SOURCE: Sienna Senior Living Inc.

Sienna Senior Living Inc.

May 11, 2016 16:43 ET

Sienna Senior Living Inc. Reports 2016 First Quarter Financial Results

MARKHAM, ON--(Marketwired - May 11, 2016) -  Sienna Senior Living Inc. (TSX: SIA) ("Sienna Senior Living" or the "Company") today announced its financial results for the three months ended March 31, 2016. 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.

First Quarter 2016 Highlights

  • Overall Same Property Net Operating Income ("NOI") up 6.0%
  • Retirement Same Property NOI up 14.0%; As At Occupancy up 4.7% over Q1 2015
  • Subsequent to First Quarter:
    • Announced acquisition agreement for significant expansion in British Columbia and completion of a $138.3 million bought deal public offering of subscription receipts (inclusive of the exercise by underwriters of over-allotment option in full);
    • Announced closing of disposition of home care division (Preferred Health Care Services) to Spectrum Health Care LP

"We continued to deliver solid operating results in the first quarter of 2016," said Lois Cormack, President and Chief Executive Officer of Sienna. "We are also pleased to have recently announced the pending acquisition of a high-quality seniors housing portfolio in British Columbia, together with an interest in an established operating platform in the province. We believe the transaction represents a great opportunity to expand our presence in the British Columbia seniors housing market and leverage existing relationships, and is in line with our strategy to diversify, both with respect to the mix of seniors living assets in our portfolio and geographically."

Financial and Operating Highlights:

  Three months ended
March 31, 2016
Three months ended
March 31, 2015
Average total occupancy (LTC) 98.6% 98.1%
Average private occupancy (LTC) 99.7% 99.0%
Average occupancy (Retirement) 92.0% 86.9%
As at occupancy (Retirement) 91.5% 86.8%
     
$000s except occupancy, per share and ratio data Three months ended
March 31, 2016
Three months ended
March 31, 2015
Net Operating Income (NOI) (1) $21,440 $19,998
Operating Funds from Operations (OFFO) (1) $10,815 $9,609
OFFO per share, diluted $0.288 $0.258
Adjusted Funds from Operations (AFFO) (1) $13,189 $11,836
AFFO per share, diluted $0.348 $0.315
AFFO per share, basic $0.361 $0.326
Dividends declared per share $0.225 $0.225
Payout Ratio (2) 62.3% 69.0%
     

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)   Payout Ratio is calculated using dividends declared per share divided by the basic AFFO per share for the respective periods.
     

First Quarter 2016

The Company generated NOI of $21.4 million for the period ended March 31, 2016, representing an increase of $1.4 million or 7.2% over the comparable prior year period. Same property NOI increased by $1.2 million or 6.0% over the comparable prior year period.

General and administrative expenses were flat compared to Q1 2015.

OFFO increased $1.2 million or 12.6% to $10.8 million over the comparable prior year period. The increase was principally related to the improved NOI contribution noted above. AFFO increased $1.4 million or 11.4% to $13.2 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, May 12, 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 until May 25, 2016. To access the replay, dial 905-694-9451 or 1-800-408-3053 (pass code: 3890694). 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 lines of business: retirement living, long-term care and third-party management services. 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", "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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