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Article Excerpt

EXTENDICARE INC. $8.75 (Toronto symbol EXE; TSINetwork Rating: Extra Risk) (905-470-5534; www.extendicare.com; Shares outstanding: 88.8 million; Market cap: $777.1 million; Dividend yield: 5.5%) owns 67 senior-care facilities in Canada. Together, they can house 8,950 residents on both a long- and short-term basis. The company manages another 53 residences that are home to 6,497 seniors. Extendicare also operates 35 ParaMed Home Health Care branches in six provinces. ParaMed provides nursing care and other forms of assistance to clients who remain in their own homes. In the three months ended June 30, 2019, the company’s revenue rose 1.6%, to $284.0 million from $279.5 million a year earlier. Cash flow per share fell 10.5%, to $0.17 from $0.19. Reduced hours of service at ParaMed were the main reason for the cash flow decline. Like most home-care providers, that business continues to deal with a shortage of personal support workers (PSWs) and, to a lesser extent, nurses. However, Extendicare’s intensified employee retention programs—including a new Internet-based system…