Estia Health Ltd (ASX: EHE) shares popped this morning following the company's release of its FY21 half-year (1H21) results. In the first hour of trade, the Estia share price jumped nearly 5% to an intraday high of $2.13. However, it's been fluctuating since and is currently trading at $2.05, up 0.99% for the day so far.
Let's take a look at what the aged care services provider reported.
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What did Estia Health report?
The Estia share price is in positive territory today despite the company reporting a $5.3 million loss for 1H21 compared to the $14.3 million profit it achieved at the end of 1H20.
Revenues totalled $322.5 million for the half, 2% higher than the $316.1 million reported for the prior corresponding half.
Estia Health noted the impact that coronavirus had on the business during the period. It advised that the pandemic added approximately $20.1 million in additional costs over 1H21.
The extra spending was attributed to additional staff and workforce costs, infection prevention and control (IPC), personal protective equipment (PPE), cleaning, waste disposal, and staff and family welfare support.
The company received $8.5 million in temporary government funding support during the period to help it manage the impacts of COVID-19.
Estia's earnings per share (EPS) dropped from 5.49 cents in 1H20 to negative 2.02 cents for the six months ended 31 December 2020.
The aged care services provider posted net liquidity of $240 million at the end of 1H21.
No interim dividend was declared.
CEO comments
Estia Chief Executive Ian Thorley talked about how COVID-19 affected operations during 1H21. He said:
The second wave COVID-19 outbreak in Victoria from July to October tested the sector in a way never previously experienced and we again thank our residents, their families and employees for their ongoing support during this difficult time…
It is evident that the impact of COVID-19 on the entire Australian economy and community will continue to be experienced for the foreseeable future, at least until the benefits of the vaccine program are evident.
Thorley also mentioned that Estia Health is well-positioned to respond to future COVID-19 outbreaks following the increased training and process improvements carried out by the business during the half.
Estia Health share price snapshot
The Estia Health share price has lost nearly 11% over the past year period but has rallied more than 27% over the last six months.
Based on the current share price, Estia Health has a market capitalisation of $530.4 million and 261.3 million shares outstanding.
