MILAN, Italy, February 14 /PRNewswire-FirstCall/ -- - 2004 Fourth Quarter Revenues Rise to 188 Million Euros, up 3.8% (CRM up 13.9%) From the Same Period in 2003 (on a Comparable Foreign Exchange Translation Basis)
- Profitability Improved: EBITDA at 18.6 Million Euros (up 12% on a Comparable Basis) and EBIT at 2.5 Million Euros, Compared With a Loss of 2.6 Million Euros in the Last Three Months of 2003 (on a Comparable Basis)
- Indebtedness Decreases Sharply, Falling From 331.2 Million Euros at September 30, 2004 to 316.1 Million Euros at December 31, 2004
- Consolidated Preliminary Year-End Data for 2004 Show Revenues of 723.3 Million Euros (+4.5% on a Basis Comparable With 2003 Pro Forma Figures), EBITDA of 68.3 Million Euros and EBIT of 4.1 Million Euros
- On March 1, 2005, the Company Will Present its 2005 Budget and Five- Year Plan to the Financial Community
The Board of Directors of Sorin SpA, meeting today in Milan under the chairmanship of Umberto Rosa, approved the report on operations in the fourth quarter of 2004 presented by Drago Cerchiari, the Company's Chief Executive Officer.
Fourth Quarter of 2004
At 188 million euros, fourth quarter net revenues were 3.8% higher than in the last three months of 2003 (on a comparable foreign exchange translation basis).
The Cardiac Surgery Business Unit (implantable devices and cardiac surgery systems) had revenues of 104.9 million euros (-1.0% on a comparable foreign exchange translation basis).
The impact of lower sales of mechanical valves, which have been offset partially by rising shipments of tissue valves, is the main reason for this modest revenue shortfall. Tissue valves have been enjoying the fastest growth among all of the Business Unit's product lines. Ongoing efforts to strengthen the product pipeline, primarily through the development of a new adult oxygenator, a new line of paediatric oxygenators and a percutaneous valve, are progressing successfully.
The Cardiac Rhythm Management Business Unit (implantable devices that manage cardiac rhythm) reported revenues of 49.9 million euros in the fourth quarter of 2004, for a gain of 13.9% over the figure for the fourth quarter of 2003, restated on a comparable basis. Programs implemented to bring manufacturing capacity in line with demand produced a double-digit increase in the bradycardial segment (pacemakers) and growth of more than 20% in the tachycardial segment (defibrillators and CRT-D). CRM enjoyed significant share gains in all product lines.
The Vascular Therapy Business Unit (drug-eluting and bare-metal coronary stents, endovascular stents and catheters for angioplasty) booked revenues of 8 million euros in the fourth quarter of 2004 (+33.7% on a comparable basis). The commercial success of Janus, an innovative drug-eluting stent that was awarded the CE mark on October 25, 2004, accounts for this remarkable sales turnaround. In addition, patient enrolment in the Jupiter II clinical trial was completed in the fourth quarter of 2004, and trial results should be available in the second half of 2005.
The Renal Care Business Unit (biomedical devices that treat kidney diseases) had revenues of 24.9 million euros, down 3.2% on a comparable basis.
An analysis of quarterly results on a geographic basis shows that, on a comparable basis, North American revenues were 6.7% higher than they were in the last three months of 2003.
Consolidated EBITDA totalled 18.6 million euros in the fourth quarter of 2004, up from 16.6 million euros in the same period last year. On a comparable foreign exchange translation basis, EBITDA grew 12%, due mainly to a strong sales performance by the CRM and VT Business Units. EBIT improved from a negative 2.6 million euros in the fourth quarter of 2003 to a positive 2.5 million euros for the three months ended December 31, 2004, despite lower R&D grants for 0.5 million euros.
At December 31, 2004, the net indebtedness of the Sorin Group totalled 316.1 million euros, compared with 331.2 million euros at September 30, 2004. This reduction, which is especially significant considering that during the same period Sorin purchased buildings at the Saluggia industrial site, reflects primarily the Group's improved operating cash flow and a reduction in working capital requirements.
During the meeting, the Board of Directors co-opted Michele Cappone, who will remain in office until the next Stockholders' Meeting. Mr. Cappone being an executive at Interbanca S.p.A., does not qualify as an Independent Director, as defined by the Code of Conduct of Listed Companies, and does not have executive authority.
Consolidated Preliminary Year-end Data for 2004
The preliminary year-end data for 2004 point to revenues of 723.3 million euros, or 4.5% more than in 2003 (on a comparable foreign exchange translation basis), EBITDA of 68.3 million euros (72.7 million euros in 2003) and EBIT of 4.1 million euros (0.9 million euros in 2003).
A breakdown by Business Unit shows revenues of 418.5 million euros for Cardiac Surgery (+3.3% on a comparable foreign exchange translation basis), 174.7 million euros for Cardiac Rhythm Management (+6.5% on a comparable basis), 23.8 million euros for Vascular Therapy (+6.1% on a comparable basis) and 105.7 million euros for Renal Care (+3.6% on a comparable basis).
2004 was the first year in which the medical technology operations, demerged from SNIA Group, were active as an independent company, in a context of radically changing management structure, while starting the integration processes made necessary after an intense campaign of acquisitions pursued in the past three years.
During 2004 a new plan, to strongly re-launch the Group, has been finalised; first effects will be visible starting from 2005.
The Company's 2005 budget and five-year plan will be presented to the financial community on March 1, 2005.
The Sorin Group (Reuters code: SORN.MI), a world leader in the development of medical technologies for cardiac surgery, offers innovative therapies for cardiac rhythm dysfunctions, interventional cardiology and the treatment of chronic kidney diseases. The companies of the Sorin Group are: Bellco, CarboMedics, COBE Cardiovascular, Dideco, ELA Medical, Mitroflow, Soludia, Sorin Biomedica and Stockert. The Sorin Group has about 4,800 employees working at facilities in more than 80 countries throughout the world to serve over 5,000 public and private treatment centers.
For additional information, please visit our website: http://www.sorin.com/ Sorin Group Consolidated Operating Results (amounts in millions of euros) 4th quarter 4th quarter Description 12/31/2004 12/31/2003 2004 2003 proforma proforma 198,2 202,2 Production value (i) 762,0 758,5 Cost of raw materials, outside (116,7) (116,1) services and (434,0) (419,6) miscellaneous operating costs 81,5 86,1 Value added generated 328,0 338,9 (62,9) (65,7) Personnel expense (259,7) (254,8) 18,6 20,4 EBITDA 68,3 84,1 (15,9) (17,4) Depreciation, (63,2) (68,8) amortisation and writedowns (1) (0,2) (2,9) Provisions for risks (1,0) (4,0) and charges 2,5 0,1 Net production value (EBIT) 4,1 11,3 (i) which includes 188,0 188,4 Net revenues 723,3 715,3
(1) The amounts shown include amortisation of goodwill of 14,3 million euros, compared with 14,7 million euros of the same period in 2003.
Preliminary Data at Present Under Verification Also by External Auditors Sorin Group Consolidated Financial Position (amounts in millions of euros) 01/02/04 09/30/04 12/31/04 Short-term financial assets 30,3 Liquid assets 23,6 18,0 Loans receivable Short-term 26,4 loans receivable 40,7 54,8 -- Long-term loans receivable - - 3,4 Financial accrued income 3,0 1,5 expenses and prepaid 60,1 Total financial assets 67,3 74,3 (252,5) Short-term loans payable (158,6) (151,2) (129,9) Long-term loans payable (254,9) (259,8) (4,2) Financial accrued expenses and (4,3) (3,8) deferred income (386,6) Total financial liabilities (417,8) (414,8) (326,5) Gross indebtedness (350,5) (340,5) 30,5 Receivables assigned with and 19,3 24,4 without recourse (296,0) Net indebtedness (331,2) (316,1) Preliminary Data at Present Under Verification Also by External Auditors
Sorin GroupCONTACT: Marilena Giavara, Director, Corporate Communications & InvestorRelations, Tel. +39-02-6332201, e-mail:marilena.giavara@sorin.com. Laura Villa, Investor RelationsManager, Tel. +39-02-6332316, e-mail: laura.villa@sorin.com
