Overview

* Extendicare ( EXETF ) Q3 revenue beats analyst expectations

* Adjusted EBITDA increased driven by home health care growth

* Company completed acquisition of Closing the Gap for C$75.1 mln in cash

Outlook

* Company anticipates C$1.1 mln in annualized cost synergies from Closing the Gap acquisition

* Company sees opportunity for further acquisitions in fragmented seniors care market

Result Drivers

* HOME HEALTH CARE GROWTH - Co attributes Q3 revenue increase to 24.6% growth in home health care ADV, including contributions from Closing the Gap

* ACQUISITIONS BOOST - Revenue growth driven by acquisition of Closing the Gap and nine Class C LTC homes

* LONG-TERM CARE IMPROVEMENTS - Co cites improved LTC funding and occupancy rates as contributors to revenue growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat C$440.28 C$415.40

Revenue mln mln (2

Analysts

)

Q3 Net C$24.12

Income mln

Q3 C$50.77

Adjusted mln

EBITDA

Q3 C$29.54

Adjusted mln

FFO

Q3 11.50%

Adjusted

EBITDA

Margin

Q3 C$374.37

Operatin mln

g

Expenses

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "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$16.50, about 2.2% above its November 10 closing price of C$16.14

* The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release:

For questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact .

(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.)