Shares of Japara Healthcare Ltd (ASX: JHC) surged another 6.9% this morning following the release of its impressive interim results. The stock has now risen more than 44% since bottoming out at $1.82 late last month.
So What: Japara Healthcare, which listed on the ASX in April 2014, is an aged care provider, operating 39 facilities across Australia. Given Australia's growing and ageing population, Japara, along with rivals Regis Healthcare Ltd (ASX: REG) and Estia Health Ltd (ASX: EHE), is in an excellent position to benefit over the long term.
For the six-months ended 31 December 2014, Japara Healthcare reported a 13.8% lift in revenues, which was driven by an improvement in average occupancy as well as an increase in revenue per resident per day. This, together with disciplined cost management, provided a huge boost for pro-forma EBITDA (earnings before interest, tax, depreciation and amortisation) which hit $25.5 million, representing a 28.1% lift on the year-ago period.
Here are some of the other highlights from the report:
- Net profit after tax (NPAT) of $15.8 million
- Earnings per share (EPS) of 6.0 cents per share
- Interim dividend of 5.5 cents per share
- Average occupancy of 94.4% (up from 93.2% on the prior corresponding period)
- Net cash inflows from Refundable Accommodation Deposits (RADs) of $45 million
- Full-year EBITDA guidance of $50.3 million confirmed
Now What: In its report it said: "Aged care industry fundamentals remain favourable, with an estimated 80,000 additional residential aged care places required by 2022, requiring up to $25 billion of investment in the sector."
As one of the Australia's largest players in the aged care industry, Japara is in an excellent position to benefit and could make for a superb buy today. Another top growth stock you NEED to know about
