Second Quarter highlights
• Revenues of USD 12.0 million (USD 13.5 million at constant exchange rates*), representing a growth of
5.5% over Q2 09 at constant exchange rates*.
• EBITDA of USD 2.8 million (23.3% of revenues).
• EBIT of USD 1.5 million (12.5% of revenues) with net income of USD 1.5 million.
• Confirmed outlook for 2010.
Tel Aviv/Zurich, 4 August 2010 – 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 2010.
Erez Alroy, Co-CEO of SHL Telemedicine, stated: “The results for the second quarter and half year continue to be in line with our expectations reflecting the steady and continued progress and acceptance of our products and services in our markets. We are already making good initial progress in penetrating the German consumer market while preparations are moving ahead for the launch planned for the second half of the year in the UK.”
Germany
It seems that the longer sales cycles experienced in the last year resulting from the healthcare reform, which led to aggressive consolidation between health insurers, are starting to thaw. As a consequence we are seeing the first signs of normalization and back to regular business practices take place with already two additional co-operations entered into in the last month.
Consumer markets
SHL is making good initial progress in the German consumer market and is working on launching the cardiac service in the UK in the second half of the year. During the half year SHL has invested around USD 2 million and expect investment in its consumer services to be around the same amount for the second half of the year.
Financial highlights
Revenues increased in the first half of the year, while operating and net profit remained on par with 2009 results. This is primarily due to increased investments in sales and marketing in the German consumer market where SHL began marketing its personal cardiac service for private pay customers.
Revenues for the second quarter amounted to USD 12.0 million compared to USD 11.3 million in Q2 2009. At constant exchange rates* revenues for the quarter amounted to USD 13.5 million compared to USD 12.8 million in Q2 2009 reflecting a growth of 5.5%.
Revenues for the first half of the year amounted to USD 24.4 million compared to USD 22.0 million in H1 2009. Revenues on the basis of constant exchange rates* amounted to USD 26.7 million compared to USD 24.9 million in the first half of 2009, which reflects a growth of 7.2%. Growth is mainly due to the growth in SHL’s German operations.
Gross profit for the quarter reached USD 8.1 million (67.5% of revenues) compared to USD 7.5 million (66.4% of revenues) in Q2 2009. In the first half of 2010 gross profit amounted to USD 16.2 million (66.4% of revenues) compared to USD 14.6 million (also 66.4% of revenues) in the first half of 2009.
EBITDA for the quarter amounted to USD 2.8 million (23.3% of revenues) compared to an EBITDA of USD 2.9 million (25.7% of revenues) in Q2 2009. EBITDA for the first half of 2010 amounted to USD 5.9 million (24.2% of revenues) – an increase of 7.3 % over the EBITDA of USD 5.5 million (25.0% of revenues) in the comparable period.
EBIT for the quarter amounted to USD 1.5 million (12.5% of revenues) compared to USD 1.7 million (15.0% of revenues) in Q2 2009. EBIT for the first half of 2010 amounted to USD 3.2 million (13.1% of revenues) compared to an EBIT of USD 3.2 million (14.5% of revenues) in H1 2009.
SHL’s net income for the quarter totaled USD 1.5 million compared to USD 1.6 million in the second quarter of 2009. For the first six months of 2010 SHL reports a net income of USD 3.1 million, an increase of 10.7% from USD 2.8 million in H1 2009.
Cash provided by operations for the second quarter and half year improved and amounted to USD 2.8 million and USD 3.4 million, respectively compared to USD 1.6 million and USD 1.8 million in Q2 and H1 of 2009, respectively. Cash, cash equivalents and marketable securities at June 30, 2010 amounted to USD 19.6 million.
Balance sheet. SHL’s assets at 30 June 2010 totalled USD 86.9 million with shareholders’ equity amounting to USD 66.6 million (76.6% of balance sheet) compared to assets of USD 89.4 million and shareholders’ equity of USD 65.3 million at 31 December 2009.
Confirmed outlook 2010
Management is expecting consolidated revenues to reach USD 53-55 million, assuming constant exchange rates*. Given the investments in sales and marketing for the launch of the cardiac emergency service in Germany and the UK, net profit is expected to be in the range of USD 4-6 million, again assuming constant exchange rates*.
