ABA
26/03/2013 14:22
FORECAST
REL: 1422 HRS Abano Healthcare Group Limited
FORECAST: ABA: Abano Healthcare Group 2013 Market Guidance
Listed healthcare investor and operator, Abano Healthcare Group, has today
provided guidance for the financial year ending 31 May 2013.
Following the divestment of Abano Rehabilitation in June 2012, the company
expects reported consolidated revenues to grow to between $207.0 million to
$209.0 million (1), with an Earnings Before Interest, Tax, Depreciation and
Amortisation (EBITDA) of between $27.5 million to $28.5 million and a Net
Profit After Tax (NPAT) of between $2.3 million to $2.8 million. Underlying
EBITDA (3)is expected to be between $28.3 million to $29.3 million, resulting
in an underlying NPAT of between $4.1 million to $4.6 million. (See attached
PDF announcement for table and FY12 comparative).
Abano has continued its growth and investment strategy, with a particular
focus on its accelerated dental acquisition programme in New Zealand and
Australia, and investment into its Auckland-based radiology business.
The dental businesses remain the primary revenue generators for Abano with
same store sales continuing to grow in New Zealand, buoyed by the ongoing
Lumino television campaign, while Australia has seen a slowing in growth in
line with the softening Australian economy. Overall, earnings from the dental
businesses continue to grow in conjunction with the accelerated acquisition
programme, with increasing returns and margins as each new acquisition is
acquired, due to the size and scale of the dental network.
During the financial year to date, 22 practices have been acquired, growing
the trans-Tasman network to 139 practices, with a further three acquisitions
expected to settle by the end of the financial year. However, the timing of
settlements over the next few months means that the overall dental
acquisition rate for the financial year will be lower than planned, with
several acquisitions now scheduled for early in the new financial year. The
availability of attractive practices and clinician interest in joining
Abano's dental network remains strong, with a solid pipeline of acquisitions
planned.
In February 2013, Abano refinanced its existing Australian debt facilities
with ASB Bank, and improved both pricing and tenure. These facilities are in
place to support the accelerated acquisition strategy for the Australian
dental business.
Radiology is also an important revenue contributor for the Abano Group and
the official opening of the new, state of the art, Insight+Ascot Radiology
clinic at the Millennium Institute in February 2013 was a recent highlight.
The clinic opened later than originally planned, with the co-located
orthopaedic group, an important referral base, also moving into the premises
later than expected. Abano has invested heavily into radiology in the past
two years, and along with the PET CT scanning centre which was opened in
2011, this new clinic is at an early establishment period with significant
mid to long term benefits expected.
Audiology in Australia and South East Asia remains in an investment phase
with progress being made in Australia and Taiwan, but sluggish sales
continuing in Singapore and Hong Kong as previously indicated. A break even
EBITDA result is still forecast to be reached in two to three years' time.
Abano's annuity businesses in pathology and orthotics have performed well and
both are forecast to produce solid results in their constrained DHB
contracting environments.
Managing director of Abano, Alan Clarke, commented: "Our businesses have
performed well to date in a difficult economic environment, with growth
through both acquisition and organic expansion.
"Regional economic conditions and consumer confidence and spending,
particularly in Australia following the announcement of the election remain
difficult however, with no evidence of any significant or lasting
improvement. Changes to private healthcare insurance rebates and dental
subsidies in Australia have also recently been announced, and we are
monitoring any impact carefully.
"Abano has a proven strategy and an experienced management team supported by
over 1,700 professional and highly skilled staff and clinicians. We expect to
see strong growth continuing as we reap the benefits of the acquisitions and
investments made over the last few years."
The Abano Board has reconfirmed its expectation to maintain the 2013 dividend
at 21 cents per share.
Financial Notes Relating to Table in PDF Announcement
1.During FY12, Dental Partners began to roll out a change in the basis for
contracting dentists, whereby Australia dental revenue is now reported after
the payment of dentists' commissions, rather than before. While this results
in a drop in reported revenue for Dental Partners compared to previous years,
there is no impact on EBITDA and NPAT. On a like for like basis, excluding
this change, group revenues are forecast to be approximately 12% to 14% over
the FY12 revenues.
2.Revenue and EBITDA exclude earnings generated by Bay International, in
which Abano holds a 50% shareholding. The results for the Bay Group are now
equity accounted and are therefore no longer included in the consolidated
EBITDA.
3.Excludes one off gains or losses and IFRS adjustments. Further information
on underlying earnings, which is a non-GAAP financial measure and is not
prepared in accordance with NZ IFRS, is available on the Abano website at
www.abano.co.nz/underlyingearnings.
ENDS
Released on behalf of Abano Healthcare Group Limited by Jackie Ellis, spice
communications group tel +64 9 360 8500 or email [email protected].
For more information, please call:
Alan Clarke
Managing Director
Tel: +64 9 300 1412 Mob: +64 21 368818
Richard Keys
Chief Financial Officer/Chief Operating Officer
Tel: +64 9 300 1413 Mob: +64 274 818368
Abano Healthcare Group is New Zealand's leading listed specialist healthcare
investor and operator, with businesses in four sectors - audiology,
rehabilitation, diagnostics and dental - and operations across New Zealand,
Australia and Asia. www.abanohealthcare.co.nz
End CA:00234555 For:ABA Type:FORECAST Time:2013-03-26 14:22:11
