Regis says $38.8M Net Loss after Tax in FY22 was actually a profit

The ASX-listed For Profit business Regis Healthcare reported a Net Loss after Tax of $38.8 million in FY22 – but all is not as it seems, according to its annual report. Both Regis and Estia Health last month reported FY22 losses to the ASX; however, Regis Chairman Graham Hodges (pictured) says this is not the full story.

“This outcome was largely the result of two important factors; a net after tax write-down of $42.7m following the Australian Government’s decision in September 2021 to deregulate operational places from 1 July 2024 (a non-cash item) and; $27.8m in COVID-19 expenses in the year which, as at 30 June 2022, only $3.2m had been refunded by the Government,” he said. “Excluding a number of one-off/non-recurring items, Underlying EBITDA was $78.1 million, up 8% on like terms from FY21. Net operating cashflow was $114.8 million, assisted by a strong increase of $83.9 million in net RAD cash inflows. “Despite ongoing COVID-19 outbreaks, resident occupancy was stable across the year (89.8% occupancy) and net debt was reduced by 28% to $102.9 million.”

Regis, which denied a takeover bid by Soul Pattinson in 2020, provides care for over 7000 residents in its 64 aged care homes, 20 Club Services Homes, 10 Regis Retirement Villages and 6 Home Care Services Hubs. It employs over 8,650 people. Graham said Regis has bought vacant land in Belrose, 19km northeast of Sydney’s CBD, and took out an option over a new greenfield site in Carlingford, 22km northwest of Sydney’s CBD.

“Both sites are earmarked for residential aged care development. Regis has also commenced the development of a new residential aged care home in Camberwell, Victoria,” he said.