Welcome!

News Feed Item

Leisureworld Senior Care Corporation Reports 2014 First Quarter Financial Results

MARKHAM, ONTARIO -- (Marketwired) -- 05/13/14 -- Leisureworld Senior Care Corporation (TSX:LW) ("Leisureworld" or "the Company") today announced its financial results for the first quarter ended March 31, 2014. Interim Financial Statements and Management's Discussion and Analysis are available on the Company's website at www.leisureworld.ca and www.sedar.com.

First Quarter Highlights


--  Operating Funds from Operations (1) per share diluted were up 16%.  
--  Executed debt strategy with a bond refinancing, extending weighted
    average term of debt from 3.1 years to 5.5 years and reducing weighted
    average interest rate from 4.53% to 3.86%. 
--  Improvement in same property NOI of 5%. 

Lois Cormack, President and CEO of Leisureworld said, "We are very pleased with our performance during the first quarter of 2014. Despite the severe winter weather conditions impacting our operating costs and our occupancy, our operating results are showing strong improvements over the previous year."

Financial and Operating Highlights for March 31:


----------------------------------------------------------------------------
                                                       Quarter      Quarter 
                                                         ended        ended 
                                                     March 31,    March 31, 
$000s except occupancy, per share and ratio data          2014         2013 
----------------------------------------------------------------------------
Average total occupancy (LTC)                             98.5%        98.7%
----------------------------------------------------------------------------
Average private occupancy (LTC)                           98.7%        98.7%
----------------------------------------------------------------------------
Average occupancy (retirement)                            82.7%        75.1%
----------------------------------------------------------------------------
Income before other expenses and the provision for                          
 (recovery) of income taxes                         $   15,304   $   10,801 
----------------------------------------------------------------------------
Net Loss                                            $  (18,064)  $   (1,362)
----------------------------------------------------------------------------
Net Operating Income (NOI) 2                        $   19,528   $   13,970 
----------------------------------------------------------------------------
Operating Funds from Operations (OFFO) 1, 2         $    9,364   $    6,226 
----------------------------------------------------------------------------
OFFO per share diluted                              $    0.248   $    0.213 
----------------------------------------------------------------------------
Adjusted Funds from Operations (AFFO) 2             $   11,704   $    8,180 
----------------------------------------------------------------------------
AFFO per share diluted                              $    0.308   $    0.279 
----------------------------------------------------------------------------
AFFO per share basic                                $    0.323   $    0.279 
----------------------------------------------------------------------------
Dividends declared per share                        $    0.225   $    0.225 
----------------------------------------------------------------------------
Payout Ratio 3                                            69.7%        80.6%
----------------------------------------------------------------------------

1. As a result of adopting the REALpac FFO definition for presentation purposes in the first quarter of 2014, the Company has introduced the new measure of operating funds from operations ("OFFO"), which is equivalent to its historical presentation of funds from operations ("FFO").

2. Net operating income (loss) ("NOI"), funds from operations ("FFO"), operating funds from operations ("OFFO") and adjusted funds from operations ("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 Leisureworld 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 FFO, OFFO and AFFO is net income (loss).

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

First Quarter 2014

For the three months ended March 31, 2014, NOI was $19.5 million, up $5.6 million over the $14.0 million earned in the first quarter of 2013. On a same-asset basis, NOI improved 3% in the long term care business, 13% in the retirement home business and remained stable in home care.

During the quarter, the Company completed a bond refinancing. Leisureworld Senior Care LP, a subsidiary of the Company, issued $322 million of aggregate principal amount of 3.474% Series B Senior Secured Debentures with a maturity date of February 3, 2021 ("Series B Debentures"). The proceeds from the issuance of Series B Debentures were used to repay all of the outstanding 4.814% Series A Senior Secured Debentures due November 24, 2015 ("Series A Debentures"), and all associated fees and expenses. This refinancing extended the weighted average term to maturity of Leisureworld's long-term debt (including its outstanding convertible debentures) from 3.1 to 5.5 years, and reduced its weighted average interest rate from 4.53% to 3.86%.

This bond refinancing impacted the first quarter 2014 results due to the redemption premium paid to redeem the Series A Debentures being categorized as an expense for accounting purposes (no impact on OFFO or AFFO), and the fact that the Series A Debentures and Series B Debentures were both outstanding for a 21-day period in February, 2014 resulting in additional interest expense (impacts all measures).

Looking Ahead

"We operate four business lines, spanning the spectrum of seniors' living," said Ms. Cormack. "With the rapidly growing seniors' population, strong demand for seniors' services outside of hospitals and high barriers to entry in all of our businesses, Leisureworld is well-positioned for organic and external growth."

Conference Call

Lois Cormack, President and CEO, and Tim McSorley, CFO (Interim), will host a conference call for the investment community on Wednesday, May 14, 2014 at 9:00 a.m. (ET). The call-in numbers for participants are 416-340-8527 or 800-565-0813. A webcast of the call will be accessible via Leisureworld's website at: www.leisureworld.ca/Investors/Events-Presentations.aspx.

A replay of the call will be available until May 28, 2014. To access the replay, dial 905-694-9451 or 800-408-3053 (pass code: 3110744). The webcast will be archived on Leisureworld's website.

About Leisureworld

Leisureworld Senior Care Corporation is one of Canada's largest operators of seniors' housing and the largest licensed long-term care provider in Ontario. Leisureworld has 7,500 employees and owns and operates 35 long-term care homes across Ontario with 5,733 beds. Leisureworld also owns and operates 10 retirement residences, representing 1,065 suites, in Ontario and British Columbia. Under its management services division, Leisureworld provides management and consulting services to long-term care homes and retirement residences in Ontario. Leisureworld subsidiaries include Preferred Health Care Services, an accredited provider of professional nursing and personal support services. For more information, please visit Leisureworld's website at www.leisureworld.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 Leisureworld'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 Leisureworld as at the date of this news release and speak only as at the date of this news release. Leisureworld does not undertake any obligation to publicly update or revise any forward-looking statements except as may be required by applicable law.

Contacts:
Leisureworld Senior Care Corporation
Lois Cormack
President and Chief Executive Officer
(905) 415-7612

Leisureworld Senior Care Corporation
Tim McSorley
Chief Financial Officer (Interim)
(905) 477-4006 ext. 2089
www.leisureworld.ca

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
"We are a monitoring company. We work with Salesforce, BBC, and quite a few other big logos. We basically provide monitoring for them, structure for their cloud services and we fit into the DevOps world" explained David Gildeh, Co-founder and CEO of Outlyer, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
The current age of digital transformation means that IT organizations must adapt their toolset to cover all digital experiences, beyond just the end users’. Today’s businesses can no longer focus solely on the digital interactions they manage with employees or customers; they must now contend with non-traditional factors. Whether it's the power of brand to make or break a company, the need to monitor across all locations 24/7, or the ability to proactively resolve issues, companies must adapt to...
Cloud applications are seeing a deluge of requests to support the exploding advanced analytics market. “Open analytics” is the emerging strategy to deliver that data through an open data access layer, in the cloud, to be directly consumed by external analytics tools and popular programming languages. An increasing number of data engineers and data scientists use a variety of platforms and advanced analytics languages such as SAS, R, Python and Java, as well as frameworks such as Hadoop and Spark...
Cloud promises the agility required by today’s digital businesses. As organizations adopt cloud based infrastructures and services, their IT resources become increasingly dynamic and hybrid in nature. Managing these require modern IT operations and tools. In his session at 20th Cloud Expo, Raj Sundaram, Senior Principal Product Manager at CA Technologies, will discuss how to modernize your IT operations in order to proactively manage your hybrid cloud and IT environments. He will be sharing bes...
Join us at Cloud Expo June 6-8 to find out how to securely connect your cloud app to any cloud or on-premises data source – without complex firewall changes. More users are demanding access to on-premises data from their cloud applications. It’s no longer a “nice-to-have” but an important differentiator that drives competitive advantages. It’s the new “must have” in the hybrid era. Users want capabilities that give them a unified view of the data to get closer to customers and grow business. The...
Automation is enabling enterprises to design, deploy, and manage more complex, hybrid cloud environments. Yet the people who manage these environments must be trained in and understanding these environments better than ever before. A new era of analytics and cognitive computing is adding intelligence, but also more complexity, to these cloud environments. How smart is your cloud? How smart should it be? In this power panel at 20th Cloud Expo, moderated by Conference Chair Roger Strukhoff, paneli...
Artificial intelligence, machine learning, neural networks. We’re in the midst of a wave of excitement around AI such as hasn’t been seen for a few decades. But those previous periods of inflated expectations led to troughs of disappointment. Will this time be different? Most likely. Applications of AI such as predictive analytics are already decreasing costs and improving reliability of industrial machinery. Furthermore, the funding and research going into AI now comes from a wide range of com...
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
"When we talk about cloud without compromise what we're talking about is that when people think about 'I need the flexibility of the cloud' - it's the ability to create applications and run them in a cloud environment that's far more flexible,” explained Matthew Finnie, CTO of Interoute, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business...
SYS-CON Events announced today that GrapeUp, the leading provider of rapid product development at the speed of business, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market acr...
SYS-CON Events announced today that Ayehu will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara California. Ayehu provides IT Process Automation & Orchestration solutions for IT and Security professionals to identify and resolve critical incidents and enable rapid containment, eradication, and recovery from cyber security breaches. Ayehu provides customers greater control over IT infras...
What's the role of an IT self-service portal when you get to continuous delivery and Infrastructure as Code? This general session showed how to create the continuous delivery culture and eight accelerators for leading the change. Don Demcsak is a DevOps and Cloud Native Modernization Principal for Dell EMC based out of New Jersey. He is a former, long time, Microsoft Most Valuable Professional, specializing in building and architecting Application Delivery Pipelines for hybrid legacy, and cloud ...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.