Corporate | 14 May 2004 09:19

MediClin AG: Improved results despite sales decrease in the first quarter 2004

Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– MediClin AG: Improved results despite sales decrease in the first quarter 2004 – Revenues down 2.5 percent on the same quarter in the previous year – Group results 0.3 million Euro above previous year’s figure – A good start for new products and services Frankfurt, May 14, 2004 – In the first quarter 2004, the consolidated sales revenues including inventory changes of MediClin AG, one of the largest clinic operators in Germany, amounted to Euro 85.7 million, or 2.5 percent and approx. Euro 2.2 million less than in the comparable previous year’s quarter (PY: Euro 87.9 million). Due to the significant optimisation of cost structures the operative result improved by Euro 0.1 million to minus Euro 3.9 million (PY: minus Euro 4.0 million). The first quarter saw a consolidated loss of Euro 5.3 million (PY: Euro minus 5.6 million). Earnings per share are at Euro minus 0.17 (PY: Euro minus 0.18).The improved income situation is much more significant when taking into account that the first quarter of 2004 includes one-off costs of Euro 0.4 million incurred for the build-up of the nursing care segment. – A good start for new products and services The prevention programs which are oriented towards private patients have started according to plan and strengthen the clinics’ market position. Following the complete introduction of all PlusProgrammme’, MediClin expects revenues of approximately Euro 1 million as early as in the year of introduction.It is also very clear that the company has tapped into an area of great demand with the offer of nursing care. The first facility was opened in Tabarz on 19 April 2004, and already 14 seniors are cared for. Two further facilities were opened on 1 May and 6 May, respectively, here the first residents have arrived. As from 1 July 2004, all nursing care facilities will operate as planned. The negotiations with cost providers are proceeding very constructively. – Turnaround in 2004 – Compact04 will impact fully in the current year Group results improved in comparison with the previous year’s quarter despite the decline in sales revenues. Despite the overall less optimistic economic outlook, a seasonally weak first quarter in 2004 and start-up costs for setting up the nursing care segment, the Board of Management assumes that the implemented measures will impact positively on MediClin’s revenues and income development in 2004. – Cost basis in the first quarter perceptibly lower than in the comparable previous year’s quarter On a quarter to quarter comparison, cost of materials was scaled down above- proportionately by 5.3 percent to Euro 17.9 million through strict purchasing management (PY: Euro 18.9 million). The cost of materials ratio dropped from 21.5 percent to 20.9 percent of revenue. Personnel costs were reduced by 0.4 percent to Euro 53.5 million (PY: Euro 53.7 million). The personnel expense ratio is 62.4 percent compared to 61.1 percent in the first quarter of 2003. Depreciation expense was at Euro 4.9 million (PY: Euro 5.1 million). Other operating expenses were down by Euro 1.2 million, or 6.8 percent, from the comparable value for the previous year. Other operating income decreased by Euro 0.2 million to Euro 3.5 million (PY: Euro 3.7 million).The financial result improved by Euro 0.2 million to Euro minus 1.4 million (PY: Euro minus 1.6 million).In the first three months of the 2004 financial year, capital expenditure for our clinics amounted to Euro 2.7 million; in addition, Euro 2.4 million were spent on maintenance. The amount of Euro 0.5 million was invested in equipment for the Nursing Care segment. The cash flow for the period remained constant at the previous year’s level of Euro minus 6.3 million (PY: Euro minus 6.3 million).The number of full time employees was down to 5,298 on average (PY: 5,691). – Income improvement in the acute segment Revenues in the post acute segment were Euro 2.1 million below the comparable previous year’s period. Due to the measures taken, the segment result was held nearly constant at Euro minus 5.6 million (PY: Euro minus 5.4 million).Despite the considerable drop in occupancy, the acute segment earned Euro 36.0 million in revenues including inventory changes (PY: Euro 36.1 million), and thus remained nearly constant in comparison with the previous year. The segment result improved significantly to Euro 2.2 million (PY: Euro 1.4 million).The facilities in the nursing care segment will be put in operation gradually beginning in April 2004. Therefore, they did not have any earnings in the first quarter of 2004, only start-up costs are reported. The detailed interim report for the first tree months of financial year 2004 is available on our homepage. The General Annual Meeting will be held at Frankfurt am Main, on May 27, 2004. For further information: MediClin AG Investor Relations Alexandra Mühr Wilhelm-Leuschner-Straße 9-11 60329 Frankfurt am Main Phone +49 (0) 69 25 60 02-31 Fax +49 (0) 69 25 60 02-69 E-Mail: alexandra.muehr@mediclin.de MediClin GmbH Public Relations Gabriele Eberle Okenstraße 27 77652 Offenburg Phone +49 (0) 781 488-180 Fax +49 (0) 781 488-184 E-Mail: gabriele.eberle@mediclin.de http://www.mediclin.de end of message, (c)DGAP 14.05.2004 ——————————————————————————– WKN: 659510; ISIN: DE0006595101; Index: Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg und Stuttgart 140919 Mai 04