Financial Results from Long-Term Care Operator Leisureworld
TORONTO, March 21, 2006 – Macquarie Power & Infrastructure Income Fund
(TSX: MPT.UN – “MPT”, the “Fund”) today announced that Leisureworld Senior Care LP
(“LSCLP”) has released its financial report for the period from October 18, 2005 to
December 31, 2005.1
Through its 45% indirect interest in LSCLP, MPT owns a 45% interest2 in Leisureworld, the
third-largest long-term care provider in Ontario, with 19 long-term care facilities (3,147
beds), two retirement homes (87 beds) and an independent living facility (53 beds).
During the period, LSCLP generated revenue of $33.5m compared with $28.9m for the
previous corresponding period (“pcp”). Income from operations3 increased by 39% to
$4.1m, up from $3.0m in the pcp. The sharp increases in revenue and income from
operations were primarily due to increased occupancy at facilities which were opened in
2003 and 2004 and have been in “ramp up” to full capacity. The financial results were in
line with MPT’s expectations.
Mr. Gregory Smith, Chief Executive Officer of MPT said: “This is a pleasing result from
LSCLP and the Leisureworld business, which continues to enhance its reputation for
providing high quality long-term accommodation and care. Revenue and income from
operations are expected to continue to improve as the new facilities approach full
occupancy and more residents pay the preferred accommodation rate.
“MPT expects to receive steady distributions from LSCLP and there is also significant
potential for the business to grow over time through participation in the consolidation of the
fragmented long-term care industry in Ontario,” Mr. Smith said.
As a result of a large non-cash amortization charge following the acquisition of its assets in
2005, LSCLP recorded an accounting loss of $1.8m for the period. The adjusted result,
before the non-cash amortization of intangibles, was a profit of $0.9m.
LSCLP is well positioned for growth, with $30m of cash, a conservative leverage ratio of
61% and a low average cost of debt.
The source of the information relating to LSCLP and Leisureworld contained in this release
is the audited financial statements of LSCLP for the period ended December 31, 2005 and
the related management discussion and analysis (“MD&A”), which have been publicly filed
by LSCLP on SEDAR at HTUwww.sedar.comUTH.
1Starting when LSCLP commenced operations
2The remaining 55% is owned by Macquarie Bank Limited, which has transferred the economic benefits of its
ownership to Macquarie International Infrastructure Fund
3See “ Non-GAAP Measure” below
About Macquarie Power & Infrastructure Income Fund
MPT invests in infrastructure assets with an emphasis on power infrastructure. MPT’s
strategy is to acquire and actively manage a high quality portfolio of long life infrastructure
assets to improve their financial performance and provide growing and sustainable
distributions to unitholders for the long term. MPT’s infrastructure portfolio includes
Cardinal, a 156MW gas-fired cogeneration power station in Ontario, and a 45% interest in
Leisureworld, a leading long-term care provider in Ontario with over 30 years operating
experience. MPT is managed by a wholly owned subsidiary of Macquarie Bank Limited
and a member of the Macquarie group.
For further information, please contact:
Chief Financial Officer
Macquarie Power Management Ltd.
Tel: (416) 607 5198
Public Affairs and Communications
Macquarie North America Ltd.
Tel: (416) 607 5042
In order to provide a better understanding of the LSCLP results, the Fund has included in this release
a discussion of income from operations, which is earnings before interest, tax, depreciation and
amortization. Income from operations is used by LSCLP and the Fund to evaluate the financial
performance of the Leisureworld business using a measurement of earnings that has non-cash items
removed. Income from operations is a financial indicator used by investors to assess the
performance of an entity, and its ability to generate cash through operations. Macquarie Power
Management Ltd., the manager of the Fund (the “Manager”) believes that this is especially relevant
for the Fund, which pays out virtually all of its cash flow in regular distributions. However, since
income from operations is not a measure of performance under GAAP, it may not be comparable to
similarly named measures used by other entities. Investors should not use income from operations
as an alternative for net income, as an indicator of operating results or cash flows, or as a
measurement of liquidity. For reconciliation of income from operations to net income, please refer to
the audited financial statements of LSCLP for the period ended December 31, 2005 and the related
Caution Concerning Forward-Looking Statements
Certain statements in this news release may constitute “forward-looking” statements, which
involve known and unknown risks, uncertainties and other factors, which may cause the
actual results to be materially different from any future results expressed or implied by such
forward-looking statements. When used in this news release, such statements use such
words as “expects” and other similar terminology. These statements reflect current
expectations regarding future events and operating performance. These expectations are
based upon certain material factors and assumptions that the Manager currently believes are
reasonable and were applied in drawing a conclusion or making a forecast or projection as
reflected in the forward-looking information, including continued improvement in facility
occupancy that is in line with historical trends and current industry dynamics. A number of
factors could cause actual results to differ materially from the results discussed in the
forward-looking statements, including, but not limited to, general business risks related to
facility ownership and operation, identifying suitable avenues for continued growth and
development, and competitive industry dynamics. These risks and uncertainties should not
be construed as exhaustive, and other events and risk factors, including the risk factors
disclosed in the LSCLP MD&A for the period ended December 31, 2005, could cause actual
results to differ materially from the results discussed in the forward-looking statements.
These forward-looking statements are made as of the date of this release, and the Fund and
the Manager assume no obligation to update or revise them to reflect new events or
Macquarie Power & Infrastructure Income Fund is not an authorised deposit taking institution for the purposes of the Banking Act (Cth) 1959 and Macquarie Power & Infrastructure Income Fund’s obligations do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542. Macquarie Bank Limited does not guarantee or otherwise provide assurance in respect of the obligations of Macquarie Power & Infrastructure Income Fund.