REGIONAL HEALTH PROPERTIES, INC (RHE)·Q1 2021 Earnings Summary

Executive Summary

• Q1 2021 total revenues rose to $7.08M driven by the start of patient care operations at the Tara Facility, while rental revenues fell 5.0% YoY to $4.08M due to prior lease terminations .
• EPS was $(1.32) due to preferred dividends despite positive net income of $0.02M; operating income improved to $1.12M with EBIT margin ~15.8% versus Q4’s negative margin, reflecting stronger collections and Tara operations .
• Rent collections improved to 97.2% in Q1 and occupancy ticked up to 68.6%; management highlighted positive post-quarter occupancy trends and ongoing refinancing efforts as catalysts .
• No formal quantitative guidance or earnings call transcript was provided; S&P Global Wall Street consensus estimates for Q1 2021 were unavailable, so beat/miss analysis vs estimates cannot be determined.

What Went Well and What Went Wrong

What Went Well

• Cash collections and occupancy improved: “Collected 97.2% of first quarter 2021 contractual cash rent”; occupancy was 68.6% and skilled mix 29.6% in Q1 .
• Tara Facility operations contributed new patient care revenue of $2.69M with positive early results following the Wellington transition .
• Management is progressing refinancing to lower rates and extend maturities: “The opportunities to refinance some of our senior debt… are moving along,” enabling potential growth mode post-COVID .

What Went Wrong

• Rental revenue pressure: rental revenues decreased 5.0% YoY to $4.08M, primarily due to the termination of subleases for two SNFs in Q4 2020 (Wellington Transition) .
• Elevated operating costs: G&A increased 18.1% to $1.04M, including $135K management consulting tied to Tara; other expense was $394K related to Series A Preferred stock refinancing activities .
• Continued losses to common equity holders: net loss attributable to common was $(2.23)M (EPS $(1.32)), driven by undeclared preferred dividends of $(2.25)M despite positive net income of $0.02M .

Financial Results

Headline P&L and EPS (oldest → newest)

Notes:

• Operating Income is the company’s “Income from operations,” equivalent to EBIT in this context .

Revenue Mix (oldest → newest)

Key Operating KPIs (oldest → newest)

Balance Sheet Highlights (Q1 2021 vs Q4 2020)

Guidance Changes

No formal quantitative guidance ranges were disclosed in the Q1 2021 8-K or Exhibit 99.1 press release; management commentary focused on refinancing progress and post-quarter occupancy improvements .

Earnings Call Themes & Trends

No earnings call transcript was available for Q1 2021 in the document set; themes below synthesize disclosures across Q3–Q1 press releases.

Management Commentary

• CEO Brent Morrison: “We are pleased to report a slight increase to our Operator’s occupancy levels and improvements in our rent collections. Subsequent to quarter-end, we are seeing further positive improvement in occupancy levels...” .
• CFO Ben Waites: “The opportunities to refinance some of our senior debt secured by U.S. Department of Housing and Urban Development (HUD) and non-HUD properties are moving along… [which] should allow the Company to move into a growth mode and take advantage of opportunities presented by the COVID 19 disruption.” .
• Business update highlights: “Ended the quarter with $6.2 million of unrestricted cash… Collected 97.2% of first quarter 2021 contractual cash rent.” .

Q&A Highlights

No Q1 2021 earnings call transcript was found; therefore, there are no Q&A themes or guidance clarifications available from a call in the document set. Disclosures relied on the press release and 8‑K content .

Estimates Context

• Wall Street consensus estimates (S&P Global) for Q1 2021 EPS and revenue were unavailable for RHE, preventing beat/miss comparisons.
• Implication: In absence of consensus, investors should focus on sequential improvement in operating metrics (occupancy, collections) and the mix shift from rental to patient care revenue as drivers of earnings power normalization .

Key Takeaways for Investors

• Mix shift: New patient care operations at the Tara Facility added $2.69M revenue, boosting total revenues to $7.08M; watch sustainability and margin profile of operated facilities vs pure rental model .
• Collections and occupancy inflecting: Rent collections reached 97.2% and occupancy improved to 68.6%; management sees further post-quarter occupancy gains—a potential near-term sentiment catalyst .
• Margin recovery: EBIT margin rebounded to ~15.8% from Q4’s negative level, supported by higher revenues and collections; monitor G&A and consulting costs tied to the transition .
• Capital structure actions: Active refinancing of six properties to lower rates/extend maturities could improve interest expense and liquidity, supporting medium-term equity value .
• Rental base under pressure: Rental revenues fell 5.0% YoY due to prior lease terminations; stabilization depends on operator performance and portfolio transitions .
• Preferred overhang: Undeclared preferred dividends continue to drive losses to common despite positive net income; any resolution of the preferred capital structure could be a key equity catalyst .
• Trading lens: Near-term moves likely tied to continued occupancy recovery and visible refinancing milestones; absence of formal guidance and lack of consensus estimates increases reliance on reported operating KPIs and execution updates .

Citations:

• Q1 2021 8-K and Exhibit 99.1 press release with financial statements and KPIs .
• Q4 2020 8-K and Exhibit 99.1 press release for prior-quarter context .
• Q3 2020 8-K and Exhibit 99.1 press release for earlier trend analysis .