Corporate | 13 August 2004 08:52

MediClin AG: The consolidated result in the first half of 2004 improved by …

Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– The consolidated result in the first half of 2004 improved by Euro 1.2 million. -Implemented measures by Compact04 show success -Good start of Nursing Care segment -Economic and industry conditions are still not very favourable Frankfurt, 13. August 2004 – MediClin AG, one of the large German clinic operators improved its consolidated result by Euro 1.2 million in the first half of the financial year 2004 against previous year despite a sales decrease of Euro 5,4 million or 3 percent. All measures taken and projects implemented by Compact04 show an effect: our structures were streamlined, new products and services were developed and market and the Nursing Care segment was built up. All this resulted in an improved earning situation in the first half year of 2004 against previous half years figures despite an unchanged economic situation in Germany and unchanged conditions in the health care industry. Half-year comparison: consolidated result improved by Euro 1.2 million MediClin’s consolidated revenue, including inventory changes, amounted to Euro 174.6 million in the first half of 2004. This corresponds to a decrease of 3.0 percent or approx. Euro 5.4 million compared to the same period of the previous year (PY: Euro 180.0 million). The operating result improved by Euro 1.1 million due to respective cost savings to minus Euro 6.2 million (PY: minus Euro 7.3 million). The consolidated result for the first half of the year was minus Euro 9.4 million (PY: minus Euro 10.6 million). Return on sales was at minus 5.4 percent, following a return of minus 5.9 percent in the previous year. Earnings per share amounted to minus Euro 0.30 (PY: minus Euro 0.34). The equity ratio as at 30 June 2004 amounted to 24.4 percent (PY: 27.8 percent). In the first six months of the 2004 financial year investments totalling Euro 5.9 million were undertaken in our clinics; repairs and maintenance expenses amounted to an additional Euro 5.2 million. The setting up of the nursing care area segment required Euro 1.1 million. The cash flow for the financial period from January to June 2004 was down on the previous year at minus Euro 14.6 million (PY: minus Euro 9.3 million). On average, the number of full-time staff in the first half of the year decreased to 5,288 (PY: 5,671). Second quarter result 2004 significantly improved against previous years quarter MediClin generated Euro 88.9 million (PY: Euro 92.0 million) of revenue, including inventory changes, in the second quarter of 2004 and was thus 3.4 percent or Euro 3.1 million down from the revenue level reported in the second quarter of 2003. The operating result improved by Euro 1.0 million to minus Euro 2.3 million (Q2 2003: minus Euro 3.3 million). The Group’s quarterly result was minus Euro 4.1 million (Q2 2003: minus Euro 4.9 million). Earnings per share were at Euro 0.13 (Q2 2003: minus Euro 0.16). Further improvement in the second quarter 2004 compared with the first quarter 2004 Group revenue, including inventory changes, amounted to Euro 88.9 million in the second quarter of the 2004 financial year, rising by 3.8 percent or Euro 3.2 million in comparison with the first quarter. Cost of materials and personnel expenses were successfully lowered by about 1 percent despite the increase in revenues. The cost of materials ratio was 19.9 percent (Q1 2004: 20.9%) and the personnel expenses ratio was 59.6 percent (Q1 2004: 62.5%). The quarterly result of the Group amounted to minus Euro 4.1 million (Q1 2004: minus Euro 5.3 million). Hence, the second quarter return on sales of minus 4.6 percent improved perceptibly by 1.6 percentage points compared to the previous quarter (Q1 2004: minus 6.2 percent). Earnings per share in the second quarter of 2004 were at minus Euro 0.13 (Q1 2004: minus Euro 0.17). Development of the Segments – measures taking effect in the Post-Acute segment, in particular Particularly in the Post-Acute segment the measures taken proved to be particularly effective. Although revenue dropped by Euro 5.7 million or 5.3 percent in a half-year comparison, results decreased by only Euro 0.6 million. An analysis of both quarters of 2004 indicates a revenue increase of Euro 2.8 million and an accompanying improvement in results in the amount of Euro 2 million. In the Acute segment revenues are Euro 72.3 million and thus on previous years level. Results improved from Euro 1.3 million up to Euro 3.5 million if compared with previous years figure. Demand for nursing care surpasses expectations – expansion building up as planned Of the six planned nursing care facilities, to date four facilities have been completely opened and one is partially open. By the end of August 2004 all facilities will be fully operative. The total capacity will be 325 individual care units of which 216 are available for occupancy. After a few weeks’ operations the current occupancy (as at 5.8.2004) is 92 inhabitants, which corresponds to 43 percent of the currently available capacity. Twenty more agreements for the nursing care facility have already been concluded. Further contributing factors for the good start is the high quality of living accommodations (mainly single rooms, with a bath in every room) and the very good quality of nursing care, both of which have been evaluated very positively by the cost carriers. The nursing care facilities are set up in a separate building complex of the respective clinics. They are treated as lessees and use a part of the infrastructure and also receive medical and therapeutic services for a consideration. Operative break even expected in third quarter As a result of the development in the first half year of 2004, the Board of Management expects to reach operative break even in the third quarter of 2004. This expectation is supported by the monthly result for June 2004 and the current and foreseeable occupancy in the third quarter of 2004 The detailed report is available at www.mediclin.de. For more information please contact MediClin AG MediClin GmbH Investor Relations Public Relations Alexandra Mühr Gabriele Eberle Wilhelm-Leuschner-Straße 9-11 Okenstraße 27 60329 Frankfurt am Main 77652 Offenburg Phone +49 (0)69 25 60 02-31 Phone +49(0)781 4 88-180 Fax +49 (0)69 25 60 02-69 Fax +49(0)781 4 88-184 E-Mail: alexandra.muehr@mediclin.de E-Mail: gabriele.eberle@mediclin.de end of message, (c)DGAP 13.08.2004 ——————————————————————————– WKN: 659510; ISIN: DE0006595101; Index: Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg und Stuttgart 130852 Aug 04