DGAP-News: Fresenius Medical Care AG & Co. KGaA: Fresenius Medical Care Reports Third Quarter And Nine Months 2013 Results

DGAP-News: Fresenius Medical Care AG & Co. KGaA: Fresenius Medical Care Reports 
Third Quarter And Nine Months 2013 Results  

DGAP-News: Fresenius Medical Care AG & Co. KGaA / Key word(s): Quarter
Results
Fresenius Medical Care AG & Co. KGaA: Fresenius Medical Care Reports
Third Quarter And Nine Months 2013 Results

05.11.2013 / 07:50

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November 5, 2013

Fresenius Medical Care Reports Third Quarter And Nine Months 2013 Results  

Third Quarter 2013 Key Figures:
Net revenue      $3,666 million +7%
Operating income (EBIT)   $557 million  -2%
Adjusted operating income (EBIT)  $576 million  +2%
Net income1      $273 million  +1%
Adjusted net income1     $285 million  +6%
Earnings per ordinary share   $0.91   +3%
Adjusted earnings per ordinary share $0.95   +7%

Nine Months 2013 Key Figures:
Net revenue      $10,743 million +6%
Operating income (EBIT)   $1,595 million -4%
Adjusted operating income (EBIT)  $1,625 million -1%
Net income1      $761 million  -18%
Adjusted net income1   $783 million  0%
Earnings per ordinary share   $2.50   -18%
Adjusted earnings per ordinary share $2.57    0%
1attributable to shareholders of Fresenius Medical Care AG & Co. KGaA
 
Bad Homburg, Germany - Fresenius Medical Care AG & Co. KGaA (the 'company'
or 'Fresenius Medical Care'; Frankfurt Stock Exchange: FME / New York Stock
Exchange: FMS), the world's largest provider of dialysis products and
services, today announced its results for the third quarter and first nine
months of 2013.

Rice Powell, chief executive officer of Fresenius Medical Care, commented:
'Given the economic challenges we continue to face, we can be satisfied
with our business performance in the third quarter, specifically with the
strong organic revenue growth of 6%. As indicated after the second quarter
we expected the second half of the year to be stronger to achieve our
guidance for 2013. And there is no doubt that we need a very strong fourth
quarter to get there. We will continue to grow our business and expand our
renal network, and with this we will be best positioned for future
success.'

Third Quarter 2013

Revenue

Net revenue for the third quarter of 2013 increased by 7% to $3,666 million
(+8% at constant currency) compared to the third quarter of 2012. Organic
revenue growth worldwide was 6%. Dialysis services revenue grew by 8% to
$2,813 million (+9% at constant currency) and dialysis product revenue
increased by 5% to $853 million (+4% at constant currency).

North America revenue for the third quarter of 2013 increased by 8% to
$2,436 million. Organic revenue growth was 6%. Dialysis services revenue
grew by 9% to $2,224 million with a same store treatment growth of 3.5%.
Dialysis product revenue increased by 5% to $212 million.

International revenue increased by 5% to $1,222 million (+6% at constant
currency). Organic revenue growth was 4%. Dialysis services revenue
increased by 5% to $589 million (+8% at constant currency). Dialysis
product revenue increased by 5% to $633 million (+4% at constant currency).

Earnings

Operating income (EBIT) for the third quarter of 2013 decreased by 2% to
$557 million compared to $568 million in the third quarter of 2012.
Operating income for North America for the third quarter of 2013 decreased
by 1% to $416 million compared to $420 million in the third quarter of
2012. In the International segment, operating income for the third quarter
of 2013 increased by 5% to $204 million compared to $195 million in the
third quarter of 2012.

Adjusted for the impact from the budget cuts in the U.S. (sequestration),
that were effectively introduced in April 2013, the operating income for
the third quarter of 2013 increased by 2% to $576 million.

Net interest expense for the third quarter of 2013 was $103 million,
compared to $108 million in the third quarter of 2012.

Net income attributable to shareholders of Fresenius Medical Care AG & Co.
KGaA for the third quarter of 2013 was $273 million, an increase of 1%
compared to the corresponding number of $270 million for the third quarter
of 2012. Adjusted for the net of tax effects of the special item mentioned
above, net income attributable to shareholders of Fresenius Medical Care AG
& Co. KGaA for the third quarter of 2013 increased by 6% to $285 million.

Income tax expense was $148 million for the third quarter of 2013 which
translates into an effective tax rate of 32.6%. This compares to income tax
expense of $153 million and a tax rate of 33.3% for the third quarter of
2012.

Earnings per ordinary share (EPS) for the third quarter of 2013 was $0.91,
an increase of 3% compared to the corresponding number for the third
quarter of 2012. Adjusted for the special item mentioned above, EPS for the
third quarter of 2013 increased by 7% to $0.95. The weighted average number
of shares outstanding for the third quarter of 2013 was approximately 301.3
million shares, compared to 305.5 million shares for the third quarter of
2012. The decrease in shares outstanding resulted from the effect of the
share buy-back program, which was fully completed in August 2013, partially
offset by stock option exercises in the past twelve months.

Cash flow 

In the third quarter of 2013, the company generated $605 million in cash
from operations, an increase of 13% compared to the corresponding figure of
last year and representing 16.5% of revenue.

A total of $175 million was spent for capital expenditures, net of
disposals. Free cash flow before acquisitions was $430 million
(representing 11.7% of revenue) compared to $371 million in the third
quarter of 2012.

A total of $195 million in cash was spent for acquisitions and investments,
net of divestitures. Free cash flow after acquisitions and divestitures was
$235 million, compared to $334 million in the third quarter of 2012.

First Nine Months 2013:

Revenue and Earnings

Net revenue for the first nine months of 2013 increased by 6% to $10,743
million (+7% at constant currencies) compared to the first nine months of
2012.

Operating income (EBIT) for the first nine months of 2013 decreased by 4%
to $1,595 million compared to $1,659 million in the first nine months of
2012. Adjusted for special items related to the acquisition of Liberty
Dialysis Holdings Inc. and the impact from sequestration the operating
income for the first nine months of 2013 decreased by 1% to $1,625 million
compared to $1,645 million for the first nine months of 2012.
  
Net interest expense for the first nine months of 2013 was $310 million
compared to $311 million for the first nine months of 2012.

For the first nine months of 2013, net income attributable to shareholders
of Fresenius Medical Care AG & Co. KGaA was $761 million, down by 18% from
the corresponding number of $930 million for the first nine months of 2012.
Adjusted for the net of tax effects of the special items mentioned above,
net income attributable to shareholders of Fresenius Medical Care AG & Co.
KGaA for the first nine months of 2013 was $783 million as compared to $784
million for the first nine months of 2012.

Income tax expense for the first nine months of 2013 was $421 million which
translates into an effective tax rate of 32.8%. This compares to income tax
expense of $462 million and a tax rate of 31.1% for the first nine months
of 2012.

In the first nine months of 2013, earnings per ordinary share (EPS)
decreased by 18% to $2.50 compared to $3.05 for the first nine months of
2012. Adjusted for the special items mentioned above, EPS for the first
nine months of 2013 remained unchanged at $2.57 compared to the first nine
months of 2012. The weighted average number of shares outstanding during
the first nine months of 2013 was approximately 304.7 million.

Cash Flow 

Cash from operations during the first nine months of 2013 was $1,446
million (representing 13.5% of revenue) compared to $1,467 million for the
same period in 2012.

A total of $494 million in cash was spent for capital expenditures, net of
disposals. Free cash flow before acquisitions for the first nine months of
2013 was $952 million compared to $1,029 million in the same period in
2012. A total of $279 million in cash was spent for acquisitions, net of
divestitures. Free cash flow after acquisitions and divestitures was $673
million compared to a negative $528 million in the first nine months of
last year.

Please refer to the attachments for a complete overview of the results for
the third quarter and first nine months of 2013 and the reconciliation of
non-GAAP financial measures included in this release to the most comparable
GAAP financial measures.

Patients - Clinics - Treatments 

As of September 30, 2013, Fresenius Medical Care treated 265,824 patients
worldwide, which represents an increase of 4% compared to the previous
year's figure. North America provided dialysis treatments for 168,893
patients, an increase of 3% compared to the corresponding number for 2012.
The International segment provided dialysis treatments for 96,931 patients,
an increase of 4% over the prior year's figure.

As of September 30, 2013, the company operated a total of 3,225 clinics
worldwide, an increase of 3% compared to the corresponding number for 2012.
The number of clinics is comprised of 2,116 clinics in North America (+3%)
and 1,109 clinics in the International segment (+3%).

During the first nine months of 2013, Fresenius Medical Care delivered
approximately 30.03 million dialysis treatments worldwide. This represents
an increase of 5% compared to the previous year's figure. North America
accounted for 19.04 million treatments, an increase of 5%. The
International segment delivered 10.99 million treatments, an increase of
4%.

Employees 

As of September 30, 2013, Fresenius Medical Care had 89,282 employees
(full-time equivalents) worldwide, compared to 86,153 employees at the end
of 2012.

Debt/EBITDA ratio

The ratio of debt to earnings before interest, taxes, depreciation and
amortization (EBITDA) slightly increased from 2.92 at the end of the second
quarter of 2013 to 2.94 at the end of the third quarter of 2013.

Rating

Standard & Poor's rates the company's corporate credit as 'BB+', with a
'positive' outlook. Moody's rates the company's corporate credit as 'Ba1'
with a 'stable' outlook. Fitch Ratings is currently reviewing Fresenius
Medical Care's ratings.

Share buy-back program 

Fresenius Medical Care's share buy-back program was completed on August 14,
2013. The company bought back a total number of approximately 7.5 million
shares with an aggregate value of EUR385 million (approximately $500
million). The program was financed from cash flow and existing credit
facilities.

Guidance for 2013 confirmed 

The company expects revenue to grow to more than $14.6 billion in 2013,
translating into a growth rate of more than 6%.

Net income attributable to shareholders of Fresenius Medical Care AG & Co.
KGaA is expected to be between $1.1 billion and $1.15 billion in 2013,
likely at the low end of the range.

For 2013, the company expects to spend around $700 million on capital
expenditures and around $500 million on acquisitions. The debt/EBITDA ratio
is expected to be equal or below 3.0 by the end of 2013.

 Conference Call

Fresenius Medical Care will hold a conference call to discuss the results
of the third quarter and first nine months of 2013 on Tuesday, November 5,
2013, at 3.30 p.m. CET/  9.30 a.m. EST. The company invites investors to
follow the live webcast of the call at the company's website www.fmc-ag.com
in the 'Investor Relations' 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 2.3 million
individuals worldwide. Through its network of 3,225 dialysis clinics in
North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius
Medical Care provides dialysis treatments for 265,824 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.fmc-ag.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.

 


End of Corporate News

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Language:    English                                                
Company:     Fresenius Medical Care AG & Co. KGaA                   
             Else-Kröner-Straße 1                                   
             61352 Bad Homburg                                      
             Germany                                                
Phone:       +49 (0) 6172- 609 2525                                 
Fax:         +49 (0) 6172- 609 2301                                 
E-mail:      ir@fmc-ag.com                                          
Internet:    www.fmc-ag.de                                          
ISIN:        DE0005785802, DE0005785836,                            
WKN:         578580, 578583                                         
Indices:     DAX                                                    
Listed:      Regulierter Markt in Frankfurt (Prime Standard);       
             Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,  
             München, Stuttgart; Terminbörse EUREX; NYSE            
 
 
End of News    DGAP News-Service  
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237794 05.11.2013                                                      
 
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