Market Overview

Cegedim: Higher Profits at End of September against a Background of Significant Investment

Share:
BOULOGNE-BILLANCOURT, France--(BUSINESS WIRE)--

Regulatory News:

Cegedim, an innovative technology and services company, generated consolidated first nine months 2015 revenues from continuing activities of €366.6 million, up 1.0% like for like and 3.3% on a reported basis compared with the same period in 2014. All Group divisions contributed to the reported increase. The like-for-like decline at the Healthcare Professionals division was more than offset by stability at the Cegelease division and an increase at Health Insurance, HR and e-services. The Health Insurance, HR and e-services division made a noteworthy return to strong growth in the third quarter despite the migration of clients towards SaaS and cloud offerings.

EBITDA amounted to €60.3 million over the first nine months of 2015, up 3.2% compared with a year earlier. This EBITDA trend was attributable to the increases at Health Insurance, HR and e-services, Cegelease and at the Activities not allocated division, which were partially offset by the decrease at the Healthcare Professionals division. The EBITDA margin remains virtually stable at 16.4% for the first nine months of 2015 compared to 16.5% a year earlier.

These performances reflect the main development areas the Group is prioritizing for future growth:

  • Speeding up the migration of its software offerings from a perpetual license model to SaaS / cloud models
  • The rapid deployment of its BPO offering (Business Process Outsourcing)
  • Strengthening its businesses through targeted acquisitions

During this transition period, revenue and profitability are being negatively impacted by the significant investment needed in human resources and innovation. Furthermore, the change in revenue and costs recognition induced by the migration to SaaS is leading to an unfavorable base effect during the transition year.

Over the longer term, Cegedim will increase its customer loyalty and forge closer relationships, simplify its operating processes, and strengthen its offering and its geographic footprint. This move will simultaneously increase the share of recurring revenues, make growth stronger and more predictable, and increase the Group's profitability.

The Group reiterates, as announced on October 27, its target of 2015 like-for-like revenue growth of 1.0% for continuing activities, and a 5.0% increase in EBITDA.

Net financial debt fell by €327.3 million to €176.9 million, mainly as a result of the sale of the CRM and Strategic Data division to IMS Health on April 1.

  • Simplified income statement
    9M 2015   9M 2014  

Δ

  €M   %   €M   %  
Revenue   366.6   100%   355.0   100%   +3.3%
EBITDA 60.3   16.4% 58.4   16.5% +3.2%
Depreciation (32.0) (28.4) +13.0%
Operating income before special items   28.2   7.7%   30.1   8.5%   (6.0)%
Special items (5.0) (8.1) (37.9)%
Operating income   23.2   6.3%   22.0   6.2%   +5.7%
Cost of net financial debt (32.7) (38.2) (14.3)%
Tax expenses (2.7) (1.5) +85.1%
Consolidated profit from continuing activities   (10.8)   (2.9)%   (16.3)   (4.6)%   +34.0%
Net earnings from activities sold   34.1       3.5   -   n.m.
Consolidated profit (loss) Group Share   23.3   6.4%   (12.8)   (3.6)%   n.m.

Over the first nine months of 2015, Cegedim generated consolidated revenue from continuing activities of €366.6 million, up 3.3% on a reported basis compared with the same period in 2014. Currencies and acquisitions had positive impacts of respectively 1.9% and 0.3%. Like-for-like revenue grew by 1.0%.

The decline in like-for-like revenues at the Healthcare Professionals division was more than offset by growth at the Health Insurance, HR and e-services; Cegelease; and Activities not allocated divisions.

EBITDA increased by €1.9 million, or 3.2%, to €60.3 million; the margin remained virtually stable at 16.4% for the first nine months of 2015, compared to 16.5% for the first nine months of 2014. This EBITDA trend was attributable to the drop at the Healthcare professionals division being more than offset by EBITDA improvements at Health Insurance, HR and e- services; Cegelease; and Activities not allocated.

Depreciation increased by €3.7 million, from €28.4 million for the first nine months of 2015 to €32.0 million for the first nine months of 2015. Special items at the end of September 2015 amounted to a charge of €5.0 million, compared with a charge of €8.1 million one year earlier. Most of these charges are linked to reorganizational costs tied to the computerization of doctors in the UK and fees related to the sale of the CRM and Strategic Data division to IMS Health.

EBIT before special items decreased by €1.8 million, or 6.0%, to €28.2 million, with a decrease in margin from 8.5% for the first nine months of 2014 to 7.7% for the first nine months of 2015.

The cost of financial debt decreased by €5.5 million, from €38.2 million at the end of September 2014 to €32.7 million at the end of September 2015. This decrease reflects the gain on financial investments and the positive impact of the restructuring of bond debt in 2014 and 2015.

Tax expense increased by €1.2 million, from a charge of €1.5 million over the first nine months of 2014 to a charge of €2.7 million over the first nine months of 2015.

Thus, the consolidated net profit from continuing activities amounted to a loss of €10.8 million at the end of September 2015, compared with a €16.3 million loss a year earlier. The loss per share from continuing activities before special items was €0.4 at the end of September 2015, compared with a €0.6 loss at the end of September 2014. The consolidated net profit attributable to the Group amounted to a profit of €23.3 million at the end of September 2015, compared to a €12.8 million loss at the end of September 2014. This profit came from the adjustment of the result on disposal (see note 13 of the consolidated financial statements).

Analysis of business trends by division

  • Key figures by division
  Revenue  

EBIT
before special
items

  EBITDA
in € million 3rd Quarter 3rd Quarter 3rd Quarter
  2015   2014 2015   2014 2015   2014
Health Insurance, HR and e-services 55.9   51.4 4.5   6.2 8.6   10.0
Healthcare professionals 36.5 36.9 3.6 6.3 6.4 8.8
Cegelease 27.2 27.3 1.3 1.6 4.6 4.1
Activities not allocated 0.8 0.7 (0.4) (1.5) 0.4 (1.0)
Cegedim 120.4   116.4 9.1   12.5 20.0   21.9
  Revenue  

EBIT
before special
items

  EBITDA
in € million 9M 9M 9M
  2015   2014 2015   2014 2015   2014
Health Insurance, HR and e-services 167.5   158.0 16.2   15.7 28.1   26.9
Healthcare professionals 113.0 111.5 10.5 16.5 18.9 24.0
Cegelease 83.3 83.1 3.0 3.6 12.7 12.2
Activities not allocated 2.8 2.3 (1.4) (5.8) 0.6 (4.6)
Cegedim 366.6   355.0 28.2   30.1 60.3   58.4
  • Health Insurance, HR and e-services

Over the first nine months of 2015, division revenues came to €167.5 million, up 6.0% on a reported basis. The acquisition of Activus in July 2015 in the UK made a positive contribution of 0.7%. Currencies had virtually no impact. Like-for-like revenues grew 5.2% over the period.

The Health Insurance, HR and e-services division represented 45.7% of consolidated revenues from continuing activities, compared with 44.5% during the same period a year earlier.

EBITDA came to €28.1 million for the first nine months of 2015, up €1.2 million or 4.6%. The margin came to 16.8%, compared to 17.0% a year earlier.

These positive performances stem chiefly from:

  • Cegedim Health Insurance, driven mainly by the third-party payments processing and BPO activities. Others activities were impacted in the short term by the transition from a perpetual license model to an SaaS / Cloud model. Finally, the acquisition of health and personal insurance software publisher Activus gave Cegedim Health Insurance access to new markets (UK, US, Middle East, APAC, etc.).
  • Cegedim SRH, the SaaS HR management platform, which got a boost from numerous commercial successes and from the successful development of its BPO activities. This last element initially had a negative impact on margin.
  • Digital communication activities, following the successful transition to digital
  • Healthcare Professionals

Over the first nine months of 2015, division revenues came to €113.0 million, up 1.4% on a reported basis. Currency effects made positive contributions of 6.0%. Acquisitions had virtually no impact. Like-for-like revenues fell 4.7% over the period.

The Healthcare Professionals division represented 30.8% of consolidated revenues from continuing activities, compared with 31.4% during the same period a year earlier.

EBITDA came to €18.9 million for the first nine months of 2015, down €5.1 million or 21.3% compared to a year earlier. Thus, the margin came to 16.7%, compared to 21.5% a year earlier.

These performances stem chiefly from:

  • Weaker trends in the computerization of UK doctors following the market's migration to cloud-based offerings. However, the investments the Group is now making in order to get a cloud offering in 2016 should allow this segment to gradually return to growth.
  • The impact of rolling out Revenue Cycle Management (RCM) products in the US. This product range allows doctors to manage reimbursements from multiple US insurers. This is a BPO-like offering that required the size of the RCM team to be doubled before requested work could begin with clients. This significantly increased costs. As business with clients gradually ramps up over Q4 2015 and H1 2016, this activity should return to growth and improve its profitability. Revenues related to RCM offerings are recognized over the life of the contract, unlike EHR products.
  • The definitive adoption in October of the ICD-10 standards in the Unites-States, which means we can expect a gradual pick-up in EHR sales momentum following a period in which doctors have been hesitant to invest.
  • Lastly, the September 2015 acquisition of Nightingale's US assets gives the Group product ranges that use both client-server and cloud models.
  • Growth in the computerization of doctors in Spain, Belgium and Romania, and the computerization of nurses and physical therapists in France.
  • Growth in the Base Claude Bernard (BCB) medication database.

Cegedim is strengthening its SoCall remote medical receptionist offering by launching Docavenue, an innovative online appointment scheduling solution. This platform connects patients directly to their healthcare professional's calendar so they can request an appointment. Patients then receive a text message confirming the appointment. The service also gives patients access to information on diseases and on medications, via the BCB database. It meets a growing need, both before and after consultations, for vetted information on treatments, indications, side-effects and contraindications. The Group plans to expand the Docavenue offering to other countries.

  • Cegelease

Over the first nine months of 2015, division revenues came to €83.3 million, up 0.3% on a reported basis and like for like. There were no acquisitions or divestments, and currencies had no impact.

The Cegelease division represented 22.7% of consolidated revenues from continuing activities, compared with 23.4% during the same period a year earlier.

EBITDA came to €12.7 million for the first nine months of 2015, up €0.5 million or 4.1% compared to a year earlier. Thus, the margin came to 15.2%, compared to 14.6% a year earlier.

The increased use of self-financing for financial lease contracts, principally in the second quarter, negatively affected revenues and EBITDA. Favorable financing conditions are leading the Group to reduce the share of self-financed contracts.

As a reminder, margins are higher on self-financed contracts than on resold contracts, but the margin on resold contracts is recognized when the contract is signed, whereas in the case of self-financed contracts, the margin is recognized over the duration of the contract.

  • Activities not allocated

Over the first nine months of 2015, division revenues came to €2.8 million, up 18.5% on a reported basis and like for like. There were no acquisitions or divestments, and currencies had no impact.

The Activities not allocated division represented 0.8% of consolidated revenues from continuing activities, compared with 0.7% during the same period a year earlier.

EBITDA improved by €5.3 million to a €0.6 million profit for the first nine months of 2015 compared with a €4.6 million loss a year earlier. The margin came to 22.2% at the end of September 2015.

This favorable EBITDA trend reflects cost-containment efforts and the impact of invoicing for IT services that are being provided to IMS Health.

Financial resources

Cegedim's total consolidated balance sheet at September 30, 2015, was €783.8 million, a 31.8% decrease over December 31, 2014.

Goodwill on acquisition came to €184.9 million at September 30, 2015, compared to €175.4 million at the end of 2014. This €9.5 million increase is chiefly attributable to the acquisition of Activus in July 2015 in the UK and to the appreciation of some foreign currencies against the euro, chiefly the UK pound, for €1.7 million. Goodwill on acquisition represented 23.6% of total assets on September 30, 2015, compared to 15.3% at December 31, 2014.

Cash and cash equivalents came to €218.1 million at September 30, 2015, an increase of €174.0 million compared to December 31, 2014. This increase was principally due to the recognition of the selling price of the CRM and Strategic Data business to IMS Health, i.e. €324 million net of the cash positions of the divested companies, partly offset by the redemption of a total of €87.9 million of the 6.75% bond maturing in 2020 on the market, and by an increase in WCR.

Shareholders' equity fell €34.5 million to €183.6 million at the end of September 2015 compared to €218.1 million at the end of December 2014. This decrease stems from the decline in the group exchange gains/losses following the deconsolidation related to the disposal of the CRM and Strategic Data division to IMS Health. Shareholders' equity came to 19.0% of total balance sheet on December 31, 2014, compared to 23.4% at the end of September 2015.

Net debt came to €176.9 million at the end of September 2015, down €327.3 million compared with end of 2014. This represented 96.4% of equity as of September 30, 2015.

Before the cost of net financial debt and taxes, operating cash flow was €61.3 million at the end of September 2015, compared to €77.3 million as of September 30, 2014.

Period highlights

  • Disposal of the "CRM and Strategic Data" division to IMS Health

On April 1, 2015, Cegedim announced that it had completed the disposal of its CRM and Strategic Data division to IMS Health. The estimated selling price, determined in accordance with October 2014 agreements, amounts to €396 million. This estimated amount is subject to joint review over a period of 180 business days from March 31, 2015.

  • S&P has upgraded Cegedim's rating to BB- with positive outlook

Following the announcement of the transaction, rating agency Standard and Poor's upgraded Cegedim's rating to BB-, with positive outlook, on April 13, 2015.

  • Redemption of the 7.0% 2015 bond

Cegedim redeemed the full amount of the €62.6 million of the 7.0% 2015 bond remaining in circulation upon maturity on July 27, 2015 (ISIN: FR0010925172).

  • Cancellation of factoring agreements

In the first half of 2014, the Group cancelled factoring agreements covering the divestment of client receivables, with no possibility of recourse, for a total of €38.0 million. These agreements amounted to €14.2 million at end-December 2014. The agreements dealt chiefly with companies sold to IMS Health.

  • Redemption of Cegedim Bonds

Between May 6, 2015, and September 30, 2015, Cegedim redeemed on the market its 6.75% bond, maturing April 1, 2020, ISIN code XS0906984272, for a total principal amount of €79,504,000. The company then cancelled these bonds. As a result, a total principal amount of €345,496,000.00 remains in circulation.

  • Acquisition in the UK of Activus

On July 20, 2015, Cegedim announced the acquisition of 100% of Activus, one of the UK's leading suppliers of health and protection insurance software. This deal gives Cegedim Health Insurance access to new markets (UK, US, Middle East, APAC, Africa, etc.) and strengthens its software offering for international clients. Activus generated revenue of around €7 million in 2014.

This move is part of the Group's strategy of making bolt-on acquisitions to expand its international positions. The deal was financed with internal financing. It began contributing to Cegedim consolidated results starting from the acquisition date.

  • Favorable exchange rate movements

At end-September, movements in exchange rates were positive, contributing €6.8 million to consolidated nine month revenues from continuing activities.

  • Competition Authority

On September 24, 2015, the Paris Court of Appeal rejected Cegedim's request and upheld the Competition Authority decision of July 8, 2014. Because the fine was paid in full in September 2014, this decision has no impact on Cegedim's accounts. Cegedim has appealed this decision to the Court of Cassation.

Apart from the items cited above, to the best of the company's knowledge, there were no events or changes during the period that would materially alter the Group's financial situation.

Significant post-closing transactions and events

  • Acquisition of Nightingale's US assets

In early October 2015, Cegedim announced that its US subsidiary, Pulse Systems, Inc., had acquired the US healthcare management activities of Nightingale Informatix Corporation, including Medrium, Ridgemark, Secure Connect and Northern Health Products.

Pulse will now be able to offer its clients healthcare and EHR management products in client-server and cloud formats.

  • Redemption of Cegedim Bonds

On October 1, 2015, Cegedim redeemed on the market its 6.75% bond, maturing April 1, 2020, ISIN code XS0906984272, for a total principal amount of €2,150,000. The company is canceling these bonds. As a result, a total principal amount of €343,346,000 remains in circulation.

Apart from the items cited above, to the best of the company's knowledge, there were no post-closing events or changes that would materially alter the Group's financial situation.

Outlook

In light of the rapid development of its BPO and SaaS / cloud businesses, which require personnel investments to get clients up and running, and given the investments necessary for migrating all of its software products from perpetual license models to cloud / SaaS formats, Cegedim is expecting for 2015 like-for-like revenue growth of 1% and a 5% increase in EBITDA.

The Group does not anticipate any significant acquisitions for 2015 and does not disclose profit projections or estimates.

Financial calendar

The Group will hold a conference call today, November 26, 2015, at 6:15 pm in English (Paris time). The call will be hosted by Jan Eryk Umiastowski, Cegedim Chief Investment Officer and Head of Investor Relations.

 

A presentation of Cegedim 2015 First Nine Months Results will also be available on the website: http://www.cegedim.com/finance/documentation/Pages/presentations.aspx

 

Contacts numbers:

 

France: +33 1 70 77 09 44

US: +1 866 907 5928

UK and others: +44 (0)20 3367 9453

 

No access code required

December 17, 2015 at 1:45pm CET

  • 6th Investor Summit

Auditorium Cegedim, 17 rue de l'Ancienne Maire, Boulogne-Billancourt

January 28, 2016 after market closing

  • 2015 Revenue

March 23, 2016 after market closing

  • 2015 Earnings

March 24, 2016 at 10am CET

  • Analyst meeting (SFAF meeting)

May 26, 2016 after market closing

  • Q1 2016 Earnings

July 26, 2016 after market closing

  • Q2 2016 Revenue

September 15, 2016 after market closing

  • 2016 Half-year Earnings

September 16, 2016 at 10am CET

  • Analyst meeting (SFAF meeting)

November 29, 2016 after market closing

  • Q3 2016 Earnings

Additional Information

The Audit Committee met on November 24, 2015. The Board of Directors met on November 26, 2015, to review the 2015 first nine months consolidated financial statements.

The first nine months financial report, including management discussion and analysis, is available in the Finance section of Cegedim's website:

This information is also available on Cegedim IR, the Group's financial communications app for smartphones and iOS and Android tablets. To download the app, visit: http://www.cegedim.fr/finance/profil/Pages/CegedimIR.aspx.

Appendices

  • Balance sheet as of September 30, 2015

Assets

In thousands of euros   09/30/2015   12/31/2014
Goodwill on acquisition   184,891   175,389
Development costs 30,268 12,059
Other intangible fixed assets   82,372   92,979
Intangible fixed assets 112,640 105,038
Property 389 389
Buildings 3,285 3,637
Other tangible fixed assets 18,752 16,006
Construction work in progress   1,799   697
Tangible fixed assets 24,224 20,727
Equity investments 1,064 704
Loans 2,618 2,684
Other long-term investments   6,424   8,834
Long-term investments - excluding equity shares in equity method companies 10,105 12,222
Equity shares in equity method companies 9,292 8,819
Government - Deferred tax 9,347 10,625
Accounts receivable: Long-term portion 15,648 15,162
Other receivables: Long-term portion   1,256   1,812
Non-current assets 367,403 349,793
Goods 8,424 8,563
Advances and deposits received on orders 89 77
Accounts receivable: Short-term portion 144,675 127,264
Other receivables: Short-term portion 27,900 21,931
Cash equivalents 165,000 2,416
Cash 53,081 41,619
Prepaid expenses   17,223   12,708
Current assets   416,394   214,579
ASSETS OF ACTIVITIES HELD FOR SALE       584,857
Total assets   783,797   1,149,229

Liabilities as of September 30, 2015

In thousands of euros   09/30/2015   12/31/2014
Share capital   13,337   13,337
Group reserves 139,150 340,763
Group exchange gains/losses 7,731 63,577
Group earnings   23,326   (199,757)
Shareholders' equity, Group share 183,544 217,921
Minority interests (reserves) 71 118
Minority interests (earnings)   (10)   24
Minority interests   61   142
Shareholders' equity 183,605 218,063
Long-term financial liabilities 346,791 476,024
Long-term financial instruments 4,198 8,094
Deferred tax liabilities 6,883 7,620
Non-current provisions 20,500 18,680
Other non-current liabilities   2,625   1,123
Non-current liabilities 380,996 511,541
Short-term financial liabilities 48,208 72,192
Short-term financial instruments 5 8
Accounts payable and related accounts 47,474 47,166
Tax and social liabilities 60,771 69,188
Provisions 2,420 2,615
Other current liabilities   60,317   47,808
Current liabilities   219,196   238,976
LIABILITIES OF ACTIVITIES HELD FOR SALE       180,649
Total Liabilities   783,797   1149,229

Income statement as of September 30, 2015

In thousands of euros   09/30/2015   09/30/2014
Revenue   366,567   354,969
Other operating activities revenue
Purchases used (64,888) (65,921)
External expenses (93,322) (90,799)
Taxes (7,799) (8,161)
Payroll costs (138,000) (129,537)
Allocations to and reversals of provisions (2,814) (1,832)
Change in inventories of products in progress and finished products
Other operating income and expenses 552 (305)
EBITDA 60,295 58,413
Depreciation expenses   (32,047)   (28,363)
Operating income from recurring operations 28,248 30,050
Depreciation of goodwill
Non-recurrent income and expenses (5,010) (8,062)
Other exceptional operating income and expenses   (5,010)   (8,062)
Operating income 23,239 21,988
Income from cash and cash equivalents 1,202 241
Gross cost of financial debt (32,775) (38,230)
Other financial income and expenses   (1,173)   (214)
Cost of net financial debt (32,746) (38,203)
Income taxes (2,247) (3,013)
Deferred taxes   (448)   1,556
Total taxes (2,695) (1,456)
Share of profit (loss) for the period of equity method companies 1,428 1,343
Profit (loss) for the period from continuing activities (10,775) (16,328)
Profit (loss) for the period discontinued activities 3,547
Profit (loss) for the period from activities sold   34,091    
Consolidated profit (loss) for the period   23,316   (12,781)
GROUP SHARE 23,326 (12,804)
Minority interests (10) 23
Average number of shares excluding treasury stock   13,934,479   13,955,780
Current Earnings Per Share (in euros)   (0.4)   (0.6)
Earnings Per Share (in euros) 1.7 (0.9)
Dilutive instruments none none
Earning for recurring operation per share (in euros)   1.7   (0.9)

Consolidated cash flow statement as of September 30, 2015

In thousands of euros   09/30/2015   09/30/2014
Consolidated profit (loss) for the period   23,316   (12,782)
Share of earnings from equity method companies (1,470) (1,346)
Depreciation and provisions 32,532 47,280
Capital gains or losses on disposals   (30,687)   350
Cash flow after cost of net financial debt and taxes 23,691 33,502
Cost of net financial debt 31,758 38,343
Tax expenses   5,811   5,417
Operating cash flow before cost of net financial debt and taxes 61,260 77,262
Tax paid (9,877) (8,611)
Change in working capital requirements for operations: requirement (21,370) (12,220)
Change in working capital requirements for operations: surplus        
Cash flow generated from operating activities after tax paid and change in working capital requirements (A)   30,013   56,432
OF WHICH NET CASH FLOWS FROM OPERATING ACTIVITIES OF DISCONTINUED OPERATIONS 6,091 40,858
Acquisitions of intangible assets (30,615) (37,790)
Acquisitions of tangible assets (21,003) (16,282)
Acquisitions of long-term investments
Disposals of tangible and intangible assets 1,532 665
Disposals of long-term investments 1,604 1,383
Impact of changes in consolidation scope (1) 319,370 (467)
Dividends received from equity method companies   81   941
Net cash flows generated by investment operations (B)   270,969   (51,550)
OF WHICH NET CASH FLOWS CONNECTED TO INVESTMENT OPERATIONS OF DISCONTINUED OPERATIONS (7,482) (23,314)
Dividends paid to parent company shareholders 0 0
Dividends paid to the minority interests of consolidated companies (69) (73)
Capital increase through cash contribution 0 (53)
Loans issued 0 125,000
Loans repaid (144,457) (107,069)
Interest paid on loans (41,530) (38,363)
Other financial income and expenses paid or received   (643)   (2,788)
Net cash flows generated by financing operations (C) (186,699) (23,347)
OF WHICH NET CASH FLOW RELATED TO FINANCING OPERATIONS OF DISCONTINUED OPERATIONS (836) 262
Change In Cash without impact of change in foreign currency exchange rates (A + B + C) 114,283 (18,466)
Impact of changes in foreign currency exchange rates 2,850 3,821
Change in cash 117,133 (14,644)
Opening cash 99,715 54,227
Closing cash   216,848   39,582

(1) Selling price net of cash positions of the divested companies of the CRM and strategic data division on April 1, 2015.

  • Glossary

Activities not allocated: this division encompasses the activities the Group performs as the parent company of a listed entity, as well as the support it provides to the three operating divisions.

 

EPS: Earnings Per Share is a specific financial indicator defined by the Group as the net profit (loss) for the period divided by the weighted average of the number of shares in circulation.

 

Operating expenses: defined as purchases used, external expenses and payroll costs.

 

Revenue at constant exchange rate: when changes in revenue at constant exchange rate are referred to, it means that the impact of exchange rate fluctuations has been excluded. The term "at constant exchange rate" covers the fluctuation resulting from applying the exchange rates for the preceding period to the current fiscal year, all other factors remaining equal.

 

Revenue on a like-for-like basis: the effect of changes in scope is corrected by restating the sales for the previous period as follows:

• by removing the portion of sales originating in the entity or the rights acquired for a period identical to the period during which they were held to the current period;

• similarly, when an entity is transferred, the sales for the portion in question in the previous period are eliminated.

 

Life-for-like data: at constant scope and exchange rates.

 

Internal growth: internal growth covers growth resulting from the development of an existing contract, particularly due to an increase in rates and/or the volumes distributed or processed, new contracts, acquisitions of assets allocated to a contract or a specific project.

 

External growth: external growth covers acquisitions during the current fiscal year, as well as those which have had a partial impact on the previous fiscal year, net of sales of entities and/or assets.

 

EBIT: Earnings Before Interest and Taxes. EBIT corresponds to net revenue minus operating expenses (such as salaries, social charges, materials, energy, research, services, external services, advertising, etc.). It is the operating income for the Cegedim Group.

 

EBIT from recurring operations: this is EBIT restated to take account of non-current items, such as losses on tangible and intangible assets, restructuring, etc. It corresponds to the operating income from recurring operations for the Cegedim Group.

 

EBITDA: Earnings before interest, taxes, depreciation and amortization. EBITDA is the term used when amortization or depreciation and revaluations are not taken into account. "D" stands for depreciation of tangible assets (such as buildings, machines or vehicles), while "A" stands for amortization of intangible assets (such as patents, licenses and goodwill). EBITDA is restated to take account of non-current items, such as losses on tangible and intangible assets, restructuring, etc. It corresponds to the gross operating earnings from recurring operations for the Cegedim Group.

 

Net Financial Debt: this represents the Company's net debt (non-current and current financial debt, bank loans, debt restated at amortized cost and interest on loans) net of cash and cash equivalents and excluding revaluation of debt derivatives.

 

Free cash flow: free cash flow is cash generated, net of the cash part of the following items: (i) changes in working capital requirements, (ii) transactions on equity (changes in capital, dividends paid and received), (iii) capital expenditure net of transfers, (iv) net financial interest paid and (v) taxes paid.

 

Operating margin: defined as the ratio of EBIT/revenue.

 

Operating margin from recurring operations: defined as the ratio of EBIT from recurring operations/revenue.

 

Net cash: defined as cash and cash equivalent minus overdraft.

 

About Cegedim:

Founded in 1969, Cegedim is an innovative technology and services company in the field of digital data flow management for healthcare ecosystems and B2B, and a business software publisher for healthcare and insurance professionals. Cegedim employs almost 3,500 people in 11 countries and generated revenue of €494 million in 2014. Cegedim SA is listed in Paris (EURONEXT: CGM).

To learn more, please visit: www.cegedim.com

And follow Cegedim on Twitter: @CegedimGroup

Aude BALLEYDIER
Cegedim
Media Relations
Tel: +33 (0)1 49 09 68 81
aude.balleydier@cegedim.fr
or
Jan Eryk UMIASTOWSKI
Cegedim
Chief investment Officer
Investor Relations
Tel.: +33 (0)1 49 09 33 36
investor.relations@cegedim.fr
or
Guillaume DE CHAMISSO
PRPA Agency
Media Relations
Tel: +33 (0)1 77 35 60 99
guillaume.dechamisso@prpa.fr

View Comments and Join the Discussion!