Overview

* Extendicare ( EXETF ) 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 ( EXETF ) anticipates Q3 impact from Closing the Gap acquisition

* Company expects Ontario LTC funding policy to support redevelopment

* Extendicare ( EXETF ) 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/Mis Actual Consensu

s s

Estimate

Q2 Miss C$383.44 C$385.70

Revenue mln mln (3

Analysts

)

Q2 Net C$31.93

Income mln

Q2 C$39.78

Adjusted mln

EBITDA

Q2 C$24.78

Adjusted mln

FFO

Q2 10.4%

Adjusted

EBITDA

Margin

Q2 C$328.47

Operatin mln

g

Expenses

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 ( EXETF ) 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:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)