Extendicare Inc.

Welcome to Extendicare Inc. Third Quarter 2025 Analyst Conference Call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then 1 on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star then 0. 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 2025 Third Quarter Results Conference Call. Joining me today are Extendicare's President and CEO, Michael Greer, and Executive Vice President and CFO, David Bacon. Our Q3 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 November 28th. 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 now turn the call over to Michael.

Thank you, Jillian, and good morning. Q3 was an excellent quarter for Extendicare. Strong organic growth augmented by a full quarter impact of our recent acquisitions established a new baseline for our results. We started the quarter by completing the acquisition of Closing the Gap on July 1st, welcoming more than 1,200 caregivers and adding an estimated 1.1 million annual service hours to our home health segment. Closing the gap added $24 million in revenue and $3.1 million in NOI in Q3, ahead of our expectations when we first announced the deal earlier this year. As we integrate closing the gap into pyramid operations, we expect to generate annualized operating efficiencies of approximately $1.1 million after the first year. The acquisition also enhances our capability, to establish and deliver new integrated care models, such as direct home care contracts with hospitals that provide us with new ways to meet the needs of the aging demographic. Home healthcare volumes at Paramed were up 13% over the prior year quarter, the largest year-over-year organic growth we've experienced. This reflects rising demand due to the aging demographic long-term care capacity growth that's falling short of needs, and a strong societal preference for living independently at home for as long as possible. We've been successful in meeting this rising demand through large-scale recruiting and training programs that ensure we have the staff necessary to meet the needs of our clients. On the heels of the Closing the Gap acquisition, and the nine-home LTC acquisition we completed in Q2, we increased our senior secured credit facility by $100 million in the quarter, drawing $55 million on our delayed draw term loan to partially fund the closing the gap acquisition. The upsides in our credit facility allowed us to complete the two acquisitions while maintaining very favorable liquidity. providing us with significant flexibility to optimize capital allocation and drive further growth. On slide four, you can see that this quarter marked our strongest performance in recent years, reflecting margin improvements across all segments. We strive to be Canada's leader in the delivery of high-quality, long-term care and home care services, leveraging our deep expertise to drive growth in a capital-efficient manner. Our results released yesterday demonstrate several pillars of our strategy at work, including organic growth driven by strong operational execution, strategic M&A that builds scale and expands service capabilities, and disciplined capital allocation grounded in a strong balance sheet. Adjusted EBITDA increased to $50.8 million, up 40.6% over the prior year. Excluding the out-of-period items recorded in both years, adjusted EBITDA increased by 36.6% to $46.9 million, with home health care leading the way. Home health volumes grew almost 25% from the prior year, reflecting the organic growth and closing the gap. Home healthcare NOI margin improved by 230 basis points to 13.6%, reflecting the operating leverage enabled by the scalability of our technology-driven back office. In our long-term care segment, Q3 NOI margin improved by 40 basis points over the prior year after adjusting for out-of-period items. And in managed services, Third-party and joint venture beds serviced by SGP grew 6% from last year, bringing the total to over 152,000 beds. Driven by the strength of these results, AFFO increased to $0.31 per share, up 19.3% on a year-over-year basis, driving our payout ratio down to 45% on a trailing 12-month basis. Our growing cash flow and strong balance sheet give us flexibility to pursue strategic growth through acquisitions. We see attractive opportunities in a fragmented seniors care market that is underpinned by strong demographic demand. Our scalable back office helps make acquisitions immediately accretive as we realize the synergies that come from running higher volumes through our cloud-based technology platform. Turning to slide five, we continue to advance our redevelopment agenda with six homes under construction that will bring 1,408 new state-of-the-art beds into service, replacing 1,097 Class C beds. The $565 million development cost of these six projects is being funded through our joint venture with Axiom, where we retain a 15% managed interest. We are targeting opening two new homes, our Orleans and Peterborough projects, in the first half of next year. In addition, we have a further 18 projects advancing through the planning and development stages under the new Ontario government long-term care home capital development program. We plan to start construction on a new 320-bed home in Sudbury by the end of this year. which we intend to vend into the Axiom JV in Q1 2026, subject to regulatory approval. We aim to start construction on up to three additional projects in 2026. We remain committed to replacing the older homes in our portfolio and expanding long-term care capacity in Canada. As recent projects have demonstrated, pursuing redevelopment through the joint venture structure is capital efficient. Proceeds from the sale of new projects into the joint venture and sales of vacated Class C buildings to third parties provide capital that we can redeploy into the next wave of redevelopment projects. This preserves our balance sheet and delivers long-term value to shareholders. I'll now turn the call over to our CFO, David Bacon, to discuss our financial results in more detail.