Radius Residential Care Ltd · NZX:RAD
Radius Residential Care — H1 FY2022 Earnings Presentation
32 slides from Radius Residential Care's earnings presentation, Nov 30, 2021
Slide 1: Interim Results
Radius Residential Care Limited Interim Results 30 September 2021
Slide 2: Presenting Today
Radius Care Presenting Today Brien Cree Michelle Slabber Executive Chairman / Managing Director General Manager, Finance • Founded Radius Care in 2003, then part of • Joined Radius Care in 2016 Radius Health Group • Has nearly 25 years’ experience in finance • Moved into Executive Chairman role in r
Slide 3: Radius Care
3 Radius Care
Slide 4: Radius Care at a Glance
Radius Care Radius Care at a Portfolio summary as at 29th November 2021 Glance Radius Care Owned Leased from 3rd Total Parties* PROVIDING SPECIALIST Existing Portfolio AND AGED CARE SERVICES Sites 8 15 23 Aged Care Beds 524 1,260 1,784 ACROSS NEW ZEALAND Independent Living Units 101 - 101 Total Plac
Slide 5: Radius Care at a Glance (cont)
Radius Care Radius Care National aged care focused portfolio with strong regional presence at a Glance (cont) Leased Sites 2 AUCKLAND Beds 188 ILUs - Total 188 Sites NORTHLAND Beds ILUs Total Leased 3 155 - 155 Owned 1 60 - 60 Residents and Employees WAIKATO BAY OF PLENTY Sites Beds ILUs Total Sites
Slide 6: Agenda
Radius Care Agenda 1 2 3 4 Overview Analysis of result Executing Radius Care Appendix of 1HY22 financial Strong strategic growth and Growth phase, — Key operational and performance continued operational strategy update and financial metrics excellence FY22 revised guidance — Summary P&L, Balance She
Slide 7: Overview of 1HY22 Financial Performance
Radius Care Overview of 1HY22 Financial Performance 7
Slide 8: 1HY22 Highlights and Key Events
Radius Care 1HY22 Highlights Progress on Strategy and Key Events - Raised $48.2m in growth capital and acquired 4 strategic properties previously leased - Pipeline of brownfield developments grows to 124 care beds and Strong strategic growth and 42 ILUs continued operational - Exercised option to ac
Slide 9: 1HY22 Highlights and Key Events (cont)
Radius Care 1HY22 Highlights and Key Events (cont) Financial Performance Protecting residents from - Revenue up 8% to $66.3m COVID-19 has increased costs. - Accommodation supplement revenue up 16% to $3.1m - AFFO consistent at $2.3m - Underlying EBITDA down 9% to $11.2m - Underlying EBITDA per bed m
Slide 10: Financial performance overview
Radius Care Financial performance overview Strong revenue growth with border issues and focus on safety constraining EBITDA. Total Revenue Underlying EBITDA Pre-NZ IFRS 16 Underlying EBITDA - 1HY22 Revenue of $66.3m up 8% - 1HY22 Underlying EBITDA of $11.2m - 1HY22 Pre-NZ IFRS 16 Underlying down 9%
Slide 11: Summary of Key Drivers of 1HY22 Financial Performance
Radius Care Summary of Key Drivers of 1HY22 Financial Performance Improved occupancy, bed rates/mix and accommodation supplements. Border related labour supply issues and strong demand increased labour rates. Other inflationary pressures. 1HY21 U.EBITDA v 1HY22 U.EBITDA 20.0 18.0 16.0 14.0 $m 12.0 1
Slide 12: Cash Flow and Dividends
Radius Care Cash Flow and Dividends Increased Dividend on consistent AFFO given pro forma Guidance. AFFO Dividends - 1HY22 AFFO of $2.3m FY22 Interim Dividend - Gross fully imputed FY22 interim dividend declared of 3.0 0.7 cents per share (which includes 0.2 cents per share of attaching imputation c
Slide 13: Analysis of result
Radius Care Analysis of result CONTINUATION OF STRONG TRACK RECORD 13
Slide 14: Revenue Growth and Diversification
Radius Care Revenue Growth and Diversification Strong revenue growth continues with growing direct private (non-Government) revenue streams Total revenue Direct private (non-Government) revenue 1 140.0 15.0 126.0 120.0 113.7 12.5 110.1 100.2 100.0 Direct Private Revenue $m 10.0 87.0 80.0 76.1 $m 70.
Slide 15: Bed Mix Oriented to High Acuity and Specialist Care
Bed Mix Oriented to High Acuity and Specialist Care Radius Care Over 1HY22, beds certified for high acuity and specialist care have increased from 86% to 87% of the portfolio. Radius Care continues to provide more care offerings and in particular more specialist care offerings per facility than peer
Slide 16: Strong Occupancy Growth
Strong Occupancy Growth Radius Care Occupancy growth underpinned by supportive industry backdrop of (1) aging population (2) increasing bed demand particularly for high acuity and specialist care and (3) rising years in spent in dependency 1. Aging New Zealand population1 Growing Occupancy v.s. indu
Slide 17: Consistent underlying EBITDA per Care Bed
Consistent underlying EBITDA per Care Bed Radius Care Despite additional costs incurred to protect residents we have maintained Underlying EBITDA per care bed. Strong Occupancy (see previous page) Underlying EBITDA per care bed1 Growing accommodation supplements 12.0 10.7 10.3 3.5 2,000 Accommodatio
Slide 18: Executing Radius Care Growth Phase, Strategy Update and FY22 Revised Guidance
Radius Care Executing Radius Care Growth Phase, Strategy Update and FY22 Revised Guidance 18
Slide 19: Strategy Update
Radius Care Strategy Update Significant strategic development in the period Growth Strategy as outlined in the Listing Profile Execution of strategy GO FORWARD STATERGY HISTORICAL TRACK RECORD CURRENT STATUS Brownfield potential identified at owned sites at: - Lexham Park (Katikati): Additional 20 C
Slide 20: Radius Care
20 Radius Care
Slide 21: FY22 Revised Outlook and Guidance
Radius Care FY22 Revised Outlook and Guidance Guidance for the 12 months to 31 March 2022 FY 22 Reporting Basis Guidance FY 22 Pro Forma Basis Guidance FY21 Original Pre- 5 Aug 21 1 Nov 21 Revised Clare Revised ($m) Ohaupo Actual Guidance Acquisition Ohaupo Clare House Guidance House* Guidance Under
Slide 22: 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 23: Appendices
Radius Care Appendices 23
Slide 24: Key operational and financial metrics
APPENDIX ONE Radius Care Key operational and financial metrics Operating metrics DMF terms for Retirement Village units Financial period 1HY22 1HY21 1HY20 • 30% over three years • average resident tenure: 4 years Number of Care Beds (period end)1 1,715 1,714 1,704 Average Care Bed Occupancy2 93.0% 9
Slide 25: Underlying EBITDA to AFFO Reconciliation
Radius Care APPENDIX TWO Underlying EBITDA to AFFO Reconciliation Consistent AFFO performance ($m) 1HY22 1HY21 1HY20 Underlying EBITDA 11.2 12.4 9.3 Include: Pre-NZ IFRS 16 operating lease expense (6.1) (6.4) (5.7) Pre-NZ IFRS 16 Underlying EBITDA 5.1 6.0 3.6 Include: Depreciation and amortisation (
Slide 26: Statement of Comprehensive Income
Radius Care APPENDIX THREE Statement of Comprehensive Income ($000) 1HY22 1HY21 Revenue Revenue from contracts with customers 64,458 59,471 Deferred management fees 449 389 Total revenue 64,907 59,860 Fair value movement of investment properties (65) 716 Government subsidy received - 794 Interest in
Slide 27: Statement of Financial Position
Radius Care APPENDIX FOUR Statement of Financial Position ($000) 1HY22 FY21 Assets Cash and cash equivalents 6,471 2,761 Trade and other receivables 10,502 7,744 Inventories 629 548 Investment properties 31,773 31,675 Property, plant and equipment 64,247 32,896 Right-of-use assets 137,038 177,170 In
Slide 28: Statement of Cash flows
Radius Care APPENDIX FIVE Statement of Cash flows ($000) 1HY22 1HY21 Cash flows from operating activities Receipts from residents for care fees and village fees 62,670 60,788 Receipts of Government subsidy - 353 Payments to suppliers and employees (54,899) (48,875) Proceeds from the sale of Refundab
Slide 29: Reconciliation of NZ GAAP to non-GAAP financial measures
APPENDIX SIX Reconciliation of NZ GAAP financial measures to non-GAAP financial measures Radius Care ($000) 1HY22 1HY21 Profit for the period 1,334 2,065 Adjustments Non-recurring or infrequent items Remove: COVID-19 related expenses 331 653 Remove: Government COVID-19 Subsidy - (857) Remove: One-of
Slide 30: Directory of facilities
APPENDIX SEVEN 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 Kensington Hamilton 96 - 10 yrs 2.6 yrs 2 x 10 yrs 12.6 yrs A Peppertree Palmerston North 62 - 10 yrs 3.2 yrs 2 x 10 yrs
Slide 31: Important Notice and Disclaimer
Radius Care Importance This presentation has been prepared by Radius Residential Care Limited (“Radius Care”), for informational purposes. This disclaimer applies to this document and the verbal or written comments of any person presenting it. Notice and This presentation sets out information relati
Slide 32: Thank You
Radius Care Thank You 32
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