Regional Health Properties Reports Fourth Quarter 2025 Results

2026-04-07 10:16:59

(MENAFN- GlobeNewsWire - Nasdaq) Reported Full Year Profitability of $3.4 million

Repurchased 511,099 Series B Preferred Shares

HealthCare Services segment reports 20% growth in Average Daily Census

ATLANTA, GA, April 07, 2026 (GLOBE NEWSWIRE) -- Regional Health Properties, Inc. (the“Company”,“Regional”,“we”,“us” or“our”) (OTCQB: RHEP) (OTCQB: RHEPA) (OTCQB: RHEPB) (OTCQB:RHEPZ), a healthcare company that owns, operates and invests in healthcare real estate and operating businesses focused on long-term care, senior housing and pharmacy services, today announced its financial results for the fourth quarter ended December 31, 2025.

FOURTH QUARTER 2025 FINANCIAL RESULTS

Reported revenue of $20.8 million
Generated GAAP net income of $2.7 million and Adjusted EBITDA¹ of $1.7 million
Reported earnings per share of $.68

TWELVE MONTHS ENDED DECEMBER 31, 2025 FINANCIAL RESULTS

Reported revenue of $53.2 million
Generated GAAP net income of $ 3.4 million and Adjusted EBITDA of $3.1 million
Reported earnings per share of $1.09

FOURTH QUARTER 2025 BUSINESS HIGHLIGHTS

Recognized $2.7 million gain on sale of the Coosa Valley facility located in Glencoe, Alabama
Portfolio occupancy increased from 70.6% to 72.2%
Repurchased 511,099 shares of the Company's 12.5% Series B Cumulative Redeemable Preferred Shares at a discount to liquidation preference

TWELVE MONTHS ENDED DECEMBER 31, 2025 BUSINESS HIGHLIGHTS

For the Healthcare Services segment,
- Average Daily Census (“ADC”) rose from 389 to 467, a 20% increase
- Quality Mix2 rose from 9.1% to 12.2%
Portfolio occupancy increased from 62.5% to 72.2%

MANAGEMENT COMMENTS

Brent Morrison, Regional's President, Chief Executive Officer and Chairman, commented,“We are proud of the meaningful progress Regional team made in 2025. The merger with SunLink significantly broadened our healthcare platform, while the sale of a non-core asset demonstrated our continued focus on disciplined capital allocation. Taken together, these milestones reflect a year of execution and strategic progress for the Company”.

Mr. Morrison continued,“We believe the operational progress we are making across our facilities will be a key driver of Regional's future growth. We are encouraged by the progress achieved in 2025 and remain optimistic that we will continue to build on this momentum in 2026.”

BALANCE SHEET AND LIQUIDITY

As of December 31, 2025, the Company had $44.0 million of outstanding indebtedness with a weighted-average annual interest rate of 5.06% and a weighted-average maturity of approximately 15 years. For the twelve months ended December 31, 2025, net cash used by operating activities was $2.3 million.

About Regional Health Properties, Inc.

Regional Health Properties, Inc. is a healthcare company that owns, operates and invests in healthcare real estate and operating businesses focused on long-term care, senior housing and pharmacy services. 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)

	Quarter Ending December 31,
	2025			2024
Revenues:
Patient care revenues	$	11,803			$		3,855
Rental revenues		1,268					1,748
Pharmacy revenues		7,704					-
Other revenues		-					57
Total revenues		20,775					5,660
Expenses:
Cost of goods sold		4,512					-
Patient care expense		10,561					2,980
Facility rent expense		228					148
Depreciation and amortization		712					563
General and administrative expense		3,666					1,323
Loss on lease termination		559					-
Credit loss expense		159					105
Gain on operations transfer		-					-
Total expenses		20,397					5,119
Gain on asset sale		(2,706	)				-
Income from operations		3,084					541
Other (income) expense:
Interest expense, net		652					689
Gain on bargain purchase		(464	)				-
Other expense, net		197					420
Total other (income) expense, net		385					1,109
Net income (loss)		2,699					(568	)
Preferred stock dividends		-					-
Deemed contribution related to Preferred Series B purchases		-					-
Net profit (loss) attributable to Regional Health Properties, Inc. common stockholders		2,699					(568	)
Unrecognized net gain on pension assets		22					-
Comprehensive income	$	2,677				-$	568
Net profit (loss) per share of common stock attributable to Regional Health Properties, Inc.:
Basic	$	0.68				-$	0.31
Diluted	$	0.68				-$	0.31
Weighted average shares of common stock outstanding:
Basic		3,945					1,858
Diluted		3,945					1,858

REGIONAL HEALTH PROPERTIES, INC.
STATEMENT OF OPERATIONS
(in thousands)

	Year Ended December 31,
	2025			2024
Revenues:
Patient care revenues	$	36,050			$	11,273
Rental revenues		5,402				7,005
Pharmacy revenues		11,708				-
Other revenues		-				57
Total revenues		53,160				18,335
Expenses:
Cost of goods sold		6,982				-
Patient care expense		30,785				9,442
Facility rent expense		780				594
Depreciation and amortization		2,063				2,062
General and administrative expense		12,041				5,408
Loss on lease termination		862				-
Credit loss expense		795				668
Gain on operations transfer		(106	)			-
Total expenses		54,202				18,174
Gain on asset sale		(2,706	)			-
Income from operations		1,664				161
Other (income) expense:
Interest expense, net		2,671				2,710
Gain on bargain purchase		(5,775	)			-
Other expense, net		1,398				669
Total other (income) expense, net		(1,706	)			3,379
Net income (loss)		3,370				(3,218	)
Preferred stock dividends		(603	)			-
Deemed contribution related to Preferred Series B purchases		278				-
Net profit (loss) attributable to Regional Health Properties, Inc. common stockholders		3,045				(3,218	)
Unrecognized net gain on pension assets		22				-
Comprehensive income	$	3,067			$	(3,218	)
Net profit (loss) per share of common stock attributable to Regional Health Properties, Inc.:
Basic	$	1.09			$	(1.73	)
Diluted	$	1.09			$	(1.73	)
Weighted average shares of common stock outstanding:
Basic		2,805				1,858
Diluted		2,805				1,858

	Maturity		Interest Rate		Principal		% of Principal	Deferred financing costs			Unamortized discount on bonds			Net Carrying Value

Total Fixed Rate Debt		5/21/2042		4.34	%		36,876		83.9	%			(636	)		(101	)		36,140

Total Floating Rate Debt		10/1/2036		8.42	%		7,084		16.1	%			(71	)		-			7,013

Total						$	43,960		100.0	%		$	(706	)	$	(101	)	$	43,153

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)

	Quarter Ended			Quarter Ended			Quarter Ended		Quarter Ended		Year Ended
(Amounts in 000's)	3/31/2025			6/30/2025			9/30/2025		12/31/2025		Total
Net income (loss)	$	(1,263	)		$	(1,449	)	$	3,381		$	2,700		$	3,370
Depreciation and amortization		402				403			546			712			2,063
Interest expense, net		653				615			751			652			2,671
Amortization of employee stock compensation		22				25			124			62			233
Provision for income tax		-				-			-			-			-
EBITDA	$	(186	)		$	(406	)	$	4,803		$	4,126		$	8,337
Credit loss expense		70				400			166			159			795
Loss on lease termination		303				-			-			559			862
Gain on asset sale		-				-			-			(2,706	)		(2,706	)
Gain on bargain purchase		-				-			(5,311	)		-			(5,311	)
Adjustments to gain on bargain purchase		-				-			-			(464	)		(464	)
Gain on operations transfer		(106	)			-			-			-			(106	)
Merger costs		261				357			584			84			1,285
Other one-time costs		110				86			181			(11	)		366
Tail insurance on legacy facilities		56				18			-			-			74
Adjusted EBITDA from operations	$	508			$	455		$	423		$	1,747		$	3,132

¹ Adjusted EBITDA is a non-GAAP financial measure. See“Use of Non-GAAP Financial Measures” for important additional information.
2 Figures omit Meadowood since it is all private pay

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