Primary Health Care Ltd Primary Health Care Ltd Financial Year - - PowerPoint PPT Presentation

Primary Health Care Ltd Primary Health Care Ltd

Financial Year Ended Financial Year Ended 30 June 2005 30 June 2005 Results Presentation Results Presentation 9 August 2005 9 August 2005

Financial Results: Summary

($ Million, except EPS)

FY2005

growth

FY2004

growth

FY2003 Sales revenue (excl. investment/property) 190.9

26%

151.4

19%

127.0 EBITDA (excl. investment/property) 73.7

36%

54.2

30%

41.6 EBITA (excl. investment/property) 61.3

41%

43.5

33%

32.7 Normalised NPAT 42.2

47%

28.7

31%

21.9 Normalised basic EPS (cents per share) 37.9

35%

28.1

29%

21.9

Normalised = before goodwill amortisation

– EBITDA ( excl. investments ) up 36% and EBITA up 41% over prior period – Driven largely by organic revenue growth & improved margins

FY 2005 FY 2004 FY 2003 Medical centres 57,949 41,774 31,994 Pathology 13,144 12,421 9,655 Health Technology 2,597 Investments/Properties 2,515 3,190 EBITDA 76,205 54,195 44,839 Depreciation 12,367 10,704 8,993 EBITA 63,838 43,491 35,846 Goodwill amortised 14,219 10,651 9,350 EBIT 49,619 32,840 26,496 Interest expense 5,423 6,016 5,277 Share of associate loss

• 211

201 PBT 44,196 26,613 21,018 Tax charge 16,260 8,572 8,428 Profit After Tax 27,936 18,041 12,590

Financial Results: Income Statement

EBITDA improvements being reflected at bottom line with NPAT increasing 55% over FY2004

Profit After Tax normalised 42,155 28,692 21,940

($ 000s)

Financial Results: Balance Sheet

Debt to Equity 6/05 6/04 27% 47% EBITDA interest cover (assuming 6.5%) 6/05 6/04 13.7x 8.9x Addition of HCN at balance date has increased both current receivables and liabilities

291.8 405.9 198.5 320.0 Equity 93.3 85.4 Net Debt (Bills+Leases) 291.8 405.9 Net Assets 10.6 42.0 Liabilities 302.4 447.9 Total Assets 178.5 305.6 Goodwill 94.0 107.0 PP&E 9.4 0.2 Investments 20.5 35.1 Receivables $m $m 30/6/04 30/6/05

Financial Results: Per Share Results

Reported earnings per share up 42% on prior period to 25.13cps Normalised earnings per share up 35% on prior period to 37.92cps (Normalised to remove impact of amortisation of goodwill) Final dividend of 13.0c per share taking total FY05 dividend per share to 25.0 cents (17.5 cents for FY04) fully franked Final dividend payable 12 September 2005. Record date 26 August 2005. DRP/BSP to be at 2.5% discount

Growth at bottom line compounding Only 3 new practices

• pened in past 2

financial years “Normalised” to remove impact

• f Goodwill

Amortisation

Financial Results: Historical Trend Financial Results: Historical Trend

PRY Normalised NPAT

5 10 15 20 25 30 35 40 45 FY00 FY01 FY02 FY03 FY04 FY05 $ Million

International Accounting Standards International Accounting Standards

• Net profit after tax estimated at $38.7m under AIFRS for 2005 vs $27.9m
• Amortisation of goodwill - prohibited from 1 July 2005

Annual impairment testing on cash generating units Anticipate write back of $51.8m to distributable reserves at 30 June 2005

• Business Combinations - restate all acquisitions

Anticipate $19.8m debit to share capital account Anticipate $4.3m charge to retained profits to 30 June 2005

• Share based payments – expensing of share options

Anticipate $1.8m charge to retained profits to 30 June 2005 Anticipate $1.65m charge to pre-tax profit for year ended 30 June 2006

• Current facility of $175m utilised to $87m
• Capacity to fund planned roll-out
• Investment for each new centre continues in line with historical
• Strong cash flow with reported annual revenues again equaling cash

Future Growth – Funding Capacity

Medical Centres: Patient Attendance

GP patient attendances up 11.3% to 2.95m for the year “Same-centre” growth in patient attendances year on year at 7% 3 new medical centres opened successfully during year Major contribution has been from 21 centres established at 30 June 2003 Medical Centre revenues to PRY up $22.8m (24%) to $116.7m for the period with the increase in Medicare rebates as at 1 January 2005 responsible for only 4% increase in group revenue for the year

Medical Centres: Operations

This year has highlighted strength of medical centre business across spectrum of practice maturity and location – EBITDA for all centres up $16.2m or 41% after head office costs – Significant margins improvements across centres – “Same-centre” EBITDA growth year on year at 35% – “Same-centre” EBITDA growth year on year for oldest 10 centres at 26% Faster ramp up to cash flow positive of newer centres c.f. historical Pipeline of new sites at various stage of development

Future Growth: Medical Centres

21 Centres opened prior to 30 June 2003 3 Centres opened in FY05 3 Centres will open 1st Quarter FY06 4 Centres will open during balance of FY06 31 Estimated centres open at 30 June 2006

Pathology: Segment performance

FY 2005 FY 2004 FY 2003 Revenue 68,280

8%

63,217

11%

56,526 EBITDA 13,144

6%

12,421

28%

9,655

Margin 19.3% 19.6% 17.1%

EBITA 11,581

6%

10,921

31%

8,342

Margin 17.0% 17.3% 14.8%

growth growth

($ 000s)

Pathology revenues up 8% with episodes up 2.5% over FY2004 EBITDA up 6%. Margin - slight decrease due to interstate expansion and increase in consumable and occupancy costs

Health Technology: HCN Acquisition

• New Chief Executive Officer, John Frost
• New Chief Technical Officer, Matthew Bardsley
• Consolidation & upgrading of key functions
• Organisation restructured to provide product ownership and focus
• Current focus - ongoing development and delivery of Medical Director v3

– performance, stability, improved clinical workflow

• Continuing to enhance other software programmes

– expansion of decision support applications

• Apparent maintenance, or increase, in market share in all core applications

and products (clinical, practice management, decision support)

Key Indicators: Historical Trend

GP Patient Numbers

500 1,000 1,500 2,000 2,500 3,000 3,500 2001 2002 2003 2004 2005 GP Pat. Numbers ('000s)

Sales Revenue

50 100 150 200 250 2001 2002 2003 2004 2005 Revenue $m (excl. investment/property)

EBITDA

10 20 30 40 50 60 70 80 2001 2002 2003 2004 2005 EBITDA $m (excl. investment/property)

EBITDA Margin

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 2001 2002 2003 2004 2005 EBITDA (excl. p&i)/Revenue

EBITDA 2001-2005 Compound Annual Growth Rate = 31%

Focus for FY 2006

Medical Centres Roll-out of new centres Continue to meet increasing demand for medical services Consolidate IT and management platform Pathology Implement pre analytical, analytical and post analytical automation Enhance inter-state operations Health Technology Cultural change / re-engineering of operations Roll out MD3 Enhance all HCN software and products