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.

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%.

The post What's going on with the Oceania (ASX:OCA) share price today? appeared first on The Motley Fool Australia.

The Oceania Healthcare Ltd (ASX: OCA) share price is not having a great day today. Oceania shares are down 0.4% to $1.23 a share at the time of writing. Comparatively underperforming the S&P/ASX 200 Index (ASX: XJO), which is up 0.31% at the time of writing.

The current Oceania share price means that shares are now down 18% since 16 February. As well as 5.4% year to date.

Why might Oceania Healthcare shares be falling today?

Well, it's been a dramatic week for this ASX healthcare share. On Tuesday morning, Oceania shares were placed in a trading halt at the request of the company. The catalyst for this halt was a proposed NZ$100 million capital raising program. As we reported at the time, Oceania was hoping to raise NZ$80 million via a fully underwritten placement from institutional investors. In addition to NZ$20 million through a non-underwritten retail offer. The possibility of an oversubscription being accepted.

The primary purpose of this capital raise was to fund an acquisition. Namely, the Waterford on Hobsonville Point retirement village in Auckland, New Zealand.

As such, Oceania shares were suspended from trading on Tuesday and returned to the markets yesterday. We also heard from the company yesterday about the success of its institutional placement. According to Oceania, the institutional placement was fully subscribed at a price of NZ$1.30 a share. According to the company, the offer was "strongly supported by existing institutional shareholders and also attracted significant bids from other institutional investors".

Share purchase plan opens

But we also got an ASX announcement today outlining what the retail offer has in store for ordinary investors. The retail offer will be available for all existing shareholders as of 22 March. These shareholders will be entitled to apply for up to NZ$50,000 worth of new shares. The price will be the lower of either NZ$1.30 a share (or approximately $1.19 on current exchange rates), or "a 2.5% discount to the five-day volume-weighted average price of Oceania Healthcare Shares traded on NZX [the New Zealand Stock Exchange] during the five NZX trading days up to, and including, the Closing Day [12 April 2021]".

Investors will receive any shares applied for on "on or about" Friday 16 April.

Thus, it's understandable that the Oceania Healthcare share price is falling today. Why would existing investors buy shares on the ASX at today's price of ~$1.23 when they can apply for more shares at roughly $1.19? This is the likely reason behind the Oceania Healthcare share price weakness today.

The post Here's why the Oceania Healthcare (ASX:OCA) share price is falling today appeared first on The Motley Fool Australia.

The Oceania Healthcare Ltd (ASX: OCA) share price won't be going anywhere today after the company's shares were placed in a trading halt. This comes after Oceania unveiled plans for its latest capital raise.

Why is the Oceania share price in a trading halt?

Oceania today announced plans to raise ~NZ$100 million to fund its latest acquisition plans. The company will seek to raise NZ$80 million via a fully underwritten placement and a NZ$20 million non-underwritten retail offer. Oceaniea will have the ability to accept oversubscriptions at its discretion.

The funds will be used in the acquisition of a premium retirement village, Waterford on Hobsonville Point, in Auckland, New Zealand. Oceania is also planning to use the money in its existing leased facility and adjacent development land in Franklin.

The Oceania share price will be one to watch when the company's shares return to trade early next week.

Oceania said in today's release that the funds will provide additional financial capacity for its future growth and reduce corporate debt outstanding while other growth opportunities are assessed.

The Kiwi healthcare group's shares will enter a trading halt today with plans to re-commence trading on Monday 29 March.

Oceania's placement will be fully underwritten by Jarden Partners Limited and Macquarie Securities (NZ) Limited. The placement is underwritten at a fixed price of NZ$1.30 per share – a 6.5% discount to the last close price of NZ$1.39 per share on 22 March.

The Waterford on Hobsonville Point site comprises 64 independent living villas and 36 independent living apartments. Oceania's acquisition is expected to settle in April or May 2021 and remains conditional on relevant approvals.

What else has been happening for Oceania?

The Oceania share price climbed higher on Monday after the company announced its new CEO. Former CFO, Brent Sutton, has been appointed the group's new CEO effective immediately.

The news saw the Kiwi healthcare share edge higher yesterday after former CEO Earl Gasparich was poached by Metlifecare Limited earlier this month.

The post Why the Oceania (ASX:OCA) share price is frozen appeared first on The Motley Fool Australia.

The Oceania Healthcare Ltd (ASX: OCA) share price has risen slightly today after the New Zealand healthcare provider appointed former CFO, Brent Sutton, as its new CEO effective immediately.

Sutton only joined Oceania in January 2020 but previously worked with the company during its IPO in 2017. Sutton is a former investment banker and qualified chartered accountant and has led mergers, acquisitions, takeovers and capital market transactions.

Oceania Chair, Liz Coutts, said that Sutton has already had a major impact on the company.

"Brent has made a significant contribution to both the strategic direction and the performance of Oceania Healthcare over the last 15 months in his role as Chief Financial Officer. He has the full trust of the board and the executive leadership team, and has built a strong relationship with the investment community," she said. 

Oceania share price grows after COVID downturn, CEO poaching

Sutton's appointment came after former Oceania CEO Earl Gasparich was poached by rival retirement village provider Metlifecare Limited this month.

Sutton said he was aiming to transform New Zealand's retirement sector,  Oceania caters for approximately 3,500 residents across the country.

"I have been privileged to be part of the success of the company and am very excited to have the opportunity to lead our highly skilled team into the next stage of growth.

"I am passionate about transforming the retirement and aged care experience in New Zealand, putting our residents at the heart of all that we do."

The Oceania share price has been a reasonably steady grower over the past five years excluding a swift downturn at the height of the COVID-19 pandemic in March 2020.

In the past 12 months, Oceania shares have risen from a low of 51 cents to $1.41 today.

The Oceania share price was up 0.71% after the announcement and has risen more than 90% year-to-date. The company is listed on the ASX and New Zealand's NZX, with a market capitalisation of AU$853 million. 

The post Oceania (ASX:OCA) share price rises on new CEO announcement appeared first on The Motley Fool Australia.

The Oceania Healthcare Ltd (ASX: OCA) share price could be in for a fall after the company reported a 41% decline in its full-year net profit after tax (NPAT) this morning.

What did Oceania Healthcare announce this morning?

Oceania reported revenue from continuing operations of $189.4 million, a 3% increase on the prior corresponding period (pcp) for the Aussie healthcare provider.

However, underlying NPAT from continuing operations fell 1.8% to $49.7 million while total NPAT fell to $45.4 million –  down a whopping 41% on 2018 full-year numbers.

Total comprehensive income for the year totalled $99.8 million, a 22% increase on 2018 figures in what was a mixed result for Oceania overall.

Oceania also announced a full-year gross dividend of NZ$0.026 per share with a dividend reinvestment plan (DRP) discount of 2.5% for its shareholders.

How does the result stack up against last year?

Oceania Healthcare's full-year 2019 results are relatively disappointing compared to 2018 numbers, which saw the company's profit soar 77% to $72 million in the last financial year.

All of the New Zealand aged care provider's financial metrics saw increases last year in a breakthrough year for the group, but it wasn't to be this year, with the 41% plunge in NPAT.

The company also saw one of its major shareholders sell a 15.6% stake in September 2018 as Macquarie Group Ltd (ASX: MQG) sold its shares for $102.6 million after restrictions on its sale were lifted in July.

How has the Oceania share price performed in 2019?

There is little doubt that the Oceania share price has been an underperformer so far this year, with the company's share price climbing just 4% since the start of January.

While the Oceania share price remains in the black, its performance pales in comparison to the S&P/ASX 200 (INDEXASX: XJO) index, which has gained 21.9% since the start of the year in the best start to the year since 1991.

The New Zealand-based healthcare group currently boasts a market cap of $640.8 million and its current $1.05 per share valuation is not too far shy of its $1.14 per share, meaning momentum could be a factor that carries the share price higher.

The post Why the Oceania Healthcare share price could be set for a fall appeared first on The Motley Fool Australia.