Leisureworld Senior Care Corporation

Leisureworld Senior Care Corporation

February 25, 2015 16:55 ET

Leisureworld Senior Care Corporation Reports 2014 Fourth Quarter Financial Results

MARKHAM, ONTARIO--(Marketwired - Feb. 25, 2015) - Leisureworld Senior Care Corporation (TSX:LW) ("Leisureworld" or the "Company") today announced its financial results for the year ended December 31, 2014. The Audited Consolidated Financial Statements and Management's Discussion and Analysis are available on the Company's website at www.leisureworld.ca and on SEDAR at www.sedar.com.

Fourth Quarter Highlights

  • Retirement Same Property NOI up 1.5%, average occupancy up by 4.1% to 85.9%

  • Long Term Care Same Property NOI up 1.5%

  • Overall Net Operating Income up by 18%

  • Subsequent to Year End - announced rebranding and intent to change name to Sienna Senior Living

"In 2014, we successfully integrated the acquisition made in Q4 2013 and delivered solid results for the Company. Our team is making good progress on our retirement living strategy, with the quarter (Q4 2014) over quarter (Q3 2014) occupancy rate up by 1.9% to 86.8%," said Lois Cormack, President and CEO.

Financial and Operating Highlights:

$000s except occupancy, per share and ratio data Three months ended December 31, 2014 Three months ended December 31, 2013 Year ended December 31, 2014 Year ended December 31, 2013
Average total occupancy (LTC) 98.8 % 98.7 % 98.7 % 98.9 %
Average private occupancy (LTC) 99.8 % 99.4 % 99.4 % 99.3 %
Average occupancy (retirement with respite) (1) 85.9 % 81.8 % 84.1 % 78.2 %
As at occupancy (retirement with respite) (1) 86.8 % 82.9 % 86.8 % 82.9 %
Income before depreciation and amortization, net finance charges, transaction costs and the provision for (recovery of) income taxes $ 16,252 $ 13,512 $ 64,289 $ 49,541
Net Income (Loss) $ 204 $ (6,348 ) $ (15,841 ) $ (9,384 )
Net Operating Income (NOI) (2), (4) $ 20,678 $ 17,531 $ 81,800 $ 63,309
Operating Funds from Operations (OFFO) (3), (4) $ 10,445 $ 9,812 $ 41,772 $ 30,958
OFFO per share diluted $ 0.286 $ 0.304 $ 1.120 $ 1.016
Adjusted Funds from Operations (AFFO) (4) $ 11,204 $ 11,429 $ 48,296 $ 37,134
AFFO per share diluted $ 0.305 $ 0.351 $ 1.287 $ 1.211
AFFO per share basic $ 0.309 $ 0.362 $ 1.332 $ 1.243
Dividends declared per share $ 0.225 $ 0.225 $ 0.900 $ 0.900
Payout Ratio (5) 72.8 % 62.2 % 67.6 % 72.4 %
(1) The comparative periods exclude respite occupancy data as it was not captured for periods prior to 2014.
(2) For the three months and year ended December 31, 2014, the Company recorded Ministry of Health and Long-Term Care ("MOHLTC") reconciliation adjustments that decreased revenue and NOI by $269 and $1,294, respectively. The adjustments relate to the difference between the Company's annual reconciliation filings with the MOHLTC and the MOHLTC's assessments of those filings, primarily for the reconciliation years 2007 through to 2012 inclusive. These adjustments are based on current period confirmation with the MOHLTC and management's best estimate of the probability of recovery of the outstanding amounts, based on recent information and interpretation of the funding mechanism.
(3) As a result of adopting the REALpac funds from operations ("FFO") definition for presentation purposes in the first quarter of 2014, the Company has introduced the new measure of operating funds from operations ("OFFO"), which is equivalent to its historical presentation of FFO.
(4) Net operating income (loss) ("NOI"), FFO, OFFO and adjusted funds from operations ("AFFO") are not measures recognized under IFRS and do not have standardized meanings prescribed by IFRS. NOI, FFO, OFFO and AFFO are supplemental measures of a company's performance and management believes that NOI, FFO, OFFO and AFFO are relevant measures of its earnings performance and it's ability to pay dividends on the Company's common shares. The IFRS measurement most directly comparable to AFFO is cash flow from operations.
(5) Payout Ratio is calculated using the basic AFFO per share divided by the dividends declared per share for the respective periods.

Fourth Quarter 2014

The Company generated NOI of $20.7 million for the period ended December 31, 2014, representing an increase of $3.1 million or 18.0% over the comparable prior year period. On a same property basis, NOI increased $0.2 million or 1.1% to $15.8 million over the comparable prior year period.

General and administrative expenses included a mark to market adjustment for deferred share unit compensation of $0.12 million to reflect the increased unit price and $0.14 million of rebranding costs.

OFFO increased $0.6 million or 6.5% to $10.4 million over the comparable prior year period. The increase was principally related to transactional activity, improved same property NOI and lower net financing costs.

2014 Twelve Months Results Summary

Leisureworld generated NOI of $81.8 million for the year ended December 31, 2014. This represented an increase of $18.5 million or 29.2% over the comparable prior year period. On a same property basis, NOI was $62.3 million representing an increase of $1.3 million or 2.1% over the comparable prior year period.

OFFO increased $10.8 million or 34.9% to $41.8 million over the comparable prior year period. The increase was principally related to transaction activities and the improved NOI performance from same property activities.

Leisureworld Senior Care Corporation Announces Rebranding

On February 4, 2015, the Company announced its intention to rebrand itself as Sienna Senior Living. The rebranding follows several years of growth to become a diversified seniors living organization providing retirement living, home care, third party management and long-term care services to local Canadian communities. Management believes that the new identity will support the Company's brand philosophy aimed at delivering on "the warmth of human connection."

The legal name change from Leisureworld Senior Care Corporation to Sienna Senior Living Inc. will be effective on or about May 1, 2015, after approval by the Company's shareholders at the Company's Annual and Special Meeting of shareholders expected to be held on April 21, 2015.

Looking Ahead

"We are focused on the Company's growth strategy, including the redevelopment of older Long-term care homes, and the acquisition of long-term care, retirement residence and home care assets across Canada," said Ms. Cormack.

Conference Call

Lois Cormack, President and CEO, and Nitin Jain, Executive Vice President and CFO, will host a conference call on Thursday, February 26, 2015, at 9:00 a.m. (EST). The call-in numbers for participants are 416-340-8527 (local) and 1-800-565-0813. A webcast of the call will be accessible via the Company's website at: www.leisureworld.ca/Investors/Events-Presentations.aspx.

A replay of the call will be available until March 11, 2015. To access the replay, dial 905-694-9451 or 1-800-408-3053 (pass code: 6611603). The webcast will be archived on Leisureworld's website.

About Leisureworld

Leisureworld Senior Care Corporation (TSX:LW) is one of Canada's largest owners of seniors housing and the largest licensed long-term care provider in Ontario. Leisureworld's 7,500 employees are dedicated to helping you live fully, every day in each of its four lines of business: retirement living, home care, third party management services and long-term care. Leisureworld owns and operates 35 long-term care homes and 10 retirement residences, representing a combined 6,798 beds/suites across Ontario and British Columbia. For more information, please visit 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.

Contact Information

  • Leisureworld Senior Care Corporation
    Lois Cormack
    President and Chief Executive Officer
    (905) 415-7612

    Leisureworld Senior Care Corporation
    Nitin Jain
    Executive Vice President and Chief Financial Officer
    (905) 489-0787