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%)
2013 - Results and Milestones
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
The ongoing implementation of aap's 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.
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.
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.