Business
Extendicare Announces 2025 First Quarter Results
MARKHAM, Ontario, May 06, 2025 (GLOBE NEWSWIRE) -- Extendicare Inc. (“Extendicare” ...
About this update from Extendicare Inc.
[{"type":"text","content":"Extendicare Announces 2025 First Quarter Results\n\n\n\n MARKHAM, Ontario, May 06, 2025 (GLOBE NEWSWIRE) -- Extendicare Inc. (“Extendicare” or the “Company”) (TSX: EXE) today reported results for the three months ended March 31, 2025.\n \n\n\n First Quarter 2025 Highlights\n \n\n\n\n Adjusted EBITDA\n \n (1)\n \n excluding out-of-period items increased by $8.7 million or 42.7% to $29.0 million, driven by improvements across all three business segments.\n \n\n 5.0% dividend increase to 4.2 cents per month.\n \n\n Home health care average daily volume (“ADV”) increased to 31,603, an increase of 8.9% from Q1 2024.\n \n\n SGP third-party and joint venture serviced beds increased to 148,200 beds, an increase of 7.2% from Q1 2024, driven by continued organic growth.\n \n\n Opened Crossing Bridge, a new 256-bed long-term care (“LTC”) home in Stittsville, owned by Axium JV.\n \n\n\n\n\n Subsequent to Q1\n \n\n\n\n Entered into an agreement to acquire all of the issued and outstanding shares of Closing the Gap Healthcare Group Inc. and certain affiliates for $75.5 million, subject to customary closing conditions and regulatory approval. The transaction would add approximately 1.1 million service hours (3,109 ADV) to our home health care segment.\n \n\n Completed the sale of three LTC projects under construction in St. Catharines, Port Stanley and London, Ontario to Axium JV, for net cash proceeds of $56.3 million and an estimated net after-tax gain of $11.1 million, net of Extendicare’s 15% retained interest, holdbacks, closing and other costs.\n \n\n\n \"Q1 2025 represents another quarter of strong results sustained by growth and positive operating performance across all our business segments,” said Dr. Michael Guerriere. “Closing the sale of our three latest LTC redevelopment projects into the joint venture allows us to recycle capital into our redevelopment program and other compelling growth initiatives.”\n \n\n Dr. Guerriere added, “The agreement to acquire Closing the Gap announced last week provides our home health care segment with new clients, additional growth opportunities and further operating leverage. We are also on track to finalize the acquisition of the nine LTC homes from Revera in the second quarter, pending regulatory approvals....