Radius Residential Care Ltd · NZX:RAD
Radius Residential Care — FY2023 Earnings Presentation
31 slides from Radius Residential Care's earnings presentation, May 2023
Slide 1: Investor Presentation Full Year Result FY23
Investor Presentation F u l l Year R es u l t F Y 2 3
Slide 2: Presenting Today
Presenting Today Andrew Peskett Chief Executive Officer Wendy Jenkins Chief Financial Officer BA (Hons), LLB MCom, MBA, CA FY23 Investor Presentation 2
Slide 3: Agenda
Agenda OVERVIEW OF FY23 Demonstrating profitable growth PERFORMANCE ANALYSIS OF Continuation of a strong track record RESULT POSITIONING Strategy update RADIUS CARE APPENDICES Key operational and financial metrics Summary Profit and Loss, Balance Sheet and Cash Flow FY23 Investor Presentation 3
Slide 4: Overview of FY23 Performance
Overview of FY23 Performance D E M O N S T R AT I N G P R O F I TA B L E GROWTH Radius Potter Home
Slide 5: FY23 Business Highlights and Key Events
FY23 Business Highlights and Key Events Profitable Growth Strategic Acquisitions 10% increase in revenue and 32% Acquisition of Matamata Country Lodge, an increase in underlying EBITDA. integrated care home and retirement village with 81 care beds and 46 ORA units with a strong first six months of p
Slide 6: FY23 Financial Highlights
FY23 Financial Highlights Financial Performance Balance Sheet Position • Reported Net Loss After Tax of ($2.1m) down from a • Total assets of $356.6m. profit of $2.7m due to property revaluations and • Investment properties of $70.1m, up $24.1m higher interest costs. from FY22. • Underlying EBITDA u
Slide 7: Our People
Our People Successfully recruited over 140 international nurses via direct channels filling vacancies in the portfolio from domestic nursing shortages. The success of the international nurse recruitment program has led Radius Care to set up a subsidiary to provide bureau nursing services, both inter
Slide 8: Analysis of Result
Analysis of Result CONTINUATION OF STRONG TRACK RECORD Radius St Helenas FY23 Investor Presentation 8
Slide 9: Financial Performance Overview
Financial Performance Total Revenue1 Underlying EBITDA FY23 Revenue of $146.3m up 10% vs pcp Underlying EBITDA of $14.2m, up 32% vs pcp Overview 160.0 16.0 Our strong operational 140.0 performance drove 14.0 improvements in 120.0 financial performance 12.0 despite challenging $m $m 100.0 market cond
Slide 10: Occupancy
Occupancy Strong occupancy of 93.3% at 31 March 2023 remaining well above industry averages. 95 93.7% 94 93.4% 93.3% 93.1% 92.7% 93 92.0% 92.3% 92.0% 91.9% 91.6% 91.7% 92 91.4% 91.0% 91 90.4% Occupancy rate % 90.1% 90 89.6% 89 88.0% 87.8% 88 87.2% 87.2% 87.1% 87.2% 87.3% 86.8% 87 86.5% 86.1% 86.2% 8
Slide 11: Bed Mix
Bed Mix ~87% of Radius Care Beds are certified for high acuity 87% of the portfolio are beds Care Bed Type FY23 13.3% 69.7% 11.0% 5.1% 0.8% certified for high acuity and specialist care with significant flexibility of care. ~58% high acuity and specialist This aligns with the sector dynamics Industr
Slide 12: Continued Strong Underlying EBITDAR per Care Bed
Continued Strong Underlying EBITDAR per Care Bed Underlying EBITDAR per care bed1 ($000) 21.0 20.0 19.0 18.0 19.5 19.9 19.9 17.0 16.0 15.0 FY21 FY22 FY23 Market leading returns relative to key listed peers and industry averages. FY23 Investor Presentation 12 1 Underlying EBITDAR for aged care segmen
Slide 13: AFFO and Dividends
AFFO and Dividends 5.0 Adjusted Funds From Operations ($m) Dividends FY23 Total Dividends AFFO of $4.0m, down from $4.2m in the Radius Care paid a gross interim dividend 4.0 comparative period due of 0.7c per share totalling $1.4m. Radius to higher interest costs. Care will not pay a final dividend
Slide 14: Strategy Update
Strategy Update FY23 Investor Presentation 14 Radius Glaisdale
Slide 15: Strategy Update
Strategy Update Since listing Radius has demonstrated successful execution against its core strategic pillars Acquisition of Greater control over strategic Acquired four Ohaupo Properties (settled 5 August 2021). strategically important sites, allowing value facilities operated by enhancing initiati
Slide 16: Matamata Country Lodge
Transforming a recent acquisition Matamata Country Lodge Radius Care has a strong track record of undertaking opportunistic value accretive acquisitions. The acquisition of Matamata Country Lodge has provided an opportunity to realise cost efficiencies in the Care Facility, such as the reduction in
Slide 17: Development Completed: Thornleigh Park
Development Completed Thornleigh Park 24 care beds Opened and being occupied in FY24 FY23 Investor Presentation 17
Slide 18: Future Portfolio Developments
Future Portfolio Developments Current portfolio Future portfolio1 RV units RV units Care suites ~2,035 ~2,425 units / beds units / beds Care beds Care beds FY23 Investor Presentation 18 1 Indicative only and assuming all planned developments (including those currently still in the concept stage) are
Slide 19: FY24 Outlook
FY24 Outlook Improved operating performance focused on continuing to drive market leading returns. Execution of a comprehensive business improvement program including streamlining operations. Timing of selective developments to be assessed based on market conditions. Establish sustainability program
Slide 20: Appendices
Appendices FY23 Investor Presentation 20 Radius Arran Court
Slide 21: Key Investment Highlights
AP P E N D I X 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. Demand underpinned by population demographics1 1 S
Slide 22: At a Glance
AP P E N D I X 2 National aged care focused portfolio with strong regional presence, owing At a Glance 13 and leasing 11 of the 24 sites nationwide 1,880+ 1,750+ Beds Employees 92.7% 7.3% Care Beds ILUs ILUs are Independent Living Units
Slide 23: Key operational and financial metrics
AP P E N D I X 3 Key operational and financial metrics Operating Metrics DMF terms for Retirement Village units FY23 FY22 FY21 FY20 • 30% over three years Number of Care Beds (period end)1 1,889 1,784 1,715 1,704 • average resident tenure during FY23 is 4.2 years Average Care Bed Occupancy2 91.8% 92
Slide 24: Financials: Statement of Comprehensive Income
AP P E N D I X 4 Financials ($000) Revenue FY23 FY22 FY21 Revenue from contracts with customers 144,467 132,052 121,217 Statement of Deferred management fees 1,801 1,328 1,081 Comprehensive Income Total revenue 146,268 133,380 122,298 Change in fair value of investment property 765 1,088 2,879 • Und
Slide 25: Financials: Statement of Financial Position
AP P E N D I X 5 Financials ($000) Assets FY23 FY22 FY21 Cash and cash equivalents 515 2,088 2,761 Statement of Trade and other receivables 13,071 9,882 7,181 Financial Position Held for sale assets 891 - - Inventories 753 768 548 • Investment properties of $70.1m, Current tax asset 1,321 - - up $24
Slide 26: Financials: Statement of Cash Flows
AP P E N D I X 6 ($000) FY23 FY22 FY21 Financials Cash flows from operating activities Receipts from residents for care fees and village fees 140,699 129,796 122,337 Receipts of Government subsidy 1,269 - 1,210 Statement of Cash Flows Payments to suppliers and employees (124,697) (111,696) (101,161)
Slide 27: Financials: AFFO Calculation
AP P E N D I X 7 Financials ($000) FY23 FY22 FY21 Underlying Earnings and Net Profit Before Tax (2,984) 3,081 2,029 AFFO Calculation Remove: Change in fair value of investment property (765) (1,088) (2,879) Remove: Gain on acquisition of previously leased properties (1,781) (1,403) - Remove: Gain on
Slide 28: Directory of facilities (leased)
AP P E N D I X 8 Directory LEASED of facilities CURRENT LEASE TIME TO NEXT TIME TO FINAL FACILITY LOCATION CARE BEDS UNITS RIGHTS OF RENEWAL LANDLORD TERM RENEWAL EXPIRY Kensington Hamilton 96 - 10 yrs 1.1 yrs 2 x 10 yrs 11.1 yrs A Potter Home Whangarei 55 - 20 yrs 6.6 yrs 2x 15 yrs 36.6 yrs B Rimu
Slide 29: Directory of facilities (owned)
AP P E N D I X 9 Directory OWNED TOTAL of facilities FACILITY LOCATION CARE BEDS UNITS FACILITY CARE BEDS UNITS 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 W
Slide 30: 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 this and Disclaimer document and the verbal or written comments of any person presenting it. This presentation sets out information relating
Slide 31: Thank You
Thank You FY23 Investor Presentation 31
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