Extendicare's shares rise on strong funds from operations

Thu Feb 28, 2013 12:46pm EST
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Feb 28 (Reuters) - Shares of Extendicare Inc, which operates long-term senior care centers, rose 8 percent after the company's fourth-quarter adjusted funds from operations beat analysts' estimates on lower taxes and costs.

Funds from operations per share, excluding reserve adjustments, were 31.2 Canadian cents.

Analysts on average had expected funds from operations of 26 Canadian cents, according to Thomson Reuters I/B/E/S.

Income taxes, excluding adjustments, represented 5.2 percent of pretax funds from operations during the quarter, lower than the 13.4 percent a year earlier, the company said.

"(Although) the headline beat was of a pretty significant magnitude, it was a low quality beat," said Alex Avery of CIBC World Markets.

Revenue fell 7 percent to C$497 million ($483.4 million).

The company provides nursing care, rehabilitative therapies and home healthcare services through its network of 246 senior care centers in North America.

Shares of the Ontario-based company were trading up 5 percent at C$7.95 on the Toronto Stock Exchange on Thursday. ($1 = 1.0281 Canadian dollars) (Reporting by Krithika Krishnamurthy in Bangalore; Editing by Sriraj Kalluvila)