SHL Telemedicine Reports Second Quarter 2014 Financial Results
-- Revenue increased 39.2% to USD 10.3 million (USD 7.4 million in Q2 2013)
-- Improvement in gross margins to 56.3% from 52.7%
-- EBITDA of USD 1.7 million (16.5% of revenues) with EBIT of USD 0.2 million
-- Net profit of USD 0.1 million
-- Investing in expansion into new territories
-- Confirmed 2014 revenue guidance of over 30% growth year-over-year
TEL AVIV, Israel and ZURICH, Aug. 20, 2014 /PRNewswire/ -- SHL Telemedicine Ltd. (SIX Swiss Exchange: SHLTN, OTCPK: SMDCY), a leading provider and developer of advanced personal telemedicine solutions, today announced results for the second quarter and six months ended 30 June 2014.
Erez Alroy, Co-CEO of SHL, commented: "We have seen good momentum in our businesses leading to significantly improved financial performance for the period, even with the increased investments in our expansion initiatives. Expansion into new markets beyond Israel and Germany, based on our global smartheart™ platform, remains a key priority for SHL's growth strategy.
"In the US, we are progressing with our plans to launch our products and services, while in India we have made first steps in rolling out our telemedicine solution. In addition, since receiving approval in March to commence marketing activities in Japan, our smartheart™ platform has been accepted by over 20 leading Japanese clinics.
"We have gone through a lengthy process of receiving regulatory and marketing approvals for the smartheart™ platform in several major territories. The global interest we are witnessing is very encouraging and we are excited by the opportunities it may bring."
Financial Highlights
During the second quarter 2014, revenues increased considerably primarily due to the growth in the Company's German business, following the acquisition of almeda. Even with the increased investments in geographical expansion, SHL's financial performance has improved significantly with improved gross profit and operating results.
Revenues for the quarter grew by 39.2% (32.4% at constant exchange rates*) and amounted to USD 10.3 million compared to USD 7.4 million in Q2 2013.
For the half year revenues grew by 44.1% (37.2% at constant exchange rates) and amounted to USD 20.9 million compared to USD 14.5 million in the first half of 2013.
Gross profit for the quarter amounted to USD 5.8 million (56.3% of revenues) compared to USD 3.9 million (52.7% of revenues) in Q2 2013. Gross profit for the half year amounted to USD 11.7 million (56.0% of revenues) compared to a gross profit of USD 7.6 million (52.4% of revenues) in the first half of 2013.
EBITDA and EBIT for the half year and second quarter improved significantly over the adjusted EBITDA and EBIT of 2013, which included a one-time item lowering the general and administrative expenses.
For the quarter, EBITDA amounted to USD 1.7 million (16.5% of revenues) with EBIT at USD 0.2 million (1.9% of revenues) compared with an adjusted EBITDA and LBIT of USD 0.6 million and USD 0.7 million in the second quarter 2013.
For the half year, EBITDA amounted to USD 3.7 million (17.7% of revenues) with an EBIT of USD 0.6 million (2.9% of revenues), compared with an adjusted EBITDA of USD 0.5 million (3.4% of revenues) and an LBIT of USD 1.9 million in the first half of 2013.
Unadjusted EBITDA and EBIT for the second quarter 2013 amounted to USD 1.7 million and USD 0.4 million, respectively with EBITDA and EBIT for the first half of 2013 amounting to USD 3.1 million and USD 0.6 million, respectively.
Net Income for the quarter and half year was USD 0.1 million, or USD 0.01 per share, compared to an adjusted net loss of USD 1.1 million, for the second quarter 2013 and USD 2.8 million for the first half of 2013. Unadjusted net profit for the second quarter and first half of 2013 amounted to USD 0.1 million (USD 0.00 per share) and USD 0.3 million (USD 0.03 per share), respectively.
Cash used in operations for the quarter and half year amounted to USD 0.9 million and USD 3.3 million, respectively. Excluding USD 5.2 million received from Philips in the first quarter of 2013, which was the last payment related to the Raytel transaction, cash used in operations during the quarter and half year 2013 amounted to USD 0.8 million and USD 2 million. The decrease in operating cash flow is the result of one–time working capital requirements at almeda, for which SHL received USD 2.9 million upfront at the end of 2013. Cash, cash equivalents and marketable securities amounted to USD 21.8 million at June 30, 2014.
Balance sheet included total assets at 30 June 2014 of USD 106.3 million with shareholders' equity amounting to USD 68.8 million (64.7% of balance sheet) compared to total assets of USD 108.5 million with shareholders' equity amounting to USD 68.9 million at 31 December 2013.
SHL Telemedicine – consolidated key figures – Q2 2014
| in USD million |
Q2 2014 |
Q2 2013 |
% change |
Q2 2014 |
% change |
| Revenues |
10.3 |
7.4 |
39.2% |
9.8 |
32.4% |
| Gross profit |
5.8 |
3.9 |
48.7% |
5.5 |
41.0% |
| % |
56.3% |
52.7% |
56.1% |
||
| EBIT/(LBIT) |
0.2 |
0.4 |
(50.0%) |
0.2 |
(50.0%) |
| % |
1.9% |
5.4% |
2.0% |
||
| EBITDA |
1.7 |
1.7 |
0.0% |
1.6 |
(5.9%) |
| % |
16.5% |
23.0% |
16.3% |
||
| Net income |
0.1 |
0.1 |
n.a. |
0.1 |
n.a. |
| Basic EPS |
0.01 |
0.00 |
n.a. |
0.01 |
n.a. |
SHL Telemedicine – consolidated key figures - H1 2014
| in USD million |
H1 2014 |
H1 2013 |
% change |
H1 2014 |
% change |
| Revenues |
20.9 |
14.5 |
44.1% |
19.9 |
37.2% |
| Gross profit |
11.7 |
7.6 |
53.9% |
11.2 |
47.4% |
| % |
56.0% |
52.4% |
56.3% |
||
| EBIT/(LBIT) |
0.6 |
0.6 |
0.0% |
0.6 |
0.0% |
| % |
2.9% |
4.1% |
3.0% |
||
| EBITDA |
3.7 |
3.1 |
19.4% |
3.5 |
12.9% |
| % |
17.7% |
21.4% |
17.5% |
||
| Net income |
0.1 |
(0.3) |
n.a. |
0.1 |
n.a. |
| Basic EPS |
0.01 |
(0.03) |
n.a. |
0.01 |
n.a. |
*Constant currency - In order to enable meaningful comparison between the results, they 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 – Q2 14 |
||||
| Israel |
Germany |
|||
|
|
% of total |
USD m |
% of total |
|
| Q2 2014 |
6.1 |
59.2% |
4.2 |
40.8% |
| Q2 2013 |
5.8 |
78.4% |
1.6 |
21.6% |
| Q2 2014 (in constant |
5.9 |
60.2% |
3.9 |
39.8% |
| % change in constant |
1.7% |
143.8% |
||
| Revenues by geographic distribution – H1 14 |
||||
| Israel |
Germany |
|||
|
|
% of total |
USD m |
% of total |
|
| H1 2014 |
12.2 |
58.4% |
8.7 |
41.6% |
| H1 2013 |
11.4 |
78.6% |
3.1 |
21.4% |
| H1 2014 (in constant |
11.6 |
58.3% |
8.3 |
41.7% |
| % change in constant |
1.8% |
167.7% |
||
Conference Call, today, 4.00 pm CET / 10.00am ET
SHL will hold a call to discuss the Q2 results today at 4.00 pm CET / 10.00am ET. Erez Alroy, Co-CEO, and Eran Antebi, CFO, will host the call. Dial-in numbers are as follows:
| From Europe |
+41 (0)58 310 50 00 |
| From UK |
+44 (0)203 059 58 62 |
| From U.S.A. |
Toll free: +1 866 291 41 66 |
| From Israel |
Toll free: 1 80 921 44 27 |
| Local: +972 3763 1173 |
Slides and our half year report are available at
http://www.shl-telemedicine.com/about-us/investorrelations/financial-reports-pres-2014/
IR Agenda 2014
November 19, 2014 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, India and the United States 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: SMDCY. For more information please visit our web site at www.shl-telemedicine.com.
For further information please contact:
- Erez Alroy, Co-CEO, Phone: +972 3561 22 12, [email protected]
- Martin Meier-Pfister, IRF Communications, Phone: +41 43 244 81 40, [email protected]
- Garth Russell, KCSA Strategic Communications, Phone (U.S.A.): +1 212 896 1250, [email protected]
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.
| Balance-Sheets (USD thousands) |
30.6.2014 |
30.6.2013 |
31.12.2013 |
| Unaudited |
Unaudited |
Audited |
|
| Cash and cash equivalents |
8,154 |
9,457 |
8,732 |
| Restricted cash |
1,365 |
- |
- |
| Short term investments |
12,301 |
18,091 |
19,661 |
| Trade receivables |
14,764 |
12,495 |
10,479 |
| Inventory |
1,628 |
475 |
869 |
| Other current assets |
8,193 |
6,596 |
8,014 |
| Current Assets |
46,405 |
47,114 |
47,755 |
| Non-Current Assets |
11,403 |
12,322 |
11,632 |
| Property and equipment, net |
15,700 |
15,125 |
15,982 |
| Intangible assets, net |
32,793 |
23,292 |
33,146 |
| Total Assets |
106,301 |
97,853 |
108,515 |
| Credit from banks and current maturities |
10,643 |
9,117 |
10,477 |
| Deferred revenues |
521 |
110 |
330 |
| Trade payables |
1,969 |
1,016 |
1,433 |
| Other accounts payable |
4,236 |
3,768 |
4,568 |
| Other liabilities |
1,526 |
- |
2,504 |
| Current liabilities |
18,895 |
14,011 |
19,312 |
| Long-term loans |
16,496 |
18,965 |
18,205 |
| Deferred revenues |
1,218 |
1,272 |
1,283 |
| Employee benefit liabilities |
875 |
985 |
805 |
| Non-current liabilities |
18,589 |
21,222 |
20,293 |
| Total liabilities |
37,484 |
35,233 |
39,605 |
| Equity: |
|||
| Issued capital |
31 |
31 |
31 |
| Additional paid-in capital |
95,037 |
94,692 |
95,014 |
| Treasury shares |
(2,579) |
(2,956) |
(2,774) |
| Foreign currency translation reserve |
6,213 |
3,622 |
6,148 |
| Capital reserve for available-for-sale |
1,175 |
892 |
1,633 |
| Accumulated deficit |
(31,060) |
(33,661) |
(31,142) |
| Total equity |
68,817 |
62,620 |
68,910 |
| Total liabilities and equity |
106,301 |
97,853 |
108,515 |
| Statements of Income |
Q2 14 |
Q2 13 |
H1 14 |
H1 13 |
2013 |
| Unaudited |
Unaudited |
Unaudited |
Unaudited |
Audited |
|
| Revenues |
10,274 |
7,408 |
20,917 |
14,548 |
29,674 |
| Depreciation and amortization |
562 |
551 |
1,166 |
1,122 |
2,127 |
| Cost of revenues |
3,947 |
2,963 |
8,007 |
5,859 |
11,607 |
| Gross Profit |
5,765 |
3,894 |
11,744 |
7,567 |
15,940 |
| Research and development costs, net |
645 |
577 |
1,242 |
1,013 |
2,206 |
| Selling and marketing expenses |
2,987 |
2,328 |
5,719 |
4,679 |
8,787 |
| General and administrative expenses |
2,063 |
583 |
4,347 |
1,291 |
10,341 |
| Gain from almeda acquisition and other income |
(137) |
- |
(137) |
- |
(8,492) |
| Operating income |
207 |
406 |
573 |
584 |
3,098 |
| Financial income |
511 |
141 |
704 |
474 |
1,072 |
| Financial expenses |
(370) |
(407) |
(614) |
(1,052) |
(2,631) |
| Income before taxes on income |
348 |
140 |
663 |
6 |
1,539 |
| Taxes on income (Tax benefit) |
269 |
82 |
581 |
293 |
(693) |
| Net income (loss) |
79 |
58 |
82 |
(287) |
2,232 |
| Basic and diluted income (loss) per share |
0.01 |
0.00 |
0.01 |
(0.03) |
0.22 |
|
|
|||||
| Foreign currency translation reserve |
301 |
620 |
65 |
1,562 |
4,088 |
| Actuarial gain |
- |
- |
- |
- |
233 |
| 301 |
620 |
65 |
1,562 |
4,321 |
|
| Other Comprehensive income to be reclassified |
|||||
| Transfer to the statement of income in respect of |
(489) |
13 |
(545) |
(19) |
146 |
| Gain (loss) on available-for-sale investments |
(87) |
19 |
87 |
63 |
406 |
| (576) |
32 |
(458) |
44 |
552 |
|
| Total comprehensive income (loss) |
(196) |
710 |
(311) |
1,319 |
7,105 |
| Statements of Cash Flows (USD thousands) |
Q2 2014 |
Q2 2013 |
H1 2014 |
H1 2013 |
2013 |
| Unaudited |
Unaudited |
Unaudited |
Unaudited |
Audited |
|
| Net income (loss) |
79 |
58 |
82 |
(287) |
2,232 |
| Adjustment required to reconcile net income |
(964) |
(822) |
(3,340) |
3,459 |
400 |
| Net Cash provided by (used in) Operating |
(885) |
(764) |
(3,258) |
3,172 |
2,632 |
| Purchase of property and equipment |
(480) |
(315) |
(863) |
(918) |
(2,200) |
| Investment in intangible assets |
(380) |
(501) |
(778) |
(986) |
(1,878) |
| Restricted cash |
(1,367) |
- |
(1,367) |
||
| Acquisition of almeda |
- |
- |
- |
- |
2,920 |
| Proceeds from sale of property and |
- |
14 |
- |
14 |
29 |
| Purchase of short-term investments |
(3,130) |
(2,665) |
(5,056) |
(3,113) |
(8,511) |
| Proceeds from sale of short-term investments |
10,085 |
905 |
12,529 |
1,654 |
6,402 |
| Net Cash provided by (used in) Investing |
4,728 |
(2,562) |
4,465 |
(3,349) |
(3,238) |
| Proceeds from exercise of options |
60 |
101 |
65 |
141 |
486 |
| Short-term bank credit, net |
(714) |
461 |
- |
218 |
1,053 |
| Payment of long-term loans |
(998) |
(804) |
(1,867) |
(1,580) |
(3,267) |
| Treasury shares purchased |
- |
- |
- |
(36) |
(36) |
| Net Cash used in Financing Activities |
(1,652) |
(242) |
(1,802) |
(1,257) |
(1,764) |
| Effect of exchange rate changes on cash and |
24 |
56 |
17 |
278 |
489 |
| Increase (decrease) in cash and cash |
2,215 |
(3,512) |
(578) |
(1,156) |
(1,881) |
| Cash and cash equivalents at the beginning of |
5,939 |
12,969 |
8,732 |
10,613 |
10,613 |
| Cash and Cash equivalents at the end of the |
8,154 |
9,457 |
8,154 |
9,457 |
8,732 |
SOURCE SHL Telemedicine Ltd.
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