Extendicare Inc.

Thank you for standing by. This is the conference operator. Welcome to Extend-a-Care, Inc. Fourth Quarter 2025 Analyst Conference Call. As a reminder, all participants are in a 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. You will hear a tone acknowledging your request. Should you need assistance during the conference call, you may signal an operator by pressing star, then zero. I would now like to turn the conference over to Jillian Fountain, Vice President, Investor Relations. Please go ahead, ma'am.

Thank you, operator, and good morning, everyone. Welcome to Extended Care's 2025 Fourth Quarter and Full Year Results Conference Call. Joining me today are Extended Care's President and CEO, Michael Greer, and Executive Vice President and Chief Financial Officer, David Bacon. Our key four 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, Gillian, 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 Rivera 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. Heramed 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 remained consistent at 98%. Managed service revenues declined in the second half as Reverish sold the remainder of its seabed 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 four, 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 Pyramid. 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 five, 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 awaiting 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 this 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.