Radius Residential Care Ltd · NZX:RAD
Radius Residential Care — FY2021 Earnings Presentation
34 slides from Radius Residential Care's earnings presentation, Mar 31, 2021
Slide 1: Full Year Results 31 March 2021
Radius Residential Care Limited Full Year Results 31 March 2021
Slide 2: Importance Notice and Disclaimer
Radius Care Importance This presentation has been prepared by Radius Residential Care Limited (“Radius Care”), for informational purposes. This disclaimer Notice and applies to this document and the verbal or written comments of any person presenting it. This presentation sets out information relati
Slide 3: Radius Care
3 Radius Care
Slide 4: Presenting Today
Radius Care Presenting Today Brien Cree Stuart Bilbrough Michelle Slabber Executive Chairman / Managing Director Chief Executive Officer General Manager, Finance • Founded Radius Care in 2003, then part of • Appointed Chief Executive Officer in • Joined Radius Care in 2016 Radius Health Group June 2
Slide 5: Radius Care at a Glance
Radius Care Radius Care Portfolio summary as at 31 March 2021 at a Glance Radius Care Owned Leased from 3rd Total Parties* HIGH ACUITY AND Existing Portfolio SPECIALIST AGED Sites 5 19 24 CARE PROVIDER Aged Care Beds 178 1,537 1,715 Retirement Village Units1 76 - 76 Total Places 254 1,537 1,791 Radi
Slide 6: Radius Care at a Glance
Radius Care Radius Care National aged care focused portfolio with strong regional presence at a Glance Sites AUCKLAND Beds ILUs Total Sites NORTHLAND Beds ILUs Total Leased 3 155 - 155 Leased 3 248 - 248 Residents and Employees WAIKATO BAY OF PLENTY Sites Beds ILUs Total Sites Beds ILUs Total Leased
Slide 7: Agenda
Radius Care Agenda 1 2 3 4 Overview Analysis of result Positioning Radius Care Appendix of FY21 financial Continuation of strong track for Growth phase, — Key operational and performance record strategy update and financial metrics First year as a listed FY22 guidance — Summary P&L, Balance Sheet, C
Slide 8: Overview of FY21 Financial Performance
Radius Care Overview of FY21 Financial Performance FIRST YEAR AS A LISTED COMPANY 8
Slide 9: FY21 Highlights and Key Events
Radius Care FY21 Highlights Financial Performance and Key Events - - Record result - all guidance metrics met or exceeded Underlying EBITDA up 28% to $23.4m (vs. guidance of $23.0m to $23.8m) FY21 Guidance provided at - Underlying EBITDA per bed up 13% to $19.5k the time of listing met or - Continue
Slide 10: FY21 Highlights and Key Events
Radius Care FY21 highlights Enhanced management and governance for listing COVID-19 resilience and key events - Brien Cree transitioned in - Processes and procedures introduced in mid-2000s for Executive Chairman role focused Bird Flu performed well on growth opportunities through through COVID-19 p
Slide 11: Financial performance overview
Financial performance overview Radius Care FY21 Underlying EBITDA and Pre-NZ IFRS 16 Underlying EBITDA within Guidance range provided at time of listing Total Revenue Underlying EBITDA Pre-NZ IFRS 16 Underlying EBITDA - FY21 Revenue of $126m up 11% - FY21 Underlying EBITDA of $23.4m up - FY21 Pre-NZ
Slide 12: Cash Flow and Dividends
Radius Care Cash Flow and Dividends Achieved AFFO in excess of FY21 Guidance AFFO Dividends - FY21 AFFO of $3.7m FY21 Final Dividend - Outperformance partly due to lower maintenance capex - Gross fully imputed FY21 final dividend declared of FY21 Guidance exceeded 0.89 cents per share (which inclu
Slide 13: Summary of Key Drivers of FY21 Financial Performance
Radius Care Summary of Key Drivers of FY21 Financial Performance Strong growth in Underlying EBITDA driven primary by (1) improving care occupancy (2) increasing accommodation supplements (3) cost control containment and (4) contributions from new developments 25.0 Aged Care: $4.3m - Bureau: $1.6 mi
Slide 14: Analysis of result
Radius Care Analysis of result CONTINUATION OF STRONG TRACK RECORD 14
Slide 15: Revenue Growth and Diversification
Radius Care Revenue Growth and Diversification Strong revenue growth continues with an increasing proportion from direct private (non-Government) revenue streams Total revenue Direct private (non-Government) revenue 1 140.0 15.0 12.5% 126.0 11.0% 120.0 113.7 12.5 110.1 10.0% 100.2 Proportion of tota
Slide 16: Bed Mix Oriented to High Acuity and Specialist Care
Bed Mix Oriented to High Acuity and Specialist Care Radius Care Over FY21, beds certified for high acuity and specialist care have increased from 82% to 86% of the portfolio. Radius Care continues to provide more care offerings and in particular more specialist care offerings per facility than peers
Slide 17: Strong Occupancy Growth
Strong Occupancy Growth Radius Care Occupancy growth underpinned by supportive industry backdrop of (1) aging population (2) increasing bed demand particularly for high acuity and specialist care and (3) rising years in spent in dependency 1. Aging New Zealand population1 Growing Occupancy v.s. indu
Slide 18: Growing Underlying EBITDA per Care Bed
Growing Underlying EBITDA per Care Bed Radius Care Strong Occupancy (see previous page) Increasing Underlying EBITDA per care bed1 Underlying EBITDA per Care Bed ($000) Growing accommodation supplements 19.5 20.0 18.3 17.9 6.0 $3,300 3,500 17.2 Accommodation supplement per $2,902 Accommodation suppl
Slide 19: Positioning Radius Care for Growth Phase, Strategy Update and FY22 Guidance
Radius Care Positioning Radius Care for Growth Phase, Strategy Update and FY22 Guidance 19
Slide 20: Positioning Radius Care for Growth Phase
Radius Care Positioning Radius Care for Growth Phase Senior management and board strengthened and sized for next phase of growth. - Brien Cree transitioned to Executive Chairman role focused on growth opportunities through development and acquisition - Stuart Bilbrough returned as CEO (previously CF
Slide 21: Strategy Update
Strategy Update Radius Care Focus continues on the execution of Radius Care’s growth strategy, with the exercise of Radius Care’s option to acquire the 4.3 hectare Belfast, Christchurch site being a key milestone since Listing Growth Strategy as outlined in the Listing Profile Execution of strategy
Slide 22: Radius Care
22 Radius Care
Slide 23: FY22 Outlook and Guidance
Radius Care FY22 Outlook and Guidance FY21 Guidance Listing Profile FY21 FY22 Actual ($m) Guidance ($m) Guidance ($m) Guidance for the 12 months to 31 March 2022 Underlying EBITDA 23.4 23.0 - 23.8 23.5 – 25.5 demonstrates expected Pre-NZ IFRS 16 Underlying continued earnings uplift. 10.5 10.2 - 11.0
Slide 24: Key Investment Highlights
Radius Care Key Investment Highlights Radius Care provides unique exposure to a high acuity, specialised care provider that remains committed to and focused on delivering compassionate and outstanding clinical care outcomes Strong founder backed team Demand underpinned by population demographics1 6
Slide 25: Appendix
25 Radius Care Appendix
Slide 26: Key operational and financial metrics
Key operational and financial metrics Radius Care Operating metrics DMF terms for Retirement Village units Financial period FY18 FY19 FY20 FY21 • 30% over three years • FY20 – 21 average resident tenure: 4 years Number of Care Beds (period end)1 1,682 1,701 1,704 1,715 Average Care Bed Occupancy2 89
Slide 27: Underlying EBITDA to AFFO Reconciliation
Radius Care Underlying EBITDA to AFFO Reconciliation AFFO outperformance in part due to maintenance capex below historical levels ($m) FY18 FY19 FY20 FY21 Underlying EBITDA 19.7 20.4 18.2 23.4 Include: Pre-NZ IFRS 16 operating rental lease expense (12.0) (12.4) (12.4) (12.9) Pre-NZ IFRS 16 Underlyin
Slide 28: Statement of Comprehensive Income
Radius Care Statement of Comprehensive Income ($000) FY20 FY21 Revenue Revenue from contracts with customers 113,359 121,217 Deferred management fees 671 1,081 Total revenue 114,030 122,298 Fair value movement of investment properties (649) 2,879 Government subsidy received 353 794 Interest income 4
Slide 29: Statement of Financial Position
Radius Care Statement of Financial Position ($000) FY20 FY21 Assets Cash and cash equivalents 2,317 2,761 Trade and other receivables 7,648 7,744 Inventories 308 548 Property, plant and equipment 32,303 32,896 Right-of-use assets 181,431 177,170 Investment properties 27,831 31,675 Deferred tax asset
Slide 30: Statement of Cash flows
Radius Care Statement of Cash flows ($000) FY20 FY21 Cash flow from operating activities Receipts from residents for care fees and village fees 113,282 122,337 Receipts of government subsidy - 1,210 Payments to suppliers and employees (95,436) (101,724) Proceeds from the sale of Refundable occupatio
Slide 31: Reconciliation of NZ GAAP financial measures to non-GAAP financial measures
Reconciliation of NZ GAAP financial measures to non-GAAP financial measures Radius Care ($000) FY20 FY21 Profit/(loss) for the year (2,833) 1,705 Adjustments Non-recurring or infrequent items Remove: COVID-19 related expenses 34 653 Remove: Government COVID-19 Subsidy (353) (857) Remove: One-off lis
Slide 32: Historical Pro forma Underlying EBITDA – FY19 to FY20
Radius Care Historical Pro forma Underlying EBITDA – FY19 to FY20 Aged care Retirement village Group support 21.0 $0.1 $(0.8) NZ$m $(0.2) $0.1 $(0.1) 19.0 $(0.6) $20.4 $(0.7) $18.2 17.0 FY19 Pro forma Brownfield & Bureau Other aged care DMF and weekly Realised Gains on Support office Support office
Slide 33: Directory of facilities
Directory of facilities Radius Care Leased facility Location Care Beds Units Current lease term Time to next renewal Rights of renewal Time to final expiry Landlord Heatherlea New Plymouth 55 - 12 yrs 5 yrs 3 x 12 yrs 41.1 yrs A Taupaki Gables Kumeu 60 - 12 yrs 5 yrs 3 x 12 yrs 41.1 yrs A Windsor Co
Slide 34: Radius Care
34 Radius Care
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