Successful first six months of 2012 with 33% revenue growth, a 66% EBITDA increase and a strong EUR 4.9 million operating cash flow

Tue Aug 14, 2012 2:16am EDT

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aap Implantate AG / Successful first six months of 2012 with 33% revenue growth, a 66% EBITDA increase and a strong EUR 4.9 million operating cash flow . 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 Frankfurt Stock Exchange's Prime Standard segment, achieved 33% sales growth in the first half of the financial year 2012 to EUR 18.9 million (previous year: EUR 14.2 million) along with an EBITDA of EUR 3.5 million (previous year: EUR 2.1 million) - a 66% year-on-year increase. This sales growth was the result of higher product sales (+EUR 2.5 million) and the EUR 2.2 million sales from an exclusive license agreement signed in the first quarter of 2012.

In EUR million H1/2012 H1/2011 Change
Revenue 18.9 14.2 +33%
EBITDA 3.5 2.1 +66%
EBIT 2.0 0.7 >100%
Cash-EBIT 1.2 -0.3 >100%
Operating Cash-Flow 4.9 1.7 >100%
In EUR million 30/06/2012 31/12/2011 Change
Equity (ratio) 49.7 (74%) 48.3 (73%) +3%
Balance sheet total 67.4 66.2 +2 %
Headcount 267 266 Dissimilar

The aap Group's EBIT was EUR 2.0 million (previous year: EUR 0.7 million). On a balance sheet total of EUR 67.4 million (31.12.2011: EUR 66.2 million) the equity ratio rose to 74%. Cash EBIT (EBIT excluding capitalised development work and amortisation thereof) in the first six months of 2012 amounted to EUR 1.2 million (previous year: -EUR 0.3 million).

Sales in the second quarter were up by 18% to EUR 9.0 million (previous year: EUR 7.6 million) and EBITDA was increased by 8% to EUR 1.4 million (previous year: EUR 1.3 million).

In EUR million Q2 2012 Q2 2011 Change
Revenue 9.0 7.6 +18%
EBITDA 1.4 1.3 +8%
EBIT 0.7 0.6 +17%
Cash-EBIT 0.2 0.1 +100%
Operating cash flow 3.6 0.2 >100%

Sales growth in the second quarter of 2012 was achieved mainly by growth in the Bone Cement and Cementing Techniques (+EUR 0.7 million) and Trauma segments including LOQTEQR sales (+EUR 0.4 million) and by Contract Manufacturing at the Nijmegen site (+EUR 0.5 million).

In May 2012, aap hosted an event in Berlin for distributors and surgeons that focussed on the innovative LOQTEQR product family's trauma plates. Feedback from this event was very positive and led to the signing of several LOQTEQR distribution agreements for important countries in Europe and Latin America.

With strong and profitable sales growth and improved working capital and debt management aap was able to achieve an operating cash flow of EUR 4.9 million, thereby further improving its liquidity position. As a result we were able in June and July 2012 to make unscheduled shareholder loan repayments totalling EUR 0.6 million.

Outlook for 2012

Our focus for the remainder of the year will to a large extent be on the Trauma segment, with an emphasis on the following targets:
-          Signing new distributors in core markets such as the United States, Latin America, China and the EU
-          Gaining regulatory approvals in new markets such as the United States, Colombia, China, Turkey and Russia
-          Launching extension to the LOQTEQR family.

On the basis of customer orders received in recent months and of continued customer interest we anticipate higher LOQTEQR sales in the remainder of the year.

For the third quarter of 2012 we anticipate year-on-year sales growth of between 10% and 16% to between EUR 7.6 million and EUR 8.0 million and an EBITDA increase of between 13% and 15% to between EUR 0.9 million and EUR 1.2 million. For the financial year 2012 we reconfirm our sales forecast of EUR 35.5 million (+22%) and our EBITDA forecast of EUR 5.2 million (+24%).

aap Implantate AG's full Q2 2012 report is available for you to download at www.aap.de.

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.

______________________________________________________
aap Implantate AG (ISIN DE0005066609)
- Prime Standard/Regulated Market - All German stock markets -

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.

For inquiries please contact:
aap Implantate AG, Marc Heydrich, Investor Relations, Lorenzweg 5, 12099 Berlin, Germany
Tel.: +49 30 7501 9-134, fax: +49 30 7501 9-290, m.heydrich@aap.de




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Source: aap Implantate AG via Thomson Reuters ONE

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aap Implantate AG
Lorenzweg 5 Berlin Germany


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