Acquisition Overview - Extendicare is acquiring CBI Home Health for $570 million[37, 94] - The acquisition is expected to be accretive to Extendicare's AFFO per share by 15% and earnings per share by 9%[34] - Post-synergies, the accretion is expected to increase to 20% for AFFO per share and 15% for earnings per share[34] - CBI Home Health's revenue for the twelve months ended July 31, 2025, was $478 million, with adjusted EBITDA of $61.9 million[34, 35, 87] - The purchase price represents 9.4x EV/Adjusted EBITDA pre-synergies and 8.4x post-synergies[94] Financing and Leverage - The acquisition will be funded through a combination of $26 million cash on hand, $200 million equity private placement, $205 million term loan, and $154 million revolver[37, 98] - Pro forma total debt to Adjusted EBITDA is expected to be 3.3x at transaction close[99] Extendicare's Business Segments - ParaMed, Extendicare's home health care segment, delivers over 13.5 million hours of home health care annually across 3 provinces[28, 40] - Extendicare operates 59 fully owned long-term care homes and manages 40 homes, representing approximately 7% of the Canadian market and 13% of the Ontario market[28] - Extendicare's managed services segment serves approximately 152,000 third-party and JV beds[42, 71] Market and Growth - The number of Canadians aged 85+ is projected to double by 2036 and triple by 2051[48] - ParaMed's care volumes grew by more than 10% in 2024 vs 2023 and increased 13% YTD Q3 2025 vs YTD Q3 2024[51] - Extendicare has a joint venture with Axium Infrastructure to redevelop LTC homes, with six homes under construction and 1,408 new beds replacing 1,097 Class C beds[77, 78]

Core Viewpoint - Nova Leap Health Corp. reported record financial results for Q3 2025, achieving significant growth in revenues and Adjusted EBITDA, reflecting strong operational performance and strategic execution [2][4][7]. Financial Performance - Q3 2025 revenues reached $8,264,326, marking a 3% increase from Q2 2025 and a 29% increase from Q3 2024 [2]. - Adjusted EBITDA for Q3 2025 was $670,706, up 16.1% from Q2 2025 and 76.9% from Q3 2024 [4]. - The gross profit margin was 39.6% in Q3 2025, compared to 40.2% in Q2 2025 and 38.0% in Q3 2024 [10]. Record Achievements - The company set nine financial records in Q3 2025, including consolidated revenues, gross margin, and Adjusted EBITDA [5][7]. - Canadian and U.S. operating segments also achieved record revenues, gross margins, and Adjusted EBITDA [5]. Operational Insights - The company has established a new performance benchmark with Adjusted EBITDA averaging over $400,000 quarterly from Q2 2023 to Q1 2025, now reset to higher levels [8]. - The company generated income from operating activities of $418,553 in Q3 2025, an increase from previous quarters [10]. Financial Position - As of September 30, 2025, the company had available cash of $1,571,716 and access to an unutilized revolving credit facility of $1,077,509 [10]. - Total demand loans and promissory notes outstanding were $2,300,800, resulting in a leverage ratio of 1.18 times to trailing twelve-month Adjusted EBITDA [10]. Strategic Focus - The company emphasizes disciplined growth, profitability, and long-term value creation, supported by a strong balance sheet and positive operating cash flow [9][10].

Core Insights - Extendicare Inc. reported strong financial results for Q2 2025, with significant growth in revenue and adjusted EBITDA, driven by strategic acquisitions and increased demand for services [3][8][15]. Financial Performance - Revenue for Q2 2025 increased by $35.0 million to $383.4 million, representing an 11.4% growth when excluding out-of-period LTC funding from Q2 2024 [15][29]. - Adjusted EBITDA rose by $5.3 million or 15.4% to $39.8 million, reflecting growth in home health care and long-term care segments [8][15]. - Net earnings increased by $6.0 million to $31.9 million, supported by higher adjusted EBITDA and other income [15][30]. Strategic Acquisitions - The company completed the acquisition of Closing the Gap for approximately $75.1 million, expected to add 1.1 million service hours to the home health care segment [3][10]. - The acquisition of nine LTC homes from Revera for $41.3 million was finalized, enhancing the company's long-term care portfolio [6][15]. - The sale of three LTC projects to Axium JV generated net cash proceeds of $56.3 million, resulting in a gain of $11.1 million [4][15]. Operational Highlights - Home health care average daily volume (ADV) increased by 10.9% to 33,310 in Q2 2025 [8][23]. - Long-term care average occupancy rose to 98.3%, up 50 basis points from the previous year [19][20]. - The number of third-party and joint venture beds serviced by SGP reached approximately 149,300, a 5.9% increase from the prior year [24]. Financial Position - As of June 30, 2025, Extendicare had cash and cash equivalents of $72.6 million, with access to an additional $152.2 million under its revolving facility [26]. - The company increased its senior secured credit facility to $375.0 million, enhancing liquidity for future growth [3][8]. Dividend Declaration - The Board of Directors declared a cash dividend of $0.042 per share for August 2025, payable on September 15, 2025 [31].