Corporate | 12 November 2004 08:58

Further income improvement despite retrograde revenues in the first nine months

Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– Further income improvement despite retrograde revenues in the first nine months ·Group result improved by Euro 1.6 million in comparison with the previous year ·Operating result in the third quarter plus Euro 2.1 million ·Group result positive in the third quarter at Euro 0.7 million, ·Build-up of the nursing care segment proceeds according to plan ·Operative Income improvement to date is expected be maintained for the rest of 2004 Frankfurt am Main, 12 November 2004 – MediClin AG, one of the large-scale private clinic operators reports a positive group result for the third quarter of 2004, and an Euro 1.6 million improvement in the group result during the first three quarters of 2004 as against the previous year. 9-month comparison: Although, at Euro 265.8 million (p.y.: Euro 273.0 million), revenues as of 30 September 2004 are down 2.6 percent or Euro 7.2 million from the previous year’s value, the group result improved and now amounts to minus Euro 8.7 million (p.y.; minus Euro 10.3 million). Cost of materials amounted to Euro 53.3 million and was Euro 3 million below the previous year’s value (p.y.; Euro 56.3 million). Personnel expenses declined by 3.3 percent from Euro 162.1 million to Euro 156.7 million. Other operating expenses were reduced from Euro 55.3 million in the previous year to Euro 54.1 million. Despite retrograde revenues, the operating result saw a Euro 0.9 million improvement to minus Euro 4.1 million (p.y.: minus Euro 5.0 million). Other than in the previous year, the item includes approximately Euro 1.7 million start-up costs concerning the nursing care segment so that the income improvement in the operative business is even more pronounced. Group results for the months from January to September amounted to minus Euro 8.7 million, an increase of Euro 1.6 million in comparison with the previous year’s value (p.y.: minus Euro 10.3 million). Earnings per share amount to minus Euro 0.27 (p.y.: minus Euro 0.33). The capital ratio was 24.6 percent as of 30 September 2004 (p.y.: 28.2 percent). Investments during the first nine months of financial year 2004 amounted to Euro 8.9 million; in addition, maintenance expenses came to Euro 8.1 million. Euro 1.3 million were invested in the setting up of the new nursing care segment. At minus Euro 6.6 million, the cash flow reported for the period January to September 2004 was, due to the results generated, better than in the previous year (p.y.: minus Euro 7.4m.). On a nine-month average, the number of full-time staff dropped to 5,292 (p.y.: 5,630). Quarterly comparison: At Euro 2.1 million, the operating result for the third quarter 2004 is clearly positive In the third quarter of 2004, group revenue including inventory changes of Euro 91.2 million (Q3 2003: Euro 93.0 million) was achieved which represents a 1.9 percent or Euro 1.8 million decline in comparison with the third quarter of 2003. Cost of materials saw a slight decline to Euro 17.8 million (Q3 2003: Euro 18.1 million) in comparison with the previous year’s quarter. At Euro 50.2 million (Q3 2003: Euro 52.6 million), HR costs were below the level of the comparable previous year’s period. In a quarter-on-quarter comparison, at Euro 5.7 million, depreciation during 2004 was up on the third quarter of 2003 (Q3 2003: Euro 5.1 million). For the first time, the item includes depreciation in the amount of just under Euro 0.6 million concerning the new nursing care segment. Other operating expenses rose by Euro 0.5 million to Euro 18.9 million, measured on a quarterly basis (Q3 2003: Euro 18.4 million). In effect, the third quarter of 2004 saw a positive operating result of Euro 2.1 million (Q3 2003: Euro 2.3 million). Group results for the third quarter were also positive at Euro 0.7 million and were up on the figures for the comparable previous year’s quarter (2003: Euro 0.3 million). Earnings per share came to Euro 0.02 (Q3 2003: Euro 0.01). Setting up Nursing Care proceeds according to plan Of the six planned nursing care facilities, to date five have been fully opened and one is partially open. Overall capacity (including the capacities not yet opened) is 325 individual care units in nursing homes; the current occupancy (status: 26 October 2004) is 140 residents; this represents 43 percent of total capacity. In addition, further nursing home contracts have been concluded. This means that, as before, occupancy development continues to be positive. Segments development – increase in profitability – sales decline in Post Acute During the past 9 months, the number of nursing care days and patients treated increased continually in the post-acute segment but did not achieve the previous year’s values. Sales revenues including inventory changes amounted to Euro 154.9 million (p.y.: Euro 163.8 million), a Euro 8.9 million decline in comparison with 2003 There was a significant drop in the number of nursing days in the acute segment; this indicates the trend to shorter stays. The number of patients treated remained almost constant from the second to the third quarter 2004. At Euro 110.1 million, accumulated revenues were up on the previous year’s level (p.y.: Euro 109.2 million). The new nursing care segment generated revenues of Euro 0.8 million. In the first nine months of 2004, the post acute segment result amounted to minus Euro 10.1 million (p.y.: minus Euro 9.2 million.). It was possible to increase the acute care segment result to Euro 6.7 million (p.y.: Euro 4.2 million). Start-up losses amounting to Euro 0.7 million were reported for the nursing care segment. Income development in a quarterly comparison with the previous year shows income of minus Euro 0.9 million (Q3 2003: minus Euro 0.6 million) for the post-acute segment, and income of Euro 3.2 million for the acute segment (Q3 2003: Euro 2.9 million). Financial year 2004 marked by continuous earnings improvement As expected, a positive operating result of just under Euro 2.1 million could be achieved in the third quarter of 2004; group results for the third quarter, too, were more than balanced at Euro 0.7 million. The MediClin Board expects that it will be possible to maintain the operative income improvement achieved to date for the year as a whole. Organisational changes The following changes which have already been reported have occurred after 30 September 2004. With effect from 31 October 2004 the former chairman of the Board, Rainer J. Räsch, left the company. His successor on the Board and new chairman from 1 November 2004 onwards is Dr. Ulrich Wandschneider. It has recently been decided to combine the administration of MediClin AG in Frankfurt with the administration of MediClin GmbH in Offenburg. The move to Offenburg is expected to take place on 31 March, 2005. MediClin AG’s registered head office continues to be in Frankfurt am Main. As from now, a detailed interim report for January to September 2004 is available at http://www.mediclin.de . For more information please contact: MediClin AG, Investor Relations,E-Mail: alexandra.muehr@mediclin.de MediClin GmbH, Public Relations,E-Mail: gabriele.eberle@mediclin.de end of message, (c)DGAP 12.11.2004 ——————————————————————————– WKN: 659510; ISIN: DE0006595101; Index: Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg und Stuttgart 120858 Nov 04