Abano Healthcare Group 2013 Half Year Results

Media Release 21 December 2012

Abano Healthcare Group 2013 Half Year Results

Abano delivers strong results and growth for first six months

Abano Healthcare Group has reported strong earnings growth for the six months to 30 November 2012 as it continues to successfully roll out its long term growth strategy. The results are based on unaudited management accounts and are in line with market guidance.

The company reported revenues of $107.9 million (up 6%, reflecting the change in the contracting basis for Australian dentists), Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) of $14.8 million (up 26%) and a Net Profit After Tax (NPAT) of $1.5 million (up 160%).

Excluding items required to be expensed under the International Financial Reporting Standards (IFRS), the one off gain from the sale of the company’s brain injury rehabilitation business and a review of Bay International’s goodwill and tax losses, the underlying EBITDA was $15.4 million (up 23% on a comparable basis), resulting in an underlying NPAT of $2.7 million (up 108% on a comparable basis).

Chairman of Abano, Trevor Janes commented: “The company also reports underlying earnings as the Board believes that this is a more appropriate representation of Abano’s performance and provides more useful information on the “normalised” profit of the company, rather than the accounting requirements of IFRS.”

He continued: “Recent changes to IFRS have also affected how acquisitions of minority holdings are accounted for. The result is that Abano’s $17.9 million acquisition of the 30% minority holding in Dental Partners is accounted for as a reduction in equity rather than an increase in the value of assets owned. This treatment results in a significant understatement of Abano’s equity and the carrying value of Dental Partners in Abano’s financial statements.”

Managing director of Abano, Alan Clarke, commented: “Our businesses have performed well over the six month period, and we are now realising some of the early benefits from our accelerated dental acquisition programme and the investment into our dental and radiology businesses during FY12 and the first six months of FY13. These benefits will continue to be evident during the second half of the year and into FY14.”

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Full release: REL__Abano_2013_Half_Year_Results.pdf

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