(TSX Symbol: ACC) – Amica Mature Lifestyles Inc. (“Amica”
or the “Company”) is pleased to announce the Company’s operating
and financial results for the three and six months ended November
30, 2014.
SECOND QUARTER
HIGHLIGHTS
- FFO increased 8.6% and diluted FFO per
share increased $0.012 per share to $0.137 compared to Q2/14;
- AFFO increased 2.7% and diluted AFFO
per share increased $0.003 to $0.130 per share compared to
Q2/14;
- Revenues increased 5.0% to $36.0
million compared to Q2/14;
- Overall occupancy in mature same
communities(1) at November 30, 2014 was 90.8%, compared to 91.0% at
May 31, 2014;
- Overall occupancy in the Company’s
communities in lease-up at November 30, 2014 was 72.9% compared to
66.6% at May 31, 2014;
- Mature same communities MARPAS
increased by 2.6% compared to Q2/14. The Company has experienced
monthly year-over-year MARPAS increases in its mature same
communities for 59 consecutive months; and,
- The Board approved a Fiscal 2015 second
quarter dividend of $0.105 per common share.
“The second quarter of Fiscal 2015 built on the promising start
we experienced in the first quarter with a 5% increase in revenue
and a 2.7% or $0.003 per share increase in AFFO diluted per share
to $0.130” said Samir Manji, Amica’s Chairman & CEO. “We also
continued our progress towards strengthening our working capital
position by securing long term loans to replace some of our due on
demand and maturing loans. We are working to further reduce our due
on demand loan balance and complete refinancing of maturing loans
to cushion against potential interest rate fluctuations and expect
to report further progress on those fronts in the next
quarter.”
“We experienced an 11% growth in our retirement community margin
while realizing occupancy gains of 90 basis points within our
mature Ontario communities, as compared to the second quarter last
year,” said David Minnett, Amica’s President. “These results,
including a corporate restructuring during the quarter to simplify
our business and right-size our G&A, illustrate the progress we
are making to unlock the value within our portfolio. We will
continue to focus on our margin enhancement initiatives over the
next several quarters.”
FINANCIAL HIGHLIGHTS
The following table provides operational highlights for the
three months ended November 30, 2014 (“Q2/15”) compared to the
three months ended November 30, 2013 (“Q2/14”) and the six months
ended November 30, 2014 (“YTD Fiscal 2015”) compared to the six
months ended Nov 30, 2013 (“YTD Fiscal 2014”):
(Expressed in thousands of Canadian dollars, except per
share and share amounts)
Q2/15 Q2/14 Change
YTD Fiscal 2015
YTDFiscal2014
Change
$ $ $
$ $ $
Revenues
36,014 34,297 1,717
71,342 67,775 3,567
Retirement
community margin(1) 12,867 11,590 1,277
24,831 22,037 2,794
Net loss and comprehensive loss
attributable to: Amica shareholders
(1,123) (1,510) 387
(2,110) (1,840) (270) Non-controlling interests
(781)
(2,808) 2,027
(2,142) (4,959) 2,817
(1,904)
(4,318) 2,414
(4,252) (6,799) 2,547
Basic and diluted
loss per share attributable to: Amica shareholders:
(0.036) (0.049) 0.013
(0.069) (0.060) (0.009)
EBITDA(1)
10,219 9,192 1,027
19,964 17,618
2,346
FFO(1)
4,220 3,887 333
8,414
7,740 674 Diluted per share
0.137 0.125 0.012
0.272
0.250 0.022
AFFO(1)
4,031 3,925 106
8,178 7,728 450 Diluted per share
0.130 0.127 0.003
0.265 0.250 0.015
Weighted average number of
shares(000’s):
Basic
30,805 30,763
30,799 30,760 Diluted
30,892 30,978
30,894 30,973
(1) This is a Non-IFRS Financial Measure used
by the Company in evaluating its operating and financial
performance. Please refer to the cautionary statements under the
heading “NON-IFRS FINANCIAL MEASURES” in this news release. See
also “DEFINITION AND RECONCILIATION OF NON-IFRS FINANCIAL MEASURES”
section of the Company’s MD&A for the three and six months
ended November 30, 2014 which is available on SEDAR at
www.sedar.com for additional information on Non-IFRS Financial
Measures including reconciliations thereof to net income/loss and
comprehensive income/loss.
Consolidated revenues
Q2/15 revenues increased by 5.0% to $36.0 million compared to
$34.3 million in Q2/14. YTD Fiscal 2015 revenues increased by 5.3%
to $71.3 million compared to $67.8 million in YTD Fiscal 2014.
Retirement communities revenue and expenses1
Q2/15 retirement communities revenue increased 5.4% to $36.0
million (Q2/14: $34.1 million), compared with a 2.5% increase in
retirement communities expenses to $23.1 million (Q2/14: $22.5
million). YTD Fiscal 2015 retirement community revenues increased
by 5.8% to $71.2 million (YTD Fiscal 2015: $67.4 million), compared
with a 2.4% increase in retirement community expenses to $46.4
million (YTD Fiscal 2014: $45.3 million).
The following table summarizes the Company’s consolidated
retirement communities margin (retirement communities revenues less
retirement communities expenses before finance costs and
depreciation expense) on a mature community and lease-up community
basis for Q2/15 compared to Q2/14:
Q2/15 Q2/14
Change
Q2/15 Q2/14
Change
$ $
$
% % % Mature
communities
11,944 11,323
621
36.5 35.4
1.1 Lease-up communities
923
267 656
28.6
12.4 16.2 Consolidated communities
12,867 11,590 1,277
35.8 34.0 1.8
Consolidated retirement communities margin increased $1.3
million, due to $0.6 million increase in mature communities margin
on a same community basis and $0.7 million increase in lease-up
communities margin resulting in an overall 1.8% increase in
consolidated retirement communities margin percentage to 35.8% in
Q2/15 from 34.0% in Q2/14.
The following table summarizes the Company’s consolidated
retirement communities margin (retirement communities revenues less
retirement communities expenses before finance costs and
depreciation expense) on a mature community and lease-up community
basis for YTD Fiscal 2015 compared to YTD Fiscal 2014:
YTD 2015 YTD 2014
Change
YTD 2015 YTD 2014
Change
$ $
$
% %
% Mature communities
23,164
21,936 1,228
35.6
34.6 1.0 Lease-up communities
1,667 101 1,566
26.7 2.5 24.2 Consolidated
communities
24,831 22,037
2,794
34.9 32.7
2.2
Consolidated retirement communities margin increased $2.8
million, due to $1.2 million increase in mature communities margin
on a same community basis and $1.6 million increase in lease-up
communities margin resulting in a 2.2% increase in consolidated
retirement communities margin percentage to 34.9% in YTD Fiscal
2015 from 32.7% in YTD Fiscal 2014.
Other income
Other income may consist of management fees, design and
marketing fees, and interest income from non-consolidated
co-tenancies and cash balances.
In Q2/15, less than $0.1 million of other income was recognized
from the Amica at Oakville project, compared to $0.2 million in
Q2/14.
For YTD Fiscal 2015, $0.1 million of other income was recognized
compared to $0.4 million in the prior period.
Finance costs
Finance costs are summarized as follows:
Q2/15 Q2/14
Change
YTD Fiscal2015
YTD Fiscal2014
Change
$ $
$
$ $
$
Interest expense and standby fees
4,689 4,986 (297)
9,441 9,610 (169) Amortization and
accretion, net
207 432 (225)
437 815 (378) Guarantee
fees
62 62 -
125 128 (3) Change in fair value of
interest rate swaps
152 779
(627)
100 211
(111)
5,110
6,259 (1,149)
10,103
10,764 (661)
Interest expense and standby fees decreased by $0.3 million to
$4.7 million in Q2/15 and by $0.2 million in YTD Fiscal 2015 to
$9.4 million principally due to interest rate reductions achieved
on mortgage renewals and refinancing; these savings were partially
offset by an increase in interest expense on the Company’s demand
operating loan.
Guarantee fees were unchanged at $0.1 million from Q2/14 to
Q2/15 and YTD Fiscal 2015 to YTD Fiscal 2014.
In Q2/15, an unrealized loss of $0.2 million was recorded in
respect of interest rate swaps on floating rate mortgages compared
to an unrealized loss of $0.8 million for Q2/14. For YTD Fiscal
2015, the unrealized loss was $0.1 million compared to an
unrealized loss of $0.2 million for YTD Fiscal 2014. Assuming the
Company holds these mortgages and the interest rate swaps for their
full terms, any unrealized gains or losses will reverse and the
Company will not realize any gains or losses in respect of these
interest rate swaps.
General and administrative (“G&A”) expenses
General and administrative expense increased by $0.1 million or
5.6% to $2.7 million in Q2/15 (Q2/14 - $2.6 million) and by $0.1
million or 2.9% to $4.9 million in YTD Fiscal 2015 (YTD Fiscal 2014
- $4.8 million). Q2/15 and YTD Fiscal 2015 G&A expenses include
$0.3 million in severance costs relating to the Company’s Fiscal
2015 objective to simplify the organization (see “LOOKING AHEAD”).
These severance costs were incurred in reorganizing the Company’s
corporate functions supporting the retirement communities including
a reduction in personnel. Going forward the re-organization is
anticipated to result in a net annual G&A expense savings of
approximately $0.5 million. The Q2/15 and YTD Fiscal 2015 G&A
expense increases were partially offset by $0.2 million and $0.1
million respectively in lower stock based compensation. YTD Fiscal
2015 G&A expenses also include $0.3 million in savings from
actual bonus compensation being less than the amount accrued at May
31, 2014.
Depreciation expense
Depreciation expense for Q2/15 decreased by 2.3% to $7.5 million
compared to Q2/14 and by 1.0% to $14.9 million in YTD Fiscal
2015.
NET LOSS AND COMPREHENSIVE LOSS
For Q2/15, the net loss was $1.9 million compared to $4.3
million in Q2/14. The primary reasons for the decreased net loss
were an increase in retirement community margin and reduction in
finance costs. For YTD Fiscal 2015, the net loss was $4.3 million
as compared to $6.8 million in YTD Fiscal 2014. The primary reasons
for the decreased loss were an increase in retirement community
margin and reduction in finance costs which was partially offset by
lower other income and a lower income tax recovery.
The Q2/15 net loss attributable to Amica shareholders was $1.1
million compared to $1.5 million in Q2/14. The YTD Fiscal 2015 net
loss attributable to Amica shareholders was $2.1 million compared
to $1.8 million in YTD Fiscal 2014.
EARNINGS BEFORE INTEREST TAXES AND DEPRECIATION
(EBITDA)
Q2/15 EBITDA increased by $1.0 million to $10.2 million,
compared to $9.2 million in Q2/14. The YTD Fiscal 2015 EBITDA was
$20.0 million compared $17.6 million in YTD Fiscal 2014. The
primary reason for the increases in Q2/15 and YTD Fiscal 2015
EBITDA is the increases in retirement communities margin.
FUNDS FROM OPERATIONS (FFO)
Q2/15 FFO increased 8.6% to $4.2 million ($0.137 per share
diluted) compared to $3.9 million in Q2/14 ($0.125 per share
diluted). YTD Fiscal 2015 FFO increased 8.7% to $8.4 million
($0.272 per share diluted) compared to $7.7 million in YTD Fiscal
2014 ($0.250 per share diluted).
ADJUSTED FUNDS FROM OPERATIONS (AFFO)
Q2/15 AFFO increased 2.7% to $4.0 million ($0.130 per share
diluted) compared to $3.9 million in Q2/14 ($0.127 per share
diluted). Q2/15 maintenance capital expenditures were $0.5 million
(Q2/14 – $0.7 million) inclusive of a $0.4 million maintenance
reserve (Q2/14 – $0.3 million).
YTD Fiscal 2015 AFFO increased 5.8% to $8.2 million ($0.265 per
share diluted) compared to $7.7 million in YTD Fiscal 2014 ($0.250
per share diluted). YTD Fiscal 2015 maintenance capital
expenditures were $1.1 million (YTD Fiscal 2014 – $1.3 million)
inclusive of a $0.8 million maintenance reserve (YTD Fiscal 2014 –
$0.7 million).
COMMUNITY UPDATE
Mature same community MARPAS increased by 2.6% for Q2/15
compared to Q2/14 and increased 2.7% for YTD Fiscal 2015 compared
to YTD Fiscal 2014. The Company has experienced monthly
year-over-year MARPAS increases in its mature same communities for
59 consecutive months. In addition to the ongoing focus on
occupancy and ancillary revenue, the continued success on the
MARPAS front is the result of the company wide efforts to raise
rents and rates upon turnover, to more accurately reflect the
quality of the services provided by Amica.
The following is a summary of occupancy in the Company’s mature
same communities:
Mature Same Community Occupancy
Overall(1)
Ontario(1) British
Columbia November 30, 2014 90.8%
90.4% 91.7% August 31, 2014
90.6% 89.6% 93.3% May 31, 2014 91.0% 90.2% 93.2% November 30, 2013
91.5% 89.5%
96.2%
(1) Amica at Bayview Gardens and Amica at
Windsor became Mature Communities effective July 1, 2014 and August
1, 2014 respectively. All occupancy figures in the above table,
including comparatives, reflect Amica at Bayview Gardens and Amica
at Windsor to report on a Mature Same Community basis.
The mature Ontario communities finished Q2/15 at 90.4%, up 0.8%
from Q1/15 and up 0.9% from 89.5% at Q2/14. British Columbia was
down 1.6% from Q1/15 at 91.7%. Overall occupancy for mature
communities was up 0.2% from Q1/15. We were pleased to see the
improvement in occupancy for the Ontario communities and the
overall mature portfolio improvement in Q2/15. Attention of all
management remains on extracting value for the services provided
and, in conjunction with effective expense control, ensuring those
gains flow to the bottom-line in the communities.
The following is a summary of overall occupancy in the Company’s
communities in lease-up(1):
Lease-up Communities January 11,
2015 73 .4%(2) November 30, 2014 72 .9% August
31, 2014 71 .3% May 31, 2014 66 .6% November 30, 2013
53 .8%
(1) At November 30, 2014, there were two
communities in lease-up: Amica at Aspen Woods and Amica at Quinte
Gardens. Amica at Aspen Woods became a lease-up community as of its
opening on August 9, 2013.
(2) Anticipated to increase to 76.8%
following an additional 13 net pending move-ins which reflect
suites that have been reserved with a deposit made for the
reservation, less suites for which notice of termination has been
received.
Progress was maintained in the two lease-up communities in
Q2/15, particularly with our first community in Calgary, Aspen
Woods. This community is on track to achieve stabilized occupancy
within proforma.
Construction Updates and Expansion Projects
Amica at Oakville, in Ontario, which commenced construction
(excavation and site servicing) in Q2/13 is expected to open in the
summer of 2015. The marketing program has been initiated and
reservations are now being accepted.
Upon obtaining construction financing, board approvals and
required permits, the Company plans to proceed with the Amica at
Swan Lake expansion, as well as the Amica at Dundas expansion. Both
the Amica at Swan Lake and Amica at Dundas expansions could
commence construction in the next several months.
Acquisition of Additional Ownership
Interests in Co-Tenancies Q2/15 andSubsequent
Property Date of Increase
Increase in ownership Amica at London June 2014 8.00% Amica
at Newmarket September 2014 6.00% Amica at Bayview September 2014
2.00% Amica at Windsor December 2014 0.50%
On September 30, 2014, the Company increased its ownership in
Amica at Newmarket by 6% from 56% to 62%; and in Amica at Bayview
by 2% from 66.5% to 68.5%. The aggregate cash consideration was
$0.4 million and included the issuance of $0.25 million in
non-interest bearing promissory notes payable which are due in one
year. As the Company controlled each property prior to the
acquisition of the additional interests, the non-controlling
interests were reduced by $0.4 million for the proportion that the
Company acquired in the two properties. These transactions resulted
in nominal deferred income tax which has been accounted for within
equity.
On December 31, 2014, the Company increased its ownership in
Amica at Windsor by 0.5% from 49.13% to 49.63%. The aggregate cash
consideration was $0.04 million. As the Company controlled the
property prior to the acquisition of the additional interest, the
non-controlling interests were adjusted for the proportion that the
Company acquired.
FINANCIAL POSITION
The Company’s consolidated cash and cash equivalents balance, as
at November 30, 2014, was $4.5 million compared to $5.3 million at
May 31, 2014.
The Company has a $20 million demand operating loan facility
secured by a 100% Company owned community. As at November 30, 2014,
$10.7 million is available to the Company under this loan facility
(amount available is net of $8.6 million drawn on the loan facility
and $0.7 million in letters of credit secured by the loan
facility). On January 13, 2015, the balance available on the demand
loan was approximately $9.1 million. The Company has received
proposals for increasing the financing on this property to
approximately $31 million split between a term loan and a reduced
demand operating loan facility. Proceeds of such a financing would
be used to repay the existing demand operating loan facility and
strengthen the Company’s cash position.
At November 30, 2014, the Company has a working capital
deficiency of $251.1 million (May 31, 2014 $262.2 million). This
working capital deficiency includes:
November 30, May 31,
2014
2014 Change
$ $
Mortgages due on demand
173,937 199,423 (25,486) Mortgages
maturing in next twelve months
45,870 33,172 12,698 Demand
operating loan
8,584 10,634 (2,050) Other current
liabilities
33,166 30,804 2,362 Less current assets
(10,498) (11,876)
1,378 Working capital deficiency
251,059 262,157
(11,098)
In the normal course of business, the Company finances its
properties in lease-up using mortgages payable due on demand and
regularly has mortgages on other properties that mature within one
year of the balance sheet date – these mortgages are reported in
the current portion of mortgages payable and contribute $219.8
million to the working capital deficiency at November 30, 2014 (May
31, 2014 - $232.6 million). The Company’s due on demand mortgages
payable are primarily on properties that have not achieved
stabilized occupancy. The Company monitors their occupancy and
income growth for opportunities to seek conventional term mortgage
financing to replace the due on demand loans.
The Company anticipates that it will be able to renew or replace
all of its mortgages payable as they mature. The following is a
summary of the Fiscal 2015 debt maturities refinanced in Q2/15, the
remaining maturities in Fiscal 2015 and the maturities in Fiscal
2016:
Re-financed/Renewed in Q2/15
In September 2014, the Company obtained a new $25.0 million term
loan to replace an existing $23.3 million due on demand mortgage.
The loan will mature on October 1, 2019. Principal and interest
payments will be made based on a 25 year amortization with interest
at 3.738%.
In November 2014, the Company obtained a new $7.7 million term
loan to replace an existing loan of approximately $3.1 million. The
loan will mature on December 1, 2024. Principal and interest
payments will be made based on a 25 year amortization with interest
at 4.16%.
Remaining Maturities in Fiscal
2015
A $21.6 million CMHC insured mortgage currently bearing interest
at 3.39% matures in March 2015 and it will have 20 years remaining
in its insured amortization period. The Company plans to renew this
mortgage.
Maturities in Fiscal 2016
The following is a summary of the loan maturities in Fiscal
2016:
- $5.2 million CMHC insured mortgage
currently bearing interest at 3.46%;
- $19.5 million non-CMHC insured mortgage
currently bearing interest at 4.52%;
- $28.2 million non-CMHC construction
loan currently bearing interest on a BA basis at 4.13%;
- $3.0 million non-CMHC loan currently
bearing interest at 6%;
- $29.7 million non-CMHC construction
loan currently bearing interest on a BA basis at 4.13%;
- $5.0 million non-CMHC loan currently
bearing interest at 6%;
- $1.5 million non-CMHC loan currently
bearing interest at 6%; and
- $38.3 million non-CMHC construction
loan currently bearing interest on a BA basis at 3.82%.
Current 5 and 10 year CMHC insured loan interest rates are
approximately 2.2% and 2.7% respectively. Current 5 and 10 year
non-CMHC loan interest rates are approximately 3.5% and 4.0%
respectively.
CAPITAL EXPENDITURES
In Q2/15, the Company incurred $1.2 million in capital
expenditures on its consolidated properties and corporate
operations and $0.2 million (Q2/14 – $0.3 million) are classified
as maintenance capital expenditures on real estate assets and
deducted from FFO in calculating AFFO.
Total capital expenditures for consolidated communities and
corporate operations for Fiscal 2015 are budgeted at $5.3 million,
of which $2.8 million are maintenance capital expenditures (Amica’s
proportionate share of these budgeted maintenance capital
expenditures is $2.2 million). Amica is committed to investing in
its properties to maintain the high standard it has set in luxury
retirement living.
SECOND QUARTER DIVIDEND
The Company’s Board of Directors (the “Board”) has approved a
quarterly dividend of $0.105 per common share on all issued and
outstanding common shares which will be payable on March 13, 2014,
to shareholders of the Company (the “Shareholders”) of record on
February 27, 2014.
RESULTS CONFERENCE CALL
Amica has scheduled a conference call to discuss the results on
Wednesday, January 14, 2014 at 10:00 am Pacific Time (1:00 pm
Eastern Time).
To access the call, dial: 1-416-847-6330
(Local/International access) 1-866-530-1553 (Toll-free access)
A slide presentation to accompany management’s comments during
the conference call will be available. To view the slides, access
Amica’s website at www.amica.ca and click on “Investor Relations” –
“Presentations & Webcasts”. Please log on at least 15 minutes
before the call commences.
The Company’s unaudited condensed consolidated interim
financial statements for the three and six months ended November
30, 2014 and the management’s discussion and analysis are available
on SEDAR at www.sedar.com and available on the Company’s
website at www.amica.ca.
CONDENSED CONSOLIDATED INTERIM
STATEMENTS OF FINANCIAL POSITION HIGHLIGHTS
(Expressed in thousands of Canadian dollars)
(Unaudited)
November 30, 2014 May 31, 2014
$ $
ASSETS
Current Cash and cash equivalents
4,504 5,282 Other
5,994 6,594
10,498
11,876
Non-current Deposits and other assets
1,171 1,665 Loans receivable from associates
2,698
2,644 Investments in associates
5,335 5,433 Property and
equipment
629,373 641,418
638,577 651,160 Total assets
649,075 663,036
LIABILITIES
Current Mortgages payable
231,916 240,660 Other
29,641 33,373
261,557 274,033
Non-current Mortgages
payable
262,983 254,583 Deferred income taxes
948 2,049
263,931
256,632 Total liabilities
525,488
530,665
EQUITY Equity attributable to owners
of the company
113,818 122,770 Non-controlling interests
9,769 9,601 Total equity
123,587 132,371 Total liabilities and equity
649,075 663,036
CONDENSED CONSOLIDATED INTERIM
STATEMENT OF COMPREHENSIVE LOSS
(Expressed in thousands of Canadian dollars, except per share
amounts)
(Unaudited)
3 Months Ended 6 Months Ended
November 30, November 30,
2014 2013
2014 2013
$ $
$ $
Revenues: Retirement communities
35,963 34,113
71,239 67,353 Other income
51
184
103 422
36,014
34,297
71,342 67,775
Expenses and
other items: Retirement communities
23,096 22,523
46,408 45,316 Depreciation
7,450 7,626
14,870
15,016 Finance costs
5,110 6,259
10,103 10,764
General and administrative
2,699 2,557
4,946 4,805
Share of losses from associates
- 25
24 36
38,355
38,990
76,351 75,937
Loss
before income tax (2,341) (4,693)
(5,009) (8,162)
Income tax
recovery: Deferred
437 375
757 1,363
437 375
757 1,363
Net loss and comprehensive
loss (1,904) (4,318)
(4,252) (6,799)
Net loss and comprehensive
loss attributable to: Owners of the Company
(1,123) (1,510)
(2,110) (1,840) Non-controlling
interests
(781) (2,808)
(2,142) (4,959)
(1,904)
(4,318)
(4,252) (6,799) Weighted
average shares (000’s) – basic and diluted
30,805 30,763
30,799 30,760
Basic and diluted loss per share
($0.04) ($0.05)
($0.07) ($0.06)
Forward-Looking Information
This news release contains “forward-looking information” within
the meaning of applicable securities laws (“forward-looking
statements”).
These forward-looking statements are made as of the date of this
news release and the Company does not intend, and does not assume
any obligation, to update these forward-looking statements, except
as otherwise required by law. Users of forward-looking statements
are cautioned that actual results may vary from forward-looking
statements contained herein. Forward-looking statements include,
but are not limited to, statements regarding future occupancy
rates; anticipated future revenues, revenue and margin
growth/enhancement, financial results and operating performance;
unlocking unrealized potential within our existing portfolio;
future MARPAS growth; interest rate savings on future re-financings
and mortgage renewals; expectations for interest rate swaps;
refinancing due on demand loans and/or maturing mortgages; renewing
maturing mortgages; expectations for refinancing the existing
demand operating loan to strengthen cash position and re pay the
loan; opening Amica at Oakville in summer 2015; Fiscal 2015 capital
expenditures of $5.3 million with Amica’s proportionate share of
maintenance capital expenditures being $2.2 million; proceeding
with the Amica at Swan Lake and Amica at Dundas expansions within
the next several months; Aspen Woods achieving stabilized occupancy
within proforma; $0.5 million annual G&A savings from recent
reorganization; the creation of long term shareholder value;
dividends and other similar statements concerning anticipated
future events, conditions or results that are not historical facts.
In certain cases, forward-looking statements can be identified by
the use of words such as “plans”, “expects” or “does not expect”,
“is expected”, “budget”, “scheduled”, “estimates”, “forecasts”,
“intends”, “anticipates” or “does not anticipate”, or “believes”,
or variations of such words and phrases or statements that certain
actions, events or results “may”, “could”, “would”, “might” or
“will be taken”, “occur” or “be achieved”. While the Company has
based these forward-looking statements on its expectations about
future events as at the date that such statements were prepared,
the statements are not a guarantee of the Company’s future
performance and are subject to risks, uncertainties, assumptions
and other factors which could cause actual results to differ
materially from future results expressed or implied by such
forward-looking statements. Such factors and assumptions include,
amongst others, the effects of general economic and market
conditions; actions by government authorities, including the
granting of zoning and other approvals and permits; uncertainties
associated with potential legal proceedings and negotiations,
including negotiations with respect to construction financing and
debt refinancing; and misjudgements in the course of preparing
forward-looking statements. In addition, there are known and
unknown risk factors which could cause the actual results,
performance or achievements of the Company to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Known risk
factors include, among others, risks related to dependence on the
ability of Amica’s co-tenancy participants to meet their
obligations; interest rate volatility in the marketplace; job
actions including strikes and labour stoppages; possible liability
under environmental laws and regulations, relating to removal or
remediation of hazardous or toxic substances on properties owned or
operated by Amica; risks associated with new developments,
including cost overruns and start-up losses; the ability of seniors
to pay for Amica’s services; regulatory changes; risks inherent in
the ownership of real property; operational risks inherent in
owning and operating residences; the risks associated with global
events such as infectious diseases, extreme weather conditions and
natural disasters; the availability of capital to finance growth or
refinance debt as it comes due; Amica’s ability to attract seniors
with its services and keep pace with changing consumer preferences,
as well as those factors discussed in the “Risks and Uncertainties”
section of the Company’s Management’s Discussion and Analysis for
the three and six months ended November 30, 2014, and in the “Risk
Factors” section of the Company’s Annual Information Form dated
August 15, 2014, filed with the Canadian Securities Administrators
and available at www.sedar.com. Although the Company has attempted
to identify important factors that could cause actual actions,
events or results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that forward-looking
statements, or the material factors or assumptions used to develop
such forward looking statements, will prove to be accurate.
Accordingly, readers should not place undue reliance on
forward-looking statements.
___________________________________
NON-IFRS FINANCIAL MEASURES
This news release makes reference to the following terms:
“Earnings Before Interest, Taxes, Depreciation and Amortization”
(or “EBITDA”), “Funds From Operations” (or “FFO”), “Adjusted Funds
From Operations” (or “AFFO”), “Monthly Average Revenue Per
Available Suite” (or “MARPAS”) and “Retirement Communities Margin”
(collectively the “Non-IFRS Financial Measures”). These Non-IFRS
Financial Measures are not recognized under IFRS and do not have
standardized meanings prescribed by IFRS. The Company considers
these Non-IFRS Financial Measures relevant in evaluating the
operating and financial performance of the Company, along with IFRS
measures such as net earnings (loss) and comprehensive income
(loss), basic and diluted earnings (loss) per share and cash
provided by (used in) operations. Definitions and detailed
descriptions of these terms are contained in the MD&A.
(1) Mature Same Communities: Effective
June 1, 2011, mature same communities was defined by the Company to
be mature communities that are classified as income-producing
properties for thirteen months after the earlier of reaching 90%
occupancy or 36 months of operation, with the exception of Amica at
Quinte Gardens. Amica at Quinte Gardens will be classified as a
mature community thirteen months after the earlier of reaching 90%
occupancy or two years post-acquisition by the Company.
ABOUT AMICA MATURE LIFESTYLES INC.
Amica Mature Lifestyles Inc., a Vancouver based public company,
is a leader in the management, marketing, design, development and
ownership of luxury seniors residences. There are 24 Amica Wellness
& Vitality™ Residences in operation in Ontario, British
Columbia and Alberta, Canada. Additionally, Amica has one residence
under construction in Oakville, Ontario, one residence in
pre-development in Calgary, Alberta and two existing operational
residences in Ontario with expansions that are in pre-development.
The common shares of Amica are traded on the Toronto Stock Exchange
under the symbol “ACC”. For more information, visit
www.amica.ca.
For further information, please contact:
Art Ayres
Chief Financial Officer
Amica Mature Lifestyles Inc.
(604) 630-3473
a.ayres@amica.ca
Troy Shultz
Manager, Investor Communications
Amica Mature Lifestyles Inc.
(604) 639-2171
t.shultz@amica.ca
1 Comparative information has been updated to reflect
communities that have become Mature communities since November 30,
2013 including Amica at Bayview Gardens and Amica at Windsor which
became Mature communities in Q1/15. Lease-up communities includes
Amica at Aspen Woods and Amica at Quinte Gardens.
Amica Mature Lifestyles Inc.Art Ayres, 604-630-3473Chief
Financial Officera.ayres@amica.caorTroy Shultz,
604-639-2171Manager, Investor Communicationst.shultz@amica.ca
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