Attendo: Attendo’s third quarter results for 2016: Establishing new nursing homes at faster pace

STOCKHOLM, Sweden–(BUSINESS WIRE)–Regulatory News:

Attendo (STO:ATT) is showing continued stable growth and margin
development in the third quarter of 2016. During the quarter, the pace
of establishing new nursing home has increased to meet the growing
shortage of nursing home beds in the Nordic countries.

Comments by Henrik Borelius, CEO

There was continued stable growth and margin performance in the third
quarter. Growth was driven mainly by the opening of new own nursing
homes and by acquisitions. Attendo is increasing the pace at which it is
establishing new units, and increased the number of beds under
construction during the quarter from an already high level. Although
there is a substantial need for new beds in elderly care, a commission
appointed by the Swedish government has presented proposals that could
reduce the incentive to establish new nursing homes and to develop care
solutions of tomorrow.

Own Operations showed continued good growth, both organically and
through acquisitions. The increase is explained mainly by new own
nursing homes, by higher occupancy in our units that were under start-up
during the same quarter last year, and by acquisitions. Attendo
continued to invest in new nursing homes, and five units were opened in
Finland during the third quarter. Construction began on a total of 14
units in Sweden and Finland, which will provide 490 new beds. The total
number of beds under construction is 1,716. This is partly an effect of
acquisitions, but mainly because Attendo has been successful in
identifying demand and rapidly translating this into construction starts.

Net sales in Outsourcing operations decreased slightly compared to the
third quarter of 2015, as a result of ended contracts. During the third
quarter of this year, Attendo won new contracts in care of older people
that will provide estimated annual revenue of SEK 70 million, and lost
contracts with annual revenue of SEK 100 million. Underlying net sales
in Staffing operations were slightly higher in the quarter compared to
the corresponding period in 2015. Demand for doctors staffing is still
good, but the availability of doctors to employ is a limiting factor.
The markets for Outsourcing and Staffing are expected to remain
challenging but stable.

A commission appointed by the Swedish government recently submitted a
proposal that would result in limitations for freedom of choice in
schools, and in health and social care, by restricting the opportunities
for private providers. This would reduce the ability of clients to
choose their own care, and would make things more difficult for local
authorities that engage private providers to meet their care needs.
Attendo does not believe the proposal will be implemented since there is
no majority in the Swedish parliament, the proposal is probably in
breach of EU legislation, and local authorities around the country
require the services of private providers in the field of social
welfare. The ongoing debate in Sweden stands in contrast with that in
Finland, where the forthcoming SOTE reform aims to expand the proportion
of private providers in health and social care in order to improve
quality and freedom of choice.

Attendo’s quality work in the third quarter was particularly focused on
activities to meet the needs of older people for exercise and spending
time outdoors. The recurring fitness “jog”, called Attendolunken had
record number of participants – more than 2,100 older people
participated. In Finland, Attendo has arranged a concert tour – Sydämeni
Tango. These concerts have become very popular and, in all, around 3,000
older people and their families have attended. Attendo has carried out
values weeks, aiming to increase quality and employee engagement.
Attendo also launched the care industry’s first share-savings programme
during the quarter. Engagement in Attendo’s development work and broad
co-ownership are important parts of Attendo’s culture and success, and
it is positive that more than 500 employees chose to participate in the

In summary, Attendo demonstrated good financial performance during the
quarter. The high number of beds under construction shows that we are
well positioned to achieve our growth targets in the coming years.

Summary of the third quarter 2016

  • Net sales increased by 5 percent to SEK 2,568m (2,455). Adjusted for
    currency effects net sales increased by 4 percent. Adjusted for
    currency effects and deconsolidation of subsidiary net sales increased
    by 7 percent. 
  • Operating profit (EBITA) decreased by 1 percent to SEK 340m (345),
    representing an operating margin of 13.2 percent (14.1). Adjusted for
    a capital gain from divestment of real-estate in the third quarter
    2015 of SEK 15m, operating profit (EBITA) increased by 3 percent.
  • Profit for the period amounted to SEK 224m (182), which represents a
    profit margin of 8.7 percent (7.4) and earnings per share diluted of
    SEK 1.39 (1.14). 
  • Operating cash flow amounted to SEK 101m (207).

Invitation to teleconference

The report will be presented in a teleconference on 11 November 2016 at
09:00 am (CET). The teleconference will be hosted by Attendo’s CEO
Henrik Borelius and CFO Tomas Björksiöö. The presentation will be held
in English.

To participate in the conference, please dial in on any number below at
least ten minutes before the start of the call:

SE:   +46 8 566 426 64
FI: +358 9 817 104 93
UK: +44 20 30 08 98 08

You can follow the presentation and the conference on the following

The quarterly report and other information material will be made public

Attendo AB (publ)

The information above is such that Attendo AB is obliged to make public
pursuant to the EU Market Abuse Regulation and the Securities Markets
Act. The information was submitted for publication, through the agency
of the contact person set out above, at 08.00 CEST on 11 November 2016.


Attendo – the leading care and healthcare company in the Nordics

Attendo is the leading private provider of publicly financed care and
healthcare services in the Nordic region. The company was founded in
1985 and was first to provide outsourced care for older people in
Sweden. In addition to care for older people, Attendo provides care for
people with disabilities, individuals and families, and, in Finland,
healthcare and dental care. Attendo has 19 000 employees and is locally
anchored with over 500 operations in more than 200 municipalities in
Sweden, Finland, Norway and Denmark.

This information was brought to you by Cision


For further information, please contact:
Andreas Koch,
Communications and IR-Director Attendo
Phone: +46 705 09 77 61