Regis Healthcare (ASX: $REG) H1 FY24 Half-Year Results Presentation

Regis Healthcare Limited (ASX: $REG) has released its Half-Year Results Presentation for FY24, reporting a 15.5% increase in underlying EBITDA to $52.1 million. The company, a leading residential aged care provider with over 30 years in the industry, operates 68 aged care homes with 7,600 available operational places and approximately 10,000 employees. Regis achieved an average occupancy of 93.6% as of 31 December 2023, reflecting its position as one of the largest and most geographically diverse aged care portfolios.

Industry Reform and Sector Changes

Regis Healthcare highlighted the impact of industry reforms and sector changes, including improved funding regime, mandated care minutes requirement, introduction of Star Ratings, and the implications of the new Aged Care Act. The company emphasized leveraging its strong clinical and compliance functions to positively differentiate from peers and the potential for improved funding arrangements following the Government Aged Care Taskforce review. Additionally, Regis aims to differentiate from competitors through the provision of higher quality care and services, as well as capitalizing on the significant growth opportunity for scale players through bed licence deregulation.

Financial and Operational Performance

Regis Healthcare's financial overview for H1 FY24 includes a 26.2% increase in revenue from services to $480.1 million, with an underlying EBITDA of $52.1 million and NPATA of $16.3 million. The company's average occupancy improved to 93.6%, and it paid an interim dividend of 6.28 cents per ordinary share. The acquisition of CPSM Pty Ltd, a premium residential aged care business in South-East Queensland, contributed $7.4 million from 1 December 2023. Regis also outlined its key strategic priorities, focusing on the delivery of safe, effective, and integrated care, attracting and retaining talent, and pursuing growth and development supported by operational excellence and digital enablers. Looking ahead, Regis expects to benefit from the recent CPSM acquisition and additional Government funding, supporting the pursuit of further material strategic acquisitions and greenfield developments to drive shareholder value.