IBA Reports Half Year Results for 2019

Corporate
/
21.08.2019

  • Group revenue up 13.8% to EUR 102.8 million, with higher revenues expected over H2 2019
  • Market leadership confirmed in all business lines and major geographies
  • Two Proteus®ONE solutions sold in Italy and USA
  • Contract for five-room Proteus®PLUS solution in China signed and financially activated
  • Nine Other Accelerator systems sold at June 30 (15 sold year to date)
  • Equipment and services backlog reaches all-time high at EUR 1.1 billion
  • Strong performance for Dosimetry, which continues to be held for sale
  • Positive FY 2019 REBIT guidance reiterated

Louvain-La-Neuve, Belgium, August 22, 2019 - IBA (Ion Beam Applications SA, EURONEXT), the world’s leading provider of proton therapy (PT) solutions for the treatment of cancer, today announces its consolidated results for the first half of 2019.

 

H1 2019
(EUR 000)

H1 2018
(EUR 000)

Variance
(EUR 000)

Variance
%

  PT & Other Accelerators

102 815

90 353

+12 462

+13.8%

 Total Net Sales

102 815

90 353

+12 462

+13.8%

 REBITDA*

-1 546

-3 072

+1 526

+49.7%

    % of Sales

-1.5%

-3.4%

 REBIT*

-7 118

-6 156

-962

N/A

    % of Sales

-6.9%

-6.8%

 Profit Before Tax

-6 150

-8 025

+1 875

+23.4%

    % of Sales

-6.0%

-8.9%

  Discontinued operations

1 959

662

+1 297

+195.9%

 NET RESULT*

-5 317

-7 015

+1 698

+24.2%

    % of Sales

-5.2%

-7.8%

* IFRS 16 – Leases became effective on January 1, 2019. The effect of this accounting standard at June 30, 2019 is an improvement of REBIT by EUR 0.1 million and of REBITDA by EUR 1.9 million. The impact on the net result is immaterial.

Olivier Legrain, Chief Executive Officer of IBA SA, commented: “IBA experienced a strong order intake across all business lines in the first half, particularly in Other Accelerators. Three new Proton Therapy orders, and nine new orders in Other Accelerators, helped revenues increase by 13.8% from a year earlier.

“Backlog conversion in the second half of the year is due to be strong for Proton Therapy with at least six rooms expected to start installation and more than ten expected to be delivered to customers. As a result, we are reiterating full-year guidance of a positive REBIT, driven by the substantial rise in PT and Other Accelerators backlog conversion, continued growth in service revenues and a sustained focus on cost control. Dosimetry had an excellent first half in terms of both revenue growth and profitability. We continue to retain it as an asset held for sale as we actively review the most value enhancing option for its future growth and development.

“While carefully managing our costs as we seek to achieve sustained profitability, IBA is continuing to invest in R&D initiatives that will drive future growth and maintain our superior technology offering. We were particularly encouraged by progress to bring Flash irradiation to clinical treatment in the Netherlands and the UK in the first half, demonstrating IBA’s leadership in the development of this novel technique which has the potential to dramatically change the landscape of radiotherapy and patient cancer care.”

Financial highlights

  • Total Group H1 revenues of EUR 102.8 million, up 13.8% (H1 2018: EUR 90.4 million), driven by significant Proton Therapy and Other Accelerator sales from new prospects and backlog conversion of the strong order intake in 2018
  • EUR 1.1 billion equipment and service backlog, up more than 12%
  • Total operating expenses up 6% to EUR 36.1 million, reflecting targeted R&D investment including in ARC and Flash therapy research
  • REBIT loss of EUR -7.1 million versus EUR -6.2 million in the prior year, reflecting a slower Proton Therapy backlog conversion in H1, pricing pressure from competition and increased investment in R&D. The REBITDA line in the period was positively impacted by an IFRS16 adjustment of EUR 1.9 million.
  • REBIT margin of -6.9% (H1 2018: -6.8%)
  • Dosimetry (discontinued operation) net profit EUR 2.0 million, up 195.9% (H1 2018: EUR 0.7 million), driven by strong sales and cost controls, and REBIT up 66%. The division remains held for sale
  • Gross cash of EUR 20.3 million (including cash from Dosimetry for EUR 1.4 million) and net debt position of EUR -58.1 million (excluding impact of IFRS16)

Business highlights

  • Strong order intake across all business lines, with total order intake for Proton Therapy and Other Accelerators of EUR 133.4 million, up 112% from the same period last year
  • Two Proteus®ONE* contracts (Kansas, US and Milan, Italy) and one Proteus®PLUS contract (Shenzhen, China) signed and revenue recognition initiated
  • IBA selected by Shenzhen Municipal People's Government in March as preferred vendor to install a Proteus®PLUS five-room PT solution. Contract signed before period-end with down payment expected imminently and revenue recognition commenced
  • Proton therapy projects on track, with 24 under construction comprising 16 Proteus®ONE and eight Proteus®PLUS solutions
  • No new installations started during the first half of 2019 but the second half is expected to be strong with two Proteus®Plus projects (six rooms) expected to start installation. In comparison, in 2018, two project installations (two rooms) started in the first half while installation of five projects (five rooms) started over the second half
  • Another period of high sales in Other Accelerators for H1 2019 with nine machines sold in Asia, Europe and the US at end of June, with another six machines sold after period end
  • Growing contribution from service revenues, up 13%, including operations and maintenance revenues from three additional PT contracts
  • Agreement signed to transfer intellectual property to dedicated entity for the development of a hadron therapy system, as part of IBA’s ongoing strategy to leverage its unique expertise in particle accelerator technology; EUR 2.9 million gain on sale of intangible assets. IBA to retain 41.8% of entity following financing by several public and private players
  • Strong cost control measures remain in place, while allowing for strategic investments in R&D
  • First Flash irradiations delivered in research mode at UMCG in Groningen, Netherlands in March, and the Rutherford Cancer Centre in Reading, UK in June, demonstrating IBA’s leadership in this novel, non-invasive delivery of ultra-high dose radiation

 ***ENDS***

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A conference call to discuss the half year results will be held today at3pm CEST / 2pm BST / 9am EDT / 6amPDT and can be accessed online at:

http://arkadinemea-events.adobeconnect.com/iba2208/event/registration.html

If you would like to participate in the Q&A, please dial (PIN code 62997065#):

Belgium:                      +32 2 403 58 16
UK:                              +44 20 71 94 37 59
NL:                              +31 207 09 51 19
LU:                              +352 2 730 01 63
US:                              +1 64 67 22 49 16
FR:                              +33 1 72 72 74 03

The presentation will be available on IBA’s investor relations website and on: https://iba-worldwide.com/content/half-year-2019-results-press-release-conference-call-details-and-presentation shortly before the call.

To ensure a timely connection, it is recommended that users register at least 10 minutes prior to the scheduled webcast.

Financial calendar
Third Quarter Business Update         November 14, 2019
Full Year Results 2019                      March 26, 2020

About IBA

IBA (Ion Beam Applications S.A.) is a global medical technology company focused on bringing integrated and innovative solutions for the diagnosis and treatment of cancer. The company is the worldwide technology leader in the field of proton therapy, considered to be the most advanced form of radiation therapy available today. IBA’s proton therapy solutions are flexible and adaptable, allowing customers to choose from universal full-scale proton therapy centers as well as compact, single room solutions. In addition, IBA also has a radiation dosimetry business and develops particle accelerators for the medical world and industry. Headquartered in Belgium and employing about 1,400 people worldwide, IBA has installed systems across the world.

IBA is listed on the pan-European stock exchange NYSE EURONEXT (IBA: Reuters IBAB.BR and Bloomberg IBAB.BB). More information can be found at: www.iba-worldwide.com

*Proteus®ONE and Proteus®PLUS are brand names of Proteus 235

 

For further information, please contact:

IBA
Soumya Chandramouli
Chief Financial Officer
+32 10 475 890
Investorrelations@iba-group.com

Thomas Ralet
Vice-President Corporate Communication

+32 10 475 890
communication@iba-group.com

 

For media and investor enquiries:

Consilium Strategic Communications
Amber Fennell, Angela Gray, Lucy Featherstone, Lizzie Seeley
+44 (0) 20 3709 5700
IBA@consilium-comms.com

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