Primary Health Care — FY2013 Earnings Presentation
15 slides from Primary Health Care's earnings presentation, Aug 14, 2013
Slide 1: Results for Year Ended 30 June 2013
Results for Year Ended 30 June 2013 Investor Presentation 14 August 2013
Slide 2: Highlights
Highlights Strong result – Primary delivering on its business model FY2013 result highlights • EBITDA up 9.7% to $385.1m • EBITA up 11.4% to $323.2m • Significant margin gains in Medical Centres (80bps), Pathology (80bps), and Imaging (400bps) • NPAT up 29% to $150.1m • EPS up 28% to 29.9 cents per
Slide 3: Financial Summary
Financial Summary Year Ended Year Ended Year Ended $m 30 June 2013 30 June 2012 30 June 2011 Revenue 1,456.3 1,392.1 1,312.9 EBITDA (1) 385.1 351.1 318.6 EBITDA margin 26.4% 25.2% 24.3% Depreciation & Amortisation (90.7) (85.9) (82.2) Finance costs (2) (76.5) (96.8) (97.1) Income tax (65.9) (49.5) (
Slide 4: Segment Analysis
Segment Analysis Year Ended Year Ended Year Ended $m 30 June 2013 30 June 2012 30 June 2011 Revenue Medical Centres 300.8 290.0 274.6 Pathology 836.3 785.4 740.1 Imaging 309.6 307.9 285.0 Health Technology 37.0 35.9 36.0 Corporate 1.6 1.2 3.0 Intersegment (29.0) (28.3) (25.8) TOTAL 1,456.3 1,392.1 1
Slide 5: Cash Flow
Cash Flow Continued improvement in cash from operating activities Year Ended Year Ended $m 30 June 2013 30 June 2012 Cash flow from operating activities 269.4 228.7 Add back - Interest and other finance costs paid 71.9 91.5 - Net income tax paid 45.8 26.1 - Restructure provisions paid 0.3 7.4 Gross
Slide 6: Medical Centres
Medical Centres Margin growth and non-GP service growth as centre profile matures Year Ended Year Ended Year Ended 30 June 2013 30 June 2012 30 June 2011 Revenue ($m) 300.8 290.0 274.6 EBITDA ($m) 168.4 160.0 150.4 EBITDA margin 56.0% 55.2% 54.7% • Revenue growth of 3.7% across all medical centres a
Slide 7: Medical Centres
Medical Centres Large-scale medical centre model continues to deliver sustained growth Year Ended Year Ended Year Ended $m 30 June 2013 30 June 2012 30 June 2011 Revenue Large-scale centres 278.5 262.1 234.4 Small scale (ex-Symbion) centres 20.0 24.3 30.0 Clinical Trials 2.3 3.6 10.2 TOTAL 300.8 290
Slide 8: Pathology
Pathology Revenue growth robust with incremental margin gains Year Ended Year Ended Year Ended 30 June 2013 30 June 2012 30 June 2011 Revenue ($m) 836.3 785.4 740.1 EBITDA ($m) 147.8 132.4 118.6 EBITDA margin 17.7% 16.9% 16.0% • Organic revenue growth of 6.3% over prior period • Incremental EBITDA a
Slide 9: Imaging
Imaging Imaging improvement continues Year Ended Year Ended Year Ended 30 June 2013 30 June 2012 30 June 2011 Revenue ($m) 309.6 307.9 285.0 EBITDA ($m) 72.0 59.4 43.4 EBITDA margin 23.3% 19.3% 15.2% • Organic billing growth of 5% • Reported revenue growth impacted by radiologists moving to fee-for-
Slide 10: Health Technology
Health Technology Primary committed to retain and invest in this business Year Ended Year Ended Year Ended 30 June 2013 30 June 2012 30 June 2011 Revenue ($m) 37.0 35.9 36.0 EBITDA ($m) 20.2 19.9 19.5 EBITDA margin 54.6% 55.4% 54.2% • Software products performing in line with expectations • Senior m
Slide 11: Corporate
Corporate Corporate costs, management, and infrastructure stable Year Ended Year Ended Year Ended $m 30 June 2013 30 June 2012 30 June 2011 Revenue ($m) 1.6 1.2 3.0(1) Expenses ($m) (24.9) (21.8) (16.3) EBITDA ($m) (23.3) (20.6) (13.3) • Increase in expenses mainly salary related • Primary retains c
Slide 12: Capital Investment
Capital Investment PP&E expenditure has moderated and practices continue to join Year Ended Year Ended Year Ended $m 30 June 2013 30 June 2012 30 June 2011 Property plant & equipment 74.9 79.3 99.1 Business acquisitions 69.8 66.0 84.9 Intangibles 36.7 26.2 20.4 TOTAL 181.4 171.5 204.4 • PP&E decreas
Slide 13: Debt Position
Debt Position Balanced debt maturity profile and reduced margins $m 30 June 2013 Bank and finance debt 927 Cash (38) Retail Bonds 152 Net debt per balance sheet at 30 June 2013 1,041 • $1.02bn bank debt facility out to February 2015 and October 2016 • $100m working capital facility undrawn at 30 Jun
Slide 14: Summary and Outlook
Summary and Outlook FY2013 result • EBITA growth of 11.4% • NPAT growth of 29% • EPS growth of 28% • Margins gains across the group • Final dividend up 83% to 11.0 cents per share (59% payout ratio for FY2013) FY2014 earnings guidance • 7% to 13% EPS growth • EBITDA $395m to $410m(1) Focus areas/opp
Slide 15: Disclaimer
DISCLAIMER This presentation has been prepared by Primary Health Care Limited (ACN 064 530 516) (‘PRY’). Material in this presentation provides general background information about PRY which is current as at the date this presentation is made. Information in this presentation remains subject to