EBITDA from U.S. operations was US$33.9 million this quarter, or 10.8% of revenue. Excluding the US$11.0 million increase in prior years' reserves for self-insured liabilities recorded in the 2012 third quarter, EBITDA that quarter was US$28.2 million, or 8.9% of revenue. This resulted in an improvement in EBITDA of US$5.7 million between quarters. EBITDA from non same-facility operations declined by US$1.4 million (US$3.0 million contribution this quarter compared to US$4.4 million in the 2012 third quarter). Growth from same-facility operations of US$7.1 million resulted from higher revenue of US$1.4 million and lower costs of US$5.7 million. Revenue improvements included higher average rates of US$3.8 million and an increase in prior period settlement adjustments of US$2.0 million (US$2.3 million this quarter versus US$0.3 million in the third quarter). This was partially offset by lower census levels of US$3.0 million and other items of US$1.4 million. Operating, administrative and lease costs declined by US$5.7 million and included lower labour-related costs of US$7.4 million, primarily due to a change in vacation policy, partially offset by other net cost increases of US$1.7 million.
EBITDA from Canadian operations declined by $1.1 million to $19.2 million this quarter from $20.3 million in the 2012 third quarter, and represented 10.3% and 11.0% of revenue, respectively. This decline was largely due to an increase in supplies and utility costs between periods.
2012 FINANCIAL REVIEW
---------------------------------------------------------------------------- Year endedTABLE 2 December 31----------------------------------------------------------------------------(millions of dollars unless otherwise noted) 2012 2011----------------------------------------------------------------------------RevenueU.S. operations (US$) 1,309.0 1,411.1----------------------------------------------------------------------------U.S. operations (C$) 1,308.5 1,395.8Canadian operations 728.9 698.3----------------------------------------------------------------------------Total Revenue 2,037.4 2,094.1--------------------------------------------------------------------------------------------------------------------------------------------------------EBITDA(1)U.S. operations (US$) 111.1 135.8----------------------------------------------------------------------------U.S. operations (C$) 111.0 134.4Canadian operations 72.2 65.7----------------------------------------------------------------------------Total EBITDA 183.2 200.1--------------------------------------------------------------------------------------------------------------------------------------------------------EBITDA margin 9.0% 9.6%--------------------------------------------------------------------------------------------------------------------------------------------------------Average U.S./Canadian dollar exchange rate 0.9996 0.9891----------------------------------------------------------------------------(1) Refer to discussion of non-GAAP measures.----------------------------------------------------------------------------
