Amica Mature Lifestyles Inc.
TSX : ACC

Amica Mature Lifestyles Inc.

October 13, 2006 09:00 ET

Amica Mature Lifestyles Announces First Quarter Results for Fiscal 2007

Conference Call to Be Held October 13, 2006

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 13, 2006) - Mr. Samir Manji, Chairman, President and CEO of Amica Mature Lifestyles Inc. (the "Company") (TSX:ACC), a leader in the management, marketing, design and development of luxury housing and services for mature lifestyles, is pleased to announce the Company's results for the three month period ended August 31, 2006.

Highlights of the First Quarter

The Company is very pleased with its performance in the first quarter of fiscal 2007. The quarter was highlighted by strong growth in our cash flow from continuing operations, increasing by 12% compared to the first quarter of last year, and the introduction of our first ever dividend program. These key accomplishments, combined with the pipeline of new opportunities currently under review and continued strength in our overall operating results, provide a positive outlook for the balance of the fiscal year.

- EBITDA(1) increased $0.3 million to $3.0 million.

- MARPAS(2) increased 3.4% on a same community(3) basis.

- Cash flow from operations increased $0.2 million to $1.8 million.

- Net earnings attributable to common shareholders increased $0.2 million to $0.5 million.

- Per share net earnings increased $0.02 per share to $0.04 per share.

- Basic cash flow per share increased $0.02 per share to $0.13 per share.

We continue to witness strong demand for our luxury retirement residences in most of the markets in which we operate. Strong operating results, including overall occupancy levels over 98% in our mature communities, have been a key contributor to the financial results achieved to date this fiscal year.

Our operating results continue to meet or exceed our goals. This is largely due to the efforts of our committed team of employees and the execution of our strategy, combined with the strength of the Amica brand in the markets in which we operate. Many of our communities continue to achieve 100% occupancy levels.

The increases in rents and continued strong occupancy levels have collectively contributed to the MARPAS growth we have witnessed on a year over year basis. We are also witnessing strong momentum in the lease-up at Amica at City Centre and Amica at Newmarket. Both of these communities opened during our last fiscal year and have achieved over 65% lease-up in their independent living suites.

On August 10th, 2006, the Company initiated a dividend program which commenced with a quarterly dividend of five cents per share, as of record date August 31, 2006. The initiation of our dividend program is the product of many years of hard work and commitment by our loyal and dedicated team of employees and the confidence and patience that our shareholders have shown us. This makes this milestone achievement that much more meaningful to all of us at Amica.

Subsequent to our first quarter, Amica announced its first long term management contract for fiscal 2007, Amica at Whitby. The $30 million luxury retirement residence, located in Whitby, Ontario, will consist of 139 suites, including a 31 suite assisted living floor. The Company has an 18% equity interest in Amica at Whitby and will provide $2.5 million in mezzanine financing, at an interest rate of 10%.

The Amica at Whitby management contract is our sixth consecutive 99 year contract. Amica will earn a base management fee of 6% of gross revenues and an annual profit participation of 30% of any net operating income in excess of a base threshold equal to 9.5% of the final project costs. The threshold remains fixed for the entire 99 year term of the contract.

There are now six Amica Wellness & Vitality™ Residences under development, each with a long term management contracts ranging from 50 years to 99 years. These six developments collectively represent over $235 million of developments, including the condominiums that form part of the Amica at Bayview Gardens (Toronto, Ontario) development.

Looking Ahead

In the latter part of this fiscal year, we will complete the construction of our condominiums at The Watermark (Amica at West Vancouver, West Vancouver, British Columbia) and Claridges (Amica at Bayview, Toronto, Ontario). We have achieved over 99% sales at our condominiums at Amica at City Centre (Mississauga, Ontario) which opened last fiscal year and we are confident that the condominiums that are slated to complete this fiscal year will achieve similar success. Residents who move into these condominiums will also participate in the programs and services offered in the retirement residence connected to their respective condominium building and will therefore contribute to the revenue generated in these communities.

We continue to dedicate significant resources to our business development efforts. There are many opportunities that are currently under review and we are optimistic that these efforts will generate additional long term management contracts in the months ahead. These opportunities are often the product of relationships that we have successfully established with strong local development partners in our current markets where we operate and new markets that we are considering.

Our goal is to generate a minimum of five new long term management contracts during fiscal 2007. Some of these communities will be in markets where we already operate, while others will be in new markets where we are able to establish relationships with developer partners who share our vision. These will be markets where we believe the demand exists for luxury residences for seniors who are looking for a lifestyle consistent with that is represented by the Amica brand and philosophy.

Our people continue to be the backbone of our Company. Their commitment, dedication and passion are key reasons we have witnessed such success. They also represent the foundation that will enable us to move forward in our pursuit of being "The best in the world at delivering superior Wellness & Vitality™ within exceptional independent living retirement communities."

Dividend

The Company's Board of Directors has approved a dividend of $0.05 per share on all issued and outstanding common shares which will be payable on December 15, 2006 to shareholders of record on November 30, 2006.

Management's Discussion and Analysis

The following Management's Discussion and Analysis ("MD&A") for the three months ended August 31, 2006, is provided as of October 12, 2006. It should be read in conjunction with the interim consolidated financial statements for the same period and the MD&A (which includes a discussion of business risks) and audited consolidated financial statements for the year ended May 31, 2006. Except as disclosed in this MD&A, there has been no material change in the information disclosed in the MD&A for the year ended May 31, 2006. A summary of selected financial data for the past eight quarters is disclosed in note 2.

All dollar amounts referred to in this document are in Canadian dollars. The financial statements are prepared in accordance with Canadian generally accepted accounting principles (GAAP). This document will contain reference to the following terms - EBITDA and MARPAS. Please refer to footnotes 1 and 2.

Financial Highlights



Management Operations
------------------------------------------------------------------------
------------------------------------------------------------------------
(Expressed in thousands THREE MONTHS ENDED THREE MONTHS ENDED
of dollars) AUGUST 31, 2006 AUGUST 31, 2005
------------------------------------------------------------------------
Management operations:
Revenues
Management fees from 100%
owned communities $ 435 $ 426
Management fees from less
than 100% owned communities 497 367
Design and marketing fees
from new developments under
construction 658 512
Other - 60
------------------------------------------------------------------------
1,590 1,365
General and administrative
expenses (1,527) (1,273)
------------------------------------------------------------------------
$ 63 $ 92
------------------------------------------------------------------------
------------------------------------------------------------------------

Ownership and Corporate Operations
------------------------------------------------------------------------
------------------------------------------------------------------------
(Expressed in thousands THREE MONTHS ENDED THREE MONTHS ENDED
of dollars) AUGUST 31, 2006 AUGUST 31, 2005
------------------------------------------------------------------------
Ownership and corporate
operations:
Retirement communities
operating revenues $ 8,901 $ 8,621
Income from equity-accounted
property 56 -
Distributions from investments 40 39
Expenses:
Retirement communities
operating (5,387) (5,353)
Corporate (146) (133)
Fees paid to and reported on
management operations (553) (551)
$ 2,911 $ 2,623
------------------------------------------------------------------------
------------------------------------------------------------------------

Cash Flow From Operations
------------------------------------------------------------------------
------------------------------------------------------------------------
(Expressed in thousands THREE MONTHS ENDED THREE MONTHS ENDED
of dollars) AUGUST 31, 2006 AUGUST 31, 2005
------------------------------------------------------------------------

Cash flow $ 1,833 $ 1,634
------------------------------------------------------------------------
------------------------------------------------------------------------

Per Share Cash Flow From Operations
------------------------------------------------------------------------
------------------------------------------------------------------------
(Expressed in thousands THREE MONTHS ENDED THREE MONTHS ENDED
of dollars) AUGUST 31, 2006 AUGUST 31, 2005
------------------------------------------------------------------------
Basic cash flow $ 0.13 $ 0.11
Diluted cash flow $ 0.12 $ 0.11
------------------------------------------------------------------------
------------------------------------------------------------------------


THREE MONTHS ENDED AUGUST 31, 2006

(Compared with the three months ended August 31, 2005.)

Operational Review and Analysis

(All properties are 100% owned unless stated otherwise.)

Overview

A comparison of the financial results for the three month period ended August 31, 2006, to the comparative period ended August 31, 2005, reflects the following: an increase in cash flow from operations of $0.2 million to $1.8 million; an increase in diluted cash flow per share of $0.01 per share to $0.12 per share; an increase in consolidated revenues of $0.5 million to $10.0 million; an increase in EBITDA(1) of $0.3 million to $3.0 million; and an increase in net earnings of $0.2 million to $0.5 million.

Management Operations

For the three month period ended August 31, 2006, fee revenues increased $0.2 million to $1.6 million and general and administrative expenses increased $0.2 million to $1.5 million, resulting in earnings from management operations of $0.1 million, the same as the prior period.

The $0.2 million increase in fee revenues is mainly due to an increase of $0.1 million in design and marketing fees from communities under development and $0.1 million of increases in management fees due to increased rents and occupancy levels at the retirement communities.

The $0.2 million increase in general and administrative expenses is mainly attributable to a $0.1 million increase in salaries and wages and a $0.1 million increase in stock option expense, primarily to build development and operating capacity.

Ownership Operations

Revenues

Retirement communities operating revenues increased $0.3 million to $8.9 million for the three month period ended August 31, 2006, as compared to the same period in 2005. The $0.3 million increase in retirement communities operating revenues is due to an increase in revenues from same communities(3).

Same community MARPAS(2) (monthly average revenue per available suite) increased 3.4% when compared to the comparative period.

Expenses

Retirement communities operating expenses remained at $5.4 million for the three month period ended August 31, 2006, the same as the prior year.

Earnings Before Other Operating Items (EBITDA)

As a result of the changes in management and ownership operations, EBITDA increased $0.3 million to $3.0 million.

Other Items

Interest expense

Interest expense increased $0.2 million to $1.7 million, mainly due to higher interest rates.

Interest and other income

Interest and other income increased $0.1 million when compared to the comparative prior period, mainly as a result of the Company earning a $0.1 million preferred equity return resulting from take-out financing on a co-tenancy investment.

Income taxes

Income taxes expense remained the same at $0.3 million in comparison with the prior comparative period.

Net earnings and earnings per share

For the three month period ended August 31, 2006, the Company had net earnings of $0.5 million ($0.04 per share basic and diluted earnings). For the three month period ended August 31, 2005, the Company had net earnings of $0.3 million ($0.02 per share basic and diluted earnings).

Balance Sheet Analysis

The following table summarizes the significant changes from May 31, 2006 in Amica's assets, liabilities and shareholders' equity:



(Expressed in millions Increase/
of dollars) (Decrease) Explanation
-----------------------------------------------------------------------
-----------------------------------------------------------------------

Income-producing
properties $ (0.1) - Capital expenditures increased
income-producing properties (IPP)
by $0.8
- Depreciation expense decreased
IPP by $0.9

Investment in co-tenancy
properties (0.7) - Return of equity in co-tenancy
properties decreased investment
in co-tenancy properties by $0.7

Mortgages and loans
receivable 0.9 - Loans provided to co-tenancy
properties increased mortgages
and loans receivable by $0.9

Other assets 1.1 - Refundable deposits increased
other assets by $0.8
- Net increases in prepaids and
receivables increased other
assets by $0.3

Mortgages payable (0.8) - Principal payments decreased
mortgages payable by $0.8

-----------------------------------------------------------------------
-----------------------------------------------------------------------


Cash Flow

Cash flow from operations increased $0.2 million as compared to the prior comparative period. After taking into consideration other changes in non-cash operating working capital, total cash flow increased $0.9 million to $0.9 million.

Liquidity and Capital Resources

The Company's cash balance at August 31, 2006, was $7.4 million. For the three month period ended August 31, 2006, cash flow generated from operations before changes in non-cash operating working capital was $1.8 million.

The Company anticipates that its cash on hand and cash generated from operations, together with, should the need arise, the equity available in its wholly owned assets available for mortgaging will be sufficient for it to meet its obligations and growth objectives for fiscal 2007, absent unusual investment occurrences.

The Company, in conjunction with its development participants, funds all funding shortfalls in operating co-tenancies and investments in co-tenancy properties under development. The Company charges interest on these advances and is indemnified by the other capital participants or co-tenancy investors. The Company may also provide guarantees in excess of its proportionate interest in the co-tenancies and is indemnified by the other investors. As at August 31, 2006, the Company provided financial guarantees totaling a maximum of $35.7 million, of which $30.2 million is currently outstanding. This compares to $24.8 million at August 31, 2005. These guarantees are for the indebtedness on certain properties in excess of the indebtedness otherwise disclosed in the consolidated financial statements. In management's opinion, in some cases supported by third-party appraisals, each property has a value, in excess of the obligations related to it.

On August 10, 2006, the Company announced the introduction of a dividend policy to pay a quarterly dividend. The Company declared a dividend of $0.05 per common share on all issued and outstanding common shares for shareholders of record on August 31, 2006, payable on September 15, 2006. A dividend payable of $731,000 is recorded in the financial statements at August 31, 2006.

During the quarter, the Company completed take-out financing on a property in which it holds a co-tenancy interest, and excess proceeds from the take-out financing resulted in the Company receiving a cash distribution of $0.5 million of the original investment.

On September 1, 2006, the Company refinanced a first mortgage on Amica at Arbutus Manor. The $22.4 million mortgage is for a 10 year term with an interest rate of 5.45% and is on a non-recourse basis. Excess funds of approximately $9.4 million resulting from the refinancing will be used to pay down the second mortgage during the second quarter of fiscal 2007.
On September 7, 2006, the Company replaced a construction loan at Amica at Villa da Vinci with a $9.5 million bridge financing facility. The facility is for a maximum of 24 months at a rate of prime plus 0.75%.

In fiscal 2007, the Company expects to spend approximately $3.4 million on recurring capital expenditures.



Outstanding Share Data
------------------------------------------------------------------------
Designation Outstanding as of October 12, 2006
------------------------------------------------------------------------
Common shares 14,628,242
Options to acquire common shares 1,018,432
------------------------------------------------------------------------


Looking Ahead

The Company's business plan for fiscal 2007 focuses both on business expansion and improvement in all aspects of its business, with a view to continuing to realize its vision - "To Deliver Superior Wellness & Vitality™ within Exceptional Independent Living Retirement Communities". The Company's long term goal of establishing itself as the premier brand in the luxury independent living sector, together with strong, sustainable growth, should result in increased shareholder value.

While the Company has many departmental and corporate objectives in its business plan, the three key Company objectives in fiscal 2007 are:

- Increase cash flow from operations over fiscal 2006 by at least 10%.

- Increase MARPAS by at least 4.0%.

- Generate a minimum of five new management contracts.

A comprehensive business plan has been prepared in support of the execution of these key objectives. All departments within the Company have contributed to the development of its business plan, focusing on the evolution of the Company's business model. The Company is currently on track, and continues to expect that these objectives will be achieved.

From a long term perspective, the Company is focused on increasing shareholder value through an aggressive growth plan that extends beyond the Canadian market. It is anticipated that the Company will add five to seven new long term management contracts annually, over the next five years.

Executing this aggressive growth objective is expected to drive significant increases in cash flow from operations, EBITDA and net earnings.

Disclosure Controls and Procedures

The Company maintains a set of disclosure controls and procedures designed to ensure that information required to be disclosed in filings made pursuant to National Instrument 51-102 is recorded, processed, summarized and reported within the time periods specified in the Canadian Securities Administrators rules and forms. The Chief Executive Officer and Chief Financial Officer have evaluated the Company's disclosure controls and procedures as of August 31, 2006, and concluded that the Company's current disclosure controls and procedures are effective.

Operating Risks

The business of the Company is subject to many risks and uncertainties, and these remain substantially unchanged from those outlined in the Company's 2006 Annual MD&A.

Critical Accounting Policies

The significant accounting policies used by the Company in preparing its consolidated financial statements are described in note 2 to the consolidated financial statements for the year ended May 31, 2006, and should be read to ensure proper understanding and evaluation of the estimates and judgments made by management in preparing these financial statements. The Company's financial statements are prepared in accordance with Canadian generally accepted accounting principles.

Changes in Accounting Policies

During the first quarter there were no changes in the Company's accounting policies.

Additional Information

Additional information about the Company, including the most recent Annual Information Form, is available on SEDAR at www.sedar.com.

NOTES

1. Reconciliation of Net Earnings to EBITDA



------------------------------------------------------------------------
------------------------------------------------------------------------
(Expressed in thousands THREE MONTHS ENDED THREE MONTHS ENDED
of dollars) AUGUST 31, 2006 AUGUST 31, 2005
------------------------------------------------------------------------

Net earnings $ 525 $ 346
Add:
Interest expense 1,677 1,542
Depreciation and amortization 913 905
Income tax expense 294 332
Deduct:
Interest and other income (390) (335)
Non-controlling interest (45) (75)
------------------------------------------------------------------------
EBITDA $ 2,974 $ 2,715
------------------------------------------------------------------------
------------------------------------------------------------------------


2. Two Year Summary by Quarter



-----------------------------------------------------------------------
(Expressed
in thousands
of dollars, 4th Quarter 3rd Quarter 2nd Quarter
except 1st Quarter (4) (4) (4)
per share -------------------------------------------------------
amounts) 2007 2006 2006 2005 2006 2005 2006 2005
-----------------------------------------------------------------------

Consolidated
revenues from
continuing
operations $9,978 $9,474 $9,674 $9,835 $9,592 $9,685 $9,553 $9,474

Earnings (loss):
Management
operations $ 63 $ 92 $ (137)$ (61)$ 54 $ (179)$ (10)$ (84)
Ownership and
corporate
operations 2,911 2,623 3,057 3,012 2,640 3,051 2,839 2,718

Earnings before
other operating
items (EBITDA) $2,974 $2,715 $2,920 $2,951 $2,694 $2,872 $2,829 $2,634

Earnings (loss)
from continuing
operations $ 525 $ 346 $1,204 $1,396 $ 337 $ 72 $ 374 $ (34)

Earnings (loss)
from
discontinued
operations,
net of income
taxes $ - $ - $ - $ (317) $ - $ (688)$ - $ (16)

Net earnings
(loss)
attributable
to common
shareholders $ 525 $ 346 $1,204 $1,091 $ 337 $ (648)$ 374 $ (44)

Basic earnings
(loss) per
share:
Continuing
operations $ 0.04 $ 0.02 $ 0.08 $ 0.10 $ 0.02 $ - $ 0.03 $ -
Discontinued
operations - - - (0.02) - (0.05) - -
Net earnings
(loss)
attributable
to common
shareholders $ 0.04 $ 0.02 $ 0.08 $ 0.08 $ 0.02 $(0.05)$ 0.03 $ -

Diluted earnings
(loss) per
share:
Continuing
operations $ 0.04 $ 0.02 $ 0.08 $ 0.10 $ 0.02 $ - $ 0.03 $ -
Discontinued
operations - - - (0.02) - (0.05) - -
Net earnings
(loss)
attributable
to common
shareholders $ 0.04 $ 0.02 $ 0.08 $ 0.08 $ 0.02 $(0.05)$ 0.03 $ -

Cash flow from
operations:
Continuing
operations $1,833 $1,634 $1,352 $1,428 $1,528 $1,523 $1,570 $1,319
Discontinued
operations - - - 57 - 33 - 149
Total $1,833 $1,634 $1,352 $1,485 $1,528 $1,556 $1,570 $1,468

Basic per share
cash flow from
operations:
Continuing
operations $ 0.13 $ 0.11 $ 0.09 $ 0.12 $ 0.10 $ 0.12 $ 0.11 $ 0.11
Discontinued
operations - - - - - - - 0.02
Total $ 0.13 $ 0.11 $ 0.09 $ 0.12 $ 0.10 $ 0.12 $ 0.11 $ 0.13

Diluted per
share cash flow
from operations:
Continuing
operations $ 0.12 $ 0.11 $ 0.09 $ 0.12 $ 0.10 $ 0.12 $ 0.11 $ 0.11
Discontinued
operations - - - - - - - 0.02
Total $ 0.12 $ 0.11 $ 0.09 $ 0.12 $ 0.10 $ 0.12 $ 0.11 $ 0.13
-----------------------------------------------------------------------
(4) Quarterly results have been restated to reflect discontinued
operations.


Amica Mature Lifestyles Inc.

Amica Mature Lifestyles Inc., a Vancouver based public company, is a leader in the management, marketing, design and development of luxury housing and services for mature lifestyles. There are 21 Amica Wellness & Vitality™ Residences, including six under development. The common shares of Amica are traded on the Toronto Stock Exchange under the symbol "ACC".

Forward-Looking Information

This news release contains "forward-looking information" within the meaning of the Securities Act (Ontario) ("forward-looking statements"). These forward-looking statements are made as of the date of this news release and the Company does not intend, and does not assume any obligation, to update these forward-looking statements.

Forward-looking statements include, but are not limited to, statements concerning the number of management contracts expected to be added in this and future years, profit margin and earnings trends, expected future financing opportunities and other similar statements concerning anticipated future events, conditions or results that are not historical facts. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to dependence on the ability of Amica's co-tenancy participants to meet their obligations; interest rate volatility in the marketplace; job actions including strikes and labour stoppages; possible liability under environmental laws and regulations, relating to removal or remediation of hazardous or toxic substances on properties owned or operated by Amica; risks associated with new developments, including cost overruns and start-up losses; the ability of seniors to pay for Amica's services; operational risks inherent in owning and operating residences; the risks associated with global events such as infectious diseases, extreme weather conditions and natural disasters; the availability of capital to finance growth; Amica's ability to attract seniors with its services and keep pace with changing consumer preferences, as well as those factors described in Amica's Annual Information Form dated August 18, 2006 filed with the Canadian Securities Administrators and available at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

(1) EBITDA is equal to net earnings (loss) plus (i) income taxes expense plus (ii) interest expense plus (iii) depreciation and amortization less (iv) interest and other income less (v) non-controlling interest. EBITDA is the same as earnings before other operating items as disclosed in the consolidated financial statements. EBITDA is not intended to represent cash flow from operations as defined by generally accepted accounting principles, and EBITDA should not be considered as an alternative to net earnings, cash flow from operations or any other measure of performance prescribed by generally accepted accounting principles. EBITDA of Amica Mature Lifestyles Inc. may also not be comparable to EBITDA used by other companies, which may be calculated differently. EBITDA is included because the Company's management believes it can be used to measure the Company's performance, ability to service debt, fund capital expenditures and expand its business. See note 1 for a reconciliation of net earnings to EBITDA.

(2) MARPAS is defined by the Company as Monthly Average Revenue Per Available Suite and is equal to gross monthly revenues generated at the seniors residences divided by the number of suites. MARPAS is used by the Company to measure period-over-period performance of its properties.

(3) Same communities is defined by the Company as mature communities that were classified as income-producing properties for the full current fiscal year and the full prior comparative fiscal year.



Consolidated Balance Sheets

-----------------------------------------------------------------------
-----------------------------------------------------------------------
AUGUST 31 May 31
2006 2006
-----------------------------------------------------------------------
(Expressed in thousands of Canadian (unaudited) (audited)
dollars)

ASSETS

Properties:
Income-producing $ 118,941 $ 119,044
Property under development 1,304 1,196
Investment in co-tenancy properties 8,694 9,372
----------------------------------------------------------------------
128,939 129,612

Cash and cash equivalents 7,358 8,250
Management fees receivable 1,182 1,278
Mortgages and loans receivable 8,867 8,044
Land held for sale 4,102 4,065
Other assets 3,871 2,797
-----------------------------------------------------------------------
$ 154,319 $ 154,046
-----------------------------------------------------------------------
-----------------------------------------------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY

Mortgages payable $ 97,224 $ 97,956
Accounts payable and accrued
liabilities 5,126 5,101
Dividends payable 731 -
Future income taxes 5,597 5,353
Non-controlling interest 1,745 1,790
-----------------------------------------------------------------------
110,423 110,200
Shareholders' equity:
Share capital 39,188 39,096
Contributed surplus 2,006 1,842
Retained earnings 2,702 2,908
----------------------------------------------------------------------
43,896 43,846
-----------------------------------------------------------------------

$ 154,319 $ 154,046
-----------------------------------------------------------------------
-----------------------------------------------------------------------


Consolidated Statements of Operations and Retained Earnings

------------------------------------------------------------------------
------------------------------------------------------------------------
THREE MONTHS ENDED THREE MONTHS ENDED
AUGUST 31, 2006 AUGUST 31, 2005
------------------------------------------------------------------------
(Expressed in thousands of (unaudited) (unaudited)
Canadian dollars)

Consolidated revenues $ 9,978 $ 9,474
------------------------------------------------------------------------
------------------------------------------------------------------------
Management operations:
Revenues 1,590 1,365
General and administrative
expenses (1,527) (1,273)
-----------------------------------------------------------------------
63 92

Ownership and corporate
operations:
Retirement communities
operating revenues 8,901 8,621
Income from equity-accounted
property 56 -
Distributions from investments 40 39
Expenses:
Retirement communities
operating (5,387) (5,353)
Corporate (146) (133)
Fees to management operations (553) (551)
-----------------------------------------------------------------------
2,911 2,623
------------------------------------------------------------------------

Earnings before other operating
items 2,974 2,715

Depreciation and amortization (913) (905)
------------------------------------------------------------------------

Earnings from operations 2,061 1,810

Interest expense (1,677) (1,542)
Interest and other income 390 335
------------------------------------------------------------------------

Earnings before income taxes and
non-controlling interest 774 603

Income taxes:
Current expense 50 48
Future expense 244 284
-----------------------------------------------------------------------
294 332
------------------------------------------------------------------------

Earnings before non-controlling
interest 480 271

Non-controlling interest 45 75
------------------------------------------------------------------------

Net earnings 525 346

Retained earnings, beginning of
year 2,908 647
------------------------------------------------------------------------

Dividends declared (731) -

Retained earnings, end of year $ 2,702 $ 993
------------------------------------------------------------------------
------------------------------------------------------------------------

Basic earnings per share $ 0.04 $ 0.02

Diluted earnings per share $ 0.04 $ 0.02


Consolidated Statements of Cash Flows

------------------------------------------------------------------------
------------------------------------------------------------------------
THREE MONTHS ENDED THREE MONTHS ENDED
AUGUST 31, 2006 AUGUST 31, 2005
------------------------------------------------------------------------
(Expressed in thousands of (unaudited) (unaudited)
Canadian dollars)

Cash provided by (used in):

Operations:
Earnings from operations $ 525 $ 346
Items not involving cash:
Stock-based compensation 164 98
Depreciation and amortization 913 905
Amortization of deferred
financing costs 47 46
Future income taxes 244 284
Income from equity-accounted
property, in excess of cash
distributions (56) -
Non-controlling interest (45) (75)
Other 41 30
----------------------------------------------------------------------

Cash flow from operations
before changes in non-cash
operating working capital $ 1,833 $ 1,634
------------------------------------------------------------------------
------------------------------------------------------------------------

Operations:
Cash flow from operations
before changes in non-cash
operating working capital $ 1,833 $ 1,634
Other changes in non-cash
operating working capital (966) (1,621)
------------------------------------------------------------------------
867 13
Investments:
Investment in co-tenancy
properties 693 (158)
Mortgages and loans receivable,
net of recoveries (823) 187
Expenditures on income-
producing properties (810) (79)
Restricted cash 13 (26)
Land held for sale (37) -
Property under development (108) -
-----------------------------------------------------------------------
(1,072) (76)
------------------------------------------------------------------------

Financing:
Principal repayments on
mortgages payable (732) (1,123)
Deferred financing costs (47) -
Issuance of common shares for
cash, net of costs 92 334
-----------------------------------------------------------------------
(687) (789)
------------------------------------------------------------------------

Decrease in cash and cash
equivalents (892) (852)

Cash and cash equivalents,
beginning of year 8,250 19,542
------------------------------------------------------------------------

Cash and cash equivalents,
end of year $ 7,358 $ 18,690
------------------------------------------------------------------------
------------------------------------------------------------------------



Contact Information

  • Amica Mature Lifestyles Inc.
    Mr. Doug Allen
    Chief Financial Officer
    (604) 630-3473
    Email: d.allen@amica.ca
    or
    Amica Mature Lifestyles Inc.
    Ms. Alyssa Williams
    Investor Communications Administrator
    (604) 639-2171
    Email: a.williams@amica.ca
    Website: www.amica.ca