Canada's Extendicare Q2 revenue misses estimates
Overview
Extendicare Q2 revenue rises 11.4% but misses analyst expectations
Adjusted EBITDA grows 15.4% to C$39.8 mln, driven by home health care
Net earnings increase by C$6.0 mln to C$31.9 mln in Q2
Outlook
Extendicare anticipates Q3 impact from Closing the Gap acquisition
Company expects Ontario LTC funding policy to support redevelopment
Extendicare sees increased liquidity from C$375 mln credit facility
Result Drivers
HOME HEALTH CARE GROWTH - Home health care average daily volume increased by 10.9%, driving revenue growth
LTC ACQUISITION - Acquisition of nine Class C LTC homes from Revera contributed to revenue and NOI growth
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | C$383.44 mln | C$385.70 mln (3 Analysts) |
Q2 Net Income |
| C$31.93 mln |
|
Q2 Adjusted EBITDA |
| C$39.78 mln |
|
Q2 Adjusted FFO |
| C$24.78 mln |
|
Q2 Adjusted EBITDA Margin |
| 10.4% |
|
Q2 Operating Expenses |
| C$328.47 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the healthcare facilities & services peer group is "buy"
Wall Street's median 12-month price target for Extendicare Inc is C$15.40, about 17.8% above its August 6 closing price of C$12.66
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 18 three months ago
Press Release: ID:nGNXc2sCJk
