Bli medlem
Bli medlem

Du är här

2016-11-14

aap: Q3/2016 sales and EBITDA within the guidance; North America sales in 9M/2016 above expectations; important progress in LOQTEQ® portfolio expansion

aap Implantate AG / aap: Q3/2016 sales and EBITDA within the guidance; North
America sales in9M/2016 above expectations; important progress in LOQTEQ®
portfolio expansion . Processed and transmitted by Nasdaq Corporate
Solutions.The issuer is solely responsible for the content of this
announcement.
* Sales and EBITDA in Q3/2016 at EUR 2,9 million (Guidance: EUR 2.5 million
to EUR 4.0 million) and EUR -1.8 million (Guidance: EUR -2.0 million to EUR
-1.2 million)
* EBITDA burdened by one-time effects in Q3/2016 and in nine-month period
(Q3/2016: EUR 0.5 million; 9M/2016: EUR 0.8 million), which will largely
result in savings effects on the earnings level in the future
* North America sales in Q3/2016 at EUR 0.7 million (Q3/2015: EUR 0.1
million) and in 9M/2016 at EUR 2.0 million (9M/2015: EUR 0.4 million)
* LOQTEQ®: Important progress in portfolio completion through market launchs
of periprosthetic and polyaxial LOQTEQ® systems - further launches planned
shortly
* Silver coating technology: good progress in CE conformity assessment
procedure; preparation of approval documents for US FDA
* Signing of a notarial share purchase agreement about the remaining stake of
33% inaap Joints GmbH - Completion planned until year end 2016
* Change in the Supervisory Board: Jacqueline Rijsdijk follows Ronald
Meersschaert

aap
Implantate AG ("aap
") achieved in the third quarter of 2016 sales and EBITDA in line with the
expectations. In the continued operation sales in the reporting period
amounted to EUR 2.9 million (Q3/2015: EUR 3.4 million) and were thus within
the guidance of EUR 2.5 million to EUR 4.0 million. Furthermore,aap
realized an EBITDA of EUR -1.8 million (Q3/2015: EUR -1.4 million) in the
continued operation in the third quarter of 2016 and thereby a value within
the forecasted corridor of EUR -2.0 million to EUR -1.2 million as well.
EBITDA in the reporting period was burdened by one-time effects from the
termination of a long-term license agreement in connection with the LOQTEQ®
technology (EUR 0.3 million) and a value adjustment to customer receivables
(EUR 0.2 million) totaling about EUR 0.5 million. The license agreement with
a co-developer of the LOQTEQ® technology initially had a long maturity which
was tied to the terms of the LOQTEQ® patents. By terminating the license
agreementaap
has succeeded in providing mid- and long-term as well as sustainable relief on
the earnings level. Adjusted for the mentioned special effects recurring
EBITDA in the third quarter was at EUR -1.3 million and thereby at the upper
end of the guidance.

Q3 Sales

---------------------------------------------------------------
| In EUR million Q3/2016 Q3/2015 Change on year |
| Trauma 2.3 2.9 -18% |
| Other 0.6 0.5 +2% |
| Sales continued operation 2.9 3.4 -15% |
---------------------------------------------------------------
Q3 EBITDA

--------------------------------------------------------------------------
| In EUR million Q3/2016 Q3/2015 Change on year |
| EBITDA continued operation -1.8 -1.4 -30% |
| One-time effects 0.5 0 >+100% |
| Recurring EBITDA continued operation -1.3 -1.4 -5% |
--------------------------------------------------------------------------

In connection with the aimed focus on established markets such as North America, the DACH region and further European countries,aap
succeeded in increasing sales in North America significantly and extending customer access in the DACH region. In contrast, China could not make a contribution towards sales in the third quarter of 2016 as well as in the year to date. In 2015 China was despite halted growth a main sales market. We are currently still in negotiations about a continuation of the distribution business and expect a conclusion as well as a corresponding recovery of the business until the end of the financial year. Overall it appears with respect to the sales development that the realized pleasing sales increases in North America in financial year 2016 could not compensate the so far missing sales contributions from China.
9M Sales

------------------------------------------------------------------
| In EUR million 9M/2016 9M/2015 Change on year |
| Trauma 7.6 8.8 -14% |
| Other 1.2 1.1 +14% |
| Sales continued operation 8.8 9.9 -11% |
| |
| Sales discontinued operation 4.2* 12.1 <-100% |
| Group sales 13.0* 22.0 -41% |
------------------------------------------------------------------
* Includesaap
Biomaterials GmbH business from 01/01/2016 to 05/11/2016.

9M EBITDA

--------------------------------------------------------------------------
| In EUR million 9M/2016 9M/2015 Change on year |
| EBITDA continued operation -5.3 -4.5 -19% |
| One-time effects 0.8 0.2 >+100% |
| Recurring EBITDA continued operation -4.5 -4.3 -6% |
--------------------------------------------------------------------------

-------------------------------------------------------------------
| In EUR million 9M/2016 9M/2015 Change on year |
| EBITDA continued operation -5.3 -4.5 -19% |
| |
| EBITDA discontinued operation 24.1* 4.2 >+100% |
| Group EBITDA 18.8* -0.3 >+100% |
-------------------------------------------------------------------
* Includesaap
Biomaterials GmbH business from 01/01/2016 to 05/11/2016 and deconsolidation
profit of sale ofaap
Biomaterials GmbH.

In the first nine months of 2016aap
realized sales of EUR 8.8 million (9M/2015: EUR 9.9 million) in the continued operation and an EBITDA of EUR -5.3 million (9M/2015: EUR -4.5 million). EBITDA in the nine-month period of the current financial year was additionally burdened by an one-time effect from personnel measures implemented in the second quarter of EUR 0.3 million besides the special effects already mentioned. Consequently one-time effects in the first nine months total EUR 0.8 million. In particular the termination of the long-term license agreement and the personnel measures will result in noticeable cost savings and thereby earnings improvements of the company in the years to come. Adjusted for all special effects recurring EBITDA in the nine-month period 2016 was at EUR -4.5 million and thereby almost at the level of the corresponding prior year period.
The following highlights indicate the progressaap
made in the third quarter of 2016 in implementing the Management Agenda for 2016:
* North America sales: sales with local distributors and global partners who
sellaap products under their own name or theaap label in North America
totaled EUR 0.7 million in Q3/2016 (Q3/2015: EUR 0.1 million) and EUR 2.0
million in 9M/2016 (9M/2015: EUR 0.4 million) and were thus significantly
above expectations
* LOQTEQ®: important progress in portfolio completion through recent market
launchs of periprosthetic LOQTEQ® system and polyaxial LOQTEQ® VA ankle
system - Shortly further launchs of various polyaxial LOQTEQ® systems for
different anatomical areas
* Silver coating technology: good progress in CE conformity assessment
procedure for silver-coated LOQTEQ® plate - Intensive and constructive
exchange with notified body; preparation of approval documents for US Food
and Drug Administration (FDA)
* Signing of a notarial share purchase agreement about the remaining stake of
33% inaap Joints GmbH for EUR 0.4 million on 23 September 2016;
prerequisite for closing is the recertification of three products until
year end 2016; prolongation of the CE approval is a very challenging task
as these are so-called class III products which are in a difficult approval
environment with constantly increasing requirements and partly long
reaction times of approval authorities; conclusion of the contract led to a
value adjustment on the stake inaap Joints GmbH of EUR 0.4 million in
Q3/2016
* Amicable agreement with co-developer of LOQTEQ® technology about premature
termination of a long-term license agreement and compensation with an
indemnity payment which is provided as a first fixed payment in 2016 and
will subsequently be payed out in tranches if certain sales targets are
reached only in the next three years; termination leads to a mid- and
long-term as well as sustainable discharge of earnings level; first
indemnity payment of EUR 0.3 million leads to an one-off extraordinary
charge on earnings in Q3/2016
* Change in the Supervisory Board: Jacqueline Rijsdijk follows Ronald
Meersschaert who resigned from his office for personal reasons; Jacqueline
Rijsdijk has acknowledged economic and financial expertise and an excellent
network

Outlook for 2016

In the fourth quarter of 2016,aap
aims to achieve further progress in its strategy implementation. The Management Board will be focusing on the following topics:
To accelerate value-based innovations,aap
will be taking forward in a targeted manner the further expansion of the LOQTEQ® portfolio for certain indication areas respectively functionalities and plans the market launch of further polyaxial LOQTEQ® systems for different anatomical regions.
In the area of silver coating technology, the active interaction with the approval authorities will be continued regarding the current CE conformity assessment procedure. For the US approval the necessary approval documents are being prepared for submission to the US authorities.
The company wants to enhance market access by means of two approaches: Firstly, sales activities in the established markets in North America and Western Europe are to be expanded further. Based on the very pleasing sales development in North America in the first nine months of 2016 we expect a continuation of the sales dynamics in the fourth quarter of 2016. Secondly, further endeavours will be undertaken to stabilize sales in growth markets such as the BRICS and SMIT countries.
Following the successful divestment ofaap
Biomaterials GmbH,aap
has already initiated extensive measures to reduce personnel and material costs in order to take into account the reduced size of the company. We will push this cost optimization process further in the next quarters.
Based on the business performance to date and taking into account the one-time effects as well as the ongoing negotiations, the Management Board expects sales and EBITDA to be at the lower end of the guidance for financial year 2016.

Författare Hugin

Tala om vad ni tycker

Tala om vad ni tycker

Ni är just nu inne på en betaversion av nya aktiespararna. Lämna gärna feedback på vad ni tycker i formuläret nedan.