* MEDICA continued to drive faster growth
€259.1 million in H1-2010 revenue up 10.7% on H1 2009
MEDICA (Paris: MDCA), a leading provider of long and short-term dependency care
in France, has released its business review for the six months ended 30 June
H 1 Q 2
REVENUE 2010 2009 Reported Organic 2010 2009 Reported Organic
BY SECTOR – €M growth growth growth growth
Long-term care – France 160.8 139.7 +15.2% +8.8% 82.2 70.9 +15.9% +8.9%
% of revenue 62.1% 59.7% 62.3% 59.8%
Post-acute and psychiatric care – France 71.6 70.1 +1.9% +1.9% 36.2 35.3 +2.7% +2.7%
% of revenue 27.6% 30.0% 27.5% 29.8%
Italy 26.6 24.3 +9.4% +3.1% 13.5 12.3 +9.3% +2.8%
% of revenue 10.3% 10.4% 10.2% 10.4%
TOTAL 259.1 234.1 +10.7% +6.1% 131.9 118.5 +11.3% +6.2%
“We are satisfied with the growth in MEDICA`s business in the first half of
2010,” said Jacques Bailet, Chairman and Chief Executive Officer.”During the
period, our revenue rose by 10.7% compared with the first half of 2009, with
organic growth exceeding 6%.This positive first-half performance has
strengthened our confidence in our growth strategy and, in particular, our
ability to reach our revenue growth targets of at least 10% for 2010 and an
aggregate 45% for the 2010-2012 period.”
Consolidated revenue amounted to €259.1 million in the first half of 2010,
representing a 10.7% increase from the prior-year period. For the second quarter
alone, revenue came to €131.9 million, up 11.3% from the €118.5 million reported
in second-quarter 2009.
MEDICA drove robust expansion in its business in the first half, opening 247
beds and acquiring 770 beds. As of the date of this press release, MEDICA
operated a portfolio of 12,300 beds.
All of the business segments experienced growth during the period:
* Revenue from long-term care in France rose by 15.2% to €160.8 million, mainly
reflecting the strong 8.8% organic growth led by the ramp-up of facilities
opened in 2009 and first-half 2010.
* Revenue from post-acute and psychiatric care facilities in France edged up by
a slight 1.9% to €71.6 million, as the Group`s deployment of in-depth
restructuring plans held back expansion.
* Revenue from operations in Italy rose by 9.4% year-on-year.
Occupancy rates in Group facilities remained high, at 96.9%.
* New financing facilities were set up during the period, as follows:
On 16 June 2010, MEDICA signed a club deal with a syndicate of leading banks.
The deal provides for a term loan facility in an amount of €350 million, used to
refinance existing syndicated loans at a reduced spread of 165 bps versus 270
In addition, the Group has access to:
* A revolving loan facility in an amount of €100 million, providing MEDICA with
additional financing to support its controlled growth strategy.
* An additional €150-million basket of bilateral debt facilities, authorized by
the banking documentation.
The new facilities will enable MEDICA to significantly reduce its borrowing
costs, while providing financing aligned with the Group`s growth strategy.
* The interest rate hedging policy was adjusted, as follows:
As announced when the new financing was arranged, the Group recently adjusted
its interest rate hedging policy to further optimise its borrowing costs.
The Group entered into a fixed-rate swap agreement with effect from 1 January
2011 and based on an amount of €350 million, of which €100 million expires on 31
December 2013 and €250 million on 30 June 2014.
Since January 2011, the fixed rate on the new swaps represents an average of
approximately 1.7%, which is 200 bps lower than the rate on the existing swaps.
To support its expansion plan, the Group also has an organic growth pipeline
representing some 2,700 beds (excluding beds with an option to buy), as
* 850 beds being restructured.
* 1,850 beds being built.
Management reaffirms the objective set during the initial public offering to
deliver revenue growth of at least 10% in 2010 and at least 45% over the
2010-2012 period. This performance will be driven by deploying an active capital
expenditure and investment strategy, to maintain the high quality and
profitability of existing facilities, create new facilities and carry out
carefully selected acquisitions. Management also intends to lead this growth
strategy while further improving the company’s leverage (net debt to EBITDA
ratio) to around 3x in 2012.
A conference call for analysts and investors will be held this morning at 9:00
First-half 2010 results: Tuesday, 7 September 2010 before start of trading
Third-quarter 2010 business review: Tuesday, 26 October 2010 before start of trading
Created in 1968, MEDICA is a leading provider of long and short-term dependency
care in France. It operates in both the long-term care sector, with 111 nursing
homes in France and Italy, and in the post-acute and psychiatric care sector,
with 37 post-op and rehabilitation facilities in France. Together, these
facilities offered a total of 11,381 beds at 31 December 2009.
MEDICA has been listed on the NYSE Euronext Paris stock exchange – Compartment B
since February 2010. Eligible for the Deferred Settlement Service.
MEDICA is included in the CAC Mid 100, SBF 250 and MSCI France Small Cap
Symbol: MDCA – ISIN: FR0010372581 – Reuters: MDCA PA – Bloomberg: MDCA FP
Christine Jeandel – Deputy Chief Executive Officer
Mathieu Fabre – Chief Financial Officer
Phone: +33 (0)1 41 09 95 20
Nancy Levain/Maryline Jarnoux-Sorin
Phone: +33 (0)1 44 50 39 30
Phone: +33 (0)1 53 96 83 83
Copyright Business Wire 2010