Once again, Abano has delivered a record result, with improvements at Revenue, EBITDA and NPAT for the 2013 financial year.
Reported revenue was a record $207.0 million and Net Profit After Tax (NPAT) was $2.8 million, up 75% on the previous year. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) of $27.7 million was up 8% on last year.
The revenue and EBITDA results reflect the divestment of the brain injury rehabilitation business in June 2012 at the start of the financial year, resulting in no further earnings contributions from this business. The Australian dental business, Dental Partners, also continued to roll out the change in the basis for contracting dentists, which in effect means revenue is now recognised after the payment of dentists’ commissions.
Gross revenues which include the audiology group1 and Australian dental revenues before payment of dentists’ commissions increased 9% to $257.8 million (FY12: $236.7 million), primarily driven by increasing dental group gross revenues which were up 18% on FY12.
Underlying earnings2, excluding non cash 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, were $28.6 million at EBITDA giving an underlying NPAT of $4.5 million, up 50% on FY12.
The positive FY13 result was delivered despite the ongoing soft economic environment in New Zealand and a downturn in the Australian economy and consumer confidence, particularly in the second half year. While healthcare overall is relatively shielded from changing economic headwinds, some privately funded healthcare services can be impacted.
1 Abano holds a 50% share in Bay International and therefore the results for the Bay group are equity accounted and not included in the reported revenue and EBITDA results.
2 More information on gross revenue and underlying earnings which are non-GAAP financial measures and are not prepared in accordance with NZ IFRS, is available on the Abano website at www.abano.co.nz/underlyingearnings.