The Estia Health Ltd (ASX: EHE) share price jumped 4.2% today to close at $1.48 after the company released its full year financial results to 30 June 2020.
Estia Health operates aged care homes in Australia. It listed on the ASX in 2014.
In July, Estia Health announced it was working with authorities in relation to outbreaks of coronavirus at its homes in Heidelberg West and Ardeer, Victoria.
How did Estia Health shape up this year?
Estia Health reported a loss after tax of $116.9 million in FY20. This was after a non-cash impairment charge of $144.6 million. The company said the loss reflected funding and financing challenges faced by the residential aged care sector.
The company reported profit after tax before the non-cash impairment was $25.2 million, which represented a 39.5% decline compared to the 2019 financial year.
Earnings before interest, tax, depreciation and amortisation (EBITDA) were $79.3 million, down 18.2% on 2019 figures. According to the company, it had cash conversion of greater than 100% of EBITDA.
Estia Health reported average occupancy for FY20 was 93.2%. The company had occupancy of 92.7% at 30 June. Its new 110-bed aged care facility at Southport in Queensland reached 100% occupancy in February 2020 and its new home in Maroochydore, Queensland, reached 81.7% occupancy this month.
The company invested $80.6 million of capital during the year in new homes, refurbishments, sustainability, asset replacement and improvements.
Coronavirus challenges
At 30 June 2020, Estia Health had net debt of $99.4 million, representing 1.3x EBITDA. It had net liquidity of $226.6 million available at 30 June.
The board chose not to declare a final dividend for FY20 as a result of the net loss for the year and “as a prudent measure in uncertain times”.
Estia Health CEO Ian Thorley said:
COVID-19 will remain a challenge for the foreseeable future. We believe that by continuing to work closely with State and Federal authorities and regulators we will get through this difficult period by providing the best possible care to our residents and support for our staff.
About the Estia Health share price
The Estia Health share price has climbed 66.67% from its 52-week low of 90 cents. However, it is down 37.76% since the beginning of 2020 and down 42.97% since this time last year. The share price closed at $1.48 today after climbing 4.2%.
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