Reported First Quarter Revenue of $21.2 million
Generated Adjusted EBITDA from Operations of $0.5 million
Continued Execution of Integrated Healthcare Platform Strategy
ATLANTA, GA, May 20, 2026 (GLOBE NEWSWIRE) -- Regional Health Properties, Inc. (the “Company,” “Regional,” “we,” “us” or “our”) (OTCQB: RHEP) (OTCQB: RHEPA) (OTCQB: RHEPB) (OTCQB: RHEPZ), a healthcare company that owns, operates and invests in healthcare real estate and operating businesses focused on long-term care, senior housing and pharmacy services, today announced its financial results for the first quarter ended March 31, 2026.
First Quarter 2026 Financial Results
Reported revenue of $21.2 million, compared with $7.2 million for the first quarter of 2025
Reported GAAP net loss of $1.2 million, compared with GAAP net loss of $1.3 million for the first quarter of 2025
Generated Adjusted EBITDA from operations of $0.5 million, compared with $0.4 million for the first quarter of 2025
Reported net loss attributable to common stockholders of $0.29 per share, compared with $0.94 per share for the first quarter of 2025
First Quarter 2026 Business Highlights
Pharmacy Services revenue was $7.6 million following the addition of the Pharmacy Services segment in connection with the SunLink merger
Patient care revenues increased to $12.7 million, driven primarily by the transition of facilities to the Healthcare Services segment and higher census at our Glenvue facility
Portfolio occupancy was 73.2% at March 31, 2026 vs. 67.7% at March 31, 2025
Repurchased 30,232 shares of the Company’s 12.5% Series B Cumulative Redeemable Preferred Shares during the quarter at a discount to carrying value
Continued to evaluate refinancing and liquidity alternatives, including potential refinancing of the Southland facility and other mortgage loans
Management Comments
Brent Morrison, Regional’s President, Chief Executive Officer and Chairman, commented, “The first quarter reflects the new scale and business mix of Regional following the SunLink merger and the continued transition of additional facilities into our Healthcare Services segment. Revenue increased significantly year over year, and Adjusted EBITDA from operations improved despite the operating and working capital demands associated with a larger, more integrated healthcare platform.”
Mr. Morrison continued, “Our focus in 2026 remains on converting the expanded platform into stronger, more durable cash flow. We are working to improve facility-level performance, integrate and optimize Pharmacy Services, manage working capital, and advance refinancing and other liquidity alternatives that support our long-term strategy.”
Balance Sheet And Liquidity
As of March 31, 2026, the Company had $1.1 million of unrestricted cash and $1.5 million of restricted cash. As of March 31, 2026, the Company had $42.6 million of indebtedness, net of deferred financing costs and unamortized discounts.
About Regional Health Properties, Inc.
Regional Health Properties, Inc. is a healthcare company that owns, operates and invests in healthcare real estate and operating businesses focused on long-term care, senior housing and pharmacy services. For more information, visit https://www.regionalhealthproperties.com.
Important Cautions Regarding Forward-Looking Statements
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as “expects,” “intends,” “believes,” “anticipates,” “plans,” “likely,” “will,” “seeks,” “estimates” and variations of such words and similar expressions are intended to identify such forward-looking statements. This press release includes forward-looking statements that reflect the Company’s current views with respect to, among other things, its business, operations, financial performance, liquidity, capital resources, refinancing alternatives, facility operations, pharmacy operations, and future strategy.
Forward-looking statements, by their nature, involve estimates, projections, goals, forecasts and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those projected or contemplated by our forward-looking statements due to various factors, including, among others: the operating performance of our Healthcare Services and Pharmacy Services segments; our ability to collect patient, pharmacy and rent receivables; our dependence on the operating success of our tenants and managers; our ability to service our indebtedness and comply with covenants; the availability and cost of capital; our ability to refinance indebtedness, raise capital or complete asset sales on acceptable terms; changes in reimbursement rates and healthcare regulation; pharmacy reimbursement and claims-processing risk; labor costs, staffing availability and union-related matters; regulatory survey and compliance matters; inflation and interest rates; litigation and insurance costs; the relatively illiquid nature of real estate investments; and other factors discussed from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. These forward-looking statements speak only as of the date of this press release, and we expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained herein, except to the extent otherwise required by applicable law.
Company Contact |
Brent Morrison, CFA |
Chief Executive Officer & President |
Regional Health Properties, Inc. |
Tel (678) 368-4402 |
REGIONAL HEALTH PROPERTIES, INC. | ||||||||
STATEMENT OF OPERATIONS | ||||||||
(in thousands) | ||||||||
Three Months Ended March, 31 | ||||||||
2026 | 2025 | |||||||
(Unaudited) | ||||||||
Revenues: | ||||||||
Patient care revenues | $ | 12,715 | $ | 5,642 | ||||
Rental revenues | 860 | 1,548 | ||||||
Pharmacy revenues | 7,587 | — | ||||||
Total revenues | 21,162 | 7,190 | ||||||
Expenses: | ||||||||
Cost of goods sold | 4,492 | — | ||||||
Patient care expense | 9,715 | 4,401 | ||||||
Facility rent expense | 234 | 207 | ||||||
Depreciation and amortization | 722 | 402 | ||||||
General and administrative expense | 6,519 | 2,231 | ||||||
Loss on lease termination | — | 303 | ||||||
Credit loss expense | 182 | 70 | ||||||
Gain on operations transfer | — | (106 | ) | |||||
Total expenses | 21,864 | 7,508 | ||||||
Loss from operations | (702 | ) | (318 | ) | ||||
Other expense: | ||||||||
Interest expense, net | 522 | 653 | ||||||
Other (income) expense, net | (3 | ) | 291 | |||||
Total other (income) expense, net | 519 | 944 | ||||||
Net loss | (1,221 | ) | (1,262 | ) | ||||
Preferred stock dividends | — | (603 | ) | |||||
Deemed contribution related to Preferred Series B purchases | 64 | — | ||||||
Net loss attributable to Regional Health Properties, Inc. common stockholders | $ | (1,157 | ) | $ | (1,865 | ) | ||
Net loss per share of common stock attributable to Regional Health Properties, Inc.: | ||||||||
Basic and Diluted | $ | (0.29 | ) | $ | (0.94 | ) | ||
Weighted average shares of common stock outstanding: | ||||||||
Basic and Diluted | 3,935 | 1,993 | ||||||
REGIONAL HEALTH PROPERTIES, INC. | ||||||||
BALANCE SHEET | ||||||||
(in thousands) | ||||||||
3/31/2026 | 12/31/2025 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Cash | $ | 1,058 | $ | 3,013 | ||||
Restricted cash | 1,508 | 1,631 | ||||||
Accounts receivable, net of allowances of $933 and $727 | 10,057 | 8,025 | ||||||
Inventory | 1,625 | 1,354 | ||||||
Notes receivable | 624 | 644 | ||||||
Prepaid expenses and other | 1,355 | 1,623 | ||||||
Total current assets | 16,227 | 16,290 | ||||||
Property and equipment, net | 35,445 | 35,805 | ||||||
Assets held for sale, net | 4,229 | 4,207 | ||||||
Restricted cash | 1,509 | 1,420 | ||||||
Intangible assets | 4,640 | 4,660 | ||||||
Other assets | 3,648 | 3,842 | ||||||
Goodwill | 1,585 | 1,585 | ||||||
Total assets | $ | 67,283 | $ | 67,809 | ||||
LIABILITIES AND EQUITY | ||||||||
Accounts payable | $ | 7,712 | $ | 6,986 | ||||
Accrued expenses | 8,583 | 7,888 | ||||||
Other liabilities | 892 | 867 | ||||||
Debt related to assets held for sale, net | 2,935 | 3,001 | ||||||
Current portion of long term debt | 5,140 | 5,414 | ||||||
Total current liabilities | 25,262 | 24,156 | ||||||
Other debt, net | 593 | 516 | ||||||
Long-term debt, net - less current maturities | 34,546 | 34,738 | ||||||
Operating lease obligation | 2,163 | 2,325 | ||||||
Other liabilities | 1,583 | 1,550 | ||||||
Total liabilities | 63,554 | 62,769 | ||||||
Preferred stock, Series D, no par values, 1,420 shares authorized; 1,405 shares issued and outstanding at March 31, 2026 and December 31, 2025. | 4,691 | 4,691 | ||||||
Stockholders' equity: | ||||||||
Common stock and additional paid-in capital, no par value; 55,000 shares authorized; 3,946 issued and 3,935 outstanding at March 31, 2026 and December 31, 2025. | 67,392 | 67,296 | ||||||
Preferred stock, no par value; 5,000 shares authorized (including amounts authorized for Series A, Series B and Series D); shares issued and outstanding designated separately | ||||||||
Preferred stock, Series A, no par value; 559 shares authorized, issued and outstanding at March 31, 2026 and December 31, 2025, with a redemption amount $426 at March 31, 2026 and December 31, 2025 | 426 | 426 | ||||||
Preferred stock, Series B, no par value; 2,812 shares authorized; 1,711 and 1,741 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively, with a redemption amount $14,132 and $14,382 at March 31, 2026 and December 31, 2025, respectively | 14,132 | 14,382 | ||||||
Accumulated deficit | (82,934 | ) | (81,777 | ) | ||||
Accumulated other comprehensive earnings | 22 | 22 | ||||||
Total stockholders' equity (deficit) | (962 | ) | 349 | |||||
Total liabilities, Series D preferred stock and stockholders' equity (deficit) | $ | 67,283 | $ | 67,809 | ||||
REGIONAL HEALTH PROPERTIES, INC. | ||||||||||||||||||||||||||||
DEBT SUMMARY | ||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
3/31/2026 | ||||||||||||||||||||||||||||
Maturity | Interest Rate | Principal | % of Principal | Deferred financing costs | Unamortized discount on bonds | Net Carrying Value | ||||||||||||||||||||||
Total Fixed Rate Debt | 1/21/2032 | 4.35 | % | 36,437 | 83.9 | % | (626 | ) | (99 | ) | 35,712 | |||||||||||||||||
Total Floating Rate Debt | 10/1/2036 | 8.42 | % | 6,978 | 16.1 | % | (69 | ) | - | 6,909 | ||||||||||||||||||
Total | $ | 43,415 | 100.0 | % | $ | (695 | ) | $ | (99 | ) | $ | 42,621 | ||||||||||||||||
REGIONAL HEALTH PROPERTIES, INC. | ||||||||
RECONCILIATION OF NET (LOSS) TO NON-GAAP FINANCIAL MEASURES | ||||||||
(in thousands) | ||||||||
Three Months Ended March, 31 | ||||||||
2026 | 2025 | |||||||
(Unaudited) | ||||||||
Net loss | $ | (1,221 | ) | $ | (1,262 | ) | ||
Depreciation and amortization | 722 | 402 | ||||||
Interest expense, net | 522 | 653 | ||||||
EBITDA | 23 | (207 | ) | |||||
Amortization of employee stock compensation | 96 | 22 | ||||||
Credit loss expense | 182 | 70 | ||||||
Merger and other one-time costs | 220 | 291 | ||||||
Loss on lease termination | — | 303 | ||||||
Gain on operations transfer | — | (106 | ) | |||||
Tail insurance on legacy facilities | — | 55 | ||||||
One-time income adjustment - quality incentive program | — | — | ||||||
Adjusted EBITDA from operations | $ | 521 | $ | 428 | ||||