Japara Healthcare Limited reported consolidated earnings results for the six months ended December 31, 2017. For the six months, the company reported total revenue of AUD 182.507 million, up 2.2% on first half of 2017. EBIT was AUD 16.503 million compared to AUD 22.335 million a year ago. EBITDA was AUD 24.3 million, down 16.5% on first half of 2017 due primarily to the aforementioned factors combined with higher wage costs, greenfield start up costs at the newly opened Riverside Views home and redundancy costs associated with the roster optimization program. Profit before tax was AUD 14.758 million compared to AUD 20.746 million a year ago. Net profit after tax was AUD 10.3 million against AUD 14.6 million a year ago. Profit from continuing operation was AUD 10.279 million compared to AUD 14.633 million a year ago. The company continued its good record of strong cash generation, including net cash inflows from RADs of AUD 25.9 million. The company's balance sheet is strong and well positioned to support future growth, with net bank debt of AUD 24.4 million at 31 December 2017. Profit attributable to member of parent entity was AUD 10.279 million or AUD 3.9 per basic and diluted share compared to AUD 14.633 million or AUD 5.5 per basic and diluted share a year ago. Net cash provided by operating activities were AUD 35.078 million compared to AUD 37.393 million a year ago. Purchase of land & buildings was AUD 14.828 million compared to AUD 5.053 million a year ago. Purchase of plant and equipment was AUD 4.659 million compared to AUD 3.878 million a year ago.

As reported in December 2017, the company expects second half EBITDA to exceed the first half and confirms the fiscal year 2018 EBITDA outlook is in line with previous guidance. The expected improvement in second half performance is based on: recovering occupancy levels (93.5% currently); increasing contribution from completed greenfield and brownfield developments; increasing cost efficiencies achieved through the workforce management system and roster optimization programs; partially offset by 3 additional public holidays.

EBITDA is expected to increase further in fiscal year 2019 as the abovementioned initiatives gain further traction, occupancy normalizes and ACFI indexation recommences. Its extensive developments program is supported by a strong balance sheet and cash flows.