Half-yearly Financial Information as of June 30, 2015
IFRS – Regulated Information – Not audited
- The transition to SaaS versions
continues
- Activus acquisition gives Cegedim
Assurances international reach
- The Group confirms its 2015
targets
Regulatory News:
Cegedim, an innovative technology and services company,
generated consolidated first half 2015 revenues from continuing
activities of €246.1 million, up 1.1% like for like and 3.2%
on a reported basis compared with the same period in 2014. All
Group divisions contributed to the reported increase.
The decline in like-for-like revenues at the Healthcare
professionals division was more than offset by growth at the Health
Insurance, HR and e-services and Cegelease divisions. Note that the
Healthcare professionals division’s performances improved over the
course of the second quarter.
Cegedim continues to successfully transition its products over
to SaaS model. However, the transition affected sales at Cegedim
Assurances in the second quarter of 2015.
Greater use of self-financing in the second quarter of 2015
negatively affected the Q2 revenues of Cegelease. However, the
value of new contracts is matching the pace forecast at the start
of the year. The margin on self-financed contracts is higher, but
is recorded over the duration of the contract.
As previously announced, the Group expanded its activities
internationally via targeted acquisitions. On July 20, Cegedim
strengthened its software publishing activity in the fields of
health and personal protection insurance in new countries by
acquiring Activus in the UK.
Cegedim announced the divestment of its CRM and strategic data
division to IMS Health for €396 million in cash(1) on April 1.
As a result, rating agency Standard & Poor’s upgraded its
rating for Cegedim to BB- with a positive outlook.
Cegedim confirms its expectation of 2.5% like-for-like revenue
growth from continuing activities and 10% underlying EBIT growth in
2015.
- The change in revenues per division
for the first half is as follows:
€ million
HY 2015 HY 2014 HY 2015/2014 change
Reported L-f-L Health Insurance, HR and e-services
111.5 106.6 +4.6% +4.6% Healthcare professionals 76.5 74.5
+2.7% (3.9)% Cegelease 56.1 55.8 +0.5% +0.5% Activities not
allocated 1.9 1.6 +18.9% +18.9%
Group 246.1 238.6
+3.2% +1.1%
In the first half of 2015, Cegedim generated consolidated
revenues from continuing activities of €246.1 million, up 3.2%
on a reported basis and 1.1% like for like compared with the same
period in 2014. Acquisitions and divestments had virtually no
effect, and currencies had a positive impact of 2.1%. Group
revenues, including the Q1 revenues of the activities sold on April
1, 2015, came to €348.1 million, down 18.8% on a reported
basis and up 2.2% like for like compared with the year-earlier
period.
(1)This estimated amount is subject to joint review over a
period of 180 business days.
- The change in revenues per division
for the second quarter is as follows:
€ million
2nd quarter 2015 2nd quarter 2014 Q2 2015/2014 change
Reported L-f-L Health Insurance, HR and
e-services 57.5 56.8 +1.3% +1.3% Healthcare professionals
39.4 37.6 +4.6% (2.1)% Cegelease 26.8 30.0 (10.4)% (10.4)%
Activities not allocated 1.1 0.8 +33.7%
+33.7%
Group 124.8 125.2
(0.3)% (2.3)%
In the second quarter of 2015, continuing activities had
revenues of €124.8 million, down 2.3% like-for-like compared
with the same period in 2014. There were no acquisitions or
divestments, and currencies had a positive impact of 2.1%, meaning
revenues were virtually stable on a reported basis.
Given that the divestment occurred on April 1, 2015, revenues
including activities held for sale came to €125.2 million.
Analysis of business trends by division
- Health Insurance, HR and
e-services
In the first half of 2015, division revenues came to
€111.5 million, up 4.6% on a reported basis and like for like.
Currencies had virtually no impact, and there were no acquisitions
or divestments.
The Health Insurance, HR and e-services division represented
45.3% of consolidated revenues from continuing activities, compared
with 44.7% during the same period a year earlier.
In the second quarter of 2015, division revenues came to
€57.5 million, up 1.3% on a reported basis and like for like.
Currencies had virtually no impact, and there were no acquisitions
or divestments.
This division is growing even though it is in the midst of
transitioning part of its Insurance product range to SaaS model. In
fact, Cegedim Assurances was the first company in France to win the
highest level of Label Cloud certification from France IT for its
ACTIV’ suite in SaaS form. Alongside this transition, in July 2015
the division acquired UK-based Activus, a publisher of health and
personal protection insurance software. This acquisition will allow
expansion into new markets, such as the UK, the USA, the Middle
East, APAC, and Africa, among others. Lastly, RNP, a specialist in
traditional and digital displays for pharmacy windows in France,
experienced a different sequential trend in the second quarter of
2015 than it did in 2014. It is expected to make up the difference
in the third quarter of 2015.
The third-party payment flow management activities of Cegedim
Assurances experienced double-digit growth, as did the human
resources solutions of Cegedim SRH and the electronic invoicing
offerings at Cegedim e-business. In addition, iGestion saw a
ramp-up among the clients it signed in 2014 for its range of
outsourcing solutions covering all or part of the business
processes of insurance companies, personal protection insurers and
mutual insurers.
Sales momentum continued in the second quarter with the
announcement of new clients, such as Euromaster at Cegedim SRH, and
Bouygues Telecom and Henkel France at Cegedim e-business.
The division’s first half 2015 revenues came to
€76.5 million, up 2.7% on a reported basis. The acquisition of
SoCall and currency effects made positive contributions of 0.1% and
6.5%. Like-for-like revenues fell 3.9% over the period.
The Healthcare professionals division represented 31.1% of
consolidated revenues from continuing activities, on a par with the
same period a year earlier.
In the second quarter of 2015, division revenues amounted to
€39.4 million, a 4.6% increase on a reported basis. There were
no acquisitions or divestments, and currencies made a positive
contribution of 6.8%. Like-for-like revenues fell 2.1% over the
period.
The decrease is chiefly attributable to slower activity in the
UK. But investments in a Cloud offering aimed at UK physicians
should restore the activity’s sales momentum over the coming
months.
The rebound in sales momentum continues in the computerization
of pharmacies in France, although there is always a lag between
commercial successes and revenue recognition.
The decrease in revenues was partly offset by continuing robust
growth in the computerization of physicians in France, Belgium,
Spain and Romania, and in drug databases in France and the UK. As
expected, the computerization of physicians in the US bounced back
strongly in the second quarter.
Note that despite a demanding comparison, the revenue decline
was only half what it was in the first quarter.
The division’s first half 2015 revenues came to
€56.1 million, up 0.5% on a reported basis and like for like.
There were no acquisitions or divestments, and currencies had no
impact.
The Cegelease division represented 22.8% of consolidated
revenues from continuing activities, on a par with the same period
a year earlier.
In the second quarter of 2015, division revenues came to
€26.8 million, down 10.4% on a reported basis and like for
like. There were no acquisitions or divestments, and currencies had
no impact.
Revenues were down in Q2 2015 owing to greater use of
self-financing for financial lease contracts. Revenue earned from
self-financed contracts is recognized over the duration of the
contract, unlike contracts that are resold, whose revenues are
recognized immediately. As a reminder, margins are higher on
self-financed contracts than on resold contracts. But again, the
margin on resold contracts is recognized as soon as the contract is
signed, whereas the margin on self-financed contracts is recognized
over the duration of the contract.
The division’s first half 2015 revenues came to
€1.9 million, up 18.9% on a reported basis and like for like.
There were no acquisitions or divestments, and currencies had no
impact.
The Activities not allocated represented 0.8% of consolidated
revenues from continuing activities, on a par with the same period
a year earlier.
In the second quarter of 2015, division revenues came to
€1.1 million, up 33.7% on a reported basis and like for like.
There were no acquisitions or divestments, and currencies had no
impact.
This increase was the result of invoicing for specific
services that are being provided to IMS Health solely in the
context of the sale of the CRM and strategic
data activity on April 1, 2015.
Financial resources – 2nd quarter highlights
- Disposal of the “CRM and Strategic
Data” division to IMS Health
On April 1, 2015, Cegedim announced that it had completed the
disposal of its CRM and Strategic Data division to IMS Health. The
estimated selling price, determined in accordance with October 2014
agreements, amounts to €396 million. This estimated amount is
subject to joint review over a period of 180 business days.
- S&P has upgraded Cegedim’s
rating to BB- with positive outlook
Following the announcement of the transaction, rating agency
Standard and Poor’s upgraded Cegedim’s rating to BB-, with positive
outlook, on April 13, 2015.
- Buyback of Cegedim shares
In the second quarter, Cegedim bought back 25,419 shares for
€0.9 million, excluding transactions made as part of the
Group’s liquidity contract. These buybacks were made to fulfill
bonus share distribution plans. As part of these plans, the company
distributed to employees 32,140 of its own shares during the second
quarter.
- Favorable exchange rate
movements
At end-June, movements in exchange rates were positive,
contributing €2.6 million to consolidated second quarter
revenues from continuing activities.
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
- Acquisition in the UK of
Activus
On July 20th 2015, Cegedim announces the acquisition of 100% of
Activus, one of the UK’s leading suppliers of health and protection
insurance software. This deal gives Cegedim Assurances access to
new markets (UK, US, Middle East, APAC, Africa, …) and strengthens
its software offering for international clients. Activus generated
revenue of around €7 million in 2014.
This move is part of the Group’s strategy of making bolt-on
acquisitions to expand its international positions.
The deal was financed with internal financing. It will
contribute positively to the Group’s margins and to its
consolidated results starting in the second half of 2015.
- Redemption of the 7.0% 2015
bond
Cegedim redeemed the full amount of the €62.6 million
remaining in circulation of the 7.0% 2015 bond upon maturity on
July 27, 2015 (ISIN : FR0010925172).
Apart from the items cited above, to the best of the company’s
knowledge, there were no post-closing events or changes that would
materially alter the Group’s financial situation.
Outlook
For 2015, Cegedim confirms its expectation of like-for-like
revenue growth from continuing activities of 2.5% and underlying
EBIT growth of 10%.
The Group does not anticipate any significant acquisitions for
2015 and does not disclose profit projections or estimates.
Financial calendar
The Group will hold a conference call
today on July 28, 2015, at 6:15 pm in English (Paris time). The
call will be hosted by Jan Eryk Umiastowski, Cegedim Chief
Investment Officer and Head of Investor Relations.
A presentation of Cegedim Q2 2015 Revenue
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
September 28, 2015 (after the stock market closes)
- H1 2015 Results announcement
September 29, 2015
October 27, 2015 (after the stock market closes)
- Q3 2015 Revenue announcement
November 26, 2015 (after the stock market closes)
- Q3 2015 Results announcement
Additional information
Complete financial information and a presentation on Cegedim’s
second quarter revenue are available on our website:
www.cegedim.com/finance.
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
- Revenues by division and by
quarter#:
# Figures rounded to the nearest unit
Year 2015
€ thousands Q1 Q2 Q3 Q4
Total Health Insurance, HR and e-services 54,004
57,546 111,549 Healthcare professionals
37,187 39,352 76,539 Cegelease 29,293 26,842 56,134 Activities not
allocated 825 1,100
1,925
Group 121,309
124,839 249,148
Year 2014
€ thousands Q1 Q2 Q3 Q4
Total Health Insurance, HR and e-services 49,801
56,801 106,602 Healthcare professionals
36,906 37,617 74,523 Cegelease 25,867 29,971 55,838 Activities not
allocated 796 823
1,619
Group 113,370 125,211
238,581
- By division and geographic zone, the
distribution of revenues for the 1st half of 2015 is
as follows:
France EMEA ex France Americas
APAC Health Insurance, HR and e-services 98.5% 1.5%
- - Healthcare professionals 45.6% 45.7% 8.7% -
Cegelease 100.0% - - - Activities not allocated 98.1%
1.9% - -
Group 82.4%
14.9% 2.7% -
- By division and currency, the
distribution of revenues for 1st half of 2015 is as
follows:
Euro USD GBP Others CRM and
strategic data 98.5% 0.0% 0.0% 1.5%
Healthcare professionals 50.0% 8.6% 40.2% 1.2% Insurance and
services 100.0% 0.0% 0.0% 0.0% GERS Activities and Reconciliation
100.0% 0.0% 0.0% 0.0%
Group
83.8% 2.7% 12.5%
1.1%
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 from recurring operations:
this is EBIT restated to take account of non-current items, such as
losses on tangible and intangible assets, restructuring, etc. It
corresponds to the operating income from recurring operations for
the Cegedim Group.
EBITDA: Earnings before interest,
taxes, depreciation and amortization. EBITDA is the term used when
amortization or depreciation and revaluations are not taken into
account. “D” stands for depreciation of tangible assets (such as
buildings, machines or vehicles), while “A” stands for amortization
of intangible assets (such as patents, licenses and goodwill).
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.
Operating margin: defined as the
ratio of EBIT/revenue.
Operating margin from recurring
operations: defined as the ratio of EBIT from recurring
operations/revenue.
Net cash: defined as cash and cash
equivalent minus overdraft.
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 almost 3,500 people in 11 countries and generated
revenue of €494 million in 2014. Cegedim SA is listed in Paris
(EURONEXT: CGM).
To learn more, please visit:
www.cegedim.com
And follow Cegedim on Twitter:
@CegedimGroup
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150728006405/en/
CegedimMedia RelationsAude BALLEYDIER, +33 (0)1 49 09 68
81aude.balleydier@cegedim.frorInvestor RelationsJan Eryk
UMIASTOWSKI, +33 (0)1 49 09 33 36Chief investment
Officerinvestor.relations@cegedim.frorPRPA AgencyMedia
RelationsGuillaume DE CHAMISSO, +33 (0)1 46 99 69
69guillaume.dechamisso@prpa.fr
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