TMCnet News

SHL Telemedicine Reports Fourth Quarter and Fiscal Year 2014 Financial Results
[March 25, 2015]

SHL Telemedicine Reports Fourth Quarter and Fiscal Year 2014 Financial Results


TEL AVIV, Israel and ZURICH, March 25, 2015 /PRNewswire/ -- 

Continued progress towards further growth:

  • Acquisition of GPH strengthens German market leadership – leading to strong growth with enhanced profitability, already in 2015
  • Signed first international distribution agreement for smartheart
  • Expecting additional agreements in the U.S and APAC

Financial Highlights for the year:

  • Revenues for 2014 of USD 40.0 million, up 34.7% from USD 29.7 million in 2013
  • EBITDA for the year of USD 7.4 million (18.5% of revenues)
  • EBIT for the year of USD 1.3 million (3.3% of revenues)
  • Net profit for the year of USD 0.8 million (2.0% of revenues)
  • Expecting top line growth in constant currency of more than 20% in 2015

SHL Telemedicine Ltd. (SIX Swiss Exchange: SHLTN OTCPK: SMDCY), a leading provider and developer of advanced personal telemedicine solutions, today announced results for the fourth quarter and fiscal year 2014.

Business Review

Germany
In Germany, SHL continued to strengthen its position as the leading provider of telehealth services and has successfully integrated almeda which was acquired in late 2013.

Earlier this month, SHL acquired GPH (Gesellschaft fur Patientenhilfe) based in Munich from Alere, Inc. GPH's nationwide German telemedicine program Cordiva currently cares for about 10,000 chronic heart failure patients in daily regular care. GPH has AOK Bayern and AOK North East amongst its major clients.

The acquisition represents a natural fit to SHL's German business and is expected to contribute annual revenues of USD 9.0 to 10.0 million and be accretive, already in 2015; consequently, it is anticipated to provide overall enhanced profitability to the combined German operations.

Israel
2014 was another strong year for SHL's Israeli business, with improved margins, profitability and cash flow. SHL's loyal subscriber base continues to show high satisfaction rates from the personal consumer services and health insurers continue to increase adoption of SHL's service offerings among chronically ill patients.  

U.S and APAC
As part of SHL's global expansion strategy, the company has been gradually increasing its investments in the U.S. and APAC markets. As a first step, SHL has been securing relationships with partners within the medical ecosystem in order to establish product and service credibility. As such, the smartheart is being used already by approximately 100 clinics and hospitals in the U.S. and APAC. In tandem, SHL has been working on establishing sales channels, both to directly to consumers and to medical professionals, through customary distribution channels and partners.  The first distribution agreement was signed with USCI in Japan, and SHL expects additional agreements with other partners to be finalized in the coming months.

Financial Highlights
Over the course of 2014, revenues increased considerably year over year due primarily to the growth in SHL's German business. Even with the increased investments in geographical expansion, SHL's financial performance has strengthened, with improved gross profit and operating results.

In Q4 2014 the USD significantly appreciated against the Israeli Shekel (NIS) and the EUR, accelerating a trend observed since August 2014. Thus, SHL's revenues, which are presented in USD, are lower than in the previous quarters, with a corresponding decline in expenses – a purely translational effect.

Revenues for the quarter grew by 16.9% (28.6% at constant exchange rates*) and amounted to USD 9.0 million (USD 9.9 million in constant currency) compared to USD 7.7 million in Q4 2013.

For the entire year revenues grew by 34.7% (34.0% at constant exchange rates*) and amounted to USD 40.0 million compared to USD 29.7 million in 2013.

Gross profit for the quarter amounted to USD 4.9 million (54.4% of revenues) compared to USD 4.4 million (57.1% of revenues) in Q4 2013. In 2014, gross profit amounted to USD 22.3 million (55.8% of revenues) compared to a gross profit of USD 15.9 million (53.5% of revenues) in 2013.

EBITDA for the quarter amounted to USD 2.0 million (22.2% of revenues) with EBIT for the quarter amounting to USD 0.6 million, compared with an EBITDA of USD 4.3 million and EBIT of USD 3.1 million in Q4 2013. In 2014, EBITDA amounted to USD 7.4 million (18.5% of revenues) with an EBIT of USD 1.3 million (3.3% of revenues), compared with an EBITDA of USD 8.1 million and an EBIT of USD 3.1 million in 2013.

In 2013 the company recorded a gain of USD 8.5 million from the acquisition of German almeda, thus excluding such one-time gain, operating profit improved significantly.

Net Profit for the quarter was USD 0.5 million (USD 0.05 per share) compared to a net income of USD 3.7 million (USD 0.36 per share) for the fourth quarter of 2013. For 2014, net income amounted to USD 0.8 million (USD 0.08 per share) compared to a net income of USD 2.2 million (USD 0.22 per share) in 2013. Again, excluding such one-time gain recorded in 2013 net profit for the quarter and for the year has improved considerably.

Cash Flow from operations in the quarter was USD 0.1 million compared to a negative operating cash flow of USD 0.1 million in Q4 2013. Cash used in operations during the year amounted to USD 3.1 million compared to USD 2.6 million, excluding one-time payment of USD 5.2 million received in the first quarter of 2013. Cash, cash equivalents and marketable securities amounted to USD 17.7 million at December 31, 2014.

Balance sheet. SHL's assets at 31 December 2014 totalled USD 92.1 million with shareholders' equity amounting to USD 61.4 million (66.7% of balance sheet) compared to assets of USD 107.8 million with shareholders' equity amounting to USD 68.9 million at 31 December 2013. The decrease in the reported shareholders' equity and total assets is mainly attributable to the appreciation of the USD against the NIS resulting in a corresponding decrease of the foreign currency translation reserve in the equity section in the amount of USD 7.7 million.

Outlook
SHL's management expects its growth strategy will result in continued expansion in 2015. Top line is foreseen to grow more than 20% year-over-year in constant currency.

SHL's annual report 2014 is available for download on
http://www.shl-telemedicine.com/about-us/investorrelations/financial-reports-pres-2015/

 





SHL Telemedicine – consolidated key figures – Q4 14

in USD million (except
per share amounts)

Q4 2014

Unaudited

Q4 2013

Unaudited

%
change

Q4 2014 in
constant
currency

%
change

Revenues

9.0

7.7

16.9%

9.9

28.6%

Gross profit

4.9

4.4

11.4%

5.4

22.7%

%

54.4%

57.1%


54.5%


EBIT

0.6

3.1

(80.6%)

0.5

(83.9%)

%

6.7%

40.3%


5.1%


EBITDA

2.0

4.3

(53.5%)

2.2

(48.8%)

%

22.2%

55.8%


22.2%


Net income

0.5

3.7

(86.5%)

0.5

(86.5%).


5.6%

48.1%


5.0%


Basic EPS

0.05

0.36

(86.1%)

0.04

(86.9%).


 

SHL Telemedicine – consolidated key figures – 2014

in USD million
(except per share amounts)

2014
Audited

2013
Audited

%
change

2014 in
constant
currency

%
change

Revenues

40.0

29.7

34.7%

39.8

34.0%

Gross profit

22.3

15.9

40.3%

22.2

39.6%

%

55.8%

53.5%


55.8%


EBIT

1.3

3.1

(58.1%)

1.3

(58.1%)

%

3.3%

10.4%


3.2%


EBITDA

7.4

8.1

(8.6%)

7.3

(9.9%)

%

18.5%

27.3%


18.3%


Net income

0.8

2.2

(63.6%)

0.8

(63.6%)


2.0%

7.4%


2.0%


Basic EPS

0.08

0.22

(63.6%)

0.08

(63.6%)


* Constant currency - In order to enable meaningful comparison between the 2014 and 2013 results, 2014 results are also presented at constant currency exchange rates. These are calculated by translating the 2014 results using the average 2013 exchange rates instead of the current period exchange rates. Management believes that this presentation enables a more meaningful comparison between the periods due to the significant fluctuations in NIS/USD/EUR exchange rates.

 

Revenues by geographic distribution - Q4 14


Israel

Germany

USD m

% of total

USD m

% of total

Q4 2014

5.4

60.0%

3.6

40.4%

Q4 2013

6.1

79.2%

1.6

20.8%

Q4 2014 (constant currency)

6.0

60.6%

3.9

39.4%

% change in constant currency

(1.6%)


143.8%


 

Revenues by geographic distribution - 2014


Israel

Germany

USD m

% of total

USD m

% of total

12M 2014

23.7

59.3%

16.3

40.7%

12M 2013

23.6

79.5%

6.1

20.5%

12M 2014 (constant currency)

23.4

58.8%

16.4

41.2%

% change in constant currency

(0.8%)


168.9%


 

Financial calendar 2015

March 25, 2015

Publication of annual report

May 20, 2015 

Q1 Results

August 19, 2015 

Q2 Results

November 18, 2015 

Q3 Results

 

About SHL Telemedicine
SHL Telemedicine is engaged in developing and marketing personal telemedicine systems and the provision of medical call center services, with a focus on cardiovascular and related diseases, to end users and to the healthcare community. SHL Telemedicine offers its services and personal telemedicine devices to subscribers utilizing telephonic and Internet communication technology. The Company operates in Israel, Germany, the United States and APAC in one business segment, Telemedicine services. SHL is listed on the SIX Swiss Exchange (SHLTN, ISIN: IL0010855885, Security No.: 1128957) and has an ADR program listed over-the counter; Symbol: OTCPK: SMDCY. For more information please visit our web site at http://www.shl-telemedicine.com.

Some of the information contained in this press release contains forward-looking statements. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward-looking statements as a result of various factors. SHL Telemedicine undertakes no obligation to publicly update or revise any forward-looking statements.

 

Consolidated Balance-Sheets (USD thousands)

31.12.2014

Audited

31.12.2013

Audited




Cash and cash equivalents

3,351

8,732

Short-term investments

14,316

19,661

Trade receivables

15,263

10,479

Inventory

2,483

869

Other current assets

4,726

7,274

Current Assets

40,139

47,015




Non-Current Assets

10,618

11,632




Property and equipment, net

12,653

15,982




Intangible Assets, net

28,717

33,146




Total Assets

92,127

107,775




Credit from banks and current maturities

10,244

10,477

Deferred revenues

66

330

Trade payables

983

1,433

Other accounts payable

4,701

4,568

Other liabilities

375

2,504

Current Liabilities

16,369

19,312




Long-term loans

12,931

18,205

Deferred revenues

673

543

Employee benefit liabilities

758

805

Non-current Liabilities

14,362

19,553




Total liabilities

30,731

38,865

Equity:



Issued capital

31

31

Additional paid-in capital

95,189

95,014

Treasury shares

(2,619)

(2,774)

Foreign currency translation reserve

(1,532)

6,148

Capital reserve for available-for-sale investments and
  remeasurement gains on defined benefit plans

640

1,633

Accumulated deficit

(30,313)

(31,142)

Total Equity

61,396

68,910

Total liabilities and Equity

92,127

107,775

 

Consolidated Statements of Comprehensive
Income  (
USD thousands, except per share data)

Q4 14

Unaudited

Q4 13

Unaudited

2014

Audited

2013

Audited






Revenues

9,048

7,733

39,976

29,674






Depreciation and amortization

559

439

2,344

2,127

Cost of revenues

3,548

2,892

15,368

11,607

Gross Profit

4,941

4,402

22,264

15,940






Research and development costs

610

616

2,492

2,206

Selling and marketing expenses

2,862

2,305

11,430

8,787

General and administrative expenses

920

6,823

7,193

10,341

Gain from almeda acquisition

-

(8,492)

(137)

(8,492)

Operating income

549

3,150

1,286

3,098






Financial income

862

342

2,376

956

Financial expenses

(814)

(790)

(1,809)

(2,515)






Income before taxes on income

597

2,702

1,853

1,539

Taxes on income (tax benefit)

108

(1,025)

1,024

(693)






Net income

489

3,727

829

2,232

Other Comprehensive income not to be
reclassified to profit or loss in subsequent
periods:





Remeasurement gains on defined benefit plans

33

233

33

233


33

233

33

233

Other Comprehensive income to be reclassified
to profit or loss in subsequent periods





Transfer to profit or loss in respect of available-
  for-sale investments

 

(296)

 

43

 

(1,075)

146

Gain on available-for-sale investments

32

291

49

406

Foreign currency translation reserve

(2,768)

972

(7,680)

4,088


(3,032)

1,306

(8,706)

4,640






Total comprehensive income (loss)

(2,510)

5,266

(7,844)

7,105






Basic and diluted earnings per share

0.05

0.36

0.08

0.22

 

Statements of Cash Flows (USD

thousands)

Q4 14

Unaudited

Q4 13

Unaudited

2014

Audited

2013

Audited






Net income

489

3,727

829

2,232

Adjustment required to reconcile net income
  to net cash provided by (used in) operating
  activities

 

 

(429)

 

 

(3,842)

(3,946)

400

Net cash provided by (used in) Operating
  Activities

60

(115)

(3,117)

2,632






Purchase of property and equipment

(463)

(852)

(2,268)

(2,200)

Investment in intangible assets

(867)

(376)

(2,011)

(1,878)

Acquisition of almeda

-

2,920

1,149

2,920

Proceeds from sale of property and
  equipment

 

65

 

5

65

29

Purchase of short-term investments

(406)

(3,251)

(13,943)

(8,511)

Proceeds from sale of short-term investments

 

589

 

1,907

17,731

6,402

Net cash provided by (used in) Investing
  Activities

(1,082)

353

723

(3,238)






Proceeds from exercise of options

(62)

321

8

486

Short-term bank credit, net

1,269

9

840

1,053

Payment of long-term loans

(672)

(856)

(3,451)

(3,267)

Treasury shares purchased

-

-

-

(36)

Net cash provided by (used in) Financing
  Activities

535

(526)

(2,603)

(1,764)

Exchange differences on balances of cash and
  cash equivalents

 

(150)

 

(1)

(384)

489

Decrease in cash and cash equivalents

(637)

(289)

(5,381)

(1,881)

Cash and cash equivalents at the beginning of
  the year

3,988

9,021

8,732

10,613

Cash and cash equivalents at the beginning of
  the year

3,351

8,732

3,351

8,732

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/shl-telemedicine-reports-fourth-quarter-and-fiscal-year-2014-financial-results-300055517.html

SOURCE SHL Telemedicine Ltd.


[ Back To TMCnet.com's Homepage ]