Parkbridge announces third quarter results



    
    Funds from operations up 31% for the third quarter over same period
    2007

    -------------------------------------------------------------------------
    Unaudited                        Three months                Nine months
    ($000's, except                 ended June 30              ended June 30
    per share amounts)              2008     2007              2008     2007
    ---------------------------  -------- --------          -------- --------
    Total revenues                38,650   33,931            87,220   72,084
    Income from operations        12,017    9,345            30,355   24,222
    Funds from operations
     (FFO)(1)                      7,307    5,560            16,885   14,201
    FFO per share - diluted         0.11     0.09              0.26     0.22
    Net income                     4,245    3,270            11,002    7,910
    Net income per share -
     diluted                        0.07     0.05              0.17     0.12
    -------------------------------------------------------------------------

    (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, Aug. 11 /CNW/ - Parkbridge Lifestyle Communities Inc.
("Parkbridge" or the "Corporation"), (TSX: PRK) today announced the results
for its third quarter ended June 30, 2008.
    Income from operations rose 29% to $12.0 million for the three months
ended June 30, 2008 as compared to $9.3 million for the comparable period in
2007 (a 25% increase for the nine months ended June 30, 2008 to $30.4 million
when compared to the $24.2 million for the nine months ended June 30, 2007).
The improved operating results were generated by a good mix of internal growth
and contributions from recently acquired properties.
    Funds from operations of $7.3 million ($0.11 per share) for the three
months ended June 30, 2008 was 31% higher than the $5.6 million ($0.09 per
share) achieved during the same three month period a year earlier (a 19%
increase to $16.9 million for the nine months ended June 30, 2008 when
compared to the $14.2 million for the nine months ended June 30, 2007).
    Net income for the three months ended June 30, 2008 increased to 
$4.2 million ($0.07 per share) as compared to $3.3 million ($0.05 per share)
for the same period a year earlier ($11.0 million ($0.17 per share) for the
nine months ended June 30, 2008 compared to $7.9 million ($0.12 per share) for
the nine months ended June 30, 2007).

    Highlights

    
    -   Parkbridge's core business - the leasing of operational sites - is
        performing exceptionally well. Resident turnover at both communities
        and seasonal resorts is lower than normal. We believe this reflects
        both the affordability of our product and higher fuel costs curbing
        vacationers desire to travel. All of our residential communities
        continued to enjoy high occupancy levels (98%).

    -   Although severe winter weather and contractor availability delayed
        the completion of new sites at a number of our development projects,
        181 developed sites were completed during this quarter. Our inventory
        of developed sites on hand and available for lease now stands at 805
        sites, roughly two years supply based on the current pace of lease-
        up. $5.6 million of capital was invested in the third quarter in our
        expansion programs, bringing the total expansion capital invested
        year to date for fiscal 2008 to $17.0 million.

    -   During this quarter, the sales program at the recently redeveloped
        Melody Bay Resort was launched. Melody Bay has been converted into
        one of Ontario's premier Seasonal Resorts, with pre-existing sites
        being enlarged to accommodate 142 new resort cottages, and amenities
        such as new docks, pools and playgrounds being added. Through the
        repositioning of this project, seasonal site rental rates have been
        increased on average by 104% to $3,900 per season.

    -   New Home sales and leasing activity within our 19 expansion and
        development projects continues at a strong pace, with 107 developed
        sites leased and 110 new Homes and Seasonal Resort Units sold in the
        three months ended June 30, 2008. Sales of new Homes contributed
        $2.4 million to income in the quarter, an increase of 82% from the
        $1.3 million earned in the same period a year earlier. Sales volumes
        for fiscal 2008 are projected to be at the lower end of our
        previously projected range of 400 to 500 sales. Some slowdown in
        sales is noticeable in markets affected by the downturn in
        manufacturing, such as in our Huron Village Green project near
        London, Ontario. However, the lower volumes appear to have more to do
        with inclement weather in late winter and some delay in the timing of
        bringing new phases on stream in some of our projects than to local
        economic conditions. Overall, sales remain strong in Alberta, and in
        most regions of Ontario, particularly the Sarnia and Wasaga
        Beach/Georgian Bay areas. The higher margins achieved during the nine
        months ended June 30, 2008 ($19,400) compared to the same period in
        2007 ($14,700) are expected to continue through the end of fiscal
        2008 with the result that sales income for fiscal 2008 is projected
        to surpass last year's levels.

        The backlog of lease and home sales commitments remains strong,
        although, somewhat lower than this time last year. At July 31, 2008
        and subsequent to June 30, 2008, the Corporation completed the sale
        of 49 additional new homes and leased up a like number of developed
        sites. In addition, 129 lease and homes sales contracts were in hand
        as of July 31, 2008 (88 firm and 41 conditional contracts).

    -   During this quarter, Parkbridge completed five previously announced
        acquisitions. Two Communities (419 sites with an estimated capacity
        of an additional 236 expansion sites), two Seasonal Resorts (649
        sites with an estimated capacity of an additional 59 expansion sites)
        and one parcel of development land (an estimated capacity of 80
        expansion sites) were acquired at a total acquisition cost of
        $31.2 million. During the first nine months of fiscal 2008 Parkbridge
        acquired eight operating properties and two parcels of development
        land (2,007 sites with estimated capacity to add 653 expansion sites)
        for a total acquisition cost of $57.5 million.

    Subsequent Events

    -   The Corporation has entered into a purchase and sale agreement
        related to the acquisition, subsequent to June 30, 2008, of one
        Seasonal Resort (636 sites with an estimated expansion capacity of an
        additional 250 expansion sites) for a cost of approximately
        $5.0 million.
    

    "Parkbridge's performance is expected to remain strong for the balance of
our 2008 fiscal year." commented Mr. David Rozycki, President Eastern
Operations and Co-Chief Executive Officer. "Looking into 2009 and beyond, we
remain confident that our business - the leasing of operational sites - will
show continued strength even in the context of a slowing economy. We also
remain optimistic about the outlook for new home sales and leasing activity in
most of the markets in which we operate."
    "Parkbridge owns many of the best land lease properties to be found
anywhere in Canada and the dominance and scale we enjoy in our core markets -
Edmonton and Northern Alberta, Wasaga Beach, the Kawarthas and Southwestern
Ontario - creates a solid underpinning for years to come." stated Mr. Iain
Stewart, President, Western Operations and Co-Chief Executive Officer. "When
combined with our pipeline of more than 4,300 expansion sites, Parkbridge's
prospects for future growth remain excellent."
    For a complete discussion of the foregoing please refer to the filings of
the Corporation's June 30, 2008 unaudited interim consolidated financial
statements and Management's Discussion and Analysis, which have been
concurrently filed on SEDAR.

    Senior Management

    Recently, certain senior management changes have taken place which we
wish to announce at this time. Glenn McCowan, Vice President, Finance and
Chief Financial Officer ("CFO") has decided to pursue other endeavors and will
leave Parkbridge effective September 30, 2008. Since joining Parkbridge in
late 2004, Glenn has worked tirelessly to help facilitate the extensive
changes and growth that Parkbridge has experienced in the last three and a
half years. We would like to take this opportunity to extend our sincerest
gratitude to Glenn for his numerous contributions.
    Calvin Wilson, our Corporate Controller, who joined Parkbridge in 
May 2007, will assume the role of Vice President, Finance and CFO, effective
August 9, 2008. Cal has extensive financial experience gained through his past
employment with Ernst & Young and in the consulting practice he ran for
several years. Since joining Parkbridge, he has been instrumental in improving
financial reporting and internal control systems. We look forward to
benefiting from Cal's ongoing contributions and leadership in his new role. To
assist in the transition, Glenn will be staying with Parkbridge until
September 30, 2008 after which he will remain available in an advisory
capacity.

    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 now owns 74 properties containing over 16,200 sites with a
capacity to add more than 4,300 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 INTERIM BALANCE SHEET

    ($000's)                                           June 30  September 30
    --------                                              2008          2007
                                                  ------------- -------------
                                                    (Unaudited)
    Assets
      Income properties                                372,917       316,652
      Properties under and held for development         61,014        42,385
      Cash and cash equivalents                          2,373         3,763
      Accounts receivable                                4,973         3,255
      Inventory and other assets                        38,078        37,148
      Defeasance collateral                             11,062        11,511
                                                  ------------- -------------
                                                       490,417       414,714
                                                  ------------- -------------
                                                  ------------- -------------
    Liabilities and Shareholders' Equity
      Secured debt                                     265,779       217,446
      Bank indebtedness                                 18,909         9,831
      Accounts payable and other liabilities            26,951        22,156
      Future income tax liability and deferred credit   13,509        12,117
                                                  ------------- -------------
                                                       325,148       261,550
      Shareholders' Equity                             165,269       153,164
                                                  ------------- -------------
                                                       490,417       414,714
                                                  ------------- -------------
                                                  ------------- -------------



    CONSOLIDATED INTERIM STATEMENT OF INCOME AND FUNDS FROM OPERATIONS

                                    Three Months Ended     Nine Months Ended
                                           June 30               June 30
                                   --------------------   -------------------
                                       2008       2007       2008       2007
                                   --------------------   -------------------
    PROPERTY OPERATIONS
      Rental and other property
       revenues                      17,624     14,393     44,267     35,741
      Property operating
       expenses and taxes            (8,451)    (6,869)   (19,215)   (15,357)
      Brokerage and resale income       479        520        827        673
                                   ---------   --------   --------   --------
        Income from property
         operations                   9,652      8,044     25,879     21,057
                                   ---------   --------   --------   --------

    HOME SALES OPERATIONS
      Sales revenue                  15,925     15,153     34,657     30,058
      Cost of sales                 (12,773)   (13,136)   (28,057)   (25,201)
      Operating expenses               (787)      (716)    (2,124)    (1,692)
                                   ---------   --------   --------   --------
        Income from sales
         operations                   2,365      1,301      4,476      3,165
                                   ---------   --------   --------   --------

    INCOME FROM OPERATIONS BEFORE
      THE UNDERNOTED                 12,017      9,345     30,355     24,222
                                   ---------   --------   --------   --------

    OTHER EXPENSES
      Interest expense                3,643      3,040     10,232      7,520
      Depreciation and amortization   1,987      1,650      5,479      4,302
      General and administrative
       expenses                       1,175      1,156      3,618      3,216
      Stock-based compensation          238        267        738      1,125
      Interest income                  (108)      (144)      (380)      (387)
    Gain on derivative instruments        -       (267)         -       (328)
                                   ---------   --------   --------   --------
                                      6,935      5,702     19,687     15,448
                                   ---------   --------   --------   --------
    INCOME BEFORE INCOME TAXES        5,082      3,643     10,668      8,774
                                   ---------   --------   --------   --------
      Income taxes (recovery),
       net of deferred credit           837        373       (334)       864
                                   ---------   --------   --------   --------
    NET INCOME                        4,245      3,270     11,002      7,910

      Add:
      Depreciation and amortization   1,987      1,650      5,479      4,302
      Stock-based compensation          238        267        738      1,125
      Future income taxes, net
       of deferred credit               837        373       (334)       864
                                   ---------   --------   --------   --------
    FUNDS FROM OPERATIONS             7,307      5,560     16,885     14,201
                                   ---------   --------   --------   --------
                                   ---------   --------   --------   --------

    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 June 30,
2008, 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.
Calvin Wilson, Corporate Controller, Telephone: (403) 215-2105, Email:
calvin_w@telus.net; 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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