Core Insights - Extendicare Inc. reported its strongest performance in recent years for Q3 2025, with significant margin improvements across all segments and a notable increase in home health care volumes by almost 25% year-over-year, driven by both organic growth and acquisitions [3][6]. Financial Performance - Revenue for Q3 2025 increased by $81.2 million to $440.3 million, representing a 22.1% increase when excluding out-of-period funding impacts [9]. - Adjusted EBITDA for Q3 2025 rose by $14.7 million to $50.8 million, reflecting a 36.6% increase compared to Q3 2024 [9][8]. - Net earnings for Q3 2025 increased by $7.8 million or 48.0% to $24.1 million, primarily due to the rise in Adjusted EBITDA [9]. Segment Performance - Long-term care revenue increased by $36.1 million or 17.9% to $237.9 million in Q3 2025, with NOI rising to $31.6 million and a margin of 13.3% [13][14]. - Home health care revenue reached $186.8 million in Q3 2025, a 35.0% increase from Q3 2024, with an average daily volume (ADV) growth of 24.6% [17][18]. - Managed services revenue decreased by $3.3 million or 17.4% to $15.6 million, primarily due to the sale of Class C LTC homes [20]. Acquisition Impact - The acquisition of Closing the Gap was completed on July 1, 2025, for $75.1 million, which is expected to generate additional purchase price from earnouts and approximately $1.1 million in annualized cost synergies in the first year [4][5]. Business Updates - The number of third-party and joint venture beds serviced by SGP increased to approximately 152,100, a 6.0% rise from the previous year [19]. - The company operates a network of 99 long-term care homes and delivers approximately 13.5 million hours of home health care services annually [26]. Financial Position - As of September 30, 2025, Extendicare had cash and cash equivalents of $165.7 million and access to an additional $154.0 million under its revolving credit facility, indicating strong liquidity [21].
Extendicare Announces 2025 Third Quarter Results