Workflow
Capital Light Growth
icon
Search documents
Rite Aid(RAD) - 2025 FY - Earnings Call Transcript
2025-08-06 23:30
Financial Data and Key Metrics Changes - The company reported an underlying EBITDA of $20 million for FY '25, with operating cash flow also at $20 million and reduced debt levels to $67.7 million [23][34] - The total FY '25 dividend was $1.45 per share, representing a gross fully imputed dividend of $2.01 per share, which is 47% of AFFO, aligning with the target payout ratio of 40% to 70% [21][34] Business Line Data and Key Metrics Changes - Radius Care operates 24 aged care homes and four retirement villages, focusing on high acuity aged residential care and health services [12][13] - The company acquired the 109-bed St. Elisa care home in Christchurch for just under $1.1 million, expected to contribute to earnings from the second half of FY '26 [14][15] - CBIZ Catering Limited, acquired in October 2024, contributed $4.1 million in revenue and $500,000 in EBITDA for the period from October 2024 to March 2025 [15][16] Market Data and Key Metrics Changes - Occupancy rates are currently over 95%, with the latest figure at 95.8% [13][32] - The company has expanded into in-home care services, addressing the needs of New Zealand's aging population [17] Company Strategy and Development Direction - The company is in growth mode, focusing on capital light acquisitions, revenue diversification, and extending home opportunities [14][20] - The updated capital management framework aims to support reinvestment in core operating assets while maintaining sustainable dividend growth [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for growth across key financial metrics in FY '26, including underlying EBITDA and AFFO [21][35] - The company anticipates strong trading performance, with an upgraded guidance for underlying EBITDA in the first half of FY '26 to be between $14 million and $16 million [33] Other Important Information - The company has a strong focus on staff training and well-being, with a Net Promoter Score of 74 for facility managers, indicating high employee engagement [26][28] - The company has developed RadPro, an operational template that supports resident-centric decision-making and continuous improvement [18][39] Q&A Session Summary Question: Can you provide more details on RadPro and its development? - RadPro is the operating system developed over 21 years, encompassing all aspects of operations, including staff education and efficiency tools. It is now being expanded into home care services and has potential for marketing outside New Zealand [38][40]