Parkbridge announces third quarter results



    
    Financial Highlights

    -------------------------------------------------------------------------
    Unaudited                         Three months               Nine months
    ($000's, except per              ended June 30             ended June 30
     share amounts)              2007         2006         2007         2006
    ----------------------------------    ---------    ---------    ---------

    Total revenues             30,066       23,404       66,472       45,089
    Income from operations      9,345        7,061       24,222       16,773
    Funds from operations
     (FFO)(1)                   5,560        4,266       14,201        9,248
    FFO per share - diluted      0.09         0.08         0.22         0.17
    Net income                  3,270        2,288        7,910        2,089
    Net income per share
     - diluted                   0.05         0.03         0.12         0.03
    -------------------------------------------------------------------------
    (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. 8 /CNW/ - Parkbridge Lifestyle Communities Inc.
("Parkbridge" or the "Corporation"), (TSX: PRK and PRK.A) today announced the
results for its third quarter ended June 30, 2007.
    Income from operations rose 32% to $9.3 million for the three months
ended June 30, 2007 as compared to $7.1 million for the comparable period in
2006 (a 44% increase for the nine months ended June 30, 2007 to $24.2 million
when compared to the $16.8 million for the nine months ended June 30, 2006).
Strong growth was generated internally from operations and the lease up of
newly developed sites as well as from properties acquired over the last year.
    Funds from operations increased 30% to $5.6 million ($0.09 per share) for
the three months ended June 30, 2007 as compared to $4.3 million ($0.08 per
share) during the same three month period a year earlier (a 54% increase to
$14.2 million for the nine months ended June 30, 2007 when compared to the
$9.2 million for the nine months ended June 30, 2006).
    Net income for the three months ended June 30, 2007 rose 43% to
$3.3 million ($0.05 per share) as compared to $2.3 million ($0.03 per share)
for the same period a year earlier ($7.9 million for the nine months ended
June 30, 2007 compared to $2.1 million for the nine months ended June 30,
2006).

    
    Highlights

    -   All of the Corporation's residential communities continued to enjoy
        high occupancy levels and the complement of seasonal residents at all
        of Parkbridge's resorts and marinas has increased from last year.

    -   87 developed sites were completed during the quarter and the
        Corporation's inventory of developed sites on hand and available for
        lease now stands at 766 sites. $4.8 million of capital was invested,
        in the third quarter, in Parkbridge's expansion program, bringing the
        total invested to date for fiscal 2007 to $11.6 million.

    -   During the quarter, the redevelopment of the 180 site Melody Bay
        Resort was effectively launched and details of the Corporation's
        plans were communicated to existing residents. Plans call for
        existing sites to be enlarged in order to accommodate new resort
        cottages and amenities such as new docks, pools and playgrounds are
        being added. Construction will commence this fall with leasing, sales
        and marketing to follow next spring. Melody Bay enjoys a premier
        waterfront location and upon completion will be one of the top
        seasonal resorts in Ontario.

    -   New home sales and leasing activity continues at a strong pace within
        Parkbridge's 17 expansion projects. During the quarter, 111 developed
        sites were leased and a like number of new home sales were completed
        (212 in the nine months ended June 30, 2007). The backlog of lease
        and home sales commitments remains at historically high levels. As at
        July 31, 2007, and subsequent to June 30, 2007, the Corporation
        completed the sale of 37 additional new homes and seasonal resort
        units and leased up a concurrent number of developed sites. In
        addition, Parkbridge has 222 lease and home sales contracts in hand
        as of July 31, 2007 (168 firm and 54 conditional contracts), 109 of
        these contracts are scheduled to close this fiscal year.

    -   During the quarter, Parkbridge completed the three acquisitions
        previously announced. These acquisitions consisted of two properties
        containing 501 sites and 110 expansion sites and a 1/3 co-ownership
        interest in 271 acres of land in Alberta's Industrial Heartland,
        10 miles northeast of Edmonton, for an aggregate purchase price of
        $11.6 million. A 375 site family/seniors community and a 200 acre
        residential subdivision are planned for the development site.

    -   A $42.2 million first mortgage financing on two Alberta properties
        was finalized during the quarter. The interest rate has been fixed at
        5.965% for the ten year term of the mortgage. The financing generated
        net proceeds of $28.2 million after transaction costs, repayment of
        existing debt ($8.1 million) and setting aside a holdback of
        $5.5 million to be released upon achieving certain cash flow targets
        for the properties, which targets are expected to be met within a
        twelve month time frame from funding the loan. The proceeds,
        generated from this financing and the financing described below, have
        been used to repay borrowings under Parkbridge's $54 million of
        authorized lines of credit, effectively reducing the amount utilized
        on these lines to $12.9 million.

        Subsequent Events

    -   Subsequent to June 30, 2007, Parkbridge entered into purchase and
        sale agreements to complete the acquisition of two properties
        totaling 247 sites for an aggregate purchase price of $7.2 million.
        The acquisitions consist of one community (52 sites) and one resort
        (195 sites).

    -   Subsequent to June 30, 2007, Parkbridge arranged ten year term
        financing of $6.5 million on one of the properties acquired during
        the nine months ended June 30, 2007. The interest rate has been fixed
        at 6.11% and the mortgage is expected to fund in August of 2007.
    

    Parkbridge now owns 63 properties containing 13,977 sites with a capacity
to add a further 4,029 sites through expansion of current property holdings.
    Parkbridge continues to execute its growth strategy through active
development of its expansion lands, repositioning operating properties and
acquiring high quality properties in its core markets. "Over the first nine
months of this fiscal year, $11.6 million has been invested in our different
expansion and redevelopment projects and $62.6 million has been invested in
new property acquisitions. We expect the returns from these investments to be
strong contributors to our growth next year and in the years to come,"
commented David Rozycki, President Eastern Operations and Co-CEO.
    For a complete discussion of the foregoing please refer to the filings of
the Corporation's June 30, 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 Alberta, Ontario and Quebec, and
most recently in British Columbia.
    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
                                                          2007          2006
                                                  ------------- -------------
                                                    (Unaudited)
    Assets
      Real estate assets                               341,120       265,905
      Cash and cash equivalents                          3,125         5,372
      Defeasance collateral                             11,658        12,122
      Inventory and other assets                        51,423        23,527
      Future income tax asset                                -         8,451
                                                  ------------- -------------
                                                       407,326       315,377
                                                  ------------- -------------
                                                  ------------- -------------
    Liabilities and Shareholders' Equity
      Secured debt                                     213,774       143,485
      Bank indebtedness                                 12,138             -
      Accounts payable and other liabilities            22,440        27,683
      Future income tax liability and deferred
       credit                                           14,640        15,069
                                                  ------------- -------------
                                                       262,992       186,237
      Shareholders' Equity                             144,334       129,140
                                                  ------------- -------------
                                                       407,326       315,377
                                                  ------------- -------------
                                                  ------------- -------------



    CONSOLIDATED INTERIM STATEMENT OF INCOME AND
     FUNDS FROM OPERATIONS

    ($000's)                 Three Months Ended          Nine Months Ended
                             June 30 (Unaudited)         June 30 (Unaudited)
                           ----------------------      ----------------------
                              2007          2006          2007          2006
                           --------      --------      --------      --------
    PROPERTY OPERATIONS
      Rental and other
       property revenues    14,393        10,707        35,741        26,509
      Property operating
       expenses and taxes   (6,869)       (5,597)      (15,357)      (12,334)
      Brokerage and resale
       income                  520           408           673           465
                           --------      --------      --------      --------
        Income from
         property
         operations          8,044         5,518        21,057        14,640
                           --------      --------      --------      --------
    HOME SALES OPERATIONS
      Home sales revenue    15,153        12,289        30,058        18,115
      Cost of home sales   (13,136)      (10,494)      (25,201)      (15,413)
      Operating expenses      (716)         (252)       (1,692)         (569)
                           --------      --------      --------      --------
        Income from home
         sales operations    1,301         1,543         3,165         2,133
                           --------      --------      --------      --------

    INCOME FROM OPERATIONS
     BEFORE THE UNDERNOTED   9,345         7,061        24,222        16,773
                           --------      --------      --------      --------
      Interest expense       3,040         2,018         7,520         5,145
      Defeasance loss            -             -             -         2,097
      Interest income         (144)         (121)         (387)         (280)
      General and
       administrative
       expenses              1,156           898         3,216         2,530
      Depreciation and
       amortization          1,650         1,044         4,302         2,786
      Stock-based
       compensation            267           645         1,125         1,907
      Gain on derivative
       instruments            (267)            -          (328)            -
                           --------      --------      --------      --------
                             5,702         4,484        15,448        14,185
                           --------      --------      --------      --------
    INCOME BEFORE INCOME
     TAXES                   3,643         2,577         8,774         2,588

    Income taxes, net of
     deferred credit           373           289           864           499
                           --------      --------      --------      --------
    NET INCOME               3,270         2,288         7,910         2,089

    Add:  Defeasance loss        -             -             -         2,097
          Depreciation and
           amortization      1,650         1,044         4,302         2,786
          Stock based
           compensation        267           645         1,125         1,907
          Future income
           taxes, net of
           deferred credit     373           289           864           369
                           --------      --------      --------      --------
    FUNDS FROM OPERATIONS    5,560         4,266        14,201         9,248
                           --------      --------      --------      --------
                           --------      --------      --------      --------
    

    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,
2007, the Annual Information Form dated December 28, 2006, and the Amended
Management's Discussion and Analysis and audited restated financial statements
for the year ended September 30, 2006. 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

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PARKBRIDGE LIFESTYLE COMMUNITIES INC.

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