Regis Healthcare Limited (ASX: REG) is one of Australia’s leading private aged care providers. The company delivers quality care, including innovative ageing in place, residential, respite and dementia care to help residents live well.
Today, the company has announced the appointment of highly experienced Dr. Linda Mellors for the role of Chief Executive Officer and Managing Director of the company to take up the role of Ross Johnston who is going to step down on 3 September 2019.
Dr. Linda Mellors holds Bachelor degrees and a PhD from Monash University and besides that, she has completed a Graduate Certificate in Health Services Management from La Trobe University. Moreover, she is an experienced and capable leader with a long commitment to providing outstanding care to residents, patients and their families.
In the first half of FY19, the company reported revenue of $318 million, 8% higher than the previous corresponding period (pcp). Further, the company reported normalized EBITDA of $56.7 million, 7% on pcp.
Normalised 1H FY19 EBITDA was lower than 1H FY18 and reflects:
- A solid performance from the group of new Facilities ramping up
- Industry wide occupancy headwinds impacted the steady state portfolio
- A net improvement in earnings from the Facilities acquired from Presbyterian Care Tasmania
- Federal Government cuts to residential aged care funding, indexation and the associated increase in expenses implemented in 2017 and 2018
The company reported normalised NPAT of $24.7 million, 19% lower than 1H FY18, however, it was in line with the company’s guidance.
Summary of H1FY19 Results (Source: Company Reports)
During the half year period, the company delivered three new Facilities
- Lutwyche, Brisbane (delivered August 2018, 130 operational places)
- Elermore Vale, Newcastle (delivered September 2018, 120 operational places)
- Port Coogee, Perth (delivered September 2018, 139 operational places)
These new Facilities delivered from the development pipeline have created high quality Facilities. These are ramping up their operations with a focus on Care, Quality and Compliance. The company is making Solid progress towards achieving the company proforma for EBITDA, net RAD cashflow and Occupancy. The company’s FY19 NPAT (normalised) is anticipated to be in the range of $47 million to $51 million and its 2H FY19 EBITDA is anticipated to be broadly in line with the 1H FY19.
Now, let’s have a glance at the company’s stock performance and the return it has posted over the past few months. The stock is trading at a price of $3.140, up by 0.319% during the day’s trade with a market capitalisation of ~$941.05 million as on 20 May 2019 (AEST 3:03 PM). The counter opened the day at $3.140 and reached the day’s high of $3.170 and touched a day’s low of $3.120 with a daily volume of ~136,617. The stock has provided a year till date return of 14.23% & also posted returns of 26.21%, -6.01% & -5.44% over the past six months, three & one-month period respectively. It had a 52-week high price of $4.040 and touched 52 weeks low of $2.310, with an average volume of ~302,691.
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