aap Implantate AG / Annual financial statements 2013: aap lays cornerstone to become the leading EU based trauma company 2013: Sales EUR 40 million (+10%); EBITDA EUR 7.0 million (+15%) . Processed and transmitted by NASDAQ OMX Corporate Solutions. The issuer is solely responsible for the content of this announcement.
aap Implantate AG (XETRA: AAQ.DE), delivered on its financial and strategic goals, setting the stage for long term growth. We have made progress in 2013, especially in the growth of the Trauma business, further development of the technologies silver coating and magnesium alloys, the divestment of our non-core anti-adhesion product Adcon® and our orthopedic reconstructive implant business (hip, knee and shoulder products) as well as with the divestment of our contract manufacturing business (EMCM B.V.) early 2014.
2013 - Results and Milestones
| In EUR million | 2013 | 2012 | Change |
| Sales | 40.0 | 36.4 | +10 % |
| EBITDA (normalized)* | 7.0 | 6.1 | +15 % |
| EBIT (normalized)* | 3.8 | 3.0 | +27 % |
| Cash-EBT | 3.5 | 2.1 | +67 % |
| Economic profit[1] | 0.4 | -1.6 | >100 % |
* EBITDA/EBIT without one-time effects from share disposal and costs involved (2013) as well as write-ups on intangible assets (2012)
[1] Economic profit = (ROCE-WACC) x capital employed / Return on Capital Employed (ROCE) is a ratio that indicates the efficiency and profitability of a company's capital investments. Thereby is the EBIT divided by the total capital minus short term liabilities and cash / Weighted Average Cost of Capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets.
In 2013 we achieved important goals which are summarized as follows:
- Sales revenue increase of 10% to EUR 40 million
- Normalized EBITDA growth of 15% from EUR 6.1 million to EUR 7.0 million
- First time realization of an economic profit of EUR 0.4 million
- Trauma sales (incl. LOQTEQ®) increased from EUR 6.3 million to EUR 9.6 million
- Further market penetration with our LOQTEQ®-system and a sales boost of EUR 2.0 million to EUR 5.0 million (+150 %)
- Net debt reduced from EUR 4.3 million to EUR 3.0 million (incl. discontinued operations)
- Signed a development and supply agreement for a PMMA bone cement and mixing system with a global orthopedic company
- Signed a license agreement for the anti adhesive product Adcon® for EUR 1.6 million
- Spin off of recon business into a joint venture (aap Joints GmbH); sell off of 67% of the shares for EUR 3 million
In 2013, aap increased sales from EUR 36.4 million to EUR 40 million (+10%). The stated goal of a 10% sales increase for 2013 which was published early in 2013 was successfully accomplished. The sales increase was supported especially by the Trauma business, which increased from EUR 6.3 million to EUR 9.6 million but also from the signing of multiple license agreements. The development of our innovative LOQTEQ® portfolio was particularly positive with a sales increase of 150% to EUR 5.0 million.
The EBITDA increased by 4% from EUR 7.1 million to EUR 7.4 million and the EBIT decreased from EUR 3.2 million to EUR -2.1 million. Both financial years contain one-time effects; a normalized EBITDA and EBIT (without one-time effects) make a comparison easier. The one-time effects in the EBITDA 2013 are a positive effect in connection with the divestment of the shares in aap Joints GmbH (EUR 0.6 million) as well as the incurred costs in connection with the divestment of the contract manufacturing business (EMCM B.V.; EUR 0.2 million). In 2012, an appreciation of assets amounting EUR 1.0 million, was reported. The EBIT was affected by extraordinary depreciations (2013: Goodwill EUR 4 million, capitalized development costs EUR 2.3 million; 2012: capitalized development costs EUR 0.8 million) which are associated with the divestment of EMCM as well as the change in the principles for the capitalization of development costs in the Biomaterials business. Without one-time effects, the normalized EBITDA amount to EUR 7.0 million (previous year: EUR 6.1 million; +15%) and the normalized EBIT to EUR 3.8 million (previous year: 3.0 million; +27%). The stated goal at the beginning of 2013 for an increased EBITDA growth of 15% and a corresponding profitable growth was therefore also accomplished.
Evaluation of the 2013 Management Agenda
| Customers | ||
| Goals of the 2013 Management Agenda | Results of the 2013 Management Agenda | Goal achieved |
| Grow Trauma sales to >EUR 10 million (+60%), including LOQTEQ® sales >EUR 5 million (+140%) | Trauma total sales: EUR 9.6 million LOQTEQ® sales: EUR 5.0 million | Yes |
| Appoint distributors in seven of the nine BRICS- and SMIT-countries (2012: four) | Russia was added, contracts signed now with five out of nine countries | Partly, distributors in 5 out of 9 countries |
| Expand LOQTEQ® portfolio to twelve plates (2012: six) | CE for 9 plating systems in 2013 | Partly |
| Supply allograft scCO2 products to bone banks in at least four EU countries, preferably including Germany | Signed contracts for Belgium, Netherlands, Austria and Turkey; Germany in application | Yes, even though permission for Germany is pending |
| Innovation | ||
| Goals of the 2013 Management Agenda | Results of the 2013 Management Agenda | Goal achieved |
| Freshness index of at least 20% (industry benchmark) | Freshness index of 21.5% as proportion of product sales was achieved | Yes |
| Develop new instrument sets for LOQTEQ® | Improvements made for various instruments | Yes |
| Initiation of new Trauma portfolio "Polyaxial" | Initiation of development of in-house polyaxial locking system | Yes |
| Preparation of application file for first silver coated trauma product | Good progress made, including a related technology patent granted in the USA | Yes |
| Finance | ||
| Goals of the 2013 Management Agenda | Results of the 2013 Management Agenda | Goal achieved |
| Profitable growth: sales +10% and EBITDA +15% | Sales +10% and EBITDA +15% | Yes |
| Working capital ratio to sales > 2.2 | Working capital ratio 2013: 2.4 | Yes |
| Positive Economic Profit (ROCE > WACC) | For the first time achieved a positive economic profit of EUR 0.4 million | Yes |
| DCR < 2 and ICR > 10 (Basis: operative EBITDA) | DCR 0.5 and ICR 32.9 | Yes |
| Organization/IT | ||
| Goals of the 2013 Management Agenda | Results of the 2013 Management Agenda | Goal achieved |
| Further optimization of supply chain by implementing more ERP functionality | Evaluation of the ERP systems and of the functionalities with consultants; concrete actions planed for 2015 | Partly |
| Study feasibility of outsourcing predefined products | Completed and on going | Yes |
| Divestment/ out licensing non-core products and IP | Sold the Recon business and outlicensing of the non-core product Adcon®; License agreement for BonOs Inject® (cement used in the spinal region) | Yes |
Outlook 2014
The ongoing implementation of aaps focus strategy will be the cornerstone in the financial year 2014. We want to generate strong sales growth with a focus on the Trauma business and the LOQTEQ® product family in particular.
After der divestment of the contract manufacturing business in February 2014, the management board has set itself the following, updated goals for 2014:
- Sales growth with an increase of 22% to EUR 35 million (previous year: EUR 28.6 million) for the continued operations Trauma and Bone cement and mixing systems
- EBITDA between EUR 5 million and EUR 6 million (growth of 0% to 20%)
- Growing Trauma sales to > EUR 15 million (>50%)
- Appointing a distributor in the USA and further expansion of the distribution network beyond BRICS- and SMIT-countries
- Accelerate the development of silver-coated Trauma products
- Expanding the LOQTEQ® portfolio; striving for >90% indication coverage
- Sustain Freshness index of >20%
In the first quarter of 2014 we expect sales between EUR 6.8 million and EUR 7.0 million and an EBITDA between 0 and EUR 0.5 million. The contract manufacturing business (EMCM B.V.) will be included only until the end of February 2014.
The goal is to increase our Trauma activities through a combination of organic growth and additional acquisitions. In order to further accelerate the transformation of aap into an international Trauma company, we have initiated studies to consider the position of aap Biomaterials GmbH (Business with bone cements and mixing systems) as part of our business portfolio.
The full consolidated financial statements of aap Implantate AG will be published latest by April 30, 2014. The reason for this delayed publication lies with the divestment of our subsidiary EMCM B.V. by the end of February and the resulting extensive accounting and reporting requirements as well as the translation of the approved consolidated financial statements from German into English.
The supervisory board already approved the consolidated and individual financial statements of aap Implantate AG as of December 31, 2013. Also, both financial statements received the unqualified audit opinion by our independent auditor. Due to the growing number of non-German speaking investors and other stakeholders as well as the regulations of the German stock exchange which require corporate publications both in German and English, we have decided to delay the publication until the end of April. This press release in German and English is based on the consolidated financial statements as of December 31, 2013, which is approved and issued with an unqualified opinion by the independent auditor. It contains next to the consolidated balance sheet, the consolidated statement of comprehensive income and the consolidated cash flow statement and the consolidated schedule of changes in equity an overview of selected financial figures.
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aap Implantate AG (ISIN DE0005066609) - Prime Standard/Regulated Market - All German stock markets -
About aap Implantate AG
aap is a global medical device company headquartered in Berlin, Germany that develops, manufactures and markets innovative biomaterials and implants that are used in orthopedic procedures. The Company's products, which include a full line of plating systems, cannulated screws and bone cement products, are primarily used in the orthopedic specialty areas of trauma and spine repair. The Company's products are sold through its direct sales force, distribution partners and license agreements with OEM partners. aap's stock is listed in the Prime Standard segment of the Frankfurt Stock Exchange. For more information, please visit www.aap.de, or download the Company's investor relations app from the Apple's App Store or Google Play.
Forward-looking statement
This release may contain forward-looking statements based on current experience, estimates and projections of the management board and currently available information. They are not guarantees of future performance. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. Many factors could cause the actual results, performance or achievements of aap to be materially different from those that may be expressed or implied by such statements. These factors include those discussed in aap's public reports. Forward-looking statements therefore speak only as of the date they are made. aap does not assume any obligation to update the forward-looking statements contained in this release or to conform them to future events or developments.
For inquiries please contact: aap Implantate AG, Marc Heydrich, Investor Relations, Lorenzweg 5, 12099 Berlin, Germany
Tel.: +49 30 7501 9-134, fax: +49 30 7501 9-290, e-mail: m.heydrich@aap.de
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Selected Figures in EUR million
| Sales and result | 1.1. - 31.12.2013 | 1.1. - 31.12.2012 | Change |
| Sales | 40.0 | 36.4 | 10% |
| EBITDA (normalized)[1] | 7.0 | 6.1 | 15% |
| EBITDA-margin (sales) | 18% | 17% | |
| EBIT (normalized)[1] | 3.8 | 3.0 | 27% |
| EBIT margin (sales) | 10% | 8% | |
| Cash-EBT[2] | 3.5 | 2.1 | 67% |
| Net result | -3 | 2 | -208% |
| Cash flow and investments | 1.1. - 31.12.2013 | 1.1. - 31.12.2012 | Change |
| Operative Cash-Flow | 3.5 | 7.1 | -51% |
| Investing activities in intangible assets | 2.1 | 3.0 | -30% |
| Investing activities in tangible assets | 3.6 | 0.9 | 300% |
| Total investing activities | 5.7 | 3.9 | 46% |
| Value development | 31.12.2013[3] | 31.12.2012 | Change |
| Intangible assets | 14.5 | 39.4 | -63% |
| Tangible assets | 5.9 | 5.1 | 16% |
| Working capital | 13.9 | 14.9 | -7% |
| Working capital Ratio (sales)[4] | 2.9 | 2.4 | 18% |
| Non-current assets | 22.4 | 44.9 | -50% |
| Current assets | 42.8 | 23.7 | 81% |
| Capital structure | 31.12.2013 | 31.12.2012 | Change |
| Total assets | 65.3 | 68.6 | -5% |
| Shareholders equity | 48.5 | 50.9 | -5% |
| Equity ratio | 74% | 74% | |
| Debt coverage ratio (DCR) | 0.5 | 0.8 | -38% |
| Interest coverage ratio (ICR) | 32.9 | 11.8 | 179% |
| Shares[5] | 31.12.2013 | 31.12.2012 | Change |
| Total amount of shares (million pieces) | 30.7 | 30.7 | 0% |
| Share price (closing) (EUR) | 2.15 | 1.34 | 60% |
| Market Capitalization (million EUR) | 65.9 | 41.1 | 61% |
| Share price (average) (EUR) | 1.45 | 1.02 | 42% |
| Share price (high) (EUR) | 2.22 | 1.45 | 53% |
| Share price (low) (EUR) | 1.22 | 0.7 | 74% |
| Average Volume/day (pieces) | 30,426 | 29,029 | 5% |
| Employees group | 31.12.20133 | 31.12.2012 | Change |
| Employees (Headcount) | 290 | 261 | 11% |
| Employees (FTE) | 274 | 247 | 11% |
[1] EBITDA/EBIT without one-time effects from share disposal and costs involved (2013) as well as appreciation on intangible assets (2012)
[2] EBT excluding capitalized development work and depreciation thereof
[3] Figures considering intangible assets and debts of the discontinued operations that will be assumed by the buyer
[4] Sales for the last four quarters
[5] Closing prices XETRA
Consolidated Balance Sheet according to IFRS as of December 31, 2013
| 31.12.2013 | 31.12.2012 | |
| Assets | TEUR | TEUR |
| Non-current assets | 22,394 | 44,921 |
| Intangible assets | 14,502 | 39,403 |
| Goodwill | 1,568 | 12,490 |
| Capitalized Services | 12,074 | 21,858 |
| Intangible assets | 860 | 5,055 |
| Tangible assets | 5,906 | 5,107 |
| Trade receivables | 170 | 0 |
| At-Equity financial assets | 1,554 | 55 |
| Financial assets | 238 | 356 |
| Deferred taxes | 24 | 0 |
| Current assets | 42,843 | 23,669 |
| Inventories | 9,429 | 13,943 |
| Trade receivable | 6,866 | 4,226 |
| Receivables from service contracts | 281 | 0 |
| Other financial assets | 1,405 | 1,331 |
| Other assets | 348 | 471 |
| Cash and bank balances | 1,580 | 3,698 |
| Assets classified as held for sale | 22,934 | 0 |
| Total assets | 65,237 | 68,590 |
| 31.12.2013 | 31.12.2012 | |
| Liabilities and shareholders' equity | TEUR | TEUR |
| Shareholdersequity | 48,451 | 50,866 |
| Subscribed Capital | 30,670 | 30,670 |
| Capital reserve | 18,768 | 18,611 |
| Revenue reserve | 228 | 228 |
| Other Reserves | 490 | 608 |
| Consolidated Balance Sheet Profit/Loss | -1,705 | 749 |
| Non-current liabilities (above 1 year) | 3,115 | 4,706 |
| Financial liabilities | 2,144 | 2,000 |
| Other financial liabilities | 190 | 388 |
| Deferred taxes | 0 | 2,090 |
| Provisions | 27 | 27 |
| Other liabilities | 754 | 201 |
| Current liabilities (up to 1 year) | 13,671 | 13,018 |
| Financial liabilities | 2,568 | 4,486 |
| Advance payment | 0 | 1,125 |
| Gross amount due to customers for contract work | 25 | 0 |
| Trade accounts payable | 2,853 | 3,259 |
| Due to partners | 0 | 1,057 |
| Other financial liabilities | 1,491 | 1,753 |
| Provisions | 230 | 205 |
| Other liabilities | 558 | 1,133 |
| Liabilities due to discontinued business | 419 | 0 |
| Liabilities directly associated with assets classified as held for sale | 5,527 | 0 |
| Total Liabilities and Shareholders' equity | 65,237 | 68,590 |
Consolidated Statement of Comprehensive Income according to IFRS for the period January 1 to December 31, 2013
| 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||
| Continued operations | Discontinued operations | Consolidation | Group Total | ||||||
| TEUR | TEUR | TEUR | TEUR | TEUR | TEUR | TEUR | TEUR | ||
| Sales | 28,573 | 26,965 | 12,317 | 10,375 | -901 | -926 | 39,989 | 36,414 | |
| Changes in inventories of finished goods and work in progress | -704 | 3 | -265 | 176 | 0 | 0 | -969 | 179 | |
| Other own work capitalized | 1,742 | 2,416 | 279 | 328 | 0 | 0 | 2,021 | 2,744 | |
| Other operating income | 4,164 | 2,007 | 380 | 1,526 | -268 | -268 | 4,276 | 3,265 | |
| Cost of purchased materials and services | -8,282 | -8,724 | -4,565 | -2,978 | 897 | 926 | -11,950 | -10,776 | |
| Personnel expenses | -11,295 | -10,682 | -3,293 | -2,811 | 0 | 0 | -14,588 | -13,493 | |
| Depreciation of tangible assets and intangible assets | -4,362 | -1,959 | -5,107 | -1,952 | 0 | 0 | -9,469 | -3,911 | |
| Other operating expenses | -9,063 | -8,837 | -2,580 | -2,641 | 272 | 268 | -11,371 | -11,210 | |
| Other taxes | -54 | 0 | 0 | 0 | 0 | 0 | -54 | 0 | |
| Operating income | 719 | 1,189 | -2,834 | 2,023 | 0 | 0 | -2,115 | 3,212 | |
| Financial result | -179 | -427 | -2 | -64 | 0 | 0 | -181 | -491 | |
| Income / Expense from joint ventures and associates | 21 | -1 | 0 | 0 | 0 | 0 | 21 | -1 | |
| Result before income taxes (and minority interest) | 561 | 761 | -2,836 | 1,959 | 0 | 0 | -2,275 | 2,720 | |
| Income tax | 131 | 185 | -310 | -495 | 0 | -179 | -310 | ||
| Result before minority interest | 692 | 946 | -3,146 | 1,464 | 0 | 0 | -2,454 | 2,410 | |
| Minority interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Result after tax | 692 | 946 | -3,146 | 1,464 | 0 | 0 | -2,454 | 2,410 | |
| Valuation of available-for-sale assets* | -117 | 0 | 0 | 0 | 0 | 0 | -117 | 0 | |
| Income tax effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Total comprehensive income | 575 | 946 | -3,146 | 1,464 | 0 | 0 | -2,571 | 2,410 | |
| Net income per share (basic) in EUR | 0.02 | 0.03 | -0.10 | 0.05 | - | - | -0.08 | 0.08 | |
| Net income per share (diluted) in EUR | 0.02 | 0.03 | -0.10 | 0.05 | - | - | -0.08 | 0.08 | |
| Weighted average shares outstanding (basic) in units | 30,670 | 30,670 | 30,670 | 30,670 | - | - | 30,670 | 30,670 | |
| Weighted average shares outstanding (diluted) in units | 31,011 | 30,670 | 31,011 | 30,670 | - | - | 31,011 | 30,670 | |
| *Might be reclassified in future periods in other income in consolidated statement of comprehensive income | |||||||||
Consolidated Cash Flow Statement according to IFRS
| 01.01. - 31.12.2013 | 01.01. - 31.12.2012 | |
| TEUR | TEUR | |
| Net income (after tax) from continued operations | 692 | 946 |
| Net income (after tax) from discontinued operations | -3,146 | 1,464 |
| Net income (after tax) | -2,454 | 2,410 |
| Expenses from share based payments | 158 | 208 |
| Depreciation and impairment loss of fixed assets/current assets | 9,469 | 3,911 |
| Appreciation of fixed assets | 0 | -999 |
| Changes in deferred taxes | -121 | -86 |
| Changes in provisions | 95 | 11 |
| Gain/Loss from retirement of subsidiary | -782 | -945 |
| Gains/loss from retirement of fixed assets | 679 | 11 |
| Share of net profit/loss of associates | -21 | 1 |
| Changes in inventories, other receivables and other assets | -4,289 | 1,353 |
| Changes in other liabilities | 813 | 1,213 |
| Cash flow from operating activities | 3,547 | 7,088 |
| Additions to intangible and tangible assets | -5,719 | -3,902 |
| Incoming payments from investing activities | 24 | 9 |
| Incoming payments from subsidiary minus incurred cash | 0 | -2 |
| Incoming payments from retirement of shares from subsidiaries minus incurred cash | 3,475 | -25 |
| Cash flow from investing activities | -2,220 | -3,920 |
| Outgoing payments from raising ownership shares in subsidiaries | 0 | -101 |
| Inflow from financial liabilities | 2,262 | 2,963 |
| Redemption of shareholder loan | -750 | -2,395 |
| Redemption of financial liabilities | -3,815 | -2,001 |
| Redemption of finance lease | -217 | -88 |
| Dividend payments | 0 | 0 |
| Cash flow from financing activities | -2,520 | -1,622 |
| Decrease / Increase in cash & cash equivalents | -1,193 | 1,546 |
| Cash & cash equivalents at beginning of period | 3,698 | 2,152 |
| Cash & cash equivalents at end of period | 2,505 | 3,698 |
Consolidated Schedule of Changes in Equity
| Revenue reserves | Non-cash changes in equity | ||||||||||
| Subscribed capital | Capital reserve | Legal reserves | Other revenue reserves | Revaluation reserve | Available-for-sale assets | Total | Balance Sheet result | Shares of the group | Minority interests | Total | |
| 01.01.2012 | 30,670 | 40,422 | 42 | 186 | 608 | 608 | -23,575 | 48,353 | -3 | 48,350 | |
| Increase in shares | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Stock options | 0 | 208 | 0 | 0 | 0 | 0 | 0 | 208 | 208 | ||
| Settlement of capital reserve with balance sheet loss | 0 | -21,914 | 0 | 0 | 0 | 0 | 21,914 | 0 | 0 | ||
| Raising ownership shares in subsidiaries | 0 | -105 | 0 | 0 | 0 | 0 | 0 | -105 | 3 | -102 | |
| Income of the group 2012 | 0 | 0 | 0 | 0 | 0 | 0 | 2,410 | 2,410 | 2,410 | ||
| 31.12.2012 | 30,670 | 18,611 | 42 | 186 | 608 | 0 | 608 | 749 | 50,866 | 0 | 50,866 |
| Increase in shares | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Stock options | 0 | 157 | 0 | 0 | 0 | 0 | 0 | 157 | 157 | ||
| Valuation of available-for-sale assets | 0 | 0 | 0 | 0 | -118 | -118 | 0 | -118 | -118 | ||
| Raising ownership shares in subsidiaries | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Income of the group 2013 | 0 | 0 | 0 | 0 | 0 | 0 | -2,454 | -2,454 | -2,454 | ||
| 31.12.2013 | 30,670 | 18,768 | 42 | 186 | 490 | 0 | 490 | -1,705 | 48,451 | 0 | 48,451 |
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: aap Implantate AG via Globenewswire
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aap Implantate AG
Lorenzweg 5 Berlin Germany
WKN: 506660;ISIN: DE0005066609;
Listed: Freiverkehr in Börse Stuttgart,
Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg,
Freiverkehr in Börse Berlin,
Freiverkehr in Börse Düsseldorf,
Freiverkehr in Bayerische Börse München,
Freiverkehr in Niedersächsische Börse zu Hannover,
Prime Standard in Frankfurter Wertpapierbörse,
Regulierter Markt in Frankfurter Wertpapierbörse;
