aap Implantate AG: aap: Q1/2016 sales and EBITDA in line with expectations

aap Implantate AG / aap: Q1/2016 sales and EBITDA in line with expectations . Processed and transmitted by NASDAQ OMX Corporate Solutions. The issuer is solely responsible for the content of this announcement.

aap Implantate AG ("aap") achieved in the first quarter of 2016 sales and EBITDA at the group level in line with the guidance. Sales in the reporting period totalled EUR 5.1 million (Q1/2015: EUR 7.1 million) and were thus within the forecast published in February 2016 of EUR 4.5 million to EUR 6.0 million. For the first quarter of 2016 the company posted an EBITDA of EUR -1.9 million (Q1/2015: EUR 0.2 million) that was also within the forecasted corridor of EUR -2.0 million to EUR -1.0 million.

Deteriorated macroeconomic developments in BRICS and SMIT countries negatively influenced our planned sales development in the last year and presented a challenge in the first quarter of 2016 as well. This is characterized by the fact that markets as China, Turkey and Russia did not contribute to the sales in the first quarter. aap has reacted to this and focussed increasingly on established markets and already initiated necessary sales activities in these markets. Overall the company expects the measures to become effective in the second half of 2016.

Sales

In EUR million	Q1/2016	Q1/2015	Change on year
Trauma	2.2	2.6	-16%
Other	0.3	0.3	-3%
Sales continued operation	2.5	2.9	-14%
Sales discontinued operation	2.6	4.2	-39%
Group sales	5.1	7.1	-29%

EBITDA

In EUR million	Q1/2016	Q1/2015	Change on year
Group EBITDA	-1.9	0.2	> -100%
EBITDA discontinued operation	0.3	2.0	-85%
EBITDA continued operation	-2.2	-1.8	-23%

 

In the continued operation aap generated sales in the first quarter of 2016 of EUR 2.5 million (Q1/2015: EUR 2.9 million). The company's sales in the discontinued operation amounted to EUR 2.6 million (Q1/ 2015: EUR 4.2 million) in the reporting period.

 

EBITDA in the continued operation totalled EUR -2,2 million (Q1/2015: EUR -1.8 million) in the first three months of the current financial year. In the discontinued operation aap realized EBITDA of EUR 0.3 million (Q1/2015: EUR 2.0 million) in the first quarter of 2016.

 

The following highlights show the progress that aap made in implementing its 2016 Management Agenda in the first quarter of 2016:

 

• Signing of a share purchase agreement for the sale of 100% of the company shares in aap Biomaterials GmbH on 22 March 2016; the transaction was closed on 11 May 2016
• LOQTEQ®: Progress on schedule in completing the LOQTEQ® product portfolio; focus of research and development activities on implants for lower extremities and the launch of the periprosthetic treatment system
• Silver coating technology: Submission of design dossier for CE conformity assessment procedure at a notified body in January 2016; first steps in the approval process by the US Food and Drug Administration (FDA) undertaken

 

 

Outlook for 2016

In the second quarter of 2016 aap aims to achieve further progress in its strategy implementation. The Management Board will be focussing on the following topics:

 

To accelerate value-based innovations aap will be taking forward in a targeted manner the further expansion of the LOQTEQ® portfolio for certain indication areas respectively functionalities. In the area of silver coating technology an active interaction with the approval authorities is to be pursued for the approval process under way.

 

The company wants to enhance market access by means of two approaches: Firstly, sales activities in the established markets in Western Europe as well as in the United States are to be expanded further. Secondly, further endeavours are to be undertaken to stabilize sales in growth markets such as the BRICS and SMIT countries.

 

Following the successful divestment of aap Biomaterials GmbH, aap will in the second quarter also be concentrating on optimizing operational efficiency with a focus on adjusting the cost structure to the company's new size.

 

According to preliminary calculations, the completion of the aap Biomaterials GmbH transaction will result in a positive one-time overall effect on the earnings level of about EUR 19.6 million in the second quarter of 2016.

 

Thus the Management Board confirms its forecast for the entire year of 2016: The company anticipates for the EDITDA of the Group (continued and discontinued operation) incl. deconsolidation gain a value of between EUR 14.1 million and EUR 15.7 million.

 

For the continued operation sales between EUR 13.0 million and EUR 15.0 million and an EBITDA between EUR -5.5 million and EUR -3.9 million are expected.

 

For the second quarter of 2016, aap is expecting for the continued operation sales to range between EUR 2.5 million and EUR 3.5 million and an EBITDA of EUR -2.0 million to EUR -1.5 million.

 

About aap Implantate AG

aap Implantate AG is a globally operating medical device company headquartered in Berlin, Germany. The company develops, manufactures and markets trauma and biomaterials products for orthopedics. The trauma portfolio includes besides the innovative anatomical plating system LOQTEQ® a wide range of cannulated screws as well as standard plates and screws. In the biomaterials business the company is specialized on bone cements and mixing systems. In German-speaking countries aap Implantate AG directly sells its trauma products to hospitals, buying syndicates and hospital groups while it uses a broad network of distributors in more than 60 countries at the international level. In the biomaterials business sales are handled via OEM and private label cooperations with several selected international orthopedic and trauma companies. aap Implantate AG's stock is listed in the Prime Standard segment of Frankfurt Stock Exchange (XETRA: AAQ.DE). 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, Fabian Franke, Investor Relations, Lorenzweg 5, 12099 Berlin, Germany
Tel.: [phone], fax: [phone], e-mail: [e-mail]

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Source: aap Implantate AG via Globenewswire

HUG#2012816

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aap Implantate AG
Lorenzweg 5 Berlin Germany

WKN: 506660;ISIN: DE0005066609;
Listed: Freiverkehr in Börse Stuttgart,
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