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Regis Healthcare Reports 7.9% Rise in Revenue

Regis Healthcare Reports 7.9% Rise in Revenue
Regis Healthcare Ltd released relatively positive results, supported by improvements in earnings and profits
Feb 26, 2016 By Ben Khouri Tags: REG

Regis Healthcare Ltd (ASX:REG) have released their results for the half year ending 31st of December 2015. The results were relatively positive, supported by improvements in earnings and profits.

Revenue up 7.9%

Revenue improved 7.9% for the period, to $236.6million. Normalised earnings rose 12% compared to the PCP. Additionally, EBITDA and NPAT improved by 14% and 15%, when compared on a normalised basis, to $51 and $28.3 million respectively. 

Normalised earnings are earnings adjusted for significant one off events that have occurred during the period.

The aged healthcare provider partially attributed the improved performance over the period to the 8.7% increase in 'Government Revenue per Occupied Bed Day’ to $188 (1HFY15: $173). Along with a 2.7% increase in ‘Resident Revenue per Occupied Bed Day’ to $76 (1HFY15: $74). Furthermore, the acquisitions of additional places at Regis Tiwi in the Northern Territory, Regis Redlynch in Queensland, along with Regis Marleston in South Australia positively contributed to the growth in revenue.

Acquisitions and Development

Over the period, the group purchased sites for development in Newcastle, NSW and Camberwell, VIC.

Regis Ontario in Mildura, has been refurbished, resulting in 38 additional operational places being available during the reporting period. Moreover, the construction of 64 added operational places at Regis Caboolture in QLD is nearly complete, and expecting to receive their first residents before the end of FY16.

The planned closure of Regis Sunset, SA, which has 67 operational places, occurred during the period, with the site currently under re-development.

Dividend

The company has declared an interim fully franked dividend of 9.4cents per share. The dividend is payable on the 21st of March 2016.

Outlook

The aged healthcare providers expects 2HFY16 EBITDA and NPAT to be in line with the first half. Alongside Capex to be between $50-70million, due in part to the construction of the pipeline expansion development projects.

As at 12.05pm (AEDT), REG has fallen over 2.7%, to $5.27. 

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Ben Khouri Author: Ben Khouri Feb 26, 2016

Ben Khouri is a financial editor for Wise-Owl with a particular focus on the top ASX 300 companies. Having a vast background in economics and finance, Ben provides financial commentary & analysis as well as global market updates, which guide investors in devising investment strategies. Ben specialises in analysing economic data and global events from around the world and examines the impacts they have on the major equity markets.

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