Regis Healthcare Ltd. · ASX:REG
Regis Healthcare — H1 2017 Earnings Presentation
30 slides from Regis Healthcare's earnings presentation, Feb 24, 2017
Slide 1: Regis 1H FY17 results
For personal use only 24 February 2017 Regis East Malvern VIC
Slide 2: Contents
Regis •1• North Fremantle WA For personal use only CONTENTS 01 Business and financial highlights 1HFY17 •2• 02 Portfolio overview and growth strategy •9• 03 Summary and outlook • 18 • 04 Appendices • 21 • 24 FEBRUARY 2017
Slide 3: Business and financial highlights 1H FY17
Artists Impression •2• Regis Lutwyche QLD 01 For personal use only Business and financial highlights 1H FY17
Slide 4: Financial Highlights 1H FY17
•3• FINANCIAL HIGHLIGHTS 1H FY17 Continued growth, in line with expectations For personal use only Normalised Revenue of EBITDA of NPAT of Net operating cashflow4 $284.7m $61.8m $30.9m $85.9m 20% higher than 20% higher than 8% higher than 1HFY161 Normalised 1HFY161 Normalised 1HFY161 ◼ Revenue and E
Slide 5: Key Operational Statistics
•4• KEY OPERATIONAL STATISTICS Statistics reflect the continuing strong operational results For personal use only 1H FY16 2H FY16 FY162 1H FY17 KEY OPERATIONAL STATISTICS1 Normalised Normalised Normalised Reported Comment Total operational places 5,088 5,880 6,027 See portfolio overview p 10 for mov
Slide 6: Earnings Highlights
•5• EARNINGS HIGHLIGHTS Increased income the key contributor to EBITDA results For personal use only ◼ Improvement in 1H FY17 EBITDA performance compared to 1H FY16 ◼ New developments are performing in line with was driven principally by: expectations ● A further increase in the contribution from th
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 driven by 20% growth in EBITDA compared to prior comparable period. As per the Company’s previous FY17 outlook, this was partially offset by: ● Increased depreciation expens
Slide 8: Cashflow Highlights
•7• CASHFLOW HIGHLIGHTS Net RAD cashflow in line with expectations For personal use only ◼ Net RAD cashflow of $46.8m1 underpinned by: ◼ Key investment activities included: ● Incoming RADs from the new facilities in North Fremantle, WA and ● Total capex on development, significant refurbishment, lan
Slide 9: Resident Profile
•8• RESIDENT PROFILE Combination payments have increased in popularity For personal use only ◼ 47% of non supported residents1 chose to pay a full RAD in 1H PROFILE OF ACCOMMODATION PAYMENT TYPES FY17 FOR INCOMING RESIDENTS5 ◼ During this period there was a minor movement from full RADs 1H FY16 2H F
Slide 10: Portfolio Overview and Growth Strategy
•9• 02 For personal use only Portfolio Overview and Growth Strategy
Slide 11: Portfolio Overview
• 10 • PORTFOLIO OVERVIEW Regis continues to execute its growth strategy For personal use only Total Regis Rose Bay As at 31 December 2016 Total operational NSW places Number of Facilities 54 Total places1 7,619 6,027 Total operational places 6,027 54 facilities Total rooms 5,263 Total single bed ro
Slide 12: Consistent Growth Strategy
• 11 • 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 13: Strategy Focus
• 12 • 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 14: Expansion Pipeline – Greenfield Developments
• 13 • EXPANSION PIPELINE – GREENFIELD DEVELOPMENTS Status of current and planned developments 8 For personal use only Developments under construction Total Net Provisional Expected First new additional Club Land Development Allocations construction resident Milestone Development places places Servi
Slide 15: Expansion Pipeline – Greenfield Developments (continued)
• 14 • EXPANSION PIPELINE – GREENFIELD DEVELOPMENTS Status of current and planned developments (continued) For personal use only Total new places Total Net Provisional Expected First 1,404 new additional Club Land Development Allocations construction resident Development places places Services held
Slide 16: Retirement Living Overview - Background
• 15 • RETIREMENT LIVING OVERVIEW - BACKGROUND 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) in Melbourne and Perth since Regis 2007 Sandgate QLD ◼ The rec
Slide 17: Retirement Living Overview - Strategy
• 16 • RETIREMENT LIVING OVERVIEW - STRATEGY Owned and operated co-located Aged Care and Retirement Village and Aged Care facilities For personal use only STRATEGIC RATIONALE ◼ 3.2 million Australians are currently over 65. This is projected to be 8.1 million by 20501 ◼ By 2025 the demand for retire
Slide 18: Retirement Living – Existing Facilities
• 17 • RETIREMENT LIVING – EXISTING FACILITIES Regis has 550 existing Retirement Village units For personal use only Location Total Independent Co-located Burwood site area living units aged care East, VIC (sqm) (current) places draft of Masterplan (current) stage 1 Burwood East, VIC 85,000 269 310
Slide 19: Summary and Outlook
Artists Impression • 18 • Regis Lutwyche QLD 03 For personal use only Summary and Outlook
Slide 20: 1H FY17 Summary
• 19 • 1H FY17 SUMMARY Solid financial performance continued in 1H FY17 For personal use only 1H FY17 PERFORMANCE ◼ EBITDA of $61.8m and NPAT of $30.9m due to continued business growth and operational performance: ● Average revenue per resident per day was $281 in 1HFY17 compared to $274 in 2HFY16 ●
Slide 21: FY17 Outlook
• 20 • FY17 OUTLOOK Positive FY17 Outlook for EBITDA and NPAT For personal use only 2H FY17 OUTLOOK ◼ 2H FY17 EBITDA is anticipated to be in line with 1H FY17 ◼ The company reaffirms its previously stated position on the following items for FY17: ● debt will remain at approximately 2x EBITDA ● inter
Slide 22: Appendices
For personal use only Appendices • 21 • 04
Slide 23: Appendix A: Glossary
• 22 • APPENDIX A For personal use only Glossary Agrees to the Reported result as at and for the half year ended 31 December 2015. Normalisations include: 1H FY16 1. one off acquisition costs related to acquisition of the Regis Marleston Norm alised 2. gain/(loss) on disposal of property, plant and
Slide 24: Appendix B: Income Statement
• 23 • APPENDIX B For personal use only Income Variance 1H FY2016 1H FY2016 2H FY2016 FY2016 1H FY2017 Statement Normalised1 Normalised Normalised2 Reported 3 Normalised to 1H FY2017 ($ millions) Revenue Government revenue 164.6 170.8 335.4 199.9 21% Resident revenue 66.2 68.1 134.3 79.5 20% Other r
Slide 25: Appendix C: Cash Flow Statement
• 24 • APPENDIX C For personal use only Cash Flow 1H FY2016 FY2016 1H FY2017 Normalisation 2H FY2016 1H FY2017 Statement ($ millions) Normalised1 Normalised Normalised1 Reported 2 adjustment3 Normalised EBITDA Normalised 51.6 53.5 105.1 61.8 61.8 1 Less: Normalised adjustments (0.6) (11.5) (12.1) 0.
Slide 26: Appendix D: Balance Sheet
• 25 • APPENDIX D For personal use only Balance 31-Dec-2015 30-Jun-2016 31-Dec-2016 Normalisation 31-Dec-2016 (As at, $ millions) Sheet Reported Reported3 Reported adjustment1 Normalised Cash and cash equivalents 38.5 25.3 53.6 (32.4) 21.2 Trade and other receivables 5.6 6.8 6.3 6.3 Other current as
Slide 27: Appendix E: Reported to Normalised Reconciliation – Half Year
• 26 • APPENDIX E For personal use only Reported to Normalised Reconciliation – Half Year ended 31 December 2015 Half year ended 31 December 2015 ($ millions) Revenue EBITDA NPBT NPAT 1H FY2016 Reported results 236.6 51.0 40.4 28.3 Acquisition related expenses 0.0 0.3 0.3 0.2 Loss on disposal of pro
Slide 28: Appendix F: Reported to Normalised Reconciliation – Full Year
• 27 • APPENDIX F 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 FY 2016 Reported results 480.7 93.0 69.4 46.1 Acquisition related expenses (Regis Marleston and Masonic Care) 14.1 14.1
Slide 29: Appendix G: Greenfield developments generate positive cashflow returns
• 28 • APPENDIX G For personal use only Greenfield developments generate positive cashflow returns: Example for a 120 place Club Services Facility Positive 2-3 years - land acquisition, design, 18-24 months - ramp up construction and commissioning to mature occupancy 0 Time Mature facility – growth
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 24 February 2017. It is in summary form and does not purport to be complete. It presents financial information on both a statut