Regis Healthcare swings to first-half profit, misses estimates
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The news: Aged care provider Regis Healthcare has returned to a first-half profit of $24.4 million, boosted by increased care funding from the federal government and larger revenue from new acquisitions.
However, the company missed market estimates of a $26.5 million profit, according to Visible Alpha data, compared with a $12.1 million interim loss a year ago.
The numbers: Regis declared an interim dividend of 8.09 cents, better than the 7.76 cents-per-share payout that analysts expected.
Revenue from services jumped 17.5% year on year to $564.2 million while staff expenses rose 16% to $425.2 million.
The context: Regis said that care funding "increased significantly" from 1 October last year, with changes to the Australian National Aged Care Classification rates funding an increase in the company's care minutes mandate and aged care worker pay rises.
Revenue was also boosted by the $35.5 million acquisition of two residential aged care homes in September, while the company's purchase of BodeWell Community Care, announced last month, is set to double the size of its home care business.
However, Regis saw a sharp rise in staff expenses during the half-year period as the business recruited frontline staff, increased worked hours in response to the rise in government-mandated care minutes, and saw a 3.75% increase to minimum award wages.
The source: ASX release
