Regional Health Properties, Inc. (RHE) stock prices soared by 31.4% during early market hours on May 7th 2021, bringing the price per share up to USD$19.68 for a strong start to the trading day.
Rent Collection Report Improvement
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RHE reported as of December 31st 2020 that it had successfully collected 80% of contractual cash that was hitherto outstanding for the fourth quarter of 2020. The company also secured 82% of the cash it was due over the previous 12 months ended December 31st 2020. The start of April 2021 saw the company having collected 91% of its outstanding contractual cash due for the fiscal year 2020, as well as all of the expected contractual rent for the fiscal year 2021 until the end of March.
Changes in Operator for Georgia Facilities
Two separate facilities in Georgia that are under a single operator also had their leases terminated as per an earlier announcement from RHE. One of the facilities was subsequently transitioned over to Empire Care Centers, who would serve as the new operator. With the other facility having been leased out to Vero Health Care, the company has reporting strong preliminary operating results from January and February, reflecting the success of the decision to terminate the leases.
Rent Revenue Reports
Total rent revenues for the fourth quarter of 2020 were down to USD$3.4 million from the USD$4.3 million reported in Q4 of 2019, representing a 20.2% year-over-year decrease. Total rent revenues were also down, having suffered by 14.3% year-over-year for the 12 month period ended December 31st 2020 compared to the previous year period, which reported USD$19 million.
Offsetting Further Revenue Loss
The significant difference is primarily attributable to the termination of two subleases in Q4 2020 of two skilled nursing facilities. This costly transition was partially offset by the sale of four of the company’s facilities in Q3 2019, as well as the disposition of two facilities the company subleased “Omega Disposition” in Q1 2019.
Solid Liquidity Position
As of December 31st 2020, RHE reported having cash that amounted to USD$4.2 million, down marginally from the USD$4.4 million reported as of December 31st 2019. The company’s restricted cash came out to USD$3.3 million as of December 31st 2020, as compared to USD$3.7 million reported in 2019. The company’s outstanding total debt was reported at USD$54.4 million as of December 31st 2020, compared to the USD$55.4 million reported a year earlier.
Future Outlook for RHE
The onset of the global Covid-19 pandemic devastated entire economies and RHE was particularly affected by changes in consumer behaviors and government regulations during the year of coronavirus. The company is hopeful for unprecedented growth in a post-pandemic economy as it sets the stage for a lucrative fiscal year 2021, wherein it can leverage its solid liquidity position and resources to maintain the skyrocketing gains in RHE stock price
