Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, May 27, 2016

Article Excerpt

EXTENDICARE INC., $8.69, symbol EXE on Toronto, owns 64 senior-care facilities that can house 8,464 residents—both long- and short-term. It manages another 54 residences that are home to 6,426 seniors. Extendicare also operates 47 ParaMed Home Health Care branches in six provinces. ParaMed’s 10,900 staff members provide nursing care and other forms of assistance to clients who remain in their own homes. In the three months ended March 31, 2016, the company’s revenue rose 29.8%, to $284.4 million from $202.2 million a year earlier. Cash flow jumped 72.5%, to $12.2 million, or $0.14 a share, from $7.1 million, or $0.08. The gains came mostly from successful acquisitions. In April 2015, Extendicare purchased Revera Home Health for $83.6 million. As well, in late 2015, it bought four senior-care facilities in Ontario and Saskatchewan for $98.8 million. In February 2016, it acquired two more in Saskatchewan for $40.5 million. Provinces regulate nursing home fees in Canada, and they provide substantial funding. Both of these…