Parkbridge Announces First Quarter Results - Income from Property Operations up 22%



    
    -------------------------------------------------------------------------
    Unaudited                                 Three Months ended December 31
    ($000's, except per share amounts)                    2008          2007
    -----------------------------------           ------------- -------------

    Total revenues                                      22,701        25,865
    Income from operations                              10,169         9,117
    Funds from operations (FFO)(1)                       5,108         4,998
    FFO per share - basic/diluted                         0.08          0.08
    Net income                                           2,404         2,499
    Net income per share - basic/diluted                  0.04          0.04
    -------------------------------------------------------------------------
    (1) Management utilizes a measure called Funds From Operations ("FFO") to
        assess and evaluate its return on each of its projects as well as the
        performance of the enterprise as a whole. FFO does not have a
        standardized meaning prescribed by Canadian generally accepted
        accounting principles ("GAAP"), and therefore may not be comparable
        to similar measures presented by other issuers. Parkbridge defines
        FFO as being net income for the period before depreciation and
        amortization on capital assets, certain defeasance costs, stock-based
        compensation expense, internalization costs, future income tax
        expense and deferred credits in income tax expense.
    

    CALGARY, Feb. 5 /CNW/ - Parkbridge Lifestyle Communities Inc.
("Parkbridge" or the "Corporation"), (TSX: PRK) today announced the results
for the first quarter of its 2009 fiscal year ended December 31, 2008.
    Income from property operations rose 22% to $9.8 million for the three
months ended December 31, 2008 as compared to $8.1 million for the comparable
period in 2007. 65% of this increase reflected strong contributions generated
internally by rent increases, from the lease-up of developed sites and from
operational improvements. The remainder of the increase resulted from
properties acquired during the last fiscal year.
    Income from home sales operations amounted to $0.4 million in the first
quarter as compared to the $1.0 million generated in the same quarter last
year. The reduction in sales income was largely a reflection of the change in
the mix and timing of expansion projects.
    Funds from operations for the three months ended December 31, 2008 rose
slightly to $5.1 million ($0.08 per share) as compared to the $5.0 million
($0.08 per share) achieved during the same three month period a year earlier.
    Net income for the three months ended December 31, 2008 was $2.4 million
($0.04 per share), a slight decrease as compared to $2.5 million ($0.04 per
share) for the same period a year earlier.

    
    Highlights

    -   Parkbridge's communities continue to enjoy high occupancy levels,
        and approximately 90% of last year's tenants in Seasonal Resorts and
        Marinas have already renewed their leases for the 2009 season. In
        addition, rental rate increases, averaging approximately 5%, have
        been implemented across the portfolio.

    -   $3.9 million was invested during the first quarter of fiscal 2009 in
        the 19 projects under active development. The phased build out of
        development projects resulted in the completion of 88 new Developed
        Sites during the quarter. Inventory of Developed Sites on hand and
        available for lease-up at December 31, 2008 stands at 898 sites. For
        the remainder of the 2009 fiscal year, the Corporation anticipates
        investing a further $13.0 million in development projects.

    -   During the quarter, sales and marketing commenced at Parkbridge's
        newest family/seniors oriented project, Fontaine Village in
        Cold Lake, Alberta. Fontaine Village is a well appointed modern
        development that will provide much needed housing to support growth
        at the local air force base and at operating oil sands facilities
        nearby. Two homes in Fontaine Village are under contract and slated
        to close early in 2009.

    -   New Home sales activity is being closely monitored and the
        Corporation is seeing continued demand for its product in all its
        principal markets. Parkbridge entered the 2009 fiscal year with a
        backlog of new Home sales (154 firm and conditional sales) that was
        considerably lower than the backlog that existed at the beginning of
        fiscal 2008 (225 firm and conditional sales). The lower level of
        sales backlog was primarily due to three factors - the sell out of
        townhouses in the highly successful Wasaga Meadows project in
        fiscal 2008, the weighting of sales in Edmonton to the latter part of
        calendar 2007 (that is, our first quarter of fiscal 2008) due to
        timing delays experienced in receiving delivery of new Home
        inventory, and lower sales volumes in the Wasaga Country Life
        project. Other than timing differences and an anticipated reduction
        in the sale of Seasonal Resort Units, sales activity in our multiple
        expansion projects remains encouraging. The seasonal nature of
        Home sales operations, with significantly more closings in the
        third and fourth quarters of each of Parkbridge's fiscal years, can
        significantly impact Homes sales margins from quarter to quarter
        given the year round obligation to pay fixed sales operating
        expenses. Margins in Home and Seasonal Resort sales for the
        first quarter of fiscal 2009 averaged $11,000 as compared to $14,000
        for the same period last year.

        The backlog of lease and home sales commitments remains solid. As at
        January 31, 2009 and subsequent to December 31, 2008, the Corporation
        completed the sale of 4 additional new homes and leased up a like
        number of Developed Sites. 118 lease and homes sales contracts were
        in hand as of January 31, 2009 (62 firm and 56 conditional contracts)
        versus 176 contracts at this time last year (134 firm and
        42 conditional contracts). Barring a dramatically worsening economic
        environment, Parkbridge continues to anticipate sales volumes for the
        2009 fiscal year ranging from 300 to 400 Homes and Seasonal Resort
        Units.

    -   During the quarter, Parkbridge completed the previously announced
        acquisition of a 102 site Community acquired at a total acquisition
        cost of $5.6 million.

    -   The Corporation's capital structure remains conservative and
        debt maturities are well spaced. Cash plus available operating
        credit facilities amounted to $15.2 million at December 31, 2008
        remaining sufficient to fund operating and development activities as
        the Corporation proceeds through the traditionally slower first and
        second quarters. Refinancing the $8.1 million of debt maturities
        coming due in the 2009 fiscal year is well under way and is expected
        to be completed by the third quarter. Although liquidity remains
        adequate, Parkbridge's primary focus in these uncertain times will be
        on internally generated growth and any commitment to new investments
        will be in the context of the capital markets prevailing at that
        time.
    

    "Over the balance of fiscal 2009, we expect to see continued growth in
income as the impact of further contributions from rent increases, operating
improvements and the lease up of Developed Sites, along with contributions
from properties acquired over the last year are realized. Results to date have
been encouraging, particularly in light of volatile economic and capital
markets", commented Mr. Iain Stewart, President, Western Operations and
Co-Chief Executive Officer.
    "As we move further into the 2009 year, we believe it will remain evident
that Parkbridge's business is well suited for tough times, as it offers
affordability and alternative choices for community and recreational living.
Nevertheless, we will exercise caution by principally focusing on our core
operations and executing our capital plan", added Mr. David Rozycki,
President, Eastern Operations & Co-Chief Executive Officer.
    For a complete discussion of the foregoing please refer to the filings of
the Corporation's December 31, 2008 unaudited interim consolidated Financial
Statements and Management's Discussion and Analysis, which have been
concurrently filed on SEDAR.

    Parkbridge Profile

    Parkbridge is one of Canada's leading owners, operators and developers of
land lease residential communities and seasonal recreational resorts. The
portfolio is concentrated in the provinces of Ontario, Alberta, Quebec and
British Columbia.
    Parkbridge now owns 76 properties containing over 16,700 sites with a
capacity to add more than 4,100 additional sites through expansion of current
property holdings.
    Parkbridge is listed on the Toronto Stock Exchange and its head office is
in Calgary, Alberta.

    
    CONSOLIDATED BALANCE SHEET

                                                   December 31  September 30
    ($000's)                                              2008          2008
                                                   ------------ -------------
                                                    (Unaudited)
    Assets
      Income properties                                389,880       381,057
      Development properties                            67,266        65,103
      Cash and cash equivalents                          3,079         9,243
      Accounts receivable                               15,331         5,914
      Inventory and other assets                        28,261        32,323
      Defeasance collateral                             10,785        10,931
                                                   ------------ -------------
                                                       514,602       504,671
                                                   ------------ -------------
                                                   ------------ -------------

    Liabilities and Shareholders' Equity
      Secured debt                                     265,845       266,454
      Bank indebtedness                                 29,740        26,683
      Accounts payable and other liabilities            14,731        20,773
      Deferred revenue                                  15,371         4,906
      Future income tax liability and deferred
       credit                                           15,398        14,889
                                                   ------------ -------------
                                                       341,085       333,705
      Shareholders' Equity                             173,517       170,866
                                                   ------------ -------------
                                                       514,602       504,571
                                                   ------------ -------------
                                                   ------------ -------------



    INTERIM STATEMENT OF INCOME AND FUNDS FROM OPERATIONS

    Unaudited ($000's)                        Three Months Ended December 31
                                                   --------------------------
                                                          2008          2007
                                                   ------------ -------------
    PROPERTY OPERATIONS
      Rental and other property revenues                16,220        13,243
      Property operating expenses and taxes             (6,494)       (5,355)
      Brokerage and resale income                           92           189
                                                   ------------ -------------
        Income from property operations                  9,818         8,077
                                                   ------------ -------------

    HOME SALES OPERATIONS
      Sales revenue                                      5,054        10,925
      Cost of sales                                     (4,274)       (9,075)
      Operating expenses                                  (429)         (810)
                                                   ------------ -------------
        Income from home sales operations                  351         1,040
                                                   ------------ -------------

    INCOME FROM OPERATIONS BEFORE THE UNDERNOTED        10,169         9,117
                                                   ------------ -------------

      Interest expense                                   3,894         3,099
      Depreciation and amortization                      1,973         1,732
      General and administrative expenses                1,280         1,180
      Stock-based compensation                             224           268
      Interest income                                     (113)         (160)
                                                   ------------ -------------
                                                         7,258         6,119
                                                   ------------ -------------
    INCOME BEFORE INCOME TAXES                           2,911         2,998

    Income taxes, net of deferred credit                   507           499
                                                   ------------ -------------
    NET INCOME                                           2,404         2,499

    Add:   Depreciation and amortization                 1,973         1,732
           Stock-based compensation                        224           268
           Future income taxes, net of
            deferred credit                                507           499
                                                   ------------ -------------
    FUNDS FROM OPERATIONS                                5,108         4,998
                                                   ------------ -------------
                                                   ------------ -------------

    The TSX has not in any way passed upon the merits of these transactions,
    has not approved or disapproved the contents of this news release, nor
    does it accept any responsibility for the adequacy of this release.
    

    This news release contains forward-looking statements concerning the
Corporation's business and operations. The Corporation cautions that, by their
nature, forward-looking statements involve risk and uncertainty and the
Corporation's results could differ materially from those expressed or implied
in such statements. Reference should be made to the Corporation's December 31,
2008 Unaudited Interim Consolidated Financial Statements, the most recent
Management's Discussion and Analysis in the interim report for the period
ended December 31, 2008, the Annual Information Form dated December 10, 2008,
and the Management's Discussion and Analysis and Audited Consolidated
Financial Statements for the year ended September 30, 2008. All reports may be
viewed on Parkbridge's website www.parkbridge.ca or on the SEDAR website
www.sedar.com.





For further information:

For further information: Mr. Iain Stewart, President, Western Operations
and Co-CEO, Telephone: (403) 215-2109, Email: istewart@parkbridge.com; Mr.
Calvin Wilson, Chief Financial Officer, Telephone: (403) 215-2105, Email:
cwilson@parkbridge.com; Parkbridge Lifestyle Communities Inc., Telephone:
(403) 215-2100, Facsimile: (403) 215-2115, 700, 505 - 3rd Street SW, Calgary,
AB, T2P 3E6

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PARKBRIDGE LIFESTYLE COMMUNITIES INC.

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