ATLANTA, GA, Nov. 20, 2025 (GLOBE NEWSWIRE) — Regional Health Properties, Inc. (the “Company”, “Regional”, “we”, “us” or “our”) (OTCQB: RHEP) (OTCQB: RHEPA) (OTCQB: RHEPB) (OTCQB:RHEPZ), a self-managed healthcare real estate investment company that invests primarily in real estate purposed for senior living and long-term care, today announced its financial results for the third quarter ended September 30, 2025.
THIRD QUARTER 2025 FINANCIAL RESULTS
- Reported revenue of $15.1 million
- Generated GAAP net income of $3.4 million and Adjusted EBITDA1 of $413,000
- Reported earnings per share of $1.17
NINE MONTHS ENDED SEPTEMBER 30, 2025 FINANCIAL RESULTS
- Reported revenue of $32.4 million
- Generated GAAP net income of $671,000 and Adjusted EBITDA of $982,000
- Reported earnings per share of $0.14
THIRD QUARTER 2025 BUSINESS HIGHLIGHTS
- Recognized $5.3 million bargain purchase gain on the merger of SunLink Health Systems, Inc. with and into the Company, with the Company surviving the merger (the “SunLink merger”)
- Portfolio census is the highest since November 2022
- Repurchased 366,359 shares of the Company’s 12.5% Series B Cumulative Redeemable Preferred Shares at a discount to liquidation preference
MANAGEMENT COMMENTS
Brent Morrison, Regional’s President, Chief Executive Officer and Chairman, commented, “We had a standout quarter for Regional—closing the SunLink merger, driving our facility census to multi-year highs, and collecting 100% of our lease rent. This performance speaks to the focus and dedication of our team and the employees operating our facilities every day. I’m incredibly proud of what we achieved together this past quarter.”
Mr. Morrison continued, “Subsequent to quarter-end, we completed the sale of our Coosa Valley facility in Glencoe, AL. We were pleased with the sales process and look to use the sales proceeds opportunistically to create shareholder value.”
FINANCIAL RESULTS FOR QUARTER ENDED SEPTEMBER 30, 2025
For the third quarter of 2025, the Company reported total revenue of $15.1 million, a GAAP net income of $3.4 million, EBITDA2 of $4.8 million and Adjusted EBITDA of $413,000.
BALANCE SHEET AND LIQUIDITY
As of September 30, 2025, the Company had $48.6 million of outstanding indebtedness with a weighted-average annual interest rate of 5.0% and a weighted-average maturity of approximately 16 years. For the nine months ended September 30, 2025, net cash provided by operating activities was $990,000.
About Regional Health Properties, Inc.
Regional Health Properties, Inc., headquartered in Atlanta, Georgia, is a self-managed healthcare real estate investment company that invests primarily in real estate purposed for senior living and long-term care. For more information, visit https://www.regionalhealthproperties.com.
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, and revenue; use of sales proceeds; 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: our dependence on the operating success of our operators; the amount of, and our ability to service, our indebtedness; covenants in our debt agreements that may restrict our ability to make investments, incur additional indebtedness and refinance indebtedness on favorable terms; the availability and cost of capital; our ability to raise capital through equity and debt financings or through the sale of assets; increases in market interest rates and inflation; the effect of increasing healthcare regulation and enforcement on our operators and the dependence of our operators on reimbursement from governmental and other third-party payors; the relatively illiquid nature of real estate investments; the impact of litigation and rising insurance costs on the business of our operators; the impact on us of litigation relating to our prior operation of our healthcare properties; the effect of our operators declaring bankruptcy, becoming insolvent or failing to pay rent as due; the ability of any of our operators in bankruptcy to reject unexpired lease obligations and to impede our ability to collect unpaid rent or interest during the pendency of a bankruptcy proceeding and retain security deposits for the debtor’s obligations; our ability to find replacement operators and the impact of unforeseen costs in acquiring new properties; epidemics or pandemics, and the related impact on our tenants, operators and healthcare facilities; and other factors discussed from time to time in our news releases, public statements and documents filed by us with the Securities and Exchange Commission from time to time, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. These forward-looking statements and such risks, uncertainties and other factors speak only as of the date of this press release, and we expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained herein, to reflect any change in our expectations with regard thereto or any other change in events, conditions, or circumstances on which any such statement is based, except to the extent otherwise required by applicable law.
| REGIONAL HEALTH PROPERTIES, INC | ||||||||
| STATEMENT OF OPERATIONS | ||||||||
| (in thousands) | ||||||||
| Three Months Ended September 30, | ||||||||
| 2025 | 2024 | |||||||
| Revenues: | ||||||||
| Patient care revenues | $ | 9,831 | $ | 2,585 | ||||
| Rental revenues | 1,303 | 1,640 | ||||||
| Pharmacy revenues | 4,004 | — | ||||||
| Total revenues | 15,138 | 4,225 | ||||||
| Costs and expenses | ||||||||
| Cost of goods sold | 2,470 | — | ||||||
| Patient care expense | 8,639 | 2,179 | ||||||
| Facility rent expense | 197 | 149 | ||||||
| Depreciation and amortization | 547 | 474 | ||||||
| General and administrative expense | 3,713 | 1,224 | ||||||
| Credit loss expense | 166 | 499 | ||||||
| Total costs and expenses | 15,732 | 4,525 | ||||||
| Loss from operations | (594 | ) | (300 | ) | ||||
| Other (income) expense: | ||||||||
| Interest expense, net | 751 | 677 | ||||||
| Gain on bargain purchase | (5,311 | ) | — | |||||
| Other expense, net | 584 | 5 | ||||||
| Total other expense, net | (3,976 | ) | 682 | |||||
| Net Income (Loss) | $ | 3,382 | $ | (982 | ) | |||
| Deemed contribution related to Preferred Series B purchases | 278 | — | ||||||
| Net profit (loss) attributable to Regional Health Properties, Inc. common stockholders | $ | 3,660 | $ | (982 | ) | |||
| Net profit (loss) per share of common stock attributable to Regional Health Properties, Inc. | ||||||||
| Basic: | $ | 1.17 | $ | (0.52 | ) | |||
| Diluted: | $ | 1.17 | $ | (0.52 | ) | |||
| Weighted average shares of common stock outstanding: | ||||||||
| Basic: | 3,125 | 1,904 | ||||||
| Diluted: | 3,125 | 1,904 | ||||||
| REGIONAL HEALTH PROPERTIES, INC | ||||||||
| STATEMENT OF OPERATIONS | ||||||||
| (in thousands) | ||||||||
| Nine Months Ended September 30, | ||||||||
| 2025 | 2024 | |||||||
| Revenues: | ||||||||
| Patient care revenues | $ | 24,247 | $ | 7,418 | ||||
| Rental revenues | 4,134 | 5,257 | ||||||
| Pharmacy revenues | 4,004 | — | ||||||
| Total revenues | 32,385 | 12,675 | ||||||
| Costs and expenses | ||||||||
| Cost of goods sold | 2,470 | — | ||||||
| Patient care expense | 20,224 | 6,462 | ||||||
| Facility rent expense | 552 | 446 | ||||||
| Depreciation and amortization | 1,351 | 1,499 | ||||||
| General and administrative expense | 8,375 | 4,085 | ||||||
| Loss on lease termination | 303 | — | ||||||
| Credit loss expense | 636 | 563 | ||||||
| Gain on operations transfer | (106 | ) | — | |||||
| Total costs and expenses | 33,805 | 13,055 | ||||||
| Loss from operations | (1,420 | ) | (380 | ) | ||||
| Other (income) expense: | ||||||||
| Interest expense, net | 2,019 | 2,021 | ||||||
| Gain on bargain purchase | (5,311 | ) | — | |||||
| Other expense, net | 1,201 | 249 | ||||||
| Total other expense, net | (2,091 | ) | 2,270 | |||||
| Net Income (Loss) | $ | 671 | $ | (2,650 | ) | |||
| Preferred stock dividends | (603 | ) | — | |||||
| Deemed contribution related to Preferred Series B purchases | 278 | — | ||||||
| Net profit (loss) attributable to Regional Health Properties, Inc. common stockholders | $ | 346 | $ | (2,650 | ) | |||
| Net profit (loss) per share of common stock attributable to Regional Health Properties, Inc. | ||||||||
| Basic: | $ | 0.14 | $ | (1.42 | ) | |||
| Diluted: | $ | 0.14 | $ | (1.42 | ) | |||
| Weighted average shares of common stock outstanding: | ||||||||
| Basic: | 2,425 | 1,863 | ||||||
| Diluted: | 2,425 | 1,863 | ||||||
| REGIONAL HEALTH PROPERTIES, INC. | ||||||||||||||||||||||||||||||
| DEBT SUMMARY | ||||||||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||||||
| September 30, 2025 | ||||||||||||||||||||||||||||||
| Lender | Maturity | Interest Rate | Principal | % of Principal | Deferred financing costs | Unamortized discount on bonds | Net Carrying Value | |||||||||||||||||||||||
| Total Fixed Rate Debt | 12/15/2041 | 4.32 | % | 42,298 | 85.4 | % | (662 | ) | (102 | ) | 41,533 | |||||||||||||||||||
| Total Floating Rate Debt | 10/3/2036 | 9.40 | % | 7,216 | 14.6 | % | (171 | ) | – | 7,045 | ||||||||||||||||||||
| Total | $ | 49,514 | 100.0 | % | $ | (834 | ) | $ | (102 | ) | $ | 48,578 | ||||||||||||||||||
Use of Non-GAAP Financial Measures
This press release presents information about EBITDA and Adjusted EBITDA, which are non-GAAP financial measures provided as a supplement to the results provided in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance by excluding certain items that may not be indicative of its recurring core business operating results. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to the Company’s historical performance. The Company believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making.
These non-GAAP financial measures are presented for supplemental informational purposes only. These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation from, or as a substitute for, GAAP financial measures. These non-GAAP financial measures may differ from the non-GAAP financial measures used by other companies. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measure is provided below for each of the fiscal periods indicated.
A reconciliation of EBITDA and Adjusted EBITDA is as follows:
| REGIONAL HEALTH PROPERTIES, INC. | ||||||||||||||||
| RECONCILIATION OF NET LOSS TO NON-GAAP FINANCIAL MEASURES | ||||||||||||||||
| (in thousands) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Net income (loss) | $ | 3,382 | $ | (982 | ) | $ | 671 | $ | (2,650 | ) | ||||||
| Depreciation and amortization | 547 | 474 | 1,351 | 1,499 | ||||||||||||
| Interest expense, net | 751 | 677 | 2,019 | 2,021 | ||||||||||||
| Amortization of employee stock compensation | 124 | 19 | 171 | 85 | ||||||||||||
| EBITDA | 4,804 | 188 | 4,212 | 955 | ||||||||||||
| Credit loss expense | 166 | 499 | 636 | 563 | ||||||||||||
| Other expense (income), net | 584 | 5 | 1,201 | 249 | ||||||||||||
| Gain (loss) from write-off of liabilities and other credit balances from discontinued operations | – | 3 | – | 180 | ||||||||||||
| Gain from bargain purchase | (5,311 | ) | – | (5,311 | ) | – | ||||||||||
| Expenses related to preferred stock recapitalization | – | – | – | – | ||||||||||||
| Other one-time costs | 170 | 179 | 366 | 319 | ||||||||||||
| Project costs | – | 20 | – | 85 | ||||||||||||
| Tail insurance on legacy facilities | – | 55 | 74 | 262 | ||||||||||||
| One-time income adjustment – quality incentive program (1) | – | 49 | (196 | ) | (49 | ) | ||||||||||
| Adjusted EBITDA from operations | $ | 413 | $ | 998 | $ | 982 | $ | 2,564 | ||||||||
| (1) Amounts represent adjustments needed for historical and estimated future amounts along with reconciling for timing differences. | ||||||||||||||||
1 Adjusted EBITDA is a non-GAAP financial measure. See “Use of Non-GAAP Financial Measures” for important additional information.
2 EBITDA is a non-GAAP financial measure. See “Use of Non-GAAP Financial Measures” for important additional information.
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