Announcement
FLLYR: OCA: Oceania records strong 10 month trading results
08:30am
OCA
21/05/2021 08:30
FLLYR
PRICE SENSITIVE
REL: 0830 HRS Oceania Healthcare Limited
FLLYR: OCA: Oceania records strong 10 month trading results
MEDIA RELEASE
21 May 2021
OCEANIA RECORDS STRONG 10 MONTH TRADING RESULTS
Oceania today announced unaudited Underlying Earnings before interest, tax,
depreciation and amortisation (EBITDA) of $56.2m for the 10 month period
ended 31 March 2021, an 8% ($4.1m) increase on the ten month period ended 31
March 2020.
Highlights:
o Sales volumes (for both independent living apartments and villas, as well
as care suites) 26% ahead of the 10 month period ended 31 March 2020.
o Aged care business continued to perform well throughout the period despite
COVID-19 disruptions, with occupancy increasing to 92.4% for the 10 months to
31 March 2021 compared to 91.7% for the 10 months to 31 March 2020.
o The completion of 217 units and care suites during the 10 month period to
31 March 2021.
o Operating cash flow of $96.0m for the 10 month period to 31 March 2021
compared to $99.4m for the 12 months to 31 May 2020, as a result of continued
strong sales volumes.
o Total assets increased to $1.9 billion, up 22% ($335.0m) on 31 May 2020,
primarily due to significant capital expenditure and reversal of COVID-19
related property valuation assumptions.
o Completion of a $100.0m capital raise, comprising a $80.0m placement and a
$20.0m retail offer.
o Acquisition of Waterford and Franklin sites.
o Final dividend of 2.1 cents per share (not imputed) announced. This will
have a record date of 8 June 2021 and will be paid on 22 June 2021. The
Dividend Reinvestment Plan will apply to this dividend.
Oceania has changed its balance date from 31 May to 31 March. The financial
performance outlined below is reported on the basis of the 10 month period to
31 March 2021:
31 March 2021 unaudited non-GAAP trading measures 10 months vs 10 months
$m 10 months to
31 March 10 months to
31 March Growth
Unaudited 2021 2020 $m %
Underlying EBITDA 56.2 52.1 4.1 7.9%
Underlying NPAT 41.8 40.0 1.8 4.5%
Sales 388 309 79 25.6%
Occupancy 92.4% 91.7% 0.64% 0.7%
31 March 2021 audited GAAP statutory measures 10 months vs 12 months
$m 10 months to
31 March 12 months to
31 March
Audited 2021 2020
Operating Revenue 175.4 193.6
Reported NPAT 85.5 (13.6)
Operating Cashflow 96.0 99.4
Total Assets 1,883.7 1,548.7
Oceania CEO Brent Pattison advised that "we have observed strong volumes of
sales across both independent living apartments and villas, as well as our
care suite products. Our team has worked hard to ensure that we deliver
growth and performance to our investor community against the challenging
backdrop of COVID-19. We increased our investment in the business,
demonstrating our commitment to building an even better future for Oceania,
our residents, their families and our staff."
Oceania is continuing to focus on its premium care strategy. Premium care
revenue is driven by increased deferred management fee capture. Mr Pattison
explained that "the execution of our premiumisation strategy is a critical
driver of underlying performance. Approximately 55% of our care portfolio is
now premium beds or care suites, compared to 34% at the time of our IPO in
2017. For the 10 months to 31 March 2021, Oceania generated premium care
revenue which is 12% higher than premium revenue for the full 12 month period
to 31 May 2020."
Operating cashflow of $96.0m for the 10 month period to 31 March 2021 was
particularly strong, compared to $99.4m for the 12 months to 31 May 2020, as
a result of continued strong sales volumes. Total assets increased to $1.9
billion, up 22% ($335.0m) on 31 May 2020, primarily due to significant
capital expenditure and the reversal of COVID-19 related property valuation
assumptions.
Following the lifting of COVID-19 restrictions, Oceania delivered 217 units
and care suites across three sites in the 10 month period to 31 March 2021,
with guidance unchanged despite the change in balance date. The development
of 28 independent living apartments and 61 care suites at Green Gables
(Nelson) was completed in September 2020 and sales at this site are
progressing well. In addition, the development of 35 independent living
apartments at The BayView (Tauranga) and 22 independent living apartments and
71 care suites at The Bellevue (Christchurch) were completed during the
period. Since 31 March 2021, Oceania has also completed the development of
49 independent living apartments at Eden (Auckland). Looking ahead, Oceania
has resource consents in place for 75% of its development pipeline comprising
approximately 2,000 units and care suites.
"Oceania is well positioned to leverage its established platform, with
gearing under 25% as at 31 March 2021. We were delighted with the strong
support from our existing and new shareholders for our highly successful and
oversubscribed $100.0m capital raise, comprising of a $80.0m placement and a
$20.0m retail offer" said Mr Pattison. Oceania has utilised the proceeds of
the capital raise to acquire Waterford (Hobsonville Point, Auckland), a
retirement village comprising 64 independent living villas and 36 independent
living apartments, and our leasehold site in Franklin (Auckland), together
with adjacent bare land.
Oceania has further invested in clinical training and development this year
as part of its commitment to provide career development for its staff.
Oceania remains focused on delivering outstanding clinical care to its
residents. Clinical leadership and education are key to the delivery of
quality care, improving overall skill levels and surveillance abilities.
Oceania Chair Liz Coutts advises the Board declared a final dividend of 2.1
cents per share (unimputed), bringing the total dividend for the 10 month
period to 31 March 2021 to 3.4 cents per share (unimputed). The record date
for the dividend is 8 June 2021 and the payment date is 22 June 2021. The
Dividend Reinvestment Plan will apply to the dividend payable on 22 June 2021
at a discount of 2.5% to the volume weighted average price of shares sold on
the NZX Main Board over the period of the five trading days starting on 4
June 2021.
ENDS
For all enquiries, please email investor@oceaniahealthcare.co.nz or phone
0800 333 688
End CA:00372535 For:OCA Type:FLLYR Time:2021-05-21 08:30:39
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