SHL Telemedicine Reports Second Quarter 2014 Financial Results Mittwoch, 20. August 2014 - 07:00
Press release (German press release on page 6)
SHL Telemedicine Reports Second Quarter 2014 Financial Results
- Revenue increased 39.2% to USD 10.3 million (USD 7.4 million in Q2 2013)
- Improvement in gross margins to 56.3% from 52.7%
- EBITDA of USD 1.7 million (16.5% of revenues) with EBIT of USD 0.2 million
- Net profit of USD 0.1 million
- Investing in expansion into new territories
- Confirmed 2014 revenue guidance of over 30% growth year-over-year
Tel Aviv/Zurich, 20 August 2014 - SHL Telemedicine Ltd. (SIX Swiss Exchange: SHLTN, OTCPK: SMDCY), a leading provider and developer of advanced personal telemedicine solutions, today announced results for the second quarter and six months ended 30 June 2014.
Erez Alroy, Co-CEO of SHL, commented: "We have seen good momentum in our businesses leading to significantly improved financial performance for the period, even with the increased investments in our expansion initiatives. Expansion into new markets beyond Israel and Germany, based on our global smartheart™ platform, remains a key priority for SHL’s growth strategy."
"In the US, we are progressing with our plans to launch our products and services, while in India we have made first steps in rolling out our telemedicine solution. In addition, since receiving approval in March to commence marketing activities in Japan, our smartheart™ platform has been accepted by over 20 leading Japanese clinics."
“We have gone through a lengthy process of receiving regulatory and marketing approvals for the smartheart™platform in several major territories. The global interest we are witnessing is very encouraging and we are excited by the opportunities it may bring"
Financial Highlights
During the second 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 results.
Revenues for the quarter grew by 39.2% (32.4% at constant exchange rates*) and amounted to USD 10.3 million compared to USD 7.4 million in Q2 2013. For the half year revenues grew by 44.1% (37.2% at constant exchange rates) and amounted to USD 20.9 million compared to USD 14.5 million in the first half of 2013.
Gross profitfor the quarter amounted to USD 5.8 million (56.3% of revenues) compared to USD 3.9 million (52.7% of revenues) in Q2 2013. Gross profit for the half year amounted to USD 11.7 million (56.0% of revenues) compared to a gross profit of USD 7.6 million (52.4% of revenues) in the first half of 2013.
EBITDA and EBIT for the half year and second quarter improved significantly over the adjusted EBITDA and EBIT of 2013, which included a one-time item lowering the general and administrative expenses.
For the quarter, EBITDA amounted to USD 1.7 million (16.5% of revenues) with EBIT at USD 0.2 million (1.9% of revenues) compared with an adjusted EBITDA and LBIT of USD 0.6 million and USD 0.7 million in the second quarter 2013
For the half year, EBITDA amounted to USD 3.7 million (17.7% of revenues) with an EBIT of USD 0.6 million (2.9% of revenues), compared with an adjusted EBITDA of USD 0.5 million (3.4% of revenues) and an LBIT of USD 1.9 million in the first half of 2013.
Unadjusted EBITDA and EBIT for the second quarter 2013 amounted to USD 1.7 million and USD 0.4 million, respectively with EBITDA and EBIT for the first half of 2013 amounting to USD 3.1 million and USD 0.6 million, respectively.
Net Income for the quarter and half year was USD 0.1 million, or USD 0.01 per share, compared to an adjusted net loss of USD 1.1 million, for the second quarter 2013 and USD 2.8 million for the first half of 2013. Unadjusted net loss for the second quarter and first half of 2013 amounted to USD 0.0 million (USD 0.00 per share) and USD 0.3 million (USD 0.03 per share), respectively.
Cash used in operations for the quarter and half year amounted to USD 0.9 million and USD 3.3 million, respectively. 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 and half year 2013 amounted to USD 0.8 million and USD 2 million. The decrease in operating cash flow 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 21.8 million at June 30, 2014.
Balance sheet included total assets at 30 June 2014 of USD 106.3 million with shareholders' equity amounting to USD 68.8 million (64.7% 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 – Q2 2014
in USD million (except per share amounts) | Q2 2014 | Q2 2013 | % change | Q2 2014 (constant currency) | % change |
Revenues | 10.3 | 7.4 | 39.2% | 9.8 | 32.4% |
Gross profit | 5.8 | 3.9 | 48.7% | 5.5 | 41.0% |
% | 56.3% | 52.7% | 56.1% | ||
EBIT/(LBIT) | 0.2 | 0.4 | (50.0%) | 0.2 | (50.0%) |
% | 1.9% | 5.4% | 2.0% | ||
EBITDA | 1.7 | 1.7 | 0.0% | 1.6 | (5.9%) |
% | 16.5% | 23.0% | 16.3% | ||
Net income (loss) | 0.1 | 0.0 | n.a. | 0.1 | n.a. |
Basic EPS (LPS) | 0.01 | 0.00 | n.a. | 0.01 | n.a. |
SHL Telemedicine – consolidated key figures - H1 2014
in USD million (except per share amounts) | H1 2014 | H1 2013 | % change | H1 2014 (constant currency) | % change |
Revenues | 20.9 | 14.5 | 44.1% | 19.9 | 37.2% |
Gross profit | 11.7 | 7.6 | 53.9% | 11.2 | 47.4% |
% | 56.0% | 52.4% | 56.3% | ||
EBIT/(LBIT) | 0.6 | 0.6 | 0.0% | 0.6 | 0.0% |
% | 2.9% | 4.1% | 3.0% | ||
EBITDA | 3.7 | 3.1 | 19.4% | 3.5 | 12.9% |
% | 17.7% | 21.4% | 17.5% | ||
Net income (loss) | 0.1 | (0.3) | n.a. | 0.1 | n.a. |
Basic EPS (LPS) | 0.01 | (0.03) | n.a. | 0.01 | 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 – Q2 14
Israel | Germany | |||
USD m | % of total | USD m | % of total | |
Q2 2014 | 6.1 | 59.2% | 4.2 | 40.8% |
Q2 2013 | 5.8 | 78.4% | 1.6 | 21.6% |
Q2 2014 (in constant currency) | 5.9 | 60.2% | 3.9 | 39.8% |
% change in constant currency | 1.7% | 143.8% | ||
Revenues by geographic distribution – H1 14
Israel | Germany | |||
USD m | % of total | USD m | % of total | |
H1 2014 | 12.2 | 58.4% | 8.7 | 41.6% |
H1 2013 | 11.4 | 78.6% | 3.1 | 21.4% |
H1 2014 (in constant currency) | 11.6 | 58.3% | 8.3 | 41.7% |
% change in constant currency | 1.8% | 167.7% | ||
Conference Call, today, August 20, 16:00 CET
SHL will hold a call to discuss the Q2 results today at 16:00 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 U.S.A. | Toll free: +1 866 291 41 66 |
From Israel | Toll free: 1 80 921 44 27 |
Local: +972 3763 1173 |
Slides are available at
http://www.shl-telemedicine.com/about-us/investorrelations/financial-reports-pres-2014/
IR Agenda 2014: | November 20, 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.
For further information please contact:
- Erez Alroy, Co-CEO, Phone: +972 3561 22 12, ereza@shl-telemedicine.com
- Martin Meier-Pfister, IRF Communications, Phone: +41 43 244 81 40, shl@irfcom.ch
- Garth Russell, KCSA Strategic Communications, Phone (U.S.A.): +1 212 896 1250, grussell@kcsa.com
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.
Medienmitteilung
SHL Telemedicine gibt Finanzergebnisse für das zweite Quartal und die Halbjahresresultate 2014 bekannt
- Umsatz um 39.2% erhöht auf USD 10.3 Mio. (USD 7.4 Mio. im Q2 2013)
- Verbesserte Bruttomarge von 52.7% auf 56.3%
- EBITDA im Quartal von USD 1.7 Mio. (16.5% des Umsatzes) mit EBIT von USD 0.2 Mio.
- Nettoumsatz im Quartal von USD 0.1 Mio.
- Investitionen für die Expansion in neue Gebiete
- Bestätigte Umsatzprognose 2014 von jährlich über 30% Wachstum
Tel Aviv/Zürich, 20. August 2014 - SHL Telemedicine Ltd. (SIX Swiss Exchange: SHLTN, OTCPK: SMDCY), ein führender Anbieter und Entwickler innovativer Telemedizin-Lösungen, vermeldet heute die Resultate für das 2. Quartal 2013.
Erez Alroy, Co-CEO of SHL, kommentiert: "Wir verzeichneten eine gute Dynamik in unserem Geschäft, die zu einer deutlichen Steigerung unserer Ergebnisse beigetragen hat, obwohl wir auch die Investitionen in unsere Expansionsstrategie erhöht haben. Die Expansion in neue Märkte ausserhalb von Israel und Deutschland, basierend auf unserer globalen Plattform smartheart™, bleibt ein Schlüsselkriterium in der SHL-Wachstumsstrategie.”
"In den USA haben wir unsere Pläne für Produkt- und Service-Lancierungen vorangetrieben, während wir in Indien begonnen haben, unsere Telemedizin-Lösung einzuführen. Nachdem wir im März die Bewilligung für Marketing-Aktivitäten in Japan erhalten hatten, wurde unsere Plattform smartheart™ inzwischen von über zwanzig führenden Kliniken akzeptiert.”
“Wir haben für unsere Plattform smartheart™ in einigen Gebieten den aufwändigen Prozess für die Zulassung wie auch die Marketingaktivitäten durchlaufen. Das weltweite Interesse, das wir erleben, ist sehr ermutigend und wir freuen uns auf die damit verbundenen Chancen.”
Finanzkennzahlen
Während dem zweiten Quartal 2014 nahm der Umsatz zu, was vor allem auf das Wachstum in Deutschland, nach der Akquisition von almeda, zurückzuführen ist. Obschon verstärkt in die geografische Expansion investiert wurde, haben sich das Brutto- wie auch das operative Ergebnis deutlich verbessert.
Der Umsatz steigerte sich im Quartal um 39.2% (32.4% bei konstanten Wechselkursen), was einem Anstieg auf USD 10.3 Mio., verglichen mit USD 7.4 Mio. im Q2 2013, entspricht. Im ersten halben Jahr wuchs der Umsatz um 44.1% (37.2% bei konstanten Wechselkursen), was USD 20.9 Mio. verglichen mit USD 14.5 Mio. im ersten Halbjahr 2013 entspricht.
Der Bruttogewinn für das Quartal betrug USD 5.8% (56.3% des Umsatzes), verglichen mit USD 3.9 Mio. (52.7% des Umsatzes) im Q2 2013. Der Bruttogewinn für das Halbjahr betrug USD 11.7 Mio. (56.0% des Umsatzes), verglichen zum Bruttogewinn von USD 7.6 Mio. (52.4% des Umsatzes) in der ersten Hälfte 2013.
Der EBITDA und EBIT für das Halbjahr und das zweite Quartal verbesserten sich deutlich gegenüber dem bereinigten EBITDA und EBIT von 2013, welche ein Einmalereignis einschlossen, das Personal- und Sachkosten senkte.
Der EBITDA für das Quartal betrug USD 1.7 Mio. (16.5% des Umsatzes) mit einem EBIT für das Quartal in der Höhe von USD 0.2 Mio. (1.9% des Umsatzes), gegenüber einem bereinigten EBITDA und LBIT von USD 0.6 Mio. und USD 0.7 Mio. im zweiten Quartal 2013.
Für das Halbjahr betrug der EBITDA USD 3.7 Mio. (17.7% des Umsatzes) mit einem EBIT von USD 0.6 Mio. (2.9% des Umsatzes), gegenüber einem bereinigten EBITDA von USD 0.5 Mio. (3.4% des Umsatzes) und einem LBIT von USD 1.9 Mio. im ersten Halbjahr 2013.
Der unbereinigte EBITDA und EBIT für das zweite Quartal 2013 betrug USD 1.7 Mio. und USD 0.4 Mio., der EBITDA und EBIT betrug im ersten Halbjahr 2013 USD 3.1 Mio. und USD 0.6 Mio.
Der Nettogewinn für das Quartal und Halbjahr betrug USD 0.1 Mio., oder USD 0.01 pro Aktie, verglichen mit einem bereinigten Nettoverlust von 1.1 Mio. im zweiten Quartal 2013 und USD 2.8 Mio. im ersten Halbjahr 2013. Der unbereinigte Nettoverlust für das zweite Quartal und das erste Halbjahr 2013 betrug USD 0.0 Mio. (USD 0.00 pro Aktie) und USD 0.3 Mio. (USD 0.03 pro Aktie).
Cashflow. Generierte liquide Mittel aus Geschäftstätigkeit für das Quartal und Halbjahr betrugen USD 0.9 Mio. und USD 3.3 Mio. Ausgenommen der USD 5.2 Mio. von Philips im ersten Quartal 2013, eine letzte Zahlung verbunden mit der Raytel-Transaktion, betrugen die liquiden Mittel im Halbjahr 2013 USD 0.8 Mio. und USD 2 Mio. Der Rückgang des operativen Cashflows ist das Ergebnis eines einmalig benötigten
Umlaufvermögens bei almeda, wofür SHL im Voraus Ende 2013 USD 2.9 Mio. erhielt. Liquide Mittel und marktgängige Wertpapiere betrugen USD 21.8 Mio. am 30. Juni 2014.
Bilanz. Die Aktiva betrugen am 30. Juni 2014 USD 106.3 Mio. mit einem Eigenkapital von USD 68.8 Mio. (64.7% der Bilanzsumme) gegenüber Aktiva von USD 108.5 Mio. und einem Eigenkapital von USD 68.9 Mio. per 31. Dezember 2013.
Balance-Sheets (USD thousands) | 30.6.2014 | 30.6.2013 | 31.12.2013 |
Unaudited | Unaudited | Audited | |
Cash and cash equivalents | 8,154 | 9,457 | 8,732 |
Restricted cash | 1,365 | - | - |
Short term investments | 12,301 | 18,091 | 19,661 |
Trade receivables | 14,764 | 12,495 | 10,479 |
Inventory | 1,628 | 475 | 869 |
Other current assets | 8,193 | 6,596 | 8,014 |
Current Assets | 46,405 | 47,114 | 47,755 |
Non-Current Assets | 11,403 | 12,322 | 11,632 |
Property and equipment, net | 15,700 | 15,125 | 15,982 |
Intangible assets, net | 32,793 | 23,292 | 33,146 |
Total Assets | 106,301 | 97,853 | 108,515 |
Credit from banks and current maturities | 10,643 | 9,117 | 10,477 |
Deferred revenues | 521 | 110 | 330 |
Trade payables | 1,969 | 1,016 | 1,433 |
Other accounts payable | 4,236 | 3,768 | 4,568 |
Other liabilities | 1,526 | - | 2,504 |
Current liabilities | 18,895 | 14,011 | 19,312 |
Long-term loans | 16,496 | 18,965 | 18,205 |
Deffered revenues | 1,218 | 1,272 | 1,283 |
Employee benefit liabilities | 875 | 985 | 805 |
Non-current liabilities | 18,589 | 21,222 | 20,293 |
Total liabilities | 37,484 | 35,233 | 39,605 |
Equity: | |||
Issued capital | 31 | 31 | 31 |
Additional paid-in capital | 95,037 | 94,692 | 95,014 |
Treasury shares | (2,579) | (2,956) | (2,774) |
Foreign currency translation reserve | 6,213 | 3,622 | 6,148 |
Capital reserve for available-for-sale investments and actuarial gains | 1,175 | 892 | 1,633 |
Accumulated deficit | (31,060) | (33,661) | (31,142) |
Total equity | 68,817 | 62,620 | 68,910 |
Total liabilities and equity | 106,301 | 97,853 | 108,515 |
Statements of Income | Q2 14 | Q2 13 | H1 14 | H1 13 | 2013 |
Unaudited | Unaudited | Unaudited | Unaudited | Audited | |
Revenues | 10,274 | 7,408 | 20,917 | 14,548 | 29,674 |
Depreciation and amortization | 562 | 551 | 1,166 | 1,122 | 2,127 |
Cost of revenues | 3,947 | 2,963 | 8,007 | 5,859 | 11,607 |
Gross Profit | 5,765 | 3,894 | 11,744 | 7,567 | 15,940 |
Research and development costs, net | 645 | 577 | 1,242 | 1,013 | 2,206 |
Selling and marketing expenses | 2,987 | 2,328 | 5,719 | 4,679 | 8,787 |
General and administrative expenses | 2,063 | 583 | 4,347 | 1,291 | 10,341 |
Gain from almeda acquisition and other income | (137) | - | (137) | - | (8,492) |
Operating income | 207 | 406 | 573 | 584 | 3,098 |
Financial income | 511 | 141 | 704 | 474 | 1,072 |
Financial expenses | (370) | (407) | (614) | (1,052) | (2,631) |
Income before taxes on income | 348 | 140 | 663 | 6 | 1,539 |
Taxes on income (Tax benefit) | 269 | 82 | 581 | 293 | (693) |
Net income (loss) | 79 | 58 | 82 | (287) | 2,232 |
Basic and diluted income (loss) per share | 0.01 | 0.00 | 0.01 | (0.03) | 0.22 |
Other Comprehensive income not to be reclassified to profit or loss in subsequent periods: | |||||
Foreign currency translation reserve | 301 | 620 | 65 | 1,562 | 4,088 |
Actuarial gain | - | - | - | - | 233 |
301 | 620 | 65 | 1,562 | 4,321 | |
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 | (489) | 13 | (545) | (19) | 146 |
Gain (loss) on available-for-sale investments | (87) | 19 | 87 | 63 | 406 |
(576) | 32 | (458) | 44 | 552 | |
Total comprehensive income (loss) | (196) | 710 | (311) | 1,319 | 7,105 |
Statements of Cash Flows (USD thousands) | Q2 2014 | Q2 2013 | H1 2014 | H1 2013 | 2013 |
Unaudited | Unaudited | Unaudited | Unaudited | Audited | |
Net income (loss) | 79 | 58 | 82 | (287) | 2,232 |
Adjustment required to reconcile net income (loss) to net cash provided by (used in) operating activities | (964) | (822) | (3,340) | 3,459 | 400 |
Net Cash provided by (used in) Operating Activities | (885) | (764) | (3,258) | 3,172 | 2,632 |
Purchase of property and equipment | (480) | (315) | (863) | (918) | (2,200) |
Investment in intangible assets | (380) | (501) | (778) | (986) | (1,878) |
Restricted cash | (1,367) | - | (1,367) | ||
Acquisition of almeda | - | - | - | - | 2,920 |
Proceeds from sale of property and equipment | - | 14 | - | 14 | 29 |
Purchase of short-term investments | (3,130) | (2,665) | (5,056) | (3,113) | (8,511) |
Proceeds from sale of short-term investments | 10,085 | 905 | 12,529 | 1,654 | 6,402 |
Net Cash provided by (used in) Investing Activities | 4,728 | (2,562) | 4,465 | (3,349) | (3,238) |
Proceeds from exercise of options | 60 | 101 | 65 | 141 | 486 |
Short-term bank credit, net | (714) | 461 | - | 218 | 1,053 |
Payment of long-term loans | (998) | (804) | (1,867) | (1,580) | (3,267) |
Treasury shares purchased | - | - | - | (36) | (36) |
Net Cash used in Financing Activities | (1,652) | (242) | (1,802) | (1,257) | (1,764) |
Effect of exchange rate changes on cash and cash equivalents | 24 | 56 | 17 | 278 | 489 |
Increase (decrease) in cash and cash equivalents | 2,215 | (3,512) | (578) | (1,156) | (1,881) |
Cash and cash equivalents at the beginning of the period | 5,939 | 12,969 | 8,732 | 10,613 | 10,613 |
Cash and Cash equivalents at the end of the period | 8,154 | 9,457 | 8,154 | 9,457 | 8,732 |
