Extendicare Inc. reported un-audited consolidated earnings results for the first quarter ended March 31, 2018. For the quarter, the company reported net operating income from continuing operations declined by $2.3 million or 7.2% to $29.3 million compared to $31.6 million reported a year ago. Net operating income from the Canadian operations declined by $0.8 million and was unfavourably impacted by the timing of Good Friday, which increased operating costs this quarter by approximately $1.4 million, and prior period funding of $0.8 million received in the 2017 first quarter. Adjusted EBITDA from continuing operations declined by $1.4 million to $20.0 million this quarter compared to $21.4 million a year ago, reflecting the lower contribution from net operating income, partially offset by lower administrative costs. Despite the impact of the additional holiday and prior period funding, AFFO improved by $2.0 million this quarter to $14.7 million or $0.161 per diluted share from $12.7 million or $0.141 per diluted share in the same 2017 period, primarily due to lower current income taxes of $2.2 million, partially offset by an increase in maintenance capex. The company reported total revenue of $271.4 million compared to $268.9 million, earnings from continuing operations of $3.6 million or $0.04 per basic share compared to $4.9 million or $0.06 per basic share and maintenance capex (continuing operations) of $1.1 million compared to $0.91 million for the last year.

The company anticipated effective tax rate on FFO will be in the range of 17% to 20% for the 2018 year.