Financial Data and Key Metrics Changes - Revenue from services increased to $1,161 million, up 15% from the prior corresponding period [16] - Underlying EBITDA rose to $125.8 million, a 17% increase [16] - Underlying net profit after tax increased by 37% to $53.4 million [16] - Net operating cash flow was $306.1 million, up 21% [16] - The company ended the year with a net cash position of $192.5 million, a 197% increase from the prior year [26] Business Line Data and Key Metrics Changes - Average occupancy in mature homes increased to 95.6%, up from 94.1% in the prior period [17] - Total average care minutes per resident per day increased from 210.5 minutes to 226.7 minutes [17][23] - Staff costs increased by $113 million or 15%, driven by additional direct care hours and wage increases [23] Market Data and Key Metrics Changes - 26.5% of Australians aged 85 and over accessed residential aged care during FY24 [6] - An estimated 9,300 net new beds are needed each year for the next 20 years to meet demand [6] - Only 6,546 net new beds were added across the four years to FY24, indicating a supply shortfall [6] Company Strategy and Development Direction - The company aims to reach a target of 10,000 residential aged care beds by FY28, up from approximately 7,600 beds [46] - The strategy includes disciplined acquisitions, greenfield and brownfield developments, and refurbishment of existing homes [40][46] - The company plans to open two to three greenfield developments per year [7][36] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of the New Aged Care Act, which is expected to commence on 01/2025, and its implications for funding and care standards [12][14] - The company is well-positioned to meet the increasing demand for aged care services due to demographic trends and government support [7][56] - Management expressed confidence in the value of current service packages and the ability to adapt to changes in the regulatory environment [59] Other Important Information - The company completed the acquisition of four premium homes from Rockpool, adding 600 beds to its portfolio [3][38] - The average incoming room price increased by over 12% during the year, reflecting adjustments to the new maximum rates [31][62] - The company has a robust governance structure with a majority independent board and established liquidity management policies [14] Q&A Session Summary Question: Transition to health from extra services - Management expressed confidence in the value of current packages and plans to transition most services into bundles while ensuring the value exceeds the price [59][60] Question: Expectations for RAD prices - Management noted that the recent increase in RAD prices was a correction after a long period of stagnation, with expectations for mid to high single-digit growth in the coming year [61][64] Question: Occupancy expectations for FY26 - Management indicated that while they aim for occupancy above 95%, achieving 100% is not feasible due to operational constraints [68][69] Question: Staff expenses as a percentage of revenue - Management clarified that staff expenses are expected to increase slightly in FY26, influenced by government funding decisions [70][71] Question: CapEx expectations for FY26 - Management projected CapEx to be around $100 million for FY26, reflecting ongoing investments in greenfield developments and refurbishments [72] Question: Outlook for FY26 and RAD retention - Management indicated that while base business EBITDA margins may remain flat, RAD retention will be crucial for growth [74][77] Question: Resident profile and RAD penetration - Management expects the resident profile to remain stable, with potential increases in RAD-paying residents due to recent acquisitions [79]