Welcome!

Microsoft Cloud Authors: Lori MacVittie, Elizabeth White, Yeshim Deniz, Serafima Al, Janakiram MSV

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
We are seeing a major migration of enterprises applications to the cloud. As cloud and business use of real time applications accelerate, legacy networks are no longer able to architecturally support cloud adoption and deliver the performance and security required by highly distributed enterprises. These outdated solutions have become more costly and complicated to implement, install, manage, and maintain.SD-WAN offers unlimited capabilities for accessing the benefits of the cloud and Internet. ...
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science," is responsible for setting the strategy and defining the Big Data service offerings and capabilities for EMC Global Services Big Data Practice. As the CTO for the Big Data Practice, he is responsible for working with organizations to help them identify where and how to start their big data journeys. He's written several white papers, is an avid blogge...
DXWorldEXPO LLC, the producer of the world's most influential technology conferences and trade shows has announced the 22nd International CloudEXPO | DXWorldEXPO "Early Bird Registration" is now open. Register for Full Conference "Gold Pass" ▸ Here (Expo Hall ▸ Here)
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant tha...
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
I think DevOps is now a rambunctious teenager - it's starting to get a mind of its own, wanting to get its own things but it still needs some adult supervision," explained Thomas Hooker, VP of marketing at CollabNet, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Recently, WebRTC has a lot of eyes from market. The use cases of WebRTC are expanding - video chat, online education, online health care etc. Not only for human-to-human communication, but also IoT use cases such as machine to human use cases can be seen recently. One of the typical use-case is remote camera monitoring. With WebRTC, people can have interoperability and flexibility for deploying monitoring service. However, the benefit of WebRTC for IoT is not only its convenience and interopera...
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
It is of utmost importance for the future success of WebRTC to ensure that interoperability is operational between web browsers and any WebRTC-compliant client. To be guaranteed as operational and effective, interoperability must be tested extensively by establishing WebRTC data and media connections between different web browsers running on different devices and operating systems. In his session at WebRTC Summit at @ThingsExpo, Dr. Alex Gouaillard, CEO and Founder of CoSMo Software, presented ...
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, introduced two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a multip...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...
When shopping for a new data processing platform for IoT solutions, many development teams want to be able to test-drive options before making a choice. Yet when evaluating an IoT solution, it’s simply not feasible to do so at scale with physical devices. Building a sensor simulator is the next best choice; however, generating a realistic simulation at very high TPS with ease of configurability is a formidable challenge. When dealing with multiple application or transport protocols, you would be...
Detecting internal user threats in the Big Data eco-system is challenging and cumbersome. Many organizations monitor internal usage of the Big Data eco-system using a set of alerts. This is not a scalable process given the increase in the number of alerts with the accelerating growth in data volume and user base. Organizations are increasingly leveraging machine learning to monitor only those data elements that are sensitive and critical, autonomously establish monitoring policies, and to detect...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settl...
In his session at @ThingsExpo, Dr. Robert Cohen, an economist and senior fellow at the Economic Strategy Institute, presented the findings of a series of six detailed case studies of how large corporations are implementing IoT. The session explored how IoT has improved their economic performance, had major impacts on business models and resulted in impressive ROIs. The companies covered span manufacturing and services firms. He also explored servicification, how manufacturing firms shift from se...
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of bus...
The Jevons Paradox suggests that when technological advances increase efficiency of a resource, it results in an overall increase in consumption. Writing on the increased use of coal as a result of technological improvements, 19th-century economist William Stanley Jevons found that these improvements led to the development of new ways to utilize coal. In his session at 19th Cloud Expo, Mark Thiele, Chief Strategy Officer for Apcera, compared the Jevons Paradox to modern-day enterprise IT, examin...