MEDICREA Reports First Half 2020 Results
04 Settembre 2020 - 4:14PM
Business Wire
- EBITDA (1) : €1,9M POSITIVE
- LIMITED OPERATING LOSS DESPITE COVID-19
CRISIS
- STEPS TO MERGE WITH MEDTRONIC IN
PROGRESS
The MEDICREA® Group (Euronext Growth Paris: FR0004178572 – ALMED
; OTCQX Best Market –MRNTF), pioneering the transformation of
spinal surgery through Artificial Intelligence, predictive modeling
and patient specific implants with its UNiD™ ASI (Adaptive Spine
Intelligence) proprietary software platform, services and
technologies, reports its unaudited results for the first half of
2020, as approved by the Board of Directors on August 28, 2020.
€’million
Q1 2020
Q2 2020
H1 2020
H1 2019
Sales
Gross margin in % of sales
EBITDA (1)
In % of sales
Operating income
Other operating income and expense
Share-based payments
Cost of net financial debt
Income before taxes
Net Income
7.4
77%
1.1
15 %
(1.4)
(0.1)
(0.1)
(1.9)
(3.5)
(3.7)
5.8
70%
0.8
14 %
(1.7)
(0.2)
(0.1)
(0.7)
(2.6)
(2.6)
13.2
74%
1.9
14 %
(3.1)
(0.3)
(0.1)
(2.6)
(6.1)
(6.3)
16.1
77%
0.5
3%
(3.5)
(0.5)
(1.0)
(2.0)
(6.9)
(7.0)
Changes in exchange rates had no material impact on year to year
comparison
(1) : Earnings before interest depreciation and
amortization
Sales for the first half of 2020 amounted to 13.2 million euros,
down 18% compared to the first half of 2019 due to the COVID-19
pandemic. Despite a sharp decline in sales in April and May related
to the temporary suspension of spinal surgery in most hospitals and
clinics, sales have since recovered, increasing by +3% in June and
+5% in July compared to 2019. In the United States, the number of
UNiD® personalized surgeries also rebounded sharply with two
consecutive record months of 144 surgeries in June and 165 in July,
up 33% and 40% respectively compared to the same periods in
2019.
Gross margin rate was 74% for the first half of the year, down 3
points compared with the same period last year, as a consequence of
the rate dropping to 70% in the second quarter. This decrease is
explained by the shutdown of manufacturing and employees placed
under partial unemployment for 2 months. The strengthening of the
business since June should have a positive impact on Q3 2020 gross
margin which should move back to the normative rate of 80%.
Operating expenses decreased by 3.1 million euros at constant
exchange rates compared to the first half of 2019. The partial
unemployment schemes implemented in France and Belgium and the
temporary suspension of employment contracts in the United States
(furlough mechanism) led to a decrease in wages and salaries costs
in the second quarter. Travel restrictions and cancellation of
industry congresses also contributed to the reduction of costs and
fully offset the drop in gross margin in value, thus limiting the
operating loss.
Operating income before interest, depreciation and amortization
(EBITDA) is positive at 1.9 million euros, a 4x increase compared
to the same period in 2019.
Taking into account these elements, operating loss before
non-recurring charges was -3.1 million euros for the first half of
2020, an improvement of 0.4 million euros compared to the first
half of 2019.
The cost of net financial debt increased by 0.6 million euros
due to the implementation in September 2019 of a new stake for $6
million of an initial $30 million bond issued in November 2018.
As of August 31, 2020, cash on hand stood at 16 million euros,
compared to 13.2 million euros as of June 30, 2020. This
reinforcement is mainly linked to the exercise of warrants issued
during past capital increases.
Outlook
« We announced in a press release dated July 15th the proposed
friendly public offer from MEDTRONIC on MEDICREA® shares. This
merger aims to use MEDICREA®’s capabilities and solutions in terms
of data analysis and personalized implants and allow MEDTRONIC to
become the 1st company in the world to offer a fully integrated
solution including artificial intelligence driven surgical
planning, personalized spinal implants and robotic assisted
surgical delivery, which will significantly benefit customers and
patients. The steps to bring this merger to a successful conclusion
are in progress. We are confident and are doing everything possible
to ensure that the operation is carried out within the announced
deadlines » commented Denys Sournac, Founder, President and CEO of
MEDICREA®.
Next publication: 2020 Third-Quarter sales: October 8,
2020 after market
About MEDICREA® (www.medicrea.com)
Through the lens of predictive medicine, MEDICREA® leverages its
proprietary software analysis tools with big data and machine
learning technologies supported by an expansive collection of
clinical and scientific data. The Company is well-placed to
streamline the efficiency of spinal care, reduce procedural
complications and limit time spent in the operating room.
Operating in a $10 billion marketplace, MEDICREA® is a Small and
Medium sized Enterprise (SME) with 175 employees worldwide, which
includes 35 who are based in the U.S. The Company has an
ultra-modern manufacturing facility in Lyon, France housing the
development and production of 3D-printed titanium patient-specific
implants.
For further information, please visit: medicrea.com.
Connect with MEDICREA® FACEBOOK |
INSTAGRAM | TWITTER | WEBSITE | YOUTUBE
MEDICREA® Denys SOURNAC Founder,
Chairman and CEO dsournac@medicrea.com
Fabrice KILFIGER Chief Financial Officer
fkilfiger@medicrea.com Tel: +33 (0)4 72 01 87 87
MEDICREA® is listed on EURONEXT Growth Paris
EnterNext PEA PME 150 Index ISIN: FR 0004178572 Ticker: ALMED LEI:
969500BR1CPTYMTJBA37
MEDICREA® is traded on OTCQX Best Market
Ticker: MRNTF
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version on businesswire.com: https://www.businesswire.com/news/home/20200904005358/en/
Denys SOURNAC Founder, Chairman and CEO
dsournac@medicrea.com
Fabrice KILFIGER Chief Financial Officer fkilfiger@medicrea.com
Tel: +33 (0)4 72 01 87 87