World's largest dialysis company Fresenius Medical Care (FMS) announced fourth quarter 2012 adjusted earnings per ordinary share of $1.07, which surpassed the year-ago earnings of $1.02 per ordinary share. For 2012, adjusted earnings per share of $3.66 beat the year-ago earnings of $3.52 per share.
Net income attributable to the company dropped 17% year over year to $257 million (or 84 cents per share) in the quarter.
Quarter in Detail
Net revenues edged up 13% (up 14% in terms of constant currency) year over year to $3,706 million in the reported quarter. Organic sales growth was 8% on a global basis. For 2012, sales were $13,800 million, up 10%.
On a geographic basis, revenues from the North American markets soared 19% to $2,429 million in the quarter while overseas revenues increased 4% (up 6% in terms of constant currency) to $1,270 million.
Dialysis services revenues increased 18% (up 19% in terms of constant currency) year over year to $2,804 million with U.S. sales spurting 22% year over year to $2,222 million and international sales ascending 5% (up 8% in terms of constant currency) year over year to $582 million. Average revenue per treatment for U.S. clinics grew to $368 from $351 a year ago.
Consolidated dialysis product revenues increased 2% (up 4% in terms of constant currency) year over year to $902 million. Dialysis product sales in the U.S. market decreased 3% to $207 million. International dialysis product sales increased 3% (up 5% in terms of constant currency) to $688 million.
Operating Statistics
Fresenius operated a network of 3,160 dialysis clinics (up 9% year over year) across North America and the overseas markets, as of Dec 31, 2012. The number of clinics increased 13% in North America while offshore dialysis clinics increased 2% year over year.
Fresenius has provided dialysis treatment to 257,916 patients (up 11% year over year) on a global scale, as of Dec 31, 2012. Patients in North America increased 16% whereas number of patients in international markets ascended 3% year over year.
The company provided 38.6 million dialysis treatments (up 12% year over year) globally, as of Dec 31, 2012. Fresenius’ North American franchise soared 13%, while the international segment improved 11% year over year.
Margins
Operating margin increased marginally to 18.1% from 18% in the prior year quarter. In North America, operating margin was up to 21.2% from 19.6% a year ago while operating margin for overseas markets decreased to 16.7% from 18.7% in the year-ago period.
Cash Flows
Fresenius concluded the fourth quarter with cash (from operations) of $572 million (15.4% of sales) up 15% year over year. The cash flow generation was helped by improvement in working capital.