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Extendicare announces first quarter 2019 results

MARKHAM, Ontario, Might 14, 2019 (GLOBE NEWSWIRE) – Extendicare Inc. ("Extendicare" or "Company") (TSX: EXE) reviews at present the results of three months ending March 31, 2019. The results are introduced in Canadian dollars until in any other case said

”Three of the 4 business segments have been robust on the flip of the yr, partly offset by decrease volumes. Adjusted EBITDA decreased because of non-recurring ParaMed investments, which predicts an increase in customer volumes and margins in the future, ”says Managing Director Dr. Michael Guerriere. "Our Executive Team, confirmed by Chief Financial Officer David Bacon and VP ParaMed Operations Ali Mir, has focused on promoting profitable growth by delivering the best services to our citizens and customers." , 1.0 % or $ 2.9 million from $ 271.4 million

  • NOI $ 30.four million, 3.6 %, or $ 1.1 million from $ 29.3 million; All segments develop, apart from ParaMed, which has skilled lower enterprise volumes and extra costs.
  • Adjusted EBITDA was $ 19.6 million, down $ 0.four million from $ 20.zero million; Impacts of Increased ParaMed Conversion Prices
  • Earnings from persevering with operations have been $ 1.1 million, $ 2.5 million from $ three.6 million; continued to have an effect on the $ 1.4 million reserve associated to the beforehand introduced withdrawal of ParaMed from B.C.
  • AFFO $ 12.6 million ($ zero.142 per share) down $ 2.1 million; larger revenue taxes and decrease revenue.
  • Dividends of $ 10.6 million have been paid through the first three months of 2019, equivalent to roughly 84 % of AFFO
  • Enterprise Updates

    ParaMed Progress

    The ParaMed enterprise, of which $ 1.7 million was invested in the first quarter. The introduction of a brand new cloud-based system to optimize scheduling, automate work processes, and provide help for Prestigious employees at Extendica now has a mark of 60% and will stay on monitor that will probably be accomplished by the top of 2019. Management expects enterprise volumes and margins will start to increase by the top of 2019.

    Extendicare installs a brand new management staff at ParaMed to manage the implementation of improved work process and know-how investments. Ali Mir, was named VP ParaMed on Might 13th. Ali is a former McKinsey advisor with expertise in eHealth Ontario, where he served as the top of group eHealth options and Telus Well being. . We are presently within the interview process to fill another new VP station. These modifications will set ParaMed's enterprise for long-term progress and worth creation.

    The Schlegel villages joined the SGP procurement associate community

    On January 1, 2019, the Extendica SGP Associate Community acquired a brand new partnership with Schlegel Villages, Inc., representing 18 long-term care and 8 retiring communities in Ontario, serving up to 4,400 inhabitants. Schlegel Villages presents a superb model in the retirement care business and is associated with quite a lot of respected present SGP clients, together with environment friendly pricing options, Jarlette Health Providers, Prima Care Dwelling Solutions, Southbridge Care Houses, The Good Samaritan Society, and Verve Senior Dwelling. With our companions, SGP presents cost-effective services to over 57,000 residents in Canada.

    Monetary activities as of March 31, 2019

    • Became a $ 10.zero million Captive
    • Closed Canadian Mortgage and Housing Group (CMHC) Insurance Funded $ 16.0 Million for Lynde Creek Retirement

    The Might Dividend was Announced

    The Board of Administrators of Extendica at the moment announced a money dividend of $ 0.04 per share in Might 2019, to be paid to shareholders registered on 31 Might 2019 at the end of Might 2019. This dividend is marked as "Eligible Dividend"

    Choose Monetary Info

    Introduction of IFRS 16

    As of January 1, 2019, the Company adopted Worldwide Monetary Reporting Requirements (IFRS) 1 6 “Leases” using a modified retrospective strategy that introduced comparative info. has not been restated and reported in accordance with International Accounting Commonplace (IAS) 17 Leases. The transition did not end in a retrospective adjustment to the opening of retained earnings on 1 January 2019.

    Lease costs for the previous yr are categorised as administrative costs in accordance with the current yr's presentation. The influence of the adoption of this commonplace on internet profit and money move is impartial. Nevertheless, the principal cost for the leases is introduced within the financial activities (beforehand mirrored in the enterprise).

    In reference to the adoption of IFRS 16, the corporate has modified the definition of operations (FFO) by together with the deduction of 'leases'. In consequence, the impression of the adoption of IFRS 16 on the willpower of FFO and adjusted belongings (AFFO) is just not relevant.

    The next is a abstract of the chosen monetary knowledge for a three-month period ending on 31 March 2019 and 2018.

    (unaudited) Three months ended
    March 31,
    (hundreds of dollars until otherwise said) ) 2019 2018
    Revenue
    Long-Time period Remedy 156,221 152,805
    Retirement 9,508 6,971 106,464
    Management, Consulting and Different [19659056 5,184 274 269 274 269 274 269 ] 243,883 242,102
    Internet Revenue (NOI) (1)) 30,386 29,322
    NOI Margin (1) 11.1 % 10.8 %
    ] 9,345
    Adjusted EBITDA (1) 19,552 19 977 [19659056]
    Adjusted EBITDA Margin (1) 7.19 7 7.4 %
    Depreciation 9,427 7,837 [19659032] Different Costs 1,429 180 [196590] 37] 180 180 1057 three,566
    base and diluted portion ($) 0.01 [19659067] zero.04
    Revenue Tax on Discontinued Operations 1,901 1,265
    Internet End result 2,958 four,831
    Primary and diluted share ($)
    Primary and diluted share ($)
    based mostly and diluted portion ($) 0.03 [19659062] 0.05 AFFO (1) 12.615 14.669
    per particle ($) 0.142 0.162 0.162 ]
    ]
    ] per diluted portion ($) zero.138 zero.161
    Maintenance Capacity (Continuous Operations) 916 1,051 1,051 Dividends per Share zero.120 0.120
    Yr (1) (2) 84 % 72 72 72 average number of shares (hundreds) 88,825 88,379 diluted 99,186 99,186 99,186 99,186 19, 1968 19659168] NOI, The NOI margin, adjusted EBITDA, adjusted EBITDA margin, AFFO, AFFO per share, and 'profit ratio' are measures that administration estimates in assessing performance. See the warning phrases in this press release beneath the heading "Non-GAAP Measures". Detailed descriptions of those terms and circumstances could be found within the Firm's disclosure documents, together with discussion and evaluation by its management, and coordination with the closest GAAP measures submitted to the Securities and Markets Authority; these documents can be found at www.sedar.com and on the Extendicare website at www.extendicare.com.
  • The cost fee is calculated using dividends reported per share divided by AFFO per share for corresponding durations.
  • Abstract of the First Quarter of 2019

    Internet working revenue

    Internet working profit improved by $ 1.1 million, or three.6 % to $ 30.four million for the three months ended March 31, 2009, and was 11.1 % of sales to 10.8 %. Three months ended 31.3.2018. Internet operating revenue was positively affected by one of the much less statutory holidays this quarter, monetary improvements and progress in retirement and contract management, consulting and group buying, partly offset by lower household health care volumes of 4.1% and paraMed conversion costs of € zero.3 million. dollars. The typical occupancy fee of our stabilized retirement communities was 95.four% for the three months ended March 31, 2009, compared with 88.8% for the previous yr.

    Administrative costs

    Administrative expenses increased by $ 1.5 million, or 15.9%, to € 10.eight million. Dollars through the three months ended March 31, 2019. Except for a $ 0.7 million lower in rental prices after the adoption of IFRS 16, administrative prices elevated by $ 2.2 million, and have been affected by $ 0.8 million in paraMed change prices.

    Adjusted EBITDA

    Adjusted EBITDA decreased by $ 0.4 million to $ 19.6 million for the three months ended March 31, 2019, and was 7.1 % of gross sales to 7.four % at the end of three months on March 31, 2018, reflecting 1, $ 1 Million Enhancements to Internet Revenue Compensated by $ 1.5 Million Extra Administrative Prices. Adjusted EBITDA affects $ 1.1 million greater paraMed conversion costs ($ 1.7 million in comparison with $ 0.3 million within the three months ended March 31, 2019 in comparison with $ zero.6 million at the finish of March) and $ 0.7 million at 31 March 2019 , Because of the adoption of IFRS 16.

    Depreciation and amortization

    Depreciation and amortization increased by $ 1.6 million to $ 9.4 million for the three months ended March 31, 2019, of which $ 0.7 million was because of the adoption and stability of IFRS 16 because of larger investments

    Other Expenses

    Different $ 1.four Million Expenses For the three months ended March 31, 2019, a provision was made for the expiration of previously introduced agreements with ParaMed in British Columbia, which expire in March 2020, mainly for plant related prices. Different costs of $ 0.2 million for the three months ended March 31, 2018, associated to the transaction prices of retirement.

    Income from continuing operations

    Income from persevering with operations $ 1.1 million ($ 0.01 per base document share) for three months ending March 31, 2019, decreased by $ 2.5 million from $ three.6 million on March 31, 2018 ParaMed BC

    Discontinued operations

    Tax income from discontinued operations was $ 1.9 million for the three months ended March 31, 2019, related to the release of Captive funds. Publish-Tax Profit of $ 1.3 million for the three months ended March 31, 2018 on the constructive influence of the low cost price adjustment on the Captive Fund

    AFFO Abstract

    Greenback ($ 0.142 per share) for three months ending March 31, 2019, from $ 14.7 million ($ 0.166 per share) for 3 months ending March 31, 2018. $ and calculated corrected EBITDA above. The company's present revenue taxes benefited in 2018 from favorable timing differences and the utilization of tax losses. In 2019, we anticipate the FFO's tax fee to be 17-19%.

    The maintenance price was $ zero.9 million over a three-month period ending March 31, 2019, in comparison with $ 1.1 million. Three months ended March 31, 2018, and in comparison with $ 4.2 million for the three months ended December 31, 2018, which is 0.three %, zero.4 %, and 1.5 % of revenue. These costs differ quarterly and annually depending on the timing and seasonality of the tasks. In 2019, we anticipate to spend $ 10-12 million on upkeep capability in comparison with $ 12.7 million in 2018.

    Financial Place

    31. As of March 2019, the corporate's consolidated money and cash equivalents amounted to $ 70.5 million, thus excluding our Captive's $ 58.7 million funding to help US $ 25.7 million in self-insured liabilities. After March 31, 2016, the company returned $ 10.zero million in cash from Captive for common enterprise use. As well as, the corporate has $ 65.zero million out there by way of its paraMed credit facility

    The company's long-term debt with convertible bonds on 31 March 2019 was $ 532.8 million (31 December 2018 – € 529.zero million). The weighted average rate of interest was four.eight% and represented about 48% of its gross guide worth

    After 31 March 2016, the company secured a mortgage of EUR 16.0 million for the CMHC insured. The retirement group of the Creek mansion, which matures in September 2029 and has a hard and fast rate of interest of two.81% every year

    The company's consolidated financial statements for the 12 months ended at the finish of the assessment interval have been three.7 occasions. Excluding interest revenue, the company's internet curiosity revenue was three.three occasions.

    Extendice's financial stories, including management dialogue and analysis, are available on our website at www.extendicare.com beneath “Investors / Financial Reports”. The identical section also incorporates a complementary info package deal containing historical quarterly financial results and operating statistics and an inventory of older care facilities.

    Conference Call and Webcast

    15. Might 2019 11:00 (ET), Extendicare will maintain a convention name to discuss the first quarter of 2019 results. The decision is shipped stay and archived on-line at www.extendicare.com beneath “Investors / Events and Presentations”. Alternatively, the call quantity is 1-800-806-5484 or 416-340-2217 followed by the password 3542154 #. Call replay is on the market about two hours after the top of the reside name on Might 31, 2019, midnight. You should use the retry dial 1-800-408-3053 or 905-694-9451 followed by the password 8680836 #.

    About Extendicare

    Extendicare is a number one provider of elderly care and care providers all through Canada. We’re committed to offering quality care all through the health safety needs of the rising pensioner inhabitants. Beneath the brands Extendicare, Esprit Way of life and ParaMed, we have now 122 mum or dad care and pension facilities (68 owned / 54 managed) and home health care networks. A talented and well-trained workforce of about 23,00zero individuals is enthusiastic about providing high quality providers that help individuals reside better.

    Non-GAAP Measures

    Extendicare evaluates and measures performance and financial place "Net Income", "NOI", "NOI Margin", "Adjusted EBITDA", "Adjusted EBITDA", "AFFO", "AFFO per share "and" relationship ". In addition, the corporate estimates the return on investment in improvement utilizing non-GAAP financial help “NOI Yield”. These will not be recognized GAAP measures and would not have standardized meanings outlined by GAAP. These non-GAAP measures are set forth in this doc because either: (i) administration believes they are a vital measure of Extendice's capacity to earn cash transfers; or (ii) sure Extendice rights and obligations may be calculated via these measures. Such non-GAAP measures might differ from those reported by different issuers, in order that they is probably not similar to those reported by comparable issuers. They don’t seem to be meant to switch the end result (loss), internet profit (loss), money circulate, or different financial performance and liquidity indicators reported for persevering with operations as reported underneath GAAP. Detailed descriptions of those phrases and circumstances may be discovered in the Extendica disclosure paperwork, including the dialogue and evaluation of the administration that has been submitted to ESMA; These paperwork are available at www.sedar.com and on the Extendicare web site at www.extendicare.com

    Ahead-looking statements

    The knowledge offered by Extendica on occasion, together with this publication, consists of or might embrace a evaluate of the expected monetary advantages of Extendica and its subsidiaries. statements about events, results, circumstances, monetary efficiency, or expectations, including, with out limitation, statements referring to its business, enterprise technique, and financial standing. Forward-looking statements could be identified because they often include the phrases "wait", "intend", "anticipate", "believe", "estimate", "project", "plan" or "target" or different comparable expressions or unfavorable. Forward-looking statements mirror administration's beliefs and assumptions and are based mostly on presently obtainable info, and Extendicare shouldn’t be required to update or revise a forward-looking statement except in accordance with relevant securities legal guidelines. These statements do not assure future efficiency and are related to recognized and unknown dangers, uncertainties, and different elements which will trigger a big difference between the actual results, efficiency, or achievements of Extendice within the statements or assumptions made. Due to these dangers and uncertainties, readers are cautioned not to use pointless statements about Extendica's future. Additional info may be discovered within the disclosure documents offered by the Extendica to the regulatory authorities for securities, out there at www.sedar.com and on the Extendicare web site at www.extendicare.com.

    Extendicare Contact:
    David Bacon
    Government Vice President and Chief Monetary Officer
    Telephone: (905) 470-4000; Fax: (905) 470-4003
    E-mail: david.bacon@extendicare.com
    www.extendicare.com

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