(MENAFN- GlobeNewsWire - Nasdaq) 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

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 .

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.

Company Contact

Brent Morrison, CFA

Chief Executive Officer & President

Regional Health Properties, Inc.

Tel (678) 368-4402

...

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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