Sienna Senior Living Inc. Reports 2018 First Quarter Financial Results

MARKHAM, Ontario, May 10, 2018 (GLOBE NEWSWIRE) -- Sienna Senior Living Inc. (“Sienna” or the “Company”) (TSX:SIA) today announced its financial results for the three months ended March 31, 2018. 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.

2018 First Quarter Highlights

• Revenue of $145.4 million in Q1 2018, up 8.5% from Q1 2017.
• Retirement Same Property NOI of $7.8 million in Q1 2018, up 5.5% from Q1 2017.
• Strong Balance Sheet: Debt to Gross Book Value at 50.3% vs 52.4% year-over-year, a decline of 210 bps. On a fully diluted basis, Debt to Gross Book Value would be 48.1%.
• Completed the previously announced acquisition of 10 high-quality retirement residences in Ontario, consisting of 1,245 private-pay suites located in the Greater Toronto Area and the Greater Ottawa Area, for an aggregate purchase price of $382 million (the “Acquisition”).

Subsequent to the First Quarter:

• On April 23, 2018, the Company gave notice that it will redeem on May 23, 2018 all of its outstanding Convertible Debentures.
• On May 1, 2018, the Company acquired an additional 16% in Glenmore Lodge in British Columbia, increasing the Company’s interest from 61% to 77%. This additional interest was purchased for $6.3 million, before closing costs and subject to customary closing adjustments.

“We are pleased to report a strong first quarter of operating results, along with a robust balance sheet,” said Lois Cormack, President and Chief Executive Officer of Sienna. “In March,we completed the acquisition of 10 high-quality retirement residences, further executing on our strategy to expand our retirement portfolio in key markets, and taking a transformative step towards achieving a 50/50 portfolio mix of retirement and long-term care/residential care.”

Financial and Operating Highlights:

Notes:

1. 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 of the Company believes that NOI and OFFO are relevant measures of the Company’s earnings performance, and AFFO is a relevant measure of the Company’s ability to earn cash and pay dividends. The IFRS measurement most directly comparable to OFFO and AFFO is net income and cash flow from operating activities, respectively.
2. Payout Ratio is calculated using dividends declared per share divided by the basic AFFO per share for the respective periods.

2018 First Quarter

Revenue increased by $11.4 million or 8.5% to $145.4 million over the comparable prior year period.  The increase was principally related to the revenues generated from the acquisitions completed during 2017 and Q1 2018.

Operating expenses increased by $6.4 million or 6.1% to $113.0 million over the comparable prior year period. The increase was principally related to timing of expenditures and expenses incurred by the properties acquired during 2017 and Q1 2018, partially offset by a prior year tax adjustment of $1.3 million.

NOI increased by $4.9 million or 18.0% to $32.4 million over the comparable prior year period. 

The Company generated net income of $1.0 million for the three months ended March 31, 2018, which was lower than the comparable prior year period. The decrease was principally related to the transaction costs incurred for the acquisition in Q1 2018 and an increase in depreciation and amortization, partially offset by income generated from the acquisitions completed during 2017 and Q1 2018.

OFFO increased by $4.3 million or 30.2% to $18.5 million over the comparable prior year period. The increase was principally related to the income generated from the acquisitions completed during 2017 and Q1 2018, and a prior year tax adjustment of $1.3 million, partially offset by the dilution of earnings from the February public offering in connection with the Acquisition that was completed in March, and incremental interest expense on the acquisitions completed during 2017 and Q1 2018.

AFFO increased by $4.2 million or 24.9% to $20.8 million over the comparable prior year period. The increase was principally related to the increase in OFFO noted above and income support received, partially offset by an increase in maintenance capital expenditures due to the timing of such expenditures and the Company’s growth.

Conference Call

The toll-free dial-in number for participants is 1-844-543-5234, please enter pass code: 6782748. 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 May 11, 2019 and archived on Sienna's website.

About Sienna Senior Living
Sienna Senior Living is a leading seniors’ living provider with 85 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 12,000 employees are passionate about helping residents live fully every day, and were the driving force behind Sienna being named one of Canada’s Most Admired Corporate Cultures in 2017.  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/residential 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
Nitin.Jain@siennaliving.ca

Source: Sienna Senior Living