Regional Health Properties Reports Second Quarter & Six Month 2025 Financial Results

Core Viewpoint - Regional Health Properties, Inc. has reported its financial results for the second quarter of 2025, highlighting a strategic transition towards direct operation of facilities and the completion of a transformative merger with SunLink Health Systems, Inc. [2][5] Financial Results for Q2 2025 - Total revenue for the second quarter of 2025 was $10.1 million, with a GAAP net loss of $1.4 million and an EBITDA loss of $406,000. Adjusted EBITDA was reported at $456,000 [3][19]. - For the six months ended June 30, 2025, total revenue reached $17.2 million, with an Adjusted EBITDA of $964,000 [7]. Business Highlights - The company now directly operates 50% of its facilities, which enhances control and alignment with strategic objectives [2]. - The average occupancy rate in June 2025 was 66.8%, the highest in over a year, and the Meadowood facility's memory care unit maintained a stabilization rate of 93% occupancy [7]. - A management contract was entered into with CJM Advisors to manage facilities in South Carolina and Georgia [7]. Merger Details - The merger with SunLink was completed on August 14, 2025, with each five shares of SunLink common stock converted into 1.1330 shares of Regional common stock and one share of Regional Series D preferred stock [6][5]. - The combined company will continue to operate under the name Regional Health Properties, Inc. and will be led by Brent S. Morrison as President and CEO [7][8]. Balance Sheet and Liquidity - As of June 30, 2025, the company had $49.9 million in net assets, with a weighted-average annual interest rate of 5.0% and a weighted-average maturity of approximately 16 years [4][16]. - Net cash provided by operating activities for the six months ended June 30, 2025, was $805,000 [4].