MARKHAM, Ontario, Nov. 14, 2017 (GLOBE NEWSWIRE) — Sienna Senior Living Inc. (“Sienna” or the “Company”) (TSX:SIA) today announced its financial results for the three and nine months ended September 30, 2017. The Unaudited Condensed Interim Consolidated Financial Statements and accompanying Management’s Discussion and Analysis are available on the Company’s website at www.siennaliving.ca and on SEDAR at www.sedar.com.
Third Quarter 2017 Highlights
- Revenue up 7.2% from Q3 2016 to $139.9 million in Q3 2017
- Net income from continuing operations up $6.6 million from Q3 2016 to $6.2 million in Q3 2017
- Overall Same Property Net Operating Income (“NOI”) up 4.0% from Q3 2016 to $27.5 million in Q3 2017, with Retirement Same Property NOI up 11.7% from Q3 2016 to $7.7 million in Q3 2017
- Completed the previously announced acquisition of Retirement Suites of Kawartha Lakes (now rebranded by the Company as Kawartha Lakes Retirement Residence), a 93-suite independent and assisted living residence located in Bobcaygeon, Ontario
- Subsequent to Third Quarter:
- On October 16, 2017, the Company into entered an agreement to acquire two high-quality retirement residences. Waterford Retirement Residence Barrie, a 202-suite independent living, assisted living and memory care community, is centrally located in Barrie, Ontario and Waterford Retirement Residence Kingston, a 182-suite independent living, assisted living and memory care community, is located in Kingston, Ontario. This acquisition is expected to be completed in the fourth quarter of 2017.
- On November 3, 2017, the Company completed its offering of common shares at a price of $17.45 per common share, on a bought deal basis. The syndicate of underwriters elected to exercise the over-allotment option in full, resulting in the issuance of 6,590,650 common shares for total gross proceeds of $115 million.
“We are pleased to report another strong quarter of operating results,” said Lois Cormack, President and Chief Executive Officer of Sienna. “Management remains focused on executing on the Company’s strategic priorities, and is delighted with the third quarter acquisition of Kawartha Lakes Retirement Residence, and the recently announced pending acquisitions of two high quality retirement residences in key markets, which we expect to continue to drive growth in earnings and long-term shareholder value.”
Financial and Operating Highlights:
| Three months ended September 30, 2017 |
Three months ended September 30, 2016 |
Nine months ended September 30, 2017 |
Nine months ended September 30, 2016 |
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| Average total occupancy (LTC) | 98.9% | 99.0% | 98.6% | 98.8% | ||||
| Average private occupancy (LTC) | 99.3% | 99.9% | 99.2% | 99.9% | ||||
| Average occupancy (Retirement) | 94.1% | 93.9% | 94.1% | 92.6% | ||||
| As at occupancy (Retirement) | 94.1% | 95.0% | 94.1% | 95.0% | ||||
| Total occupancy (Baltic) | 96.9% | 98.1% | 96.7% | 98.1% | ||||
| $000s except occupancy, per share and ratio data | Three months ended September 30, 2017 |
Three months ended September 30, 2016 |
Nine months ended September 30, 2017 |
Nine months ended September 30, 2016 |
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| Revenue | $139,867 | $130,418 | $411,360 | $359,876 | ||||||||
| Operating expenses | $109,109 | $103,994 | $323,731 | $289,845 | ||||||||
| NOI (1)(2) | $30,758 | $26,406 | $87,629 | $70,413 | ||||||||
| Net income (loss) from continuing operations | $6,214 | $(364) | $17,619 | $(1,107) | ||||||||
| Operating Funds from Operations (OFFO) (1) | $16,565 | $15,474 | $46,509 | $37,674 | ||||||||
| Adjusted Funds from Operations (AFFO) (1) | $18,537 | $17,220 | $52,860 | $43,875 | ||||||||
| Net income (loss) from continuing operations per share, diluted | $0.131 | $(0.009) | $0.374 | $(0.029) | ||||||||
| OFFO per share, diluted | $0.346 | $0.349 | $0.975 | $0.942 | ||||||||
| AFFO per share, diluted | $0.386 | $0.387 | $1.104 | $1.092 | ||||||||
| Dividends declared per share | $0.225 | $0.225 | $0.675 | $0.675 | ||||||||
| Payout Ratio (3) | 56.3% | 55.8% | 59.1% | 59.4% | ||||||||
Notes:
- NOI, OFFO and AFFO are not measures recognized under IFRS and do not have standardized meanings prescribed by IFRS. NOI, OFFO and AFFO are supplemental measures of a company’s performance and management believes that NOI, OFFO and AFFO are relevant measures of its earnings performance and its ability to pay dividends on the Company’s common shares. The IFRS measurement most directly comparable to AFFO is cash flow from operations.
- NOI includes net operating loss from discontinued operations of $(18) and NOI from discontinued operations of $382 for the three and nine months ended September 30, 2016, respectively.
- Payout Ratio is calculated using dividends declared per share divided by the basic AFFO per share for the respective periods.
Third Quarter 2017
Revenue increased by $9.4 million or 7.2% to $139.9 million over the comparable prior year period. The increase was principally related to the revenues generated from the acquisitions completed in Q3 2016 and year-to-date 2017.
Operating expenses increased by $5.1 million or 4.9% to $109.1 million over the comparable prior year period. The increase was principally related to expenses incurred at the newly acquired properties.
NOI increased by $4.4 million or 16.5% to $30.8 million over the comparable prior year period. Same property NOI increased by $1.1 million or 4.0% to $27.5 million over the comparable prior year period.
The Company generated net income from continuing operations of $6.2 million for the three months ended September 30, 2017, representing an increase of $6.6 million over the comparable prior year period. The increase was principally related to income generated from the acquisitions completed in Q3 2016 and year-to-date 2017, and reductions in transaction costs, depreciation and amortization and net finance charges, partially offset by increases in income taxes and administrative expenses.
OFFO increased by $1.1 million or 7.1% to $16.6 million over the comparable prior year period. The increase was principally related to the improved NOI contribution from all properties.
AFFO increased by $1.3 million or 7.6% to $18.5 million over the comparable prior year period. The increase was principally related to the increase in OFFO noted above, and timing of maintenance capital expenditures.
2017 Nine Months Results Summary
Revenue increased by $51.5 million or 14.3% to $411.4 million over the comparable prior year period. The increase was principally related to the revenues generated from the acquisitions completed in Q3 2016 and year-to-date 2017.
Operating expenses increased by $33.9 million or 11.7% to $323.7 million over the comparable prior year period. The increase was principally related to expenses incurred at the newly acquired properties.
NOI increased by $17.2 million or 24.5% to $87.6 million over the comparable prior year period. Same property NOI increased by $2.5 million or 3.6% to $72.9 million over the comparable prior year period.
The Company generated net income from continuing operations of $17.6 million for the nine months ended September 30, 2017, representing an increase of $18.7 million over the comparable prior year period. The increase was principally related to income generated from the acquisitions completed in Q3 2016 and year-to-date 2017, and reductions in transaction costs, depreciation and amortization and net finance charges, partially offset by increases in income taxes and administrative expenses.
OFFO increased by $8.8 million or 23.5% to $46.5 million over the comparable prior year period. The increase was principally related to the improved NOI contribution from same and newly acquired properties.
AFFO increased by $9.0 million or 20.5% to $52.9 million over the comparable prior year period. The increase was principally related to the increase in OFFO noted above, partially offset by an increase in maintenance capital expenditures.
Conference Call
The toll-free dial-in number for participants is 1-844-543-5234, please enter pass code: 99547515. A webcast of the call will be accessible via Sienna’s website at: www.siennaliving.ca/Investors/Events-Presentations.aspx. The webcast of the call will be available for replay until November 15, 2018 and archived on Sienna’s website.
About Sienna Senior Living
Sienna Senior Living Inc. (TSX: SIA) is a leading seniors’ living provider with 71 residences in key markets in Canada. Sienna offers a full range of seniors’ living options, including independent and assisted living, long-term care, and specialized programs and services. Sienna also provides expert management services. Sienna is committed to national growth, while driving long-term value for shareholders. The Company’s more than 11,000 employees are passionate about helping residents live fully, every day. For more information, please visit www.siennaliving.ca.
Forward-Looking Statements
Certain of the statements contained in this news release are forward-looking statements and are provided for the purpose of presenting information about management’s current expectations and plans relating to the future. Readers are cautioned that such statements may not be appropriate for other purposes. These statements generally use forward-looking words, such as “anticipate”, “continue”, “could”, “expect”, “may”, “will”, “estimate”, “believe” or other similar words and include, among other things, statements related to the Company’s financial results or strategic plans. These statements are subject to significant known and unknown risks and uncertainties that may cause actual results or events to differ materially from those expressed or implied by such statements and, accordingly, should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. The forward-looking statements in this news release are based on information currently available and what management currently believes are reasonable assumptions, including the funding of long-term care facilities by government entities. Other material factors or assumptions that were applied in formulating the forward-looking statements contained herein include the assumption that the business and economic conditions affecting the Company’s operations will continue substantially in their current state, including, with respect to industry conditions, general levels of economic activity and government regulations.
Although management believes that it has a reasonable basis for the expectations reflected in these forward-looking statements, actual results may differ from those suggested by the forward-looking statements for various reasons. The assumptions, risks and uncertainties described above are not exhaustive and other events and risk factors could cause actual results to differ materially from the results and events discussed in the forward-looking statements. These forward-looking statements reflect current expectations of the Company as at the date of this news release and speak only as at the date of this news release. The Company does not undertake any obligation to publicly update or revise any forward-looking statements except as may be required by applicable law.
FOR FURTHER INFORMATION PLEASE CONTACT:
Nitin Jain
Chief Financial Officer & Chief Investment Officer
(905) 489-0787
[email protected]