In This Article:
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Consolidated Q3 Revenue: Increased by 11.3% to $359.1 million.
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Adjusted EBITDA: Increased by $15.3 million or 73.8%.
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AFFO per Basic Share: Doubled to $0.28 from $0.14 in the same period last year.
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Long-Term Care Revenue: Incremental annual revenue of approximately $11.1 million due to funding increases.
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Long-Term Care NOI Margin: Increased to 11.4% from 8.7% last year.
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Home Healthcare Revenue: Increased by $20.3 million or 17.2%.
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Home Healthcare NOI Margin: Increased by 150 basis points to 11.3%.
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Managed Services Revenue: Increased by $6.1 million to $18.8 million.
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Managed Services NOI Margin: 52.6%, in line with expectations of 50% to 55%.
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SGP Customer Base: Increased by 11.4% to approximately 143,500.
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New Credit Facility: $275 million senior secured credit facility established.
Release Date: November 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Extendicare Inc (EXETF) reported robust third-quarter results with strong earnings across all operating segments.
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The company experienced a 10.2% year-over-year increase in average daily volume in the home healthcare segment, indicating strong demand and successful recruitment and retention programs.
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Managed services segment saw an 11.4% increase in the SGP customer base, driven by organic growth and the impact of the Revera and Axium transactions.
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Extendicare Inc (EXETF) established a new $275 million senior secured credit facility, providing additional flexibility for growth and capital allocation.
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The company is actively pursuing long-term care redevelopment projects, with six homes under construction in Ontario and plans for additional projects, enhancing future growth potential.
Negative Points
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Despite strong results, Extendicare Inc (EXETF) faces ongoing inflationary pressures on operating costs, which could impact future profitability.
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The company relies on government funding, which, while supportive, introduces uncertainty due to potential changes in policy or funding levels.
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Seasonal softness in home healthcare volumes was noted, although it was offset by overall demand growth.
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The company is undergoing significant redevelopment efforts, which may involve risks related to construction delays or cost overruns.
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Extendicare Inc (EXETF) is in the process of realigning its capital structure, which includes the early redemption of convertible debentures, potentially impacting short-term financial flexibility.
Q & A Highlights
Q: Were there any unusual amounts or timing differences in the long-term care NOI this quarter that might have driven the large sequential increase? A: David Bacon, CFO, clarified that there were no unusual amounts or timing differences. The improvement was largely due to efforts to reduce agency costs, particularly in Western Canada, which directly benefited the bottom line. The adjusted NOI of around $22 million is a good number to consider going forward.