Latest news with #equityraise
Yahoo
29-05-2025
- Business
- Yahoo
Ryman Healthcare Ltd (RHCGF) (FY25) Earnings Call Highlights: Record Completions and Strategic ...
Units and Beds Completed: 950 units and beds completed, the highest ever for Ryman. Cost Savings: $23 million in costs removed in the second half of FY25, with a target to double by the end of the financial year. Free Cash Flow: Improved free cash flow reported. Gross Resale Margin: Almost $200,000 per unit in average gross resale margin. Sales Volumes: Sales volumes and pricing largely flat year on year. Occupancy: Stable occupancy in mature villages; drop in serviced apartments due to added units. Debt Position: Drawn debt at $1.67 billion with significant headroom of over $500 million. Equity Raise: $1 billion equity raise completed. Impairment: $148 million impairment recognized due to construction cost pressures. Net Tangible Assets Impact: Total impact of $576 million due to various changes. Interest Rate: Effective interest rate decreased to 6.2%. Cash Loss: $94 million cash loss, marking an improvement towards cash break-even. Warning! GuruFocus has detected 6 Warning Signs with RHCGF. Release Date: May 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Ryman Healthcare Ltd (RHCGF) achieved a significant operational reset, removing $23 million in costs in the second half of FY25, with plans to double this by the end of FY26. The company strengthened its balance sheet by raising capital, making it resilient to extended difficult market conditions. FY25 was a peak build year for Ryman Healthcare Ltd (RHCGF), with the highest ever number of units and beds completed at 950. Sales momentum improved in Q4 FY25 compared to prior periods, with strategies in place to enhance sales effectiveness. Ryman Healthcare Ltd (RHCGF) maintained stable occupancy in mature villages and delivered improved free cash flow. Sales volumes and pricing remained largely flat year on year, indicating challenges in market conditions. The company experienced a drop in occupancy for serviced apartments due to added units in FY25. Ryman Healthcare Ltd (RHCGF) faced significant impairments and restatements in its financial reporting, impacting net tangible assets. The transition to new contract terms, including a 40% increase in DMF levels, presents challenges in market acceptance. The company anticipates continued challenging market conditions, impacting sales in the first half of FY26. Q: Has the gross sales contracts moved into the 80% range on the two-year PCP, and how is May looking? A: Contracting is lumpy and can be impacted by seasonality and sales activities. We have seen ongoing improvement in the contracting trend against the Q4 metric of 75%, although it's still below the two-year average. We expect recovery to progress through the year, with sales weighted to the second half. Importantly, all sales are at a 40% higher DMF, providing significant future value for Ryman. - Naomi James, CEO Q: Can you confirm that cancellations are reasonably steady? A: Yes, we are not seeing any significant change around cancellations. - Naomi James, CEO Q: What is your expectation for pricing in mature villages, assuming the housing market remains broadly flat? A: Resale pricing is generally steady with limited HPI growth, but this varies across the portfolio. In villages with more resale stock, we ensure pricing aligns with the market, and in others with high occupancy and waitlists, we are increasing pricing based on market conditions. Our focus is on aligning pricing with market conditions in each village. - Naomi James, CEO Q: How are new potential residents responding to the new pricing structure with higher DMF and weekly fees? A: We are seeing acceptance of the 30% DMF level, which aligns with industry standards. The take-up is weighted towards the 30% level rather than the flexible 25% option. We continue to improve communication and training for our sales team to effectively present the new pricing structure. - Naomi James, CEO Q: What are you doing in terms of sales incentives compared to a year ago? A: We are targeting incentives based on competition and performance at a village level. Unlike a year ago, we now have a clear view of performance at each village and tailor incentives accordingly. This ensures we secure sales where needed without giving away value where it's not required. - Naomi James, CEO Q: When do you expect to be free cash flow positive? A: The outlook for cash flow depends on sales cadence and the speed of the cost-out program. We have seen a slowdown in negative cash drag and expect further improvements in FY26, benefiting from cost savings and lower interest costs post-equity raising. - Rob Woodgate, CFO Q: Why have you chosen to focus on the non-GAAP metric of core operating performance? A: The emphasis is to show performance against guidance metrics from the equity raise. The operating EBIT DAF metric allows us to look through accounting changes and focus on core operational performance. We aim to provide relevant metrics that underline operating performance with accounting noise set aside. - Rob Woodgate, CFO Q: Are there any plans to tweak the weekly fee approach or strategy? A: We continue to monitor market acceptance of the fixed versus flexible fee levels. We are seeing changes in industry practices, such as removing certain costs from fixed fees, and we aim to ensure our offering aligns with regional and village-level market conditions. - Naomi James, CEO Q: Can you provide more color on the goodwill write-downs and the risk of further write-downs? A: The goodwill write-down was larger than expected due to the difference between freehold going concern value and land/buildings value. We have thoroughly reviewed and tested this position, and do not expect further changes. We have drawn a line under the review and are transparent in our accounts. - Rob Woodgate, CFO Q: Are you forecasting a high tax burden with reduced new development and cost deductibility? A: No, we are not currently in a taxpaying position. - Rob Woodgate, CFO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. 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RNZ News
26-05-2025
- Business
- RNZ News
Metro Performance Glass posts $13.5 million full-year loss
Major glass manufacturer Metro Performance Glass slumped to another hefty loss, with revenue falling and debt increasing amid challenging trading conditions. Metro Performance Glass - Highbrook Business Park. Photo: SUPPLIED Key numbers for the 12 months ended March compared with a year ago: The company said its board was "actively pursuing an equity raise" in a bid to deliver certainty for the troubled business. Metroglass said the result reflected ongoing weakness in its Australian and New Zealand businesses. The company changed its board and business leadership last year amid the challenges, including replacing the former chief executive, Simon Mander. "While the market continues to be challenging in both Australia and New Zealand, this is an unsatisfactory result," Metroglass told the NZX. "We have implemented a number of changes designed to meaningfully transform the business, as we signalled last year, and have reduced costs in a number of areas which will see the full benefits flow through into FY2026." Metroglass expected the New Zealand market to stay flat in the year ending March 2026, but expected some benefits in Australia due to changes to energy efficiency rules in Victoria. It forecast revenue to rise by about 8 percent in 2026 to $232 million, and further growth in revenue in 2027 and 2028 to $243m and $254m respectively. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
