Regis Healthcare Ltd. · ASX:REG
Regis Healthcare — FY2018 Earnings Presentation
33 slides from Regis Healthcare's earnings presentation, Aug 31, 2018
Slide 1: Regis Healthcare FY18 Results Presentation
Regis Chelmer Qld For personal use only 31 August 2018
Slide 2: Contents
Regis •1• Chelmer Qld For personal use only CONTENTS 01 Business and financial highlights FY18 •3• 02 Portfolio overview and growth strategy • 10 • 03 Summary and outlook • 20 • 04 Appendices • 23 • 05 Supporting Information • 29 • 31 AUGUST 2018
Slide 3: Resident care and services
•2• RESIDENT CARE AND SERVICES Regis Healthcare is one of Australia’s leading aged care providers For personal use only and delivers quality care including innovative ageing in place, residential, respite and dementia care to help residents live well.
Slide 4: Business and financial highlights FY18
•3• 01 For personal use only Business and financial highlights FY18 Regis Woodlands WA
Slide 5: Financial highlights FY18
•4• FINANCIAL HIGHLIGHTS FY18 Positive contribution from business growth, offset by Federal Government funding cuts For personal use only Revenue of Normalised EBITDA1 of Normalised NPAT1 of Net operating $594.4m $117.1m $56.9m cashflow 5% higher than FY17 5% lower than FY17 In line with guidance $1
Slide 6: Key operational statistics
•5• KEY OPERATIONAL STATISTICS Operations performed well in the face of industry headwinds For personal use only FY17 1H FY18 2HFY18 FY18 KEY OPERATIONAL STATISTICS1 Reported Normalised Normalised Normalised2 2H FY18 increase reflects the delivery of the new Burnside, SA, Total operational places 6,
Slide 7: Earnings
•6• EARNINGS As anticipated, EBITDA1 results affected by Government cuts to residential aged care funding For personal use only FY18 EBITDA1 was 5% lower than FY17. This reflects a ● The impact of industry wide lower occupancy in the 1H, as a result of combination of growth and cost management ini
Slide 8: Profit
•7• PROFIT Normalised NPAT in line with guidance For personal use only Normalised NPAT was in line with guidance provided with the 1H results, Regis with lower than anticipated interest and depreciation offsetting the reduction Chelmer in EBITDA in the 2H Qld Depreciation reduced in FY18 when co
Slide 9: Cashflow
•8• CASHFLOW Debt and net operating cashflow funded capex on greenfield developments For personal use only Net operating cashflow of $133.8m underpinned by: Key investment activities included total capex on development, significant refurbishment, land and other ● EBITDA of $117.1m projects of $2
Slide 10: Resident profile
•9• RESIDENT PROFILE Profile of RAD / DAP mix and combination payments is consistent with prior periods For personal use only As at 30 June 2018, 45.9% of the portfolio were paying a RAD PROFILE OF ACCOMMODATION PAYMENT TYPES (in part or in full), which was consistent with 30 June 2017, which FOR
Slide 11: Portfolio Overview and Growth Strategy
• 10 • 02 For personal use only Portfolio Overview and Growth Strategy Regis Nedlands WA
Slide 12: Portfolio overview
• 11 • PORTFOLIO OVERVIEW One of the largest providers of Residential Aged Care in Australia For personal use only As at 30 June 2018 Total Total Number of Facilities 60 operational places Total places 8,323 Total operational places 6,753 6,753 Total bedrooms 6,043 60 Facilities % operational places
Slide 13: Aged care facilities
• 12 • AGED CARE FACILITIES Regis’ aged care portfolio is one of the most significant and diversified in Australia For personal use only OPERATIONAL PLACES Gatton, QLD ASSET VALUE $m BY REGION1 Port Macquarie, NSW Port Stephens, NSW Mildura, VIC As at 30 June 2014 $579 8% Bunbury, WA New land and bu
Slide 14: Our people
• 13 • OUR PEOPLE The development of our people is critical with a workforce now exceeding 7,000 For personal use only A year on year improvement in Regis’ Employee Engagement results measured via extensive staff surveys demonstrated both high and improving levels of commitment in FY18 Cutting e
Slide 15: Portfolio overview – developments
• 14 • PORTFOLIO OVERVIEW – DEVELOPMENTS The current program will have delivered 1,247 new places by the end of 1H FY19 For personal use only 1,200 139 Facilities delivered 120 1,000 Port Coogee, Nedlands, WA 130 WA 800 Elermore Vale, Woodlands, WA 141 NSW Lutwyche, QLD New places Burnside, SA 123 6
Slide 16: Expansion pipeline – greenfield developments
• 15 • EXPANSION PIPELINE – GREENFIELD DEVELOPMENTS Status of developments to open 1H FY19 For personal use only Total Net Provisional First new additional Club Land Development Allocations Construction resident Milestone Development places places Services held approval /Licences in hand Status expe
Slide 17: Growth strategy – aged care development program
• 16 • GROWTH STRATEGY – AGED CARE DEVELOPMENT PROGRAM Total new places Status of planned developments – greenfield developments and extensions For personal use only 655 Total Net Provisional Expected First new additional Club Land Development Allocations construction resident Development places pla
Slide 18: Portfolio overview - acquisitions
• 17 • PORTFOLIO OVERVIEW - ACQUISITIONS Acquisitions will continue to form a key part of Regis’ growth strategy For personal use only Five acquisitions have completed since listing 1,500 Presbyterian Care 1,200 Tasmania, 3 Facilities Integration program Operational Places complete 900 Masonic Care,
Slide 19: Growth strategy - retirement living developments
• 18 • GROWTH STRATEGY - RETIREMENT LIVING DEVELOPMENTS Regis has commenced the first of its Retirement Living Developments For personal use only Regis has 588 Independent Living Units across 6 Retirement Villages (RVs), each of which is co-located with Aged Care Facilities (ACFs) Experience sho
Slide 20: Debt
• 19 • DEBT As anticipated, debt increased in the 2H driven by the completion of developments For personal use only Debt increase in the 2H driven by the completion of three Facilities that were in the development pipeline in 2H FY18. As at 30 June there were a further three Facilities still under
Slide 21: Summary and Outlook
• 20 • 03 For personal use only Summary and Outlook Regis Nedlands WA
Slide 22: FY18 summary
• 21 • FY18 SUMMARY Financial performance in FY18 reflects development activities and Government funding cuts For personal use only FY18 PERFORMANCE Notwithstanding the industry wide residential aged care Federal Government funding cuts and indexation freeze, revenue per occupied bed day of $283 w
Slide 23: Outlook
• 22 • OUTLOOK FY19 EBITDA is anticipated to be broadly in line with normalised FY18 For personal use only FY19 EBITDA is anticipated to be broadly in line with normalised FY18. This includes: ● Increased contribution from new Facilities still ramping up of circa $5.5m, which is net of the operati
Slide 24: Appendices
For personal use only Appendices • 23 • 04
Slide 25: Appendix A - Glossary
• 24 • APPENDIX A - GLOSSARY For personal use only Glossary Reported Agrees to or is derived from the results contained in Regis’ annual or half year statutory financial reports. Normalised results are categorised as non-IFRS financial information prepared in accordance w ith ASIC Regulatory Guide 2
Slide 26: Appendix B - Financials: Income statement
• 25 • APPENDIX B - FINANCIALS For personal use only Variance Income FY2017 FY2018 FY2017 Reported ($ millions) Statement Normalised1 Reported to FY2018 Normalised Revenue Government revenue 416.3 396.8 5% Resident revenue 168.8 158.1 7% Other revenue 9.2 10.7 (14%) Revenue 594.4 565.5 5% Other Inco
Slide 27: Appendix B - Financials: Cash flow statement
• 26 • APPENDIX B - FINANCIALS For personal use only Cash Flow FY2018 FY2017 Statement ($ millions) Reported Reported EBITDA Normalised1 117.1 123.6 Less: Normalisations (3.9) 0.0 EBITDA Reported 113.2 123.6 Change in net working capital 1.4 0.8 Non–cash items in EBITDA (2.7) (6.4) Net receipts from
Slide 28: Appendix B - Financials: Balance sheet
• 27 • APPENDIX B - FINANCIALS For personal use only Balance (As at, $ millions) 30-Jun-2018 30-Jun-2017 Reported Reported Sheet Cash and cash equivalents 7.8 21.5 Trade and other receivables 6.9 7.2 Income tax receivable 4.6 0.0 Other current assets 4.8 7.6 Total current assets 24.1 36.3 Property,
Slide 29: Reported to normalised reconciliation
• 28 • APPENDIX B - FINANCIALS For personal use only Reported to Normalised Reconciliation – Full Year Ended 30 June 2018 Year ended 30 June 2018 ($ millions) Revenue EBITDA NPBT NPAT FY2018 Reported results 594.4 113.2 76.8 53.9 Acquisition related expenses (Pres Care) 3.9 3.9 3.0 FY2018 Normalised
Slide 30: Supporting Information – Retirement Villages
• 29 • 05 For personal use only Supporting Information – Retirement Villages
Slide 31: Retirement Living Profile: Blackburn South, VIC
Profile • 30 • Suburb Blackburn South Total site area (sqm) 85,000 Distance from CBD 17km Retirement For personal use only Median House Price $1 m Current aged care places 315 Living Profile: Current RV units 269 Blackburn South, Proposed RV units 350-450 VIC Planning approval Expected constructio
Slide 32: Retirement Living Profile: Nedlands, WA
Profile • 31 • Suburb Nedlands Total site area (sqm) 74,000 Distance from CBD 7km Retirement For personal use only Median House Price >$1.5m Living Profile: Current aged care places 274 “The Current RV units 81 Residences”, Proposed RV units 320 Nedlands, WA Planning approval Lodged “The Residence
Slide 33: Important notice
• 32 • IMPORTANT NOTICE For personal use only This presentation contains general information about the activities of Regis Healthcare Limited (Regis) which is current as at 31 August 2018. It is in summary form and does not purport to be complete. It presents financial information on both a statutor