Extendicare Inc (TSX:EXE)

Q2 2026 Extendicare Inc Earnings Call Transcript

Aug 7, 2026 / 03:30 PM GMT

Release Date Price: C$32.44 (-5.12%)

Transcript

Key Points

Positve

Extendicare Inc (EXETF) reported a 71.7% year-over-year increase in adjusted EBITDA, driven by successful acquisitions and strong organic growth.
The CBI acquisition is tracking ahead of expectations, with Q2 2026 revenue of $145.7 million and adjusted EBITDA of $18.5 million, contributing to significant home healthcare volume growth.
The company completed an inaugural unsecured notes offering and established a new unsecured credit facility, achieving an investment-grade BBB rating and reducing its weighted average interest rate by 80 basis points.
Long-term care occupancy remains strong, with NOI growth of $5.7 million and trailing 12-month NOI margins of 11.8%, supported by funding enhancements and preferred occupancy rate increases.
Managed Services segment delivered strong performance with 8.3% year-over-year growth in the SGP customer base and NOI margins of 57.6%, exceeding expectations.

Negative

Home healthcare NOI margins declined 60 basis points year-over-year due to increased investments in back-office and technology to support rapid growth, and the lack of a 2026 rate increase in Ontario.
The company incurred significant one-time costs in Q2, including $8.1 million for establishing the new credit structure and $8.7 million in transaction and integration costs related to the CBI acquisition.
AFFO was negatively impacted by $8.7 million in payroll cash withholding taxes from the settlement of deferred share units for two retiring directors, reducing per-share growth.
The absence of a 2026 rate increase in Ontario home care is pressuring margins, and the timing of future rate increases remains uncertain, adding volatility to financial performance.
Managed services revenue decreased by $0.6 million due to the loss of Rivera management contracts and non-renewal of two third-party assist contracts, partially offset by new home openings.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

EXE.TO - Extendicare Inc.
Q2 2026 Extendicare Inc Earnings Call
Aug 07, 2026 / 03:30PM GMT

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Presentation
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Unidentified_1 [1]
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Thank you for standing by. This is the conference operator. Welcome to Extended Care Inc. Second Quarter 2026 Analyst Conference Call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one. On your telephone keypad.

Should you need assistance during the conference call, you may signal an operator by pressing star then zero.

I would now like to turn the conference over to Jillian Fountain, Vice President, Investor Relations. Please go ahead.

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Unidentified_2 [2]
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