NYSE$OHI

Omega Healthcare Investors Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Omega Healthcare's second quarter results for 2023 were announced, with financial performance exceeding expectations due to restructured operators returning to paying rent and unanticipated rent payments from some operators. The company completed new investments and repaid debt. The operating backdrop continued to improve with occupancy increasing and the labor market moderating.

Omega Healthcare Investors, Inc. reported a net income of $62 million, or $0.25 per common share, for the second quarter of 2023. The company completed $270 million in new investments and repaid $350 million of senior unsecured notes. While the company's financial performance exceeded expectations, FAD may decline in the third quarter if incremental rents are not received.

  • Net income for the quarter was $62 million, or $0.25 per common share.
  • Nareit FFO for the quarter was $155 million, or $0.63 per common share.
  • Adjusted FFO for the quarter was $183 million, or $0.74 per common share.
  • Completed $270 million in new investments and repaid $350 million of senior unsecured notes.

Headline financials

Total Revenue

$250M

Previous: $245M+2.3%
EPS (adj)

$0.74

Previous: $0.76-2.6%
Capital Expenditures

-$170M

Previous: -$147M-15.0%
Free Cash Flow

-$108M

Previous: -$55.5M-94.7%
Net Income

$61.5M

Previous: $91.9M-33.1%
Operating Income

$48.8M

Previous: $70.5M-30.8%
Gross Profit

$250M

Previous: $245M+2.3%
Cash & Equivalents

$351M

Previous: $165M+112.6%
Total Assets

$9.4B

Previous: $9.52B-1.2%
Stock-Based Comp

$8.81M

Previous: $6.85M+28.6%

Revenue & EPS history

Omega Healthcare · Revenue · Quarterly

$250M

Q2 2023+2.3%vs Q2 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Omega Healthcare · $30.8M total across 3 segments · Q2 2023

  • Real estate loans interest income
    $24M
  • Non-real estate loans interest income
    $5.25M
  • Miscellaneous income
    $1.6M+0.6%

Forward guidance

While the company's second quarter financial performance exceeded expectations, FAD may decline from its second quarter level if incremental rents are not received in the third quarter.

Tailwinds

  • Occupancy is increasing.
  • The tight labor market is slowly moderating.
  • EBITDAR coverage, excluding CARES Act support, for the first quarter of 2023 ticked up to 1.15x, its highest level in 3 years.
  • The acquisition pipeline continues to improve.
  • The team closed $270 million of transactions in the quarter.

Headwinds

  • FAD may decline from its second quarter level if incremental rents are not received in the third quarter.
  • Maplewood short-paid its June contractual rent by $1.0 million.
  • Maplewood again short-paid its contractual rent by $1.0 million in July.
  • The industry is still on the road to recovery and remains quite fragile.
  • Any federal minimum staffing requirement would be thoughtfully constructed, balancing the focus on resident care with the labor challenges and funding needs facing the industry.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.1%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+2.4%

Avg return

30 days after

49%

33 / 68 earnings

Positive

+13.1%

Q1 2022

Best reaction

-9.1%

Q3 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.0%-2.6%-1.3%
Q4 2025+6.1%+5.8%+11.0%
Q3 2025+5.3%+7.9%+15.2%
Q1 2025-4.1%-7.5%-4.0%
Q4 2024-0.7%-6.0%-3.7%
Q3 2024+1.4%-4.5%-3.0%
Q2 2024+5.1%+1.8%+8.6%
Q1 2024+2.1%+0.8%+5.3%
Q4 2023+6.9%+10.2%+9.9%
Q3 2023-5.2%-5.8%-3.4%
Q2 2023-1.1%+1.0%+3.2%
Q1 2023+8.5%+7.9%+10.4%
Q4 2022-2.2%-5.1%-7.9%
Q3 2022-1.3%+2.5%-5.1%
Q2 2022+1.8%+3.2%+5.4%
Q1 2022+13.1%+11.3%+15.9%
Q4 2021-8.4%-11.2%-8.7%
Q3 2021+0.2%-4.7%-7.6%
Q2 2021-4.6%-3.2%-6.9%
Q1 2021-2.0%-3.9%-0.1%
Q4 2020-0.6%-1.2%+1.2%
Q3 2020-1.1%+3.8%+23.1%
Q2 2020+3.0%+4.8%-0.2%
Q1 2020+0.0%+1.8%+21.9%
Q4 2019-0.0%+1.4%-7.7%
Q3 2019-2.2%-5.4%-2.6%
Q2 2019+1.5%+7.8%+15.4%
Q1 2019+1.5%+4.3%+2.3%
Q4 2018-5.9%-6.9%-6.5%
Q3 2018+5.2%+7.5%+15.6%
Q2 2018+3.7%+5.5%+10.9%
Q1 2018+3.4%+7.0%+13.1%
Q4 2017-2.9%+1.4%+3.7%
Q3 2017-9.1%-10.6%-15.6%
Q2 2017-3.4%-4.9%-5.8%
Q1 2017-2.6%-0.8%-3.3%
Q4 2016-5.0%-1.8%-3.7%
Q3 2016-1.7%-6.5%-5.8%
Q2 2016+1.5%+1.9%+3.5%
Q1 2016-1.2%
Q4 2015+4.4%
Q3 2015-0.5%
Q2 2015+1.2%
Q1 2015-3.5%
Q4 2014-0.7%
Q3 2014+1.8%
Q2 2014+0.1%
Q1 2014-0.6%
Q4 2013-1.4%
Q3 2013-2.0%
Q2 2013-7.3%
Q1 2013+0.5%
Q4 2012+4.2%
Q3 2012-3.0%
Q2 2012+1.1%
Q1 2012+0.4%
Q4 2011-1.8%
Q3 2011+2.2%
Q2 2011+3.2%
Q1 2010+0.1%
Q1 2011+1.3%
Q4 2008-2.2%
Q4 2010-2.2%
Q3 2010-4.4%
Q3 2009-4.4%
Q2 2009+1.3%
Q2 2010+1.3%
Q4 2009+1.3%

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