DGAP-News: CompuGroup Medical SE & Co. KGaA / Key word(s): Half Year Results/Quarter Results
- 6% organic growth yoy excluding Telematics Infrastructure
- Significant increase in recurring revenues across all segments
- Higher revenues expected in second half 2020 due to approval of e-health connector
- Full year guidance raised
- Additional headroom for growth due to share placement
Frank Gotthardt, founder and CEO of CompuGroup Medical, "Our company showed its strong resilience and solid business model in the face of uncertainties of a pandemic in the first and especially in the second quarter. We have seen many people becoming directly aware of the benefits of digitization in healthcare during this time. In the third quarter, healthcare professionals and patients will be able to benefit even more from the opportunities of digital communication. Since the CGM e-health connector KoCoBox MED+ has been approved and is now being rolled out, emergency data and electronic medication plans on a health card will become normal along with digital communication between service providers. All of this encourages us to continue with our consistent growth course from past years."
Group: Stable performance and positive outlook
Adjusted Group EBITDA increased from EUR 44.3 million (pro-forma) to EUR 44.6 million in the second quarter of 2020. The operating margin is still at a high level with 25% (previous year: adjusted 24%). CGM generated a consolidated profit of EUR 16.3 million in the second quarter (previous year: EUR 14.2 million). Adjusted earnings per share (diluted) were EUR 0.38, exactly at the previous year's level of EUR 0.38 in spite of the increased number of shares outstanding following the share placement.
Capital expenditures stood at EUR 13.5 million, slightly below the previous year (EUR 14.3 million). Operating cash flow in the reporting period was characterized by a decrease in payables and an increase in inventory and income tax receivables. Adjusted free cash flow was at EUR -0.8 million (previous year EUR 23.5 million), which is primarily due to high, one-off payments from TI connections in the previous year. Net debt as of June 30, 2020 was at EUR 123.2 million and thus EUR 343.7 million lower versus year-end 2019 (EUR 466.9 million). As of June 30, 2020, the company employed 5,826 people, 369 more than at the end of the previous year quarter. Including the successfully concluded takeover of the Cerner portfolio, which took place after the reporting date of June 30, 2020, the company employs more than 6,100 people.
CGM is increasing its guidance for the full year. Including the acquisition of parts of the Cerner portfolio in Germany and Spain, which was finalized on July 1, revenues are now expected in the range of EUR 820 million to EUR 860 million. Guidance for adjusted EBITDA is also raised to a new range of EUR 205 million to EUR 220 million.
Segments: All segments are growing recurring revenue
Business in the Pharmacy Information Systems (PCS) segment was positively affected in the second quarter by successful sales of additional modules for cashpoints in German pharmacies. Revenues increased by 6% to EUR 29.6 million (previous year: EUR 27.8 million). Recurring revenues increased by almost 9% year-on-year and reached EUR 18.9 million. The share of recurring revenues increased by one percentage point to 64% of the segment's revenues. Revenues also increased organically by approximately 6%. Adjusted EBITDA was EUR 8.0 million (previous year: EUR 6.0 million) with an operating margin of 27% (previous year: 21%).
The Hospital Information Systems (HIS) segment increased revenues in the second quarter by 4% to EUR 33.4 million (previous year: EUR 32.3 million). Recurring revenues increased by 12% to EUR 21.8 million. Thus, the portion of recurring revenue in the segment's revenues increased from 60% to 65%. Adjusted EBITDA was EUR 5.5 million after EUR 1.6 million in the previous year quarter, which is an increase of the operating margin to 16% (previous year: 5%).
The Consumer & Health Management Information Systems (CHS) segment increased revenues by 6% to EUR 10.6 million (previous year: EUR 9.9 million), which mainly resulted from the CGM LIFE division that significantly increased its business with private health insurance companies. Organic growth was also 6%. Adjusted EBITDA of EUR 1.4 million was slightly under the previous year quarter (EUR 1.5 million) due to increased development costs.
The complete half year report is available on the company's website at www.cgm.com under Investor Relations.
Contact for analysts and investors:
|Company:||CompuGroup Medical SE & Co. KGaA|
|Maria Trost 21|
|Phone:||+49 (0)261 8000 6200|
|Fax:||+49 (0)261 8000 3200|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||1111395|
|End of News||DGAP News Service|