Welcome!

News Feed Item

SHL Telemedicine Reports Second Quarter 2014 Financial Results

-- Revenue increased 39.2% to USD 10.3 million (USD 7.4 million in Q2 2013)

TEL AVIV, Israel and ZURICH, Aug. 20, 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 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 profit 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 profit for 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 profit for the second quarter and first half of 2013 amounted to USD 0.1 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

0.1

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, 4.00 pm CET / 10.00am ET 
SHL will hold a call to discuss the Q2 results today at 4.00 pm CET / 10.00am ET. 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 and our half year report are available at
http://www.shl-telemedicine.com/about-us/investorrelations/financial-reports-pres-2014/

IR Agenda 2014
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.

For further information please contact:

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)

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

Deferred 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
(USD thousands, except per share data)

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

 

SOURCE SHL Telemedicine Ltd.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, Cloud Expo and @ThingsExpo are two of the most important technology events of the year. Since its launch over eight years ago, Cloud Expo and @ThingsExpo have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, I provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading the...
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
"Storage is growing. All of IDC's estimates say that unstructured data is now 80% of the world's data. We provide storage systems that can actually deal with that scale of data - software-defined storage systems," stated Paul Turner, Chief Product and Marketing Officer at Cloudian, in this SYS-CON.tv interview at 17th Cloud Expo, held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, 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.
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Cloud Expo, Inc. has announced today that Aruna Ravichandran, vice president of DevOps Product and Solutions Marketing at CA Technologies, has been named co-conference chair of DevOps at Cloud Expo 2017. The @DevOpsSummit at Cloud Expo New York will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and @DevOpsSummit at Cloud Expo Silicon Valley will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Have you ever noticed how some IT people seem to lead successful, rewarding, and satisfying lives and careers, while others struggle? IT author and speaker Don Crawley uncovered the five principles that successful IT people use to build satisfying lives and careers and he shares them in this fast-paced, thought-provoking webinar. You'll learn the importance of striking a balance with technical skills and people skills, challenge your pre-existing ideas about IT customer service, and gain new in...
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develop...
SYS-CON Events announced today that Hitrons Solutions 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. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International 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 developm...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
DevOps and microservices are permeating software engineering teams broadly, whether these teams are in pure software shops but happen to run a business, such Uber and Airbnb, or in companies that rely heavily on software to run more traditional business, such as financial firms or high-end manufacturers. Microservices and DevOps have created software development and therefore business speed and agility benefits, but they have also created problems; specifically, they have created software securi...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business. Though, IoT is far more complex than most firms expected with a majority of IoT projects having failed. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, Chief IoTologist at Wipro, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology portfolios and business models to adopt and leverage IoT. He will delve in...