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.

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

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
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, will discuss how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team a...
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Eric Robertson, General Manager at CollabNet, will discuss how customers are able to achieve a level of transparency that e...
As software becomes more and more complex, we, as software developers, have been splitting up our code into smaller and smaller components. This is also true for the environment in which we run our code: going from bare metal, to VMs to the modern-day Cloud Native world of containers, schedulers and microservices. While we have figured out how to run containerized applications in the cloud using schedulers, we've yet to come up with a good solution to bridge the gap between getting your conta...
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abil...
SYS-CON Events announced today that Streamlyzer will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Streamlyzer is a powerful analytics for video streaming service that enables video streaming providers to monitor and analyze QoE (Quality-of-Experience) from end-user devices in real time.
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Established in 1998, Calsoft is a leading software product engineering Services Company specializing in Storage, Networking, Virtualization and Cloud business verticals. Calsoft provides End-to-End Product Development, Quality Assurance Sustenance, Solution Engineering and Professional Services expertise to assist customers in achieving their product development and business goals. The company's deep domain knowledge of Storage, Virtualization, Networking and Cloud verticals helps in delivering ...
Intelligent machines are here. Robots, self-driving cars, drones, bots and many IoT devices are becoming smarter with Machine Learning. In her session at @ThingsExpo, Sudha Jamthe, CEO of IoTDisruptions.com, will discuss the next wave of business disruption at the junction of IoT and AI, impacting many industries and set to change our lives, work and world as we know it.
The IoT industry is now at a crossroads, between the fast-paced innovation of technologies and the pending mass adoption by global enterprises. The complexity of combining rapidly evolving technologies and the need to establish practices for market acceleration pose a strong challenge to global enterprises as well as IoT vendors. In his session at @ThingsExpo, Clark Smith, senior product manager for Numerex, will discuss how Numerex, as an experienced, established IoT provider, has embraced a ...
DevOps theory promotes a culture of continuous improvement built on collaboration, empowerment, systems thinking, and feedback loops. But how do you collaborate effectively across the traditional silos? How can you make decisions without system-wide visibility? How can you see the whole system when it is spread across teams and locations? How do you close feedback loops across teams and activities delivering complex multi-tier, cloud, container, serverless, and/or API-based services?
Today every business relies on software to drive the innovation necessary for a competitive edge in the Application Economy. This is why collaboration between development and operations, or DevOps, has become IT’s number one priority. Whether you are in Dev or Ops, understanding how to implement a DevOps strategy can deliver faster development cycles, improved software quality, reduced deployment times and overall better experiences for your customers.
Cloud based infrastructure deployment is becoming more and more appealing to customers, from Fortune 500 companies to SMEs due to its pay-as-you-go model. Enterprise storage vendors are able to reach out to these customers by integrating in cloud based deployments; this needs adaptability and interoperability of the products confirming to cloud standards such as OpenStack, CloudStack, or Azure. As compared to off the shelf commodity storage, enterprise storages by its reliability, high-availabil...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...