Q: Can you please comment on the results from Extendicare and comment on the 5% drop yesterday? Is this a good time to step in?
5i Research Answer:
Revenue of $374M matched estimates. EBITDA of $35.6M was 16% better than expected. EPS of 18c rose from 15c in the prior year period. Sales rose 2%. The stock has been very strong this year, up 29%, and we would not see the dip as an indication of bad results. They were decent. We would be OK buying this. Momentum has shifted in the stock and decent growth is expected next year. Note it hasn't always been a solid performer but the company is starting to put its act together.