Full-Year Financial Information as of December 31, 2015
IFRS - Regulated Information - Not audited
Cegedim: 2015 revenues grew by 3.3%
- Group offerings shifting to the cloud
- BPO revenues up by double digits in Q4 2015
- Stable 2016 EBITDA expected
- Cegedim debt refinanced
Cegedim, an innovative technology and services company, generated
consolidated 2015 revenues from continuing activities of €509.9
million, up 0.7% like for like and 3.3% on a reported basis
compared with the same period in 2014.
On a like-for-like basis, the revenue growths at
the Health Insurance, HR and e-services and Cegelease divisions
allow the Group to offset the decline at the Healthcare
professionals division.
Robust demand among Cegedim's clients for the
Group's cloud-based solutions and new Business Process Outsourcing
(BPO) products and services fully validates the decision management
made in mid-2015 to speed up the shift to cloud-based software
offerings and rapidly roll out Cegedim's new BPO range. During this
transitional period, revenues and profitability have taken a hit
from the significant investments the Group has had to make in human
resources and innovation and from the switch to a new method of
cost and revenue recognition. Even so, the numerous innovations the
Group brought to market in 2015 helped it to post like-for-like
revenue growth of 0.7%.
In light of this rapid evolution, Cegedim is
adjusting its 2015 EBITDA estimate lower. The Group now expects
2015 EBITDA to be stable relative to 2014. In 2016, when the
largest part of the transition is to take place, the Group believes
it can achieve stability with respect to both revenues and
EBITDA.
Further out, Cegedim will enjoy greater customer
loyalty, closer client relationships, simpler operating processes,
more robust offerings and stronger geographic positions. The
changes now under way will also boost the share of recurring
revenues, improve sales growth and predictability, and enhance the
Group's profitability.
The definitive price for the sale of the CRM and
strategic data division to IMS Health came to €410.5 million,
entirely paid in 2015.
In January 2016, the Group took out a new
five-year revolving credit facility (RCF) of €200 million. This
facility, combined with the proceeds of the deal with IMS Health,
will allow the Group to redeem the entire 6.75% 2020 bond issue
before June 30, 2016. Following the redemption, the pro forma
financial charges (excluding the early bond redemption premium)
will decrease more than nine-fold.
At the same time, the Group will continue to
strengthen its businesses through targeted acquisitions. The
acquisition of Activus in the UK in late July reinforces the
software publishing activity for health and personal protection
insurance in English-speaking markets. In early October, the
acquisition of Nightingale's US assets provided a boost to the
cloud-based/SaaS EHR offering in the US.
- By division, Q4 revenue trends were as
follows:
In € millions |
Q4 2015 |
Q4 2014 |
Growth |
Reported |
Like for
like |
Health insurance, HR and
e-services |
69.1 |
64.2 |
+7.7% |
+3.6% |
Healthcare professionals |
39.1 |
40.8 |
(4.2)% |
(10.0)% |
Cegelease |
33.7 |
32.0 |
+5.4% |
+5.4% |
Activities not
allocated |
1.4 |
1.6 |
(8.2)% |
(8.2)% |
Group |
143.4 |
138.5 |
+3.5% |
(0.1)% |
In the fourth quarter of 2015, Cegedim generated
consolidated revenues of €143.4 million, up 3.5% on a reported
basis and virtually unchanged like for like compared with the same
period in 2014. Acquisitions and currency effects had positive
contributions of respectively 1.9% and 1.7%.
- By division, 2015 revenue trends were as
follows:
In € millions |
FY 2015 |
FY 2014 |
Growth |
Reported |
Like for
like |
Health insurance, HR and
e-services |
236.6 |
222.2 |
+6.5% |
+4.7% |
Healthcare professionals |
152.1 |
152.3 |
(0.1)% |
(6.1)% |
Cegelease |
117.0 |
115.1 |
+1.7% |
+1.7% |
Activities not
allocated |
4.2 |
3.9 |
+7.8% |
+7.8% |
Group |
509.9 |
493.5 |
+3.3% |
+0.7% |
In 2015, Cegedim generated consolidated revenues
from continuing activities of €509.9 million, up 3.3% on a reported
basis and 0.7% like for like compared with the same period in 2014.
Acquisitions and currency effects had positive contributions of
respectively 0.8% and 1.9%. Group revenues, including the
first-quarter revenues of activities sold on April 1, 2015, came to
€611.6 million.
Analysis of business trends by division
- Health insurance, HR and e-services
The division's 2015 revenues came to €236.6 million, up 6.5% on
a reported basis. The July 2015 acquisition of Activus in the UK
made a positive contribution of 1.7%. Currencies had virtually no
impact. Like-for-like revenues rose 4.7% over the period.
The Health insurance, HR and e-services division represented
46.4% of consolidated revenues from continuing activities, compared
with 45.0% over the same period a year earlier.
The division's Q4 2015 revenues came to €69.1 million, up 7.7%
on a reported basis. The July 2015 acquisition of Activus in the UK
made a positive contribution of 4.0%. Currencies had virtually no
impact. Like-for-like revenues rose 3.6% over the period.
The significant revenue growth in 2015, even though a portion of
Cegedim Insurance Solutions' offering was being switched over to
the cloud, was chiefly the result of:
- A strategy of innovative BPO offerings, which experienced
double-digit growth in 2015 and picked up speed in the final
quarter. This included Cegedim SRH's SaaS platform for human
resources management, which saw double-digit growth for the seventh
consecutive year in 2015. It also included BPO activities for
health insurance, with iGestion and operation of the GIS SaaS
platform for electronic data flows by Cegedim e-business, including
payment platforms.
- Double-digit growth in managing third-party payer flows, as
well as the acquisition of Activus, a publisher of health and
personal protection insurance software, which allowed Cegedim
Insurance Solutions to reach new markets (UK, US, Middle East,
APAC, etc.).
- Digital communications activities, which posted double-digit
growth in Q4 following the successful transition to digital. In
2016, this business will benefit from a new partnership with
Carrefour hypermarkets, among other things.
The division's 2015 revenues came to €152.1 million, virtually
stable on a reported basis. Currency effects made a positive
contribution of 6.0%. There was virtually no impact from
acquisitions or divestments. Like-for-like revenues fell 6.1% over
the period.
The Healthcare professionals division represented 29.8% of
consolidated revenues from continuing activities, compared with
30.9% over the same period a year earlier.
The division's Q4 2015 revenues came to €39.1 million, down 4.2%
on a reported basis. There were no acquisitions or divestments, and
currency effects made a positive contribution of 5.8%.
Like-for-like revenues fell 10.0% over the period.
This performance was chiefly the result of:
- A slowdown in the UK doctor computerization business owing to
the market's migration to cloud-based offerings. That said,
investments in developing a cloud offering should make it possible
to progressively restore sales momentum in 2016.
- The impact on revenues of rolling out the Revenue Cycle
Management (RCM) range in the US. This offering will let the Group
manage the process of obtaining reimbursement from multiple US
insurers on behalf of doctors. The ramp-up of business with clients
in the first half of 2016 will see Pulse Systems back on the path
to growth. Revenues from RCM offerings are recognized over the life
of the contract.
- With the US regulator's definitive adoption of the ICD-10
standard in October 2015, we foresee a progressive return of the
EHR range's sales momentum in 2016 after a period during which
doctors were hesitant to invest.
- Lastly, the acquisition of Nightingale's US assets in October
2015 will give the Group product offerings in both client-server
and cloud environments. Nevertheless, it is important to remember
that the switch from a perpetual license model to an SaaS model,
especially in the first years, has a negative impact on
revenues.
- Growth in the computerization of doctors, nurses and physical
therapists in France.
- Growth in the Claude Bernard medication database, whose sales
are also growing in the UK.
The successful launch in December 2015 of
Docavenue, an innovative online medical appointment scheduling
solution, has been a success. This platform gives patients direct
access to their healthcare professional's schedule for making
appointments. Once the appointment is confirmed, the patient is
notified by text message. This service also gives patients access
to information on illnesses and medications via the Claude Bernard
database. It meets a growing demand for vetted information on
treatments, symptoms, side-effects and contraindications both
before and after a patient's doctor visit. The Group plans to
expand the Docavenue offering to new countries in the coming
months.
The division's 2015 revenues came to €117.0
million, up 1.7% on a reported basis and like for like. There were
no currency effects and no acquisitions or divestments.
The Cegelease division represented 23.0% of
consolidated revenues from continuing activities, compared with
23.3% over the same period a year earlier.
The division's 2015 revenues came to €33.7
million, up 5.4% on a reported basis and like for like. There were
no currency effects and no acquisitions or divestments.
The increase in 2015 revenues stemmed mainly
from a different mix of self-financed and resold contracts in 2015
compared with 2014. Cegelease also benefited from its eyewear
partnership.
The division's 2015 revenues came to €4.2
million, up 7.8% on a reported basis and like for like. There were
no currency effects and no acquisitions or divestments.
The Activities not allocated division
represented 0.8% of consolidated revenues from continuing
activities, compared with 0.7% over the same period a year
earlier.
The division's Q4 2015 revenues came to €1.4
million, down 8.2% on a reported basis and like for like. There
were no currency effects and no acquisitions or divestments.
The trend in 2015 was attributable to billing
for services, including IT services provided to IMS Health.
Highlights
- Sale of the CRM and strategic data division to IMS
Health
On April 1, 2015, Cegedim announced the
completion of the sale of its CRM and strategic data division to
IMS Health. The definitive sale price came to €410.5 million and
was entirely paid in 2015.
- S&P has upgraded Cegedim's rating to BB- with
positive outlook
Following the announcement of the transaction, rating agency
Standard and Poor's upgraded Cegedim's rating to BB-, with positive
outlook, on April 13, 2015.
- Redemption of the 7.0% 2015 bond
Cegedim redeemed the full €62.6 million amount of the 7.0% 2015
bond remaining in circulation upon maturity on July 27, 2015 (ISIN:
FR0010925172).
- Cancellation of factoring agreements
In the first half of 2014, the Group cancelled factoring
agreements covering the divestment of client receivables, with no
possibility of recourse, for a total of €38.0 million. These
agreements amounted to €14.2 million at end-December 2014. The
agreements dealt chiefly with companies sold to IMS Health.
- Redemption of Cegedim Bonds
Between May 6, 2015, and December 31, 2015, Cegedim redeemed on
the market its 6.75% bond, maturing April 1, 2020, ISIN code
XS0906984272, for a total principal amount of €84,904,000. The
company is in the process of cancelling these bonds. As a result, a
total principal amount of €340,096,000.00 remains in
circulation.
- Acquisition in the UK of Activus
On July 20, 2015, Cegedim announced the acquisition of 100% of
Activus, one of the UK's leading suppliers of health and protection
insurance software. This deal gives Cegedim Health Insurance access
to new markets (UK, US, Middle East, APAC, Africa, etc.) and
strengthens its software offering for international clients.
Activus generated revenue of around €7 million in 2014.
This move is part of the Group's strategy of making bolt-on
acquisitions to expand its international positions. The deal was
financed with internal financing. It began contributing to
Cegedim's consolidated results starting from the acquisition
date.
- Favorable exchange rate movements
At end-December, movements in exchange rates were positive,
contributing €9.2 million to consolidated 2015 revenues from
continuing activities.
On September 24, 2015, the Paris Court of Appeal rejected
Cegedim's request and upheld the Competition Authority decision of
July 8, 2014. Because the fine was paid in full in September 2014,
this decision has no impact on Cegedim's accounts. Cegedim has
appealed this decision to the Court of Cassation.
- Acquisition of Nightingale's US assets
In early October 2015, Cegedim announced that its US subsidiary,
Pulse Systems, Inc., had acquired the US healthcare management
activities of Nightingale Informatix Corporation.
Pulse will now be able to offer its clients healthcare and EHR
management products in client-server and cloud formats.
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.
Significant post-closing transactions and
events
- Redemption of Cegedim Bonds
Since January 1, 2016, Cegedim redeemed on the market its 6.75%
bond, maturing April 1, 2020, ISIN code XS0906984272, for a total
principal amount of €24,682,000.00. The company is canceling these
bonds. As a result, a total principal amount of €315,414,000.00
remains in circulation as of January 28, 2016.
In January 2016, the Group took out a new five-year revolving
credit facility (RCF) of €200 million. This facility, combined with
the proceeds of the deal with IMS Health, will allow the Group to
redeem the entire 6.75% 2020 bond issue before June 30, 2016.
Following the redemption, the pro forma financial charges
(excluding the early bond redemption premium) will decrease more
than nine-fold.
Apart from the items cited above, to the best of the company's
knowledge, there were no post-closing events or changes that would
materially alter the Group's financial situation.
Outlook
Considering the rapid development of the Group's
BPO offering and the transition of its entire software range from a
perpetual license to an SaaS/cloud model, and the investments those
changes entail, Cegedim is adjusting its 2015 EBITDA growth
forecast downward from 5% to stable. For 2016, when the largest
part of the transition will take place, the Group believes it can
achieve stable revenues and EBITDA.
The Group does not expect any significant
acquisitions in 2016 and is not issuing any earnings guidance or
estimates.
Financial calendar
The Group will hold a conference call today, January
28, 2015, 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 2015
revenues will also be available on the website:
http://www.cegedim.com/finance/documentation/Pages/presentations.aspx |
Contact numbers: |
France: +33 1 70 77 09 44
US: +1 866 907 5928 UK and others: +44 (0)20 3367
9453 |
No access code required |
March 23,
2016 after market closing |
|
July 26,
2016 after market closing |
2015 Earnings |
|
Q2 2016 Revenue |
|
|
|
March 24,
2016 at 10am CET |
|
September 15,
2016 after market closing |
Analyst meeting (SFAF
meeting) |
|
2016 Half-year
Earnings |
|
|
|
May 26,
2016 after market closing |
|
September 16,
2016 at 10am CET |
Q1 2016 Earnings |
|
Analyst meeting (SFAF
meeting) |
|
|
|
|
|
November 29,
2016 after market closing |
|
|
Q3 2016 Earnings |
Additional Information
Complete financial information and a presentation on Cegedim's
2015 revenues are available on our website:
www.cegedim.com/finance.
This information is also available on Cegedim IR,
the Group's financial communications app for smartphones and iOS
and Android tablets. To download the app, visit:
http://www.cegedim.fr/finance/profil/Pages/CegedimIR.aspx.
Appendices
- Revenues by division and by quarter:
Year 2015
€
thousands |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Technologies |
54,004 |
57,546 |
55,912 |
69,103 |
236,564 |
Healthcare Professionals |
37,187 |
39,352 |
36,456 |
39,141 |
152,136 |
Cegelease |
29,293 |
26,842 |
27, 208 |
33,701 |
117,043 |
Reconciliation |
825 |
1,100 |
843 |
1,433 |
4,201 |
Total Cegedim |
121,309 |
124,839 |
120,419 |
143,378 |
509,944 |
Year 2014
€
thousands |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Technologies |
49,801 |
56,801 |
51,445 |
64,158 |
222,205 |
Healthcare Professionals |
36,906 |
37,617 |
36,931 |
40,841 |
152,294 |
Cegelease |
25,867 |
29,971 |
27,295 |
31,969 |
115,102 |
Reconciliation |
796 |
823 |
717 |
1,562 |
3,897 |
Total Cegedim |
113,370 |
125,211 |
116,388 |
138,529 |
493,498 |
- FY 2015 Revenues from continuing activities, breakdown
by geographic zone
|
France |
EMEA ex. France |
Americas |
APAC |
Technologies |
98.3% |
1.7% |
- |
- |
Healthcare Professionals |
47.5% |
44.5% |
8.0% |
- |
Cegelease |
100.0% |
- |
- |
- |
Reconciliation |
99.8% |
0.2% |
- |
- |
Total
Cegedim |
83.0% |
14.5% |
2.5% |
- |
- Revenue from continuing activities, breakdown by
currency as of Q1 2015
|
Euro |
USD |
GBP |
Others |
Technologies |
97.0% |
0.0% |
1.6% |
1.5% |
Healthcare Professionals |
50.5% |
8.6% |
39.7% |
1.2% |
Cegelease |
100.0% |
0.0% |
0.0% |
0.0% |
Reconciliation |
100.0% |
0.0% |
0.0% |
0.0% |
Total
Cegedim |
83.8% |
2.6% |
12.6% |
1.0% |
Activities not allocated: this 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. 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. Operating expenses: defined
as purchases used, external expenses and payroll costs. 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 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).
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.
|
|
|
About Cegedim: |
Founded in 1969, Cegedim is an innovative technology and
services company in the field of digital data flow management for
healthcare ecosystems and B2B, and a business software publisher
for healthcare and insurance professionals. Cegedim employs more
than 3,600 people in 11 countries and generated revenue of €510
million in 2015. Cegedim SA is listed in Paris (EURONEXT: CGM). To
learn more, please visit: www.cegedim.com And follow Cegedim on
Twitter: @CegedimGroup |
Contacts: |
Aude BALLEYDIER Cegedim
Media Relations Tel: +33 (0)1 49 09 68 81
aude.balleydier@cegedim.fr |
Jan Eryk UMIASTOWSKI
Cegedim Chief investment Officer Investor Relations Tel.: +33 (0)1
49 09 33 36 investor.relations@cegedim.fr |
Guillaume DE CHAMISSO
PRPA Agency Media Relations Tel: +33 (0)1 77 35 60 99
guillaume.dechamisso@prpa.fr |
|
CEGEDIM_REVENUES_4Q2015
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