Leisureworld Senior Care Corporation

Leisureworld Senior Care Corporation

June 22, 2010 12:22 ET

Leisureworld to Acquire Licences for 88 Long-Term Care Beds

MARKHAM, ONTARIO--(Marketwire - June 22, 2010) - Leisureworld Senior Care Corporation (TSX:LW) today announced an agreement to acquire licences for 88 long-term care (LTC) beds from Christie Gardens Apartments and Care Inc., conditional on approval by the Ministry of Health and Long Term Care. These licences are in the Toronto area and will increase the company's total number of LTC beds by approximately 2%.

According to the terms of the agreement, Leisureworld will acquire the licences by March 31, 2013 at a cost of $2.2 million.  The company plans to add the additional capacity related to these licences in conjunction with its ongoing Capital Renewal program. Under this program, Leisureword intends to redevelop or retrofit its Class 'B' and 'C' beds, employing capital funded by the Ontario Government's Capital Renewal Initiative.

"We're very pleased to be able to acquire additional beds in the under-serviced Toronto market," said David Cutler, President and Chief Executive Officer of Leisureworld. "And, by adding this new capacity under our portfolio approach to upgrading beds to Class 'A' status, we can generate cost efficiencies that result in lower per bed construction costs, while also maintaining occupancy levels during construction. This flexibility underlines the financial and operating advantages available to Leisureworld by executing our capital renewal program on a portfolio basis."

About Leisureworld

Leisureworld is the third largest licensed long-term care provider in Ontario. The Company owns and operates 26 LTC homes, representing approximately 4,314 beds across Ontario, Canada. Leisureworld also owns and operates one retirement home with 29 beds and one independent living home with 53 apartments. Leisureworld subsidiaries include: Preferred Health Care Services, an accredited provider of professional nursing and personal support services; Ontario Long Term Care, a provider of purchasing services, dietary, social work, and other regulated health professional services; and Tealwood Developments, a provider of laundry services to the Leisureworld Homes.

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.

Contact Information

  • Leisureworld Senior Care Corporation
    Derek Henderson
    Investor Relations
    (416) 447-4740 ext 232