Slide 1: 2020 Third Quarter Results Conference Call
DELIVERING BEST-IN-CLASS SERVICES & GROWING LONG-TERM VALUE 2020 Third Quarter Results Conference Call November 13, 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 d
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 ♦ Maintaining enhanced infection prevention measures ♦ Sufficient levels of PPE ♦ Staff testing ♦ Increased staffing in LTC homes ♦ Dedicated COVID-19 response team ♦ Recruited Chief Medical Officer, new role, to b
Slide 4: 2020 Third Quarter Highlights
2020 THIRD QUARTER HIGHLIGHTS ♦ Impact of COVID-19: ♦ Pandemic costs exceed COVID-19 related funding by $8.8M in Q3 and $19.8M YTD ♦ Home health care staffing levels remain below pre- COVID-19 levels, slowing volume recovery ♦ Lower occupancy in retirement living and LTC ♦ Improved financial perform
Slide 5: Long-Term Care – Increased Costs, Lower Occupancy Levels From COVID-19
LONG-TERM CARE – INCREASED COSTS, LOWER OCCUPANCY LEVELS FROM COVID-19 ♦ COVID-19 costs continue to exceed government funding support announced to-date – $15.5M costs in excess of funding YTD Q3 2020 ♦ In Ontario, COVID-19 funding announced through Q1 2021 Average Occupancy and occupancy protection
Slide 6: Long-Term Care – Redevelopment
LONG-TERM CARE – REDEVELOPMENT ♦ Ontario Capital Development Funding Program updated to include increased CFS per diem ranges and capital development grant on substantial completion of home ♦ Continue to advocate to improve economics in urban areas and timing of approval process ♦ Applied for 22 pro
Slide 7: ParaMed – Staffing Levels Remain Below Pre-COVID Levels Slowing Volume Recovery
PARAMED – STAFFING LEVELS REMAIN BELOW PRE- COVID LEVELS SLOWING VOLUME RECOVERY ♦ COVID-19 continues to impact average daily volumes (ADV) – down 9.9% compared to Q3 2019(1) ♦ Home care referrals have recovered to pre-COVID levels ♦ Continued gradual improvement in ADV levels, up 5.2%(2) since Q3 2
Slide 8: Retirement Living – Positive Financial Results Despite Impacts Of COVID-19
RETIREMENT LIVING – POSITIVE FINANCIAL RESULTS DESPITE IMPACTS OF COVID-19 ♦ Growth in lease-up occupancy driving increased NOI in Q3 2020 compared to Q3 2019, despite COVID-19 costs and restrictions Stabilized Portfolio (occupancy at period end) ♦ COVID-19 restrictions impacting occupancy levels 10
Slide 9: Contract Services And Group Purchasing – Continued Growth Of SGP Network
CONTRACT SERVICES AND GROUP PURCHASING – CONTINUED GROWTH OF SGP NETWORK ♦ Growing business segment with >9% CAGR in revenue and NOI over past 8 quarters as SGP expands its market presence SGP (3rd party residents) 85,000 ♦ SGP client base increased to ~79,400 at Q3 2020 70,000 ♦ Up 23.5% from Q3 20
Slide 10: Financial Review
FINANCIAL REVIEW 2020 Third Quarter Results 10
Slide 11: Consolidated Results
CONSOLIDATED RESULTS Three and nine months ended September 30, 2020 ($ millions) Revenue Revenue (1) Q3 Q3 YTD YTD Q3 Q3 YTD YTD 2020 2019 Change 2020 2019 Change 2020 2019 Change 2020 2019 Change $296.8 $282.7 5.0% $850.6 $841.1 1.1% $296.8 $269.6 10.1% $847.6 $801.6 5.7% NOI and Margin NOI and Mar
Slide 12: Long-Term Care
LONG-TERM CARE Three and nine months ended September 30, 2020 Revenue ♦ Q3 revenue increase of $23.8M includes COVID-19 funding of $21.1M Q3 2020 $184.7M 14.8% ♦ Q3 NOI down $7.7M due to COVID-19 YTD 2020 $523.4M 9.7% costs in excess of funding of $6.6M ($15.5M YTD) and increased costs of care NOI ♦
Slide 13: Home Health Care
HOME HEALTH CARE Three and nine months ended September 30, 2020 ♦ Q3 2020 revenue unchanged as impact of Revenue (1) COVID-19 and pandemic pay funding ($7.6M) largely offset by lower average Q3 2020 $93.2M 1.0% daily volumes (ADVs) YTD 2020 $268.8M -2.9% ♦ NOI impacted by 9.9%(1) decline in ADV comp
Slide 14: Retirement Living
RETIREMENT LIVING Three and nine months ended September 30, 2020 ♦ Contributions from non same-store Revenue operations and lease-up communities Q3 2020 $12.0M 15.1% offset the negative impact of COVID-19 on occupancy and cost levels YTD 2020 $35.8M 19.5% ♦ Stabilized and average occupancy NOI impro
Slide 15: Other Canadian Operations
OTHER CANADIAN OPERATIONS Three and nine months ended September 30, 2020 Revenue ♦ Revenue and NOI up 15.2% and Q3 2020 $6.8M 15.2% 34.0%, respectively, in Q3 2020 YTD 2020 $19.6M 10.4% ♦ Revenue driven by 23.5% growth in NOI SGP client base since Q3 2019, with Q3 2020 $4.3M 34.0% residents served g
Slide 16: Strong Financial Position
STRONG FINANCIAL POSITION As at September 2020 Long-term EBITDA interest Debt to Weighted Debt (1) Cash coverage GBV average rate $587M $170M Q3 2020 4.0x 47.9% 4.4% Q2 2020 2.6X 49.7% 4.4% Debt Maturities ($ millions) Construction(2) Lease Liabilities Mortgage Amortization Mortgage Principal at Mat
Slide 17: 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 8.5M 11 Long-term care Home health care Retirement communities homes owned hours delivered (TTM) owned B2B: contract & consulting services GROUP PURCHASING C
Slide 18: Thank You
THANK YOU
Slide 19: Financial Review – Appendix
FINANCIAL REVIEW APPENDIX 19
Slide 20: ParaMed Factors Impacting Comparability
PARAMED FACTORS IMPACTING COMPARABILITY Three and nine months ended September 30, 2020 and 2019 ♦ ParaMed B.C. contracts (exited in January 2020) ♦ ParaMed Bill 148 (retro funding of $2.2M recorded in Q2 2019) ♦ ParaMed CEWS ($50.8M received in Q3 2020) NET IMPACT Q3 Q3 YTD Sept. YTD Sept. ($ millio
Slide 21: Q3 2020 Estimated COVID-19 Revenue, Operating Expenses And Administrative Costs
Q3 2020 ESTIMATED COVID-19 REVENUE, OPERATING EXPENSES AND ADMINISTRATIVE COSTS Three and nine months ended September 30, 2020 and 2019 ($ millions) Three months ended September 30, 2020 Nine months ended September 30, 2020 Retirement Home Health Retirement Home Health LTC Living Care Total LTC Livi