Regis Healthcare (ASX: $REG) FY24 half-year results overview

Regis Healthcare Limited (ASX: $REG) has reported its FY24 half-year results, including a statutory net loss after tax of $12.1 million impacted by non-cash bed licence amortisation. The company achieved revenue of $480.1 million, up 26% on the previous corresponding period (pcp), with underlying EBITDA of $52.1 million, up 16% on pcp. Regis also saw a significant increase in NPATA to $16.3 million, up 527% on pcp, and a net operating cash flow of $151.9 million, up 145% on pcp, including refundable accommodation deposits (RADs) net cash inflow of $42.9 million. The company ended the half-year with net cash of $16.9 million at 31 December 2023 and has resolved to pay an interim dividend of 6.28 cents per ordinary share (50% franked) payable on 11 April 2024.

Regis Healthcare (ASX: $REG) executive commentary

Regis' Managing Director and CEO Dr Linda Mellors expressed satisfaction with the company's strong growth across key metrics, attributing it to a more stable aged care environment. She highlighted the increase in direct care minutes and completion of the organizational redesign ahead of the Government's mandated minimum care minutes requirement from 1 October 2023. Dr Mellors also acknowledged the challenges posed by the Government's aged care reform agenda, emphasizing the need for long-term funding and the company's focus on clinical care, quality, and safety to drive occupancy and financial performance. She further emphasized Regis' strong balance sheet, net cash position, and substantial debt facility, positioning the company to expand its residential aged care footprint through greenfield developments and strategic acquisitions.

Regis Healthcare (ASX: $REG) FY24 half-year results summary and outlook

Regis Healthcare's FY24 half-year results reflect strong growth in revenue, underlying EBITDA, and NPATA, despite a statutory net loss after tax impacted by non-cash bed licence amortisation. The company's acquisition of CPSM Pty Ltd, improvement in average overall star rating, and increase in average total care minutes are notable operational highlights. Regis anticipates benefiting from the recent CPSM acquisition and additional Government funding in the second half of FY24. With a strong balance sheet and substantial debt facility, the company aims to actively pursue further material strategic acquisitions and greenfield developments to drive shareholder value. Regis remains focused on adapting to the evolving regulatory environment and maintaining its commitment to high-quality care and services for older Australians.