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