RAD - Radius Healthcare

[beetills]

Why would they then place the trading on halt..?

Can't for the life of me see that notice but then i'm half blind.

[kiwimalayalee]

Was for a brief period...

[Southern Lad]

Why would they then place the trading on halt..?

Standard NZX procedure for a 15 minute administrative trading halt when a price sensitive announcement is lodged. See page 5 of the Market Announcement Platform user guide MAP_User_Guide_-_December_2023_update.pdf (nzx.com)

This helps ensure market has time to digest and react to any market sensitive information.

[kiwimalayalee]

Thanks for that

[ronaldson]

The share price here is falling away by the day. January 16th can't come quickly enough.

If Arran Court settles AND it is the most expensive debt that is repaid from the proceeds then I just might double or treble my small holding to average down, but not otherwise.

Well, they didn't repay the most expensive debt (18%/16% on the Matamata property ) so I quit Friday and today at 14cps. I seem to recollect acquiring the great majority of the parcel at 52cps in July 2021 as part of their last capital raise so a significantly unprofitable investment. I blame management/Board overreach whilst misjudgeing the economic circumstances, combined with a Labour Government that was decidedly parsimonious towards the sector (and risked driving the charitable component to extinction), and the greatly escalated staffing costs to operate aged care facilities not really replaced by increases in the bed subsidy rate.

A great example of a Company providing a real and (hopefully) ongoing benefit to our society but patently uninvestable!

[winner69]

Well, they didn't repay the most expensive debt (18%/16% on the Matamata property ) so I quit Friday and today at 14cps. I seem to recollect acquiring the great majority of the parcel at 52cps in July 2021 as part of their last capital raise so a significantly unprofitable investment. I blame management/Board overreach whilst misjudgeing the economic circumstances, combined with a Labour Government that was decidedly parsimonious towards the sector (and risked driving the charitable component to extinction), and the greatly escalated staffing costs to operate aged care facilities not really replaced by increases in the bed subsidy rate.

A great example of a Company providing a real and (hopefully) ongoing benefit to our society but patently uninvestable!

Well said about what Radius do ..they do a great job

But then again Radius has been uninvestable since (or before it floated)

Does raise questions about how we as a nation goingbto care for oldies.

[Sideshow Bob]

https://www.nzx.com/announcements/428831

Radius Clears Short-Term Debt, Intends to Resume Dividends

Radius Care (NZX: RAD) completed on 28 March 2024 a refinancing with ASB of its remaining short-term borrowings. These non-bank facilities were originally drawn to finance the purchase of Matamata Country Lodge.

Following the refinancing, 100% of Radius Care’s bank facilities are held with ASB and have a weighted average tenure of 2.8 years, with maturity dates ranging from 1 November 2026 to 6 May 2027. The refinancing will result in financing cost savings of approximately $1m a year.

Brien Cree, Executive Chair, said “Radius Care is completing the 2024 financial year in a strong position to accelerate our growth strategy. We have no short-term debt and the previously announced completion of the Arran Court sale materially reduced debt levels.”

Radius Care confirms the previously-provided outlook for FY24. The improved operating results and momentum seen in the first half of FY24 will be reflected in Radius Care’s full year results due to be released on 27 May 2024.

As previously signalled, as the debt management program is now completed, the Board intends to resume dividend payments, and expects to declare a dividend in respect of FY24.

[kiwikeith]

https://www.nzx.com/announcements/428831

Radius Clears Short-Term Debt, Intends to Resume Dividends

Radius Care (NZX: RAD) completed on 28 March 2024 a refinancing with ASB of its remaining short-term borrowings. These non-bank facilities were originally drawn to finance the purchase of Matamata Country Lodge.

Following the refinancing, 100% of Radius Care’s bank facilities are held with ASB and have a weighted average tenure of 2.8 years, with maturity dates ranging from 1 November 2026 to 6 May 2027. The refinancing will result in financing cost savings of approximately $1m a year.

Brien Cree, Executive Chair, said “Radius Care is completing the 2024 financial year in a strong position to accelerate our growth strategy. We have no short-term debt and the previously announced completion of the Arran Court sale materially reduced debt levels.”

Radius Care confirms the previously-provided outlook for FY24. The improved operating results and momentum seen in the first half of FY24 will be reflected in Radius Care’s full year results due to be released on 27 May 2024.

As previously signalled, as the debt management program is now completed, the Board intends to resume dividend payments, and expects to declare a dividend in respect of FY24.

This company has had a horific run since listing on the stock exchange. Then there was a discounted capital raise at 52 cents 3 years ago. If you had the good fortune to avoid the initial IPO and then the capital raise, it may now be an opportune time to get in. The indication that they are going to resume dividends is a positive.

[Sideshow Bob]

https://www.nzx.com/announcements/429877

Radius Residential Care Limited (NZX: RAD) today announced a final dividend for FY24, and provided guidance on key financial metrics (subject to completion of audit) and a business performance update.

Key financial metrics (subject to completion of audit):

• Underlying EBITDA of $21m, 48% up on FY23.
• AFFO of $7.5m, 89% up on FY23.
• EBITDAR per bed of $24.6k.
• Net debt of $73.5m, a reduction of $26.5m/26.5% vs prior year, with $18.3m from Arran Court and the remainder of $8.2m from operating cashflow.
• No short-term debt remaining at 31 March 2024, with an average tenure of 2.8 years and $3.5m undrawn debt facilities.
• Cash dividend of 0.7cps, with full imputation credits resulting in a gross dividend of 0.97cps.

“As a specialist care provider with a clear focus on our core business, Radius Care’s exceptional people have delivered industry leading results and profitable growth across the Group. With a strengthened balance sheet and positive operating cashflow, the Board is pleased to resume dividend payments” said Brien Cree, Radius Care’s Executive Chair. Radius Care intends to release its full audited financial results for the FY24 year in late May 2024.

Business Performance

Andrew Peskett, Radius Care’s CEO, commented “the strong operating performance was driven by a number of factors:
1. Exceptional people leading our 1,700 committed team members delivering exceptional care in our fully staffed care homes.
2. Increased Accommodation Supplement revenue (+$1.9m vs FY23).

3. Significant cost out programme successfully implemented in early FY24, delivering $1.3m in annual cost savings.
4. Improved mix, with higher-revenue Hospital and ACC occupancy.
5. Completion of debt management program including ASB refinancing to reduce interest costs by $1 million per year.
6. Strong resale gains at villages of $1.8m."

Dividend

A dividend of 0.70 cents per share has been declared for the FY24 year. The dividend will carry full imputation credits, resulting in a gross dividend of 0.97 cents per share. The dividend will be paid on 16 May 2024, with a record date of 2 May 2024. The Board has determined that the Dividend Reinvestment Plan will not apply to this dividend.

The payout ratio for the dividend is 27% of FY24 full year AFFO, which is below the target payout ratio of 50% to 70% of AFFO, due to the priorities earlier in FY24 of repaying debt and strengthening the balance sheet.

Outlook

Subject to normal trading conditions, Radius Care expects continued growth in Underlying EBITDA and other metrics in FY25 vs FY24.

The Board is targeting a return to the previous cycle of an interim dividend paid in December and a final dividend paid in June.

[kiwikeith]

https://www.nzx.com/announcements/429877

Radius Residential Care Limited (NZX: RAD) today announced a final dividend for FY24, and provided guidance on key financial metrics (subject to completion of audit) and a business performance update.

Key financial metrics (subject to completion of audit):

• Underlying EBITDA of $21m, 48% up on FY23.
• AFFO of $7.5m, 89% up on FY23.
• EBITDAR per bed of $24.6k.
• Net debt of $73.5m, a reduction of $26.5m/26.5% vs prior year, with $18.3m from Arran Court and the remainder of $8.2m from operating cashflow.
• No short-term debt remaining at 31 March 2024, with an average tenure of 2.8 years and $3.5m undrawn debt facilities.
• Cash dividend of 0.7cps, with full imputation credits resulting in a gross dividend of 0.97cps.

“As a specialist care provider with a clear focus on our core business, Radius Care’s exceptional people have delivered industry leading results and profitable growth across the Group. With a strengthened balance sheet and positive operating cashflow, the Board is pleased to resume dividend payments” said Brien Cree, Radius Care’s Executive Chair. Radius Care intends to release its full audited financial results for the FY24 year in late May 2024.

Business Performance

Andrew Peskett, Radius Care’s CEO, commented “the strong operating performance was driven by a number of factors:
1. Exceptional people leading our 1,700 committed team members delivering exceptional care in our fully staffed care homes.
2. Increased Accommodation Supplement revenue (+$1.9m vs FY23).

3. Significant cost out programme successfully implemented in early FY24, delivering $1.3m in annual cost savings.
4. Improved mix, with higher-revenue Hospital and ACC occupancy.
5. Completion of debt management program including ASB refinancing to reduce interest costs by $1 million per year.
6. Strong resale gains at villages of $1.8m."

Dividend

A dividend of 0.70 cents per share has been declared for the FY24 year. The dividend will carry full imputation credits, resulting in a gross dividend of 0.97 cents per share. The dividend will be paid on 16 May 2024, with a record date of 2 May 2024. The Board has determined that the Dividend Reinvestment Plan will not apply to this dividend.

The payout ratio for the dividend is 27% of FY24 full year AFFO, which is below the target payout ratio of 50% to 70% of AFFO, due to the priorities earlier in FY24 of repaying debt and strengthening the balance sheet.

Outlook

Subject to normal trading conditions, Radius Care expects continued growth in Underlying EBITDA and other metrics in FY25 vs FY24.

The Board is targeting a return to the previous cycle of an interim dividend paid in December and a final dividend paid in June.

Paying 0.7cps dividend is 27% of AFFO. The target ratio is 50-70%. So at the midpoint of 60% - next year's dividend should be 1.55cps. (that ignores that Radius expects financial metrics to improve again next year.) 1.55 divided by the current share price of 12c gives a forward dividend yield of 12.9% (maybe fully imputed like this year). Clearly there is a level of mistrust with the management team but the shares appear significantly undervalued by the market. I do wonder why insiders are not piling in?