Unilabs Reports Second Quarter 2015 Financial Results

  • Revenues of €172.1 million, up 12.1% from Q2 2014 largely from organic growth
  • Adjusted EBITDA* for Q2 of €27.2million, up 30.9% from Q2 2014
  • Fourth successive quarter of revenue growth, cost savings and EBITDA growth show that key strategic initiatives are delivering for the business
  • Organic revenue growth and EBITDA growth targets have been revised upwards for the full year of 2015

GENEVA--()--Unilabs, one of Europe’s leading providers of clinical laboratory testing and medical diagnostic imaging services, announced further growth today, reporting that for the quarter ending 30 June 2015, revenue was €172.1m, compared to €153.5m in Q2 2014. The results show a significant and positive organic sales growth of 7.1% (CER†) leading to EBITDA growth vs Q2 2014 of 25.6%. This marks the 4th successive quarter of revenue growth, EBITDA growth and cost savings.

Other significant milestones in the last quarter include:

  • Completing the acquisition of a new laboratory in France - Institut D'Histo Cyto Pathologie (IHCP), headquartered in Bordeaux with estimated annual sales of €6m
  • Divesting the Russian business during May as the company continues to focus on its key Western European markets and international development in Peru and the Middle East
  • A further acquisition has been signed and will be closed early Q4 at a similar size as IHCP

Unilabs is a leading supplier of clinical laboratory testing and medical diagnostic imaging services for public and private health services and other customer groups across 11 markets. In 2014, its laboratories carried out over 100 million laboratory tests and over 1 million radiology exams providing swift and accurate results to allow a wide range of healthcare professionals to make key treatment decisions.

Jos Lamers, Chief Executive Officer at Unilabs said, “We’re excited to see these Q2 results that continue to show positive growth through 2015. Our strategies are working. Our revitalised teams are successfully winning business across geographies and implementing decisions to ensure that we continue to lead on cost reduction. All of this is driving significant margin improvement. Our task is to continue on this path while exploring acquisitions such as those recently in France and Portugal that add to our capabilities and fit with our strategy.”

Unilabs Group
€millions   Q2 Reported   Q2 CER
2014   2015   % change 2015 CER   % change
Revenues 153.5 172.1 12.1% 165.9 8.0%
Adjusted EBITDA 20.8 27.2 30.9% 26.5 27.7%
Adjusted EBITDA margin 13.5% 15.8% 227 bps 16.0% 246 bps

Commenting on the financial performance Chief Financial Officer Karl-Erik Clausen said, “Sales growth of 8.0% (CER) compared to the same quarter last year has been driven by strong performance of the imaging division across geographies and in both Sweden and Switzerland. We have been successful in our most significant retender of 2015 for imaging services in Sweden securing estimated annual revenues of almost €10m for at least a further five years.”

Organic Growth

Organic growth in net sales continued its positive trend with an increase of 11.2% (7.1% CER) compared to Q2 2014.

This was driven particularly by a new contract in Sweden to provide histopathology services, increased volumes to private doctors and strong performance in Switzerland and Norway. There were also new contracts secured with hospitals in Portugal, Spain and France.

Cost Savings

The results reported today show €3.7m of cost savings in Q2 and a total of €6.6m in the year to date. These results are on target for the quarter but the strategic cost saving initiative is now expected to deliver a total of €12m savings for the full year 2015 – higher than the originally planned €10m.

The most recent savings have been driven by continued lab consolidation, implementing efficient procedures in our laboratories, procurement savings and the initial results of our benchmarking projects, for example in bacteriology. Following the success of the cost leadership initiatives in 2014-5 further cost reduction targets are being agreed for 2016 and beyond.

Merger and Acquisition Activities

IHCP, acquired by Unilabs during May, is the largest pathology player in the South West of France. The acquisition is part of an ongoing strategy to consolidate a strong position in pathology in France. A further deal is signed and will complete in Q4 2015.

A further strengthening of Unilabs cash position during Q2 confirms that funds exist to support further M&A activity in 2015. The focus will be on medium sized deals in existing markets but opportunities to add in new markets will also be considered. Criteria have been established and approximately 25 potential targets have been identified.

Overview and outlook

Commenting further on the results and the outlook for the remainder of the year Mr Lamers added, “We continue to hear very positive stories from around Europe about how our stories are at the heart and start of effective treatment decisions that positively impact people’s health & wellbeing. We are all motivated by this critical contribution to healthcare and the financial performance of the business is a reflection of the work of all our people to deliver a great service. Based on these latest results we have made an upward adjustment in our revenue and EBITDA targets for 2015.”

-ends-

*EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization

†CER: Constant Exchange Rates

Notes to Editors

About Unilabs

Unilabs aspires to be at the heart and start of all effective treatment decisions. With over 125 laboratories and a broad catalogue of more than 2,500 diagnostic tests, Unilabs is one of Europe’s leading providers of clinical laboratory testing and medical diagnostic imaging services. Headquartered in Geneva, the Unilabs Group services sectors ranging from private and public healthcare providers to local governments, from pharmaceutical companies to the general public.

Unilabs mediates care. In 2014, its laboratories carried out over 100 million diagnostic tests ensuring swift, accurate diagnosis of patient samples, 5,000 IVF procedures and over 1 million radiology exams.

The importance of medical diagnostics is expanding; as focus shifts from treatment to prediction and prevention, and innovations in molecular and genetic testing continue to emerge, Unilabs aims to be at the heart of this healthcare transformation.

Unilabs Group employs more than 5,000 people worldwide, successfully operating laboratory and medical diagnostic imaging facilities in 11 countries. Its network of facilities provides it with one of the broadest geographic footprints of any clinical laboratory and medical diagnostic services provider in Europe.

For more information about Unilabs, please visit www.unilabs.com.

Forward Looking Statement

This press release contains various “forward-looking statements” that reflect management’s current view with respect to future events and anticipated financial and operational performance. Forward-looking statements as a general matter are all statements other than statements as to historical fact or present facts or circumstances. The words “aim,” “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “guidance,” “intend,” “may,” “plan,” “potential,” “predict,” “projected,” “risk,” “should,” “will” and similar expressions or the negatives of these expressions are intended to identify forward-looking statements. Other forward-looking statements can be identified in the context in which the statements are made. These forward-looking statements may include, among other things, statements relating to: our future financial position; our strategy and outlook; our liquidity, capital resources and capital expenditure; our planned investments; acquisition opportunities in the markets in which we currently, or may in the future, operate; expectations as to future growth in demand for our products and services; demographic trends; general economic trends and other trends in our industry; the impact of regulations on us and our operations; the competitive environment in which we operate; the outcome of legal proceedings; extreme weather conditions in the markets where we operate; failure to comply with privacy laws; and failure to comply with environmental health and safety laws. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can provide no assurances that such expectations will prove to be correct and such statements are not guarantees of future performance because they are based on numerous assumptions. Forward-looking statements are based on information available at the time those statements are made and management's good faith belief as of that time with respect to future events and are subject to known and unknown risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. For a further discussion of such risks please see the risks discussed under the caption “Risk Factors” beginning on page 26 of the Offering Memorandum dated July 10, 2013 (the “OM”) in connection with our offering of senior secured notes and second lien PIK toggle notes (collectively, the “Notes”). You should not place undue reliance on any forward-looking statement. Any forward-looking statement speaks only as at the date on which it is made and we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contacts

For further information or to arrange an interview with Unilabs CEO Jos Lamers and/or CFO Karl-Erik Clausen please contact:
Sarah Newman
Clark Health Communications
T: +44 (0)203 574 4768
M: +44 (0)7860 929 266
E: unilabs@clarkhealthcomms.com
Further investor relations information is available by registering at www.unilabs.com/investors

Contacts

For further information or to arrange an interview with Unilabs CEO Jos Lamers and/or CFO Karl-Erik Clausen please contact:
Sarah Newman
Clark Health Communications
T: +44 (0)203 574 4768
M: +44 (0)7860 929 266
E: unilabs@clarkhealthcomms.com
Further investor relations information is available by registering at www.unilabs.com/investors