Radius Residential Care Ltd · NZX:RAD
Radius Residential Care — H1 FY2024 Earnings Presentation
29 slides from Radius Residential Care's earnings presentation, 2023
Slide 1: Half Year Result
Half Year Result F O R 6 M O N T H S T O 3 0 SE P T EM BE R 20 2 3
Slide 2: Presenting Today
Presenting Today Andrew Peskett Chief Executive Officer Jeremy Edmonds Chief Financial Officer BA (Hons), LLB BA, BCom, CA 1HY24 Investor Presentation 2
Slide 3: Agenda
Agenda OVERVIEW OF 1HY24 Delivered strong operating PERFORMANCE performance and profitability ANALYSIS OF Strong performance RESULT demonstrating our leadership in specialist care offerings POSITIONING Strategy update RADIUS CARE APPENDICES Key operational and financial metrics Summary Profit and Lo
Slide 4: Overview of 1HY24 Performance
Overview of 1HY24 Performance DELIVERED STRONG OPERATING PERFORMANCE AND PROFITABILITY Radius Taupaki Gables
Slide 5: 1HY24 Business Highlights
1HY24 Business Highlights Record first half Strong Operating Performance Fully Staffed • Record first half trading with 50% Successful recruitment of overseas nurses and increase in Underlying EBITDA1. establishment of RConnect staffing bureau Achieved upper end of guidance business resulting in mor
Slide 6: 1HY24 Financial Highlights
1HY24 Financial Highlights Financial Performance Balance Sheet Position • Underlying EBITDA up 50% to $10.5m with no • Total assets of $355.0m. underlying adjustments made for the 1HY24 • Investment properties of $71.5m, up $1.3m period as opposed to $1.5m of adjustments in the from FY23. prior comp
Slide 7: Our People
Our People Successfully recruited Registered Nurse vacancies. We have surplus nurses who are supporting RConnect staffing bureau for internal and external customers. 28% year on year reduction in Registered Nurse turnover. Registered Nurse turnover significantly below sector average. Development/tra
Slide 8: Analysis of Result
Analysis of Result STRONG PERFORMANCE DEMONSTRATING OUR LEADERSHIP IN SPECIALIST CARE OFFERINGS Radius St Helenas 1HY24 Investor Presentation 8 Radius Taupaki Gables
Slide 9: Financial Performance Overview
Financial Performance Total Revenue 1 1HY24 Revenue of $84.5m up 21% vs pcp Underlying EBITDA Underlying EBITDA of $10.5m, up 50% vs pcp Overview 90.0 12.0 Continued strong 80.0 occupancy and successful execution of 70.0 10.0 business improvement programme have 60.0 $m $m 8.0 materially lifted Under
Slide 10: Occupancy
Occupancy Consistent occupancy of 93.0% at 30 September 2023 remaining well above industry average 95 93.7% 94 93.4% 93.1% 93.3% 93.0% 92.7% 93 92.0% 92.3% 92.0% 91.9% 91.7% 92 91.4% 90.9% Occupancy rate % 91 90 89 88.0% 87.8% 88 87.2% 87.3% 87 86.6% 86.1% 86.2% 86.1% 86.1% 85.8% 86 85.4% 85.2% 85 8
Slide 11: Hospital Bed Mix
Hospital Bed Mix Strong Hospital bed mix versus prior years enabled by fully staffed care homes 950 900 850 Occupied Beds 800 750 700 April May June July August September October November December January February March FY22 FY23 FY24 1HY24 Investor Presentation 11
Slide 12: Continued Strong Accommodation Supplements and Underlying EBITDAR per Care Bed
Continued Strong Accommodation Supplements and Underlying EBITDAR per Care Bed Underlying EBITDAR per Care Bed 1 Accommodation Supplements (for the 6 months to 30th September 2023) Market leading returns 6.0 13.0 5.0 12.0 4.0 $000 $m 11.0 3.0 4.8 10.0 12.2 2.0 3.7 3.1 10.6 10.3 9.0 1.0 0.0 8.0 1HY22
Slide 13: AFFO
AFFO Available Funds From Operations ($m) AFFO of $2.9m, up on the $2.5m earned in the comparative 4.0 period. 3.0 2.0 $m 2.9 2.5 2.3 1.0 0.0 1HY22 1HY23 1HY24 1HY24 Investor Presentation 13
Slide 14: Strategy Update
Strategy Update 1HY24 Investor Presentation 14 Radius Taupaki Gables
Slide 15: Strategy Update
Strategy Update Core Strategic Pillars Acquisition of strategically Opportunistic value Brownfield Greenfield important facilities accretive acquisitions developments developments operated by Radius Care • Since listing Radius Care has • Revenue diversification – • Continue to pursue several demonst
Slide 16: Outlook
Outlook Improved operating results and momentum in first half results to continue for the remainder of the financial year. Focus on commercial opportunities to continue to drive revenue growth and improved margins through increased premium revenue and new business. The Board expects to resume divide
Slide 17: Appendices
Appendices 1HY24 Investor Presentation 17 Radius Taupaki Gables
Slide 18: Key Investment Highlights
APPENDIX 1 Key Investment Highlights The Radius Care growth pipeline provides unique exposure to a high acuity, specialised care provider that remains committed to and focused on delivering compassionate and outstanding clinical care outcomes. With an absolute focus on our core business, Radius Care
Slide 19: At a Glance
APPENDIX 2 National aged care focused portfolio with strong regional presence, At a Glance owing 13 and leasing 11 of the 24 sites nationwide 1,889 1,860+ Care Beds Employees 92.7% 7.3% Care Beds ILUs 1HY24 Investor Presentation 19 ILUs are Independent Living Units
Slide 20: Key operational and financial metrics
APPENDIX 3 Key operational and financial metrics Operating Metrics Accommodation Supplements 1HY24 1HY23 1HY22 1HY21 1HY24 1HY23 1HY22 1HY21 Number of Care Beds (period end)1 1,889 1,865 1,715 1,714 Accommodation Supplements Revenue $4.8m $3.7m $3.1m $2.7m Average Care Bed Occupancy2 91.9% 91.5% 93.
Slide 21: Financials: Statement of Comprehensive Income
APPENDIX 4 ($000) 1HY24 1HY23 1HY22 Financials Revenue Revenue 83,308 69,101 64,458 Deferred management fees 1,162 768 449 Statement of Total revenue 84,470 69,869 64,907 Comprehensive Income Change in fair value of investment property 1,350 175 (65) Government subsidy received - 154 - • Revenue up
Slide 22: Financials: Statement of Financial Position
APPENDIX 5 ($000) 1HY24 FY23 FY22 Financials Assets Cash and cash equivalents 908 515 2,088 Trade and other receivables 13,770 13,071 9,842 Held for sale assets 25,704 891 - Statement of Inventories 708 753 768 Financial Position Current tax assets - 1,321 - Investment properties 71,473 70,143 46,01
Slide 23: Financials: Statement of Cash Flows
APPENDIX 6 ($000) 1HY24 1HY23 1HY22 Cash flows from operating activities Financials Receipts from residents for care fees and village fees Payments to suppliers and employees 84,075 (76,479) 65,856 (60,039) 62,670 (54,899) Proceeds from the sale of Refundable Occupation Right Agreements 6,204 1,335
Slide 24: Financials: AFFO Calculation
APPENDIX 7 Financials ($000) 1HY24 1HY23 1HY22 Underlying Earnings and Net Profit Before Tax 1,641 2,188 1,662 AFFO Calculation Remove: Change in fair value of investment property (1,350) (175) 65 Remove: Gain on acquisition of previously leased properties - (2,708) (1,403) Include: Realised gains o
Slide 25: Directory of facilities: Owned
APPENDIX 8 Directory OWNED CARE TOTAL of facilities FACILITY LOCATION UNITS FACILITY CARE BEDS UNITS BEDS St Helenas Christchurch 52 - Leased 921 - Thornleigh Park New Plymouth 87 - Owned 968 148 Lexham Park Katikati 63 - Heatherlea New Plymouth 55 - Taupaki Gables Kumeu 60 - TOTAL 1,889 148 Windsor
Slide 26: Directory of facilities: Leased
APPENDIX 8 Directory LEASED of facilities CURRENT LEASE TIME TO NEXT RIGHTS OF TIME TO FINAL FACILITY LOCATION CARE BEDS UNITS LANDLORD TERM RENEWAL RENEWAL EXPIRY Kensington Hamilton 96 - 10 yrs 0.6 yrs 2 x 10 yrs 10.6 yrs A Potter Home Whangarei 55 - 20 yrs 6.1 yrs 2 x 15 yrs 36.1 yrs B Rimu Park
Slide 27: Bed Mix
APPENDIX 9 Bed Mix ~87% of Radius Care Beds are certified for high acuity 1HY23 13.5% 44.9% 23.3% 12.3% 5.2% 0.8% 87% of the Care Bed ~87% of Radius Care Beds are certified for high acuity portfolio are beds Type certified for high acuity and 1HY24 13.4% 46.7% 23.0% 11.0% 5.1% 0.8% specialist care w
Slide 28: Important Notice and Disclaimer
Important Notice This presentation has been prepared by Radius Residential Care Limited (“Radius Care”), for informational purposes. This disclaimer applies to and Disclaimer this document and the verbal or written comments of any person presenting it. This presentation sets out information relating
Slide 29: Thank You
Thank You 1HY24 Investor Presentation 29
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