Extendicare Inc.

Thank you for standing by. This is the conference operator. Welcome to Extendicare Inc. Second Quarter 2026 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 ask a question, 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 zero. I would now like to turn the conference over to Gillian Fountain, Vice President, Investor Relations. Please go ahead.

Thank you, operator, and good morning, everyone. Welcome to Extendicare's 2026 Second Quarter Results Conference Call. Joining me today are Extendicare's President and CEO, Michael Greer, and Executive Vice President, CFO, David Bacon. Our Q2 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 archived 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 for those wishing to access an archived recording by phone until midnight on August 21st. Before we get started, please be reminded that today's call may include forward-looking statements on non-GAAP and other financial measures. Such forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to differ maturely 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. Our second quarter results reflect the successful execution of our acquisition strategy over the last 18 months. On April 1st, we closed the $570 million acquisition of CBI, making Q2 the first period that CBI contributes to our results. The year-over-year increase in our EBITDA of 71.7% also reflects the acquisition of nine long-term care homes from Riviera that closed June 1, 2025, and Closing the Gap that closed July 1, 2025. All three acquisitions are exceeding the originally underwritten adjusted EBITDA that we reported at the time they were announced. reflecting our focus on acquiring platforms that contribute to our organic growth. Q2 also featured Extendicare's inaugural unsecured notes offering with the issuance of $450 million of unsecured notes supported by a BBB credit rating from DBRS. Together with a new $250 million unsecured senior credit facility, This new investment-grade capital structure gives us flexibility in making future capital allocation decisions, leaving our pro forma net debt to EBITDA at 2.5 times, well ahead of our original leverage outlook when we announced the largest acquisition in our history. We are on track to complete the integration of Closing the Gap this year, as we now focus our attention on integrating CBI. We achieved another strong quarter of organic growth in home health care, which, coupled with the acquisitions, contributed to 133% year-over-year growth in home health care volumes. Excluding CBI, our ADV increased 31.7% from the prior year, driven by the closing the gap acquisition and strong underlying growth of the market. As we've previously noted, the unexpectedly rapid organic growth we have experienced recently in the home healthcare segment has necessitated additional investments in technology and back office teams to support frontline home healthcare operations. These investments, along with the lack of a 2026 rate increase in Ontario, contributed to the 60 basis point reduction in home health care NOI margins from the prior year period. Despite the strong volume growth again this quarter, we continue to expect that the underlying market growth will moderate over time to a long run average of approximately 6% to 8% on an annualized basis, reflecting the 4% demographic growth trend and the expectation that the shortfall in the availability of long-term care beds will continue. Long-term care occupancy remains strong with announced funding enhancements and preferred occupancy rate increases contributing to NOI growth of $5.7 million and trailing 12-month NOI margins of 11.8%. Our managed services segment continues its record of strong performance. including 8.3% year-over-year growth in the SGP customer base and NOI margins at 57.6%. We continue to expect annualized margins of 50% to 55% for this segment. Driven by the strength of these results, our AFFO per share adjusted to remove the impact of stock-based compensation payments increased to $44.8 per share, an increase of 52.9% year-over-year. Stock-based compensation was unusually impactful this quarter due to the retirement of two long-tenured directors from our board. Our payout ratio on a trailing 12-month basis, excluding the impact of out-of-period items, was 37%. Turning to slide four, We see updated information on CBI home health as detailed in the business acquisition report we filed on May 12th. CBI is tracking ahead of initial expectations with Q2 26 revenue of $145.7 million and adjusted EBITDA of $18.5 million. CBI contributed ADV of $33,609 in the quarter. Approximating a run rate of 12 million hours of care annually, about 20% ahead of 2024 volumes, a very similar growth rate to what we experienced at Paramet in the same period. CBI is highly complementary to Paramet as it materially expands our presence in Western Canada and introduces business models that offer new avenues for organic growth. The added scale of the combined companies will enable further investments in technology and deliver significant synergies once the integration is complete. This is important to position us to provide reliable, high-quality services more efficiently to the thousands of people that rely on us for care every day. Turning to slide five, we continue to advance our Ontario long-term care redevelopment agenda through our joint venture with Axiom Infrastructure. At the end of May, we welcomed residents to Extendicare Beauclair, the new 320-bed home in Ottawa that we opened in the joint venture. We also completed the sale of the Sudbury project to Axiom Joint Venture for net cash proceeds of $18.1 million net of costs and our 15% retained managed interest. resulting in a $7.7 million gain after tax. We currently have six projects under construction, including Extendicare Forest Trail, a 256-bed home which is scheduled to open next month in Peterborough. Looking ahead, we remain on track to open four new homes in 2027, representing a further 832 beds. We continue to progress an additional 17 projects that are at varying stages of planning and development under the Ontario Long-Term Care Home Capital Development Program, including a 256-bed home in Ottawa, where we hope to break ground by the end of 2026. We are actively working with the government on necessary funding and other elements required to fully realize our development agenda. I'll now turn the call over to our CFO, David Bacon, to discuss our financial results in more detail.