Log in
Log in
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
Sign up
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
  1. Homepage
  2. Equities
  3. Canada
  4. Toronto Stock Exchange
  5. Sienna Senior Living Inc.
  6. News
  7. Summary
    SIA   CA82621K1021

SIENNA SENIOR LIVING INC.

(SIA)
  Report
Delayed Toronto Stock Exchange  -  04:00:00 2023-02-06 pm EST
12.04 CAD   -1.63%
01/30National Bank on Real Estate 2023 Outlook, Says Return Expectations Oscillate with Rates
MT
01/30SIENNA SENIOR LIVING INC. : Ex-dividend day for
FA
01/20Sienna Announces Fourth Quarter 2022 Results Release Date and Conference Call
GL
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisionsFunds 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector news

Sienna Senior Living : 2022 Q3 Financial Results link to 2022 Q3 Financial Results

11/09/2022 | 08:37pm EST

Report to Shareholders

Q3 2022 Sienna Senior Living Inc.

LETTER TO SHAREHOLDERS

Dear Fellow Shareholders,

Being a purpose-driven Company guides us as we adjust our business to navigate a more challenging business climate, including labour shortages, inflationary pressures and rising interest rates.

Generating strong occupancy gains to offset higher operating expenses

Amid continuing cost pressures, we achieved occupancy improvements across both of our business lines during the third quarter. In our retirement segment, solid demand in our key markets, coupled with our successful leasing strategy and the new Aspira brand, generated same-property occupancy gains for the fifth consecutive quarter. Average occupancy reached 88.4% in the third quarter and further increased to 88.6% in October 2022. We have also been able to successfully increase average rental rates in line with market rates, which helps to offset higher operating expenses.

In addition, we achieved a 490 basis point occupancy increase in our acquisition portfolio during the third quarter, excluding one property in lease up. This was our first full quarter of owning the 12 retirement residences we acquired in Ontario and Saskatchewan during Q2.

While occupancy gains and rental rate increases contributed to revenue growth, we are continuing to deal with significant cost increases as a result of labour shortages and high inflation, both of which have put pressure on operating margins.

Impact of rising costs on operations and development program

In our long-term care portfolio, resident admissions continued to progress steadily during Q3 2022 at most care communities and occupancy reached 96.7% in the third quarter. However, we expect cost pressures to remain for some time due to labour shortages and high overall inflation. We are actively working with other participants in the seniors' living sector and the government to receive funding that is aligned with the significant inflationary pressures experienced in recent quarters. Adequate funding will ensure that we can continue to provide service excellence and quality clinical care, which are key to a positive resident experience, and is crucial for the long- term economic viability of the sector.

Current supply chain issues and high inflation are also key considerations as we move forward with our redevelopment plans of our older long-term care communities in Ontario. We are closely monitoring cost escalations and the economic feasibility of current and future projects. While rising development costs have impacted the timing of construction starts, we remain optimistic about the sector's ability to redevelop Class C homes in Ontario.

Prioritizing a corporate culture that is aligned with Sienna's purpose and vision

At a time of staffing shortages in the health care sector and fierce competition for talent, we are making significant investments in attracting and retaining employees who are passionate about working with seniors. Creating the best workplace for our 12,000 team members is a key priority and it is inspiring to see how team members across our Company have been leaning into our new purpose of "Cultivating Happiness in Daily Life".

A range of recruitment and staffing strategies are currently under way, including a new centralized scheduling system which has been implemented at most of our long-term care communities to date and will be rolled out across our retirement platform in the coming year. In addition, we are offering extra shifts to part-time team members to reduce our reliance on agency staff and launched a pilot program that supports the placement of Ukrainian refugees.

Aligned with our new purpose and vision, we have been actively listening and responding to our team members' insights. This is reflected in a number of initiatives including SPARK, Sienna's very own version of "Dragon's Den". SPARK gives employees a platform to be heard and share their ideas on how to improve the lives of our residents and team members. During the first round of submissions in October, we received over 170 ideas, of which a number will be piloted, with the goal to permanently implement the best ideas at our Company.

Our purpose and our belief that happiness drives wellness are also key aspects of our new long-term care platform. The implementation of the new platform is well under way and current areas of focus are enhancements to our residents' move-in experience and the transformation of the dining experience.

These and other initiatives will support our efforts to attract and retain a highly engaged workforce, build a talent pipeline for our growing company and distinguish Sienna as an employer and operator of choice in seniors' living.

Capitalizing on long-term demographic fundamentals and financial flexibility despite headwinds

Despite some headwinds, we intend to capitalize on the outstanding long-term demographic fundamentals in Canadian seniors' living. Our sector's resiliency is driven by the growing needs of seniors, who make up the fastest-growing demographic in Canada. At the same time, we prepare for some economic headwinds in the coming year and expect continued pressure on our operating margins.

Amid rising interest rates, we have maintained a strong balance sheet and increased Sienna's liquidity. On October 26, we upsized the Company's unsecured revolving credit facility by $100 million to $300 million and extended its maturity term by two years to March 2027. This latest financing is a vote of confidence in the future of our Company and our sector and underscores the resiliency of our business. It also provides financial flexibility as we set our long-term strategic goals for the coming years and work towards our vision to become Canada's most trusted and most loved seniors' living provider.

On behalf of our management team and our Board of Directors, I want to thank all of you for your continued support and commitment.

Sincerely,

Nitin Jain

President and Chief Executive Officer

Sienna Senior Living

Management's

Discussion and Analysis

Q3 2022 Report to Shareholders

MANAGEMENT'S DISCUSSION AND ANALYSIS

BASIS OF PRESENTATION .................................

1

ADDITIONAL INFORMATION............................

1

REVIEW AND APPROVAL BY THE BOARD OF

DIRECTORS........................................................

1

COMPANY PROFILE ..........................................

2

NON-IFRS PERFORMANCE MEASURES ............

2

KEY PERFORMANCE INDICATORS ...................

7

THIRD QUARTER 2022 SUMMARY ..................

9

BUSINESS UPDATE............................................

11

OUTLOOK..........................................................

18

SIGNIFICANT EVENTS........................................

19

OUR PURPOSE AND VISION .............................

20

COMPANY STRATEGY AND OBJECTIVES ..........

20

ENVIRONMENTAL, SOCIAL AND

GOVERNANCE (ESG) RESPONSIBILITY..............

22

INDUSTRY UPDATE ...........................................

24

BUSINESS OF THE COMPANY ...........................

24

QUARTERLY FINANCIAL INFORMATION ..........

25

OPERATING RESULTS........................................

26

JOINT ARRANGEMENT ....................................

27

NET OPERATING INCOME CONSOLIDATED.....

28

NET OPERATING INCOME BY SEGMENT .........

30

RETIREMENT..............................................

30

LONG-TERMCARE .....................................

32

DEPRECIATION AND AMORTIZATION .............

33

IMPAIRMENT LOSS..........................................

33

ADMINISTRATIVE EXPENSES ...........................

34

SHARE OF NET LOSS IN JOINT VENTURE.........

34

NET FINANCE CHARGES ..................................

35

TRANSACTION COSTS......................................

35

INCOME TAXES................................................

36

BUSINESS PERFORMANCE................................

36

ADJUSTED FUNDS FROM OPERATIONS ..........

37

SECOND QUARTER 2022 PERFORMANCE .......

38

CONSTRUCTION FUNDING..............................

38

MAINTENANCE CAPITAL EXPENDITURES........

39

RECONCILIATION OF CASH FLOW FROM

OPERATIONS TO ADJUSTED FUNDS FROM

OPERATIONS ...................................................

40

RECONCILIATION OF NET INCOME TO NET

41

OPERATING INCOME.......................................

FINANCIAL POSITION ANALYSIS.......................

41

LIQUIDITY AND CAPITAL RESOURCES ..............

43

LIQUIDITY ........................................................

43

DEBT................................................................

43

CREDIT RATINGS .............................................

48

FINANCIAL COVENANTS..................................

48

EQUITY ............................................................

52

CAPITAL DISCLOSURE......................................

53

CONTRACTUAL OBLIGATIONS AND OTHER

COMMITMENTS................................................

53

CRITICAL ACCOUNTING ESTIMATES AND

ACCOUNTING POLICIES ....................................

53

SIGNIFICANT JUDGEMENTS AND ESTIMATES .

54

RISK FACTORS ...................................................

54

CONTROLS AND PROCEDURES.........................

54

FORWARD-LOOKING STATEMENTS .................

55

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Sienna Senior Living Inc. published this content on 10 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 November 2022 01:36:01 UTC.


ę Publicnow 2022
All news about SIENNA SENIOR LIVING INC.
01/30National Bank on Real Estate 2023 Outlook, Says Return Expectations Oscillate with Rate..
MT
01/30SIENNA SENIOR LIVING INC. : Ex-dividend day for
FA
01/20Sienna Announces Fourth Quarter 2022 Results Release Date and Conference Call
GL
01/13Sienna Senior Living Declares January Dividend
MT
01/13Sienna Senior Living Inc. Announces Dividend for the Month of January 2023, Payable on ..
CI
01/13Sienna Announces January Dividend
GL
01/13Sienna Announces January Dividend
AQ
2022SIENNA SENIOR LIVING INC. : Ex-dividend day for
FA
2022Sienna Senior Living Inc. Announces Dividend for the Month of December 2022, Payable on..
CI
2022Sienna Announces December Dividend
GL
More news
Analyst Recommendations on SIENNA SENIOR LIVING INC.
More recommendations
Financials
Sales 2022 717 M 533 M 533 M
Net income 2022 - - -
Net Debt 2022 - - -
P/E ratio 2022 -
Yield 2022 7,68%
Capitalization 893 M 664 M 664 M
Capi. / Sales 2022 1,25x
Capi. / Sales 2023 1,18x
Nbr of Employees 12 263
Free-Float 99,5%
Chart SIENNA SENIOR LIVING INC.
Duration : Period :
Sienna Senior Living Inc. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends SIENNA SENIOR LIVING INC.
Short TermMid-TermLong Term
TrendsBullishNeutralBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 7
Last Close Price 12,24 CAD
Average target price 14,43 CAD
Spread / Average Target 17,9%
Managers and Directors
Nitin Jain President, Chief Executive Officer & Director
David Hung Chief Financial Officer & Executive Vice President
Shelly L. Jamieson Chairman
Hugh Boyd Chief Medical Officer
Jack C. MacDonald Independent Director
Sector and Competitors
1st jan.Capi. (M$)
SIENNA SENIOR LIVING INC.12.29%667
AMVIS HOLDINGS, INC.4.34%2 606
ARVIDA GROUP LIMITED2.63%539
BROOKDALE SENIOR LIVING INC.2.56%523
ESTIA HEALTH LIMITED-1.93%365
ORPEA-54.99%195