SHL Telemedicine reports first quarter 2014 financial results
-- Revenues up by 49.3% to USD 10.6 million (USD 7.1 million in Q1 2013)
-- EBITDA reached USD 2.0 million (USD 1.4 million in Q1 2013)
-- Germany revenue tripled year over year, contributing 43.4% of total revenues
-- Received marketing approvals for the smartheart™ in Japan and China
-- Accelerated revenue growth. Increasing revenue outlook to over 30% growth in 2014
TEL AVIV, Israel and ZURICH, May 21, 2014 /PRNewswire/ -- SHL Telemedicine Ltd. (SIX Swiss Exchange: SHLTN, OTCPK: SMDCY), a leading provider and developer of advanced personal telemedicine solutions, today announced results for the first quarter ended 31 March 2014.
Erez Alroy, Co-CEO of SHL, commented: "We have started the year on solid footing and have successfully accelerated our revenue growth. As a result, we are increasing our revenue outlook to over 30% growth for the year. We are confident this momentum in our business will continue for the remainder of 2014."
Business Review
SHL strengthened its position as a leading provider of telehealth services in Germany through the broadening of its institutional services portfolio and customer base. The Company recently appointed Mr. Martin Lehner as Managing Director of SHL Germany. Prior to joining SHL, he served as CEO and President of Amoena, a leading medical products company and as Executive Vice President at Elan Group.
In Israel, SHL's business showed another strong quarter with improved margins.
SHL is progressing in the commercial rollout of its telehealth services in India. And in the U.S., the Company has started developing channels for the smartheart™ platform.
In May, SHL received the China Food and Drug Administration ("CFDA") approval for the marketing of the smartheart™ in China, which closely follows the receipt of the Japanese PMDA Pre-Market Certification for marketing the smartheart™. The smartheart™ has already received marketing approvals in Europe and the U.S.
During the quarter, SHL launched a Level 1 American Depository Receipt (ADR) program in the United States. The ADRs are traded over-the-counter under the ticker symbol SMDCY. Each ADR represents one ordinary share in SHL Telemedicine. The Company's ordinary shares continue to trade on the SIX Swiss Exchange under the symbol "SHLTN."
Financial Highlights
During the first quarter 2014, revenues increased considerably primarily due to the growth in the Company's German business, following the acquisition of almeda. Even with the increased investments in geographical expansion, SHL's financial performance has improved significantly with improved gross and operating margins.
Revenues for the first quarter amounted to USD 10.6 million compared with USD 7.1 million in the first quarter of 2013. This represents an increase of 49.3% and 42.3% at constant exchange rates*.
Gross profit for the quarter amounted to USD 6.0 million (56.6% of revenues) compared with USD 3.7 million (52.1% of revenues) in the first quarter of 2013.
EBITDA for the quarter amounted to USD 2.0 million (18.9% of revenues) with EBIT for the quarter amounting to USD 0.4 million (3.8% of revenues) compared with EBITDA of USD 1.4 million (19.7% of revenues) and EBIT of USD 0.2 million (2.8% of revenues) in the first quarter of 2013.
Net income for the quarter amounted to USD 0.0 million (USD 0.00 per share) compared with a net loss of USD 0.3 million (USD 0.03 per share) in Q1 2013.
Cash flow for the quarter includes cash used in operations of USD 2.4 million. Excluding USD 5.2 million received from Philips in the first quarter of 2013, which was the last payment related to the Raytel transaction, cash used in operations during the quarter amounted to USD 1.3 million. The decrease in operating cash flow this quarter is the result of one–time working capital requirements at almeda, for which SHL received USD 2.9 million upfront at the end of 2013. Cash, cash equivalents and marketable securities amounted to USD 25.1 million at March 31, 2014.
Balance sheet included total assets at 31 March 2014 of USD 108.2 million with shareholders' equity amounting to USD 68.9 million (63.7% of balance sheet) compared to total assets of USD 108.5 million with shareholders' equity amounting to USD 68.9 million at 31 December 2013.
| SHL Telemedicine – consolidated key figures – Q1 2014 |
|||||
| in USD million (except per share amounts) |
Q1 2014 |
Q1 2013 |
% change |
Q1 2014 (constant currency) |
% change |
| Revenues |
10.6 |
7.1 |
49.3% |
10.1 |
42.3% |
| Gross profit |
6.0 |
3.7 |
62.2% |
5.7 |
54.1% |
| % |
56.6% |
52.1% |
56.4% |
||
| EBIT |
0.4 |
0.2 |
100.0% |
0.4 |
100.0% |
| % |
3.8% |
2.8% |
4.0% |
||
| EBITDA |
2.0 |
1.4 |
42.9% |
1.9 |
35.7% |
| % |
18.9% |
19.7% |
18.8% |
||
| Net income/(loss) |
0.0 |
(0.3) |
n.a. |
0.1 |
n.a. |
| Basic EPS/ LPS) |
0.00 |
(0.03) |
n.a. |
0.00 |
n.a. |
* Constant currency - In order to enable meaningful comparison between the results, they are also presented at constant currency exchange rates. These are calculated by translating the 2014 results using the average 2013 exchange rates instead of the current period exchange rates. Management believes that this presentation enables a more meaningful comparison between the periods due to the significant fluctuations in NIS/USD/EUR exchange rates.
| Revenues by geographic distribution – Q1 2014 |
||||
| Israel |
Germany |
|||
|
USD m |
% of total |
USD m |
% of total |
|
| Q1 2014 |
6.0 |
56.6% |
4.6 |
43.4% |
| Q1 2013 |
5.6 |
78.9% |
1.5 |
21.1% |
| Q1 2014 (constant currency exchange rates) |
5.7 |
56.4% |
4.4 |
43.6% |
| % change in constant currency |
1.8% |
193.3% |
||
Conference Call, today, 21 May, 4.00 pm CET
SHL will hold a conference call to discuss the Q1 results today at 4.00 pm CET. Erez Alroy, Co-CEO, and Eran Antebi, CFO, will host the call. Dial-in numbers are as follows:
From Europe +41 (0)58 310 50 00
From UK +44 (0)203 059 58 62
From US +1 (1)631 570 5613
From Israel Toll free: 1 80 921 44 27/Local: +972 3763 1173
Slides are available at
http://www.shl-telemedicine.com/investors-relations/financial-reports/
IR Agenda 2014
August 20, 2014 Q2 Results
November 19, 2014 Q3 Results
About SHL Telemedicine
SHL Telemedicine is engaged in developing and marketing personal telemedicine systems and the provision of medical call center services, with a focus on cardiovascular and related diseases, to end users and to the healthcare community. SHL Telemedicine offers its services and personal telemedicine devices to subscribers utilizing telephonic and Internet communication technology. The Company operates in Israel, Germany, India and the United States in one business segment, Telemedicine services. SHL is listed on the SIX Swiss Exchange (SHLTN, ISIN: IL0010855885, Security No.: 1128957) and has an ADR program listed over-the counter; Symbol: SMDCY. For more information please visit our web site at www.shl-telemedicine.com.
Contacts:
| Erez Alroy Co-CEO P:+972 3 5612212, |
Martin Meier-Pfister IRF Communications P: +41 43 244 81 40 |
Garth Russell / Elizabeth Barker KCSA Strategic Communications P: 212-896-1250 / 212-896-1203 |
Some of the information contained in this press release contains forward-looking statements. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward-looking statements as a result of various factors. SHL Telemedicine undertakes no obligation to publicly update or revise any forward-looking statements.
| Balance-Sheets (USD thousands) |
31.3.2014 |
31.3.2013 |
31.12.2013 |
| Unaudited |
Unaudited |
Audited |
|
| Cash and cash equivalents |
5,939 |
12,969 |
8,732 |
| Available-for-sale investments |
19,116 |
16,160 |
19,661 |
| Trade receivables |
14,134 |
11,965 |
10,479 |
| Inventory |
1,213 |
457 |
869 |
| Other current assets |
8,081 |
6,466 |
8,014 |
| Current Assets |
48,483 |
48,017 |
47,755 |
| Non-Current Assets |
11,372 |
12,437 |
11,632 |
| Property and equipment, net |
15,600 |
15,239 |
15,982 |
| Intangible assets, net |
32,739 |
23,092 |
33,146 |
| Total Assets |
108,194 |
98,785 |
108,515 |
| Credit from banks and current maturities |
11,156 |
8,522 |
10,477 |
| Deferred revenues |
590 |
110 |
330 |
| Trade payables |
1,925 |
1,214 |
1,433 |
| Provisions |
- |
1,067 |
- |
| Other accounts payable |
4,472 |
4,240 |
4,568 |
| Other liabilities |
2,007 |
- |
2,504 |
| Current liabilities |
20,150 |
15,153 |
19,312 |
| Long-term loans |
17,095 |
19,506 |
18,205 |
| Deferred revenues |
1,244 |
1,488 |
1,283 |
| Employee benefit liabilities |
834 |
932 |
805 |
| Non-current liabilities |
19,173 |
21,926 |
20,293 |
| Total liabilities |
39,323 |
37,079 |
39,605 |
| Equity: |
|||
| Issued capital |
31 |
31 |
31 |
| Additional paid-in capital |
95,069 |
94,488 |
95,014 |
| Treasury shares |
(2,753) |
(2,956) |
(2,774) |
| Foreign currency translation reserve |
6,130 |
3,002 |
6,366 |
| Capital reserve for available-for-sale investments and actuarial gains |
1,533 |
860 |
1,415 |
| Accumulated deficit |
(31,139) |
(33,719) |
(31,142) |
| Total equity |
68,871 |
61,706 |
68,910 |
| Total liabilities and equity |
108,194 |
98,785 |
108,515 |
| Statements of Income |
Q1 14 |
Q1 13 |
2013 |
| Unaudited |
Unaudited |
Audited |
|
| Revenues |
10,643 |
7,140 |
29,674 |
| Depreciation and amortization |
604 |
571 |
2,127 |
| Cost of revenues |
4,060 |
2,896 |
11,607 |
| Gross Profit |
5,979 |
3,673 |
15,940 |
| Research and development costs, net |
597 |
436 |
2,206 |
| Selling and marketing expenses |
2,732 |
2,059 |
8,787 |
| General and administrative expenses |
2,284 |
1,000 |
10,341 |
| Gain from almeda acquisition |
- |
- |
(8,492) |
| Operating income |
366 |
178 |
3,098 |
| Financial income |
193 |
333 |
1,072 |
| Financial expenses |
(244) |
(645) |
(2,631) |
| Income (loss) before taxes on income |
315 |
(134) |
1,539 |
| Taxes on income (tax benefit) |
312 |
211 |
(693) |
| Net income (loss) |
3 |
(345) |
2,232 |
| Basic and diluted income (loss) per share |
- |
(0.03) |
0.22 |
|
Other Comprehensive income not to be reclassified to profit or loss in subsequent periods: |
|||
| Foreign currency translation reserve |
(236) |
942 |
4,306 |
| Actuarial gain |
- |
- |
233 |
| (236) |
942 |
4,539 |
|
| Other Comprehensive income to be reclassified to profit or loss in subsequent periods |
|||
| Transfer to the statement of income in respect of available-for-sale investments |
(56) |
(32) |
146 |
| Gain on available-for-sale investments |
174 |
44 |
188 |
| 118 |
12 |
334 |
|
| Total comprehensive income (loss) |
(115) |
609 |
7,105 |
| Statements of Cash Flows (USD thousands) |
Q1 2014 |
Q1 2013 |
2013 |
| Unaudited |
Unaudited |
Audited |
|
| Net income (loss) |
3 |
(345) |
2,232 |
| Adjustment required to reconcile net income (loss) to net cash provided by (used in) operating activities |
(2,376) |
4,281 |
400 |
| Net Cash provided by (used in) Operating Activities |
(2,373) |
3,936 |
2,632 |
| Purchase of property and equipment |
(383) |
(603) |
(2,200) |
| Investment in intangible assets |
(398) |
(485) |
(1,878) |
| Acquisition of almeda |
- |
- |
2,920 |
| Proceeds from sale of property and equipment |
- |
- |
29 |
| Purchase of available-for-sale investments |
(1,926) |
(448) |
(8,511) |
| Proceeds from sale of available-for-sale investments |
2,444 |
749 |
6,402 |
| Net Cash used in Investing Activities |
(263) |
(787) |
(3,238) |
| Proceeds from exercise of options |
5 |
40 |
486 |
| Short-term bank credit, net |
714 |
(243) |
1,053 |
| Payment of long-term loans |
(869) |
(776) |
(3,267) |
| Treasury shares purchased |
- |
(36) |
(36) |
| Net Cash used in Financing Activities |
(150) |
(1,015) |
(1,764) |
| Effect of exchange rate changes on cash and cash equivalents |
(7) |
222 |
489 |
| Increase (decrease) in cash and cash equivalents |
(2,793) |
2,356 |
(1,881) |
| Cash and cash equivalents at the beginning of the period |
8,732 |
10,613 |
10,613 |
| Cash and Cash equivalents at the end of the period |
5,939 |
12,969 |
8,732 |
SOURCE SHL Telemedicine Ltd.
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