Full Year 2024 Regis Healthcare Ltd Earnings Call Transcript
Key Points
- Regis Healthcare Ltd (ASX:REG) reported a 28.7% increase in underlying EBITDA to $107.2 million.
- Revenue from services exceeded $1 billion for the first time, up 30% from the prior year.
- Occupancy rates improved to 95.3% as of June 30, 2024, indicating strong demand.
- The company acquired CPSM, adding five premium homes and 644 beds, contributing positively to financial results.
- Net operating cash flow increased by 140% to $252.3 million, ending the year with a net cash position of $64.9 million.
- Staff costs increased by 30%, driven by wage increases and additional staffing to meet care minute requirements.
- The aged care sector faces a significant need for new and refurbished beds, estimated to cost $55 billion to $72 billion over the next decade.
- Only 36% of homes met their care minutes targets in the second quarter of FY24, indicating potential overstatement of sector profitability.
- The company reported a statutory net loss of $21.4 million, impacted by amortization expenses.
- The aged care sector continues to face challenges with underfunding, elevated construction costs, and regulatory uncertainties.
Thank you, and good morning, everybody. And thank you very much for joining us today to discuss Regis Healthcare's 2024 full-year results. I would like to begin by acknowledging the Wurundjeri Woiwurrung people of the Kulin Nation, traditional custodians of the land on which we meet today, and pay my respects to their elders past and present. I extend that respect to any Aboriginal or Torres Strait Islander peoples joining us on the call.
I am again joined today by Rick Rostolis, our Chief Financial Officer.
Regis is one of the largest and most geographically diverse providers of aged care in Australia, operating residential aged care homes, homecare service hubs, day therapy and response centers, and retirement villages. Regis have a team now of more than 11,000 dedicated people delivering care and services to more than 9,000 residents and clients on any given day.
Regis owns and operates 67 residential aged care homes in every state of Australia and the Northern Territory
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