Parkbridge announces 14% year over year increase in core rental operations

CALGARY, Nov. 19 /CNW/ - Parkbridge Lifestyle Communities Inc. ("Parkbridge" or the "Corporation"), (TSX: PRK) today announced the results for its fiscal year ended September 30, 2009.

 Financial and Operational Highlights ($000's except per share amounts) Balance Sheet Data 2009 2008 ------------------------------------------------------------------------- Income properties 400,120 381,057 Development properties 67,559 65,103 ------------- ------------- 467,679 446,160 Secured debt 279,495 266,454 Number of shares issued and outstanding (000's) 66,769 61,768 Income Summary Data 2009 2008 ------------------------------------------------------------------------- Total revenues from all operations 118,408 137,527 Income from property operations 41,887 36,865 Home sales income 2,461 8,091 Income from operations 44,348 44,956 Net income 11,662 16,392 Net income per share - diluted(1) 0.19 0.26 Funds from operations (FFO)(2) 23,524 26,015 FFO per share - diluted(1) 0.38 0.41 Weighted average no. of shares - diluted (000's)(1) 61,776 63,728 Operational Data 2009 2008 ------------------------------------------------------------------------- Occupancy % Communities 99% 99% Resorts(3) 95% 93% Sites leased 256 381 Home sales volume 245 389 Home sales backlog(4)(5) - end of year 167 154 Operational Sites - end of year 15,851 15,680 Developed Sites - end of year 830 849 Expansion Sites - end of year 4,276 4,189 ------------------------------------------------------------------------- (1) The weighted average number of shares issued and outstanding calculation utilizes the average trading price of the Corporation's shares during the year evaluated. During the year ended September 30, 2009, the exercise price pertaining to the majority of outstanding stock option grants was above the average trading price of the Corporation's shares. Accordingly, the impact of "in the money" stock options on the dilution calculation was nominal. For fiscal 2009, the number of weighted average common shares outstanding, for basic and diluted calculations, are identical. (2) 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. Users should be cautioned that this performance measure should not be construed as an alternative to net income and differs from the Real Property Association of Canada's definition of FFO. 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. . (3) The percentage occupancy for Seasonal Resorts represents the average annual occupancy level of seasonal Sites and overnight Sites within a particular Seasonal Resort. In general, overnight Sites comprise 10% or less of the total Sites within a particular Seasonal Resort. Typically, the average occupancy achievable in respect of overnight Sites is 45 to 75 days out of the total of the approximately 120 days the Seasonal Resort is open in a given season. Consequently, the total occupancy level for a particular Seasonal Resort property will generally be less than 100%. (4) Due to the earlier release of the 2009 Consolidated Financial Statements and MD&A, the 2009 Home Sales backlog is quoted as at November 15; the 2008 backlog is quoted as at November 30. (5) Includes 107 firm and 60 conditional sales contracts at November 15, 2009. ------------------------------------------------------------------------- 

 Investment Fundamentals 2009 Performance ----------------------- ---------------- - Consistently high occupancies - Communities and Resorts enjoyed virtually full occupancy in 2009. - Little or no tenant defaults - Defaults were negligible - Strong operating margins - Operating margins at Communities averaged 70%; Resorts averaged 47% - Little or no interruption in - Virtually all homes sold on site rental payments with existing tenant paying rent until home is sold, at which time the purchaser enters into a new lease and commences payment - Low recurring capex - Averaged $127 per site - Recession resistant - Caters to average Canadians in a sector that offers quality, affordability and lifestyle. Risk spread over approximately 16,000 homeowners who, on balance, have substantial equity in their homes - High barriers to entry - Risk of overbuilding is minimal. Zoning is difficult to obtain. Cost of waterfront lands is prohibitive - Favorable demographics - Product ideally suited to the aging demographic in North America 

 CONSOLIDATED BALANCE SHEETS ------------------------------------------------------------------------- September 30 September 30 ($000's) 2009 2008 ------------- ------------- Assets Income properties 400,120 381,057 Development properties 67,559 65,103 Cash and cash equivalents 15,628 9,243 Accounts receivable 5,176 5,914 Inventory and other assets 24,298 32,323 Defeasance collateral 10,361 10,931 ------------- ------------- 523,142 504,571 ------------- ------------- ------------- ------------- Liabilities and Shareholders' Equity Secured debt 279,495 266,454 Bank indebtedness - 26,683 Accounts payable and other liabilities 23,463 25,679 Future income tax liability and deferred credit 16,747 14,889 ------------- ------------- 319,705 333,705 Shareholders' Equity 203,437 170,866 ------------- ------------- 523,142 504,571 ------------- ------------- ------------- ------------- CONSOLIDATED STATEMENTS OF INCOME AND FUNDS FROM OPERATIONS ------------------------------------------------------------------------- September 30 September 30 ($000's) 2009 2008 ------------- ------------- PROPERTY OPERATIONS Rental and other property revenues 72,689 65,806 Property operating expenses and taxes (31,854) (30,353) Brokerage and resale income (net) 1,052 1,412 ------------- ------------- 41,887 36,865 ------------- ------------- SALES OPERATIONS Sales revenue 37,244 58,447 Cost of sales (33,100) (47,515) Operating expenses (1,683) (2,841) ------------- ------------- 2,461 8,091 ------------- ------------- INCOME FROM OPERATIONS BEFORE THE UNDERNOTED 44,348 44,956 ------------- ------------- Interest expense 15,949 13,999 Depreciation and amortization 7,981 7,432 General and administrative expenses 5,362 4,787 Stock-based compensation 1,682 982 Loss on settlement of debt - 594 Interest income (487) (441) ------------- ------------- 30,487 27,353 ------------- ------------- INCOME BEFORE INCOME TAXES 13,861 17,603 Future income taxes, net of deferred credit 2,199 1,211 ------------- ------------- NET INCOME 11,662 16,392 Add: Depreciation and amortization 7,981 7,432 Stock based compensation 1,682 982 Future income taxes, net of deferred credit 2,199 1,209 ------------- ------------- FUNDS FROM OPERATIONS 23,524 26,015 ------------- ------------- ------------- -------------