RECORDATI : SIGNIFICANT SALES AND EARNINGS GROWTH IN THE FIRST QUARTER 2013
RECORDATI: SIGNIFICANT SALES AND EARNINGS GROWTH IN THE FIRST QUARTER 2013
(SALES +11.4%, NET INCOME +11.8%) THANKS TO THE INTERNATIONAL BUSINESS (+16.1%)
* Consolidated revenue € 244.6 million, + 11.4%.
* EBITDA((1)) € 61.3 million, + 13.5%
* Operating income € 52.6 million, + 10.5%.
* Net income € 37.8 million, + 11.8%.
* Net financial position((2)):  net debt of € 192.3 million.
* Closing of the acquisition of a portfolio of drugs for the treatment of rare
and other diseases in the U.S.A..
* Full year 2013 targets reviewed: sales of around € 930 million, operating
income of around € 190 million and net income of around € 132 million.
Milan, 9 May 2013 - The Board of Directors of Recordati S.p.A. approved the
Group's consolidated results for the first quarter 2013 prepared in accordance
with International Accounting Standards and International Financial Reporting
Standards (IAS/IFRS) and in particular as per IAS 34 requirements for interim
reporting. These financial statements will be available today at the company's
offices and on the company's website:
http://www.recordati.com/rec_en/investors/reports/ and can also be viewed on the
website of Borsa Italiana S.p.A.
Financial highlights
* Consolidated revenue in the first quarter 2013 is € 244.6 million, up by
11.4% compared to the same period of the preceding year. International sales
grow by 16.1%.
* EBITDA((1)), at 25.1% of sales, is € 61.3 million, an increase of 13.5% over
the same period of the preceding year.
* Operating income, at 21.5% of sales, is € 52.6 million, an increase of
10.5% over the same period of the preceding year.
* Net income, at 15.4% of sales, is € 37.8 million, an increase of 11.8% over
the first quarter 2012.
* Net financial position((2)) at 31 March 2013 records a net debt of € 192.3
million. During the period $ 80 million (€ 60 million) were paid for the
acquisition of a portfolio of products for the treatment of rare and other
diseases, sold mainly in the U.S.A.. Shareholders' equity increases to €
703.2 million.
((1)) Earnings before interest, taxes, depreciation and amortization.
((2) )Cash and short-term financial investments net of bank overdrafts and
medium/long-term loans which include the measurement at fair value of hedging
derivatives (fair value hedge).
Business development news
In January the acquisition of all rights concerning a portfolio of products
indicated for the treatment of rare and other diseases and marketed mainly in
the United States of America, from Lundbeck LLC. was successfully concluded. The
value of the transaction is of $ 100 million, of which $ 80 million were paid at
the closing on January 18. Â The acquired portfolio is now marketed in the U.S.
by Recordati Rare Diseases Inc., a wholly-owned U.S. corporation. The main
product in the portfolio is Panhematin® (haemin for injection) for the
amelioration of recurrent attacks of acute intermittent porphyria. Other
important drugs acquired are NeoProfen® (ibuprofen lysine injection), indicated
to close a clinically significant patent ductus arteriosus (PDA) in premature
infants, and Cosmegen® (dactinomycin for injection) used mainly in the treatment
of three rare cancers. Expected revenues in 2013 for the acquired portfolio are
of around $ 40 million. In order to fund this transaction a long-term loan
agreement with U.S. investors for $ 70 million, of which $ 40 million ten year
bullet and 4.55% coupon and $ 30 million twelve year bullet and 4.70% coupon, is
currently being finalized.
Management Comments
"The excellent results obtained in the first quarter of 2013, confirmed during
the month of April, thanks to the strong international expansion of the group
allow us to review our targets for the full year 2013", declared Giovanni
Recordati, Chairman and CEO. "Therefore, we now expect to achieve sales of
around € 930 million, operating income of around € 190 million and net income of
around € 132 million."
Conference call
Recordati will be hosting a conference call today 9 May 2013 at 4.00 pm Italian
time (3.00 pm London time, 10.00 am New York time). The dial-in numbers are:
Italy         +39 02 8058811, toll free 800 213 858
UK Â Â Â Â Â Â Â Â Â Â Â Â +44 1 212818003, toll free 800 0156384
USA Â Â Â Â Â Â Â Â Â Â Â Â +1 718 7058794, toll free 855 2656959
France   +33 170918703
Germany         +49 65 255114451
Callers are invited to dial-in 10 minutes before conference time. Â If conference
operator assistance is required during the connection please digit * followed by
0 or call +39 02 8061371. Â A recording of the conference call will be placed on
the website www.recordati.com.
A set of slides which will be referred to during the call will be available on
our website www.recordati.com under Investors/Company Presentations.
Recordati, established in 1926, is an international pharmaceutical group, listed
on the Italian Stock Exchange (Reuters RECI.MI, Bloomberg REC IM, ISIN IT
0003828271), with a total staff of over 3,300, dedicated to the research,
development, manufacturing and marketing of pharmaceuticals. Headquartered in
Milan, Italy, Recordati has operations in the main European countries, in
Russia, in other Central and Eastern European countries, in Turkey and in the
United States of America. Â A field force of more than 1,700 medical
representatives promotes a wide range of innovative pharmaceuticals, both
proprietary and under license, in a number of therapeutic areas including a
specialized business dedicated to treatments for rare diseases. Recordati is a
partner of choice for new product licenses for its territories. Â Recordati is
committed to the research and development of new drug entities within the
cardiovascular and urogenital therapeutic areas and of treatments for rare
diseases.  Consolidated revenue for 2012 was € 828.3 million, operating income
was € 167.0 million and net income was € 118.5 million.
For further information:
Recordati website: Â www.recordati.com
Investor Relations                 Media Relations
Marianne Tatschke                Ketchum
(39)0248787393Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Cristina Risciotti,
(39)0262411919, cristina.risciotti@ketchum.com
e-mail: inver@recordati.it             Marzia Ongaretti,
(39)0262411915, marzia.ongaretti@ketchum.com
Statements contained in this release, other than historical facts, are "forward-
looking statements" (as such term is defined in the Private Securities
Litigation Reform Act of 1995). These statements are based on currently
available information, on current best estimates, and on assumptions believed to
be reasonable. This information, these estimates and assumptions may prove to be
incomplete or erroneous, and involve numerous risks and uncertainties, beyond
the Company's control. Hence, actual results may differ materially from those
expressed or implied by such forward-looking statements. All mentions and
descriptions of Recordati products are intended solely as information on the
general nature of the company's activities and are not intended to indicate the
advisability of administering any product in any particular instance.
RECORDATI GROUP
Summary of consolidated results prepared in accordance with the International
Accounting Standards and International Financial Reporting Standards (IAS/IFRS)
(thousands of €)
+-------------------------------+------------------+------------------+--------+
|INCOME STATEMENT |First quarter 2013|First quarter 2012|Change %|
+-------------------------------+------------------+------------------+--------+
|REVENUE | 244,577| 219,559| 11.4|
| | | | |
|Â Â Cost of sales | (85,360)| (77,997)| 9.4|
| +------------------+------------------+--------+
|GROSS PROFIT | 159,217| 141,562| 12.5|
| | | | |
|Â Â Selling expenses | (73,566)| (65,499)| 12.3|
| | | | |
|Â Â Research and development | (18,468)| (15,727)| 17.4|
|expenses | | | |
| | | | |
|Â Â General & administrative | (13,530)| (11,776)| 14.9|
|expenses | | | |
| | | | |
|Â Â Other income (expenses), net| (1,018)| (915)| 11.3|
| +------------------+------------------+--------+
|OPERATING INCOME | 52,635| 47,645| 10.5|
| | | | |
|Â Â Financial income (expenses),| (1,288)| (1,273)| 1.2|
|net | | | |
| +------------------+------------------+--------+
|PRE-TAX INCOME | 51,347| 46,372| 10.7|
| | | | |
|Â Â Provision for income taxes | (13,581)| (12,598)| 7.8|
| +------------------+------------------+--------+
|NET INCOME | 37,766| 33,774| 11.8|
+-------------------------------+------------------+------------------+--------+
|Attributable to: | Â | Â |Â |
| | | | |
|Equity holders of the parent | 37,762| 33,771| 11.8|
| | | | |
|Minority interests | 4| 3| 33.3|
+-------------------------------+------------------+------------------+--------+
+--------------------+--------------------+--------------------+----------+
| EARNINGS PER SHARE | First quarter 2013 | First quarter 2012 | Change % |
+--------------------+--------------------+--------------------+----------+
| Basic | € 0.188 | € 0.169 | 11.2 |
| | | | |
| Diluted | € 0.178 | € 0.162 | 9.9 |
+--------------------+--------------------+--------------------+----------+
Earnings per share (EPS) are based on average shares outstanding during each
year, 200,796,533 in 2013 and 199,342,718 in 2012, net of average treasury stock
which amounted to 8,328,623 shares in 2013 and to 9.782.438 shares in 2012.
Diluted earnings per share is calculated taking into account stock options
granted to employees.
+------------------------+--------------------+--------------------+----------+
| COMPOSITION OF REVENUE | First quarter 2013 | First quarter 2012 | Change % |
+------------------------+--------------------+--------------------+----------+
| Total revenue | 244,577 | 219,559 | 11.4 |
| +--------------------+--------------------+----------+
| Italy | 63,879 | 63,953 | (0.1) |
| | | | |
| International | 180,698 | 155,606 | 16.1 |
+------------------------+--------------------+--------------------+----------+
RECORDATI GROUP
Summary of consolidated results prepared in accordance with the International
Accounting Standards and International Financial Reporting Standards (IAS/IFRS)
(thousands of €)
+--------------------------------------------------------+----------+----------+
|ASSETS |31.03.2013|31.12.2012|
+--------------------------------------------------------+----------+----------+
|Property, plant and equipment | 59,181| 59,972|
| | | |
|Intangible assets | 304,133| 231,470|
| | | |
|Goodwill | 414,414| 413,213|
| | | |
|Equity investments | 6,868| 6,925|
| | | |
|Non-current receivables | 3,623| 3,788|
| | | |
|Deferred tax assets | 23,297| 22,837|
| +----------+----------+
|TOTAL NON-CURRENT ASSETS | 811,516| 738,205|
| | | |
|Â | Â | Â |
| | | |
|Inventories | 124,725| 126,388|
| | | |
|Trade receivables | 190,635| 155,359|
| | | |
|Other receivables | 23,009| 24,983|
| | | |
|Other current assets | 5,877| 2,164|
| | | |
|Fair value of hedging derivatives (fair value hedge) | 2,018| 1,371|
| | | |
|Short-term financial investments, cash and cash | | |
|equivalents | 50,673| 38,418|
| +----------+----------+
|TOTAL CURRENT ASSETS | 396,937| 348,683|
+--------------------------------------------------------+----------+----------+
|TOTAL ASSETS | 1,208,453| 1,086,888|
+--------------------------------------------------------+----------+----------+
+---------------------------------------------------+----------+----------+
|EQUITY AND LIABILITIES |31.03.2013|31.12.2012|
+---------------------------------------------------+----------+----------+
|Share capital | 26,141| 26,141|
| | | |
|Capital in excess of par value | 83,719| 83,719|
| | | |
|Treasury stock | (43,970)| (46,254)|
| | | |
|Hedging reserve | (4,738)| (4,983)|
| | | |
|Translation reserve | (2,227)| (3,713)|
| | | |
|Other reserves | 26,505| 26,326|
| | | |
|Retained earnings | 619,988| 501,701|
| | | |
|Net income for the year | 37,762| 118,484|
| | | |
|Interim dividend | (40,077)| (40,077)|
| +----------+----------+
|GROUP SHAREHOLDERS' EQUITY | 703,103| 661,344|
| +----------+----------+
|Minority interest | 57| 53|
| +----------+----------+
|SHAREHOLDERS' EQUITY | 703,160| 661,397|
| +----------+----------+
|Â | Â | Â |
| | | |
|Loans due after one year | 129,797| 129,111|
| | | |
|Employees' termination pay | 17,681| 17,862|
| | | |
|Deferred tax liabilities | 15,600| 15,872|
| | | |
|Other non-current liabilities | 1,781| 1,828|
| +----------+----------+
|TOTAL NON-CURRENT LIABILITIES | 164,859| 164,673|
| | | |
|Â | Â | Â |
| | | |
|Trade payables | 104,116| 106,926|
| | | |
|Other payables | 76,114| 53,984|
| | | |
|Tax liabilities | 19,653| 9,789|
| | | |
|Other current liabilities | 282| 458|
| | | |
|Provisions | 20,310| 20,544|
| | | |
|Fair value of hedging derivatives (cash flow hedge)| 4,738| 4,983|
| | | |
|Loans due within one year | 8,163| 8,147|
| | | |
|Bank overdrafts | 107,058| 55,987|
| +----------+----------+
|TOTAL CURRENT LIABILITIES | 340,434| 260,818|
+---------------------------------------------------+----------+----------+
|TOTAL EQUITY AND LIABILITIES | 1,208,453| 1,086,888|
+---------------------------------------------------+----------+----------+
DECLARATION BY THE MANAGER RESPONSIBLE FOR PREPARING THE COMPANY'S FINANCIAL
REPORTS
The manager responsible for preparing the company's financial reports Fritz
Squindo declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated
Law on Finance, that the accounting information contained in this press release
corresponds to the document results, books and accounting records.
Recordati:SIGNIFICANT SALES - EARNINGS GROWTH IN THE FIRST QUARTER 201:
http://hugin.info/143644/R/1700673/561384.pdf
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Source: RECORDATI via Thomson Reuters ONE
[HUG#1700673]