Extendicare (OTCPK:EXET.F) Earnings Call Presentation

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]