SOURCE: Sienna Senior Living Inc.

Sienna Senior Living Inc.

November 11, 2015 17:21 ET

Sienna Senior Living Inc. Reports 2015 Third Quarter Financial Results

MARKHAM, ON--(Marketwired - November 11, 2015) - Sienna Senior Living Inc. (TSX: SIA) ("Sienna Senior Living" or the "Company") today announced its financial results for the three and nine months ended September 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.

Third Quarter Highlights

  • Excellent Retirement Performance - Same Property NOI up 13.5%, as at occupancy up by 7.4% to 92.3%
  • Long-Term Care Same Property NOI up 2.3%
  • Overall Net Operating Income up by 4.8%

"In the third quarter, the Company continues to deliver solid results with a 4.1% increase year over year in Operating Funds from Operations (OFFO) per share," said Lois Cormack, President & Chief Executive Officer of the Company, "resulting from the Company's stable Long-Term Care performance and continued progress with the Retirement portfolio. The Retirement division achieved as at occupancy of 92.3% and an increase of 13.5% same property Net Operating Income (NOI) over the comparable prior year period. The strong performance continues to position Sienna for growth and creating long term shareholder value."

Financial and Operating Highlights:

             
   Three months ended September 30, 2015  Three months ended September 30, 2014  Nine months ended September 30, 2015  Nine months ended September 30, 2014
Average total occupancy (LTC)  99.1%  98.9%  98.6%  98.6%
Average private occupancy (LTC)  99.9%  99.9%  99.7%  99.3%
Average occupancy (Retirement)  90.2%  84.3%  88.0%  83.5%
As at occupancy (Retirement)  92.3%  84.9%  92.3%  84.9%
         
             
$000s except occupancy, per share and ratio data  Three months ended September 30, 2015  Three months ended September 30, 2014  Nine months ended September 30, 2015  Nine months ended September 30, 2014
Net Operating Income (NOI) (1,2)  $22,444  $21,419  $63,392  $61,122
Operating Funds from Operations (OFFO) (1)  $11,497  $11,071  $31,554  $31,327
OFFO per share diluted  $0.306  $0.294  $0.843  $0.834
Adjusted Funds from Operations (AFFO) (1)  $13,256  $12,341  $37,271  $37,092
AFFO per share diluted  $0.351  $0.327  $0.989  $0.982
AFFO per share basic  $0.364  $0.340  $1.025  $1.023
Dividends declared per share  $0.225  $0.225  $0.675  $0.675
Payout Ratio (3)  61.8%  66.2%  65.9%  66.0%
         

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 nine month periods ended September 30, 2015, the Company recorded Ministry of Health and Long Term Care (MOHLTC) reconciliation adjustments that decreased revenue and NOI by $nil 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 dividends declared per share divided by the basic AFFO per share for the respective periods.

Third Quarter 2015

The Company generated NOI of $22.4 million for the period ended September 30, 2015, representing an increase of $1.0 million or 4.8% over the comparable prior year period.

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

OFFO increased $0.4 million or 3.8% to $11.5 million over the comparable prior year period. The increase was principally related to improved NOI contribution. AFFO increased $0.9 million or 7.4% to $13.3 million over the comparable prior year period. The increase was principally related to the increase in OFFO noted above and lower maintenance capex due to timing of spend.

2015 Nine Months Results Summary

The Company generated NOI of $63.4 million for the nine months ended September 30, 2015, representing an increase of $2.3 million or 3.7% over the comparable prior year period.

General and administrative expenses included rebranding costs of $0.3 million and a mark-to-market adjustment for deferred share unit compensation of $0.5 million to reflect the increased share price.

OFFO increased $0.2 million or 0.7% to $31.6 million over the comparable prior year period. The increase was principally related to improved NOI contribution.

AFFO increased $0.2 million or 0.5% to $37.3 million over the comparable prior year period. The increase was principally related to the increase in OFFO noted above.

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, November 12, 2015, at 9:00 a.m. (EST) to discuss the Company's financial and operating results. The dial-in numbers for participants are 416-340-2216 (for local callers) and 1-866-223-7781 (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 November 25, 2015. To access the replay, dial 905-694-9451 or 1-800-408-3053 (pass code: 1626317). 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 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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