Extendicare Announces 2025 Third Quarter Results
Executive Summary
- Extendicare reported strong Q3 2025 results, with Adjusted EBITDA up 36.6% YoY to $46.9 M and net earnings rising 48% to $24.1 M.
- Completed the cash acquisition of Closing the Gap for $75.1 M (funded partly by a $55 M draw on its senior secured credit facility) plus an earn‑out potential of $1.5–$2.0 M.
- Revenue grew 22.1% YoY to $440.3 M, driven by the Closing the Gap acquisition, nine Class C LTC home acquisitions and strong home‑health volume growth (ADV up 24.6%).
Key Details
- Acquisition – Closing the Gap
- Purchase price: $75.1 M cash (subject to working‑capital adjustments).
- Funding: cash on hand + $55.0 M draw on senior secured credit facility.
- Earn‑out: additional $1.5–$2.0 M payable at one‑year anniversary, tied to $3.0–$4.0 M of new‑business revenue.
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Expected cost synergies: ~$1.1 M annualized in year 1.
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Financial Highlights – Q3 2025 (vs. Q3 2024)
- Revenue: $440.3 M (+22.1%); adjusted for out‑of‑period LTC funding, $436.4 M (+22.1%).
- NOI(1): $65.9 M (+31.8%); excluding out‑of‑period items, $62.0 M (+28.3%).
- Adjusted EBITDA(1): $50.8 M (+36.6%); excl. out‑of‑period, $46.9 M (+36.6%).
- Net earnings: $24.1 M (+48%).
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AFFO(1): $29.5 M ($0.349 per basic share); excl. out‑of‑period, $26.2 M ($0.309).
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Financial Highlights – Nine Months Ended Sep 30 2025 (vs. 2024)
- Revenue: $1,198.4 M (+13.2% adjusted).
- NOI(1): $171.1 M (+21.3%).
- Adjusted EBITDA(1): $126.2 M (+28.9%).
- Net earnings: $71.1 M (+28.6%).
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AFFO(1): $74.1 M ($0.877 per basic share).
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Segment Performance
- Long‑Term Care: Revenue $237.9 M (+17.9%); NOI $31.6 M; occupancy 98.5% (up 10 bps).
- Home Health Care: ADV 37,609 (↑24.6% YoY); revenue $186.8 M (+35%); NOI $25.4 M (+63%).
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Managed Services: Revenue $15.6 M (‑17.4%); NOI $8.9 M; beds served 152,100 (↑6%).
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Liquidity – Cash & cash equivalents: $165.7 M; undrawn revolving credit facility capacity: $154.0 M.
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Dividend – Board declared a cash dividend of $0.042 per share for November 2025 (payable Dec 15, 2025).
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Conference Call – Scheduled for Nov 12 2025, 11:30 a.m. EDT; webcast available on company website.
Notable Quotes
“This quarter marks our strongest performance in recent years, reflecting margin improvements across all segments, augmented by a full quarter impact of our recent acquisitions,” — Dr. Michael Guerriere, President & CEO.
Materiality Assessment: Material – Positive (significant earnings growth and material acquisition).