SHL Telemedicine reports another quarter of strong operating results

In Q3 2009, SHL’s sustained growth trend continued in its various business lines contributing to strong operating results.

• Revenues reaching USD 12.7 million for the quarter. Representing growth of 15.3% year over year at constant exchange rates*.
 
• EBITDA and EBIT for the quarter up 22.2% and 46.2% over Q3 08 reaching USD 3.3 million (26.0% of revenues) and USD 1.9 million (15.0% of revenues), respectively.

• Net income of USD 1.2 million (9.4% of revenues) for the third quarter and USD 4.0 million (11.5% of revenues) for the nine months of 2009.

• Cash provided by operations for the quarter reaching USD 2.5 million.
 
• On track to meet 2009 financial guidance.

Tel Aviv/Zurich, 11 November 2009 – SHL Telemedicine Ltd. (SIX Swiss Exchange: SHLTN), a leading provider and developer of advanced personal telemedicine solutions, today announced results for the third quarter and the nine months of 2009.

In Q3 2009, SHL’s sustained growth trend continued in its various business lines contributing to strong operating results. Continued subscriber recruitment resulted in another quarter of revenue growth while increased investments in marketing and business development caused overall operating profit to remain steady compared to the second quarter of 2009.

Financial highlights

Revenues for the third quarter amounted to USD 12.7 million compared to USD 11.8 million in Q3 2008. At constant exchange rates*, revenues amounted to USD 13.6 million, reflecting a 15.3% increase over the third quarter of 2008.

Revenues for the nine months of the year amounted to USD 34.7 million compared to USD 33.3 million in the same period of 2008. Revenues for the nine months on the basis of constant exchange rates* reached USD 38.5 million, a 15.6% increase over the nine months of 2008.

EBITDA for the quarter continued to improve reaching 26.0% of revenues and amounting to USD 3.3 million compared to an EBITDA of USD 2.7 million (22.9% of revenues) in Q3 2008. EBIT for the quarter reached USD 1.9 million (15.0% of revenues), an increase of 46.2% over the EBIT of USD 1.3 million (11.0% of revenues) in the third quarter of 2008.

EBITDA for the nine months of 2009 amounted to USD 8.8 million (25.4% of revenues) – an increase of 29.4% over the EBITDA of USD 6.8 million (20.4% of revenues) in the comparable period of 2008. EBIT for the nine months of 2009 grew by 70%, reaching USD 5.1 million (14.7% of revenues), compared to an EBIT of USD 3.0 million (9.0% of revenues) in the nine months of 2008.

SHL’s net income for the quarter more than tripled compared to Q3 2008 reaching USD 1.2 million (9.4% of revenues). For the nine months, net income more than doubled reaching USD 4.0 million, compared to a net income of USD 1.6 million in the nine months of 2008.

Cash provided by operations for the quarter continued to strongly improve amounting to USD 2.5 million compared to a neutral cash position in Q3 08. For the nine months of 2009 cash provided by operations reached USD 4.3 million compared to cash used in operations of USD 10.2 million in the nine months of 2008. Cash reserves at September 30, 2009 amounted to USD 22.0 million.

Balance sheet. SHL’s assets at September 30, 2009 totalled USD 86.6 million with shareholders’ equity amounting to USD 64.2 million (74.1% of balance sheet).

Commenting on the results Erez Alroy, Co-CEO of SHL Telemedicine, stated: “We are very pleased with the continued progress in our business bringing with it another quarter of improved financial performance.”

Outlook 2009
Assuming constant currency exchange rates, management reaffirms its financial guidance for the full year with revenues between USD 51-53 million and net income between USD 5 – 6 million.

Full Press Release