Core Insights - Extendicare Inc. reported strong fourth quarter and full year results for 2024, highlighting significant growth in net operating income (NOI) and margins across all segments, driven by strategic transformations implemented over the past two years [4][15][20] Financial Performance - Revenue for Q4 2024 increased by 11.8% to $391.6 million, primarily due to long-term care (LTC) funding increases and growth in home health care services [15][28] - NOI for Q4 2024 rose to $53.8 million, reflecting a 27.1% increase when excluding out-of-period funding [15][28] - Adjusted EBITDA for Q4 2024 increased to $39.7 million, aligning with the growth in NOI [15][28] - Net earnings for Q4 2024 increased by $11.3 million to $19.9 million, driven by improved Adjusted EBITDA and a decline in other expenses [15][28] Business Segments - Long-term care revenue increased by 9.0% to $224.9 million in Q4 2024, with average occupancy rising to 98.0% [18][19] - Home health care revenue grew by 16.2% to $147.8 million in Q4 2024, supported by a 10.1% increase in average daily volume [21][22] - Managed services revenue increased by 13.8% to $18.8 million, driven by growth in SGP clients [24][25] Strategic Developments - The company announced an agreement to acquire nine LTC homes from Revera for approximately $60.3 million, expected to close in Q2 2025 [5][6] - Extendicare opened a new 192-bed LTC home in Kingston and a 256-bed LTC home in Stittsville, enhancing its service capacity [10][11] - A new $275 million senior secured credit facility was established, enabling the early redemption of 2025 convertible debentures and providing flexibility for future capital allocation [4][12] Dividend and Shareholder Returns - The company increased its dividend by 5.0% to 4.2 cents per month, reflecting improved performance and a payout ratio below 50% [13][15] Financial Position - As of December 31, 2024, Extendicare had cash and cash equivalents of $121.8 million, with access to an additional $108.5 million under its new credit facility [26][28]