SHL TELEMEDICINE LTD. 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(TM) 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(TM) 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(TM) 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
(except per (constant
share amounts) currency)
------------- --------
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.
(loss)
-----
Basic EPS 0.01 0.00 n.a. 0.01 n.a.
(LPS)
----
SHL Telemedicine - consolidated key figures - H1 2014
in USD million H1 2014 H1 2013 % change H1 2014 % change
(except per (constant
share amounts) currency)
------------- --------
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.
(loss)
-----
Basic EPS 0.01 (0.03) n.a. 0.01 n.a.
(LPS)
----
*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
USD m
-----
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%
currency)
--------
% change in constant 1.7% 143.8%
currency
--------
Revenues by geographic distribution - H1 14
Israel Germany
------ -------
% of total USD m % of total
USD m
-----
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%
currency)
--------
% change in constant 1.8% 167.7%
currency
--------
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, ereza@shl-telemedicine.com
-- Martin Meier-Pfister, IRF Communications, Phone: +41 43 244 81 40,
shl@irfcom.ch
-- Garth Russell, KCSA Strategic Communications, Phone (U.S.A.): +1 212
896 1250, grussell@kcsa.com
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
investments and actuarial gains
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 H1 14 2013
(USD thousands, except per share data)
Q2 13 H1 13
--- ----- -----
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
----------------------------------------- ---- ---- ---- ----- ----
Other Comprehensive income not to be
reclassified to profit or loss in subsequent
periods:
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
to profit or loss in subsequent periods
Transfer to the statement of income in respect of (489) (545) 146
available-for-sale investments
13 (19)
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 2013
Q2 2013 H1 2014 H1 2013
--- ------- ------- -------
Unaudited Unaudited Unaudited Unaudited Audited
Net income (loss) 79 58 82 (287) 2,232
Adjustment required to reconcile net income (964) (3,340) 400
(loss) to net cash provided by (used in)
operating activities
(822) 3,459
Net Cash provided by (used in) Operating (885) (3,258) 2,632
Activities
(764) 3,172
--- ---- -----
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 - - 29
equipment
14 14
Purchase of short-term investments (3,130) (2,665) (5,056) (3,113) (8,511)
Proceeds from sale of short-term investments 10,085 12,529 6,402
905 1,654
--- --- -----
Net Cash provided by (used in) Investing 4,728 4,465 (3,238)
Activities
(2,562) (3,349)
--- ------ ------
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 17 489
cash equivalents
56 278
--- --- ---
Increase (decrease) in cash and cash 2,215 (578) (1,881)
equivalents
(3,512) (1,156)
Cash and cash equivalents at the beginning of 5,939 8,732 10,613
the period
12,969 10,613
--- ------ ------
Cash and Cash equivalents at the end of the 8,154 8,154 8,732
period
9,457 9,457
--- ----- -----
SOURCE SHL Telemedicine Ltd.
