Radius care

[Basil]

How is it that they can earn $31K EBITDA per care bed and all the other retirement companies are bleating like lambs lost from their mothers that the Govt is not paying enough and their lackluster return its someone else's fault ?  All the others with their care looks like fools compared to RAD.

[ValueNZ]

How is it that they can earn $31K EBITDA per care bed and all the other retirement companies are bleating like lambs lost from their mothers that the Govt is not paying enough and their lackluster return its someone else's fault ?  All the others with their care looks like fools compared to RAD.

Because they bullshit their earnings.

EBITDAR

[Stockgathering]

How is it that they can earn $31K EBITDA per care bed and all the other retirement companies are bleating like lambs lost from their mothers that the Govt is not paying enough and their lackluster return its someone else's fault ?  All the others with their care looks like fools compared to RAD.

Yea, very much an outlier, as well none of the others are paying an imputed dividend. RAD pays and even increased their dividend AND bought some of their own share back. No cash flow problems with this company, very refreshing.

[Stockgathering]

Because they bullshit their earnings.

EBITDAR

ValueNZ, could you explain more? I must be missing something.

[Dolcile]

Must be making decent money because they are paying tax (unlike SUM, RYM etc) and therefore able to paying increasing fully imputed dividends

But Value I'm very curious to read your views?

[Shareguy]

Second half not as good. But yes a good result. They lease most of their building which may explain some of the difference in the care bed revenue?

[Buzz]

How is it that they can earn $31K EBITDA per care bed and all the other retirement companies are bleating like lambs lost from their mothers that the Govt is not paying enough and their lackluster return its someone else's fault ?  All the others with their care looks like fools compared to RAD.

Might it have something to do with targeting the much higher acquity care strategy and the corresponding much higher government funding per bed. Makes sense for an RV that has relatively low owned assets and runs a profitable niche care model, with higher turnover as well.

There is very little that is comparable though to the other listed RV's, their business models are quite different.

[Plata]

Pretty steady as she goes result really. H1 vs H2:
revenue $100 vs $102 mill (+2%)
expenses $93 vs $98 (+5%) - employee costs $59 vs $64 (+8%), depreciation/amortisation $5.7 vs $7.5 key contributors
The employee costs seem strong however may be due to recent growth not making it to revenue line yet as EBITDAR per bed still rose half to half and this is "adjusted" to account for the growth. An element of trust there to keep it clean.

They booked a $1.4 million depreciation charge on WIP care assets by the look of it too, which didnt exist in H1 and accounts for alot of the discrepency between halves. I'm wondering if they are just immediately depreciating some of the capex spend to refurb the recent acquisitions using those new accelerated depreciation rules? Occupancy is basically almost as high as you can get it now so any growth from H1 onwards is what should dicate the growth price premium. I had hoped H2 would be similar to H1 at the NPAT level, still good value at current price but not motivated to add at this point.