Markham, Ontario--(Newsfile Corp. - November 5, 2026) - Extendicare Inc. (TSX: EXE) ("Extendicare" or the "Company") today reported results for the three and nine months ended September 30, 2026.

Third Quarter 2026 Highlights

• Adjusted EBITDA⁽¹⁾ of $71.7 million, up $20.9 million or 41.2% from Q3 2025.
  
  
• Net earnings of $34.2 million ($0.354 per diluted share), up $10.1 million or 41.8% from $24.1 million ($0.281 per diluted share) in Q3 2025.
  
  
• Adjusted net earnings⁽¹⁾ of $39.6 million ($0.410 per diluted share), up $11.4 million or 40.4% from $28.2 million ($0.329 per diluted share) in Q3 2025.
  
  
• FFO⁽¹⁾ of $43.4 million ($0.450 per diluted share), up $12.7 million or 41.5% from $30.7 million ($0.358 per diluted share) in Q3 2025.
  
  
• Home health care average daily volume ("ADV") of 79,557, up 41,948 or 111.5% from Q3 2025, including 34,873 in ADV contributed by CBI Home Health.
  
  
• Third-party and joint venture beds serviced by SGP of 166,400 beds, up 9.4% from Q3 2025.
  
  
• Opened Extendicare Forest Trail, a new 256-bed long-term care ("LTC") home in Peterborough, owned by Axium JV.

Subsequent to Q3

• Subsequent to September 30, 2026, completed the sale of the vacated Extendicare Peterborough Class C LTC home for cash proceeds of $7.0 million, resulting in an estimated gain of $6.5 million, before taxes and closing costs.

"Our third quarter results reflect the successful execution of our acquisition strategy. Our home health care segment continues to deliver strong organic growth, and CBI Home Health is performing ahead of expectations," said Dr. Michael Guerriere, President and Chief Executive Officer. "Strong operating cash flow continued to reduce leverage in the third quarter, providing us with significant flexibility in how we allocate capital in the future. With the Closing the Gap integration largely complete, we are focused on the integration of CBI as we continue to support the growing care needs of Canada's aging population."

LTC Redevelopment

In September 2026, the Company opened Axium JV's new 256-bed Extendicare Forest Trail LTC home in Peterborough, Ontario, replacing Extendicare Peterborough's 172 Class C beds.

Subsequent to September 30, 2026, the vacated Peterborough property was sold for cash proceeds of $7.0 million, resulting in an estimated gain of $6.5 million, before taxes and closing costs.

The Company is currently conducting the sales process for the vacated Carlingview Manor Class C LTC home, which is expected to conclude in Q4 2026.

Q3 2026 Financial Highlights (all comparisons with Q3 2025)

• Revenue increased $187.6 million to $627.8 million; excluding out-of-period funding in both periods, revenue increased by $189.0 million or 43.3% to $625.3 million, driven primarily by a 111.5% increase in home health care ADV resulting from the acquisition of CBI Home Health and organic growth, as well as LTC funding increases, partially offset by the closure of two Class C LTC homes that were vacated following the opening of newly redeveloped LTC homes in the joint ventures.
  
  
• NOI⁽¹⁾ increased $22.7 million or 34.5% to $88.6 million; excluding the impact of out-of-period funding in both periods, NOI improved by $24.1 million or 38.9% to $86.1 million, reflecting revenue growth, partially offset by higher operating costs.
  
  
• Adjusted EBITDA⁽¹⁾ increased $20.9 million to $71.7 million; excluding the impact of out-of-period funding in both periods, Adjusted EBITDA increased by $22.3 million or 47.7% to $69.2 million (11.1% of revenue) from $46.9 million (10.7% of revenue), reflecting the increase in NOI, partially offset by higher administrative costs of $1.8 million, largely due to higher wages, benefits, technology costs, and lease costs, in part due to the acquisition of CBI Home Health.
  
  
• Other expense declined $0.5 million, reflecting integration costs of $1.5 million in Q3 2026 compared to $2.0 million of acquisition-related transaction costs in Q3 2025.
  
  
• Share of profit from joint ventures was $1.1 million, compared to $0.8 million; excluding a reduction in out-of-period items of approximately $0.7 million, the increase of $1.0 million reflected a $0.9 million favourable change in the fair value of interest rate swaps and the opening of two new homes in the joint ventures.
  
  
• Net earnings increased $10.1 million to $34.2 million ($0.354 per diluted share) from $24.1 million ($0.281 per diluted share) in Q3 2025, largely driven by the increase in Adjusted EBITDA, partially offset by the after-tax impact of certain adjusting items of $1.3 million, higher depreciation and amortization costs and higher interest expense related to the acquisition.
  
  
• Adjusted net earnings⁽¹⁾ increased $11.4 million or 40.4% to $39.6 million ($0.410 per diluted share) from $28.2 million ($0.329 per diluted share).
  
  
• FFO⁽¹⁾ increased to $43.4 million ($0.450 per diluted share) from $30.7 million ($0.358 per diluted share); excluding a $1.5 million year-over-year decrease from out-of-period items ($1.8 million after tax in Q3 2026 and $3.3 million after tax in Q3 2025), FFO improved by $14.2 million or 52.1% to $41.6 million ($0.431 per diluted share) from $27.4 million ($0.319 per diluted share), largely reflecting the improvement in Adjusted EBITDA, partially offset by higher net interest costs, current income taxes, depreciation for office leases and maintenance capex, in part due to the acquisition of CBI Home Health.
  
  
• AFFO⁽¹⁾ increased to $43.4 million ($0.449 per diluted share) from $29.5 million ($0.345 per diluted share); excluding a $1.5 million year-over-year decrease from out-of-period items, AFFO improved by $15.4 million or 58.7% to $41.6 million ($0.430 per diluted share) from $26.2 million ($0.306 per diluted share), largely reflecting the improvement in Adjusted EBITDA, partially offset by higher net interest costs, current income taxes, depreciation for office leases and maintenance capex, in part due to the acquisition of CBI Home Health.

Nine Months Financial Highlights (all comparisons with Nine Months 2025)

• Revenue increased $505.7 million to $1,704.1 million; excluding a reduction in out-of-period funding in both periods, revenue increased by $509.4 million or 43.0% to $1,694.5 million from $1,185.1 million, driven primarily by a 94.4% increase in home health care ADV from acquisitions and organic growth, as well as contributions from the acquisition of LTC homes and LTC funding increases, partially offset by the closure of three Class C LTC homes that were vacated following the opening of newly redeveloped LTC homes in the joint ventures since the beginning of 2025. Since its acquisition on April 1, 2026, CBI Home Health has contributed revenue of approximately $299.1 million.
  
  
• NOI⁽¹⁾ increased $72.8 million to $243.9 million; excluding the impact of out-of-period items in both periods, NOI improved by $73.0 million or 45.0% to $235.2 million, reflecting revenue growth, partially offset by higher operating costs. Since its acquisition on April 1, 2026, CBI Home Health has contributed NOI of approximately $39.8 million.
  
  
• Adjusted EBITDA⁽¹⁾ increased $66.7 million to $192.9 million; excluding the impact of out-of-period items, Adjusted EBITDA increased by $66.9 million or 57.1% to $184.2 million (10.9% of revenue) from $117.3 million (9.9% of revenue), reflecting the increase in NOI, partially offset by higher administrative costs of $6.0 million, largely due to higher wages, benefits, technology costs, lease costs and professional fees, in part due to the home health care acquisitions.
  
  
• Other income increased $0.5 million, reflecting a $6.0 million increase in transaction-related professional fees and integration costs, partially offset by an increase in gain on sale of assets.
  
  
• Share of profit from joint ventures increased $0.9 million to $1.8 million; excluding a reduction in out-of-period items of approximately $0.4 million, the increase of $1.3 million reflected a $0.9 million favourable change in the fair value of interest rate swaps and the opening of three new homes since the beginning of 2025.
  
  
• Net earnings increased $34.7 million to $105.8 million ($1.093 per diluted share) from $71.1 million ($0.829 per diluted share), largely driven by the increase in Adjusted EBITDA, partially offset by the after-tax impact of certain adjusting items of $10.2 million, higher depreciation and amortization costs and higher interest expense related to acquisitions.
  
  
• Adjusted net earnings⁽¹⁾ increased $44.9 million or 65.4% to $113.5 million ($1.174 per diluted share) from $68.7 million ($0.801 per diluted share).
  
  
• FFO⁽¹⁾ increased to $130.3 million ($1.347 per diluted share) from $79.1 million ($0.923 per diluted share); excluding a $0.4 million year-over-year decrease from out-of-period items ($6.4 million after tax in 2026 and $6.8 million after tax in 2025), FFO improved by $51.6 million or 71.4% to $123.9 million ($1.280 per diluted share) from $72.3 million ($0.843 per diluted share), largely reflecting the improvement in Adjusted EBITDA, partially offset by higher net interest costs, current income taxes, depreciation for office leases and maintenance capex, in part due to acquisitions.
  
  
• AFFO⁽¹⁾ increased to $112.6 million ($1.164 per diluted share) from $74.1 million ($0.865 per diluted share); excluding a $0.4 million year-over-year decrease from out-of-period items, and costs related to the deferred share unit settlement in Q2 2026, AFFO improved by $45.3 million or 67.3% to $112.6 million ($1.164 per diluted share) from $67.3 million ($0.785 per diluted share), largely reflecting the improvement in Adjusted EBITDA, partially offset by higher net interest costs, current income taxes, depreciation for office leases and maintenance capex, in part due to acquisitions.

Business Updates

The following is a summary of Extendicare's revenue, NOI⁽¹⁾ and NOI margins⁽¹⁾ by business segment for the three and nine months ended September 30, 2026 and 2025.

Home Health Care

Home health care ADV of 79,557 in Q3 2026 increased by 111.5% from Q3 2025, driven by the acquisition of CBI Home Health in April 2026 and organic growth. CBI Home Health contributed ADV of 34,873 in Q3 2026.

Revenue doubled to $373.6 million in Q3 2026 from Q3 2025, primarily due to the 111.5% increase in ADV. In Q3 2026, CBI Home Health contributed revenue of approximately $153.3 million.

NOI and NOI margin were $49.5 million and 13.3%, respectively, in Q3 2026, compared to $25.4 million and 13.6% in Q3 2025. Excluding out-of-period funding recognized in Q3 2026 of $0.5 million, NOI improved by $23.6 million or 92.8% to $49.0 million (13.1% of revenue) in Q3 2026 from $25.4 million (13.6% of revenue) in the prior year period, reflecting revenue growth, partially offset by increased wages and benefits. In Q3 2026, CBI Home Health contributed NOI of approximately $20.3 million. The significant organic growth experienced in the Company's home health care operations necessitated additional investments in technology and back-office teams to support front-line operations and future growth, which together with the absence of a rate increase in Ontario, impacted year-over-year NOI margins.

Long-term Care

LTC average occupancy remained strong at 98.3% in Q3 2026, compared to 98.5% in Q3 2025.

Revenue declined by $0.2 million or 0.1% to $237.7 million in Q3 2026. Excluding out-of-period funding recognized in Q3 2026 of $2.0 million and $3.9 million in Q3 2025, revenue increased by $1.7 million or 0.7%, largely driven by funding increases and improved preferred occupancy, net of the closure in 2026 of two Class C LTC homes replaced by newly opened LTC homes in the joint ventures.

NOI and NOI margin were $29.9 million and 12.6%, respectively, in Q3 2026, compared to $31.6 million and 13.3% in Q3 2025. Excluding the net reduction in out-of-period funding of $1.9 million, NOI improved by $0.2 million or 0.8% to $27.9 million (11.8% of revenue) in Q3 2026 from $27.7 million (11.8% of revenue) in the prior year period, reflecting revenue growth and higher operating costs.

Managed Services

At the end of Q3 2026, the number of third-party and joint venture beds served by SGP increased to approximately 166,400, up 9.4% from the prior year period. Following the opening of a new LTC home within the joint ventures during Q3 2026, Extendicare Assist held management contracts for 40 homes, comprising 6,254 beds, and provided consulting and other services to an additional 28 homes.

Revenue increased by $1.0 million or 6.6% to $16.6 million from Q3 2025, largely due to the growth in SGP clients and management fees from newly opened homes in the joint ventures, contributing to a $0.3 million or 3.6% increase in NOI to $9.2 million (55.6% of revenue).

Financial Position

Extendicare had strong liquidity at September 30, 2026, with cash and cash equivalents on hand, excluding restricted cash, of $75.3 million, and access to a further $170.7 million under its revolving credit facility.

November Dividend Declared

The Board of Directors of Extendicare today declared a cash dividend of $0.0441 per share for the month of November 2026, which is payable on December 15, 2026, to shareholders of record at the close of business on November 30, 2026. This dividend is designated as an "eligible dividend" within the meaning of the Income Tax Act (Canada).

Conference Call and Webcast

Extendicare will hold a conference call to discuss its 2026 third quarter results on November 6, 2026, at 11:30 a.m. (EST). The call will be webcast live and archived online at www.extendicare.com under the "Investors/Events & Presentations" section. Those wishing to participate in the Q&A session may do so by calling 1-833-752-3395. A replay of the call will be available approximately two hours after completion of the live call until midnight on November 20, 2026, by dialing 1-855-669-9658 followed by the passcode 1752792#.

Select Financial Information

The following is a summary of the Company's consolidated financial information for the three and nine months ended September 30, 2026 and 2025.

Extendicare's disclosure documents, including its Management's Discussion and Analysis ("MD&A"), may be found on SEDAR+ at www.sedarplus.ca under the Company's issuer profile and on the Company's website at www.extendicare.com under the "Investors/Financial Reports" section.

About Extendicare

Extendicare is a leading provider of care and services for seniors across Canada, operating under the Extendicare, ParaMed, Extendicare Assist, and SGP Purchasing Network brands. We are committed to delivering quality care to meet the needs of the growing seniors' population, inspired by our mission to provide people with the care they need, wherever they call home. We deliver more than 28 million hours of home health care services annually, operate a network of 97 long-term care homes (57 owned, 40 under management contracts), and provide group purchasing services to third parties representing approximately 166,400 beds across Canada. Extendicare proudly employs approximately 32,500 individuals and manages an additional 6,000 joint venture employees, all of whom are highly qualified, trained and dedicated team members and passionate about providing high-quality care and services to help people live better.

Non-GAAP Measures

Certain measures used in this press release, such as "net operating income", "NOI", "NOI margin", "Adjusted EBITDA", "Adjusted EBITDA margin", "adjusted net earnings", "FFO", "AFFO", and "payout ratio", including any related per share amounts, are not measures recognized under GAAP and do not have standardized meanings prescribed by GAAP. These measures may differ from similar computations as reported by other issuers and, accordingly, may not be comparable to similarly titled measures as reported by such issuers. These measures are not intended to replace net earnings, cash flow, or other measures of financial performance and liquidity reported in accordance with GAAP. Such items are presented in this document because management believes that they are relevant measures of Extendicare's operating performance and ability to pay cash dividends.

Management uses these measures to exclude the impact of certain items, because it believes doing so provides investors a more effective analysis of underlying operating and financial performance and improves comparability of underlying financial performance between periods. The exclusion of certain items does not imply that they are non-recurring or not useful to investors.

Detailed descriptions of these measures can be found in Extendicare's Q3 2026 MD&A (refer to "Non-GAAP Measures"), which is available on SEDAR+ at www.sedarplus.ca and on Extendicare's website at www.extendicare.com.

Reconciliations for certain non-GAAP measures included in this press release are outlined below.

The following table provides a reconciliation of Adjusted EBITDA and "net operating income" to "earnings before income taxes".

The following table provides a reconciliation of "adjusted net earnings" to "net earnings".

The following table provides a reconciliation of FFO and AFFO to Adjusted EBITDA.

Forward-looking Statements

This press release contains forward-looking statements concerning anticipated future events, results, circumstances, economic performance or expectations with respect to Extendicare and its subsidiaries, including, without limitation: statements regarding its dividend levels, business operations, business strategy, growth strategy, results of operations and financial condition, including anticipated timelines and costs in respect of development projects. Forward-looking statements can often be identified by the expressions "anticipate", "believe", "estimate", "expect", "intend", "objective", "plan", "project", "will", "may", "should" or other similar expressions or the negative thereof. These forward-looking statements reflect the Company's current expectations regarding future results, performance or achievements and are based upon information currently available to the Company and on assumptions that the Company believes are reasonable. These statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company to differ materially from those expressed or implied in the statements. For further information on the risks, uncertainties and assumptions that could cause Extendicare's actual results to differ from current expectations, refer to "Risks and Uncertainties" and "Forward-looking Statements" in Extendicare's Q3 2026 MD&A and latest Annual Information Form filed by Extendicare with the securities regulatory authorities, available at www.sedarplus.ca and on Extendicare's website at www.extendicare.com. Given these risks and uncertainties, readers are cautioned not to place undue reliance on Extendicare's forward-looking statements. Except as required by applicable securities laws, the Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/322693

Source: Extendicare Inc.