NYSE$OHI

Omega Healthcare Investors Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Omega Healthcare's Q3 2023 performance was marked by exceeding financial expectations, strategic investments, and balance sheet enhancements.

Omega Healthcare Investors reported a net income of $94 million, or $0.37 per common share, for the quarter ended September 30, 2023. The company completed $106 million in new investments, including real estate acquisitions and loans, and strengthened its balance sheet with a $429 million term loan. Revenues for the quarter totaled $242.0 million, an increase of $2.6 million over the same period in 2022.

  • Net income for the quarter was $94 million, or $0.37 per common share.
  • New investments of $106 million were completed, including real estate acquisitions and loans.
  • A $429 million unsecured term loan was entered into to strengthen the balance sheet.
  • 29 facilities that were leased to LaVie were sold for $305.2 million in consideration in Q4.

Headline financials

Total Revenue

$242M

Previous: $239M+1.1%
EPS (adj)

$0.71

Previous: $0.76-6.6%
Capital Expenditures

-$239M

Previous: -$192M-24.6%
Free Cash Flow

-$145M

Previous: -$86.8M-67.3%
Net Income

$93.9M

Previous: $105M-10.6%
Operating Income

$47.5M

Previous: $61.8M-23.0%
Gross Profit

$242M

Previous: $239M+1.1%
Cash & Equivalents

$555M

Previous: $135M+311.3%
Total Assets

$9.43B

Previous: $9.48B-0.5%
Stock-Based Comp

$8.76M

Previous: $6.81M+28.6%

Revenue & EPS history

Omega Healthcare · Revenue · Quarterly

$242M

Q3 2023+1.1%vs Q3 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Omega Healthcare · $31.8M total across 3 segments · Q3 2023

  • Real estate loans interest income
    $24.9M
  • Non-real estate loans interest income
    $5.73M
  • Miscellaneous income
    $1.21M+398.8%

Forward guidance

Omega Healthcare anticipates potential impacts on FAD in Q4 2023 and early 2024 due to ongoing restructurings and tenants on cash-basis.

Tailwinds

  • The company remains constructive on the longer-term opportunities within the industry.
  • The operating backdrop continues to improve.
  • Occupancy is increasing.
  • The tight labor market is slowly moderating.
  • The skilled nursing industry is well-positioned to benefit from multi-decade demographic tailwinds.

Headwinds

  • Some smaller restructurings are ongoing.
  • Many tenants are still on a cash-basis.
  • Some security deposits are being depleted.
  • FAD could be impacted by these factors in the fourth quarter and potentially into early 2024.
  • CMS issued its proposed rule on minimum staffing for the industry, which could have fundamental flaws.

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 Q3 2023

Historical avgQ3 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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