DGAP-News: Fresenius Medical Care AG & Co. KGaA: reports fourth quarter and full year 2013 results

DGAP-News: Fresenius Medical Care AG & Co. KGaA: reports fourth quarter and 
full year 2013 results

DGAP-News: Fresenius Medical Care AG & Co. KGaA / Key word(s): Final
Results
Fresenius Medical Care AG & Co. KGaA: reports fourth quarter and full
year 2013 results

25.02.2014 / 07:33

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February 25, 2014

INVESTOR NEWS

Fresenius Medical Care reports fourth quarter and full year 2013 results

  
  - Targets achieved for fiscal year 2013 

  - Further expansion of global franchise and new record level of revenue

  - Increased dividend to be proposed at the Annual General Meeting 

Fourth Quarter 2013 Key figures:

Net revenue      $ 3,867 million  +4%
Operating income (EBIT)    $661 million   +18%
Net income1      $349 million   +36%
Basic earnings per ordinary share   $1.16    +38%

Full Year 2013 Key figures:

Net revenue      $ 14,610 million  +6%
Operating income (EBIT)    $2,256 million  +2%
Net income1      $1,110 million  -6%
Basic earnings per ordinary share   $3.65    -6%

Dividend proposal:

Ordinary share     EUR0.77    +3%

Rice Powell, chief executive officer of Fresenius Medical Care, commented:
"With a very strong fourth quarter, we completed a sound fiscal year 2013
and achieved the targets we set for ourselves. Despite the impact of the
reimbursement cuts in the U.S. that were introduced last year we achieved
another record in net revenue, supported by a continued excellent cash flow
performance. Looking ahead we are faced with a challenging environment, in
particular with structural changes due to growing pressure on reimbursement
systems. In order to successfully meet these changes we are concentrating
on measures aimed at enhancing our profitability in 2014 and beyond."

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

 Fourth Quarter 2013

Revenue

Net revenue for the fourth quarter of 2013 increased by 4% to $3,867
million (+5% at constant currency) compared to the fourth quarter of 2012.
Organic revenue growth worldwide was 3%. Dialysis services revenue grew by
3% to $2,895 million (+4% at constant currency) and dialysis product
revenue increased by 8% to $972 million (+8% at constant currency).

North America revenue for the fourth quarter of 2013 increased by 3% to
$2,507 million. Organic revenue growth was 1.5%. Dialysis services revenue
grew by 3% to $2,288 million with a same store treatment growth of 3.4%.
Dialysis product revenue increased by 6% to $219 million.

International revenue increased by 6% to $1,351 million (+8% at constant
currency). Organic revenue growth was 7%. Dialysis services revenue
increased by 4% to $607 million (+8% at constant currency). Dialysis
product revenue increased by 8% to $744 million (+8% at constant currency).

Earnings

Operating income (EBIT) for the fourth quarter of 2013 increased by 18% to
$661 million compared to $559 million in the fourth quarter of 2012.
Operating income for North America for the fourth quarter of 2013 increased
by 7% to $446 million compared to $416 million in the fourth quarter of
2012. In the International segment, operating income for the fourth quarter
of 2013 increased by 23% to $261 million compared to $212 million in the
fourth quarter of 2012.

Net interest expense for the fourth quarter of 2013 was $98 million,
compared to $115 million in the fourth quarter of 2012.

Net income attributable to shareholders of Fresenius Medical Care AG & Co.
KGaA for the fourth quarter of 2013 was $349 million, an increase of 36%
compared to the corresponding number of $257 million for the fourth quarter
of 2012.

Income tax expense was $171 million for the fourth quarter of 2013 which
translates into an effective tax rate of 30.4%. This compares to income tax
expense of $142 million and a tax rate of 32.1% for the fourth quarter of
2012.

Basic earnings per ordinary share (EPS) for the fourth quarter of 2013 was
$1.16, an increase of 38% compared to the corresponding number for the
fourth quarter of 2012. The weighted average number of shares outstanding
for the fourth quarter of 2013 was approximately 301.0 million shares,
compared to 306.4 million shares for the fourth quarter of 2012. The
decrease in shares outstanding resulted from the share buy-back program,
which was completed in August 2013, partially offset by stock option
exercises in the past twelve months.

Cash flow 

In the fourth quarter of 2013, the company generated $589 million in net
cash provided by operating activities, an increase of 3% compared to the
corresponding figure of last year and representing 15.2% of revenue.

A total of $234 million was spent for capital expenditures, net of
disposals. Free cash flow was $355 million (representing 9.2% of revenue)
compared to $345 million in the fourth quarter of 2012.

A total of $198 million in cash was spent for acquisitions, net of
divestitures. Free cash flow after investing activities was $157 million,
compared to $286 million in the fourth quarter of 2012.

Full year 2013

Revenue and Earnings

Net revenue for the full year 2013 increased by 6% to $14,610 million (+6%
at constant currencies) compared to the full year 2012.

Operating income (EBIT) for the full year 2013 increased by 2% to $2,256
million compared to $2,219 million in the full year 2012.
Net interest expense for the full year 2013 was $409 million compared to
$426 million for the full year 2012.

For the full year 2013, net income attributable to shareholders of
Fresenius Medical Care AG & Co. KGaA was $1,110 million, down by 6% from
the corresponding number of $1,187 million for the full year 2012.

Income tax expense for the full year 2013 was $592 million which translates
into an effective tax rate of 32.0%. This compares to income tax expense of
$605 million and a tax rate of 31.3% for the full year 2012.

In the full year of 2013, basic earnings per ordinary share (EPS) decreased
by 6% to $3.65 compared to $3.89 for the full year 2012. The weighted
average number of shares outstanding during the full year 2013 was
approximately 303.8 million.

Cash flow 

Net cash provided by operating activities during the full year 2013 was
$2,035 million (representing 13.9% of revenue) compared to $2,039 million
for the same period in 2012.

A total of $728 million in cash was spent for capital expenditures, net of
disposals. Free cash flow for the full year 2013 was $1,307 million
compared to $1,373 million in the same period in 2012.

A total of $478 million in cash was spent for acquisitions, net of
divestitures. Free cash flow after investing activities was $829 million
compared to a negative $242 million in the full year 2012.

Employees 

As of December 31, 2013, Fresenius Medical Care had 90,690 employees
(full-time equivalents) worldwide, compared to 86,153 employees at the end
of 2012. This increase of approximately 4,500 employees is due to overall
growth in the company's business and acquisitions.

Balance sheet structure 

The company's total assets were $23,120 million (Dec. 31, 2012: $22,326
million), an increase of 4%. Current assets increased by 3% to $6,287
million (Dec. 31, 2012: $6,127 million). Non-current assets were $16,833
million (Dec. 31, 2012: $16,199 million), an increase of 4%. Total equity
increased by 3% to $9,485 million (Dec. 31, 2012: $9,207 million). The
equity ratio was 41%, unchanged compared to the ratio at the end of 2012.
Total debt was $8,417 million (Dec. 31, 2012: $8,298 million). As of
December 31, 2013, the debt/EBITDA ratio was 2.8 (Dec. 31, 2012: 2.8).

Please refer to the attachments for a complete overview of the results for
the fourth quarter and full year 2013 and the reconciliation of non-GAAP
financial measures included in this release to the most comparable GAAP
financial measures.

Dividend

At the Annual General Meeting to be held on May 15, 2014, shareholders will
be asked to approve a dividend of EUR0.77 per ordinary share, an increase
of 3% from 2012 (EUR0.75). For the 17th consecutive year, shareholders can
expect to receive an increased annual dividend.

Outlook

The company expects revenue to be at around $15.2 billion in 2014,
translating into a growth rate of around 4%.

Net income attributable to shareholders of Fresenius Medical Care AG & Co.
KGaA is expected to be between $1.0 billion and $1.05 billion in 2014. The
company initiated a global efficiency program designed to enhance the
company's performance over a multi-year period. Potential cost savings
before income taxes of up to $60 million generated from this program are
not included in the outlook for 2014.

For 2014, the company expects to spend around $900 million on capital
expenditures and around $400 million on acquisitions. The debt/EBITDA ratio
is expected to be equal to or below 3.0 by the end of 2014.
Conference Call

Fresenius Medical Care will hold a conference call to discuss the results
of the fourth quarter and full year 2013 on Tuesday, February 25, 2014, 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 2.5 million
individuals worldwide. Through its network of 3,250 dialysis clinics in
North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius
Medical Care provides dialysis treatments for 270,122 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.
eports, interim reports and further
Information on the company is also available on our website.
Please visit us at www.fmc-ag.com

For please contact Investor Relations.


CONTACT

Fresenius Medical Care AG & Co. KGaA
Investor Relations
61352 Bad Homburg v. d. H.
Germany
www.fmc-ag.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.fmc-ag.com

For printed material, please contact Investor Relations.


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            
 
 
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254098 25.02.2014                                                      
 
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