HispanicBusiness

Revenue from Canadian operations grew by $4.7 million to $186.2 million in the 2012 fourth quarter from $181.5 million in the 2011 fourth quarter. Non same-facility operations contributed $0.3 million to the improvement. Growth from same-facility operations of $4.4 million was favourably impacted by a reversal of prior period revenue in the 2011 fourth quarter of $2.0 million, with the remainder primarily due to nursing center funding enhancements and increased home health care volumes.

Consolidated EBITDA from continuing operations was $52.9 million this quarter, or 10.7% of revenue. Excluding the $11.4 million increase in prior years' reserves for self-insured liabilities recorded in the 2011 fourth quarter, EBITDA that quarter was $51.5 million, or 9.7% of revenue. This resulted in an increase in EBITDA of $1.4 million between quarters. Excluding a $0.8 million negative effect of a stronger Canadian dollar, EBITDA improved by $2.2 million, with growth from same-facility operations of $6.2 million, partially offset by a decline of $4.0 million from non same-facility operations. A discussion of the segmented U.S. and Canadian operations follows.

EBITDA from U.S. operations was US$33.9 million this quarter, or 10.8% of revenue. Excluding the US$11.2 million increase in prior years' reserves for self-insured liabilities recorded in the 2011 fourth quarter, EBITDA that quarter was US$35.3 million, or 10.3% of revenue. This resulted in a decline in EBITDA of US$1.4 million between quarters. EBITDA from non same-facility operations declined by US$3.3 million (US$3.0 million contribution this quarter compared to US$6.3 million in the same 2011 period). Growth from same-facility operations of US$1.9 million resulted from the US$1.0 million increase in revenue and a decline in operating, administrative and lease costs of US$0.9 million. Lower costs resulted from a decline in labour-related costs of US$5.2 million, primarily due to a change in vacation policy, partially offset by an increase in the provision for self-insured liabilities of US$2.5 million and a net increase in other costs of US$1.8 million.

EBITDA from Canadian operations improved by $4.2 million to $19.2 million this quarter from $15.0 million in the 2011 fourth quarter and represented 10.3% and 8.3% of revenue, respectively. Non same-facility operations contributed $1.2 million this quarter and $1.6 million in the 2011 fourth quarter for a net decline of $0.4 million. EBITDA from same-facility operations improved by $4.6 million, of which $2.0 million was due to the 2011 fourth quarter prior period revenue reversal with the balance due to higher revenue of $2.4 million and lower costs of $0.2 million.

2012 Fourth Quarter Comparison to 2012 Third Quarter

In comparison to the 2012 third quarter, consolidated revenue from continuing operations in the 2012 fourth quarter declined by $0.3 million, excluding a $1.2 million negative effect of a stronger Canadian dollar. Non same-facility operations contributed $4.2 million to the decline, with same-facility operations improving by $3.9 million, of which $2.5 million was from the Canadian operations and the balance from the U.S. operations.

Consolidated EBITDA from continuing operations was $52.9 million this quarter, or 10.7% of revenue. Excluding the $11.0 million increase in prior years' reserves for self-insured liabilities recorded in the 2012 third quarter, EBITDA that quarter was $48.3 million, or 9.7% of revenue. This resulted in an increase in EBITDA of $4.6 million between quarters. Growth from same-facility operations contributed $6.4 million and was partially offset by a decrease in the contribution from non same-facility operations of $1.8 million. A discussion of the segmented U.S. and Canadian operations follows.