RYM - Ryman Healthcare

[tomm]

Ryman full year underlying profit of $242 million, up 6.6%

Ryman reports audited full year underlying profit of $242 million, up 6.6%

[Beagle]

Solid result that can easily be understood in normal sized font.

[tomm]

Solid result that can easily be understood in normal sized font.

Just no one has posted here for a while , needed the attention .
At the moment , the market is panic and following the trend , when they realized and buffff... off RYM goes..

[macduffy]

Solid result that can easily be understood in normal sized font.

Agreed, Beagle. Companies posting an underlying profit of better than 6.6% in the next year or so will be doing very nicely.

[tomm]

Agreed, Beagle. Companies posting an underlying profit of better than 6.6% in the next year or so will be doing very nicely.

They also noted that despite covid19 effected ,total assets are at $7.6B , you can sum up the math for the share price .

[tomm]

Ryman's revenue rose nearly 11 percent to more than $422m, with growth in new unit sales at a margin of 27 percent.
This contributed to a near 7 percent increase in its underlying profit which was driven by strong performances in Ryman's Melbourne and Auckland villages.
The company will pay a full year dividend of 24.2 cents a share, which is in line with growth in the underlying profit.

[Mr Slothbear]

Cashflows up 12 percent which suggests the difference of around 5% between cashflow increase and underlying profit is the higher costs they faced due to Covid.

Takapuna site they've purchased looks excellent.

Increase in dividend very welcome.

Last few years they've had record occupancy but have not been hitting their own set 15% p/a growth target so I'm not sure why they are not increasing DMF fees or ORA costs slightly to reflect the premium product they provide. They did a phenomal job at protecting residents during this year and every year so I don't see why a small increase to residents isn't warrented.

They have a very very strong pipeline in the works so next couple of years will be good.

[jg8512]

Cashflows up 12 percent which suggests the difference of around 5% between cashflow increase and underlying profit is the higher costs they faced due to Covid.

Takapuna site they've purchased looks excellent.

Increase in dividend very welcome.

Last few years they've had record occupancy but have not been hitting their own set 15% p/a growth target so I'm not sure why they are not increasing DMF fees or ORA costs slightly to reflect the premium product they provide. They did a phenomal job at protecting residents during this year and every year so I don't see why a small increase to residents isn't warrented.

They have a very very strong pipeline in the works so next couple of years will be good.

development margin was high too, and probably will be lower (and within their target range) in future; so would have been even further from the 15% target without that.

On the analysts call : 1. the CFO (I think it was he) said they incurred $26m in COVID related costs which they had not expected to incur. 2. Gordy said that in January, before COVID, they were expecting to achieve the 15% target in FY20

[tomm]

development margin was high too, and probably will be lower (and within their target range) in future; so would have been even further from the 15% target without that.

On the analysts call : 1. the CFO (I think it was he) said they incurred $26m in COVID related costs which they had not expected to incur. 2. Gordy said that in January, before COVID, they were expecting to achieve the 15% target in FY20

Exellence investment in my opinion at the current shares price.

[Gerard]

I think the care side of the business has (increasingly) has seen squeezed margins, and this is affecting their 15% profit increase target. Cost inflation has well outstripped DHB funding increases in recent years, and covid has (and will) added to that in the immediate past. Yesterday, Gordy said that the industry had incurred about $80m in covid related costs but only been reimbursed by $26m. He said that equated to 2 cups of coffee per resident per day!

i am surprised Ryman haven't moved to a ORA arrangement for the care side of the business (in addition to serviced apartments) similar to Arvida & Oceania. Increasing the DMF on the lifestyle side of the villages to further cross subsidise the care division would, I believe, lose one of their key points of difference, marketing wise.

I suspect covid related costs will accelerate the further demise of many stand alone care facilities that don't have lifestyle units as part of their operations.