Parkbridge announces first quarter results



    
    -------------------------------------------------------------------------
    Unaudited                                  Three Months ended December 31
    ($000's, except per share amounts)                    2007          2006
    -----------------------------------           ------------- -------------

    Total revenues                                      25,865        18,926
    Income from operations                               9,117         7,129
    Funds from operations (FFO)(1)                       4,998         4,306
    FFO per share - diluted                               0.08          0.07
    Net income                                           2,499         2,374
    Net income per share - 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. 7 /CNW/ - Parkbridge Lifestyle Communities Inc.
("Parkbridge" or the "Corporation"), (TSX: PRK and PRK.A) today announced the
results for its first quarter ended December 31, 2007.
    Parkbridge is pleased to report that its first quarter of fiscal 2008 saw
a continuation of the strong performance experienced last year across its
operating properties. In addition, the Corporation continued to enhance its
portfolio through the build-out of its expansion projects, the lease-up of
developed sites and acquisitions. Through these measures, and including
properties under contract, Parkbridge's portfolio has grown to 69 properties
containing 15,213 sites with the capacity to add more than 4,300 sites through
expansion of current property holdings.
    Income from operations rose 28% to $9.1 million for the three months
ended December 31, 2007, as compared to $7.1 million for the comparable period
in 2006. This increase reflected the strong contributions generated internally
from rent increases, the lease up of Developed Sites and from operational
improvements and from properties acquired during the last fiscal year.
    Funds from operations increased 16% to $5.0 million ($0.08 per share,
diluted) for the three months ended December 31, 2007 as compared to
$4.3 million ($0.07 per share, diluted) for the same three month period a year
earlier. Net income for the three months ended December 31, 2007 rose 5.3% to
$2.5 million ($0.04 per share, diluted) as compared to $2.4 million ($0.04 per
share, diluted) for the same period a year earlier.

    
    Highlights

    -  All of the Corporation's residential communities continued to enjoy
       high occupancy levels and as of January 31, 2008, over 90% of
       Parkbridge's seasonal resort residents had renewed for the 2008
       season.

    -  The 2008 rent increases for the Corporation's communities and resorts
       have been implemented. Overall, the portfolio is expected to see an
       average annual rent increase of over 5% in 2008.

    -  Parkbridge's expansion program continued to grow with $6.4 million
       invested during the first quarter of fiscal 2008 in the 19 projects
       under active development. The phased build out of the Corporation's
       development projects resulted in the completion of 44 new Developed
       Sites during the quarter. Parkbridge's inventory of Developed Sites on
       hand and available for lease at December 31, 2007 stands at 626 Sites.
       The strong demand for affordable housing in Alberta and retirement
       choices in Ontario is providing new development opportunities which
       complement the Corporation's current expansion projects.

    -  New home sales and the lease up of developed sites showed continued
       strength in the first quarter of fiscal 2008, with 70 Developed Sites
       leased and 73 new homes sold. Sales of new homes contributed
       $1.0 million to income in the quarter, up from $0.8 in the same period
       a year earlier. The backlog of lease and home sales commitments
       remains strong. As at January 31, 2008 and subsequent to December 31,
       2007, the Corporation completed the sale of 10 additional new homes
       and leased up a like number of Developed Sites. In addition, 176 lease
       and homes sales contracts were in hand as of January 31, 2008
       (134 firm and 42 conditional contracts).

    -  Sales and marketing has commenced at Parkbridge's newest project, The
       Village at Bay Moorings (the "Village"). The first town home is under
       contract for $345,000 which is a record price for Parkbridge's land
       lease projects and some indication of the market support that is
       available for well conceived projects. The Village is a 120 site "Cape
       Cod" style land lease community located in Penetanguishene, Ontario
       and is designed to allow the 58 luxury town homes and 62 single family
       homes to take advantage of the dramatic vistas of Penetanguishene Bay.
       The quality and location of the project and its amenities illustrates
       the progress Parkbridge is making in bringing to the market a new
       generation of land lease communities.

    -  During the quarter, three operating properties (two Seasonal Resorts
       containing 595 Sites and one Marina containing 102 Sites) were
       acquired at an aggregate purchase price of $13.0 million.

    -  Property financings totaling $25.5 million were finalized during the
       quarter, with a weighted average interest rate of 6.36% and average
       terms to maturity of 7 years. Proceeds were used to retire
       $2.5 million of existing debt, with the balance used to repay amounts
       drawn under the Corporation's acquisition and operating facilities.

    Subsequent Events

    -  Subsequent to December 31, 2007, the Corporation entered into purchase
       and sale agreements related to the acquisition of two Resorts
       (546 Sites with expansion capacity of an additional 200 Expansion
       Sites), and one parcel of development land, adjacent to a Community
       already owned by the Corporation, (expansion capacity of an additional
       128 Expansion Sites) for a total cost of approximately $16.7 million.
       One of the Resort acquisitions (242 Sites and 200 Expansion Sites) was
       completed in January 2008 while the remaining acquisitions are
       expected to be completed by April of 2008.

    -  Subsequent to December 31, 2007 the Corporation renewed, and increased
       the availability under, its bank facilities. The facilities have been
       renewed with terms similar to the previous facilities except that the
       Operating Facility has been increased up from $24 million to
       $35 million and the Acquisition Facility has been increased from
       $30 million to $40 million.
    

    "Looking ahead, over the balance of 2008, we expect to see continued
growth as the impact of further contributions from rent increases, operating
improvements, the lease up of Developed Sites along with earnings from
properties acquired over the last year, are realized. Results to date have
been encouraging and are in line with the growth targets set out in our 2007
Annual Report", commented Mr. Iain Stewart, President, Western Operations and
Co-Chief Executive Officer.
    "We will also continue to seek out additional investment opportunities in
our core markets and other regions, focusing on well located properties
underpinned by strong fundamentals and capable of delivering superior
investment returns over the long term", added Mr. David Rozycki, President,
Eastern Operations & Co-Chief Executive Officer.
    On behalf of Parkbridge's entire Board of Directors and management team,
we would like to take this opportunity to extend our deepest sympathies to the
family of John Ratzke Sr. who sadly passed away on January 24 of this year,
after a battle with cancer. John's counsel and advice was instrumental in
Parkbridge's formative years and his contributions will always be remembered
and appreciated.
    For a complete discussion of the foregoing please refer to the filings of
the Corporation's December 31, 2007 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 British Columbia, Alberta,
Ontario and Quebec.
    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)                                              2007          2007
                                                  ------------- -------------
                                                    (Unaudited)
    Assets
      Real estate assets                               378,208       359,037
      Cash and cash equivalents                          2,636         3,763
      Defeasance collateral                             11,363        11,511
      Inventory and other assets                        49,580        40,403
                                                  ------------- -------------
                                                       441,787       414,714
                                                  ------------- -------------
                                                  ------------- -------------

    Liabilities and Shareholders' Equity
      Secured debt                                     243,040       217,446
      Bank indebtedness                                  4,983         9,831
      Accounts payable and other liabilities            24,722        22,156
      Future income tax liability
       and deferred credit                              13,154        12,117
                                                  ------------- -------------
                                                       285,899       261,550
      Shareholders' Equity                             155,888       153,164
                                                  ------------- -------------
                                                       441,787       414,714
                                                  ------------- -------------
                                                  ------------- -------------

    INTERIM STATEMENT OF INCOME AND FUNDS FROM
     OPERATIONS

    Unaudited                                      December 31,  December 31,
    ($000's)                                              2007          2006
                                                  ------------- -------------
    PROPERTY OPERATIONS
      Rental and other property revenues                13,243        10,440
      Property operating expenses and taxes             (5,355)       (4,271)
      Brokerage and resale income                          189           114
                                                  ------------- -------------
        Income from property operations                  8,077         6,283
                                                  ------------- -------------

    SALES OPERATIONS
      Sales revenue                                     10,925         7,768
      Cost of sales                                     (9,075)       (6,399)
      Operating expenses                                  (810)         (523)
                                                  ------------- -------------
        Income from home sales operations                1,040           846
                                                  ------------- -------------

    INCOME FROM OPERATIONS BEFORE THE UNDERNOTED         9,117         7,129
                                                  ------------- -------------

      Interest expense                                   3,099         1,997
      Depreciation and amortization                      1,732         1,239
      General and administrative expenses                1,180           952
      Stock-based compensation                             268           584
      Interest income                                     (160)         (126)
                                                  ------------- -------------
                                                         6,119         4,646
                                                  ------------- -------------
    INCOME BEFORE INCOME TAXES                           2,998         2,483

    Income taxes, net of deferred credit                   499           109
                                                  ------------- -------------
    NET INCOME                                           2,499         2,374

    Add:  Depreciation and amortization                  1,732         1,239
          Stock based compensation                         268           584
          Future income taxes,
           net of deferred credit                          499           109
                                                  ------------- -------------
    FUNDS FROM OPERATIONS                                4,998         4,306
                                                  ------------- -------------
                                                  ------------- -------------
    

    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 most recent Management's
Discussion and Analysis in the interim report for the period ended December
31, 2007, the Annual Information Form dated December 5, 2007 and the
Management's Discussion and Analysis and audited consolidated financial
statements for the year ended September 30, 2007. All reports may be viewed at
www.sedar.com.





For further information:

For further information: Mr. Iain Stewart, President, Western Operations
and Co-CEO, Telephone: (403) 215-2109, Email: istewart@telusplanet.net; Mr.
Glenn McCowan, Chief Financial Officer, Telephone:  (403) 215-2175, Email:
gmccowan@telus.net; Parkbridge Lifestyle Communities Inc., Telephone: (403)
215-2100, Facsimile: (403) 215-2115, 700, 505 - 3rd Street SW, Calgary, AB,
T2P 3E6

Organization Profile

PARKBRIDGE LIFESTYLE COMMUNITIES INC.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890