News Column

Leisureworld Senior Care Corporation Reports 2014 Second Quarter Financial Results and Board Approval of Dividend Reinvestment Plan

August 13, 2014

MARKHAM, ONTARIO--(Marketwired - Aug. 13, 2014) - Leisureworld Senior Care Corporation (TSX:LW) ("Leisureworld" or "the Company") today announced its financial results for the three and six month periods ended June 30, 2014. Interim Condensed Financial Statements and Management's Discussion and Analysis are available on the Company's website at www.leisureworld.ca and www.sedar.com.

Second Quarter Highlights -- Operating Funds from Operations (3) per share diluted were up 27% -- Retirement Home same property NOI up 16% -- Overall improvement in same property NOI of 4% -- Board of Directors approved Dividend Reinvestment Plan



Lois Cormack, President and CEO of Leisureworld said, "We are pleased with our second quarter results, which showed improvements in a number of important metrics. In particular, we made good year over year progress on implementing our retirement home platform."

Ms. Cormack continued: "The Ministry's recent announcement about Long Term Care is a positive development. Preferred accommodation rates for a semi-private room will increase from $10 to $11 per resident per day and the premium for private accommodation will increase from $21.50 to $23.25 per day in Class A Long Term Care homes. These rate increases come into effect for residents admitted after September 1, 2014."

Financial and Operating Highlights:

---------------------------------------------------------------------------- Three Three Six Six months months months months ended ended ended ended $000s except occupancy, per share June 30, June 30, June 30, June 30, and ratio data 2014 2013 2014 2013 ---------------------------------------------------------------------------- Average total occupancy (LTC) 98.5% 99.0% 98.5% 98.9% ---------------------------------------------------------------------------- Average private occupancy (LTC) 99.1% 99.4% 98.9% 99.0% ---------------------------------------------------------------------------- Average occupancy (retirement) 81.8% 76.0% 82.3% 73.3% ---------------------------------------------------------------------------- Average occupancy (retirement with respite) (1) 83.0% --% 83.1% --% ---------------------------------------------------------------------------- Income before depreciation and amortization, net finance charges, transaction costs and the provision for (recovery of) income taxes $ 15,702$ 11,761$ 31,006$ 22,562 ---------------------------------------------------------------------------- Net Income (Loss) $ 376$ (968)$(17,688)$ (2,330) ---------------------------------------------------------------------------- Net Operating Income (NOI)(2, 4) $ 20,175$ 15,555$ 39,703$ 29,525 ---------------------------------------------------------------------------- Operating Funds from Operations (OFFO)(3, 4) $ 10,892$ 6,901$ 20,256$ 13,127 ---------------------------------------------------------------------------- OFFO per share diluted $ 0.290$ 0.229$ 0.540$ 0.442 ---------------------------------------------------------------------------- Adjusted Funds from Operations (AFFO)(4) $ 13,047$ 8,568$ 24,751$ 16,748 ---------------------------------------------------------------------------- AFFO per share diluted $ 0.345$ 0.282$ 0.655$ 0.561 ---------------------------------------------------------------------------- AFFO per share basic $ 0.360$ 0.292$ 0.683$ 0.572 ---------------------------------------------------------------------------- Dividends declared per share $ 0.225$ 0.225$ 0.450$ 0.450 ---------------------------------------------------------------------------- Payout Ratio(5) 62.5% 77.1% 65.9% 78.7% ----------------------------------------------------------------------------



Notes:

1. Respite occupancy data was not captured for 2013. 2. For the three and six month periods ended June 30, 2014, the Company recorded MOHLTC reconciliation adjustments in the current quarter that decreased revenue and NOI by $956. The adjustments relate to the difference between the Company's annual reconciliation filings with the MOHLTC and their assessments of those filings. The current adjustment relates to the 2007 through 2011 reconciliation years. These adjustments are based on current period confirmation with the MOHLTC and the Company's best estimate of the probability of recovery of the outstanding amounts. 3. As a result of adopting the REALpac FFO definition for presentation purposes in the first quarter of 2014, the Company has introduced the new measure of operating funds from operations ("OFFO"), which is equivalent to its historical presentation of funds from operations ("FFO"). 4. Net operating income (loss) ("NOI"), funds from operations ("FFO"), operating funds from operations ("OFFO") and adjusted funds from operations ("AFFO") are not measures recognized under IFRS and do not have standardized meanings prescribed by IFRS. NOI, FFO. OFFO and AFFO are supplemental measures of a company's performance and Leisureworld believes that NOI, FFO, OFFO and AFFO are relevant measures of its earnings performance and its' ability to pay dividends on the Company's common shares. The IFRS measurement most directly comparable to FFO, OFFO and AFFO is net income (loss). 5. Payout Ratio is calculated using the basic AFFO per share divided by the dividends declared per share for the respective periods.



Second Quarter 2014

Leisureworld generated NOI of $20.2 million for the period ended June 30, 2014. This represented an increase of $4.6 million, or 29.7%, over the comparable quarter of 2013. On a same property basis, NOI was $16.0 million, an increase of $0.6 million, or 3.6%, over the comparable quarter of 2013.

General and administrative expenses had a mark to market adjustment for deferred share unit compensation of approximately $0.1 million to reflect the increased unit price.

On a same asset basis, LTC NOI was $12.2 million, an increase of $0.2 million or 1.5%, Retirement NOI was $3.2 million an increase of $0.4 million or 16.2% and Home Care NOI was $0.6 million a decrease of $0.1 million or 8.0%, due to some planned investment to grow the home care platform.

OFFO, which reflects the company's historical presentation of FFO, totaled $10.9 million, up $4.0 million over the same quarter last year. The increase was principally related to the improved FFO partly offset by adjustments to remove the fair value increments on long term debt, the adjustment for the tax shield benefits and the prior year add back for the dividend equivalents on the subscription receipts.

2014 First Half Results Summary

Leisureworld generated NOI of $39.7 million for the period ended June 30, 2014. This represented an increase of $10.2 million or 34.5% over the first half of 2013. On a same property basis, NOI was $30.6 million an increase of $1.3 million or 4.3% over the first half of 2013.

OFFO, which reflects the company's historical presentation of FFO, totaled $20.3 million, an increase of $7.1 million over the same six-month period last year. The increase was principally related to transaction activities and the improved NOI performance from same property activities.

Dividend Reinvestment Plan ("DRIP")

Subsequent to quarter end, the Company's Board of Directors approved a DRIP where eligible participants may elect to automatically reinvest their monthly dividends. Subject to regulatory approval, including TSX approval, the Company intends to implement the DRIP as soon as possible. Pursuant to the DRIP, the Company intends to issue common shares through treasury at a 3% discount to the volume-weighted average of the common shares for the five days immediately preceding the dividend payment date. Full details of the DRIP will be provided at the time the DRIP is implemented.

Looking Ahead

"We have made great progress on integrating our recent acquisition and look forward to a future of organic and external growth across all areas of our diversified portfolio," said Ms. Cormack. "Long Term Care provides us with stability, while Retirement, Management Services and Home Care provide us with exciting growth opportunities."

Conference Call

Lois Cormack, President and CEO, and Nitin Jain, Executive Vice President and CFO, will host a conference call for the investment community the following day, Thursday, August 14, 2014 at 9:00 a.m. (EDT). The call-in numbers for participants are 416-340-8527 or 800-565-0813. A webcast of the call will be accessible via Leisureworld's website at: www.leisureworld.ca/Investors/Events-Presentations.aspx.

A replay of the call will be available until August 28, 2014. To access the replay, dial 905-694-9451 or 800-408-3053 (pass code: 7747174). The webcast will be archived on Leisureworld's website.

About Leisureworld

Leisureworld Senior Care Corporation is one of Canada's largest operators of seniors' housing and the largest licensed long-term care provider in Ontario. Leisureworld has 7,500 employees and owns and operates 35 long-term care homes across Ontario with 5,733 beds. Leisureworld also owns and operates 10 retirement residences, representing 1,065 suites, in Ontario and British Columbia. Under its management services division, Leisureworld provides management and consulting services to long-term care homes and retirement residences in Ontario. Leisureworld subsidiaries include Preferred Health Care Services, an accredited provider of professional nursing and personal support services. For more information, please visit Leisureworld's website at www.leisureworld.ca.

Forward-Looking Statements

Certain of the statements contained in this news release are forward-looking statements and are provided for the purpose of presenting information about management's current expectations and plans relating to the future. Readers are cautioned that such statements may not be appropriate for other purposes. These statements generally use forward-looking words, such as "anticipate", "continue", "could", "expect", "may", "will", "estimate", "believe" or other similar words and include, among other things, statements related to the Company's financial results or strategic plans. These statements are subject to significant known and unknown risks and uncertainties that may cause actual results or events to differ materially from those expressed or implied by such statements and, accordingly, should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. The forward-looking statements in this news release are based on information currently available and what management currently believes are reasonable assumptions, including the funding of long-term care facilities by government entities. Other material factors or assumptions that were applied in formulating the forward-looking statements contained herein include the assumption that the business and economic conditions affecting Leisureworld's operations will continue substantially in their current state, including, with respect to industry conditions, general levels of economic activity and government regulations.

Although management believes that it has a reasonable basis for the expectations reflected in these forward-looking statements, actual results may differ from those suggested by the forward-looking statements for various reasons. The assumptions, risks and uncertainties described above are not exhaustive and other events and risk factors could cause actual results to differ materially from the results and events discussed in the forward-looking statements. These forward-looking statements reflect current expectations of Leisureworld as at the date of this news release and speak only as at the date of this news release. Leisureworld does not undertake any obligation to publicly update or revise any forward-looking statements except as may be required by applicable law.

FOR FURTHER INFORMATION PLEASE CONTACT: Leisureworld Senior Care CorporationLois Cormack President and Chief Executive Officer (905) 415-7612 Leisureworld Senior Care CorporationNitin Jain Executive Vice President and Chief Financial Officer (905) 489-0787 www.leisureworld.ca Source: Leisureworld Senior Care Corporation


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