Half Year 2025 Regis Healthcare Ltd Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: David Low - J.P. Morgan Securities Australia Ltd. - Analyst : Thanks very much for taking my questions. Just if we could start with minutes of care and just a quick update or a quick understanding of where Regis is versus what's required, or how much is there still to go, please?

Question: David Low - J.P. Morgan Securities Australia Ltd. - Analyst : All right. Perfect. That helps. Thanks very much. So it doesn't sound like there's a big uplift to come from that. And then Rick, if I could get you to talk about the Fair Work increases, nursing, yeah -- what we should expect with wage increases there and therefore what's required with AN-ACC in March.

Question: David Low - J.P. Morgan Securities Australia Ltd. - Analyst : All right, thank you. So that's 10 million per annum potentially.

Question: David Low - J.P. Morgan Securities Australia Ltd. - Analyst : Yeah, got it. All right, look, last one for me. So usually seasonal -- waiting to the second half, I know this is a bit unusual with the increase in October and versus the uplift in cost coming through a little later. How do we think about the seasonal -- how do you think about seasonality (multiple speakers)

Question: Tom Godfrey - Ord Minnett Ltd. - Analyst : Good morning, Linda and Rick. Thanks for taking my questions. Just first one, can I just pick up on how well Camberwell's ramping up and the two new sites in VIC? Has there been any changes or has that given you more confidence around the development pipeline? Has there been any changes to your buy versus build sort of capital allocation thinking, and maybe just in the context of how strong the balance sheet is, what we should expect for the year ahead?

Question: Tom Godfrey - Ord Minnett Ltd. - Analyst : Thanks Linda. And the closure of Bulimba, are there more of these sites that you're looking at over the next sort of 12 to 18 months where you could actually sort of recycle capital and close at a lower occupancy or lower quality? Should we expect more of that or you sort of threw that tail now?

Question: Tom Godfrey - Ord Minnett Ltd. - Analyst : Right. And just last one from me, picking up on Rick's comments around the increase in the soft cap on Jan 1 this year. Can you maybe give us a bit of color in terms of what you're seeing in the market around RAD price increases and competitors? Should we be expecting high-single-digit increases or just any sort of way to frame that for us?

Question: David Stanton - Jefferies Australia Pty. Ltd. - Analyst : Thanks very much for taking my questions. Firstly, perhaps we could talk to give some color around regarding expected occupancy for second half FY25, given the exit rates so high. What should we be thinking really for second half '25 so we can plug that into our models? Thanks.

Question: David Stanton - Jefferies Australia Pty. Ltd. - Analyst : Understood. And I think you're intimating from the government revenue of $327.70 sounds like it won't be flat in the second half. Approximately what should we be looking at for that number in the second half? Just to follow up on, I guess, on David's question.

Question: David Stanton - Jefferies Australia Pty. Ltd. - Analyst : Understood. And then finally, perhaps you could talk to -- give us a bit more color about CapEx that you expect for the full year, please.

Question: Craig Wong-Pan - RBC Capital Markets (Australia) - Analyst : Thanks. I just wanted to understand what the current market is for recruiting staff. You've been able to lift your care minutes and with this as backdrop around nurses in general, could you just talk about what the market is like now?

Question: Craig Wong-Pan - RBC Capital Markets (Australia) - Analyst : And then just wanted to touch on the new liquidity rules. I'm sorry if I've missed this on the call, but if that was to be implemented today, does that impact how much cash you have to carry, or is the amount of cash that you've got now on the balance sheet already meet that 35 and 10 rule?

Question: Craig Wong-Pan - RBC Capital Markets (Australia) - Analyst : Okay. And then so I just wanted to touch on sort of EBITDA and the expectations for the second half. The government, you said, has committed to funding those higher fair work nurse increases. Is that from March 1, is that to recuperate all of the increase, or would that just be pro rata so that the two-month's difference, where you're incurring the additional wage costs from nurses, there is that kind of impact where you'll get (multiple speakers)

Question: Steven Wheen - Jarden Australia Pty Limited - Analyst : Just wanted to touch on the higher everyday living allowance that you'll be able to get from residents from July 1. What sort of proportion of your facilities would already qualify for providing those services? And is that a net benefit to you, given what you're currently receiving on that front from residents? Just trying to understand what that -- how that phases across the two financial years.

Question: Steven Wheen - Jarden Australia Pty Limited - Analyst : Okay. But, obviously, that's an opportunity for you. And to actually qualify for that opportunity, does it require a significant investment or trying to understand what sort of investment in CapEx would be required to achieve that?

Question: Steven Wheen - Jarden Australia Pty Limited - Analyst : Okay, understood. Second question I had was, just trying to understand the benefit of the maximum RAD price per room lifting to 750. Is the benefit really just -- I mean, you've always been able to apply for a higher, rate or RAD for rooms. But is the benefit of that cap lifting, is it just the speed with which you can do that now?

Question: Steven Wheen - Jarden Australia Pty Limited - Analyst : Okay. Understood. Last question is just with regards to the 11 homes that are struggling to meet those care minutes, just wondering whether or not they represent opportunities for you. And then if you could just also just touch on your star rating, is there anything that's sort of dragging that down over the last two quarters?

Question: Steven Wheen - Jarden Australia Pty Limited - Analyst : That's right.

Question: Steven Wheen - Jarden Australia Pty Limited - Analyst : Just whether or not they represent opportunities for you if they're struggling to actually, to be compliant, whether or not they are sort of something that would be of interest to you as part of your M&A profile.