Amica Mature Lifestyles : Announces Third Quarter Fiscal 2014 Results and Quarterly Dividend

Amica Mature Lifestyles : Announces Third Quarter Fiscal 2014 Results and Quarterly Dividend

Amica Mature Lifestyles Inc.

Equities

ACC

CA0314982079

Homebuilding

Company Profile

Latest news about Amica Mature Lifestyles Inc.

Chart Amica Mature Lifestyles Inc.

Sector Retirement Home Builders

April 14, 2014 at 08:32 am EDT

MarketScreener.com By

Amica Mature Lifestyles Inc. (“Amica” or the “Company”) (TSX Symbol: ACC) is pleased to announce the Company’s operating and financial results for the third quarter.

THIRD QUARTER HIGHLIGHTS

Revenues increased 8% to $34.8 million compared to Q3/13;
Overall occupancy in mature same communities⁽¹⁾ at February 28, 2014 was 94.1%, compared to 93.8% at May 31, 2013 and 92.5% at February 28, 2013;
Overall occupancy in the Company’s communities in lease-up at February 28, 2014 was 74.3% (excluding Amica at Aspen Woods which opened August 9, 2013) compared to 67.1% at May 31, 2013 and 63.0% at February 28, 2013;
Mature same communities MARPAS increased by 4.8% for Q3/14 compared to Q3/13. The Company has experienced monthly year-over-year MARPAS increases in its mature same communities for 50 consecutive months;
Diluted FFO per share remained the same at $0.12 per share compared to Q3/13;
Diluted AFFO per share increased $0.01 per share to $0.11 per share compared to Q3/13;
Subsequent to Q3/14, Amica entered into an agreement in respect of the potential sale and redevelopment of Amica at Arbutus Manor. Completion of the transaction is subject to satisfaction of the prospective purchaser’s conditions precedent (see “Listing of Amica at Arbutus Manor” below); and
Amica’s Board of Directors (the “Board”) approved fiscal 2014 fourth quarter dividend of $0.105 per common share.

“We continue to focus on improving revenue and margin growth as part of our ‘Driving Internal Growth’ strategy,” said Samir Manji, Amica’s Chairman & CEO. “On the Amica at Arbutus Manor initiative, we have entered into an agreement with a party from the previously short-listed candidates and due diligence is currently underway. We will provide an update as this initiative progresses. During the quarter, we completed the restructuring of Amica at Whitby and we initiated the restructuring of Amica at Thornhill. The Whitby restructuring resulted in Amica increasing its ownership to 51.25% and forgiving approximately $2.2 million of the non-controlling interest’s share of the debt. The Thornhill restructuring resulted in Amica increasing its ownership to 55.5% and forgiving approximately $2.1 million of the non-controlling interest’s share of the debt. The forgiveness of these debts was a product of the lengthy lease-up time and other factors that resulted in the accumulation of a large amount of secondary debt in these communities. It is anticipated that a similar restructuring may be required for one other community that has also had a lengthy lease-up period.”

“We are pleased with the leasing progress during the first nine months of Fiscal 2014,” said Colin Halliwell, Amica’s Chief Operating Officer. “Overall occupancy for our communities in lease-up, excluding Amica at Aspen Woods, is up 11.3% at 74.3% for Q3/14 compared to Q3/13 while overall occupancy for our mature communities increased 1.6% to 94.1% for Q3/14 compared to Q3/13. We are looking forward to continued occupancy growth in all markets as we enter the stronger leasing periods of the spring and early summer months.”

FINANCIAL HIGHLIGHTS

The following table provides operational highlights for the three months ended February 28, 2014 (“Q3/14”) compared to the three months ended February 28, 2013 (“Q3/13”) and the nine months ended February 28, 2014 (“YTD Fiscal 2014”) compared to the nine months ended February 28, 2013 (“YTD Fiscal 2013”):


(Expressed in thousands of Canadian dollars, except per share and share amounts)
	Q3/14		Q3/13 Restated⁽¹⁾		Change		YTD Fiscal 2014		YTD Fiscal 2013 Restated⁽¹⁾		Change
	$		$		$		$		$		$

Revenues	34,779		32,215		2,564		102,555		92,196		10,359
Retirement community margin⁽²⁾	11,540		10,546		994		33,577		29,585		3,992
Net loss and comprehensive loss attributable to:
Amica shareholders	(1,628	)	(1,931	)	303		(3,467	)	(5,761	)	2,294
Non-controlling interests	(1,788	)	(2,847	)	1,059		(6,747	)	(7,841	)	1,094
	(3,416	)	(4,778	)	1,362		(10,214	)	(13,602	)	3,388
Basic and diluted loss per share attributable to:
Amica shareholders:	(0.05	)	(0.06	)	0.01		(0.11	)	(0.19	)	0.08
EBITDA⁽²⁾	8,995		8,509		486		26,614		24,300		2,314
FFO⁽²⁾	3,673		3,698		(25	)	11,413		10,008		1,405
Diluted per share	0.12		0.12		-		0.37		0.32		0.05
AFFO⁽²⁾	3,434		3,231		203		11,163		9,858		1,305
Diluted per share	0.11		0.10		0.01		0.36		0.32		0.04
Weighted average number of shares (000’s):
Basic	30,776		30,704				30,766		30,583
Diluted	30,929		30,968				30,959		30,900

Consolidated revenues

Q3/14 revenues increased by 8% to $34.8 million compared to $32.2 million in Q3/13. YTD Fiscal 2014 revenues increased by 11% to $102.6 million compared to $92.2 million in YTD Fiscal 2013.

Retirement communities revenues and expenses

Q3/14 retirement communities revenue increased 8% to $34.8 million (Q3/13: $32.2 million), compared with a 7% increase in retirement communities expenses to $23.2 million (Q3/13: $21.6 million). YTD Fiscal 2014 retirement community revenues increased by 12% to $102.1 million (YTD Fiscal 2013: $91.3 million), compared with an 11% increase in retirement community expenses to $68.5 million (YTD Fiscal 2013: $61.7 million).

The following table summarizes the Company’s consolidated retirement communities margin (retirement communities revenues less retirement communities expenses before finance costs and depreciation expense) on a mature community and lease-up community basis for Q3/14 compared to Q3/13:


	Q3/14	Q3/13	Change	Q3/14	Q3/13	Change
	$	$	$	%	%	%
Mature communities	10,159	9,570	589	34.9	34.5	0.4
Lease-up communities	1,381	976	405	24.3	22.1	2.2
Consolidated communities	11,540	10,546	994	33.2	32.8	0.4

Consolidated retirement communities margin increased $1.0 million, due to $0.6 million increase in mature communities margin on a same community basis and $0.4 million increase in lease-up communities margin resulting in a 0.4% increase in consolidated retirement communities margin percentage to 33.2% in Q3/14 from 32.8% in Q3/13. Approximately $0.4 million of the margin increase relates to a reduction in certain corporate charges to communities now included in general and administrative expenses (see “General and administrative expenses” below).

The following table summarizes the Company’s consolidated retirement communities margin on a mature community and lease-up community basis for YTD Fiscal 2014 compared to YTD Fiscal 2013:


	YTD 2014	YTD 2013	Change	YTD 2014	YTD 2013	Change
	$	$	$	%	%	%
Mature communities	30,383	26,939	3,444	35.2	34.3	0.9
Lease-up communities	3,194	2,646	548	20.4	20.7	(0.3	)
Consolidated communities	33,577	29,585	3,992	32.9	32.4	0.5

Consolidated retirement communities margin increased $4.0 million, due to $3.4 million increase in mature communities margin and $0.5 million increase in lease-up communities margin resulting in a 0.5% increase in consolidated retirement communities margin percentage to 32.9% in YTD Fiscal 2014 from 32.4% in YTD Fiscal 2013. Approximately $1.1 million of the margin increase relates to a reduction in certain corporate charges to communities now included in general and administrative expenses (see “General and administrative expenses” below). The decrease in the YTD Fiscal 2014 lease-up communities margin percentage is primarily due to the lease-up losses in Amica at Aspen Woods which commenced operations and was consolidated in Q1/14.

Finance costs

Finance costs are summarized as follows:


	Q3/14	Q3/13		Change		YTD Fiscal 2014	YTD Fiscal 2013		Change
	$	$		$		$	$		$

Interest expense and standby fees	4,705	5,188		(483	)	14,315	14,986		(671	)
Amortization and accretion, net	245	259		(14	)	1,060	819		241
Guarantee fees	126	9		117		254	128		126
Change in fair value of interest rate swaps	424	(38	)	462		635	(225	)	860
	5,500	5,418		82		16,264	15,708		556

Interest expense and standby fees decreased by $0.5 million to $4.7 million in Q3/14 (Q3/13 – $5.2 million) principally due to interest rate reductions achieved on mortgage renewals and refinancing, offset by interest expense in Amica at Aspen Woods which was consolidated in Q3/14 but not in Q3/13. Excluding Amica at Aspen Woods, interest expense and standby fees decreased by $0.7 million or 14%.

Interest expense and standby fees decreased by $0.7 million to $14.3 million in YTD Fiscal 2014 (YTD Fiscal 2013 – $15.0 million) principally due to interest rate reductions achieved on mortgage renewals and refinancings, offset by the interest expense of Amica at Aspen Woods as noted above and Amica at Whitby (consolidated beginning in Q3/13). Excluding Amica at Whitby and Amica at Aspen Woods for the periods they were not consolidated, interest expense and standby fees decreased by $1.8 million or 17%.

In Q3/14, an unrealized loss of $0.4 million was recorded in respect of interest rate swaps on floating rate mortgages compared to a nominal unrealized gain for Q3/13. For YTD Fiscal 2014, the unrealized loss was $0.6 million compared to an unrealized gain of $0.2 million for YTD Fiscal 2013. Assuming the Company holds these mortgages and the interest rate swaps for their full terms, any unrealized gains or losses will reverse and the Company will not realize any gains or losses in respect of these interest rate swaps.

General and administrative (“G&A”) expenses

G&A expenses increased by $0.5 million to $2.6 million in Q3/14 and increased $0.9 million to $7.4 million in YTD Fiscal 2014 (YTD Fiscal 2013 – $6.5 million). The Company reduced the amount of certain corporate charges to communities commencing in Q1/14 and will continue with these reductions going forward. This reduction accounted for $0.4 million of the G&A increase in Q3/14 compared to Q3/13 and a $1.1 million increase in YTD Fiscal 2014 compared to YTD Fiscal 2013 (this also contributed to higher consolidated retirement communities margin in YTD Fiscal 2014, see “Retirement communities expenses and revenues” above). The remainder of the increase in Q3/14 G&A expenses compared to Q3/13 is due to recruiting costs for the new President and other positions and a one time $0.1 million credit in Q3/13 pertaining to the Company’s former benefit plan.

NET LOSS AND COMPREHENSIVE LOSS

For Q3/14, the net loss was $3.4 million compared to $4.8 million in Q3/13. The primary reasons for the decreased loss are the increased retirement communities margin, and lower depreciation expense, partially offset by higher finance costs, higher G&A expenses and a lower tax recovery.

For YTD Fiscal 2014, the net loss was $10.2 million compared to $13.6 million in YTD Fiscal 2013. The primary reasons for the decreased loss are the increased retirement communities margin, lower depreciation expense, partially offset by higher finance costs, higher G&A expenses, lower other income, no gain on acquisition and a lower tax recovery.

The Q3/14 net loss attributable to Amica shareholders was $1.6 million compared to $1.9 million in Q3/13. The YTD Fiscal 2014 net loss attributable to Amica shareholders was $3.5 million compared to $5.8 million in YTD Fiscal 2013.

FUNDS FROM OPERATIONS (FFO)

Q3/14 FFO was unchanged at $3.7 million ($0.12 per share diluted) compared to Q3/13. YTD Fiscal 2014 FFO increased 14% to $11.4 million ($0.37 per share diluted) compared to $10.0 million in YTD Fiscal 2013 ($0.32 per share diluted).

ADJUSTED FUNDS FROM OPERATIONS (AFFO)

Q3/14 AFFO increased 6% to $3.4 million ($0.11 per share diluted) compared to $3.2 million in Q3/13 ($0.10 per share diluted). Q3/14 maintenance capital expenditures were $0.7 million (Q3/13 – $0.9 million) inclusive of a $0.1 million maintenance reserve (Q3/13 – $0.7 million). YTD Fiscal 2014 AFFO increased 13% to $11.2 million ($0.36 per share diluted) compared to $9.9 million in YTD Fiscal 2013 ($0.32 per share diluted). YTD Fiscal 2014 maintenance capital expenditures were $2.0 million (YTD Fiscal 2013 – $1.6 million) inclusive of a $0.8 million maintenance reserve (YTD Fiscal 2013 – $1.2 million)

COMMUNITY UPDATE

Mature same community MARPAS increased by 4.8% for Q3/14 compared to Q3/13 and increased 5.8% for YTD Fiscal 2014 compared to YTD Fiscal 2013. The Company has experienced monthly year-over-year MARPAS increases in its mature same communities for 50 consecutive months. The success on the MARPAS front, in addition to improved occupancy, is the result of increasing rents upon turnover and providing additional services that increase ancillary revenue.

The following is a summary of occupancy in the Company’s mature same communities:


Mature Same Community Occupancy
	Overall⁽¹⁾	Ontario⁽¹⁾	British Columbia
February 28, 2014	94.1%	92.8%	96.9%
November 30, 2013	94.1%	93.1%	96.2%
August 31, 2013	93.8%	92.2%	97.0%
May 31, 2013	93.8%	92.8%	95.9%
February 28, 2013	92.5%	90.8%	96.2%

				(1)		All figures include Amica at Westboro Park, Amica at Thornhill, Amica at London and Amica at Whitby to report on a same community basis. Amica at Whitby became a mature community effective December 1, 2013 (for occupancy reporting purposes).

Considering the extreme and extended inclement weather over the winter months, which negatively affected traffic in Ontario, Amica is very pleased with the occupancy performance of its mature communities in Q3/14, finishing the quarter off at 94.1%, the same as Q2/14. The mature Ontario occupancy decreased slightly by 0.3%, from 93.1% for Q2/14 to 92.8% for Q3/14. British Columbia occupancy improved by 0.7% to 96.9% for Q3/14 from 96.2% for Q2/14. Despite reduced traffic as a result of Ontario’s harsh winter conditions and competitors increasing incentives, Amica’s marketing teams remained focused on the prospects already in the pipeline and performed remarkably well under the difficult circumstances. The Company expects an increase in traffic during the spring when weather conditions improve.

The following is a summary of overall occupancy in the Company’s communities in lease-up^(1):


Lease-up Community Occupancy ⁽¹⁾
	With Aspen Woods	Without Aspen Woods
April 6, 2014	66.5%⁽²⁾	74.1%⁽²⁾
February 28, 2014	65.6%	74.3%
November 30, 2013	61.9%	72.7%
August 31, 2013	55.5%	68.1%
May 31, 2013	N/A	67.1%
February 28, 2013	N/A	63.0%

Construction Updates and Expansion Projects

Amica at Oakville, in Ontario, which commenced construction (excavation and site servicing) in Q2/13 is expected to open in the spring of 2015.

Upon obtaining construction financing, the Company plans to proceed with the Amica at Swan Lake expansion and renovations. The Company continues to advance the design and planning for the Amica at Dundas expansion and recently obtained site plan approval.

Acquisition of Additional Ownership Interests in Other Co-Tenancies

On December 16, 2013, the Company increased its ownership in Amica at Whitby from 24.94% to 51.25%. The aggregate cash consideration for the additional ownership interests totaled $0.8 million and was funded by way of participation in an Amica at Whitby equity financing to fund paying down the construction loans on the property (see “FINANCIAL POSITION – Refinanced/Renewed in or subsequent to Q3/14” below). The Company also funded an additional $0.7 million of the Amica at Whitby equity financing to maintain its previously held 24.94% ownership position. Additionally, as part of restructuring the debt of this co-tenancy the Company forgave $2.2 million of the non-controlling interest’s share of loans and interest receivable from the co-tenancy (see “Debt forgiveness and Loan Modification” below).

Subsequent to Q3/14, on March 17, 2014, the Company increased its ownership in Amica at Thornhill from 29.50% to 55.50%. The aggregate cash consideration for the additional ownership interests totaled $0.9 million and was funded by way of participation in an Amica at Thornhill equity financing to fund paying down the construction loans on the property (see “FINANCIAL POSITION – Refinanced/Renewed in or subsequent to Q3/14” below). The Company also funded an additional $1.0 million of the Amica at Thornhill equity financing to maintain its previously held 29.5% ownership position. Additionally, as part of restructuring the debt of this co-tenancy the Company forgave $2.1 million of the non-controlling interest’s share of loans and interest receivable from the co-tenancy (see “Debt forgiveness and Loan Modification” below).

Listing of Amica at Arbutus Manor

In September 2013, the Company engaged CBRE Limited to act on its behalf and advise on the listing and redevelopment of Amica at Arbutus Manor, located in Vancouver, British Columbia. The Company had undertaken this initiative in an effort to arrange a structured transaction for the prospective sale and redevelopment of Amica at Arbutus Manor, including the Arbutus Manor lands (together referred to as “Arbutus Manor”).

Built in the early 1970’s, Amica at Arbutus Manor is a well located and strong performing retirement community situated on 3.93 acres of prime land in the heart of Vancouver’s Westside Arbutus neighbourhood. The Company believes that this redevelopment initiative represents an excellent opportunity to crystallize the land value which the Company believes is in excess of its current value in use.

Amica has entered into an agreement in respect of the potential sale and redevelopment of Arbutus Manor. Completion of the transaction is subject to satisfaction of the prospective purchaser’s conditions precedent including, but not limited to, completion of due diligence; the prospective purchaser having satisfied itself as to the feasibility of its intended development on the Arbutus Manor lands; and approval of the transaction by the prospective purchaser’s board of directors. The prospective purchaser is currently in the process of conducting its due diligence. Amica will provide an update on this initiative as it progresses.

Debt Forgiveness and Loan Modification

In conjunction with restructuring the debt of two less than 100% owned co-tenancies, the Company forgave $4.3 million of the non-controlling interest’s share of the debt and accrued interest.

In addition, the Company reduced the interest rate on the remaining loans due from one of the co-tenancies. The Company considered the terms of the remaining loans of this co-tenancy to have been modified substantially and, as such, determined the non-controlling interest’s share of the fair value of the amended loans to be $0.7 million less than their carrying value.

As the forgiven amounts and the loan modification loss represents a $5.1 million benefit to the non-controlling interests, the Company has recorded a $4.0 million transfer in equity, net of deferred income tax recovery of $1.1 million.

FINANCIAL POSITION

The Company’s consolidated cash and cash equivalents balance, as at February 28, 2014, was $6.9 million.

The Company has a $20 million demand operating loan facility secured by a 100% Company owned community. The Company believes that this facility represents a loan to value ratio under 65%. As at February 28, 2014, $9.7 million is available to the Company under this loan facility (amount available is net of $9.6 million drawn on the loan facility and $0.7 million in letters of credit secured by the loan facility). On April 11, 2014, the balance owing on the demand loan was $8.8 million.

The following is a summary of the Fiscal 2014 debt maturities re-financed in or subsequent to Q3/14, and those to be refinanced in the remainder of Fiscal 2014 and in Fiscal 2015:

Re-financed/Renewed in or subsequent to Q3/14

$15.8 million CMHC loan with a December 1, 2013 maturity date was renewed for five years at 2.79% down from 4.56%;
$9.3 million CMHC loan with a December 1, 2013 maturity date was renewed for ten years at 3.72% down from 4.56%;
In January 2014, a $23.6 million non-CMHC due on demand construction loan was renewed to September 2015 at prime plus 1.25% or BA plus 2.75% basis (unchanged). Prior to the renewal, the Company repaid $1.5 million of principal on the loan and a $1.5 million second construction loan on the property;
In January 2014, a $32.8 million non-CMHC due on demand construction loan was renewed to September 2015 at prime plus 1.25% or BA plus 2.75% basis (unchanged). As part of the renewal, subsequent to February 28, 2014, the Company repaid $2.2 million of loan principal;
$5.0 million CMHC loan with a February 1, 2014 maturity date was renewed for five years at 2.71% down from 4.70%;
$5.0 million non-CMHC loan which matured in December 2013 was renewed to October 1, 2015 at 6% interest rate (unchanged); and
$7.4 million non-CMHC loan with a February 1, 2014 maturity date was renewed for five years at 4.04% down from 5.95%. As part of the renewal, subsequent to February 28, 2014, an additional $2.8 million was added to this mortgage at 4.01%.

Remaining Maturities in Fiscal 2014

$3.3 million in one CMHC mortgage which the Company plans to renew (interest rate on this mortgage is 3.22%); and
$35.6 million in non-CMHC mortgages (including $32.2 million in mortgages payable due on demand) which the Company plans to renew or replace. Interest rates on these mortgages range from 3.92% to 6.0%. On the $32.2 million loan renewal, the Company anticipates it will need to make a principal pay down similar to the two loans renewed in January 2014 (see above) to complete the renewal.

Maturities in Fiscal 2015

$3.7 million in one CMHC mortgage which the Company plans to renew (interest rate on this mortgage is 3.41%);
$21.3 million in one CMHC mortgage which the Company plans to renew (interest rate on this mortgage is 3.39%); and
$1.5 million in a non-CMHC mortgage which the Company plans to renew or replace (interest rate on this mortgage is 6%).

FOURTH QUARTER DIVIDEND

The Board has approved a quarterly dividend of $0.105 per common share on all issued and outstanding common shares which will be payable on June 13, 2014, to shareholders of the Company of record on May 30, 2014.

RESULTS CONFERENCE CALL

Amica has scheduled a conference call to discuss the results on Monday, April 14, 2014 at 10:00 am Pacific Time (1:00 pm Eastern Time). To access the call, dial (416) 644-3416 (Local/International access) or 1-877-974-0455 (North American toll-free access). A slide presentation to accompany management’s comments during the conference call will be available. To view the slides, access Amica’s website at www.amica.ca and click on “Investor Relations” – “Presentations & Webcasts”. Please log on at least 15 minutes before the call commences.

The Company’s unaudited condensed consolidated interim financial statements for the three and nine months ended February 28, 2014 and the management’s discussion and analysis are available on SEDAR at www.sedar.com and available on the Company’s website at www.amica.ca.


CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION HIGHLIGHTS
(Expressed in thousands of Canadian dollars)
(Unaudited)

	February 28, 2014	May 31, 2013 Restated ⁽¹⁾
	$	$
ASSETS
Current
Cash and cash equivalents	6,923	8,794
Other	5,043	4,915
	11,966	13,709
Non-current
Deposits and other assets	2,174	2,492
Loans receivable from associates	2,614	4,144
Investments in associates	5,375	8,636
Property and equipment	662,200	639,008
	672,363	654,280
Total assets	684,329	667,989

LIABILITIES
Current
Mortgages payable	226,401	292,044
Other	31,577	22,075
	257,978	314,119
Non-current
Mortgages payable	270,242	183,760
Deferred income taxes	6,607	9,620
	276,849	193,380
Total liabilities	534,827	507,499

EQUITY
Equity attributable to owners of the company	139,776	153,995
Non-controlling interests	9,726	6,495
Total equity	149,502	160,490
Total liabilities and equity	684,329	667,989

				(1)		See note 3 to the Company’s condensed consolidated interim financial statements for the period ended February 28, 2014 (the “Q3 2014 Financial Statements”) which is available on SEDAR at www.sedar.com.


CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE LOSS
(Expressed in thousands of Canadian dollars)
(Unaudited)


	3 Months Ended				9 Months Ended
	February 28,				February 28,
	2014		2013((1))		2014		2013((1))
	$		$		$		$

Revenues:
Retirement communities	34,764		32,155		102,117		91,310
Other income	15		60		438		886
	34,779		32,215		102,555		92,196
Expenses and other items:
Retirement communities	23,224		21,609		68,540		61,725
General and administrative	2,560		2,021		7,365		6,490
Depreciation	7,386		8,431		22,402		24,184
Finance costs	5,500		5,418		16,264		15,708
Share of losses from associates	-		25		36		36
Loss (gain) on acquisitions	-		51		-		(355	)
	38,670		37,555		114,607		107,788

Loss before income tax	(3,891	)	(5,340	)	(12,052	)	(15,592	)

Income tax recovery:
Deferred	475		562		1,838		1,990
	475		562		1,838		1,990

Net loss and comprehensive loss	(3,416	)	(4,778	)	(10,214	)	(13,602	)

Net loss and comprehensive loss attributable to:
Owners of the Company	(1,628	)	(1,931	)	(3,467	)	(5,761	)
Non-controlling interests	(1,788	)	(2,847	)	(6,747	)	(7,841	)
	(3,416	)	(4,778	)	(10,214	)	(13,602	)

Weighted average shares (000’s) – basic and diluted	30,776		30,704		30,766		30,583
Basic and diluted loss per share	($0.05	)	($0.06	)	($0.11	)	($0.19	)

				(1)		See note 3 to the Q3 2014 Financial Statements which is available on SEDAR at www.sedar.com.

Forward-Looking Information

This news release contains “forward-looking information” within the meaning of applicable securities laws (“forward-looking statements”).

These forward-looking statements are made as of the date of this news release and the Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as otherwise required by law. Users of forward-looking statements are cautioned that actual results may vary from forward-looking statements contained herein. Forward-looking statements include, but are not limited to, statements regarding future occupancy rates; anticipated future revenues, revenue and margin growth, financial results and operating performance; interest rate savings on future re-financings; restructuring the debt of one other community and our anticipation that will need to make a principal pay down similar to the loans renewed in January 2014 on two other communities; future MARPAS growth; opening Amica at Oakville in spring 2015; commencing construction on the Amica at Swan Lake expansion and renovations once construction financing is in place; advancing the design and planning for the Amica at Dundas expansion; the prospective sale and redevelopment of Arbutus Manor; dividends and other similar statements concerning anticipated future events, conditions or results that are not historical facts. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. While the Company has based these forward-looking statements on its expectations about future events as at the date that such statements were prepared, the statements are not a guarantee of the Company’s future performance and are subject to risks, uncertainties, assumptions and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Such factors and assumptions include, amongst others, the effects of general economic and market conditions; actions by government authorities, including the granting of zoning and other approvals and permits; uncertainties associated with potential legal proceedings and negotiations, including negotiations with respect to construction financing and debt refinancing; and misjudgements in the course of preparing forward-looking statements. In addition, there are known and unknown risk factors which could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Known risk factors include, among others, risks related to dependence on the ability of Amica’s co-tenancy participants to meet their obligations; interest rate volatility in the marketplace; job actions including strikes and labour stoppages; possible liability under environmental laws and regulations, relating to removal or remediation of hazardous or toxic substances on properties owned or operated by Amica; risks associated with new developments, including cost overruns and start-up losses; the ability of seniors to pay for Amica’s services; regulatory changes; risks inherent in the ownership of real property; operational risks inherent in owning and operating residences; the risks associated with global events such as infectious diseases, extreme weather conditions and natural disasters; the availability of capital to finance growth or refinance debt as it comes due; Amica’s ability to attract seniors with its services and keep pace with changing consumer preferences, as well as those factors discussed in the “Risks and Uncertainties” section of the Company’s Management’s Discussion and Analysis for the three and nine months ended February 28, 2014, and in the “Risk Factors” section of the Company’s Annual Information Form dated August 9, 2013, filed with the Canadian Securities Administrators and available at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements, or the material factors or assumptions used to develop such forward looking statements, will prove to be accurate. Accordingly, readers should not place undue reliance on forward-looking statements.

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NON-IFRS FINANCIAL MEASURES

This news release makes reference to the following terms: “Earnings Before Interest, Taxes, Depreciation and Amortization” (or “EBITDA”), “Funds From Operations” (or “FFO”), “Adjusted Funds From Operations” (or “AFFO”), “Monthly Average Revenue Per Available Suite” (or “MARPAS”) and “Retirement Communities Margin” (collectively the “Non-IFRS Financial Measures”). These Non-IFRS Financial Measures are not recognized under IFRS and do not have standardized meanings prescribed by IFRS. The Company considers these Non-IFRS Financial Measures relevant in evaluating the operating and financial performance of the Company, along with IFRS measures such as net earnings (loss) and comprehensive income (loss), basic and diluted earnings (loss) per share and cash provided by (used in) operations. Definitions and detailed descriptions of these terms are contained in the MD&A.

				(1)		Mature Same Communities: Effective June 1, 2011, mature same communities was defined by the Company to be mature communities that are classified as income-producing properties for thirteen months after the earlier of reaching 90% occupancy or 36 months of operation, with the exception of Amica at Quinte Gardens. Amica at Quinte Gardens will be classified as a mature community thirteen months after the earlier of reaching 90% occupancy or two years post-acquisition by the Company.

ABOUT AMICA MATURE LIFESTYLES INC.

Amica Mature Lifestyles Inc., a Vancouver based public company, is a leader in the management, marketing, design, development and ownership of luxury seniors residences. There are 24 Amica Wellness & Vitality™ Residences in operation in Ontario, British Columbia and Alberta, Canada. Additionally, Amica has one residence under construction in Oakville, Ontario, one residence in pre-development in Calgary, Alberta and two existing operational residences in Ontario with expansions that are in pre-development. The common shares of Amica are traded on the Toronto Stock Exchange under the symbol “ACC”. For more information, visit www.amica.ca.

For further information, please contact:

Art Ayres

Chief Financial Officer

Amica Mature Lifestyles Inc.

(604) 630-3473

a.ayres@amica.ca

Troy Shultz

Manager, Investor Communications

Amica Mature Lifestyles Inc.

(604) 639-2171

t.shultz@amica.ca

Figures restated on adoption of IFRS 10, see “CHANGE IN ACCOUNTING POLICIES – 1) IFRS 10 Consolidated Financial Statements” section of the management’s discussion and analysis for the three and nine months ended February 28, 2014 (the “MD&A”) which is available on SEDAR at www.sedar.com

This is a Non-IFRS Financial Measure used by the Company in evaluating its operating and financial performance. Please refer to the cautionary statements under the heading “NON-IFRS FINANCIAL MEASURES” in this news release. See “DEFINITION AND RECONCILIATION OF NON-IFRS FINANCIAL MEASURES” section of the MD&A which is available on SEDAR at www.sedar.com for additional information on Non-IFRS Financial Measures including reconciliations thereof to net income/loss and comprehensive income/loss.