

 

 

 

 

 

Operating income (EBIT)

 

504

 

445

 

13.4

%

Depreciation and amortization

 

176

 

167

 

5.2

%

EBITDA

 

680

 

612

 

11.1

%

EBITDA margin

 

17.2

%

17.2

%

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares

 

 

 

 

 

 

 

Ordinary shares

 

303,683,075

 

301,491,046

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.69

 

$

0.68

 

1.3

%

Basic earnings per ADS

 

$

0.35

 

$

0.34

 

1.3

%

 

 

 

 

 

 

 

 

In percent of revenue

 

 

 

 

 

 

 

Cost of revenue

 

70.1

%

69.6

%

 

 

Gross profit

 

29.9

%

30.4

%

 

 

Operating income (EBIT)

 

12.7

%

12.5

%

 

 

Net income attributable to shareholders of FMC AG & Co. KGaA

 

5.3

%

5.8

%

 

 

 

7



 

Segment and other information

 

 

 

Three months ended
 March 31

 

unaudited

 

2015

 

2014

 

Change

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

Revenue in US$ million

 

3,960

 

3,564

 

11.1

%

Operating income (EBIT) in US$ million

 

504

 

445

 

13.4

%

Operating income margin in %

 

12.7

%

12.5

%

 

 

Delivered EBIT in US$ million

 

450

 

403

 

11.5

%

Days sales outstanding (DSO)

 

71

 

74

 

 

 

Employees (full-time equivalents)

 

101,543

 

91,542

 

 

 

 

 

 

 

 

 

 

 

North America

 

 

 

 

 

 

 

Revenue in US$ million

 

2,771

 

2,393

 

15.8

%

Operating income (EBIT) in US$ million

 

340

 

336

 

1.3

%

Operating income margin in %

 

12.3

%

14.0

%

 

 

Delivered EBIT in US$ million

 

288

 

295

 

-2.6

%

Days sales outstanding (DSO)

 

52

 

56

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

 

 

 

 

 

Revenue per dialysis treatment in US$

 

341

 

339

 

0.7

%

Cost per dialysis treatment in US$

 

288

 

285

 

1.3

%

 

 

 

 

 

 

 

 

International

 

 

 

 

 

 

 

Revenue in US$ million

 

1,180

 

1,161

 

1.6

%

Operating income (EBIT) in US$ million

 

244

 

180

 

35.0

%

Operating income margin in %

 

20.6

%

15.5

%

 

 

Delivered EBIT in US$ million

 

242

 

179

 

35.0

%

Days sales outstanding (DSO)

 

114

 

107

 

 

 

 

 

 

 

 

 

 

 

EMEA

 

 

 

 

 

 

 

Revenue in US$ million

 

629

 

732

 

-14.1

%

Operating income (EBIT) in US$ million

 

141

 

128

 

10.5

%

Operating income margin in %

 

22.5

%

17.5

%

 

 

Delivered EBIT in US$ million

 

141

 

127

 

10.6

%

Days sales outstanding (DSO)

 

110

 

97

 

 

 

 

 

 

 

 

 

 

 

Asia-Pacific

 

 

 

 

 

 

 

Revenue in US$ million

 

353

 

243

 

45.4

%

Operating income (EBIT) in US$ million

 

85

 

33

 

147.9

%

Operating income margin in %

 

23.9

%

14.0

%

 

 

Delivered EBIT in US$ million

 

83

 

33

 

150.5

%

Days sales outstanding (DSO)

 

112

 

123

 

 

 

 

 

 

 

 

 

 

 

Latin America

 

 

 

 

 

 

 

Revenue in US$ million

 

198

 

186

 

6.5

%

Operating income (EBIT) in US$ million

 

18

 

19

 

-3.8

%

Operating income margin in %

 

9.0

%

10.0

%

 

 

Delivered EBIT in US$ million

 

18

 

19

 

-3.6

%

Days sales outstanding (DSO)

 

133

 

123

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

 

Revenue in US$ million

 

9

 

10

 

-12.9

%

Operating income (EBIT) in US$ million

 

(80

)

(71

)

11.5

%

Delivered EBIT in US$ million

 

(80

)

(71

)

11.7

%

 

8



 

Balance sheet

 

 

 

March 31

 

December 31

 

in US$ million, except debt/EBITDA ratio

 

2015

 

2014

 

 

 

(unaudited)

 

(audited)

 

Assets

 

 

 

 

 

Current assets

 

6,599

 

6,725

 

Goodwill and Intangible assets

 

13,879

 

13,951

 

Other non-current assets

 

4,629

 

4,771

 

Total assets

 

25,107

 

25,447

 

 

 

 

 

 

 

Liabilities and equity

 

 

 

 

 

Current liabilities

 

3,546

 

3,477

 

Long-term liabilities

 

10,595

 

11,117

 

Noncontrolling interests subject to put provisions

 

827

 

825

 

Total equity

 

10,139

 

10,028

 

Total liabilities and equity

 

25,107

 

25,447

 

 

 

 

 

 

 

Equity/assets ratio

 

40

%

39

%

 

 

 

 

 

 

Debt

 

 

 

 

 

Short-term borrowings

 

118

 

133

 

Short-term borrowings from related parties

 

25

 

5

 

Current portion of long-term debt and capital lease obligations

 

307

 

314

 

Long-term debt and capital lease obligations, less current portion

 

8,602

 

9,080

 

Total debt

 

9,052

 

9,532

 

 

 

 

 

 

 

Debt/EBITDA ratio

 

2.9

 

3.1

 

 

Cash flow statement

 

 

 

Three months ended
March 31

 

in US$ million, unaudited

 

2015

 

2014

 

Operating activities

 

 

 

 

 

Net income

 

264

 

247

 

Depreciation / amortization

 

176

 

167

 

Change in working capital and other non-cash items

 

7

 

(302

)

Net cash provided by operating activities

 

447

 

112

 

In percent of revenue

 

11.3

%

3.2

%

 

 

 

 

 

 

Investing activities

 

 

 

 

 

Purchases of property, plant and equipment

 

(201

)

(200

)

Proceeds from sale of property, plant and equipment

 

4

 

3

 

Capital expenditures, net

 

(197

)

(197

)

 

 

 

 

 

 

Free cash flow

 

250

 

(85

)

In percent of revenue

 

6.3

%

-2.4

%

 

 

 

 

 

 

Acquisitions, net of cash acquired, and purchases of intangible assets

 

(22

)

(137

)

Proceeds from divestitures

 

11

 

2

 

Acquisitions, net of divestitures

 

(11

)

(135

)

Free cash flow after investing activities

 

239

 

(220

)

 

9



 

Revenue development

 

in US$ million, unaudited

 

2015

 

2014

 

Change

 

Change
 at cc

 

Organic
growth

 

Same
market
treatment
growth
1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended March 31

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

3,960

 

3,564

 

11.1

%

16.6

%

7.4

%

 

 

Net Health Care

 

3,182

 

2,782

 

14.4

%

18.3

%

6.7

%

3.9

%

Dialysis products

 

778

 

782

 

0

%

10.5

%

10.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

2,771

 

2,393

 

15.8

%

15.8

%

6.4

%

 

 

Net Health Care

 

2,571

 

2,201

 

16.8

%

16.8

%

6.6

%

3.6

%

Thereof Net Care Coordination revenue

 

434

 

149

 

190.8

%

190.8

%

39.1

%

 

 

Thereof Net Dialysis Care revenue

 

2,137

 

2,052

 

4.2

%

4.2

%

4.2

%

3.6

%

Dialysis products

 

200

 

192

 

4.1

%

4.1

%

4.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

1,180

 

1,161

 

1.6

%

18.2

%

9.7

%

 

 

Net Health Care

 

611

 

581

 

5.1

%

23.7

%

7.3

%

4.3

%

Dialysis products

 

569

 

580

 

-1.8

%

12.7

%

12.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EMEA

 

629

 

732

 

-14.1

%

4.5

%

4.6

%

 

 

Net Health Care

 

301

 

357

 

-15.7

%

3.5

%

3.8

%

4.2

%

Dialysis products

 

328

 

375

 

-12.6

%

5

%

5.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asia-Pacific

 

353

 

243

 

45.4

%

55.6

%

17.7

%

 

 

Net Health Care

 

164

 

88

 

86.4

%

106.2

%

5.7

%

2.7

%

Dialysis products

 

189

 

155

 

22.1

%

26.9

%

24.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Latin America

 

198

 

186

 

6.5

%

23.4

%

19.0

%

 

 

Net Health Care

 

146

 

136

 

7.1

%

23.4

%

17.1

%

5.4

%

Dialysis products

 

52

 

50

 

4.9

%

23.2

%

24.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

9

 

10

 

-12.9

%

5.8

%

 

 

 

 

 


1 same market treatment growth = organic growth less price effects

cc = constant currency. Changes in revenue include the impact of changes in foreign currency exchange rates. We use the non-GAAP financial measure at Constant Exchange Rates or Constant Currency to show changes in our revenue without giving effect to period-to-period currency fluctuations. Under U.S. GAAP, revenues received in local (non-U.S. dollar) currency are translated into U.S. dollars at the average exchange rate for the period presented. Once we translate the current period local currency revenues for the Constant Currency, we then calculate the change, as a percentage, of the current period revenues using the prior period exchange rates versus the prior period revenues. This resulting percentage is a non-GAAP measure referring to a percentage change at Constant Currency.

 

We believe that revenue growth is a key indication of how a company is progressing from period to period and that the non-GAAP financial measure Constant Currency is useful to investors, lenders, and other creditors because such information enables them to gauge the impact of currency fluctuations on a company’s revenue from period to period. However, we also believe that the usefulness of data on Constant Currency period-over-period changes is subject to limitations, particularly if the currency effects that are eliminated constitute a significant element of our revenue and significantly impact our performance. We therefore limit our use of Constant Currency period-over-period changes to a measure for the impact of currency fluctuations on the translation of local currency revenue into U.S. dollars. We do not evaluate our results and performance without considering both Constant Currency period-over-period changes in non-U.S. GAAP revenue on the one hand and changes in revenue prepared in accordance with U.S. GAAP on the other. We caution the readers of this report to follow a similar approach by considering data on Constant Currency period-over-period changes only in addition to, and not as a substitute for or superior to, changes in revenue prepared in accordance with U.S. GAAP. We present the fluctuation derived from U.S. GAAP revenue next to the fluctuation derived from non-GAAP revenue. Because the reconciliation of non-GAAP to U.S. GAAP measures is inherent in the disclosure, we believe that a separate reconciliation would not provide any additional benefit.

 

10



 

Additional information Segment North America

 

 

 

Three months ended
 March 31

 

unaudited

 

2015

 

2014

 

Change

 

 

 

 

 

 

 

 

 

Care Coordination

 

 

 

 

 

 

 

Net revenue in US$ million

 

434

 

149

 

190.8

%

Operating income (EBIT) in US$ million

 

15

 

13

 

20.5

%

Operating income margin in %

 

3.5

%

8.6

%

 

 

Delivered EBIT

 

6

 

10

 

-44.6

%

 

 

 

 

 

 

 

 

Dialysis

 

 

 

 

 

 

 

Net revenue in US$ million

 

2,337

 

2,244

 

4.2

%

Operating income (EBIT) in US$ million

 

325

 

323

 

0.6

%

Operating income margin in %

 

13.9

%

14.4

%

 

 

Delivered EBIT

 

282

 

285

 

-1.1

%

 

Key metrics Dialysis Care Services

 

 

 

Three months ended March 31, 2015

 

unaudited

 

Clinics

 

Growth
in %

 

De novos

 

Patients

 

Growth
in %

 

Treatments

 

Growth
in %

 

Total

 

3,396

 

4

%

42

 

286,768

 

6

%

10,771,402

 

7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

2,189

 

2

%

32

 

176,326

 

3

%

6,634,922

 

4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EMEA

 

643

 

1

%

8

 

52,790

 

1

%

1,989,057

 

2

%

Asia-Pacific

 

318

 

26

%

2

 

25,684

 

42

%

919,163

 

38

%

Latin America

 

246

 

6

%

 

31,968

 

10

%

1,228,260

 

11

%

 

Key metrics Care Coordination

 

 

 

Three months ended March 31

 

unaudited

 

2015

 

2014

 

Growth
in %

 

North America

 

 

 

 

 

 

 

Member months under medical cost management

 

4,268

 

1,790

 

138

%

Medical cost under management (in US$)

 

35,981,554

 

15,505,840

 

132

%

Care Coordination patient encounters

 

1,272,052

 

79,396

 

1502

%

 

11



 

Member Months Under Medical Cost Management

 

Member months under medical cost management is calculated by multiplying the number of members who are included in value and risk-based reimbursement programs, such as Medicare Advantage plans or other value-based programs in the U.S., by the corresponding number of months these members participate in those programs (“Member Months”). An increase in patient membership may indicate future earnings or losses as our performance is determined through these managed care programs.

 

Medical Cost Under Management

 

Medical cost under management represents the management of medical costs associated with our patient membership in value and risk-based programs. For ESCO, BPCI and other shared savings programs, this is calculated by multiplying the Member Months in each program by the benchmark of expected medical cost per member per month. The sub-capitation and MA-CSNPs calculation multiplies the premium per member of the program per month by the number of Member Months associated with the plan, as noted above.

 

Care Coordination Patient Encounters

 

Care Coordination patient encounters represents the total patient encounters and procedures conducted by certain of our Care Coordination activities. Specifically, Care Coordination Patient Encounters is the sum of all encounters and procedures completed during the period by Sound Inpatient Physicians, Inc (“Sound”), MedSpring Urgent Care (“MedSpring”), Fresenius Vascular Care, and National Cardiovascular Partners (“NCP”) as well as patients in our Fresenius Medical Care Rx Bone Mineral Metabolism program.

 

Quality data

 

 

 

North America

 

EMEA

 

Latin America

 

Asia-Pacific

 

in % of patients

 

Q1 2015

 

Q4 2014

 

Q1 2015

 

Q4 2014

 

Q1 2015

 

Q4 2014

 

Q1 2015

 

Q4 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Clinical Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Single Pool Kt/v > 1.2

 

97

 

96

 

96

 

96

 

80

 

80

 

97

 

97

 

No catheter (> 90 days)

 

85

 

83

 

83

 

83

 

82

 

82

 

92

 

92

 

Hemoglobin = 10-12 g/dl

 

72

 

74

 

76

 

77

 

50

 

50

 

59

 

60

 

Hemoglobin = 10-13 g/dl

 

77

 

80

 

77

 

77

 

65

 

66

 

67

 

69

 

Albumin > 3.5 g/dl1)

 

83

 

83

 

91

 

92

 

89

 

90

 

91

 

91

 

Phosphate < 5.5 mg/dl

 

64

 

64

 

79

 

79

 

74

 

75

 

68

 

70

 

Calcium = 8.4-10.2 mg/dl

 

84

 

85

 

75

 

76

 

76

 

76

 

75

 

76

 

Hospitalization days

 

9.0

 

9.1

 

9.6

 

9.4

 

3.2

 

3.2

 

4.2

 

4.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demographics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average age (in years)

 

62

 

62

 

65

 

64

 

58

 

58

 

64

 

64

 

Average time on dialysis (in years)

 

4.1

 

4.0

 

5.5

 

5.5

 

4.9

 

5.9

 

4.8

 

4.9

 

Average body weight (in kg)

 

82

 

82

 

72

 

72

 

68

 

68

 

60

 

60

 

Prevalence of diabetes (in%)

 

60

 

60

 

28

 

28

 

19

 

19

 

40

 

39

 

 


1) International standard BCR CRM470

 

12



 

Reconciliation of non U.S. GAAP financial measures to the most directly comparable U.S. GAAP financial measures

 

 

 

Three months ended
 March 31

 

in US$ million, unaudited

 

2015

 

2014

 

Delivered EBIT reconciliation

 

 

 

 

 

Total

 

 

 

 

 

Operating income (EBIT)

 

504

 

445

 

less noncontrolling interests

 

(54

)

(42

)

Delivered EBIT

 

450

 

403

 

 

 

 

 

 

 

North America

 

 

 

 

 

Operating income (EBIT)

 

340

 

336

 

less noncontrolling interests

 

(52

)

(41

)

Delivered EBIT

 

288

 

295

 

 

 

 

 

 

 

Care Coordination

 

 

 

 

 

Operating income (EBIT)

 

15

 

13

 

less noncontrolling interests

 

(9

)

(3

)

Delivered EBIT

 

6

 

10

 

 

 

 

 

 

 

Dialysis

 

 

 

 

 

Operating income (EBIT)

 

325

 

323

 

less noncontrolling interests

 

(43

)

(38

)

Delivered EBIT

 

282

 

285

 

 

 

 

 

 

 

International

 

 

 

 

 

Operating income (EBIT)

 

244

 

180

 

less noncontrolling interests

 

(2

)

(1

)

Delivered EBIT

 

242

 

179

 

 

 

 

 

 

 

EMEA

 

 

 

 

 

Operating income (EBIT)

 

141

 

128

 

less noncontrolling interests

 

 

(1

)

Delivered EBIT

 

141

 

127

 

 

 

 

 

 

 

Asia-Pacific

 

 

 

 

 

Operating income (EBIT)

 

85

 

33

 

less noncontrolling interests

 

(2

)

 

Delivered EBIT

 

83

 

33

 

 

 

 

 

 

 

Latin America

 

 

 

 

 

Operating income (EBIT)

 

18

 

19

 

less noncontrolling interests

 

 

 

Delivered EBIT

 

18

 

19

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

Operating income (EBIT)

 

(80

)

(71

)

less noncontrolling interests

 

 

 

Delivered EBIT

 

(80

)

(71

)

 

 

 

 

 

 

Reconciliation of net cash provided by operating activities to EBITDA1)

 

 

 

 

 

Total EBITDA

 

680

 

612

 

Interest expense, net

 

(102

)

(96

)

Income tax expense

 

(138

)

(102

)

Change in working capital and other non-cash items

 

7

 

(302

)

Net cash provided by operating activities

 

447

 

112

 

 

 

 

 

 

 

Annualized EBITDA2)

 

 

 

 

 

Operating income (EBIT)

 

2,373

 

2,208

 

Depreciation and amortization

 

719

 

659

 

Non-cash charges

 

62

 

67

 

Annualized EBITDA

 

3,154

 

2,934

 

 


1) EBITDA is the basis for determining compliance with certain covenants in Fresenius Medical Care’s long-term debt instruments.

2) EBITDA: including largest acquisitions

 

13



 

Disclosure Changes

 

Old

 

New

 

 

 

 

 

 

 

1.) Segment reporting

 

 

 

 

 

 

 

 

 

Total

 

Total

 

Plus delivered EBIT

Revenue

 

Revenue

 

Operating income (EBIT)

 

Operating income (EBIT)

 

Operating income margin

 

Operating income margin

 

./.

 

Delivered EBIT

 

Days sales outstanding (DSO)

 

Days sales outstanding (DSO)

 

Employees (full-time equivalents)

 

Employees (full-time equivalents)

 

 

 

 

 

 

North America

 

North America

 

 

Revenue

 

Revenue

 

Changes in data in North America (no revenue & cost per treatment, but delivered EBIT)

Operating income (EBIT)

 

Operating income (EBIT)

 

Operating income margin

 

Operating income margin

 

./.

 

Delivered EBIT

 

Revenue per treatment

 

./.

 

Cost per treatment

 

./.

 

Days sales outstanding

 

Days sales outstanding (DSO)

 

 

 

 

 

 

U.S.

 

U.S.

 

Now revenue/tmt only reflecting the dialysis treatments

Revenue per treatment

 

Revenue per dialysis treatment

 

Cost per treatment

 

Cost per dialysis treatment

 

 

 

 

 

 

International

 

EMEA

 

 

Revenue

 

Revenue

 

The segment International is now sub-divided into the segments EMEA, Asia-Pacific and Latin America (excluding revenue per treatment, including delivered EBIT) to reflect changes in the way we manage our business.

Operating income (EBIT)

 

Operating income (EBIT)

 

Operating income margin

 

Operating income margin

 

./.

 

Delivered EBIT

 

Days sales outstanding (DSO)

 

Days sales outstanding (DSO)

 

Revenue per treatment

 

./.

 

 

 

 

 

 

 

Asia-Pacific

 

 

 

Revenue

 

 

 

Operating income (EBIT)

 

 

 

Operating income margin

 

 

 

Delivered EBIT

 

 

 

Days sales outstanding (DSO)

 

 

 

 

 

 

 

Latin America

 

 

 

Revenue

 

 

14



 

 

 

Operating income (EBIT)

 

 

 

 

Operating income margin

 

 

 

 

Delivered EBIT

 

 

 

 

Days sales outstanding (DSO)

 

 

 

 

 

 

 

Corporate

 

Corporate

 

 

Revenue

 

Revenue

 

Plus delivered EBIT so that delivered EBIT adds up

Operating income

 

Operating income (EBIT)

 

./.

 

Delivered EBIT

 

 

 

 

 

 

2.) Additional information North America segment:

 

 

 

 

 

 

 

North America

 

North America

 

 

Dialysis products revenue

 

Dialysis products revenue

 

Further breakdown of Revenue, Operating Income (EBIT) and delivered EBIT into Care Coordination and Dialysis

Net Health Care revenue

 

Net Health Care revenue

 

 -Thereof Care Coordination revenue

 

 -Thereof Net Care Coordination revenue

 

 -Thereof Net Dialysis Care revenue

 

 -Thereof Net Dialysis Care revenue

 

 

 

 

 

./.

 

Net Care Coordination revenue

 

./.

 

Net Dialysis revenue

 

 

 

 

 

Operating income (EBIT)

 

Operating income (EBIT)

 

./.

 

   -Care Coordination operating income (EBIT)

 

./.

 

   -Dialysis operating income (EBIT)

 

 

 

 

 

Operating income margin

 

Operating income margin

 

./.

 

   -Care Coordination operating income margin

 

./.

 

   -Dialysis operating income margin

 

 

 

 

 

./.

 

Delivered EBIT

 

./.

 

   -Care Coordination Delivered EBIT

 

./.

 

   -Dialysis Delivered EBIT

 

 

 

 

 

 

3.) North America Care Coordination - new business metrics:

 

 

 

 

 

 

./.

 

Member months under medical cost management

 

New business metrics that we think reflect the development of Care Coordination most approriate

./.

 

Medical cost under management (in US$)

 

./.

 

Care Coordination patient encounters (in US$)

 

 

15



 

CONTACT

 

Fresenius Medical Care AG & Co. KGaA

Investor Relations

 

61352 Bad Homburg v. d. H.

Germany

www.freseniusmedicalcare.com

 

Oliver Maier

Head of Investor Relations &

Corporate Communications

Tel. +49 6172 609 2601

Fax +49 6172 609 2301

email: ir@fmc-ag.com

 

Published by

Fresenius Medical Care AG & Co. KGaA

Investor Relations

 

Annual reports, interim reports and further

information on the company is also available on our website.

Please visit us at www.freseniusmedicalcare.com

 

For printed material, please contact Investor Relations.

 


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