Regis Healthcare (REG) H2 2024 earnings summary

Executive summary

• Revenue rose 30% year-over-year to $1,014.1 million, driven by higher occupancy, improved government funding, and the CPSM acquisition.

• Underlying EBITDA increased 29% to $107.2 million; underlying EBITA surged 55% to $61.5 million year-over-year.

• NPATA grew 25% to $35.6 million, but statutory net loss after tax was $21.4 million due to non-cash bed licence amortisation.

• Net operating cash flow surged 140% to $252.3 million, with net cash position of $64.9 million at year-end.

• Final dividend of 6.64 cents per share (50% franked) declared, representing 100% of NPATA excluding one-off items.

Financial highlights

• Revenue from services exceeded $1 billion for the first time, up 30% year-over-year.

• Underlying EBITDA at $107.2 million, up 28.7% year-over-year; underlying NPAT (excl. one-offs) was $38.9 million, up 91%.

• Statutory net loss of $21.4 million due to $81.4 million non-cash bed licence amortisation.

• Net RAD cash inflow increased 223% to $141 million, driven by higher occupancy and CPSM acquisition.

• Capital expenditure rose 25% to $66.9 million, focused on new developments, refurbishments, and technology.

Outlook and guidance

• High occupancy anticipated to continue, with demographic trends and insufficient new supply supporting further growth.

• Labor costs per resident per day expected to increase 4-6% in FY 2025, pending AN-ACC funding adjustments.

• CapEx for FY 2025 anticipated to increase, with uplift in refurbishment and new developments.

• Actively pursuing further acquisitions and greenfield projects, with over $400 million in undrawn debt facilities.

• Awaiting government response on Aged Care Taskforce recommendations and new AN-ACC funding model.