Welcome!

Microsoft Cloud Authors: Pat Romanski, Jnan Dash, Andreas Grabner, Lori MacVittie, Jim Kaskade

News Feed Item

Leisureworld Senior Care Corporation Reports Strong 2012 Third Quarter Results, Increases Dividend

MARKHAM, ONTARIO -- (Marketwire) -- 11/07/12 -- Leisureworld Senior Care Corporation (TSX:LW) ("Leisureworld" or "the Company") today announced its financial results for the third quarter and nine months ended September 30, 2012. The Company also announced a 5.9% dividend increase, raising its monthly dividend to $0.075 per share, representing $0.90 per share on an annualized basis. The increase will be effective for Leisureworld's December 2012 dividend.

Percentage calculations in the following summary of Leisureworld's third quarter financial results are based on the numbers in the Financial Statements and/or Management's Discussion and Analysis, and may not correspond to rounded figures presented in this release. Full Financial Statements and Management's Discussion and Analysis are available on the Company's website at www.leisureworld.ca.

Financial Highlights


----------------------------------------------------------------------------
                             Quarter      Quarter  Nine months  Nine months 
$000s except per share    ended Sept   ended Sept   ended Sept   ended Sept 
 data                       30, 2012     30, 2011     30, 2012     30, 2011 
----------------------------------------------------------------------------
Average total occupancy                                                     
 (LTC)                          99.1%        98.9%        98.7%        98.5%
----------------------------------------------------------------------------
Average private                                                             
 occupancy (LTC)                99.0%        97.0%        98.2%        96.6%
----------------------------------------------------------------------------
Average occupancy                                                           
 (retirement and                                                            
 independent living)(1)         74.8%        59.5%        72.7%        63.4%
----------------------------------------------------------------------------
Net Loss                        (139)      (3,320)      (7,787)      (8,633)
----------------------------------------------------------------------------
Net Operating Income                                                        
 (NOI)(2)                     15,393       12,358       41,365       33,872 
----------------------------------------------------------------------------
Funds from Operations                                                       
 (FFO)(2)                      7,164        5,033       19,374       14,820 
----------------------------------------------------------------------------
Construction Funding                                                        
 (Principal)                   1,468        1,352        4,266        4,041 
----------------------------------------------------------------------------
Maintenance Capex               (465)         (93)        (833)        (530)
----------------------------------------------------------------------------
Adjusted Funds from                                                         
 Operations                                                                 
 (AFFO)(2)(3)                  9,095        7,656       25,731       19,825 
----------------------------------------------------------------------------
Basic AFFO per share      $   0.3111   $   0.3135   $   0.9631   $   0.8790 
----------------------------------------------------------------------------
Dividends declared per                                                      
 share                    $   0.2124   $   0.2124   $   0.6372   $   0.6372 
----------------------------------------------------------------------------
Basic AFFO payout ratio         68.3%        67.8%        66.2%        72.5%
----------------------------------------------------------------------------
 1. The 2011 retirement and independent living occupancy rates include the  
    addition of the Kingston and Kanata properties as of April 27, 2011,    
    which are currently in lease-up and not yet at stabilized occupancy. The
    2012 retirement and independent living occupancy rates include the      
    addition of the BC retirement properties as of May 24, 2012, with one of
    the properties (The Royale Astoria) currently in lease-up and not yet at
    stabilized occupancy.                                                   
                                                                            
 2. Net operating income (loss) ("NOI"), funds from operations ("FFO"), and 
    adjusted funds from operations ("AFFO") are not measures recognized     
    under IFRS and do not have standardized meanings prescribed by IFRS.    
    NOI, FFO and AFFO are supplemental measures of a company's performance  
    and Leisureworld believes that NOI, FFO and AFFO are relevant measures  
    of its ability to pay dividends on the Company's common shares. The IFRS
    measurement most directly comparable to NOI, FFO and AFFO is net income 
    (loss).                                                                 
                                                                            
 3. AFFO includes adjustments of $0, $65, $52 and $29, respectively, for    
    HRIS expenses; and $928, $1,299, $2,872 and $2,204, respectively, for   
    income support.                                                         

"We achieved a 24.6% increase in Net Operating Income and an 18.8% increase in Adjusted Funds from Operations, compared to the third quarter a year ago. Our year-to-date payout ratio is 66.2%. This strong performance was driven by growth in both our LTC and retirement residence portfolios. With our continued strong performance, our board today approved a 5.9% increase to our shareholder dividend, demonstrating confidence in the sustainability of Leisureworld's cash flows and growth potential," said Dino Chiesa, Interim CEO and Chairman of Leisureworld. "Growth in our LTC portfolio was driven by increased funding, the acquisition of the Madonna LTC home in Orleans, Ontario, which we closed early in the quarter, and disciplined cost management. Our retirement residence portfolio growth resulted primarily from the acquisition of the BC retirement properties in our second quarter, and higher occupancy rates in the Ontario portfolio."

"Looking ahead, our growth strategy remains focused on: ensuring exceptional quality seniors care and services, supporting and increasing our occupancy rates, maintaining disciplined cost management, building our presence across the continuum of seniors living in Canada, and maintaining a strong balance sheet and reliable shareholder dividends," added Mr. Chiesa.

During the second quarter, Leisureworld completed the acquisition of three luxury retirement residences in the Greater Vancouver Area in British Columbia ("the BC Portfolio"), which include The Royale Pacifica, The Royale Peninsula and The Royale Astoria. The BC portfolio purchase consideration included an income support agreement of $2.0 million for The Royale Astoria, to be held in escrow as an income guarantee to supplement cash flow during the lease-up period.

On July 16, 2012, Leisureworld closed the acquisition of the Madonna LTC home, a 160-bed, "A" Class Long-Term Care (LTC) residence in Orleans, Ontario. The property's current occupancy rate is in excess of 97% and includes a 60/40 private/shared accommodation ratio.

For the quarter ended September 30, 2012, Leisureworld's Net Operating Income (NOI) increased 24.6% to $15.4 million, compared to $12.4 million in the third quarter a year ago. The Company's LTC operations generated NOI of $11.9 million, compared to $11.1 million for the third quarter 2011. The increase was primarily attributable to the inclusion of NOI from the Madonna acquisition, increased funding and higher private occupancy rates, partly offset by higher property operating costs. Leisureworld's retirement residence portfolio generated a $2.3 million increase in NOI mainly as a result of the acquisition of the BC Portfolio. NOI for the Company's Preferred Health Care Services (PHCS) subsidiary decreased by $80,000 compared to third quarter 2011 results. This decrease was due to higher staffing costs to accommodate increased volumes and a temporary increase to operating costs.

Leisureworld generated $7.2 million in Funds from Operations (FFO) in the third quarter of 2012, an increase of 42.3% from $5.0 million in the third quarter a year ago. The increase reflects higher NOI in the quarter and a higher transaction costs add-back of $0.4 million. Increased FFO was partly offset by increased finance charges of $0.6 million, higher administrative expenses and current income taxes of $0.5 million and $0.2 million, respectively. The net finance charges increased due to the debt assumed in relation to the acquisition of the BC Portfolio and interest on the mortgage assumed on the Madonna acquisition. This was partly offset by lower interest charges on the credit facility related to the acquisition of the Ontario portfolio, as the Company paid down $20.0 million of this facility during the quarter.

Adjusted Funds from Operations (AFFO) for the third quarter of 2012 increased 18.8% to $9.1 million, compared with $7.7 million in the third quarter of 2011. Increased AFFO was primarily attributable to increased FFO in the quarter, partly offset by lower income support and higher maintenance capital expenditures.

Dividends declared by Leisureworld in the quarter were $0.2124 per share and Basic AFFO per share was $0.3110, representing a quarterly payout ratio of 68.3%. Leisureworld's payout ratio in the third quarter of 2011 was 67.8%.

Leisureworld generated total revenue of $82.9 million for the quarter ended September 30, 2012, an increase of 13.1% from $73.3 million in the third quarter a year ago. LTC contributed approximately $4.5 million of the increase, primarily as a result of the Madonna property acquisition and increased government funding. Retirement residence revenue accounted for $4.3 million of the increase, primarily as a result of the addition of the BC properties acquired late in the second quarter as well as increased revenues from the Ontario Portfolio due to higher occupancy levels. PHCS contributed $0.9 million of the revenue increase, primarily due to a rise in personal support contract volumes.

The Company's net loss was $0.1 million in the third quarter of 2012 compared to a net loss of $3.3 million in the third quarter of 2011. This improvement resulted primarily from higher income from operations, largely attributable to the retirement portfolio acquisitions, as well as reduced depreciation and amortization charges. This was partly offset by a $0.1 million tax expense, compared to an income tax recovery of $1.1 million in the third quarter of 2011. The increase in current taxes was primarily driven by earnings attributable to the Madonna and BC Portfolio acquisitions.

For the nine months ended September 30, 2012, NOI was $41.4 million, up 22.1% from $33.9 million in the corresponding period in 2011. LTC contributed $2.4 million of the NOI increase, reflecting increased LTC funding, preferred accommodation premiums, lower utility costs and higher management fees. The retirement portfolio contributed a $4.7 million increase in NOI, attributable to continued lease-up of the Ontario Portfolio and the recent acquisition of the BC Portfolio. PCHS contributed $0.4 million to the increase in NOI. AFFO for the first nine months of 2012 increased 29.8% to $25.7 million from $19.8 million in the first nine months of 2011. Favourable FFO contributed $4.6 million to the increase, partly offset by higher maintenance capital expenditures. Other factors contributing to the AFFO increase include higher income support draws, increased principal portion of construction funding and the prior year reduction associated with the income tax book to filing adjustment, which did not recur in the current year. Dividends declared by Leisureworld in the first nine months of 2012 totaled $0.6372 per share and Basic AFFO per share was $0.9631, representing a payout ratio of 66.2% for the period.

For the nine months ended September 30, 2012, the Company's net loss was $7.8 million, compared to $8.6 million in the same period a year ago. The decreased net loss resulted from higher income from operations of $6.7 million and from lower expenses related to depreciation and amortization, partly offset by a $7.0 million increase in income tax expense over the comparable period last year, and a one-time $2.7 million impairment loss related to the write down of the Company's Human Resource Information System in the second quarter.

For the nine months ended September 30, 2012, total tax expense was $2.6 million compared to a recovery of $4.4 million last year. The variance was primarily a result of the rate adjustment in deferred taxes of $3.8 million as well as the book to filing tax adjustment in the third quarter of the prior year. The Company also had higher earnings associated with the performance of the acquired portfolios.

"Occupancy rates for the Royale Ontario retirement properties in Kingston and Kanata at quarter end were 71.3% and 68.4%, respectively. As at September 30, 2012, we had drawn down the full amount of income support related to these properties. We do not expect this to have a significant impact on our AFFO or payout ratio during the remainder of the lease-up period. We continue to target stabilized occupancy in the second half of 2013," said Manny DiFilippo, Chief Financial Officer. "As at September 30, 2012, $0.7 million had been drawn down from our $2.0 million in income support funds related to the Royale Astoria in Port Coquitlam, B.C., which is in-line with our financial performance expectations related to the Royale Astoria. We expect this property to reach stabilized occupancy by early 2014."

As at September 30, 2012, the Company's debt to gross book value ratio was 52.1%. The debt is represented by: 4.814% Series A Senior Secured Notes due November 24, 2015, rated "A- (stable)" by Standard & Poor's Rating Services and "A (stable)" by Dominion Bond Rating Service Limited; $35.0 million drawn from the $61.5 million available revolving credit facility; a one-year $26.1 million term loan; a two-year $26.0 million term loan; an assumed $23.7 million mortgage that matures on January 1, 2017 and an assumed $15.7 million mortgage. Leisureworld had cash and cash equivalents at quarter end totaling $20.1 million and a further committed undrawn revolving credit facility with a Canadian chartered bank of $10.0 million for working capital purposes. As at September 30, 2012, Leisureworld had 29,272,889 common shares issued and outstanding.

Conference Call

Dino Chiesa, Chairman and Interim CEO, and Manny DiFilippo, CFO, will host a conference call for the investment community on Thursday, November 8, 2012 at 1:00 p.m. (ET). The call-in numbers for participants are 416-695-6616 or 800-355-4959. The call will be webcast at: http://www.gowebcasting.com/3946.

A replay of the call will be available until November 22, 2012. To access the replay, dial 905-694-9451 or 800-408-3053 (pass code: 9211730). The webcast archive will be available via Leisureworld's website or the web link above.

About Leisureworld

Leisureworld Senior Care Corporation is Canada's fifth largest operator of seniors' housing and the third largest licensed long-term care (LTC) provider in Ontario. Leisureworld owns and operates 27 LTC homes across Ontario with 4,474 beds. The Company also owns and operates six retirement residences and one independent living residence, representing 768 suites, in Ontario and British Columbia. Leisureworld subsidiaries include: Preferred Health Care Services, an accredited provider of professional nursing and personal support services; and Ontario Long Term Care, a provider of purchasing services, and dietary, social work, and other regulated health professional services. For more information, please visit the Company's website at www.leisureworld.ca.

Forward-Looking Statements

Certain of the statements contained in this news release are forward-looking statements and are provided for the purpose of presenting information about management's current expectations and plans relating to the future. Readers are cautioned that such statements may not be appropriate for other purposes. These statements generally use forward-looking words, such as "anticipate", "continue", "could", "expect", "may", "will", "estimate", "believe" or other similar words and include, among other things, statements related to the Company's financial results or strategic plans. These statements are subject to significant known and unknown risks and uncertainties that may cause actual results or events to differ materially from those expressed or implied by such statements and, accordingly, should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. The forward-looking statements in this news release are based on information currently available and what management currently believes are reasonable assumptions, including the funding of long-term care facilities by government entities. Other material factors or assumptions that were applied in formulating the forward-looking statements contained herein include the assumption that the business and economic conditions affecting Leisureworld's operations will continue substantially in their current state, including, with respect to industry conditions, general levels of economic activity and government regulations.

Although management believes that it has a reasonable basis for the expectations reflected in these forward-looking statements, actual results may differ from those suggested by the forward-looking statements for various reasons. The assumptions, risks and uncertainties described above are not exhaustive and other events and risk factors could cause actual results to differ materially from the results and events discussed in the forward-looking statements. These forward-looking statements reflect current expectations of Leisureworld as at the date of this news release and speak only as at the date of this news release. Leisureworld does not undertake any obligation to publicly update or revise any forward-looking statements except as may be required by applicable law.

Contacts:
Leisureworld Senior Care Corporation
Manny DiFilippo
Chief Financial Officer
(905) 489-0787
www.leisureworld.ca

Bruce Wigle
Investor Relations
(416) 447-4740 ext. 232

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
Internet of @ThingsExpo, taking place June 6-8, 2017 at the Javits Center in New York City, New York, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @ThingsExpo New York Call for Papers is now open.
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
"LinearHub provides smart video conferencing, which is the Roundee service, and we archive all the video conferences and we also provide the transcript," stated Sunghyuk Kim, CEO of LinearHub, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
Discover top technologies and tools all under one roof at April 24–28, 2017, at the Westin San Diego in San Diego, CA. Explore the Mobile Dev + Test and IoT Dev + Test Expo and enjoy all of these unique opportunities: The latest solutions, technologies, and tools in mobile or IoT software development and testing. Meet one-on-one with representatives from some of today's most innovative organizations
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 7-9, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and E...
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
WebRTC sits at the intersection between VoIP and the Web. As such, it poses some interesting challenges for those developing services on top of it, but also for those who need to test and monitor these services. In his session at WebRTC Summit, Tsahi Levent-Levi, co-founder of testRTC, reviewed the various challenges posed by WebRTC when it comes to testing and monitoring and on ways to overcome them.
"A lot of times people will come to us and have a very diverse set of requirements or very customized need and we'll help them to implement it in a fashion that you can't just buy off of the shelf," explained Nick Rose, CTO of Enzu, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Every successful software product evolves from an idea to an enterprise system. Notably, the same way is passed by the product owner's company. In his session at 20th Cloud Expo, Oleg Lola, CEO of MobiDev, will provide a generalized overview of the evolution of a software product, the product owner, the needs that arise at various stages of this process, and the value brought by a software development partner to the product owner as a response to these needs.
WebRTC services have already permeated corporate communications in the form of videoconferencing solutions. However, WebRTC has the potential of going beyond and catalyzing a new class of services providing more than calls with capabilities such as mass-scale real-time media broadcasting, enriched and augmented video, person-to-machine and machine-to-machine communications. In his session at @ThingsExpo, Luis Lopez, CEO of Kurento, introduced the technologies required for implementing these idea...
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web co...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develop...
While not quite mainstream yet, WebRTC is starting to gain ground with Carriers, Enterprises and Independent Software Vendors (ISV’s) alike. WebRTC makes it easy for developers to add audio and video communications into their applications by using Web browsers as their platform. But like any market, every customer engagement has unique requirements, as well as constraints. And of course, one size does not fit all. In her session at WebRTC Summit, Dr. Natasha Tamaskar, Vice President, Head of C...
Who are you? How do you introduce yourself? Do you use a name, or do you greet a friend by the last four digits of his social security number? Assuming you don’t, why are we content to associate our identity with 10 random digits assigned by our phone company? Identity is an issue that affects everyone, but as individuals we don’t spend a lot of time thinking about it. In his session at @ThingsExpo, Ben Klang, Founder & President of Mojo Lingo, discussed the impact of technology on identity. Sho...