Welcome!

Web 2.0 Authors: Lori MacVittie, Travis Olague, Trevor Parsons, Elizabeth White, Roger Strukhoff

News Feed Item

Leisureworld Senior Care Corporation Reports Strong 2012 Third Quarter Results, Increases Dividend

MARKHAM, ONTARIO -- (Marketwire) -- 11/07/12 -- Leisureworld Senior Care Corporation (TSX:LW) ("Leisureworld" or "the Company") today announced its financial results for the third quarter and nine months ended September 30, 2012. The Company also announced a 5.9% dividend increase, raising its monthly dividend to $0.075 per share, representing $0.90 per share on an annualized basis. The increase will be effective for Leisureworld's December 2012 dividend.

Percentage calculations in the following summary of Leisureworld's third quarter financial results are based on the numbers in the Financial Statements and/or Management's Discussion and Analysis, and may not correspond to rounded figures presented in this release. Full Financial Statements and Management's Discussion and Analysis are available on the Company's website at www.leisureworld.ca.

Financial Highlights


----------------------------------------------------------------------------
                             Quarter      Quarter  Nine months  Nine months 
$000s except per share    ended Sept   ended Sept   ended Sept   ended Sept 
 data                       30, 2012     30, 2011     30, 2012     30, 2011 
----------------------------------------------------------------------------
Average total occupancy                                                     
 (LTC)                          99.1%        98.9%        98.7%        98.5%
----------------------------------------------------------------------------
Average private                                                             
 occupancy (LTC)                99.0%        97.0%        98.2%        96.6%
----------------------------------------------------------------------------
Average occupancy                                                           
 (retirement and                                                            
 independent living)(1)         74.8%        59.5%        72.7%        63.4%
----------------------------------------------------------------------------
Net Loss                        (139)      (3,320)      (7,787)      (8,633)
----------------------------------------------------------------------------
Net Operating Income                                                        
 (NOI)(2)                     15,393       12,358       41,365       33,872 
----------------------------------------------------------------------------
Funds from Operations                                                       
 (FFO)(2)                      7,164        5,033       19,374       14,820 
----------------------------------------------------------------------------
Construction Funding                                                        
 (Principal)                   1,468        1,352        4,266        4,041 
----------------------------------------------------------------------------
Maintenance Capex               (465)         (93)        (833)        (530)
----------------------------------------------------------------------------
Adjusted Funds from                                                         
 Operations                                                                 
 (AFFO)(2)(3)                  9,095        7,656       25,731       19,825 
----------------------------------------------------------------------------
Basic AFFO per share      $   0.3111   $   0.3135   $   0.9631   $   0.8790 
----------------------------------------------------------------------------
Dividends declared per                                                      
 share                    $   0.2124   $   0.2124   $   0.6372   $   0.6372 
----------------------------------------------------------------------------
Basic AFFO payout ratio         68.3%        67.8%        66.2%        72.5%
----------------------------------------------------------------------------
 1. The 2011 retirement and independent living occupancy rates include the  
    addition of the Kingston and Kanata properties as of April 27, 2011,    
    which are currently in lease-up and not yet at stabilized occupancy. The
    2012 retirement and independent living occupancy rates include the      
    addition of the BC retirement properties as of May 24, 2012, with one of
    the properties (The Royale Astoria) currently in lease-up and not yet at
    stabilized occupancy.                                                   
                                                                            
 2. Net operating income (loss) ("NOI"), funds from operations ("FFO"), and 
    adjusted funds from operations ("AFFO") are not measures recognized     
    under IFRS and do not have standardized meanings prescribed by IFRS.    
    NOI, FFO and AFFO are supplemental measures of a company's performance  
    and Leisureworld believes that NOI, FFO and AFFO are relevant measures  
    of its ability to pay dividends on the Company's common shares. The IFRS
    measurement most directly comparable to NOI, FFO and AFFO is net income 
    (loss).                                                                 
                                                                            
 3. AFFO includes adjustments of $0, $65, $52 and $29, respectively, for    
    HRIS expenses; and $928, $1,299, $2,872 and $2,204, respectively, for   
    income support.                                                         

"We achieved a 24.6% increase in Net Operating Income and an 18.8% increase in Adjusted Funds from Operations, compared to the third quarter a year ago. Our year-to-date payout ratio is 66.2%. This strong performance was driven by growth in both our LTC and retirement residence portfolios. With our continued strong performance, our board today approved a 5.9% increase to our shareholder dividend, demonstrating confidence in the sustainability of Leisureworld's cash flows and growth potential," said Dino Chiesa, Interim CEO and Chairman of Leisureworld. "Growth in our LTC portfolio was driven by increased funding, the acquisition of the Madonna LTC home in Orleans, Ontario, which we closed early in the quarter, and disciplined cost management. Our retirement residence portfolio growth resulted primarily from the acquisition of the BC retirement properties in our second quarter, and higher occupancy rates in the Ontario portfolio."

"Looking ahead, our growth strategy remains focused on: ensuring exceptional quality seniors care and services, supporting and increasing our occupancy rates, maintaining disciplined cost management, building our presence across the continuum of seniors living in Canada, and maintaining a strong balance sheet and reliable shareholder dividends," added Mr. Chiesa.

During the second quarter, Leisureworld completed the acquisition of three luxury retirement residences in the Greater Vancouver Area in British Columbia ("the BC Portfolio"), which include The Royale Pacifica, The Royale Peninsula and The Royale Astoria. The BC portfolio purchase consideration included an income support agreement of $2.0 million for The Royale Astoria, to be held in escrow as an income guarantee to supplement cash flow during the lease-up period.

On July 16, 2012, Leisureworld closed the acquisition of the Madonna LTC home, a 160-bed, "A" Class Long-Term Care (LTC) residence in Orleans, Ontario. The property's current occupancy rate is in excess of 97% and includes a 60/40 private/shared accommodation ratio.

For the quarter ended September 30, 2012, Leisureworld's Net Operating Income (NOI) increased 24.6% to $15.4 million, compared to $12.4 million in the third quarter a year ago. The Company's LTC operations generated NOI of $11.9 million, compared to $11.1 million for the third quarter 2011. The increase was primarily attributable to the inclusion of NOI from the Madonna acquisition, increased funding and higher private occupancy rates, partly offset by higher property operating costs. Leisureworld's retirement residence portfolio generated a $2.3 million increase in NOI mainly as a result of the acquisition of the BC Portfolio. NOI for the Company's Preferred Health Care Services (PHCS) subsidiary decreased by $80,000 compared to third quarter 2011 results. This decrease was due to higher staffing costs to accommodate increased volumes and a temporary increase to operating costs.

Leisureworld generated $7.2 million in Funds from Operations (FFO) in the third quarter of 2012, an increase of 42.3% from $5.0 million in the third quarter a year ago. The increase reflects higher NOI in the quarter and a higher transaction costs add-back of $0.4 million. Increased FFO was partly offset by increased finance charges of $0.6 million, higher administrative expenses and current income taxes of $0.5 million and $0.2 million, respectively. The net finance charges increased due to the debt assumed in relation to the acquisition of the BC Portfolio and interest on the mortgage assumed on the Madonna acquisition. This was partly offset by lower interest charges on the credit facility related to the acquisition of the Ontario portfolio, as the Company paid down $20.0 million of this facility during the quarter.

Adjusted Funds from Operations (AFFO) for the third quarter of 2012 increased 18.8% to $9.1 million, compared with $7.7 million in the third quarter of 2011. Increased AFFO was primarily attributable to increased FFO in the quarter, partly offset by lower income support and higher maintenance capital expenditures.

Dividends declared by Leisureworld in the quarter were $0.2124 per share and Basic AFFO per share was $0.3110, representing a quarterly payout ratio of 68.3%. Leisureworld's payout ratio in the third quarter of 2011 was 67.8%.

Leisureworld generated total revenue of $82.9 million for the quarter ended September 30, 2012, an increase of 13.1% from $73.3 million in the third quarter a year ago. LTC contributed approximately $4.5 million of the increase, primarily as a result of the Madonna property acquisition and increased government funding. Retirement residence revenue accounted for $4.3 million of the increase, primarily as a result of the addition of the BC properties acquired late in the second quarter as well as increased revenues from the Ontario Portfolio due to higher occupancy levels. PHCS contributed $0.9 million of the revenue increase, primarily due to a rise in personal support contract volumes.

The Company's net loss was $0.1 million in the third quarter of 2012 compared to a net loss of $3.3 million in the third quarter of 2011. This improvement resulted primarily from higher income from operations, largely attributable to the retirement portfolio acquisitions, as well as reduced depreciation and amortization charges. This was partly offset by a $0.1 million tax expense, compared to an income tax recovery of $1.1 million in the third quarter of 2011. The increase in current taxes was primarily driven by earnings attributable to the Madonna and BC Portfolio acquisitions.

For the nine months ended September 30, 2012, NOI was $41.4 million, up 22.1% from $33.9 million in the corresponding period in 2011. LTC contributed $2.4 million of the NOI increase, reflecting increased LTC funding, preferred accommodation premiums, lower utility costs and higher management fees. The retirement portfolio contributed a $4.7 million increase in NOI, attributable to continued lease-up of the Ontario Portfolio and the recent acquisition of the BC Portfolio. PCHS contributed $0.4 million to the increase in NOI. AFFO for the first nine months of 2012 increased 29.8% to $25.7 million from $19.8 million in the first nine months of 2011. Favourable FFO contributed $4.6 million to the increase, partly offset by higher maintenance capital expenditures. Other factors contributing to the AFFO increase include higher income support draws, increased principal portion of construction funding and the prior year reduction associated with the income tax book to filing adjustment, which did not recur in the current year. Dividends declared by Leisureworld in the first nine months of 2012 totaled $0.6372 per share and Basic AFFO per share was $0.9631, representing a payout ratio of 66.2% for the period.

For the nine months ended September 30, 2012, the Company's net loss was $7.8 million, compared to $8.6 million in the same period a year ago. The decreased net loss resulted from higher income from operations of $6.7 million and from lower expenses related to depreciation and amortization, partly offset by a $7.0 million increase in income tax expense over the comparable period last year, and a one-time $2.7 million impairment loss related to the write down of the Company's Human Resource Information System in the second quarter.

For the nine months ended September 30, 2012, total tax expense was $2.6 million compared to a recovery of $4.4 million last year. The variance was primarily a result of the rate adjustment in deferred taxes of $3.8 million as well as the book to filing tax adjustment in the third quarter of the prior year. The Company also had higher earnings associated with the performance of the acquired portfolios.

"Occupancy rates for the Royale Ontario retirement properties in Kingston and Kanata at quarter end were 71.3% and 68.4%, respectively. As at September 30, 2012, we had drawn down the full amount of income support related to these properties. We do not expect this to have a significant impact on our AFFO or payout ratio during the remainder of the lease-up period. We continue to target stabilized occupancy in the second half of 2013," said Manny DiFilippo, Chief Financial Officer. "As at September 30, 2012, $0.7 million had been drawn down from our $2.0 million in income support funds related to the Royale Astoria in Port Coquitlam, B.C., which is in-line with our financial performance expectations related to the Royale Astoria. We expect this property to reach stabilized occupancy by early 2014."

As at September 30, 2012, the Company's debt to gross book value ratio was 52.1%. The debt is represented by: 4.814% Series A Senior Secured Notes due November 24, 2015, rated "A- (stable)" by Standard & Poor's Rating Services and "A (stable)" by Dominion Bond Rating Service Limited; $35.0 million drawn from the $61.5 million available revolving credit facility; a one-year $26.1 million term loan; a two-year $26.0 million term loan; an assumed $23.7 million mortgage that matures on January 1, 2017 and an assumed $15.7 million mortgage. Leisureworld had cash and cash equivalents at quarter end totaling $20.1 million and a further committed undrawn revolving credit facility with a Canadian chartered bank of $10.0 million for working capital purposes. As at September 30, 2012, Leisureworld had 29,272,889 common shares issued and outstanding.

Conference Call

Dino Chiesa, Chairman and Interim CEO, and Manny DiFilippo, CFO, will host a conference call for the investment community on Thursday, November 8, 2012 at 1:00 p.m. (ET). The call-in numbers for participants are 416-695-6616 or 800-355-4959. The call will be webcast at: http://www.gowebcasting.com/3946.

A replay of the call will be available until November 22, 2012. To access the replay, dial 905-694-9451 or 800-408-3053 (pass code: 9211730). The webcast archive will be available via Leisureworld's website or the web link above.

About Leisureworld

Leisureworld Senior Care Corporation is Canada's fifth largest operator of seniors' housing and the third largest licensed long-term care (LTC) provider in Ontario. Leisureworld owns and operates 27 LTC homes across Ontario with 4,474 beds. The Company also owns and operates six retirement residences and one independent living residence, representing 768 suites, in Ontario and British Columbia. Leisureworld subsidiaries include: Preferred Health Care Services, an accredited provider of professional nursing and personal support services; and Ontario Long Term Care, a provider of purchasing services, and dietary, social work, and other regulated health professional services. For more information, please visit the Company'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
Manny DiFilippo
Chief Financial Officer
(905) 489-0787
www.leisureworld.ca

Bruce Wigle
Investor Relations
(416) 447-4740 ext. 232

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.

@ThingsExpo Stories
Software AG helps organizations transform into Digital Enterprises, so they can differentiate from competitors and better engage customers, partners and employees. Using the Software AG Suite, companies can close the gap between business and IT to create digital systems of differentiation that drive front-line agility. We offer four on-ramps to the Digital Enterprise: alignment through collaborative process analysis; transformation through portfolio management; agility through process automation and integration; and visibility through intelligent business operations and big data.
There will be 50 billion Internet connected devices by 2020. Today, every manufacturer has a propriety protocol and an app. How do we securely integrate these "things" into our lives and businesses in a way that we can easily control and manage? Even better, how do we integrate these "things" so that they control and manage each other so our lives become more convenient or our businesses become more profitable and/or safe? We have heard that the best interface is no interface. In his session at Internet of @ThingsExpo, Chris Matthieu, Co-Founder & CTO at Octoblu, Inc., will discuss how these devices generate enough data to learn our behaviors and simplify/improve our lives. What if we could connect everything to everything? I'm not only talking about connecting things to things but also systems, cloud services, and people. Add in a little machine learning and artificial intelligence and now we have something interesting...
Last week, while in San Francisco, I used the Uber app and service four times. All four experiences were great, although one of the drivers stopped for 30 seconds and then left as I was walking up to the car. He must have realized I was a blogger. None the less, the next car was just a minute away and I suffered no pain. In this article, my colleague, Ved Sen, Global Head, Advisory Services Social, Mobile and Sensors at Cognizant shares his experiences and insights.
We are reaching the end of the beginning with WebRTC and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will want to use their existing identities, but these will have credentials already that are (hopefully) irreversibly encoded. In his session at Internet of @ThingsExpo, Peter Dunkley, Technical Director at Acision, will look at how this identity problem can be solved and discuss ways to use existing web identities for real-time communication.
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. It also ensured scalability and better service for customers, including MUY! Companies, one of the country's largest franchise restaurant companies with 232 Pizza Hut locations. This is one example of WebRTC adoption today, but the potential is limitless when powered by IoT. Attendees will learn real-world benefits of WebRTC and explore future possibilities, as WebRTC and IoT intersect to improve customer service.
From telemedicine to smart cars, digital homes and industrial monitoring, the explosive growth of IoT has created exciting new business opportunities for real time calls and messaging. In his session at Internet of @ThingsExpo, Ivelin Ivanov, CEO and Co-Founder of Telestax, will share some of the new revenue sources that IoT created for Restcomm – the open source telephony platform from Telestax. Ivelin Ivanov is a technology entrepreneur who founded Mobicents, an Open Source VoIP Platform, to help create, deploy, and manage applications integrating voice, video and data. He is the co-founder of TeleStax, an Open Source Cloud Communications company that helps the shift from legacy IN/SS7 telco networks to IP-based cloud comms. An early investor in multiple start-ups, he still finds time to code for his companies and contribute to open source projects.
The Internet of Things (IoT) promises to create new business models as significant as those that were inspired by the Internet and the smartphone 20 and 10 years ago. What business, social and practical implications will this phenomenon bring? That's the subject of "Monetizing the Internet of Things: Perspectives from the Front Lines," an e-book released today and available free of charge from Aria Systems, the leading innovator in recurring revenue management.
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges.
There’s Big Data, then there’s really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at 6th Big Data Expo®, Hannah Smalltree, Director at Treasure Data, to discuss how IoT, Big Data and deployments are processing massive data volumes from wearables, utilities and other machines.
All major researchers estimate there will be tens of billions devices – computers, smartphones, tablets, and sensors – connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be!
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at Internet of @ThingsExpo, Erik Lagerway, Co-founder of Hookflash, will walk through the shifting landscape of traditional telephone and voice services to the modern P2P RTC era of OTT cloud assisted services.
While great strides have been made relative to the video aspects of remote collaboration, audio technology has basically stagnated. Typically all audio is mixed to a single monaural stream and emanates from a single point, such as a speakerphone or a speaker associated with a video monitor. This leads to confusion and lack of understanding among participants especially regarding who is actually speaking. Spatial teleconferencing introduces the concept of acoustic spatial separation between conference participants in three dimensional space. This has been shown to significantly improve comprehension and conference efficiency.
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, will discuss single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example to explain some of these concepts including when to use different storage models.
SYS-CON Events announced today that Gridstore™, the leader in software-defined storage (SDS) purpose-built for Windows Servers and Hyper-V, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Gridstore™ is the leader in software-defined storage purpose built for virtualization that is designed to accelerate applications in virtualized environments. Using its patented Server-Side Virtual Controller™ Technology (SVCT) to eliminate the I/O blender effect and accelerate applications Gridstore delivers vmOptimized™ Storage that self-optimizes to each application or VM across both virtual and physical environments. Leveraging a grid architecture, Gridstore delivers the first end-to-end storage QoS to ensure the most important App or VM performance is never compromised. The storage grid, that uses Gridstore’s performance optimized nodes or capacity optimized nodes, starts with as few a...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace. These technological reforms have not only changed computers and smartphones, but are also changing the data processing model for all information devices. In particular, in the area known as M2M (Machine-To-Machine), there are great expectations that information with a new type of value can be produced using a variety of devices and sensors saving/sharing data via the network and through large-scale cloud-type data processing. This consortium believes that attaching a huge number of devic...
Innodisk is a service-driven provider of industrial embedded flash and DRAM storage products and technologies, with a focus on the enterprise, industrial, aerospace, and defense industries. Innodisk is dedicated to serving their customers and business partners. Quality is vitally important when it comes to industrial embedded flash and DRAM storage products. That’s why Innodisk manufactures all of their products in their own purpose-built memory production facility. In fact, they designed and built their production center to maximize manufacturing efficiency and guarantee the highest quality of our products.
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. Download Slide Deck: ▸ Here
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. Over the summer Gartner released its much anticipated annual Hype Cycle report and the big news is that Internet of Things has now replaced Big Data as the most hyped technology. Indeed, we're hearing more and more about this fascinating new technological paradigm. Every other IT news item seems to be about IoT and its implications on the future of digital business.
BSQUARE is a global leader of embedded software solutions. We enable smart connected systems at the device level and beyond that millions use every day and provide actionable data solutions for the growing Internet of Things (IoT) market. We empower our world-class customers with our products, services and solutions to achieve innovation and success. For more information, visit www.bsquare.com.
With the iCloud scandal seemingly in its past, Apple announced new iPhones, updates to iPad and MacBook as well as news on OSX Yosemite. Although consumers will have to wait to get their hands on some of that new stuff, what they can get is the latest release of iOS 8 that Apple made available for most in-market iPhones and iPads. Originally announced at WWDC (Apple’s annual developers conference) in June, iOS 8 seems to spearhead Apple’s newfound focus upon greater integration of their products into everyday tasks, cross-platform mobility and self-monitoring. Before you update your device, here is a look at some of the new features and things you may want to consider from a mobile security perspective.