MARKHAM, Ontario, Feb. 26, 2026 (GLOBE NEWSWIRE) -- Extendicare Inc. (“Extendicare” or the “Company”) (TSX: EXE) today reported results for the three and twelve months ended December 31, 2025. Fourth Quarter 2025 Highlights Adjusted EBITDA(1), excluding out-of-period items, increased by $12.2 million or 36.4% from Q4 2024 to $45.6 million, driven primarily by continued organic growth in the home health care segment and contributions from the acquisition of nine Class C LTC homes and Closing the Gap.Home hea ...

Core Viewpoint - Extendicare Inc. has declared a cash dividend of C$0.042 per common share for February 2026, payable on March 16, 2026, to shareholders of record on February 27, 2026, and this dividend is classified as an "eligible dividend" under the Income Tax Act (Canada) [1]. Company Overview - Extendicare is a prominent provider of care and services for seniors in Canada, operating under various brands including Extendicare, ParaMed, Extendicare Assist, and SGP Purchasing Network [2]. - The company operates a network of 99 long-term care homes, with 59 owned and 40 under management contracts [2]. - Extendicare delivers approximately 13.5 million hours of home health care services annually and provides group purchasing services for about 152,100 beds across Canada [2]. - The company employs around 28,000 qualified and dedicated team members focused on delivering high-quality care and services [2].

Core Viewpoint - Extendicare Inc. plans to release its financial results for Q4 2025 on February 26, 2026, with a conference call scheduled for February 27, 2026, to discuss the results [1]. Company Overview - Extendicare is a leading provider of care and services for seniors in Canada, operating under various brands including Extendicare, ParaMed, Extendicare Assist, and SGP Purchasing Network [4]. - The company operates 99 long-term care homes, with 59 owned and 40 under management contracts [4]. - Extendicare delivers approximately 13.5 million hours of home health care services annually and provides group purchasing services for about 152,100 beds across Canada [4]. - The company employs around 28,000 qualified and dedicated team members focused on delivering high-quality care and services [4].

Core Viewpoint - Extendicare Inc. has declared a cash dividend of C$0.042 per common share for January 2026, payable on February 16, 2026, to shareholders of record on January 30, 2026, designated as an "eligible dividend" under the Income Tax Act (Canada) [1] Company Overview - Extendicare is a leading provider of care and services for seniors in Canada, operating under various brands including Extendicare, ParaMed, Extendicare Assist, and SGP Purchasing Network [2] - The company operates a network of 99 long-term care homes, with 59 owned and 40 under management contracts [2] - Extendicare delivers approximately 13.5 million hours of home health care services annually and provides group purchasing services for about 152,100 beds across Canada [2] - The company employs around 28,000 qualified and dedicated team members focused on delivering high-quality care and services [2]

Core Viewpoint - Extendicare Inc. has declared a cash dividend of C$0.042 per common share for December 2025, payable on January 15, 2026, to shareholders of record on December 31, 2025, designated as an "eligible dividend" under the Income Tax Act (Canada) [1]. Company Overview - Extendicare is a leading provider of care and services for seniors in Canada, operating under various brands including Extendicare, ParaMed, Extendicare Assist, and SGP Purchasing Network [2]. - The company operates a network of 99 long-term care homes, with 59 owned and 40 under management contracts [2]. - Extendicare delivers approximately 13.5 million hours of home health care services annually and provides group purchasing services for about 152,100 beds across Canada [2]. - The company employs around 28,000 qualified and dedicated team members focused on delivering high-quality care and services [2].

Group 1 - Extendicare Inc. declared a cash dividend of C$0.042 per common share for December 2025, payable on January 15, 2026, to shareholders of record on December 31, 2025 [1] - The dividend is classified as an "eligible dividend" under the Income Tax Act (Canada) [1] Group 2 - Extendicare is a leading provider of care and services for seniors in Canada, operating under various brands including Extendicare and ParaMed [2] - The company operates 99 long-term care homes, with 59 owned and 40 under management contracts, and delivers approximately 13.5 million hours of home health care services annually [2] - Extendicare provides group purchasing services to third parties representing around 152,100 beds across Canada and employs approximately 28,000 qualified team members [2]

Company Overview - Nova Leap Health Corp. is a growing home health care organization operating in one of the fastest-growing industries in the U.S. and Canada, focusing on individual and family-centered care, particularly for those requiring dementia care [3] - The company has achieved notable rankings, including 42 on the 2021 Report on Business ranking of Canada's Top Growing Companies, 2 in 2020, and 10 in the 2019 TSX Venture 50™ in the Clean Technology & Life Sciences sector [3] - Nova Leap has a geographically diversified presence with operations in New England, Southeastern, South Central, and Midwest regions of the United States, as well as in Nova Scotia, Canada [3] Stock Options Issuance - The company has granted 950,000 incentive stock options to directors, officers, and senior employees, which are exercisable for a period of 10 years at an exercise price of CAD$0.35 per share [2] - The stock options vest 25% immediately and 25% on each anniversary date of the grant [2] - The options are granted under the terms and conditions of the company's Third Amended and Restated Equity Incentive Plan [2]

Core Points - Extendicare Inc. has completed a private placement of common shares, issuing 10,640,000 shares at an issue price of $18.80, resulting in gross proceeds of approximately $200 million [1][2] - The net proceeds of approximately $192 million will be used to partially fund the acquisition of CBI Home Health by Extendicare's subsidiary, ParaMed Inc. [3] - The private placement was co-led by CIBC Capital Markets and BMO Capital Markets, along with a syndicate of underwriters [2] Financial Details - The total gross proceeds from the private placement amount to approximately $200 million, with net proceeds expected to be around $192 million after deducting underwriters' fees and expenses [1][3] - The previously announced $150 million equity bridge facility will be cancelled following the closing of the private placement [5] Company Overview - Extendicare is a leading provider of care and services for seniors in Canada, operating 99 long-term care homes and delivering approximately 13.5 million hours of home health care services annually [7] - The company employs around 28,000 qualified team members dedicated to providing high-quality care [7]

Core Insights - Extendicare Inc. announced the acquisition of CBI Home Health for a cash purchase price of $570 million, which will enhance its service offerings and strengthen its market position in home health care [2][3][11] - The acquisition is expected to generate significant synergies and improve financial metrics, including a projected 20% accretion in AFFO per share and 15% in earnings per share [9][11] Acquisition Details - The acquisition will be funded through a combination of a $264.5 million upsizing to Extendicare's existing credit facility and a $200 million bought deal private placement equity offering [5][15][16] - CBI Home Health delivered over 10 million hours of care annually across seven provinces, with a revenue of approximately $477.9 million and an Adjusted EBITDA of $61.9 million for the twelve months ended July 31, 2025 [10][11] Financial Metrics - The acquisition price represents an estimated purchase price multiple of 9.4x CBI Home Health's Adjusted EBITDA, which could improve to approximately 8.4x after accounting for expected synergies of about $7.4 million [11][12] - Extendicare's pro forma total debt to Adjusted EBITDA ratio is projected to be 3.3x as of September 30, 2025, post-acquisition [8][15] Strategic Rationale - The acquisition aligns with Extendicare's growth strategy by enhancing its capabilities in home health care and expanding its geographic footprint, particularly in Western Canada [6][9] - The combination of ParaMed and CBI Home Health is expected to improve access to community-based care and leverage technology for better customer experience and cost efficiencies [6][9] Offering Details - Extendicare plans to issue 10.64 million common shares at a price of $18.80 per share, aiming for gross proceeds of approximately $200 million from the private placement [5][17] - The closing of the offering is anticipated around December 3, 2025, subject to regulatory approvals [17]

Summary of Extendicare's Conference Call Company Overview - Extendicare is a leading Canadian provider of seniors' care and services, operating in three segments: long-term care, home health care, and managed services [2][3] - The company has a strong presence in the long-term care sector, operating 99 homes and is the largest operator in Canada [2] Acquisition of CBI Home Health - Extendicare announced the acquisition of CBI Home Health, which is expected to create the largest home health care platform in Canada [4][16] - CBI Home Health delivered over 10 million hours of service and generated CAD 478 million in revenue with CAD 62 million in adjusted EBITDA for the 12 months ending July 31, 2025 [4] - The acquisition is immediately accretive to earnings per share and will be funded through a combination of credit facility upsizing, a private placement equity offering, and cash on hand [4] Financial Performance and Growth Strategy - Extendicare's consolidated revenue is projected to reach CAD 1.7 billion with an adjusted EBITDA of CAD 166 million on a pro forma basis as of September 30, 2025 [12] - The company has achieved a 55% cumulative average growth rate in adjusted EBITDA since 2022, driven by M&A and operational execution [12] - The acquisition of CBI Home Health is expected to provide CAD 7.4 million in IT and cost synergies within the first two years, reducing the purchase price multiple from 9.4 to 8.4 times adjusted EBITDA [14] Market Dynamics and Demand - The Canadian seniors' care market is characterized by favorable demographics, with the number of Canadians aged 85 and older expected to double by 2036 and triple by 2051 [6] - There is a significant supply-demand imbalance in long-term care beds, with the ratio of beds per 1,000 Ontarians over 75 declining steadily [7] - Home health services are increasingly in demand due to pressures on acute care hospitals and a shortage of long-term care beds [8] Business Segments and Operations - Extendicare's business model is diversified, with nearly 55% of net operating income (NOI) derived from service segments [6] - The long-term care segment has returned to pre-pandemic occupancy levels, with occupancy rates above 97% [13] - Managed services, which include management and consulting services, have a high NOI margin of 50-55% [9] Future Outlook - Extendicare plans to continue pursuing development activities in a capital-efficient manner through its joint venture with Axiom Infrastructure, with multiple projects in the pipeline [10] - The acquisition of CBI Home Health enhances Extendicare's capabilities and geographic footprint, particularly in Alberta, and aligns with its services-focused strategy [16] Conclusion - The acquisition of CBI Home Health is a transformative step for Extendicare, positioning it to capitalize on favorable industry dynamics and enhance its service offerings [16]