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aap Consolidated Financial Statements for 2010: Profitable Growth (+14%) Combined with Positive EBIT at Product Level
2010 Revenue: EUR 28.4 million, EBITDA: EUR 3.4 million
aap Implantate AG / aap Consolidated Financial Statements for 2010: Profitable Growth ( 14%) Combined with Positive EBIT at Product Level - 2010 Revenue: EUR 28.4 million, EBITDA: EUR 3.4 million - . Processed and transmitted by Thomson Reuters ONE. The issuer is solely responsible for the content of this announcement.
aap Implantate AG, a medical technology company listed in the Prime Standard segment of the Frankfurt Stock Exchange, achieved the following principal results in the fiscal year 2010: * 14 percent sales growth at product level * EBITDA at product level more than doubled (2010: EUR 2.8 million; 2009: EUR 1.2 million) * Positive EBIT from product sales, up from EUR -1.662 million to EUR 87,000. * 33 percent reduction in financing costs * Appointment of a U.S. business development director, first contracts for U.S. market * Appointment of a corporate director of R&D, specific targets devised for a swift improvement of the Freshness Index * Important progress made on developing and installing the Group-wide IT platform, a basis for further optimization of cooperation between the individual centers of excellence.
aap sales in the fiscal year 2010 totaled EUR 28.4 million after EUR 33.1 million in the previous year (-14%). Total sales consist of product sales under the company's own label and sales of biomaterials and implants manufactured for OEM partners totaling EUR 27.5 million (previous year: EUR 28.6 million), plus EUR 0.9 million (previous year: EUR 4.5 million) in project and outlicensing revenues. Adjusted for project sales, revenue earned by the Analytics division, which was sold in December 2009, and other one-time effects totaling EUR 9.0 million, 2009 product-level sales amounted to EUR 24.1 million, rising by 14 percent in 2010 to EUR 27.5 million.
EBITDA was down by 48 percent from EUR 6.6 million to EUR 3.4 million, while EBIT fell from EUR 3.6 million to EUR 0.7 million. Excluding the aforementioned effects, like-for-like 2009 EBITDA at product level would haven been EUR 1.2 million and like-for-like 2009 EBIT at product level would have been EUR -1.6 million. Adjusted EBITDA at product level has therefore more than doubled (2010 adjusted: EUR 2.8 million) and adjusted EBIT improved from EUR -1.6 million to EUR 87K.
On a balance sheet total of EUR 63.6 million (previous year: EUR 62.7 million), aap's equity ratio was 71 percent. Without goodwill, capitalized development work, and other intangible assets, the Group's equity ratio was 37 percent (previous year: 41 percent). As at the end of the fiscal year 2010, employee numbers were up by six percent from 242 to 256.
In the fiscal year 2010 the process of transforming the aap Group into a focused medical technology company with brand products of its own was taken further forward. In addition, a license agreement was signed with an internationally active orthopaedic company and a new OEM customer active in the world market was recruited for our core competences trauma, cement, and infection care. The 33 percent reduction in financing costs exceeded our expectations, and we also achieved our debt coverage ratio and interest coverage ratio targets. The rolling debt coverage ratio for the last four quarters was 2.7 and the rolling interest coverage ratio for the last four quarters was 6.1. By achieving 14 percent sales growth at product level we were only slightly short of our 15 percent target.
In EUR million 2010 2009 Change on year Sales 28.4 33.1 -14% Sales on product level (adjusted)* 27.5 24.1 14% EBITDA 3.4 6.6 -48% EBITDA (adjusted)** 2.8 1.2 >100% EBIT 0.7 3.6 -81% EBIT (adjusted)** 0.1 -1.6 >100% Earnings after taxes 0.1 1.9 -94% Shareholders' equity (ratio) 44.9 (71%) 44.7 (71%) 1% Debt coverage ratio (DCR) 2.7 1.2 >100% Interest coverage ratio (ICR) 6.1 7.7 -21% Balance sheet total 63.6 62.7 1% Number of employees 256 242 6% *2010 figures do not include effects of the project business; 2009 figures do not include effects of the project business, Analytics division, and other one- time effects. **2010 figures do not include effects of the project business; 2009 figures do not include effects of the project business and Analytics division.
The focus of aap's corporate strategy in 2011 continues to be the concentration on customers, costs, and liquidity along with further transformation into a focused medical technology company with profitable sales growth. The long-term core of our portfolio is intended to be bone cement, cementing technology, and traumatology products. The Management Board anticipates sales growth of 10 percent in 2011 based primarily on rising sales of IP-protected own-label aap products. To extend its sales and marketing activities, aap will concentrate in 2011 on sales organizations outside of the German-speaking countries, including the BRICS countries. aap has set itself the target of mainly achieving autonomous growth, but is also considering buy and build strategies. aap plans to reduce by 10 percent the operating working capital's relative share of product sales and to improve its Freshness Index performance from 13 percent now to 15 percent in 2011. Profitable growth, achieving a positive Cash-EBIT, and optimizing working capital management are to improve aap's liquidity.
aap Implantate AG's full consolidated financial statements is available to download at www.aap.de. Publication of the report for the first quarter of 2011 is scheduled for May 11, 2011.
This release contains 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.
 The Freshness Index is the percentage of total product sales of products newly approved in the U.S. and Europe over the past three years.
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