Regis Healthcare Ltd. · ASX:REG
Regis Healthcare — H1 2016 Earnings Presentation
29 slides from Regis Healthcare's earnings presentation, Feb 26, 2016
Slide 1: Half Year Results 1H FY16
For personal use only 26 February 2016
Slide 2: Contents
•1• For personal use only Contents 01 Business and financial highlights 1HFY16 •2• 02 Portfolio overview and growth strategy •9• 03 Summary and outlook • 16 • 04 Appendices • 19 • Half Year Results for the period ended 31 December 2015
Slide 3: Business and financial highlights 1H FY16
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Slide 4: Financial highlights 1H FY16
•3• Financial highlights 1H FY16 For personal use only Financial results have exceeded those for the prior corresponding period 1H FY16 highlights Revenue of EBITDA of NPAT of $236.6m $51.0m $28.3m 12% higher than 14% higher than 15% higher than Normalised 1HFY151 Normalised 1HFY151 Normalised 1HFY1
Slide 5: Business highlights – key operational statistics
•4• Business highlights – key operational statistics For personal use only Statistics for the half year reflect the strong operational result 1H 2015 1H 2015 2H 2015 2 FY 2015 1H 2016 3 4 4 Key operational statistics1 Pro forma Normalised Normalised Normalised Reported Comment (1H FY16 vs 1H FY15) M
Slide 6: Earnings highlights
•5• Earnings highlights For personal use only Increased income the key contributor to EBITDA results ◼ Improvement in 1H FY16 EBITDA performance was driven principally by revenue ◼ The 3 facilities acquired since 1 November 2014 are making per occupied bed day of $271 for 1H FY16 compared to $255 in
Slide 7: Earnings highlights – NPAT growth
•6• Earnings highlights For personal use only Solid NPAT growth underpinned by EBITDA growth ◼ Improvement in 1H FY16 NPAT performance driven by 14% growth in EBITDA compared to prior comparable period ◼ This was partially offset by increased depreciation expense, which will continue to increase in
Slide 8: Cashflow highlights
•7• Cashflow highlights For personal use only Net RAD inflows reflect the LLLB changes maturing ◼ Net RAD inflow of $25.1 million compared to $43.4 million in ◼ Key investment activities included: 1H FY15 • Expenditure of $19.3 million on land for development sites in • Reflects the tail end of the
Slide 9: Resident profile
•8• Resident profile For personal use only The majority of residents1 are continuing to choose to pay a RAD ◼ The majority of non supported residents1 still chose to pay Profile of accommodation payment types for incoming a full RAD in 1HFY16 residents4 ◼ There was a significant movement towards com
Slide 10: Portfolio overview and growth strategy
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Slide 11: Portfolio overview
• 10 • Portfolio overview For personal use only Regis continues to execute its growth strategy Total operational places Portfolio update and outlook ◼ Since the previous update1 the brownfield extension at Regis Ontario in Mildura has opened, delivering 38 new places 5,088 47 facilities ◼ During 2HF
Slide 12: Consistent growth strategy
• 11 • Consistent growth strategy For personal use only Taking advantage of industry growth and consolidation to leverage existing portfolio Growth strategy – four levers • Regis has acquired 3 facilities since November 2014, adding 444 places to the portfolio Acquisition of single • We continually
Slide 13: Growth strategy – development update
• 12 • Growth strategy For personal use only Taking advantage of industry growth and consolidation to leverage existing portfolio Development update ◼ The expansion of the development program continues and now includes: 1,273 new places in • 1,273 planned new places, a net increase of 3271 from the
Slide 14: Expansion pipeline – Greenfield Developments
• 13 • Expansion pipeline – Greenfield Developments For personal use only Status of current and planned developments with capex in 2016 and 2017 Total Net Provisional Expected First new additional Club Land Development Allocations construction resident Development places places Services held approva
Slide 15: Expansion pipeline – Greenfield Developments (continued)
• 14 • Expansion pipeline – Greenfield Developments For personal use only Status of current and planned developments with capex in 2016 and 2017 (continued) Total new places 1,273 Total Net Provisional Expected First new additional Club Land Development Allocations construction resident Development
Slide 16: Significant refurbishment update
• 15 • Significant refurbishment update For personal use only More than 1,000 Supported residents have an enhanced living environment Update 28 August 10 February As at 2015 2016 ◼ The new places opened at Regis Ontario, Mildura are Facilities approved as Significantly 14 18 now receiving the higher
Slide 17: For personal use only
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Slide 18: Summary and outlook
• 17 • Summary and outlook For personal use only Solid financial performance in 1H FY16 1H FY16 performance ◼ EBITDA of $51.0m and NPAT of $28.3m due to continued strong operational performance: • Average revenue per resident per day was $271 compared to $255 in 1H FY15 • Occupancy and labour costs
Slide 19: Summary and outlook – Positive FY16 outlook
• 18 • Summary and outlook For personal use only Positive FY16 Outlook 2H FY16 Outlook ◼ 2H FY16 EBITDA and NPAT are anticipated to be in line with 1H FY16 ◼ The expected results will be influenced by a range of factors, including: • Increased income from supported residents at Significantly Refurbi
Slide 20: For personal use only
For personal use only • 19 • 04
Slide 21: Appendix A – Glossary
• 20 • Appendix A For personal use only Glossary Agrees to or is derived from the 1H FY15 pro-forma results disclosed in the Half Year Results and Business Update presentation for the period ended 31 December 2014. Normalisations include: 1H FY15 1. adjustment to reflect the removal of the payroll t
Slide 22: Appendix B – Income Statement Variance
• 21 • Appendix B For personal use only Income Statement Variance 1H FY2015 2H FY2015 FY2015 1H FY2016 1H FY16 to ($ millions) Normalised1 Normalised2 Normalised2 Reported3 1H FY15 % Revenue Government revenue 142.9 148.7 291.6 164.6 15% Resident revenue 61.0 62.9 123.9 66.2 9% Other revenue 7.2 6.7
Slide 23: Appendix C – Cashflow Statement
• 22 • Appendix C For personal use only Cashflow Statement 1H FY15 2H FY15 FY FY15 Reported 1H FY16 ($ millions) Normalised1 Normalised1 Normalised1 1H FY16 Adjustment Normalised1 EBITDA 44.8 44.7 89.5 51.0 51.0 Change in net working capital (0.4) (2.4) (2.9) (3.1) (3.1) Government funding received
Slide 24: Appendix D – Balance Sheet
• 23 • Appendix D For personal use only Balance Sheet 31 December 2014 30 June 2015 31 December 2015 31 December 2015 31 December 2015 (As at, $ millions) Reported1 Reported1 Reported1 Adjustment2 Normalised1 Cash and cash equivalents 72.9 60.9 38.5 (26.6) 11.9 Trade and other receivables 3.6 20.9 5
Slide 25: Appendix E – Reported to Normalised Reconciliation, half year 2014
• 24 • Appendix E For personal use only Reported to Normalised Reconciliation – Half Year ended 31 December 2014 Financial half year ended 31 December 2014 ($ millions) Revenue EBITDA NPBT NPAT Net cash flow 1H2015 Reported1 results 220.5 48.7 25.2 15.1 32.5 Less: Other income / (expenses) (1.3) Les
Slide 26: Appendix F – Reported to Normalised Reconciliation, FY2015
• 25 • Appendix F For personal use only Reported to Normalised Reconciliation – Full Year Ended 30 June 2015 Financial year ended 30 June 2015 ($ millions) Revenue EBITDA NPBT NPAT Net cash flow FY 2015 Reported results 459.6 110.5 78.1 57.5 20.6 Less: Other income / (expenses) (4.3) Less: Interest
Slide 27: Appendix G – Increasing depreciation profile
• 26 • Appendix G For personal use only Development activities will result in an increasing depreciation profile ◼ Over time, depreciation will increase, due to capital expenditure on the Depreciation profile, new operational places expansion pipeline • $34.9 million of capital expenditure was spent
Slide 28: Appendix H – Cumulative cashflow profile example
• 27 • Appendix H For personal use only Cumulative cashflow profile example: Club Services Greenfield Development, 120 Places Positive 2-3 years - land acquisition, design, 18-24 months - ramp up construction and commissioning to mature occupancy 0 Time Mature facility – growth from increase Payback
Slide 29: Important Notice
• 28 • Important Notice For personal use only This presentation contains general information about the activities of Regis Healthcare Limited (Regis) which is current as at 26 February 2016. It is in summary form and does not purport to be complete. It presents financial information on both a statut