Extendicare Inc. Reports Un-Audited Consolidated Earnings Results for the First Quarter Ended March 31, 2018; Provides Effective Tax Rate Guidance for the Year 2018
May 10, 2018 at 05:16 pm
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Extendicare Inc. reported un-audited consolidated earnings results for the first quarter ended March 31, 2018. For the quarter, the company reported net operating income from continuing operations declined by $2.3 million or 7.2% to $29.3 million compared to $31.6 million reported a year ago. Net operating income from the Canadian operations declined by $0.8 million and was unfavourably impacted by the timing of Good Friday, which increased operating costs this quarter by approximately $1.4 million, and prior period funding of $0.8 million received in the 2017 first quarter. Adjusted EBITDA from continuing operations declined by $1.4 million to $20.0 million this quarter compared to $21.4 million a year ago, reflecting the lower contribution from net operating income, partially offset by lower administrative costs. Despite the impact of the additional holiday and prior period funding, AFFO improved by $2.0 million this quarter to $14.7 million or $0.161 per diluted share from $12.7 million or $0.141 per diluted share in the same 2017 period, primarily due to lower current income taxes of $2.2 million, partially offset by an increase in maintenance capex. The company reported total revenue of $271.4 million compared to $268.9 million, earnings from continuing operations of $3.6 million or $0.04 per basic share compared to $4.9 million or $0.06 per basic share and maintenance capex (continuing operations) of $1.1 million compared to $0.91 million for the last year.
The company anticipated effective tax rate on FFO will be in the range of 17% to 20% for the 2018 year.
Extendicare Inc. is a provider of care and services for seniors across Canada. The Company operates under the Extendicare, ParaMed, Extendicare Assist, and SGP Purchasing Partner Network brands. The Company operates through four segments: Long-term Care, Home Health Care, Managed Services and Corporate. Its Long-term Care segment includes over 53 long-term care homes, which it owns and operates in Canada. Its Home Health Care segment operates through its subsidiary, ParaMed, which provides complex nursing care, occupational, physical and speech therapy, and assistance with daily activities. Its Managed Services segment includes its management, consulting and group purchasing divisions. Through the Extendicare Assist division, it provides management and consulting services to third parties, and through the SGP Purchasing Partner Network division, it offers purchasing contracts to other senior care providers for food, capital equipment, furnishings, cleaning, nursing supplies, and more.
Extendicare Inc. Reports Un-Audited Consolidated Earnings Results for the First Quarter Ended March 31, 2018; Provides Effective Tax Rate Guidance for the Year 2018