Slide 1: Q3 2021 Results Conference Call
BUILDING A BETTER FUTURE GROWING LONG-TERM VALUE Q3 2021 Results Conference Call November 5, 2021 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 not have standardized
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains 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 be forwa
Slide 3: COVID-19 Update
COVID-19 UPDATE • Mandatory vaccination policy is in place for all team members working in our LTC homes and retirement communities; policy implemented with minimal disruption • Third dose booster campaign for residents underway in all homes • Continue to maintain enhanced staffing levels and preven
Slide 4: Positive Changes in Ontario LTC Funding and Regulations
POSITIVE CHANGES IN ONTARIO LTC FUNDING AND REGULATIONS • Several positive announcements made by the Government of Ontario in October: • $4.9B commitment to phase in increased hours of direct care in LTC to four hours per resident day over the next four years • New call for applications for new and
Slide 5: 2021 Third Quarter Highlights
2021 THIRD QUARTER HIGHLIGHTS • Pandemic costs decreased to $32.4M in Q3, down 24% from Q2 2021 as vaccination rates have increased and COVID cases in the community have declined; costs exceeded funding by $0.7M(1) • Q3 included $5.1M in funding related to previously unfunded costs from Q1-21 • Vola
Slide 6: Long-Term Care – Redevelopment Advancing
LONG-TERM CARE – REDEVELOPMENT ADVANCING • Commenced construction on 256-bed home in Stittsville (Ottawa) in October with targeted completion in Q1 2024 • Construction continues on Kingston (192 bed) and Sudbury (256 bed) homes; three projects represent a total net investment of $178.9M(1) • Additio
Slide 7: Long-Term Care – Occupancy Levels Improving; Increase in Direct Care Hours Announced
LONG-TERM CARE – OCCUPANCY LEVELS IMPROVING; INCREASE IN DIRECT CARE HOURS ANNOUNCED • LTC COVID-19(1) funding received in excess of costs by $0.8M in Q3; including $5.1M funding for Q1 unfunded costs • Sequential occupancy improvement +360 bps from Q2, outlook for occupancy impacted by: LTC Average
Slide 8: ParaMed – Volumes in-Line with Q2 Impacted by Seasonal Softness
PARAMED – VOLUMES IN-LINE WITH Q2 IMPACTED BY SEASONAL SOFTNESS; STAFFING CAPACITY CONTINUES TO WEIGH ON GROWTH • Sequential ADV up 0.3% from Q2, moderated by traditional seasonal softness in the summer • Improved back-office efficiencies contributed to NOI margin growth, +180 bps to 9.7%(2) in Q3 v
Slide 9: Financial Review Q3 2021
FINANCIAL REVIEW Q3 2021 EXTENDICARE ParaMled Redefining Care .. helping people live better
Slide 10: Consolidated Results
CONSOLIDATED RESULTS Three and nine months ended September 30, 2021 ($ millions, except per share amounts) Revenue NOI and Margin Q3 Q3 YTD YTD Q3 Q3 YTD YTD 2021 2020 Change 2021 2020 Change 2021 2020 Change 2021 2020 Change $310.1 $296.8 4.5% $940.0 $850.6 10.5% $31.6 $76.0 -58.5% $103.1 $126.3 -1
Slide 11: Long-Term Care
LONG-TERM CARE Three and nine months ended September 30, 2021 • Q3 revenue up $4.7M or 2.6%; including $2.9M incremental COVID-19 funding Revenue • Q3 NOI up $3.4M or 26.5% Q3 2021 $189.5M 2.6% • YoY favourable change in unfunded COVID costs of $7.4M (including $5.1M related to Q1), offset by higher
Slide 12: Home Health Care
HOME HEALTH CARE Three and nine months ended September 30, 2021 • Q3 revenue up $8.8M or 9.4%; ADV +11.4% Revenue • Q3 NOI of $8.7M and margin of 8.5% Q3 2021 $102.0M 9.4% • Excluding Q3 2020 CEWS of $50.8M, NOI up $4.0M YTD 2021 $300.8M 10.7% • YoY ADV growth, lower workers compensation costs, incl
Slide 13: Retirement Living
RETIREMENT LIVING Three and nine months ended September 30, 2021 Revenue • Q3 revenue up $0.1M or 0.9% Q3 2021 $12.1M 0.9% • Q3 NOI down $0.2M to $3.0M and margin at 24.8% YTD 2021 $36.6M 2.3% • Contributions from lease-up and lower YoY unfunded COVID-19 costs, exceeded by increased labour and promo
Slide 14: Other Canadian Operations
OTHER CANADIAN OPERATIONS Three and nine months ended September 30, 2021 Revenue • Q3 revenue down $0.3M or 4.3%; reflects decline in demand for pandemic supplies in group purchasing Q3 2021 $6.6M -4.3% segment YTD 2021 $20.8M 6.6% • Q3 NOI down $0.8M or 18.5% and margin at 53.4% NOI (YTD 56.6%); im
Slide 15: Strong Financial Position
STRONG FINANCIAL POSITION As at September 30, 2021 Long-term EBITDA interest Debt to Weighted Debt (1) Cash coverage GBV average rate $558M $132M Q3 2021 3.8x 45.4% 4.3% +$95.9M in construction financing closed Q2 2021 5.4x 46.3% 4.3% in Q2 2021 to support LTC redevelopment(3) Q4 2020 4.7x 45.9% 4.3
Slide 16: Compelling Growth Opportunities Across the Care Continuum
COMPELLING GROWTH OPPORTUNITIES ACROSS THE CARE CONTINUUM B2C: direct services to seniors LONG-TERM CARE HOME HEALTH CARE RETIREMENT LIVING 58 9.0M 11 Long-term care Home health care Retirement communities homes owned hours delivered (TTM) owned B2B: contract & consulting services GROUP PURCHASING C
Slide 17: Thank You
THANK YOU
Slide 18: Appendix
EXTENDICARE™ APPENDIX ... helping people live better 18
Slide 19: Estimated COVID-19 Revenue, Operating Expenses and Administrative Costs
ESTIMATED COVID-19 REVENUE, OPERATING EXPENSES AND ADMINISTRATIVE COSTS Three and nine months ended September 30, 2021 2021 2020 (millions of dollars) Q3 Q2 Q1 YTD Q3 Q4 Q3 Q2 Q1 YTD Q3 Year Revenue Long-term care 24.0 25.5 47.0 96.5 25.6 21.1 17.6 0.4 39.1 64.7 Retirement living - - - - - - - - - -
Slide 20: Results – NOI by Division
RESULTS – NOI BY DIVISION (1) Three and nine months ended September 30, 2021 ($ millions) Long-term Care NOI and Margin (1) Home Health Care NOI and Margin (1) Q3 Q3 YTD YTD Q3 Q3 YTD YTD 2021 2020 Change 2021 2020 Change 2021 2020 Change 2021 2020 Change $15.6 $19.6 -20.4% $50.0 $58.0 -13.9% $9.2 $
Slide 21: Saskatchewan LTC – Financial Impacts
SASKATCHEWAN LTC – FINANCIAL IMPACTS Nine months ended September 30, 2021 and year ended December 31, 2020 (millions of dollars YTD Year unless otherwise noted) 2021 2020 Saskatchewan LTC Revenue 42.6 54.7 NOI (1.3) 1.1 Estimated AFFO (1.5) 0.1 Estimated AFFO / basic share (0.02) - Estimated Impact