The Oceania Healthcare Ltd (ASX: OCA) share price is edging lower today, down 1.5% trading at $1.25 at the time of writing.
Below we look at the latest results from the aged care facilities company, covering the 10-month period ending 31 March.
Why a 10-month reporting period this year? Because Oceania changed its balance date from 31 May to 31 March.
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What results did Oceania report?
Oceania's share price is moving lower, despite the company reporting an 8% increase in unaudited underlying earnings before interest, tax, depreciation and amortisation (EBITDA).
Unaudited underlying EBITDA came in at $56.2 million, up from $52.1 million in the previous corresponding 10-month period.
The company also reported a 26% increase in sales volumes at its independent living apartments, villas and its care suites. Despite the COVID-19 headwinds, occupancy levels increased to 92.4%, up from 91.7% on the prior corresponding period.
During the 10-month reporting period, Oceania completed 217 units and care suites. The valuation of its total assets increased 22% to $1.9 billion. The company pointed to improved valuations following the initial COVID-related downgrades, as well as capital expenditures, for driving the increase.
Operating cash flow slipped to $96.0 million for the 10-month period, down from $99.4 million for the 12 months to 31 May 2020.
Oceania also completed a $100 million capital raise during the reported period, with a $20 million retail offer and an $80 million placement.
Management commentary
Oceania chair Liz Coutts advised that the board had declared a final dividend of 2.1 cents per share, unfranked. The record date is 8 June, and the dividend will be paid on 22 June. The company advised its dividend reinvestment plan will apply.
Commenting on the past 10 months of operations and the capital raise, Oceania's CEO Brent Pattison said:
We increased our investment in the business, demonstrating our commitment to building an even better future for Oceania, our residents, their families and our staff…
Oceania is well positioned to leverage its established platform, with gearing under 25% as at 31 March 2021. We were delighted with the strong support from our existing and new shareholders for our highly successful and oversubscribed $100.0 million capital raise, comprising of a $80.0m placement and a $20.0m retail offer.
Oceania said it would use the money from the capital raise to acquire Waterford at Hobsonville Point in Auckland, New Zealand. Waterford is "a retirement village comprising 64 independent living villas and 36 independent living apartments, and our leasehold site in Franklin (Auckland), together with adjacent bare land".
Oceania share price snapshot
Oceania shares have gained 68% over the past 12 months. By comparison, the All Ordinaries Index (ASX: XAO) is up 29% since this time last year.
So far in 2021, however, the Oceania share price has headed in the other direction and is currently down 4%.
