Reported First Quarter Revenue of
Generated Adjusted EBITDA from Operations of
Continued Execution of Integrated Healthcare Platform Strategy
First Quarter 2026 Financial Results
- Reported revenue of
$21.2 million , compared with$7.2 million for the first quarter of 2025 - Reported GAAP net loss of
$1.2 million , compared with GAAP net loss of$1.3 million for the first quarter of 2025 - Generated Adjusted EBITDA from operations of
$0.5 million , compared with$0.4 million for the first quarter of 2025 - Reported net loss attributable to common stockholders of
$0.29 per share, compared with$0.94 per share for the first quarter of 2025
First Quarter 2026 Business Highlights
Pharmacy Services revenue was$7.6 million following the addition of thePharmacy Services segment in connection with the SunLink merger- Patient care revenues increased to
$12.7 million , driven primarily by the transition of facilities to the Healthcare Services segment and higher census at our Glenvue facility - Portfolio occupancy was 73.2% at
March 31, 2026 vs. 67.7% atMarch 31, 2025 - Repurchased 30,232 shares of the Company’s 12.5% Series B Cumulative Redeemable Preferred Shares during the quarter at a discount to carrying value
- Continued to evaluate refinancing and liquidity alternatives, including potential refinancing of the Southland facility and other mortgage loans
Management Comments
Balance Sheet And Liquidity
As of
About
Important Cautions Regarding Forward-Looking Statements
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as “expects,” “intends,” “believes,” “anticipates,” “plans,” “likely,” “will,” “seeks,” “estimates” and variations of such words and similar expressions are intended to identify such forward-looking statements. This press release includes forward-looking statements that reflect the Company’s current views with respect to, among other things, its business, operations, financial performance, liquidity, capital resources, refinancing alternatives, facility operations, pharmacy operations, and future strategy.
Forward-looking statements, by their nature, involve estimates, projections, goals, forecasts and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those projected or contemplated by our forward-looking statements due to various factors, including, among others: the operating performance of our Healthcare Services and
| Company Contact |
| Chief Executive Officer & President |
| Tel (678) 368-4402 |
| Brent.morrison@regionalhealthproperties.com |
| STATEMENT OF OPERATIONS | ||||||||
| (in thousands) | ||||||||
| Three Months Ended March, 31 | ||||||||
| 2026 | 2025 | |||||||
| (Unaudited) | ||||||||
| Revenues: | ||||||||
| Patient care revenues | $ | 12,715 | $ | 5,642 | ||||
| Rental revenues | 860 | 1,548 | ||||||
| Pharmacy revenues | 7,587 | — | ||||||
| Total revenues | 21,162 | 7,190 | ||||||
| Expenses: | ||||||||
| Cost of goods sold | 4,492 | — | ||||||
| Patient care expense | 9,715 | 4,401 | ||||||
| Facility rent expense | 234 | 207 | ||||||
| Depreciation and amortization | 722 | 402 | ||||||
| General and administrative expense | 6,519 | 2,231 | ||||||
| Loss on lease termination | — | 303 | ||||||
| Credit loss expense | 182 | 70 | ||||||
| Gain on operations transfer | — | (106 | ) | |||||
| Total expenses | 21,864 | 7,508 | ||||||
| Loss from operations | (702 | ) | (318 | ) | ||||
| Other expense: | ||||||||
| Interest expense, net | 522 | 653 | ||||||
| Other (income) expense, net | (3 | ) | 291 | |||||
| Total other (income) expense, net | 519 | 944 | ||||||
| Net loss | (1,221 | ) | (1,262 | ) | ||||
| Preferred stock dividends | — | (603 | ) | |||||
| Deemed contribution related to Preferred Series B purchases | 64 | — | ||||||
| Net loss attributable to | $ | (1,157 | ) | $ | (1,865 | ) | ||
| Net loss per share of common stock attributable to | ||||||||
| Basic and Diluted | $ | (0.29 | ) | $ | (0.94 | ) | ||
| Weighted average shares of common stock outstanding: | ||||||||
| Basic and Diluted | 3,935 | 1,993 | ||||||
| BALANCE SHEET | ||||||||
| (in thousands) | ||||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Cash | $ | 1,058 | $ | 3,013 | ||||
| Restricted cash | 1,508 | 1,631 | ||||||
| Accounts receivable, net of allowances of | 10,057 | 8,025 | ||||||
| Inventory | 1,625 | 1,354 | ||||||
| Notes receivable | 624 | 644 | ||||||
| Prepaid expenses and other | 1,355 | 1,623 | ||||||
| Total current assets | 16,227 | 16,290 | ||||||
| Property and equipment, net | 35,445 | 35,805 | ||||||
| Assets held for sale, net | 4,229 | 4,207 | ||||||
| Restricted cash | 1,509 | 1,420 | ||||||
| Intangible assets | 4,640 | 4,660 | ||||||
| Other assets | 3,648 | 3,842 | ||||||
| 1,585 | 1,585 | |||||||
| Total assets | $ | 67,283 | $ | 67,809 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Accounts payable | $ | 7,712 | $ | 6,986 | ||||
| Accrued expenses | 8,583 | 7,888 | ||||||
| Other liabilities | 892 | 867 | ||||||
| Debt related to assets held for sale, net | 2,935 | 3,001 | ||||||
| Current portion of long term debt | 5,140 | 5,414 | ||||||
| Total current liabilities | 25,262 | 24,156 | ||||||
| Other debt, net | 593 | 516 | ||||||
| Long-term debt, net - less current maturities | 34,546 | 34,738 | ||||||
| Operating lease obligation | 2,163 | 2,325 | ||||||
| Other liabilities | 1,583 | 1,550 | ||||||
| Total liabilities | 63,554 | 62,769 | ||||||
| Preferred stock, Series D, no par values, 1,420 shares authorized; 1,405 shares issued and outstanding at | 4,691 | 4,691 | ||||||
| Stockholders' equity: | ||||||||
| Common stock and additional paid-in capital, no par value; 55,000 shares authorized; 3,946 issued and 3,935 outstanding at | 67,392 | 67,296 | ||||||
| Preferred stock, no par value; 5,000 shares authorized (including amounts authorized for Series A, Series B and Series D); shares issued and outstanding designated separately | ||||||||
| Preferred stock, Series A, no par value; 559 shares authorized, issued and outstanding at | 426 | 426 | ||||||
| Preferred stock, Series B, no par value; 2,812 shares authorized; 1,711 and 1,741 shares issued and outstanding at | 14,132 | 14,382 | ||||||
| Accumulated deficit | (82,934 | ) | (81,777 | ) | ||||
| Accumulated other comprehensive earnings | 22 | 22 | ||||||
| Total stockholders' equity (deficit) | (962 | ) | 349 | |||||
| Total liabilities, Series D preferred stock and stockholders' equity (deficit) | $ | 67,283 | $ | 67,809 | ||||
| DEBT SUMMARY | ||||||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||||
| Maturity | Interest Rate | Principal | % of Principal | Deferred financing costs | Unamortized discount on bonds | Net Carrying Value | ||||||||||||||||||||||
| Total Fixed Rate Debt | 4.35 | % | 36,437 | 83.9 | % | (626 | ) | (99 | ) | 35,712 | ||||||||||||||||||
| Total Floating Rate Debt | 8.42 | % | 6,978 | 16.1 | % | (69 | ) | - | 6,909 | |||||||||||||||||||
| Total | $ | 43,415 | 100.0 | % | $ | (695 | ) | $ | (99 | ) | $ | 42,621 | ||||||||||||||||
| RECONCILIATION OF NET (LOSS) TO NON-GAAP FINANCIAL MEASURES | ||||||||
| (in thousands) | ||||||||
| Three Months Ended March, 31 | ||||||||
| 2026 | 2025 | |||||||
| (Unaudited) | ||||||||
| Net loss | $ | (1,221 | ) | $ | (1,262 | ) | ||
| Depreciation and amortization | 722 | 402 | ||||||
| Interest expense, net | 522 | 653 | ||||||
| EBITDA | 23 | (207 | ) | |||||
| Amortization of employee stock compensation | 96 | 22 | ||||||
| Credit loss expense | 182 | 70 | ||||||
| Merger and other one-time costs | 220 | 291 | ||||||
| Loss on lease termination | — | 303 | ||||||
| Gain on operations transfer | — | (106 | ) | |||||
| Tail insurance on legacy facilities | — | 55 | ||||||
| One-time income adjustment - quality incentive program | — | — | ||||||
| Adjusted EBITDA from operations | $ | 521 | $ | 428 | ||||
