SOURCE: Sienna Senior Living Inc.

Sienna Senior Living Inc.

February 24, 2016 16:41 ET

Sienna Senior Living Inc. Reports 2015 Fourth Quarter Financial Results

MARKHAM, ON--(Marketwired - February 24, 2016) -  Sienna Senior Living Inc. (TSX: SIA) ("Sienna Senior Living" or the "Company") today announced its financial results for the year ended December 31, 2015. The Audited Consolidated Financial Statements and accompanying Management's Discussion and Analysis are available on the Company's website at www.siennaliving.ca and on SEDAR at www.sedar.com.

Fourth Quarter Highlights

  • Continued Strong Retirement Performance - Same Property NOI up 20.4%, as at occupancy up by 6.8% to 93.6%
  • Long-Term Care Same Property NOI up 2.5%
  • Overall Net Operating Income up by 6.4%
  • Completed the acquisition of Traditions of Durham - 140-suite independent and assisted living retirement residence located in Oshawa, Ontario

Twelve Months Results

  • Excellent Retirement Performance - Same Property NOI up 13.0%, as at occupancy up by 6.8% to 93.6%
  • Long-Term Care Same Property NOI up 1.8%
  • Overall Net Operating Income up by 4.4%

"The Company experienced another strong quarter, with continued improvements in the Company's retirement residence portfolio, resulting in a 6.3% percent increase in Operating Funds from Operations (OFFO) per share over the comparable period in 2014," said Lois Cormack, President & Chief Executive Officer of the Company. "We were also pleased to end the year with the addition of Traditions of Durham to our growing portfolio of quality retirement residences."

Financial and Operating Highlights:

                 
    Three months
 ended
 December 31, 
2015
  Three months
 ended
 December 31, 
2014
  Year
 ended
 December 31, 
2015
  Year
 ended
 December 31, 
2014
Average total occupancy (LTC)   98.8%   98.8%   98.7%   98.7%
Average private occupancy (LTC)   99.9%   99.8%   99.8%   99.4%
Average occupancy (Retirement)   93.4%   85.9%   89.3%   84.1%
As at occupancy (Retirement)   93.6%   86.8%   93.6%   86.8%
                 
                 
$000s except occupancy, per share and ratio data  
 
 
 
Three months
ended
December 31,
2015
 
 
 
 
Three months
ended
December 31,
2014
 
 
 
 
Year
ended
December 31,
2015
 
 
 
 
Year
ended
December 31,
2014
Net Operating Income (NOI) (1,2)   $22,010   $20,678   $85,402   $81,800
Operating Funds from Operations (OFFO) (1)   $11,453   $10,445   $43,007   $41,772
OFFO per share diluted   $0.304   $0.286   $1.148   $1.120
Adjusted Funds from Operations (AFFO) (1)   $12,180   $11,204   $49,451   $48,296
AFFO per share diluted   $0.323   $0.305   $1.312   $1.287
AFFO per share basic   $0.334   $0.309   $1.359   $1.332
Dividends declared per share   $0.225   $0.225   $0.900   $0.900
Payout Ratio (3)   67.4%   72.8%   66.2%   67.6%
                 

Notes:

  1. NOI, FFO, OFFO and 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 its ability to pay dividends on the Company's common shares. The IFRS measurement most directly comparable to AFFO is cash flow from operations.
  2. For the three months and year ended December 31, 2015, the Company recorded Ministry of Health and Long Term Care (MOHLTC) reconciliation adjustments that decreased revenue and NOI by $95 and $606, respectively. The adjustments relate to the difference between the Company's annual reconciliation filings with the MOHLTC and their assessments of those filings, primarily for the reconciliation years 2008 through to 2014. These adjustments are based on current period correspondence with the MOHLTC and the Company's best estimate of the probability of recovery of the outstanding amounts.
  3. Payout Ratio is calculated using dividends declared per share divided by the basic AFFO per share for the respective periods.

Fourth Quarter 2015

The Company generated NOI of $22.0 million for the three months ended December 31, 2015, representing an increase of $1.3 million or 6.4% over Q4 2014.

OFFO for Q4 2015 increased by $1.0 million or 9.7% to $11.5 million compared to Q4 2014. The increase was driven by improved NOI contribution. AFFO for Q4 2015 increased by $1.0 million or 8.7% to $12.2 million compared to Q4 2014. Debt to Gross Book Value at the end of fourth quarter 2015 was 55.6%, a decrease of 80 bps compared to the end of fourth quarter 2014.

In December, 2015, the Company completed the acquisition of Traditions of Durham Retirement Residence, located in Oshawa, Ontario, for a purchase price of $37 million. Traditions of Durham is a 140-suite independent and assisted living residence.

2015 Twelve Months Results Summary

The Company generated NOI of $85.4 million for the year ended December 31, 2015, representing an increase of $3.6 million or 4.4% over 2014.

General and administrative expenses increased by $0.7 million or 4.1% to $18.2 million over 2014 primarily due to one-time rebranding costs of $0.5 million and inflationary increases in other administrative expenses.

OFFO increased by $1.2 million or 3.0% to $43.0 million over 2014. The increase was principally related to improved NOI contribution, partially offset by higher current income taxes and administrative expenses. AFFO increased by $1.2 million or 2.4% to $49.5 million over 2014.

Conference Call

Lois Cormack, President and CEO, and Nitin Jain, Executive Vice President and CFO, will host a conference call and live internet webcast for the investment community on Thursday, February 25, 2016, at 10:00 a.m. (EST) to discuss the Company's financial and operating results. The dial-in numbers for participants are 416-340-2220 (for local callers) and 1-866-225-9256 (for all other callers). A webcast of the call will be accessible via the Company's website at: www.siennaliving.ca/Investors/Events-Presentations.aspx.

A replay of the call will be available approximately 2 hours following the end of the call until March 9, 2016. To access the replay, dial 905-694-9451 or 1-800-408-3053 (pass code: 2797752). The webcast will be archived on the Company's website.

About Sienna Senior Living

Sienna Senior Living (TSX: SIA) is one of Canada's largest owners of seniors housing and the largest licensed long-term care provider in Ontario. The Company's 8,000 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. The Company owns and operates 35 long-term care homes and 11 retirement residences, representing a combined 6,939 beds/suites across Ontario and British Columbia. For more information, please visit www.siennaliving.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", "should", "could", "would", "forecast", "expect", "may", "might", "will", "estimate",  "plan", "budget", "intend", "project", "schedule", "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 the Company'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 the Company as at the date of this news release and speak only as at the date of this news release. The Company does not undertake any obligation to publicly update or revise any forward-looking statements except as may be required by applicable law.

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