Regis Healthcare Ltd. · ASX:REG
Regis Healthcare — FY2017 Earnings Presentation
30 slides from Regis Healthcare's earnings presentation, Aug 25, 2017
Slide 1: Regis FY17 Results Presentation
For personal use only 25 August 2017 Regis Kingswood SA
Slide 2: Contents
Regis •1• Kingswood SA For personal use only CONTENTS 01 Business and financial highlights FY17 •2• 02 Portfolio overview and growth strategy •9• 03 Summary and outlook • 20 • 04 Appendices • 23 • 25 AUGUST 2017
Slide 3: Business and financial highlights FY17
Artists Impression •2• Regis Port Coogee WA 01 For personal use only Business and financial highlights FY17
Slide 4: Financial Highlights FY17
•3• FINANCIAL HIGHLIGHTS FY17 Continued growth, in line with expectations For personal use only Regis Revenue of EBITDA of NPAT of Hornsby NSW $565.5m $123.6m $61.1m 18% higher than 18% higher than 8% higher than FY161 Normalised FY161 Normalised FY161 ◼ Revenue and EBITDA increases resulting from ●
Slide 5: Key Operational Statistics
•4• KEY OPERATIONAL STATISTICS Statistics reflect the continuing strong operational results For personal use only FY162 1H FY17 2H FY17 FY17 KEY OPERATIONAL STATISTICS1 Normalised Reported Reported Reported Comment Total operational places 5,880 6,027 6,029 See portfolio overview p 11 for movements
Slide 6: Earnings Highlights
•5• EARNINGS HIGHLIGHTS Increased income the key contributor to EBITDA results For personal use only ◼ FY17 EBITDA compared to FY16 reflects: ◼ Earnings from new developments are in line with expectations ● A further increase in the contribution from the higher accommodation ◼ Average occupancy of 9
Slide 7: Earnings Highlights: Solid NPAT growth
•6• EARNINGS HIGHLIGHTS Solid NPAT growth underpinned by EBITDA growth For personal use only ◼ Improvement in NPAT performance of 8% was driven by 18% growth in EBITDA Regis compared to prior comparable period. As per the Company’s FY17 guidance. Kingswood SA This was partially offset by: ● Increase
Slide 8: Cashflow Highlights
•7• CASHFLOW HIGHLIGHTS Net RAD cashflow below expectations For personal use only ◼ Net RAD cashflow of $70.5m1 was below expectations, attributable to ◼ Key investment activities included total capex on development, a small number of facilities experiencing higher than projected significant refurbi
Slide 9: Resident Profile
•8• RESIDENT PROFILE No significant changes in preferences of incoming residents For personal use only ◼ As at 30 June 2017, 45.8% of the portfolio were paying a RAD PROFILE OF ACCOMMODATION PAYMENT TYPES (in part or in full), which was consistent with 31 December 2016, which was 45.5% FOR INCOMING
Slide 10: Portfolio Overview and Growth Strategy
•9• 02 For personal use only Portfolio Overview and Growth Strategy
Slide 11: Presbyterian Care Tasmania Acquisition
• 10 • PRESBYTERIAN CARE TASMANIA ACQUISITION The acquisition increased Regis’ operational places by 287 on 1 August For personal use only Operational Places RAD balance Investment 287 $19.1m $32.5m Expanding the portfolio Average RAD $302k On a net basis1 into Tasmania ◼ Transaction completed 1 Aug
Slide 12: Portfolio Overview
• 11 • PORTFOLIO OVERVIEW Regis continues to execute its growth strategy For personal use only Total As at 25 August 2017 Total operational places Number of Facilities 57 Total places1 Total operational places 8,323 6,316 6,316 57 facilities Total bedrooms 5,616 % operational places in single bedroo
Slide 13: Consistent Growth Strategy
• 12 • CONSISTENT GROWTH STRATEGY Taking advantage of industry growth and consolidation to leverage existing portfolio For personal use only GROWTH STRATEGY – FOUR LEVERS Acquisition of • Regis has acquired 3 single Facilities since November 2014, adding 444 places to the portfolio • We continually
Slide 14: Strategy Focus
• 13 • STRATEGY FOCUS Execution of growth strategy For personal use only THE COMPANY MAINTAINS ITS FOCUS ON THE EXECUTION OF ITS GROWTH STRATEGY THROUGH: ◼ Optimising the location of its new developments – continuing to focus principally on urban locations ◼ Ensuring efficient Facility size – the de
Slide 15: Growth Strategy: Expansion Pipeline
• 14 • GROWTH STRATEGY The expansion pipeline now includes 1,482 new places For personal use only The following changes have occurred to the expansion pipeline since the previous growth update: Total Net New New EXPANSION PIPELINE UPDATE Places Places Reported in 31 December Results Presentation1 1,
Slide 16: Expansion Pipeline – Greenfield Developments
• 15 • EXPANSION PIPELINE – GREENFIELD DEVELOPMENTS Status of current and planned developments For personal use only Total Net Provisional Expected First new additional Club Land Development Allocations construction resident Milestone Development places places Services held approval /Licences in han
Slide 17: Expansion Pipeline – Greenfield Developments (continued)
• 16 • EXPANSION PIPELINE – GREENFIELD DEVELOPMENTS Status of current and planned developments (continued) Total For personal use only new places Total Net new additional Club Land Development Provisional Allocations Expected First construction resident 1,482 Development places places Services held
Slide 18: Retirement Living Strategy - Update
• 17 • RETIREMENT LIVING STRATEGY - UPDATE Regis has owned and operated co-located Retirement Villages since 2007 For personal use only ◼ Regis has owned and operated co-located Retirement Villages (RV) and Aged Care Facilities (ACF) since 2007, one in Melbourne and one in Perth ◼ The acquisition of
Slide 19: Retirement Living Strategy Update
• 18 • RETIREMENT LIVING STRATEGY UPDATE Status of current and planned retirement living developments For personal use only Total Project Current Stage Planned Retirement Total site Existing Current Expected First No. Planning new RV Stage Living area co-located # construction resident Milestone upd
Slide 20: Debt
• 19 • DEBT Debt facilities refinanced and expanded to support growth For personal use only ◼ in order to continue to fund the growth of the business and deliver the Regis Woodlands growth strategy, the company has core debt and development debt Construction, WA SUMMARY – DEBT POSITION As at As at 3
Slide 21: Summary and Outlook
• 20 • 03 For personal use only Summary and Outlook Artists Impression Regis Woodlands WA
Slide 22: FY17 Summary
• 21 • FY17 SUMMARY Solid financial performance continued in FY17 For personal use only FY17 PERFORMANCE ◼ EBITDA of $123.6m and NPAT of $61.1m due to business growth and operational performance: ● Average revenue per resident per day was $281 in FY17 compared to $272 in FY16 ● Occupancy and labour
Slide 23: FY18 Outlook
• 22 • FY18 OUTLOOK FY18 EBITDA anticipated For personal use only FY18 OUTLOOK ◼ FY18 EBITDA is anticipated to be broadly in line with FY17 ◼ This excludes the one off impact of the Presbyterian Care transaction costs ◼ Having regard to FY18: ● Net interest and depreciation expenses are expected to
Slide 24: Appendices
For personal use only Appendices • 23 • 04
Slide 25: Appendix A: Glossary
• 24 • APPENDIX A For personal use only Glossary Reported Agrees to or is derived from the results contained in the statutory financial report. Agrees to or is derived from the revised results contained in the statutory financial report. FY16 Adjusted During the period, the Group changed its account
Slide 26: Appendix B: Income Statement
• 25 • APPENDIX B For personal use only Income Variance FY2017 FY2016 FY2016 Normalised Statement Reported Normalised¹ to FY2017 ($ millions) Revenue Government revenue 396.8 335.4 18% Resident revenue 158.1 134.4 18% Other revenue 10.7 10.9 (2%) Revenue 565.5 480.7 18% Less interest income² (0.6) (
Slide 27: Appendix C: Cash Flow Statement
• 26 • APPENDIX C For personal use only Cash Flow FY2017 FY2016 Statement ($ millions) Reported Normalised¹ EBITDA Normalised 123.6 105.1 1 Less: Normalised adjustments 0.0 (12.1) EBITDA Reported 123.6 93.0 Change in net working capital² 4.6 27.5 Non–cash items in EBITDA (10.2) (9.6) Net receipts fr
Slide 28: Appendix D: Balance Sheet
• 27 • APPENDIX D For personal use only Balance (As at, $ millions) 30-Jun-2017 30-Jun-2016 Reported Adjusted1 Sheet Cash and cash equivalents 21.5 25.3 Trade and other receivables 7.2 5.3 Other current assets 7.6 4.6 Total current assets 36.3 35.1 Property, plant and equipment 927.3 799.4 Investmen
Slide 29: Appendix E: Reported to Normalised Reconciliation
• 28 • APPENDIX E For personal use only Reported to Normalised Reconciliation – Full Year Ended 30 June 2016 Financial year ended 30 June 2016 ($ millions) Revenue EBITDA NPBT NPAT FY2016 Reported results (Adjusted) 1 480.7 93.0 70.1 46.5 Impact of the change in accounting policy 1 (0.7) (0.4) FY201
Slide 30: Important Notice
• 29 • IMPORTANT NOTICE For personal use only This presentation contains general information about the activities of Regis Healthcare Limited (Regis) which is current as at 25 August 2017. It is in summary form and does not purport to be complete. It presents financial information on both a statutor