Corporate | 9 November 2004 06:10

RHÖN-KLINIKUM AG -Acceptable third quarter result

Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– RHÖN-KLINIKUM AG, Bad Neustadt / Saale – Structural changes in hospitals sector – margins squeezed as growth accelerates – Acceptable third quarter result – Forecast for EUR 76 million in 2004 maintained Bad Neustadt a. d. Saale, 09.11.04 —– With its interim report for the nine months ended 30 September 2004 submitted today, RHÖN-KLINIKUM Group reports an acceptable quarterly result, contrasting with insecurity in the healthcare sector struggling with new legislation as well as declining prices and earnings. For the first nine months of 2004 revenues reached EUR 774 million (previous year: EUR 710 million / + 9%). Looking at the third quarter, consolidated revenues rose to EUR 275.4 million or 12.8% versus the same period in 2003 (previous year EUR 244.2 million). In the first nine months of 2004 the Group posted net consolidated profit of EUR 56.5 million (previous year: EUR 55.1 million / + 2.5%). Third quarter net consolidated profit rose year-on-year to EUR 19.4 million (previous year: EUR 18.6 million / + 4.3%). This corresponds to earnings per share of EUR 2.18 (previous year: EUR 2.13 / + 2.35%) for the first nine months of 2004 and EUR 0.75 (previous year: EUR 0.72 / + 4.2%) for the third quarter of 2004. Operating earnings (EBIT / earnings before interest and earnings tax) stood at EUR 91.6 million in the first nine months of 2004. This was still below the year-earlier level of EUR 94.2 million, but the third quarter 2004 result of EUR 31.6 million (previous year: EUR 31.5 million) reveals a rising trend. The Group’s sound financial structures offer the basis to exploit current growth opportunities. We have been able to finance the acquisition-induced rise in net investments (after deduction of investment financed from public grants) to EUR 112.9 million (previous year: EUR 52 million) largely from our operating cash flow of EUR 99.3 million (previous year: EUR 95.4 million / +4%). Maturity patterns for assets and capital are virtually unchanged. Earnings before depreciation/amortisation, interest and earnings tax (EBITDA) for the first nine months are at EUR 131.8 million (previous year: EUR 130.0 million / + 1.4%) and for the third quarter of 2004 at EUR 45.1 million (previous year: EUR 43.4 million / + 3.9%). “In view of these results and our redoubled efforts, we maintain our earnings target of EUR 76 million. In this short-term goal, though, we will not lose sight of acquisition opportunities (triggered precisely by system pressures) and the resulting strategic position”, explained Eugen Münch, chairman of the Board of Management of RHÖN-KLINIKUM AG. In the period January through September 2004, our hospitals treated 448,600 patients (previous year: 390,861/ +14.8%) on an inpatient, day-case and outpatient basis. For years a general trend has been observed in case revenue, which has gathered pace with the shift from inpatient to outpatient cases: average per-case revenue has fallen from EUR 1,816 to EUR 1,726. Growth is evidenced by the newly acquired hospitals in the third quarter, Städtisches Krankenhaus Eisenhüttenstadt, Städtisches Krankenhaus Pforzheim and the two hospitals of the county of Rhön-Grabfeld (in Bad Neustadt and Mellrichstadt), raising the total number beds approved by state hospital requirement plans from 8,609 at 30 June 2004 to 9,815 at 30 September 2004. Similarly, the number of employees increased from 13,408 at 31 December 2003 to 16,057 at 30 September 2004. end of message, (c)DGAP 09.11.2004 ——————————————————————————– WKN: 704233; ISIN: DE0007042335; Index: MDAX Listed: Amtlicher Markt in Frankfurt (Prime Standard) und München; Freiverkehr in Berlin-Bremen, Düsseldorf, Hamburg und Stuttgart 090610 Nov 04