Third Age Health delivers solid Q1 with NPAT up 23%

Health

28 July 2023


Third Age Health delivers solid Q1 with NPAT up 23% and underlying NPATA up 37%

Third Age Health Services Limited (NZX:TAH) announces trading update for first quarter ended 30 June 2023.

Highlights include an unaudited increase in NPAT of 23% to $217k and an increase in underlying NPATA of
37% to $296k over the prior comparable period.

Please see the attached for more information.

Authorised for issue by:
John Fernandes
Chairman

For more information please contact:
Denice Bennett
Chief Financial Officer – Third Age Health
+64 21 765 303
deniceb@thirdagehealth.co.nz
About Third Age Health Third Age Health is the leader in providing quality health care services for older
people including those living in retirement villages, private hospitals, secure dementia units as well as in
communities across New Zealand. A dedicated Third Age Health clinical team provides onsite clinics,
rostered rounds and after hours on-call healthcare services aimed at supporting the health and wellbeing of
older people to improve quality of life. As well as providing clinical services for over 50 aged care facilities
throughout New Zealand, Third Age Health owns several general practices providing primary healthcare to
their local community.
www.thirdagehealth.co.nz

---

Third Age Health delivers 1Q Underlying NPATA
1
of $296k up 37% and
24% on 1Q FY23 and 4Q FY23 respectively.
Q1 FY24 Business Highlights - Unaudited Financial Performance

• 61 ARC facilities contracted at the end of Q1:
o The number of ARC patients we provide care to has increased by 15% in Q1 (to 3,762
residents) compared to the PCP
2
; 10.7% of total ARC population across NZ currently
supported by TAH
3
.
o Grew our combined enrolled patient population across both ARC and general
practice for Q1 by 71% when compared to PCP with 5% organic growth.
• At the end of Q1 TAH started a new general practice service alongside taking over the ARC
service at Selwyn Village, one of Auckland's largest retirement and Aged Residential Care
facilities. The general practice will operate a new older people’s health service that will set
the standard for primary care in retirement villages across NZ.
• Our ARC facility Net Promoter Score from 12 months ago has lifted from +9 to +55, a 5x
improvement.
• Repaid debt of $676k as of 30 June which will result in an estimated $60k p.a. reduction in
annualised interest expense.
• Other cost savings initiatives underway expected to result in an estimated annualised fixed
cost reduction of $250k p.a. from Q3 onwards.
• Clinical Team (Practitioners and other health professionals): We ended Q1 with 71 clinical
team members up 31 (78% increase) compared to PCP and 3 up (4% increase) when
compared to the previous Quarter, Q4 FY23.
• Q1 vs Q4 FY23: Operational changes in EastMed clinic alongside ongoing continuous
improvements in our other clinics and ARC have lifted earnings from Q4 FY23, alongside a
strong pipeline of new ARC facility service starts for Q2 and beyond.

Q1 FY24 Financial Highlights (Unaudited)
• Group revenue up 66% over Q1 FY23 to $3,526k and 3% over Q4 FY23 (Q1 FY23: $2,127k,
Q4 FY23: $3,425)
• Revenue from ARC core business up 42% over Q1 FY23 to $1,243k and 7% over Q4 FY23 (Q1
FY23: $827k, Q4 FY23 $1,166k).
• Organic group revenue up 23% over Q1 FY23 to $2,626 (Q1 FY23: $2,127, Q4 FY23: $1,780)
•
4
Underlying NPBTA up 30% over Q1 FY23 at $380k and 16% over Q4 FY23 (Q1 FY23: $293k.
Q4 FY23: $327k)
• Underlying NPATA (assuming tax at 28% for Q1) up 37% over Q1 FY23 to $296k and 24% over
Q4 FY23 (Q1 FY23: $216k, Q4 FY23: $239k)

1
Underlying NPATA is adjusted for (i) non-cash amortisation charges arising as a result of purchase accounting rules (ii) non-
recurring provision related to the TADH loan and (iii) non-cash debt revaluation arising as a result of accounting rules post a
loan restructure. The loan was restructured during FY23 to fix interest rates to protect against ongoing increases in rates.
2
PCP refers to prior comparable period.
3
NZACA ARC Industry Profile 2021-22 https://berl.co.nz/our-mahi/aged-residential-care-industry-profile-2021-22
4
Underlying NPBTA is adjusted for (i) non-cash amortisation charges arising as a result of purchase accounting rules (ii) non-
recurring provision related to the TADH loan and (iii) non-cash debt revaluation arising as a result of accounting rules post a
loan restructure.

• Statutory NPAT (assuming tax at 28% for Q1) up 23% over Q1 FY23 to $217k and 323% over
Q4 FY23 (Q1 FY23: $176k, Q4 FY23: loss -$97K)
• Cash/Debt: Cash and cash equivalents decreased to $763k at the end of Q1FY24 (Q4 FY23:
$1,355k) – a reduction of $592k. The loan balance reduced to $1,655k at the end of the
quarter (Q4 FY23: $2,341k) with a repayment of $676k.



Financial Highlights (unaudited) $'000
Q1 FY24 Q1 FY23 Q1
change
Q4 FY23 Q4
change`
Revenue 3,526 2,127 +65.8% 3,425 +2.9%
Underlying EBIT 487 314 +55.1% 463 +5.2%
EBIT Margin 13.8% 14.8% -1.0% 13.5% +0.3%
Underlying NPBTA 380 293 +29.7% 327 +16.2%
Underlying NPBTA% 10.8% 13.8% -3.0% 9.5% +1.3%
Underlying NPATA 296 216 +37.0% 239 +23.8%
Underlying NPATA% 8.4% 10.2% -1.8% 7.0% +1.4%




Statutory NPAT
217 176 +23.3% -97
5
+323.7%
Statutory NPAT%
6.2% 8.3% -2.1% -2.8% +9.0%
Return on Equity (TTM)
27.5% 37.3% -9.8% 16.0% +11.5%
Return on Capital Employed (TTM)
17.4% 25.9% -8.5% 12.0% +5.4%




5
Q4 Statutory NPAT includes a write down of $233k for TADH loan.

Dividend Declaration
We are pleased to announce an 1Q fully imputed dividend per share of 1.62 cents, in line with our
dividend policy.

The board of directors of Third Age Health Services Limited has approved the release of this
document to the market.

About Third Age Health (NZX:TAH)
Third Age Health is New Zealand’s only specialised provider of general practice health care services
for older people living in retirement villages, private hospitals, secure dementia units as well as in
communities across New Zealand. A dedicated Third Age Health clinical team provides onsite clinics,
rostered rounds and after hours on-call healthcare services aimed at supporting the health and
wellbeing of older people to improve quality of life. As well as providing clinical services for over 60
aged care facilities throughout New Zealand, Third Age Health owns several general practices
providing quality primary healthcare to people of all ages.
www.thirdagehealth.co.nz