Regis Healthcare (REG) H2 2024 earnings summary

Executive summary

• Achieved record revenue of AUD 1,014.1 million, up 29.9% year-over-year, with strong growth in occupancy, earnings, and cash flow.

• Underlying EBITDA rose 28.7% to AUD 107.2 million; adjusted NPAT/NPATA up 24.7% to AUD 35.6 million.

• Net operating cash flow surged 139.8% to AUD 252.3 million; ended FY 2024 with a net cash position of AUD 65 million.

• Acquired CPSM, adding five premium homes and 644 beds, fully integrated and contributing AUD 7.5 million to underlying EBITDA.

• Board approved a final dividend of AUD 0.0664 per share, 50% franked, representing 100% of adjusted NPAT/NPATA (excluding one-offs).

Financial highlights

• Revenue from services exceeded AUD 1 billion for the first time, up 29.9% year-over-year.

• Underlying EBITDA reached AUD 107.2 million, up 28.7%; underlying NPAT/NPATA (excl. one-offs) was AUD 38.9 million, up 91%.

• Statutory net loss of AUD 21.4 million due to AUD 81.4 million non-cash bed licence amortisation, now fully amortized.

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

• Capital expenditure rose to AUD 67 million, focused on new developments, refurbishments, and technology.

Outlook and guidance

• Expect continued tight supply-demand dynamics, with occupancy likely to remain above 95% and potentially rise further.

• 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, including Camberwell and Toowong.

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

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