The listed provider has pledged to invest in a growth strategy to expand its home care services “in the nearer term” at its annual AGM.
Like Japara, Regis said Victoria’s second wave had resulted in tougher operating conditions for its Victorian facilities including lower occupancy, lower income and higher costs.
Regis experienced a number of outbreaks – some involving just one staff member – while two spread to residents at their Brighton and Fawkner homes, resulting in the deaths of 12 residents.
Impairment charge to goodwill totals $20 million
Net profit after tax was $3.8 million, including a non-cash goodwill impairment charge of $20.6 million.
Underlying net profits after tax was $21.5 million, down 54% from the previous period, while underlying EBITDA was $85.1 million, down 23.6%, mainly due to lower occupancy which was averaging 87.9% in the first quarter of FY21 before rising to 88.5% as of 23 October.
Revenue was up 4.8% on the back of $6.4 million from the Federal Government’s June coronavirus funding measures and $1.8 million in temporary ACFI funding – though CEO Linda Mellors noted that this $8.2 million was still $2.6 million below the Government funding received in the previous year.
No dividends for shareholders
As a result, Chairman Graham Hodges (pictured) said the Board had elected not to pay a full year dividend to preserve cash in the uncertain health and economic environment.
“The Board sees the reinstatement of dividends as a priority once conditions improve,” Mr Hodges said.
FY20 incentive awards for executives and managers were also cancelled, he added.
New property developments are also on hold until “greater clarity” is able to be provided on their capital return.
In addition, Regis paid down $66 million in debt and extended its tranche of its committed bank debt facilities.
Further assets likely to be sold
With the site of its planned Gold Coast development sold for $21 million, Mr Hodges also flagged the sale of further non-income producing assets.
Regis’ share price dropped to its lowest point since listing in May at $0.76 before settling at $1.08 yesterday for a market capitalisation rate of around $324 million.
Regis has 65 aged care homes across Victoria, QLD, NSW, South Australia, Tasmania, Northern Territory and WA.
