Extendicare Announces 2018 Third Quarter Results

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MARKHAM, Ontario, Nov. 08, 2018 (GLOBE NEWSWIRE) -- Extendicare Inc. (“Extendicare” or the “Company”) (TSX: EXE) today reported results for the three and nine months ended September 30, 2018. Results are presented in Canadian dollars unless otherwise noted.

"Extendicare is a fundamentally strong company with a talented team devoted to caring for our clients and residents. We are operating in a market with enormous opportunity for growth," said Michael Guerriere, President and CEO of Extendicare. "My first priority as the incoming CEO is to unlock the growth potential in this business. We are working to accelerate LTC redevelopment and increase delivery capacity in our home care business as the first steps in that direction. I look forward to providing an update on our progress early in 2019."

The following is a summary of selected financial information for the three and nine months ended September 30, 2018 and 2017.

Consolidated Adjusted EBITDA from continuing operations improved by $0.4 million or 1.5% to $24.4 million this quarter, and represented 8.7% of revenue compared to 8.8% in the same 2017 period, reflecting the contribution from net operating income, partially offset by higher administrative and lease costs. Both periods included lump-sum executive compensation charges, net of the impact of forfeited non-cash share-based awards, of $1.7 million and $2.0 million, respectively.

Consolidated Adjusted EBITDA from continuing operations improved by $1.7 million or 2.4% to $71.7 million this period, and was unchanged at 8.6% of revenue, reflecting increased net operating income and lower administrative costs. Adjusted EBITDA from the Canadian operations improved by $4.1 million or 6.0%, and as a percentage of revenue was 8.7% compared to 8.4% in the same 2017 period. Adjusted EBITDA from the U.S. operations declined by $2.4 million reflecting lower investment income from the Captive, partially offset by a reduction in administrative costs.

Maintenance capex was $8.5 million in the first nine months of 2018, compared to $5.5 million in the same 2017 period, representing 1.0% and 0.7% of revenue, respectively. These costs fluctuate on a quarterly and annual basis with the timing of projects and seasonality. For the 2018 year, we are expecting to spend in the range of $11 million to $12 million in maintenance capex, and in the range of $40 million to $45 million in growth capex, excluding acquisitions, related primarily to the retirement development projects.

Our long-term debt, including convertible debentures, totalled $523.9 million as at September 30, 2018 (December 31, 2017 – $536.1 million), with a weighted average interest rate of 4.8%, and represented approximately 47% of our gross book value.

Our consolidated net interest coverage ratio for the trailing twelve months ended September 30, 2018, was 3.9 times. Net interest coverage is defined as Adjusted EBITDA divided by net interest, which represents interest expense, with capitalized interest added back, net of interest revenue. Excluding interest revenue, our interest coverage ratio was 3.4 times.   

Extendicare’s financial reports, including its Management’s Discussion and Analysis are available on our website at www.extendicare.com under the “Investors/Financial Reports” section. Also, a supplemental information package containing historical quarterly financial results and operating statistics and a list of our senior care centres can be found on the website under the same section.

More news and information about Extendicare Inc

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Globe Newswire: 22:00 GMT Thursday 8th November 2018

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