Q2 2024 Extendicare Inc Earnings Call Transcript
Key Points
- Strong Q2 financial performance with a 13.3% increase in revenue to $348.5 million.
- Significant growth in net operating income (NOI) and margins across all operating segments.
- Long-term care occupancy levels increased to 97.8%, returning to historical levels.
- Home health care segment saw a 10.8% increase in average daily volumes and a return to double-digit margins.
- Managed Services segment revenue and NOI more than doubled, driven by strategic transactions and organic growth.
- Labor shortages delayed the opening of new homes in Kingston and Stittsville to Q4.
- Pending rate increases for long-term care in Western provinces and home health care in Ontario, creating uncertainty.
- Seasonal softness expected in home health care volumes during summer months.
- Continued dependency on government funding increases to offset cumulative cost inflation.
- Challenges in reducing agency staff costs, particularly in Western Canada.
Thank you for standing by. This is the conference operator. Welcome to Extendicare Inc. second quarter 2024 analyst conference call. (Operator Instructions) The conference is being recorded. (Operator Instructions)
I would now like to turn the conference over to Jillian Fountain, Vice President, Investor Relations. Please go ahead.
Thank you, operator, and good morning, everyone. Welcome to Extendicare's 2024 second quarter results conference call. With me today are Extendicare's President and CEO, Michael Guerriere; and Senior Vice President and CFO, David Bacon.
Our Q2 results were released yesterday and are available on our website, as is a live audio webcast of today's call, along with an accompanying slide presentation. An archived recording will also be available on our website following the call. As well, replay numbers and passcodes have been provided in our press release to access an archived recording of the call until August 30.
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