Raising net income guidance for the year.
• Revenues in Q2 09 increased to USD 11.3 million growing by 16.4% over Q2 08
at constant exchange rates*, with Germany up 50% over Q2 08 at constant
exchange rates*.
• Quarterly EBITDA and EBIT were up 26.1% and 80% over Q2 08 reaching USD
2.9 million (25.7 % of revenues) and USD 1.8 million (15.9 % of revenues),
respectively.
• Net income reached USD 1.6 million (14.2 % of revenues) for the second quarter
and USD 2.8 million (12.7% of revenues) for the first half of 2009.
• SHL Telemedicine raises its net income guidance for the full year to between
USD 5 and USD 6 million.
Tel Aviv/Zurich, 29 July 2009 – SHL Telemedicine Ltd. (SIX Swiss Exchange: SHLTN), a
leading provider and developer of advanced personal telemedicine solutions, today
announced results for the second quarter and half year of 2009.
In Q2 2009, SHL’s various business lines continued to show growth. SHL’s German
operation continued recruiting new subscribers at a strong pace leading to a revenue growth
of over 10% from Q1 09 and of 50% from Q2 08. This continued growth contributed to
improved margins, cash flow and overall financial performance. However, due to the
strengthening of the USD against the EUR and NIS, only part of the actual revenue growth is
reflected in SHL’s consolidated results.
Financial highlights
Revenues for the second quarter amounted to USD 11.3 million compared to USD 11.0
million in Q2 2008. At constant exchange rates* revenues amounted to USD 12.8 million,
reflecting a 16.4 % increase over the second quarter of 2008. This increase was mainly
driven by the continued growth of SHL’s German operation where revenues at constant
exchange rates reached USD 5.7 million up 50.0 % from USD 3.8 million in Q2 2008.
Revenues for the first half of the year amounted to USD 22.0 million compared to USD 21.4
million in H1 08. Revenues on the basis of constant exchange rates* amounted to USD 24.9
million, which reflects a 16.4 % increase from H1 2008. Again, the increase is mainly due to
the growth in SHL’s German operation where revenues at constant exchange rates* grew by
50.0 %.
The EBITDA margin of the Company for the quarter continued to improve and reached
25.7 % of revenues (USD 2.9 million) compared to an EBITDA margin of 20.9 % of revenues
in Q2 2008. The improved financial performance was also reflected in the EBIT for the
quarter, which reached USD 1.8 million (15.9 % of revenues), an increase of 80% over the
EBIT in Q2 2008 of USD 1.0 million (9.1 % of revenues).
The EBITDA in H1 09 amounted to USD 5.5 million – an increase of 34.1% over the EBITDA
of USD 4.1 million in the comparable period. The EBIT in H1 09 almost doubled, reaching
USD 3.3 million (15.0 % of revenues), compared to an EBIT of USD 1.7 million (7.9% of
revenues) in H1 08.
SHL’s net income for the quarter totaled USD 1.6 million (14.2 % of revenues) an increase
of 129% over the net income of USD 0.7 million in Q2 2008, prior to the recording of a
positive tax adjustment of USD 3.3 million. For the first six months, net income increased by
115.4% to reach USD 2.8 million, compared to the net income of USD 1.3 million in H1 2008.
Cash provided by operations for the quarter improved by USD 3.0 million over that of Q2 08
amounting to USD 1.6 million in Q2 09 compared to cash used in operations in Q2 08 of
USD 1.4 million. Cash reserves at June 30, 2009 amounted to USD 21.1 million.
Balance sheet. SHL’s assets at June 30, 2009 totalled USD 81.6 million with shareholders’
equity amounting to USD 60.4 million (74 % of balance sheet).
Commenting on the results Erez Alroy, Co-CEO of SHL Telemedicine, stated: ”We are
pleased to announce another quarter of improved financial performance that is strongly
supported by our organic growth in Germany. We look forward to signing additional
agreements with health insurers in Germany. Consequently our business outlook for the
remainder of the year continues to be bright.”
Germany
SHL’s German operations are developing well. Studies conducted in Germany validating that
SHL’s telemedicine solutions improve quality of life for chronically ill heart patients and
achieve a significant reduction of health care costs were presented at the annual meeting of
the Deutschen Gesellschaft für Kardiologie (DGK) – German Cardiology Society – in
Mannheim in April.
Effective as of July, SHL’s German operation PHTS Telemedizin, Germany’s leading
provider of telemedical care programs adopted SHL’s global brand and became SHL
Telemedizin. SHL Telemedizin will continue to offer its telemedicine services from its medical
monitor center in Dusseldorf. Under its strong and recognised world wide brand, SHL will
press forward to further develop and promote the future of telemedicine.
Frost & Sullivan applauds SHL
In April, the ‘2008 European Telemedicine Systems for Cardiac Monitoring Product
Innovation of the Year Award’ was presented to SHL Telemedicine in recognition of its next
generation personal ECG device – the CardioSen’C™. This full 12 lead ECG personal digital
cellular transmitter is a monitoring system that uses either cellular network (GPRS) or public
switched telephone network (PSTN) to transmit real-time medical cardiological data
remotely.
Outlook 2009
With its diversified telemedicine service lines, SHL expects to continue its growth trend in the
second half of 2009. Assuming constant currency exchange rates, management reaffirms its
revenue guidance for the full year of USD 51-53 million and raises its net income guidance
for the full year to between USD 5 and USD 6 million (up from USD 3.5 to USD 5 million).
