Apr. 8 at 9:54 AM
$RHE On the operational side, the picture is improving. According to management, the SunLink merger has significantly expanded the platform. Portfolio occupancy increased from 62.5% to 72.2% year-over-year, while in the HealthCare Services segment, Average Daily Census rose from 389 to 467, and the quality mix improved from 9.1% to 12.2%. In addition, the company sold a non-core asset, the Coosa Valley facility, realizing a
$2.7 million gain.
From a capital structure perspective, there has also been movement. The company repurchased 511,099 shares of Series B preferred stock at a discount, which is a positive signal for shareholders as it shows management is attempting to reduce the preferred equity burden at an attractive price. However, the balance sheet is still not clean: total debt stood at
$44.0 million at year-end, and the company reported
$2.3 million in operating cash outflow for 2025. So despite generating a profit, the cash flow profile is not yet fully convincing.