Extendicare Inc. (“Extendicare” or the “Company”) (TSX: EXE) today
reported results for the three and twelve months ended December 31,
2021. Results are presented in Canadian dollars unless otherwise
noted.
Fourth Quarter Highlights
- Occupancy levels continued to
recover in Q4 2021, with overall average occupancy up 110 bps in
long-term care (“LTC”) and 210 bps in retirement communities
- Home health care average daily
volume growth of 1.8% vs. Q3 2021 and 7.7% vs. Q4 2020
- Commenced construction on
Extendicare’s new 256-bed LTC home in Stittsville, our third LTC
project under construction in Ontario
- High vaccination rates among our
residents and our mandatory staff vaccination policy helped to
mitigate serious illness and hospitalizations despite Omicron
related outbreaks
- Subsequent to Q4 2021, announced
agreement to sell our Esprit retirement living portfolio for $307.5
million, repositioning Extendicare to focus on growth in long-term
care and home health care
“While we were pleased with our progress in the fourth quarter,
the emergence of the Omicron variant drove a dramatic increase in
outbreaks across our long-term care homes and retirement
communities in January,” said President and Chief Executive
Officer, Dr. Michael Guerriere. “Despite the prevalence of the
virus within the community, high vaccination rates among our
residents and staff were significant factors in mitigating serious
illness and hospitalization. Protecting our residents, caregivers
and staff continues to be our top priority. We are grateful for the
exceptional dedication of our team members and the support of
designated family caregivers who have tirelessly worked to support
the quality of life and well-being of our residents during this
difficult time.”
“While the Omicron wave continues to impact occupancy, staffing
levels and home health care volumes as we enter 2022, these impacts
are temporary. We are optimistic about the opportunities for growth
in our long-term care and home health care segments following the
sale of our Esprit retirement living portfolio, which is expected
to close in the second quarter,” added Guerriere.
Protecting Our Residents, Clients and
Caregivers
Since the last week of December, the rate of new COVID-19
infections in Canada has increased exponentially across the
country, driven by the highly transmissible Omicron variant. The
focus on vaccination, including our ongoing booster programs, has
dramatically reduced the incidences of serious illness and
hospitalization of our residents despite more widespread outbreaks
across our LTC homes and retirement communities than experienced
during previous waves of the pandemic. While Omicron has generally
resulted in milder symptoms, it can pose a serious risk to the most
vulnerable members of our community, particularly among LTC
residents. This reinforces the need for continued vigilance and
focus on our key prevention and control measures to minimize the
spread of the virus.
As of February 23, 2022, 17 of our 69 LTC homes and retirement
communities were recovering from outbreaks. The wave appears to
have crested in late January, and active cases have dropped quickly
since that time. Since October 12, 2021, only vaccinated staff have
been permitted to work in our homes.
Repositioning Extendicare to Focus on Growth in
Long-term Care and Home Health Care
On February 3, 2022, Extendicare announced the sale of its
Esprit Retirement Communities in Ontario and Saskatchewan to
Sienna-Sabra LP, a partnership formed between Sienna Senior Living
Inc. and SABRA Healthcare REIT, for an aggregate purchase price of
$307.5 million (the “Retirement Living Sale”). The estimated net
proceeds to be realized on the sale, net of debt repayments, taxes,
certain closing adjustments and transactions costs, is
approximately $115.0 million. Closing of the Retirement Living Sale
is anticipated in the second quarter of 2022, subject to customary
closing conditions including receipt of regulatory approvals, and
is not conditional on financing or due diligence.
The sale repositions Extendicare to focus on growth in our
long-term care and home health care segments where we will leverage
our deep expertise and scale to drive improved performance and
high-quality care for seniors across Canada. The services we
provide to other senior living operators through Extendicare Assist
and the SGP Purchasing Partner Network will continue to be a
prominent part of our growth strategy. Proceeds from the sale will
provide the flexibility to allocate capital strategically,
including priority investments in our people, technology, and our
continued investment in our LTC redevelopment program.
Continued Commitment to Long-term Care
Redevelopment
During Q4 2021, we commenced construction on our third LTC
redevelopment project, a new 256-bed LTC home in the Ottawa area in
Stittsville, Ontario. Together with our Sudbury and Kingston
projects, the three homes under construction will replace a total
of 624 Class C LTC beds with 704 new beds requiring a net
investment of $178.9 million. The homes are being constructed
exclusively with single patient rooms to maximize privacy and
safety.
We continue to advance our redevelopment program to replace our
older Class C LTC beds in Ontario. With the proposals submitted
pursuant to the October 2021 new call for applications by the
Government of Ontario, we have a total of 21 redevelopment projects
(3 under construction and 18 pending government approval). The
proposed program would build more than 4,600 new LTC beds, which
would replace all of our 3,285 existing Class C beds. Subsequent to
year end, we were awarded new beds for three additional projects,
bringing the total to 10 projects for which 1,952 beds have been
awarded (including the three already under construction).
We are actively engaged with our industry partners and the
government to identify enhancements to the government’s capital
development funding program to make all projects economically
feasible. We continue to work through the Ontario Ministry of
Long-Term Care (MLTC) and municipal approval processes and are
targeting to begin construction on six more projects before the end
of 2023.
COVID-19 Financial Impacts and LTC Occupancy
Protection
The resurgence of COVID-19 outbreaks within our homes in
December 2021, resulted in increased pandemic-related spending in
Q4 2021 and into Q1 2022, after trending downward through Q2 and Q3
2021.
On February 4, 2022, the Ontario MLTC announced additional
COVID-19 prevention and containment funding of $328.7 million, of
which $277.0 million relates to the fiscal year ended March 31,
2022, and the balance to the fiscal year ending March 31, 2021. We
recognized $11.9 million in prevention and containment funding in
Q4 that related to spending in Q1 2021, resulting in net recovery
of COVID costs from continuing operations in Q4 2021 of $4.5
million, compared to net unfunded COVID costs of $9.4 million in Q4
2020.
Since the beginning of the pandemic, unfunded pandemic costs
have resulted in a cumulative reduction in our Adjusted EBITDA(1)
from continuing operations of $32.3 million, and we will continue
to incur elevated costs in our ongoing efforts to protect our
residents, clients and staff until the threat of the pandemic has
abated.
The initial phase of the Ontario LTC staffing plan that
commenced in November 2021 will help alleviate COVID cost pressures
by funding the staff we added during the pandemic through
enhancements to the nursing and program flow-through envelopes. We
estimate the LTC staffing plan will provide incremental
flow-through funding for direct care hours of $40 to $45 million in
2022.
On January 27, 2022, the MLTC confirmed that basic occupancy
protection in Ontario would expire on January 31, 2022. Beginning
February 1, 2022, the former occupancy targets have been
reinstated, which require LTC homes in Ontario to maintain average
occupancy of 97% to maintain full funding. The 97% requirement will
be assessed on the 11-month period from February 1, 2022 to
December 31, 2022, and will exclude the third and fourth beds in
ward rooms, which will continue to receive full funding until MLTC
advises otherwise. As a result, we may experience some reduction in
funding for a small number of our Ontario LTC homes that may not
achieve the required 97% average occupancy for the balance of 2022.
The average occupancy of our Ontario LTC homes for December 2021,
adjusted to exclude the third and fourth beds in ward rooms that
have been taken out of service, was 95.8%.
Q4 2021 Financial
Highlights(2) (all comparisons with Q4
2020)
- Revenue increased 9.3% or $27.1
million to $319.4 million, driven by a 7.7% increase in home health
care average daily volumes (“ADV”), home health care billing rate
increases including $3.5 million retroactive to April 1, 2021, LTC
funding enhancements and timing of flow-through funding, increased
COVID-19 funding of $5.6 million, and growth in retirement living
operations, partially offset by lower contract services revenue in
other operations.
- Net operating income (“NOI”)(1)
decreased $13.8 million to $42.0 million; if not for the Canada
Emergency Wage Subsidy (“CEWS”) of $40.4 million received by
ParaMed in Q4 2020, NOI would have increased by $26.6 million,
driven by improvements in home health care billing rates, higher
ADV and the impact of one-time costs incurred in Q4 2020 of $6.1
million, a reduction in unfunded COVID-19 costs of $13.3 million
and enhanced LTC funding.
- Adjusted EBITDA(1) decreased $13.3
million to $27.7 million, reflecting the decline in NOI noted above
and a reduction in administrative costs related to COVID-19 and
claims reserves, partially offset by increased information
technology and higher transaction related professional fees.
- Other expense of $15.0 million was
recorded in Q4 2021 related to an impairment charge in respect of
certain LTC homes in Manitoba and Alberta. Other expense recorded
in Q4 2020 related to a $2.5 million non-cash, non-recurring
actuarial adjustment in respect of a legacy post-retirement
benefits plan.
- Earnings from continuing operations
decreased $19.8 million to a loss of $4.1 million, driven by the
after-tax impact of the decline in Adjusted EBITDA noted above and
increase in other expense of $12.5 million, partially offset by
lower finance costs.
- AFFO(1) of $16.5 million ($0.18 per
basic share) was down $5.3 million, reflecting the decline in
earnings, partially offset by lower maintenance capex.
Year Ended 2021 Financial
Highlights(2) (all comparisons with year
ended 2020)
- Revenue increased 10.3% or $113.2
million to $1,216.8 million, driven by COVID-19 funding of $68.1
million, increased home health care ADV of 9.8% and billing rates,
LTC funding enhancements and growth in retirement living and other
operations, partially offset by timing of flow-through funding and
lower LTC preferred accommodation revenue.
- NOI declined $34.7 million to $146.3
million, reflecting a $73.8 million year-over-year reduction in
CEWS payments received by ParaMed and a decline in NOI of the LTC,
retirement living and other operations, partially offset by growth
in home health care and a reduction in unfunded COVID-19 costs of
$24.5 million.
- Adjusted EBITDA decreased $38.2
million to $93.9 million, reflecting the decline in NOI noted above
and higher administrative costs related to information technology,
professional fees and insurance.
- Other expense of $15.0 million was
recorded in the year ended December 31, 2021 related to an
impairment charge in respect of certain LTC homes in Manitoba and
Alberta. Other expense of $5.3 million recorded in the year ended
December 31, 2020 related to an impairment charge of $2.8 million
in respect of certain of the Company’s retirement communities in
Saskatchewan recorded in Q2 2020 and a $2.5 million non-cash,
non-recurring actuarial adjustment in respect of a legacy
post-retirement benefits plan recorded in Q4 2020.
- Earnings from continuing operations
declined $33.4 million to $9.0 million, primarily driven by the
after-tax impact of the decline in Adjusted EBITDA noted above and
an increase in other expense of $9.7 million, partially offset by
lower finance costs.
- AFFO of $53.7 million ($0.60 per
basic share) decreased by $25.4 million, reflecting the decline in
earnings.
Business Updates
The following is a summary of the Company’s revenue, NOI(1) and
NOI margins(1) by business segment for the three and twelve months
ended December 31, 2021 and 2020, respectively.
(unaudited) |
Three months ended December 31 |
|
Twelve months ended December 31 |
(millions of dollars, |
2021 |
|
2020(2) |
|
2021 |
|
2020(2) |
unless
otherwise noted) |
Revenue |
NOI |
Margin |
|
Revenue |
NOI |
Margin |
|
Revenue |
NOI |
Margin |
|
Revenue |
NOI |
Margin |
Long-term care |
189.5 |
23.5 |
12.4 |
% |
|
176.6 |
9.2 |
5.2 |
% |
|
728.7 |
67.3 |
9.2 |
% |
|
660.8 |
50.7 |
7.7 |
% |
Retirement living |
13.2 |
3.2 |
24.4 |
% |
|
12.0 |
3.3 |
27.6 |
% |
|
49.8 |
13.4 |
26.9 |
% |
|
47.8 |
13.8 |
28.8 |
% |
Home health care |
109.8 |
10.9 |
9.9 |
% |
|
96.4 |
38.7 |
40.1 |
% |
|
410.6 |
49.6 |
12.1 |
% |
|
368.2 |
99.9 |
27.1 |
% |
Other |
6.9 |
4.3 |
62.5 |
% |
|
7.2 |
4.6 |
63.2 |
% |
|
27.8 |
16.1 |
58.1 |
% |
|
26.8 |
16.7 |
62.2 |
% |
|
319.4 |
42.0 |
13.1 |
% |
|
292.3 |
55.8 |
19.1 |
% |
|
1,216.8 |
146.3 |
12.0 |
% |
|
1,103.5 |
181.0 |
16.4 |
% |
Note: Totals may not sum due to rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
Long-term Care
The pace of LTC occupancy recovery slowed in Q4 2021 due to the
surge of COVID-19 cases driven by the Omicron variant in December
2021. Average occupancy in our LTC homes recovered 110 bps to 89.8%
in Q4 2021 from 88.7% in Q3 2021, up 230 bps from 87.5% in Q4 2020.
We expect that our occupancy levels will be temporarily impacted in
Q1 2022 by the number of COVID-19 outbreaks across our LTC homes,
which has impeded our ability to admit new residents.
Our LTC operations benefitted this quarter from retroactive
funding of $11.9 million in support of COVID-19 costs incurred in
Q1 2021. NOI and NOI margin in Q4 2021 were $23.5 million and
12.4%, respectively, an increase from $9.2 million and 5.2% in Q4
2020, due to a reduction in unfunded COVID-19 costs of $13.9
million and funding enhancements, partially offset by higher costs
of labour, utilities and repairs and maintenance.
Home Health Care
The ParaMed home health care segment saw improved financial
performance from higher volumes, billing rate increases and the
absence of non-recurring costs in the quarter. ParaMed Q4 2021 ADV
was 25,796, an increase of 1.8% from Q3 2021 and 7.7% higher than
Q4 2020. While the Omicron-driven surge of COVID-19 cases in
January 2022 temporarily impacted our workforce capacity, we
anticipate a return to growth in ADV as the pandemic recedes.
In Q4 2021, ParaMed revenue was $109.8 million, up 13.9% from Q4
2020, driven by growth in ADV of 7.7%, billing rate increases and
increased COVID-19 and pandemic pay funding of $2.3 million.
NOI and NOI margin were $10.9 million and 9.9%, respectively, in
Q4 2021, compared to $38.7 million and 40.1% in Q4 2020. Excluding
CEWS payments received by ParaMed in Q4 2020 of $40.4 million, NOI
improved by $12.6 million from Q4 2020, reflecting higher ADV and
billing rate increases, including $3.5 million in retroactive
payments for Q2 and Q3 2021, and the impact of one-time costs
incurred in Q4 2020 of $6.1 million, partially offset by an
increase in unfunded COVID-19 costs of $0.3 million.
NOI margins in our home health care operations, adjusting for
the net cost impacts of COVID-19 and the retroactive rate increase
recorded in Q4 2021, were 8.8%, as compared to 9.7% in Q3 2021. The
decrease in NOI margins was largely due to an additional statutory
holiday in Q4 2021 as compared to Q3 2021, increased staff costs
associated with the holiday period and the initial impacts of the
COVID-19 resurgence in December 2021. NOI margins for the year
ended December 31, 2021, adjusted for COVID and CEWS impacts, were
9.3% as compared to 4.8% in the prior year (adjusted for one-time
charges in Q4 2020), reflecting the volume recovery and rate
increases in 2021 and the improvements in back-office
efficiency.
Retirement Living
In our retirement operations, steady growth in occupancy levels
and care services led to financial performance largely in line with
the prior year period. In Q4 2021, higher revenue of $1.2 million
or 9.7% was offset by increased labour and promotional costs, and
higher unfunded COVID-19 costs of $0.3 million, resulting in a
decline in NOI of $0.1 million or 2.8% from Q4 2020.
Throughout the pandemic the average occupancy of our stabilized
communities has remained above 90%. Average occupancy of the total
portfolio increased by 210 bps to 87.8% in Q4 2021 compared to Q3
2021, comprised of an increase of 680 bps in our lease-up
communities and 110 bps in our stabilized communities.
Other Operations
Revenue declined by 3.7% to $6.9 million from Q4 2020, largely
due to lower contract services revenue. NOI declined by $0.2
million or 4.8% to $4.3 million, representing 62.5% of revenue. The
number of third-party residents served by SGP increased to
approximately 93,200 at the end of Q4 2021, up 18.1% from Q4 2020
and 5.4% from Q3 2021.
Financial Position
Extendicare is well positioned with strong liquidity, which
included cash and cash equivalents on hand of $104.6 million and
access to a further $72.8 million in undrawn demand credit
facilities as at December 31, 2021. In addition, the Company has
undrawn construction financing in the aggregate of $154.3 million
available for its Stittsville, Sudbury and Kingston LTC
redevelopment projects.
Select Financial Information
The following is a summary of the Company’s consolidated
financial information for the three and twelve months ended
December 31, 2021 and 2020.
(unaudited) |
Three months ended December
31 |
|
Twelve months endedDecember
31 |
(thousands of dollars unless otherwise noted) |
2021 |
|
2020(2) |
|
2021 |
|
2020(2) |
Revenue |
319,372 |
|
292,278 |
|
|
1,216,758 |
|
1,103,544 |
|
Operating expenses |
277,403 |
|
236,514 |
|
|
1,070,412 |
|
922,513 |
|
NOI(1) |
41,969 |
|
55,764 |
|
|
146,346 |
|
181,031 |
|
NOI margin(1) |
13.1 |
% |
19.1 |
% |
|
12.0 |
% |
16.4 |
% |
Administrative costs |
14,236 |
|
14,758 |
|
|
52,431 |
|
48,959 |
|
Adjusted EBITDA(1) |
27,733 |
|
41,006 |
|
|
93,915 |
|
132,072 |
|
Adjusted EBITDA margin(1) |
8.7 |
% |
14.0 |
% |
|
7.7 |
% |
12.0 |
% |
Other
expense |
14,969 |
|
2,486 |
|
|
14,969 |
|
5,266 |
|
Earnings (loss) from continuing operations |
(4,068 |
) |
15,721 |
|
|
9,012 |
|
42,450 |
|
per basic and diluted share ($) |
(0.05 |
) |
0.17 |
|
|
0.10 |
|
0.47 |
|
Earnings from discontinued operations, net of
tax |
246 |
|
1,755 |
|
|
2,492 |
|
11,739 |
|
Net earnings (loss) |
(3,822 |
) |
17,476 |
|
|
11,504 |
|
54,189 |
|
per basic and diluted share ($) |
(0.04 |
) |
0.19 |
|
|
0.13 |
|
0.60 |
|
AFFO(1) |
16,530 |
|
21,804 |
|
|
53,721 |
|
79,167 |
|
per basic share ($) |
0.18 |
|
0.24 |
|
|
0.60 |
|
0.88 |
|
per diluted share ($) |
0.17 |
|
0.23 |
|
|
0.58 |
|
0.83 |
|
Maintenance capex |
5,472 |
|
7,573 |
|
|
14,084 |
|
13,866 |
|
Cash dividends declared per share |
0.12 |
|
0.12 |
|
|
0.48 |
|
0.48 |
|
Payout ratio(1) |
65 |
% |
49 |
% |
|
80 |
% |
54 |
% |
Weighted average number of shares (thousands) |
|
|
|
|
|
Basic |
90,040 |
|
89,898 |
|
|
89,990 |
|
89,808 |
|
Diluted |
100,953 |
|
100,362 |
|
|
100,903 |
|
100,275 |
|
Extendicare’s disclosure documents, including its Management’s
Discussion and Analysis (“MD&A”), may be found on SEDAR’s
website at www.sedar.com under the Company’s issuer profile and on
the Company’s website at www.extendicare.com under the
“Investors/Financial Reports” section.
Conference Call and Webcast
On February 25, 2022, at 11:30 a.m. (ET), Extendicare will hold
a conference call to discuss its 2021 fourth quarter and year end
results. The call will be webcast live and archived online at
www.extendicare.com under the “Investors/Events &
Presentations” section. Alternatively, the call-in number is
1-800-319-4610 or 416-915-3239. A replay of the call will be
available approximately two hours after completion of the live call
until midnight on March 11, 2022. To access the rebroadcast dial
1-800-319-6413 followed by the passcode 8379#.
About Extendicare
Extendicare is a leading provider of care and services for
seniors across Canada, operating under the Extendicare, Esprit
Lifestyle, ParaMed, Extendicare Assist, and SGP Purchasing Partner
Network brands. We are committed to delivering quality care
throughout the health continuum to meet the needs of a growing
seniors population. We operate or provide contract services to a
network of 119 long-term care homes and retirement communities (69
owned/50 contract services), provide approximately 9.2 million
hours of home health care services annually, and provide group
purchasing services to third parties representing approximately
93,200 senior residents across Canada. Extendicare proudly employs
over 20,000 qualified, highly trained and dedicated individuals who
are passionate about providing high quality care and services to
help people live better.
Non-GAAP Measures
Certain measures used in this press release, such as “net
operating income”, “NOI”, “NOI margin”, “Adjusted EBITDA”,
“Adjusted EBITDA margin”, “AFFO”, and “payout ratio”, including any
related per share amounts, are not measures recognized under GAAP
and do not have standardized meanings prescribed by GAAP. These
measures may differ from similar computations as reported by other
issuers and, accordingly, may not be comparable to similarly titled
measures as reported by such issuers. These measures are not
intended to replace earnings (loss) from continuing operations, net
earnings (loss), cash flow, or other measures of financial
performance and liquidity reported in accordance with GAAP. Such
items are presented in this document because management believes
that they are a relevant measure of Extendicare’s operating
performance and ability to pay cash dividends.
Management uses these measures to exclude the impact of certain
items, because it believes doing so provides investors a more
effective analysis of underlying operating and financial
performance and improves comparability of underlying financial
performance between periods. The exclusion of certain items does
not imply that they are non-recurring or not useful to
investors.
Detailed descriptions of these measures can be found in
Extendicare’s Q4 2021 MD&A (refer to “Non-GAAP Measures”),
which is available on SEDAR’s website at www.sedar.com and on
Extendicare’s website at www.extendicare.com.
The reconciliations for certain non-GAAP measures included in
this press release are outlined as follows:
The following table provides a reconciliation of “earnings
(loss) from continuing operations before income taxes” to Adjusted
EBITDA and “net operating income”, which excludes discontinued
operations.
(unaudited) |
Three months endedDecember 31(2) |
|
Twelve months endedDecember 31(2) |
(thousands of dollars unless otherwise noted) |
2021 |
|
2020 |
|
2021 |
2020 |
Earnings (loss) from continuing
operations before income taxes |
(2,994 |
) |
21,890 |
|
16,037 |
58,685 |
Add
(Deduct): |
|
|
|
|
|
Depreciation and
amortization |
9,541 |
|
9,714 |
|
37,877 |
38,085 |
Net finance costs |
6,217 |
|
6,916 |
|
25,032 |
30,036 |
Other
expense |
14,969 |
|
2,486 |
|
14,969 |
5,266 |
Adjusted EBITDA |
27,733 |
|
41,006 |
|
93,915 |
132,072 |
Administrative costs |
14,236 |
|
14,758 |
|
52,431 |
48,959 |
Net operating income |
41,969 |
|
55,764 |
|
146,346 |
181,031 |
The following table provides a reconciliation of AFFO, which
includes discontinued operations, to “net cash from operating
activities”, which the Company believes is the most comparable GAAP
measure to AFFO.
(unaudited) |
Three months ended December
31 |
|
Twelve months ended December
31 |
(thousands of dollars unless otherwise noted) |
2021 |
|
2020 |
|
|
2021 |
|
2020 |
|
Net cash from operating activities |
18,494 |
|
46,387 |
|
|
63,424 |
|
121,265 |
|
Add (Deduct): |
|
|
|
|
|
Net change in operating assets
and liabilities, including interest, taxes and payments for U.S.
self-insured liabilities |
2,954 |
|
(17,847 |
) |
|
1,285 |
|
(32,562 |
) |
Current
income tax on items excluded from AFFO |
— |
|
— |
|
|
46 |
|
10 |
|
Depreciation for office leases |
(668 |
) |
(610 |
) |
|
(2,741 |
) |
(2,489 |
) |
Depreciation for FFEC (maintenance capex) |
(2,045 |
) |
(1,868 |
) |
|
(8,225 |
) |
(7,520 |
) |
Additional maintenance capex |
(3,427 |
) |
(5,705 |
) |
|
(5,859 |
) |
(6,346 |
) |
Principal portion of government capital funding |
1,222 |
|
1,447 |
|
|
5,791 |
|
5,792 |
|
Amounts
offset through investments held for self-insured liabilities |
— |
|
— |
|
|
|
1,017 |
|
AFFO |
16,530 |
|
21,804 |
|
|
53,721 |
|
79,167 |
|
Forward-looking Statements
This press release contains forward-looking statements
concerning anticipated future events, results, circumstances,
economic performance or expectations with respect to Extendicare
and its subsidiaries, including, without limitation, statements
regarding its business operations, business strategy, growth
strategy, results of operations and financial condition, including
anticipated timelines, costs and financial returns in respect of
development projects, statements relating to the Retirement Living
Sale; and in particular statements in respect of the impact of
measures taken to mitigate the impact of COVID-19, the availability
of various government programs and financial assistance announced
in respect of COVID-19, the impact of COVID-19 on the Company’s
operating costs, staffing, procurement, occupancy levels and
volumes in its home health care business, the impact on the capital
and credit markets and the Company’s ability to access the credit
markets as a result of COVID-19, increased litigation and
regulatory exposure and the outcome of any litigation and
regulatory proceedings. Forward-looking statements can often be
identified by the expressions “anticipate”, “believe”, “estimate”,
“expect”, “intend”, “objective”, “plan”, “project”, “will” or other
similar expressions or the negative thereof. These forward-looking
statements reflect the Company’s current expectations regarding
future results, performance or achievements and are based upon
information currently available to the Company and on assumptions
that the Company believes are reasonable. The Company assumes no
obligation to update or revise any forward-looking statement,
except as required by applicable securities laws. These statements
are not guarantees of future performance and involve known and
unknown risks, uncertainties and other factors that may cause
actual results, performance or achievements of the Company to
differ materially from those expressed or implied in the
statements. In particular, risks and uncertainties related to the
effects of COVID-19 on the Company include the length, spread and
severity of the pandemic; the nature and extent of the measures
taken by all levels of governments and public health officials,
both short and long term, in response to COVID-19; domestic and
global credit and capital markets; the Company’s ability to access
capital on favourable terms or at all due to the potential for
reduced revenue and increased operating expenses as a result of
COVID-19; the availability of insurance on favourable terms;
litigation and/or regulatory proceedings against or involving the
Company, regardless of merit; the health and safety of the
Company’s employees and its residents and clients; and domestic and
global supply chains, particularly in respect of personal
protective equipment. Given the evolving circumstances surrounding
COVID-19, it is difficult to predict how significant the adverse
impact will be on the global and domestic economy and the business
operations and financial position of Extendicare. For further
information on the risks, uncertainties and assumptions that could
cause Extendicare’s actual results to differ from current
expectations, refer to “Risk and Uncertainties” and “Forward
Looking-Statements” in Extendicare’s Q4 2021 MD&A filed by
Extendicare with the securities regulatory authorities, available
at www.sedar.com and on Extendicare’s website at
www.extendicare.com. Given these risks and uncertainties, readers
are cautioned not to place undue reliance on Extendicare’s
forward-looking statements.
Extendicare contact:David Bacon, Senior Vice
President and Chief Financial OfficerPhone: (905) 470-4000; Fax:
(905) 470-5588Email:
david.bacon@extendicare.comwww.extendicare.com
Endnotes |
(1) |
|
See the “Non-GAAP Measures” section of this press release and the
Company’s Q4 2021 MD&A, which includes the reconciliation of
such non-GAAP measures to the most directly comparable GAAP
measures. |
(2) |
|
In connection with the October
14, 2021 announcement that the Company and the Saskatchewan Health
Authority (“SHA”) agreed to transition the long-term care services
operated at the Company’s five LTC homes located in Saskatchewan to
the SHA, the Company classified its Saskatchewan LTC Homes as
discontinued in Q4 2021 and re-presented its comparative
consolidated financial statements, including the comparative
financial information. For additional details refer to the
“Discontinued Operations” section in the Company’s Q4 2021 MD&A
and Note 18 of the audited consolidated financial statements for
the year ended December 31, 2021. |
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