|By Business Wire||
|April 29, 2014 01:49 PM EDT||
Cegedim, a global technology and services company specializing in the healthcare field, posted consolidated first quarter 2014 revenues of €204.1 million, down 4.1% on a reported basis and 2.8% like for like compared with the same period in 2013.
On a like-for-like basis, the near stability at the CRM and strategic data division and the decline at the Healthcare professionals division were partly offset by growth at the Insurance and services division.
Like last year, 38% of quarterly revenues were generated in the month of March.
The Group continues to prioritize innovation; this allows Cegedim to anticipate the transformational shifts in the health market and maintain leadership positions in all of the markets in which it operates. This focus on innovation has enabled the Group to launch a number of new products and services that strengthen the Group’s ability to maintain its level of activity in 2014.
With conditions still in flux, Cegedim continues to prioritize debt reduction and is still pursuing efforts to improve its operating leverage.
- The change in revenues per division for the 1st quarter is as follows:
|€ thousands||Q1 2014||Q1 2013||Q1 2014/2013 change|
|CRM and Strategic Data||98,558||103,590||(4.9%)||(1.6%)|
|Insurance and Services||38,012||37,192||+2.2%||+2.2%|
In the first quarter of 2014, like-for-like revenues fell 2.8% compared with the year-earlier period. The Webstar acquisition made a positive contribution of 0.1%, while currencies had a negative impact of 1.5%. The Reconciliation division’s contribution to Group revenues was not significant.
Analysis of business trends by operating division
- CRM and Strategic Data
In the first quarter of 2014, the division’s revenues came to €98.6 million, down 4.9% on a reported basis. Currencies had a negative impact of 3.3%. Like-for-like* revenues fell 1.6% over the period. There were no acquisitions or divestments.
The CRM and strategic data division represented 48% of the Group’s consolidated revenues, compared with 49% a year earlier.
Apart from the negative currency impact, the decline in revenues was chiefly the result of weaker CRM business in mature countries and the different seasonality of billing in certain activities unrelated to the pharmaceutical industry, which was partly offset by growth in emerging countries, Compliance activities, and products and services linked to the OneKey database. It should be noted that market research activities were stable over the period.
Cegedim continues to adjust its product range and its invoicing model to the fundamental shifts in the world pharmaceutical industry.
The favorable trend in the product mix will have a positive impact on the division’s first-quarter margin.
- Healthcare Professionals
In the first quarter of 2014, the division’s revenues amounted to €67.3 million, down 6.5% on a reported basis. The Webstar acquisition and currencies had positive impacts of respectively 0.3% and 0.4%. Like-for-like* revenues were down 7.2% over the period.
The Healthcare professionals division represented 33% of the Group’s consolidated revenues, compared with 34% in the year-earlier period.
The drop in revenues was chiefly attributable to weaker sales of pharmacist software in France as a result of pharmacists’ changing business model and hesitancy ahead of the upcoming release of a new line of software. Doctor computerization in the UK was also softer as a result of a demanding comparison caused by the exceptional level of 2013 revenues stemming from the NHS.
This revenue trend will have a negative impact on the division’s first-quarter margin.
- Insurance and Services
The division’s first-quarter 2014 revenues came to €38.0 million, up 2.2% both on a reported basis and like for like. Currencies had virtually no impact and there were no acquisitions or divestments.
The Insurance and services division represented 19% of the Group’s consolidated revenues, compared with 17% a year earlier.
The main growth drivers were continued development in managing third-party payment flows, numerous commercial successes at Cegedim SRH (HR solutions) and the roll-out of electronic invoicing solutions by Cegedim e-business.
1st quarter highlights
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
On April 7, 2014, Cegedim launched an additional bond offering of €100 million, upsized to €125 million on the issue date, of its 6.75% Senior Notes due 2020. Apart from the date and price of issuance (105.75% plus interest accrued since April 1, 2014), the new bonds are identical to the €300 million of 6.75% Senior Notes due in 2020 that the Group issued on March 20, 2013.
It should be noted that Cegedim was able to issue at 5.60% compared to 6.75% one year earlier.
The proceeds from the offering were used, among other things, to finance the redemption of €105,950,000 of outstanding bonds due 2015 (at a price of 108.102%), pay the premium and any related fees, and repay the bank overdraft facilities.
As a result, the Group’s current debt structure is as follows:
- €62.6 million of 7.00% bonds due July 27, 2015;
- €425 million of 6.75% bonds due April 1, 2020;
- €80 million of revolving credit due June 10, 2016, undrawn as of March 31, 2014;
- Overdraft facilities.
When the operation was announced on April 7, 2014, rating agency Standard and Poor’s confirmed its B+ rating with a stable outlook for Cegedim and its two bonds.
On April 15, 2014, Cegedim completed the acquisition of French company SoCall, based in Sèvres. SoCall sets up and operates medical administration tasks and manned-line for practices of healthcare professionals. The company manages incoming patient calls, messages, scheduling and records of past consultations for around 50 practices. Financed by internal financing, these activities represent annual revenues of less than €0.3 million and will be part of the consolidation scope of Cegedim Group from Q2 2014.
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.
In a changing environment, Cegedim continues to prioritize debt reduction and is striving to improve its operational leverage.
For 2014, the Group expects at least stability in its revenues and operating margin.
The Group will hold a conference call on April 29th, 2014, 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 2014 Q1 Revenue will also be available on the website: http://www.cegedim.com/finance/documentation/Pages/presentations.aspx
France: +33 1 70 77 09 42
US : +1 866 907 5928
UK and others: +44 (0)20 3367 9457
No Access code required
May 27, 2014 (after the stock market closes)
- Q1 2014 Results announcement
July 29, 2014 (after the stock market closes)
- Q2 2014 Revenue announcement
September 18, 2014 (after the stock market closes)
- H1 2014 Results announcement
October 28, 2014 (after the stock market closes)
- Q3 2014 Revenue announcement
November 27, 2014 (after the stock market closes)
- Q3 2014 Results announcement
Complete financial information is available on our website: www.cegedim.com/finance.
A presentation of Cegedim FY 2013 revenues is also available on the website.
Starting now, you are able to download Cegedim IR, a mobile app from Cegedim’s financial communications team for use on IOS and Android smartphones and tablets.
Cegedim IR will keep users abreast of Cegedim financial news. It will also let them search for information of interest to investors and journalists, and configure which updates to receive.
Browse through the investor calendar, share price data, quarterly and annual reports, financial press releases, financial presentations, company overview, videos, and industry news, and add events to your calendar and contact info to your directory. The app is updated at the same time as our website.
- Revenues by division and by quarter#:
# Figures rounded to the nearest unit.
* at constant scope and exchange rates
|CRM and Strategic Data||98,558||98,558|
|Insurance and Services||38,012||38,012|
|CRM and Strategic Data||103,590||103,590|
|Insurance and Services||37,192||37,192|
- By division and geographic zone, the distribution of revenues for the 1st quarter of 2014 is as follows:
|France||EMEA ex. France||Americas||APAC|
|CRM and Strategic Data||32.0%||37.2%||22.5%||8.3%|
|Insurance and Services||99.6%||0.4%||-||-|
- By division and currency, the distribution of revenues for the 1st quarter of 2013 is as follows:
|CRM and Strategic Data||50.9%||18.8%||5.2%||25.1%|
|Insurance and Services||99.6%||-||-||0.4%|
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.
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 the 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). The 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.
Reconciliation: 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. The support activities are invoiced to the client subsidiaries at market prices and notably include bookkeeping, human resources and cash management, legal assistance and marketing. The parent company activities are not billable and notably include managing Group strategy, producing consolidated information and financial communications. The Reconciliation division’s activities are performed chiefly by the parent company, Cegedim SA, which also carries out certain operational activities, the most important of which is CRM. Previously, Reconciliation division activities had been housed within the division to which Cegedim SA’s principal operational activity belongs: CRM and strategic data. The new distinction will help to clarify the impact that this unit has on the Group’s accounts.
|About Cegedim :||
Founded in 1969, Cegedim is a global technology and services company specializing in the healthcare field. Cegedim supplies services, technological tools, specialized software, data flow management services and databases. Its offerings are targeted notably at healthcare industries, life sciences companies, healthcare professionals and insurance companies. The world leader in life sciences CRM, Cegedim is also one of the leading suppliers of strategic healthcare industry data. Cegedim employs 8,000 people in more than 80 countries and generated revenue of €902 million in 2013. Cegedim SA is listed in Paris (EURONEXT: CGM).
To learn more, please visit: www.cegedim.com
And follow Cegedim on Twitter: @CegedimGroup
SYS-CON Events announced today that StarNet Communications will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
Aug. 28, 2016 12:15 PM EDT Reads: 813
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
Aug. 28, 2016 11:45 AM EDT Reads: 635
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Aug. 28, 2016 11:30 AM EDT Reads: 1,937
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Aug. 28, 2016 11:00 AM EDT Reads: 3,110
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Aug. 28, 2016 11:00 AM EDT Reads: 658
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Aug. 28, 2016 10:45 AM EDT Reads: 812
As the world moves toward more DevOps and Microservices, application deployment to the cloud ought to become a lot simpler. The Microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. Serverless computing is revolutionizing computing. In his session at 19th Cloud Expo, Raghav...
Aug. 28, 2016 10:30 AM EDT Reads: 866
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Aug. 28, 2016 10:30 AM EDT Reads: 4,016
Enterprises have forever faced challenges surrounding the sharing of their intellectual property. Emerging cloud adoption has made it more compelling for enterprises to digitize their content, making them available over a wide variety of devices across the Internet. In his session at 19th Cloud Expo, Santosh Ahuja, Director of Architecture at Impiger Technologies, will introduce various mechanisms provided by cloud service providers today to manage and share digital content in a secure manner....
Aug. 28, 2016 09:30 AM EDT Reads: 759
StarNet Communications Corp has announced the addition of three Secure Remote Desktop modules to its flagship X-Win32 PC X server. The new modules enable X-Win32 to safely tunnel the remote desktops from Linux and Unix servers to the user’s PC over encrypted SSH. Traditionally, users of PC X servers deploy the XDMCP protocol to display remote desktop environments such as the Gnome and KDE desktops on Linux servers and the CDE environment on Solaris Unix machines. XDMCP is used primarily on comp...
Aug. 28, 2016 09:30 AM EDT Reads: 703
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, wil...
Aug. 28, 2016 07:30 AM EDT Reads: 776
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Aug. 28, 2016 07:00 AM EDT Reads: 2,402
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
Aug. 28, 2016 03:30 AM EDT Reads: 2,364
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
Aug. 28, 2016 02:00 AM EDT Reads: 1,783
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
Aug. 28, 2016 01:45 AM EDT Reads: 2,164