SOURCE: Sienna Senior Living Inc.

Sienna Senior Living Inc.

August 11, 2015 16:24 ET

Sienna Senior Living Inc. Reports 2015 Second Quarter Financial Results

MARKHAM, ON--(Marketwired - August 11, 2015) - Sienna Senior Living Inc. (TSX: SIA) ("Sienna Senior Living" or the "Company") today announced its financial results for the three and six months ended June 30, 2015. The Unaudited Condensed Interim 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.

Second Quarter Highlights

  • Retirement Same Property NOI up 7.0%, as at occupancy up by 5.8% to 88.8%
  • Long-Term Care Same Property NOI up 1.1%
  • Overall Net Operating Income up by 3.8%
  • Completed name change of the Company to Sienna Senior Living Inc.

"The Company delivered strong financial and occupancy results for the second quarter of 2015," said Lois Cormack, President and CEO. "With the focus on the resident experience, strengthening our operating platform and redevelopment planning, as well as the benefit of renewed interest and traffic to our communities generated from the Company's rebranding, we believe that we are well positioned to continue to deliver stable financial performance and growth."

Financial and Operating Highlights:

             
   Three months
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 Three months
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 Six months
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 Six months
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  June 30, 2015  June 30, 2014  June 30, 2015  June 30, 2014
Average total occupancy (LTC)  98.5%  98.5 %  98.3%  98.5 %
Average private occupancy (LTC)  99.7%  99.1 %  99.3%  98.9 %
Average occupancy (Retirement)  87.0%  83.0 %  86.9%  83.1 %
As at occupancy (Retirement)  88.8%  83.0 %  88.8%  83.0 %
         
             
             
$000s except occupancy, per share and ratio data  Three months
ended
 Three months
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 Six months
ended
 Six months
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  June 30, 2015  June 30, 2014  June 30, 2015  June 30, 2014
Net Operating Income (NOI) (1,2)  $20,950  $20,175  $40,948  $39,703
Operating Funds from Operations (OFFO) (1)  $10,448  $10,892  $20,057  $20,256
OFFO per share diluted  $0.279  $0.290  $0.537  $0.540
Adjusted Funds from Operations (AFFO) (1)  $12,179  $13,047  $24,015  $24,751
AFFO per share diluted  $0.324  $0.345  $0.639  $0.655
AFFO per share basic  $0.335  $0.360  $0.661  $0.683
Dividends declared per share  $0.225  $0.225  $0.450  $0.450
Payout Ratio (3)  67.2%  62.5 %  68.1%  65.9 %
             

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 and six month periods ended June 30, 2015, the Company recorded MOHLTC reconciliation adjustments that decreased revenue and NOI by $536 and $511, respectively. The adjustments relate to the difference between the Company's annual reconciliation filings with the MOHLTC and their assessments of those filings as it relates to the 2007 and 2008 reconciliation years. 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 the basic AFFO per share divided by the dividends declared per share for the respective periods.
  

Second Quarter 2015

The Company generated NOI of $21.0 million for the period ended June 30, 2015, representing an increase of $0.8 million or 3.8% over the comparable prior year period.

General and administrative expenses included $0.3 million of restructuring charges, a mark-to-market adjustment for deferred share unit compensation of $0.1 million to reflect the increased share price and $0.1 million of rebranding costs.

OFFO decreased $0.4 million or 4.1% to $10.4 million and AFFO decreased $0.9 million or 6.7% to $12.2 million over the comparable prior year period. The decrease was principally related to restructuring charges and increased maintenance capex.

2015 First Half Results Summary

The Company generated NOI of $40.9 million for the six months ended June 30, 2015, representing an increase of $1.2 million or 3.1% over the comparable prior year period.

General and administrative expenses included restructuring charges of $0.3 million, rebranding costs of $0.2 million and a mark-to-market adjustment for deferred share unit compensation of $0.2 million to reflect the increased share price, partially offset by timing of other administrative expenses.

OFFO decreased $0.2 million or 1.0% to $20.1 million and AFFO decreased $0.7 million or 3.0% to $24.0 million over the comparable prior year period. The decrease was principally related to restructuring charges and increased maintenance capex.

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 Wednesday, August 12, 2015, at 11:00 a.m. (EST) to discuss the Company's financial and operating results. The dial-in numbers for participants are 416-340-8527 (for local callers) and 1-800-565-0813 (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 August 25, 2015. To access the replay, dial 905-694-9451 or 1-800-408-3053 (pass code: 9014952). The webcast will be archived on the Company's website.

About Sienna Senior Living

Sienna Senior Living Inc. (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 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. The Company owns and operates 35 long-term care homes and 10 retirement residences, representing a combined 6,799 beds/suites/apartments 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", "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 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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