Leisureworld Senior Care Corporation (TSX:LW) recently released its financial results for the year ended December 31, 2010 that showed net operating income (NOI) of $10.9 million compared with $12.0 million in the comparable quarter last year. The year-over-year decrease is primarily attributable to a reduction of the sick time allowance during the corresponding quarter last year. Leisureworld generated $4.5 million in Funds From Operations (FFO) during the quarter, compared with $6.7 million in the comparable 2009 period. The decrease reflected the lower NOI in the period and higher general and administrative and income tax expenses, primarily attributable to the Company’s conversion to publicly traded status.
Leisureworld generated total revenue of $71.6 million in the quarter ended December 31, 2010 compared with $69.4 million in the comparable quarter in 2009. The increase is primarily attributable to a 2% increase in government funding rates, the timing of revenue recognition to match spending under the flow-through envelopes and favourable government funding adjustments relating to prior periods, partly, offset by a reduction in special initiative funding and lower Preferred Health Care Services (PHCS) revenues. Overall, the Company experienced a net loss of $1.3 million in the fourth quarter of 2010, compared to a net income of $2.8 million in the comparable period of 2009. The decrease is primarily attributable to an increase in operating and general and administrative expenses in the quarter, as well as an increase in amortization charges from the comparable period the previous year.
"Leisureworld’s financial performance in our first year as a public company was directly in line with management’s expectations," said David Cutler, President and Chief Executive Officer of the Company. "Our consistent performance throughout the year underlines the strength of our business model, which is characterized by predictable, stable cash flow. This consistent cash generation supports our common share dividend, while also providing the Company with a strong foundation, a platform upon which we can enhance operations, expand our business and explore opportunities for growth across the entire spectrum of senior care."
Leisureworld is the third largest licensed long-term care (LTC) provider in Ontario. The Company owns and operates 26 LTC homes, representing approximately 4,314 beds across Ontario, Canada. Leisureworld also owns and operates one retirement home with 29 beds and one independent living home with 53 apartments.