Unilabs reports third quarter results 2006/2007 and confirms full
year guidance
* Q3 Revenues: CHF 79.1 million, up 10.9%
* Q3 EBITDA: CHF 10.9 million, up 28.2%
* Q3 Net income: CHF 2.6 million, up 267%
For the first nine months of the fiscal year 2006/2007, which ended
on February 28, 2007, Unilabs (SWX: ULB) achieved revenues of
CHF 226.3 million, an increase of 7.2% compared to the same period of
the previous financial year. At constant exchange rates, revenues
grew by 5.7%. Earnings before interest, taxes, depreciation and
amortisation (EBITDA) increased by 6.2% to reach CHF 32.7 million or
14.5% of revenues while operating profit decreased slightly by 0.4%
to reach CHF 21.8 million. This result reflects largely the impact of
the Swiss Federal Council to impose a 10% linear reduction in the
reimbursement prices for tests, beginning 1 January 2006. Net income
attributable to the equity holders of the parent increased by 41.0%
to CHF 9.9 million compared to CHF 7.1 million in previous year when
a one time non cash provision of CHF 4.7 million had been recorded in
the third quarter 2005/2006.
Third quarter revenues were CHF 79.1million, up 10.9% compared with
CHF 71.4 million in the same quarter a year earlier. EBITDA reached
CHF 10.9 million, or 13.8% of revenues compared with 11.9% in the
previous year. Net income reached CHF 2.6 million.
As a result of the 10% linear reduction in the reimbursement prices
for tests which took effect on January 1, 2006, nine months revenues
in Switzerland, Unilabs' largest market, decreased by 5.8% to CHF
129.3 million versus CHF 137.2 million the previous year. The
cost-cutting measures implemented by Unilabs partially compensated
this negative impact. Excluding the impact of the 10% price cut,
Swiss revenues would have increased by 1.3% in the third quarter
versus a recorded decrease of 2.0% to CHF 44.2 million.
Nine months revenues grew by 21.6% in Spain to CHF 33.9 million and
by 5.0% in France to CHF 36.2 million. As a result of its successful
entry in the Portuguese market in the previous fiscal year, Unilabs
posted nine months revenues of CHF 18.5 million in this country, a
very significant increase due to the several acquisitions in this
country during the last nine months. Through select acquisitions,
Unilabs intends to pursue its external growth strategy, both in
Switzerland as in the rest of Europe.
For the first nine months 2006/2007, operating profit (EBIT) reached
CHF 21.8 million, or 9.7% of revenues, compared with CHF 21.9
million, or 10.4% of revenues in the previous fiscal year, a decrease
of 0.4%.
In connection with a swap contract, which purports to protect the
company against an increase in interest rates, in accordance with
accounting rule IAS 39, an amount of CHF 0.5 million remains, as of
February 28, 2007, out of the previously-established provisions. As
indicated previously, such balance will be written back to profit at
the latest upon termination of the contract on April 1, 2007.
Earnings before taxes increased by 14.1% to CHF 16.2 million,
compared with CHF 14.2 million in the comparable prior year period,
when a one time non cash provision of CHF 4.7 million had been
recorded in the third quarter 2005/2006.
Income tax provisions were CHF 4.5 million as compared to CHF 4.4
million. Minority interests in net income decreased to 1.7 compared
to CHF 2.7 million a year ago. Net income attributable to the equity
holders of the parent amounted to CHF 9.9 million (or CHF 1.03 per
bearer share), compared with CHF 7.1 million (or CHF 0.72 per bearer
share) in the previous financial year.
During the nine months ended February 28, 2007, Unilabs:
* Completed four acquisitions in Portugal, one during the
third quarter
* Consolidated its market share in Switzerland, Spain,
Portugal and France
* Pursued the identification and review of acquisition
targets
* Started the construction of its new production platform in
Coppet, Switzerland
* Received the approval of the General Shareholders Meeting
to authorize the Board of Directors, valid up to November 28, 2008,
to increase the share capital up to a maximum of 2 million shares,
divided into a maximum of 1'520'000 bearer shares of a par value of
CHF 1.00 and a maximum of 960'000 registered shares of a par value
of CHF 0.50. In addition, Shareholders approved not to distribute a
dividend for the current fiscal year 2006/2007, in order to
allocate these resources to the growth of the Company.
Unchanged Outlook
For the current fiscal year, ending May 31, 2007, Unilabs expects
organic Group revenue growth of 1% in local currencies. Including the
positive impact of realized acquisitions, revenues should reach CHF
305-310 million, representing an overall growth rate of approximately
5 - 6.5% for the fiscal year. The company expects an unchanged EBITDA
margin between 17-18% of revenues.
This outlook takes into account the full year impact of the Swiss
price reduction as well as the cost-cutting measures that are
implemented by the Company to achieve savings to a level close to the
expected loss of margin. The Company pursues this effort by
developing and implementing a number of additional cost savings
measures for the next two years.
Through select acquisitions, Unilabs intends to further take
advantage of the European consolidation process of the clinical
laboratory market.
Conference call
To discuss the financial results for the nine months 2006/2007,
Unilabs will hold conference call today at 3:00 p.m. CET. This event
will be relayed live through a conference call. To participate in the
conference call, dial: +41 (0)91 610 56 00 (Europe and Switzerland),
+44 (0)207 107 06 11 (UK), +1 (1)866 291 41 66 (US/Canada). Digital
playback is available for 48 hrs from May 8th at 18:00 pm CET until
May 10th until 18:00 pm CET. Dial: +41 (0)91 612 43 30 (Europe); +44
(0)207 108 62 33 (UK); +1 (1)866 416 25 58 (USA/Canada); Conference
ID: 264 followed by #. In order to view the slide presentation, a
link to the presentation will be provided immediately prior to the
event on www.unilabs.com. Please note that sound will only be
provided through the telephone conference.
About Unilabs
The Unilabs Group (SWX: ULB) is the European leader of clinical
testing laboratories. With over 50 laboratories and over 1500
employees operating in 6 countries, Unilabs tests over 3.5 million
samples per year using more than 1500 different tests. Unilabs'
clinical testing services are used by over 60 public and private
hospitals in France, Spain and Switzerland. Unilabs has been listed
on the SWX Swiss Stock Exchange since 1997.
Edgard Zwirn, Executive Chairman, is at your disposal for any further
query (tel. +4122 909 77 77). Our press releases are also available
on the Internet at our web site www.unilabs.com.
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Unilabs SA
C.P. 2559 Genève 1
WKN: 906648; ISIN: CH0012561640;
Index: SPI, SSCI, SBIOM, SLIFE, SPIEX;
Listed: Main Market in SWX Swiss Exchange;
