LifeWatch reports 2016 Financial Results
Zug/Switzerland, March 17, 2017 - LifeWatch AG (SIX Swiss Exchange: LIFE), a leading provider of medical solutions and remote diagnostic monitoring services in the digital health market, today reports its 2016 financial results.
In 2016 revenue was USD 113.8 million representing an increase of 6.8% over prior year's adjusted revenues. Gross profit for the period was USD 56.7 million, or 49.8% of revenue resulting in an EBITDA of USD 2.1 million.
While the revenue in 2016 was modestly higher than the estimated growth in the Company's market segment, the Company's profitability was negatively impacted by two large legal settlements, one-time costs associated with the discontinuation of the Vital Signs Patch (VSP) and International Normalized Ratio (INR) initiatives as well as the discontinuation of internal device development and closure of subsidiaries in Japan and India. These strategic decisions facilitated LifeWatch's transition to a pure-play service provider and have resulted in a nimbler organization which LifeWatch believes will yield improved operating results for the Company in 2017 and beyond.
In 2016, on a non-adjusted basis, EBIT was a negative USD 7.7 million due to increases in non-capitalized R&D, sales and marketing, general and administrative costs, increased legal expenses and costs attributable to the establishment of a joint-venture in Turkey.
After adjusting for one-time costs and write-offs, EBIT and EBITDA would result in approximately USD 4 million and USD 14 million, or 4% and 12% of revenue, respectively.
Outlook 2017
Following the successful capital increase and the settlement of the major legal cases in 2016, LifeWatch's efforts are focused on revenue growth and sustained profitability.
The completion of several in-house technology projects is anticipated to improve the efficiency of operations, increase gross profit and contribute to expansion in profitability. Several additional growth initiatives including the commencement of business in Turkey as well as the collaboration with GE Healthcare are also expected to contribute to LifeWatch's business.
2017 has started well and indications are positive. LifeWatch anticipates achieving double-digit revenue growth and positive operating results even after taking into account the costs associated with solicitation of potential acquirers following the public offer made by Aevis Victoria SA and investments into the Turkish joint venture.
Key Figures for Fiscal Year 2016 (unaudited, in USD millions)
| |
FFY 2016 |
FFY 2015 |
| |
adjusted |
unadjusted |
adjusted |
unadjusted |
| Revenues |
113.83 |
113.83 |
106.63 |
88.63 |
| Gross profit |
60.35 |
56.74 |
55.59 |
37.59 |
| As % of revenues |
53.0% |
49.8% |
52.1% |
42.4% |
| EBITDA / (LBITDA) |
14.05 |
2.15 |
15.57 |
(3.62) |
| As % of revenues |
12.3% |
1.9% |
14.6% |
-4.1% |
| EBIT / (LBIT) |
4.23 |
(7.67) |
7.54 |
(11.66) |
| As % of revenues |
3.7% |
-6.7% |
7.1% |
-13.2% |
| Net income / (loss) |
(1.50) |
(13.40) |
1.62 |
(11.95) |
| As % of revenues |
-1.3% |
-11.8% |
1.5% |
-13.5% |
| Total fixed assets, net |
18.36 |
18.36 |
16.35 |
16.35 |
| Total equity |
56.93 |
56.93 |
39.33 |
25.77 |
| Employees at the end of period |
640 |
640 |
612 |
612 |
Detailed reporting
The 2016 Annual Report will be available on the LifeWatch website via the following link: https://www.lifewatch.com/Investor-Relations/Financial-Publications-and-Presentations.html
Calendar:
April 26, 2017: Ordinary Shareholders Meeting in Zurich
August 24, 2017: Analyst Conference Results HY 2017
A press and analyst meeting will take place on March 20 at 10.00 in Zurich.
Dr. Stephan Rietiker, CEO, and Andrew Moore, CFO, will comment on the results of the 2016 financial year and provide an update on current projects.
The Live Audio Webcast and the presentation slides can be found under the following link:
http://lifewatch170316-live.audio-webcast.com
The dial-in numbers to join by telephone are detailed below:
CH: +41 22 580 59 70
GER: +49 69 2222 29 043
UK: +44 203 009 2452
USA: +1 855 402 7766
Participants Pin-Code: 60170589#
For further questions:
LifeWatch AG, Andrew Moore, CFO
c/o Communicators AG , Ralph Spillmann
Mobile: +41 79 514 64 84
E-Mail: investor-relations@lifewatch.com
About LifeWatch AG
LifeWatch AG, headquartered in Zug and listed on SIX Swiss Exchange (LIFE), Switzerland, is a leading healthcare technology and solution company, specializing in advanced digital health systems and wireless remote diagnostic patient monitoring services. LifeWatch's services provide physicians with critical information to determine appropriate treatment and thereby improve patient outcomes. LifeWatch AG has operative subsidiaries in the United States, in Switzerland and in Israel, and is the parent company of LifeWatch Services Inc., and LifeWatch Technologies, Ltd. LifeWatch Services, Inc. is a leading U.S.-based provider of cardiac monitoring services. LifeWatch Technologies Ltd., based in Israel, is a leading developer and manufacturer of telemedicine products. For additional information, please visit www.lifewatch.com.
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This press release includes forward-looking statements. All statements other than statements of historical facts contained in this press release, including statements regarding future results of operations and financial position, the business strategy, and plans and objectives for future operations, are forward-looking statements. The words "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect" and similar expressions are intended to identify forward-looking statements. LifeWatch AG has based these forward-looking statements largely on current expectations and projections about future events and financial trends that it believes may affect the financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances described may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. All forward-looking statements are based only on data available to LifeWatch AG at the time of the issue of this press release. LifeWatch AG does not undertake any obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise.
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