Parkbridge announces first quarter results

CALGARY, Feb. 4 /CNW/ - Parkbridge Lifestyle Communities Inc. ("Parkbridge" or the "Corporation"), (TSX: PRK) today announced its results for the three months ended December 31, 2009.

    Financial Highlights
    ($000's except per share amounts)

                                                   December 31  September 30
    Balance Sheet Data                                    2009          2009
    Income properties                                  421,230       400,120
    Development properties                              67,354        67,559
                                                  ------------- -------------
                                                       488,584       467,679

    Secured debt                                       287,555       279,495

    Number of shares issued and outstanding (000's)     66,899        66,769

                                              Three Months Ended December 31
    Income Summary Data                                   2009          2008
    Total revenues from all operations                  26,346        22,701
    Income from property operations                     10,497         9,818
    Home Sales income                                      680           351
    Income from operations                              11,117        10,169

    Net income                                           3,549         2,404
    Net income per share - diluted(1)                     0.05          0.04

    Funds from operations (FFO)(2)                       5,624         5,108
    FFO per share - diluted(1)                            0.08          0.08

    Weighted average no. of shares - diluted (000's)(1) 67,754        61,769

                                              Three Months Ended December 31
    Operational Highlights                                2009          2008
    Occupancy %
      Communities                                           99            99
      Resorts(3)                                            95            92

    Sites leased                                            50            33
    Home Sales volume                                       50            32
    Home Sales backlog(4) - end of period                  127           122

    Operational Sites - end of period                   17,101        15,816
    Developed Sites - end of period                        829           898
    Expansion Sites - end of period                      4,645         4,100
    (1) The weighted average number of shares issued and outstanding
        calculation utilizes the average trading price of the Corporation's
        shares during the period evaluated. During the three months ended
        December 31, 2008, the exercise price pertaining to the majority of
        outstanding stock option grants was above the average trading price
        of the Corporation's shares. Accordingly, the impact of "in the
        money" stock options on the dilution calculation was nominal. As a
        result, the number of weighted average common shares outstanding, for
        basic and diluted calculations, is identical for that period. For the
        three months ended December 31, 2009, a portion of the Corporation's
        stock options were "in the money", thereby resulting in a difference
        between the basic and diluted calculation.
    (2) 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. Users should be
        cautioned that this performance measure should not be construed as an
        alternative to net income and differs from the Real Property
        Association of Canada's definition of FFO. 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.
    (3) The percentage occupancy for Cottage and RV Resorts represents the
        average annual occupancy level of seasonal Sites and overnight Sites
        within a particular Resort. In general, overnight Sites comprise 10%
        or less of the total Sites within a particular Resort. Typically, the
        average occupancy achievable in respect of overnight Sites is 45 to
        75 days out of the total of the approximately 120 days the Resort is
        open in a given season. Consequently, the total occupancy level for a
        particular Resort property will generally be less than 100%.
    (4) Includes 81 firm and 46 conditional sales contracts at January 31,
        2010 compared to 66 firm and 56 conditional sales contracts at
        January 31, 2009.

Income from property operations rose 7% to $10.5 million for the three months ended December 31, 2009 as compared to $9.8 million for the comparable period in 2008. The majority of this increase (approximately 75%) was generated internally and reflects contributions from rent increases, the lease-up of Developed Sites and operational improvements. The remainder of the increase was attributable to properties acquired within the current and prior fiscal years. Parkbridge continues to enjoy virtually full occupancy in its Communities and Resorts and, during the recent quarter, has been successful in implementing a 4% average rent increase across its portfolio.

Income from Home Sales operations increased 94% to $0.7 million in the first quarter as compared to $0.4 million generated in the same quarter last year (quarterly Home Sales volumes increased 61% to 50 sales compared to 31 sales in the prior year). This improvement, when combined with the increase in the backlog of firm lease and Home Sales commitments (further discussed below), is encouraging and is broadly seen across most projects. Prospective homebuyers appear to be showing renewed confidence, and there is increasing awareness of the quality of the Parkbridge brand and the benefits of owning a Home or Resort Unit within one of Parkbridge's well managed properties.

Funds from operations ("FFO") for the three months ended December 31, 2009 rose 10% to $5.6 million as compared to the $5.1 million achieved during the same three month period a year earlier. FFO growth was negatively impacted by a $0.4 million increase in general and administrative expense pertaining to "marking to market" the Corporation's outstanding deferred share units. FFO per share amounted to $0.08 per share for the first quarter and remained flat when compared with the comparable period last year. The per share results reflect the dilutive effects of the equity issue completed on September 30, 2009 which increased the Corporation's issued and outstanding shares by 8%.


    -   Occupancy levels across the portfolio remained high at 99% for
        Communities and 95% for Resorts.
    -   Fiscal 2010 rent increases averaging 4% have been implemented across
        the portfolio.
    -   During the current quarter $3.6 million was invested in the 18
        projects under active development. The phased build out of
        development projects resulted in the completion of 49 new Developed
        Sites in the quarter. For the remainder of the 2010 fiscal year,
        Parkbridge anticipates investing a further $15.0 million in
        development projects.
    -   New Home Sales and the lease up of Developed Sites showed
        improvements in the first quarter of fiscal 2010, with 50 new Homes
        sold and 50 Developed Sites leased, including a healthy backlog of
        firm lease and Home Sales commitments. As of January 31, 2010, 127
        lease and Home Sales contracts were in hand (81 firm and 46
        conditional contracts).
    -   During the quarter, the first 7 Home Sales closed at the
        Corporation's newest community Country Meadows in Wasaga Beach,
        Ontario. Country Meadows will be a 168 site retirement townhouse
        community. The single level, 1,200 square foot, townhomes are geared
        for carefree living and targeted to the 65 to 70 year old
        demographic. Sales activity for this project continues to be strong,
        and an additional 26 lease and Home Sales contracts were in hand as
        of January 31, 2010.
    -   During the quarter, three operating properties were acquired (1,200
        Operational and Developed Sites and 418 Expansion Sites) at an
        aggregate purchase price of $16.8 million. Included is the
        acquisition of Parkbridge's first Resort property in Alberta, Leisure
        RV Resort, a 272 site property on Pine Lake, close to Red Deer. Also
        completed were the acquisition of our third Resort in Quebec, Camping
        Domaine de la Chute, a 674 site Resort close to Quebec City, and
        Bellwood, a 254 site All Age Community in Ottawa.
    -   The Corporation's capital structure remains conservative and debt
        maturities are well spaced out. The majority of fiscal 2010 debt
        maturities amounting to $5.7 million have been renewed or refinanced.
        As of December 31, 2009, Parkbridge had cash and cash equivalents of
        $6.5 million on hand, $26.0 million available under the Operating
        Facility (net of letter of credit drawings), and $25.0 million
        available under the Acquisition Facility.
    -   Parkbridge continues to examine initiatives which may help surface
        additional value for shareholders. These initiatives include
        continuing efforts to secure CMHC-backed financing, and alternative
        structures that will more appropriately recognize the risk-adjusted
        value embedded in the Corporation's assets.


The principal elements of Parkbridge's fiscal 2010 outlook, which refer to growth from three sources, remains unchanged: (i) projected rent increases averaging 4% have been implemented across most properties, (ii) the Corporation continues to see signs of economic improvement and is maintaining its estimate of the lease-up of Developed Sites and new Home Sales in the range of 300 units, and (iii) the Corporation continues to actively pursue select and accretive acquisitions in addition to those recently completed.

Parkbridge is pleased to see a continuation of the positive trends which began to take hold in the latter part of its 2009 fiscal year. "Parkbridge's core business, the rental of Community and Resort Sites, continues to provide stable, predictable income growth, and our Home Sales operations results are showing early signs of recovery, with improvements in sales volumes and income and a healthy backlog of firm sales" commented Mr. Iain Stewart, President, Western Operations and Co-Chief Executive Officer.

For a complete discussion of the foregoing please refer to the Corporation's December 31, 2009 unaudited interim consolidated financial statements and Management's Discussion and Analysis, both of 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 80 properties containing approximately 17,900 sites with a capacity to add more than 4,600 additional sites through expansion of current property holdings.

Parkbridge is listed on the Toronto Stock Exchange and its head office is in Calgary, Alberta.

                                                   December 31  September 30
    ($000's)                                              2009          2009
                                                  ------------- -------------

      Income properties                                421,230       400,120
      Development properties                            67,354        67,559
      Cash and cash equivalents                          6,514        15,628
      Accounts receivable                               14,596         5,176
      Inventory and other assets                        24,430        24,298
      Defeasance collateral                             10,217        10,361
                                                  ------------- -------------
                                                       544,341       523,142
                                                  ------------- -------------
                                                  ------------- -------------
    Liabilities and Shareholders' Equity
      Secured debt                                     287,555       279,495
      Accounts payable and other liabilities            31,580        23,463
      Future income tax liability and deferred credit   17,673        16,747
                                                  ------------- -------------
                                                       336,808       319,705
      Shareholders' Equity                             207,533       203,437
                                                  ------------- -------------
                                                       544,341       523,142
                                                  ------------- -------------
                                                  ------------- -------------

                                              Three Months Ended December 31
    ($000's)                                              2009          2008
                                                  ------------- -------------
      Rental and other property revenues                17,458        16,220
      Property operating expenses and taxes             (7,031)       (6,494)
      Brokerage and resale income (net)                     70            92
                                                  ------------- -------------
                                                        10,497         9,818
                                                  ------------- -------------

      Sales revenue                                      8,041         5,054
      Cost of sales                                     (7,047)       (4,274)
      Operating expenses                                  (314)         (429)
                                                  ------------- -------------
                                                           680           351
                                                  ------------- -------------

                                                  ------------- -------------

      Interest expense                                   4,128         3,894
      Depreciation and amortization                      2,341         1,973
      General and administrative expenses                1,519         1,280
      Stock-based compensation                             173           224
      Interest income                                      (94)         (113)
                                                  ------------- -------------
                                                         8,067         7,258
                                                  ------------- -------------
    INCOME BEFORE INCOME TAXES                           3,110         2,911

    Provision for (recovery of) future income
     taxes, net of deferred credit                        (439)          507
                                                  ------------- -------------
    NET INCOME                                           3,549         2,404

    Add (Deduct):
      Depreciation and amortization                      2,341         1,973
      Stock based compensation                             173           224
      Future income taxes, net of deferred credit         (439)          507
    FUNDS FROM OPERATIONS                                5,624         5,108
                                                  ------------- -------------
                                                  ------------- -------------

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, 2009 Unaudited Interim Consolidated Financial Statements, the most recent Management's Discussion and Analysis in the interim report for the period ended December 31, 2009, the Annual Information Form dated November 19, 2009, and Management's Discussion and Analysis and Audited Consolidated Financial Statements for the year ended September 30, 2009. All reports may be viewed on Parkbridge's website or on the SEDAR website


For further information: For further information: Mr. Iain Stewart, President, Western Operations and Co-CEO, Telephone: (403) 215-2109, Email:; Mr. Calvin Wilson, Chief Financial Officer, Telephone: (403) 215-2105, Email:; 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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