Revenues and EBITDA up thanks to business development and the larger consolidation area because of the acquisitions made in the quarter. More than 5,500 beds in operation
Positive net result of 1.2 million euro before non-recurring costs incurred in the quarter, in relation to the IPO procedure currently in progress and the acquisitions made
Consolidated results of Q1 2010
· Revenues: € 76.1 million (+14.4% from € 66.5 million in Q1 2009)
· EBITDA: € 10.2 million before non-recurring costs (+36.1% from € 7.5 million in Q1 2009); € 8.2 million after non-recurring costs (+9.1%);
· Net result: a positive € 1.2 million before non-recurring costs (breakeven in Q1 2009); net result close to breakeven after non-recurring costs;
· Net debt: € 209.7 million (€ 163.5 million at December 31 2009), offset by owned properties with a book value of € 142 million
Milan, April 26 2010 – The Board of Directors of KOS SpA (CIR group) met today under the chairmanship of Claudio Stabon to examine the results of first quarter 2010.
Performance of operations
The KOS group is one of the main Italian private operators in the care-home sector. Founded in 2002, the group is today active in three business areas: nursing homes (RSAs), rehabilitation centres and hospital management.
In the first quarter of 2010, at consolidated level, KOS posted a significant rise in its main operating indicators compared to 2009, thanks to the development of all the business and the enlargement of the consolidation area following the acquisitions made in the period.
Consolidated revenues rose by 14.4% to 76.1 million euro. EBITDA also grew significantly before non-recurring costs (+36.1% to 10.2 million euro). The net result before non-recurring costs was a positive figure of 1.2 million euro. The non-recurring costs incurred in the first quarter were mainly related to the IPO procedure currently in progress and to the acquisitions made in the period. During the quarter the KOS group continued to pursue its growth strategy in its two main businesses (nursing homes and rehabilitation) through the acquisition of a facility in the Marche and two nursing homes in Lombardy.
KOS today manages 59 facilities in seven regions of Italy (Emilia-Romagna, Liguria, Lombardy, Marche, Piedmont, Veneto and Trentino Alto-Adige) with over 5,500 beds in operation, plus approximately 400 under construction.
Consolidated results
The consolidated revenues of first quarter 2010 totalled 76.1 million euro and were up by 14.4% on 2009 (66.5 million euro), thanks to the development of all areas of the business and to the new acquisitions made in the period.
In the first quarter the company incurred non-recurring costs of approximately 2 million euro in relation to the IPO procedure currently in progress (1.4 million euro) and to the acquisitions made in the period (0.6 million euro, equally distributed between the RSA business and rehabilitation).
The gross operating margin (EBITDA) before non-recurring costs amounted to 10.2 million euro and was up by 36.1% on the first quarter of 2009 (7.5 million euro). EBITDA after non-recurring costs came in at 8.2 million euro, up by 9.1%.
The net result for the quarter before non-recurring costs was a positive figure of approximately 1.2 million euro, versus an overall breakeven (0.1 million euro) in the first quarter of 2009. The net result after non-recurring costs was close to breakeven (-0.4 million euro).
The consolidated net debt of the KOS group at March 31 2010 amounted to 209.7 million euro (163.5 million at December 31 2009), offsetting owned properties with a carrying value of approximately 142 million euro. The rise compared to the figure for year end 2009 was due mainly to the acquisitions made during the quarter and to the change in working capital.
The KOS group had 3,647 employees at March 31 2010 (3,421 at December 31 2009).
Results by business area
RSAs (Nursing homes)
In the RSA (nursing home) sector, the KOS group is the main private operator in the Italian market. The quarter closed with revenues of 30.9 million euro (+9.4% from 28.2 million euro in the first quarter of 2009). EBITDA before non-recurring costs amounted to 3.3 million euro (+51.5% compared to 2.2 million euro in the first quarter of 2009). Non-recurring costs came to 0.3 million euro. In the RSA sector the KOS group today manages 37 nursing homes, with a total of 3,829 beds in operation.
Rehabilitation
In the functional and psychiatric rehabilitation area, the KOS group is the fourth private operator in the Italian market. During the quarter the group achieved revenue growth of 25.4% (33.2 million euro up from 27.2 million euro in the same period of 2009). EBITDA before non-recurring costs grew by 22.8% (5.2 million euro versus 4.3 million euro in 2009). Non-recurring costs came to 0.3 million euro. In the rehabilitation sector the group today manages 12 rehabilitation units, 9 psychiatric rehabilitation communities and 13 day hospitals, for a total of 1,600 beds in operation.
Hospital management
In hospital management, the KOS group closed the quarter with revenues of 12 million euro (11 million euro in the same period of 2009). EBITDA was 2.3 million euro (+21% from 1.9 million euro in 2009). In this business area the KOS group manages seven diagnostic imaging departments in public and private hospitals and the “Fratelli Montecchi” Hospital in Suzzara (Mantua). Significant events which have occurred since March 31 2010
In April 2010, the subsidiary Residenze Anni Azzurri S.r.l. (RSA) signed a preliminary agreement to acquire a company that will in future manage a nursing home in Rapallo (Genoa).
Still in April, the sale was finalized of the property on which a nursing home is being built in Monza, for an amount of 7.4 million euro, with a lease-back agreement in favour of Residenze Anni Azzurri S.r.l. ***
The KOS group (http://www.kosgroup.com/)
KOS SpA (CIR group), founded in 2002, is the company at the head of a prime Italian healthcare group operating in the care-home sector. The group is active in three specific business areas:
· Nursing homes (RSAs): KOS is the top private operator in Italy by number of beds in nursing homes for the non self-sufficient elderly, where it operates under the brand “Anni Azzurri”.
· Rehabilitation: KOS is the fourth private operator in Italy by number of beds in the management of functional and psychiatric rehabilitation centres, where it operates under the brands “Santo Stefano” (functional rehabilitation) and “Redancia” (psychiatric rehabilitation).
· Hospital management: providing and managing complex hi-tech medical technology services (diagnostic imaging, nuclear medicine and radio therapy) for the National Health Service as an external provider under the brand “Medipass”. In this business area the group also manages the “Fratelli Montecchi” Hospital in Suzzara (Mantova).
KOS manages 59 facilities in central and northern Italy, with a total of over 5,500 beds, plus approximately 400 under construction. In 2009 the group reported consolidated revenues of 273.4 million euro and a gross operating margin (EBITDA) of approximately 33 million euro. The breakdown of 2009 revenues by business sector is as follows: Nursing homes (RSAs) 43%, Rehabilitation 41%, Hospital management 16%. The group had approximately 3,400 employees at the end of 2009.
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