Thank you, operator, and good morning, everyone. Welcome to Extendicare's 2025 fourth quarter and full-year results conference call.

Joining me today are Extendicare's President and CEO, Michael Guerriere, and Executive Vice President and Chief Financial Officer, David Bacon. Our Q4 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 archive recording will also be available on our website following the call today. As well, replay numbers and passcodes have been provided in our press release to access an archive recording by phone until midnight on March 13th.

Before we get started, please be reminded that today's call may include forward-looking statements and non-GAAP and other financial measures. Such forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed or implied today.

We have identified such factors, as well as details of non-GAAP and other financial measures, in our public filings with the securities regulators, and suggest that you refer to those filings. With that, I'll turn the call over to Michael.

Thank you, Jillian, and good morning. 2025 was a very successful year for Extendicare, marked by strong organic growth in ParaMed and SGP, higher margins in all three operating segments, and two acquisitions that we closed mid-year that augmented our long-term care and home health platforms.

Taken together, these developments resulted in overall adjusted EBITDA for the quarter of $45.6 million. This is an increase of 36.4% from the prior year, after adjusting for out-of-period items.

The integration of the long-term care homes acquired from Revera is now complete, and the Closing the Gap integration is well underway and expected to finish in Q3. Both acquisitions are performing ahead of the pro forma financial information shared at the time the acquisitions were announced.

AFFO per share is up 6% over the prior year quarter, with the earnings improvement moderated by a catch-up in maintenance capex in the last quarter of the year. Our payout ratio for the quarter was 42%, and 46% for the full year, both numbers adjusted for out-of-period items, providing us with considerable flexibility in our capital allocation options.

ParaMed delivered 15.3% organic volume growth over the prior year quarter. The continued strength of demand for our home health services is supported by strong demographic trends and ongoing long-term care capacity constraints.

This strong organic growth, combined with the contribution from Closing the Gap and the scalability of our technology-enabled back office, drove an NOI margin of 13.2% after adjusting for out-of-period items. This represents a 280 basis point improvement over the prior year quarter.

Our long-term care NOI margins in the quarter improved by 90 basis points to 10.9% over the prior year, after adjusting for out-of-period items, and our occupancy remains consistent at 98%. Managed services revenues declined in the second half as Revera sold the remainder of its C-bed portfolio, some to Extendicare and others to a large operator that took operations in-house.

Nonetheless, third-party and joint venture beds served by SGP grew to over 153,500, up 5% from the prior year quarter. Managed services NOI margins were 55.5% this quarter, and remain in line with our long-term expectations of 50% to 55% for this segment.

Finally, we announced a 5% increase to our monthly dividend, to 4.41 cents, effective with the dividend to be declared in March. This is the second year that we have increased the dividend, reflecting our sustained financial and operating performance, sound capital structure, and prospects for growth.

Operational momentum, augmented by organic growth, acquisitions, and prudent management of our balance sheet, will enable us to consider further dividend increases as we make capital allocation decisions in future years. Turning to slide 4, as previously announced, in November 2025, we entered into an agreement to acquire the CBI Home Health business for $570 million.

CBI Home Health is highly complementary to ParaMed, as it gives us an expanded presence in Western Canada, and new business models that offer new avenues for organic growth. The combination of the two companies provides an opportunity to achieve significant synergies as we scale up the volumes we drive through our technology platform.

The added scale will also support the continued investment in technology, enabling us to provide reliable, high-quality services more efficiently to the thousands of people that rely on us for care. The transaction is expected to add approximately 10 million hours and 8,500 team members to our home health segment, contributing an estimated $478 million in revenue and $61.9 million in pro forma adjusted EBITDA.

The transaction is 9% accretive to earnings per share at the outset, growing to 15% when anticipated synergies of $7.4 million are realized. The regulatory approval process is progressing well, and we hope to close the acquisition in early Q2.

In December, we completed our $200 million bought deal private placement, generating net proceeds of $191.5 million. Together with the $214.5 million committed expansion to our senior secured credit facilities and cash on hand, we are positioned to close the transaction while preserving flexibility in our capital structure.

Turning to slide 5, we continue to advance our Ontario redevelopment agenda in Q4 by commencing preliminary construction of a 320-bed home in Sudbury, which will replace a 278-bed Class C home we operate nearby. This brings to seven the number of homes we have under construction, for a total investment of $692.3 million.

We continue to use our joint venture platform to fund our redevelopment projects, to preserve our balance sheet while retaining a 15% managed interest. We are waiting final regulatory approval to sell the new Sudbury project into the joint venture, and expect to close in the coming weeks, recovering the capital we invested in the project to date and realizing a gain on the sale.

We remain on track to open two new homes in 2026: Extendicare Beauclair, a 320-bed home in Ottawa, and Extendicare Forest Trail, a 256-bed home in Peterborough. After year-end, we completed the sale of our vacated West End Villa C-bed home in Ottawa for proceeds of $12.5 million, resulting in an after-tax gain of $10.1 million.

This home was vacated earlier in 2025 following the opening of Extendicare Crossing Bridge, a joint venture home. Consistent with recent projects, the proceeds from the sale will enable further investment to advance our redevelopment pipeline.

We continue to progress an additional 17 projects, which are at varying stages of planning and development under the Ontario government Long-Term Care Home Capital Development policy. We also continue to advocate for additional funding and other considerations for certain projects, particularly in Northern Ontario, that we need to execute on our full redevelopment agenda.

I'll now turn the call over to our CFO, David Bacon, to discuss our financial results in more detail.

Thanks, Michael. I'll start with a brief overview of our consolidated results, and then talk about our individual business segments and our liquidity.

Our consolidated results for the quarter, Q4 NOI was impacted by approximately $3.9 million in net favorable out-of-period items, related primarily to workers' compensation rebates received in LTC and home health, offset by retroactive wage adjustments in LTC. The impact of the out-of-period items is summarized in the appendix to the presentation.

Our consolidated Q4 revenue increased by 18% to $462 million, driven by the full quarter contribution from the acquisitions of Closing the Gap and the nine LTC homes acquired from Revera earlier in 2025, contributing $61.8 million in revenue; 15.3% organic growth in our home care volumes, along with bill rate increases; long-term care funding increases; partially offset by the closure of the Class C LTC homes that were vacated following the opening of the newly redeveloped long-term care homes in the Axium joint venture; and lower management fees as a result of the sale by Revera of the LTC homes we previously managed. Excluding out-of-period items, our Q4 NOI improved by $14.3 million, or 30.2%, reflecting the revenue growth and a contribution of approximately $8.6 million to NOI from the two acquisitions, partially offset by higher operating costs.

Excluding the impact of out-of-period items, our Q4 adjusted EBITDA increased by $12.2 million, or 36.4%, reflecting the improvement in our NOI, partially offset by higher administrative costs. Q4 AFFO per share is 33.7 cents, down slightly from the prior year, with the improved after-tax earnings this quarter partially offset by higher maintenance capex compared to the same period last year, due to the timing and size of maintenance projects in LTC in the quarter, and additional maintenance capex from the LTC homes we acquired earlier in the year.

When out-of-period items are excluded from both this year and last, our AFFO per basic share improved 6% to 30.1 cents per share. The equity issuance completed in December of 2025 had an approximately 1 cent per share impact on both our reported AFFO per share and our earnings per share in Q4.

Turning to our individual segments, home health care continues to deliver exceptional performance. Q4 revenue increased by $49.7 million, or 33.6% year-over-year, driven by the $26.6 million contribution from Closing the Gap and 15.3% organic growth.

Q4 NOI, excluding the net impact of the year-over-year change and out-of-period items, improved by $11.2 million, or 75.3%, driven by the organic volume growth and approximately $3.8 million in NOI from Closing the Gap. On the same basis, excluding the out-of-period items, NOI margins increased 280 basis points to 13.2% in the quarter.

Turning to our long-term care segment, the Q4 results were impacted by out-of-period costs of $1.6 million this year, compared to out-of-period funding of $1.9 million in the prior year period. Excluding out-of-period impacts, revenue increased by $26.3 million, or 11.8%, driven by the full quarter contribution of $35.2 million from the nine LTC homes acquired from Revera, the timing of envelope spending, partially offset by a loss of approximately $7.6 million in revenue from the closure of the two redeveloped Class C homes that were replaced by the new homes in the JV.

Excluding the net impact of the out-of-period items, NOI increased by $4.9 million, or 22%, driven by the increases in revenue and approximately $4.8 million in NOI contribution from the nine LTC homes acquired, partially offset by higher operating costs and the loss of approximately $500,000 in NOI related to the closed Class C homes. Corresponding NOI margins increased 90 basis points over the prior year period to 10.9% in the quarter, and our full-year NOI margins adjusted for out-of-period items was also 10.9%, up 50 basis points from the full year 2024.

Turning to our managed services segment, the decline in revenue and NOI this quarter reflect the termination of the management contracts resulting from the sale by Revera of the 30 LTC homes, nine of which were sold to us in Q2 and are now in our LTC segment. Our managed service revenue decreased $3.6 million to $15.3 million, and NOI declined $1.8 million to $8.5 million.

Despite the reduction in the number of managed homes, earnings benefited from our 5% organic growth in our SGP clients, and the increased management fees from the newly opened homes in the JV. Turning to the balance sheet, with our successful equity offering in December, we ended the year with $348 million in cash on hand and $154 million of available lines of credit, and strong credit metrics.

As Mike mentioned earlier, we have secured a committed $214.5 million upsizing of our senior secured credit facility to help fund the CBI acquisition. This consists of an incremental $154.5 million in delayed draw term loan and $60 million in our revolving credit facility.

Furthermore, this upsized facility will have a new three-year term, extending the maturity to 2029. We intend to fund the CBI acquisition by drawing the incremental $154.5 million delayed draw term loan, and approximately $154 million drawn on the revolving credit facility, with the balance coming from cash on hand.

Based on this, our pro forma total debt to adjusted EBITDA will be approximately in the 2.7 to 2.9 times range at closing, based on the financing plan and the $228 million in estimated pro forma adjusted EBITDA previously disclosed in our CBI acquisition announcement, which is ahead of our estimated leverage at the time of announcement. We're pleased with the strength of our capital structure and are well positioned to continue to pursue our growth agenda.

We will remain disciplined in our approach to allocating capital, balancing our objectives to drive growth and create shareholder value. With that, I'll pass it back to Mike for his closing remarks.

Thank you, David. 2025 was a milestone year for Extendicare.

The benefits of our compelling strategy are clearly evident in our results for the fourth quarter and the full year. The demographic realities of an aging population continue to drive demand for our services, and the scale and efficiency of our operations position us well to answer the call.

We are excited about the prospects that 2026 will bring, most notably the completion of the CBI Home Health acquisition. This transaction, combined with our achievements of the last several years, position Extendicare to make a significant contribution to building capacity in the Canadian health care system.

Given the ongoing challenges faced by the health care sector, we are confident that our scale and mix of services will relieve pressure on hospitals by providing care in more appropriate and cost-effective settings. We will continue to build capacity to ensure that everyone in Canada receives the care they need to live their best lives.

My sincere thanks to our growing team, including the new team members we will soon welcome from CBI, for their commitment to advancing this important mission. With that, we welcome any questions that you might have.

Hello, everyone. First quick one for me, just on your home health care segment, the organic volume growth, the service hours provided up organically 15% in Q4, that figure just keeps climbing quarter after quarter, great to see.

Wondering do you have anything to call out as kind of a one-time tailwind, or is this performance just reflective of demand tailwinds you're experiencing for home health care, as a key supplier to the provinces?

Thanks, Kyle. The pace of growth continues to surprise us, frankly, and certainly more than what we've been expecting.

The underlying demographic growth in the populations we serve drives about a 4% growth pace. Then we've been noting the fact that long-term care capacity is not growing in keeping with the demographics, and so governments are turning to home health care to fill in that gap, which is what we think is driving the outsized increases.

It's interesting that in Ontario we've seen statistics that the number of people inappropriately in acute care hospitals waiting to go home or waiting to go to long-term care has been declining for the first time in many years. It's dropped about 14% from the prior year.

We think that the home care volumes are helping that kind of decompression of the hospital sector to happen. All that said, it's hard to know how long these really rapid growth rates will continue.

We continue to believe that the growth rates will moderate back to a mid- to high-single-digit kind of pace. We really don't know when that's going to happen.

We take it quarter by quarter and make sure that our recruiting and training capabilities are calibrated to changes in demand in the marketplace. I continue to think that this kind of pace cannot continue at this rate indefinitely.

Got it. That's very helpful color.

Appreciate all that. Second one for me.

Thanks for the messaging that the Sudbury redevelopment project will go into the JV in the coming weeks. Is it still the plan to do all future Class C redevelopments using the JV structure, as you opt to save your capital for other sources of growth?

Or will that playbook maybe evolve over time to include wholly owned redevelopment projects, notably given you have so much capital access and free cash flow continuing to roll

in? Kyle, I think it is our intent to continue with the strategy we have to date.

At the moment, we do view the Ontario redevelopment agenda as squarely being done in partnership with capital partners, and to date it's been Axium. We don't see us changing that viewpoint at the moment.

I think you'd see us being consistent going forward.

Got it. Okay.

One last quick one, just on the CBI acquisition closing, is there any risk to closing, or is this just a basic delay as you go through the closing process? Maybe you can provide some color on the source of the delay versus the original timing expectation.

Look, the regulatory approval process is real, we do need to get those approvals and work with our various government partners to make sure that we're aligned on the path forward. That said, the process is going very well.

There's been no unexpected developments, and so we have no reason to think that we won't be successful in getting to a conclusion in Q2.

Okay. Thank you.

I'll pass the line.

Thanks. Good morning.

Maybe just building on some of those home health questions there, appreciate the color. I guess one of the things you mentioned was just making sure recruiting and training capabilities are appropriately calibrated.

I understand kind of the view that eventually this growth kind of starts to decelerate, but assuming we work through a good part of '26 at these elevated A&V growth levels, is there any constraint from a labor perspective, or do you feel pretty good about where you sit today from that end?

Right now, I'd say we feel pretty good. We're not seeing any headwinds in the labor market that suggest that we would have challenges fulfilling most of our human resources needs.

That said, we are in a world where labor markets are changing quite significantly as a result of changing immigration policies. That is a file that we're watching carefully.

We've seen no impact on our ability to deliver or our ability to recruit to date as a result of that. I would also say that the rules seem to be changing on a weekly and monthly basis.

It may have an impact on the broader market. The other comment that I would make is that, although we're largely able to meet demand, in certain geographies where we operate in rural parts of the provinces, in more remote places, we continue to have constraints on our ability to recruit enough caregivers.

The big municipalities, no problem meeting demand, but there are still parts of the province of Ontario where we are not able to accept all the referrals that come our way. Managing labor supply and building our own capabilities to train people to provide care continues to be a key part of our strategy.

Thanks for that. Maybe just one follow-up on the home health side, just in terms of I guess incremental delivery models, I saw Ontario launched a high-intensity bundled home care program.

It appears to me at least more of a trial run here in early '26, but just any thoughts there to that program specifically, or maybe other initiatives that could come through that maybe set you up for incremental volume as opposed through or when compared to years past?

That procurement was an example of something that has been developing and growing over the last several years of hospitals partnering more closely with home care operators to streamline the handoff of patients that are discharged from hospital and make sure that they get continuity of care as they go home. We're certainly involved with a whole number of hospitals in those kinds of projects.

The other trend, you pointed out that that particular one was high intensity. We are seeing more in the way of 7x24 home care services, where it's a little bit more wrap-around and providing support at all hours, including weekends, to allow people to stay in their own homes.

When we look at our volume growth, some of it is because we have more patients, and some of it is because we're just providing a higher number of hours for some of the new patients that we're taking on in that high-intensity category. I think we're going to continue to see those kinds of activities, and both Closing the Gap and CBI were very good in and very competitive in those two spaces, which is one of the things that made it quite attractive for us.

Great. Maybe if I could just sneak one more in on the housekeeping or modeling side.

David, just in terms of cash taxes for '26, is a similar range to '25 in terms of percentage of pre-tax FFO a good way to think about it, or are there any impacts from the CBI acquisition? No,

I think you're still going to look at the taxes in the sort of 24% to 27% range from a percentage basis, so that's the guidance we've put in the MD&A for next year.

Great. Thank you.

Hey, guys. Good morning.

I just

kind of wanted to get started with the home health care segment. What's kind of the ceiling do you think on the margin performance in that business?

I think a few thoughts, Giuliano, there. I think if you look at our normalized full year for 2025, we're at 12.8%.

I think as we've said on past calls, we do believe there is still margin expansion in this business. As we grow volumes, look for continued development of technology solutions in the back office that we still think there's opportunities, especially in home care, on added technology that can help with productivity efficiency.

I think, looking forward, there'll be some improvement into that 12.8% as we go forward, but, as Mike mentioned, this high level of the organic growth gets sustained like it is for a period of time, there is going to be some step change needed in the cost structure in the business that could temper some of the margin improvement. There is still improvement.

It could just be tempered a little bit if we have a continued run at this level. As we've said before, this should be a 13% plus margin business, but when we hit that on a sustained basis is still to come.

Okay. Then

how much is the labor side out of the opex? If the average wage is around $23 or so, that means there's around half of the opex is not related to labor.

I'm just wondering out of that half, how much is fixed and really driving that scaling?

We don't really break that out, Giuliano. I think we focus on the NOI margins.

Labor's generally 75%, 80% of our cost structure, but the split between back office, front office, it's not something we split out. Okay.

Moving on to the volumes, how many kind of contract wins did you get this quarter out of the share that were offered?

We're not sharing that information. You're talking about our win rate in terms of contracts.

The first thing I would say is that the volume that comes from some of those new contracts is not material. It takes a long time for those contracts to turn into anything that would even come into a 100 basis points impact on our volume.

That's the first thing. The second thing is that we're not sharing that kind of competitive information.

Right. Okay.

Then just moving to the kind of capex, I'm wondering how many more projects need to be sold from the old homes remaining?

Yeah. I think with the sale of the Stittsville home in Q1 just after year-end, we've now sold the three projects for the three homes that have opened.

We have seven homes now in construction. The next two to open is in Peterborough and just in Ottawa.

We're readying the legacy C homes related to those two to go to market. We tend to kind of go to market as we're getting ready to transition into the new home.

We'll be looking to sell these, gear up so that we minimize the gap between closing and selling so that we're not sitting on that capital tied up in the vacant homes. Everything we've opened, we've now sold the homes, and the next wave are getting ready on the marketing.

Just the last question for me is with CBI kind of being acquired, does this really round out your platform to go for more of the smaller acquisitions that tend to have a higher accretion?

I think it would be market by market I think is the way to answer that. Certainly, this transaction will give us substantial presence in Ontario.

That's not to say in certain markets still we'll be light on nursing or light on the allied physio-type services, there's definitely infill opportunities. The CBI gives us a beachhead across the West with a strong presence in Alberta, I think those markets are opportunity.

Lastly, there's adjacencies which I think we've talked about before. There's other markets that we could look to that still can leverage our back office and how we work and sort of workers' compensation, private insurance type markets.

All of those are still opportunities for us. Something sizable in Ontario is probably the one thing that is now done with CBI.

I would just remind everybody too that, and I think we've said this, for the next foreseeable time, our focus is going to be on integrating, finishing CTG and integrating CBI. There is going to be a pause on the M&A for '26 until we get into '27 and well underway on CBI.

There's still a lot of opportunity in home care, still very fragmented. We're just going to take a bit of a beat before we're back at that.

Great. I'll turn it back.

Thanks. Good morning.

Maybe just coming back to ParaMed, and aside from the acquisition Closing the Gap, is it fair to say that you're gaining share from your competitors, or are you seeing their volumes grow perhaps at similar clips?

Based on the information we have about the growth in the market, we think that this is predominantly a market expansion and that our share is staying quite consistent. You can see that even in CTG, right, where CTG itself has been outperforming our original pro forma information, and it's just another data point that supports that.

I guess maybe just building on that is the trendline for CBI to date, I guess through Q4 and pretty much consistent with what you've seen from CTG and your existing platform?

I think we're still looking for updated financial information from them. They're still working through their year-end audits, but I don't think we have any expectation that they're not enjoying some of the similar performance, but, yeah, we wouldn't be able to comment specifically on their numbers at the moment.

Okay. I guess, I think you mentioned that you're really not going to be looking to do anything of significance from any sort of additional capital deployment on acquisitions in home care, but are you seeing more home care providers perhaps looking to monetize and capitalize on this momentum in the space?

Just wondering if there's other deals out there that you may just perhaps pass on just because you have obviously a very substantial acquisition in the works?

I'd say there's still activity, for sure. We do have a pipeline.

We do have discussions going on. We did before CBI, we still do now.

Certainly over the last 12 to 18 months, the sector has had a lot of activity, like our transactions as well, the Spectrum transaction. There is opportunity as we said out there, people looking to monetize, all sorts of different reasons.

Some of the smaller ones are your traditional single operator, lack of succession planning or opportunities, etc. I think that there's lots of opportunity there, but likely nothing of a scale or as big as a CBI, but lots of other opportunities, yeah.

Okay. Then just lastly, David, these out-of-period funding amounts and the WSIB rebates, I recognize these amounts can be lumpy, but they do seem to recur on a fairly consistent basis.

Is it fair to assume that maybe these amounts perhaps just continue going forward, or do you think it's kind of done at this point?

Honestly, Pammi, I wish we knew to some extent. I don't think we came into '25 thinking we'd have two installments of workers' comp.

I don't think anybody expected that. What I'd say, I'd like to think those types will go away and at some point stop.

I do think the one place where we will continue to potentially have kind of catch-ups is on the funding announcements, because we just know historically some of the various provincial announcements come late. They don't come ahead of April 1, they come a little later with retro components.

That I think will always be there to some extent, but the WSIB has been unusual. Didn't think it was going to continue to the extent that it did in 2025.

As it's not just us, that's a sector thing, like an employer thing that's happening, but, yeah, hard to predict, hard to say.

Okay. It's a good thing to have, but that's all fair.

Thanks very much. I'll turn it back.

Thank you, operator. That concludes our call for today.

This presentation is available on our website, along with a link to a replay of the call. Thank you all for joining us, and please don't hesitate to reach out if you have any further questions.

Goodbye.