Slide 1: 2020 Second Quarter Results Conference Call
DELIVERING BEST-IN-CLASS SERVICES & GROWING LONG-TERM VALUE 2020 Second Quarter Results Conference Call August 14, 2020 NON-GAAP MEASURES “EBITDA”, “Adjusted EBITDA”, “net operating income” (NOI), “funds from operations” (FFO), and “adjusted funds from operations” (AFFO) are non-GAAP measures and do
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains certain forward-looking statements within the meaning of applicable Canadian securities laws (“forward-looking statements” or “forward-looking information”). Statements other than statements of historical fact contained in this presentation may b
Slide 3: COVID-19 Update
COVID-19 UPDATE ♦ Safety of our residents, clients and staff remains our top priority ♦ Continue to commit increased resources and policies to protect against COVID-19 ♦ Universal masking ♦ Sufficient levels of personal protective equipment (PPE) ♦ Single-site employer policy ♦ Voluntary staff testi
Slide 4: 2020 Second Quarter Highlights
2020 SECOND QUARTER HIGHLIGHTS ♦ Impact of COVID-19: ♦ Increased costs (wages, benefits, PPE and supplies) exceeded COVID-19 related funding by $10.7M for Q2 and $11.0M YTD ♦ Lower home health care volumes ♦ Lower occupancy levels in retirement living ♦ Improved financial performance year over year
Slide 5: Long-Term Care – COVID-19 Costs In Excess Of Funding To Date
LONG-TERM CARE – COVID-19 COSTS IN EXCESS OF FUNDING TO DATE ♦ COVID-19 costs incurred to-date in excess of announced funding support ♦ Ontario preserved 100% occupancy-based funding to end of 2020 and provided additional funding for COVID-19 Average Occupancy ♦ Alberta introduced additional funding
Slide 6: ParaMed – Volumes Continue To Be Impacted By COVID-19 Restrictions
PARAMED – VOLUMES CONTINUE TO BE IMPACTED BY COVID-19 RESTRICTIONS ♦ COVID-19 impact on average daily volumes (ADV) down 20.7% compared to Q2 2019 (1) ♦ Higher back-office and COVID-19 related costs further impacted NOI compared to Q2 2019 ♦ Volumes have shown steady improvement as restrictions have
Slide 7: Retirement Living – Higher Lease-Up Occupancy Partially Offset By COVID-19 Impacts
RETIREMENT LIVING – HIGHER LEASE-UP OCCUPANCY PARTIALLY OFFSET BY COVID-19 IMPACTS ♦ COVID-19 restrictions on in-person tours and enhanced protocols to protect residents led to lower occupancy and increased costs in Q2 Stabilized Portfolio (occupancy at period end) ♦ Stabilized occupancy of 91.3% as
Slide 8: Contract Services And Group Purchasing – Growing SGP Network
CONTRACT SERVICES AND GROUP PURCHASING – GROWING SGP NETWORK ♦ Growing business segment with >10% CAGR in revenue and NOI over past 8 quarters as market presence expands SGP (3rd party residents) 80,000 ♦ SGP welcomed several new clients 70,000 in early Q3 2020 including Golden Life and 60,000 Group
Slide 9: Financial Review
FINANCIAL REVIEW 2020 Second Quarter Results 9
Slide 10: Consolidated Results
CONSOLIDATED RESULTS REVENUE AND NOI(1) Three and six months ended June 30, 2020 ($ millions) Revenue (1) Adjusted EBITDA and Margin Q2 Q2 YTD YTD Q2 Q2 YTD YTD 2020 2019 Change 2020 2019 Change 2020 2019 Change 2020 2019 Change $281.9 $269.2 4.7% $550.8 $532.0 3.5% $8.2 $25.2 -67.5% $28.3 $44.9 -37
Slide 11: Long-Term Care
LONG-TERM CARE Three and six months ended June 30, 2020 ♦ Q2 Revenue increase of $18.5M Revenue includes COVID-19 funding of $17.6M Q2 2020 $178.5M 11.6% ♦ Q2 NOI down $8.3M due to COVID-19 costs in excess of funding of $8.6M YTD 2020 $338.7M 7.1% ($8.9M YTD) ♦ Lower occupancy due to impacts from NO
Slide 12: Home Health Care
HOME HEALTH CARE Three and six months ended June 30, 2020 Revenue (1) ♦ Revenue and NOI impacted by significant Q2 2020 $85.5M -8.5% decline in ADV due to COVID-19, higher back-office and COVID-19 costs YTD 2020 $175.6M -4.8% ♦ Excluding the impact of B.C. operations, ADV down 20.7% from Q2 2019 and
Slide 13: Retirement Living
RETIREMENT LIVING Three and six months ended June 30, 2020 ♦ Revenue and NOI margins improved Revenue compared to Q2 2019, driven by Q2 2020 $11.7M 17.3% occupancy growth in lease-up communities, including the opening of YTD 2020 $23.8M 21.8% The Barrieview in Q4 2019 NOI ♦ Stabilized occupancy impa
Slide 14: Other Canadian Operations
OTHER CANADIAN OPERATIONS Three and six months ended June 30, 2020 Revenue ♦ Revenue and NOI up 6.4% and Q2 2020 $6.3M 6.4% 21.5%, respectively, in Q2 2020 as YTD 2020 $12.7M 8.0% compared to Q2 2019 NOI ♦ Revenue driven by 28.1% growth in Q2 2020 $3.9M 21.5% SGP client base, with residents margin 6
Slide 15: Strong Financial Position
STRONG FINANCIAL POSITION As at June 2020 Long-term EBITDA interest Debt to Weighted Debt (1) Cash coverage GBV average rate $593.9M $122.0M Q2 2020 2.6x 49.7% 4.4% Q4 2019 3.1X 49.0% 4.7% Debt Maturities ($ millions) Construction(2) Lease Liabilities Mortgage Amortization Mortgage Principal at Matu
Slide 16: Compelling Growth Opportunities Across The Care Continuum
COMPELLING GROWTH OPPORTUNITIES ACROSS THE CARE CONTINUUM B2C: direct services to seniors LONG-TERM CARE HOME HEALTH CARE RETIREMENT LIVING 58 8.8M 11 Long-term care Home health care Retirement communities homes owned hours delivered (TTM) owned B2B: contract & consulting services GROUP PURCHASING C
Slide 17: Thank You
THANK YOU
Slide 18: Financial Review Appendix
FINANCIAL REVIEW APPENDIX 18
Slide 19: Q2 2020 Estimated COVID-19 Revenue, Operating Expenses And Administrative Costs
Q2 2020 ESTIMATED COVID-19 REVENUE, OPERATING EXPENSES AND ADMINISTRATIVE COSTS Three and six months ended June 30, 2020 and 2019 ($ millions) Three months ended June 30, 2020 Six months ended June 30, 2020 Retirement Home Health Retirement Home Health LTC Living Care Total LTC Living Care Total Rev
Slide 20: ParaMed Factors Impacting Comparability
PARAMED FACTORS IMPACTING COMPARABILITY Three and six months ended June 30, 2020 and 2019 ♦ ParaMed B.C. operations (exited in January 2020) ♦ ParaMed Bill 148 (retro funding of $2.2M recorded in Q2 2019) NET IMPACT Q2 Q2 YTD June YTD June ($ millions) 2020 2019 Change 2020 2019 Change Revenue ParaM