Click here to close now.

Welcome!

Agile Computing Authors: Rex Morrow, Datical, Sematext Blog, Liz McMillan, Elizabeth White, Ruxit Blog

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
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
The 4th International Internet of @ThingsExpo, co-located with the 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - announces that its Call for Papers is open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect at GE, and Ibrahim Gokcen, who leads GE's advanced IoT analytics, focused on the Internet of Things / Industrial Internet and how to make it operational for business end-users. Learn about the challenges posed by machine and sensor data and how to marry it with enterprise data. They also discussed the tips and tricks to provide the Industrial Internet as an end-user consumable service using Big Data Analytics and Industrial Cloud.
Building low-cost wearable devices can enhance the quality of our lives. In his session at Internet of @ThingsExpo, Sai Yamanoor, Embedded Software Engineer at Altschool, provided an example of putting together a small keychain within a $50 budget that educates the user about the air quality in their surroundings. He also provided examples such as building a wearable device that provides transit or recreational information. He then reviewed the resources available to build wearable devices at home including open source hardware, the raw materials required and the options available to power s...
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happens, where data lives and where the interface lies. For instance, it's a mix of architectural styles ...
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics is e...
Collecting data in the field and configuring multitudes of unique devices is a time-consuming, labor-intensive process that can stretch IT resources. Horan & Bird [H&B], Australia’s fifth-largest Solar Panel Installer, wanted to automate sensor data collection and monitoring from its solar panels and integrate the data with its business and marketing systems. After data was collected and structured, two major areas needed to be addressed: improving developer workflows and extending access to a business application to multiple users (multi-tenancy). Docker, a container technology, was used to ...
The true value of the Internet of Things (IoT) lies not just in the data, but through the services that protect the data, perform the analysis and present findings in a usable way. With many IoT elements rooted in traditional IT components, Big Data and IoT isn’t just a play for enterprise. In fact, the IoT presents SMBs with the prospect of launching entirely new activities and exploring innovative areas. CompTIA research identifies several areas where IoT is expected to have the greatest impact.
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, data security and privacy.
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, discussed 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 t...
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will addresses this very serious issue of profound change in the industry.
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
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) i...
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, June 9-11, 2015, at the Javits Center in New York City. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be
Container frameworks, such as Docker, provide a variety of benefits, including density of deployment across infrastructure, convenience for application developers to push updates with low operational hand-holding, and a fairly well-defined deployment workflow that can be orchestrated. Container frameworks also enable a DevOps approach to application development by cleanly separating concerns between operations and development teams. But running multi-container, multi-server apps with containers is very hard. You have to learn five new and different technologies and best practices (libswarm, sy...
SYS-CON Events announced today that DragonGlass, an enterprise search platform, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. After eleven years of designing and building custom applications, OpenCrowd has launched DragonGlass, a cloud-based platform that enables the development of search-based applications. These are a new breed of applications that utilize a search index as their backbone for data retrieval. They can easily adapt to new data sets and provide access to both structured and unstruc...
The Internet of Things is a misnomer. That implies that everything is on the Internet, and that simply should not be - especially for things that are blurring the line between medical devices that stimulate like a pacemaker and quantified self-sensors like a pedometer or pulse tracker. The mesh of things that we manage must be segmented into zones of trust for sensing data, transmitting data, receiving command and control administrative changes, and peer-to-peer mesh messaging. In his session at @ThingsExpo, Ryan Bagnulo, Solution Architect / Software Engineer at SOA Software, focused on desi...
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and assessments, including a decade of leading incident response and digital forensics. He is co-author of t...