Extendicare to give committee's recommendation on sale by month's end
Extendicare Inc. expects to shed some light by the end of this month on whether it plans to sell or reorganize itself.The Ontario, Canada-based nursing home chain said this week it will disclose the recommendation of its independent committee in two to three weeks. The committee has been examining the company's options since February when Extendicare said it was considering selling or reorganizing to boost shareholder value. Its 2005 profits declined by 24%.
Earnings for the 2006 first quarter fell by 23% to $14 million (Canadian), Extendicare said this week. Earnings per diluted subordinate voting share fell to $0.20 from $0.26 last year. A number of items negatively affected results, including $0.03 per share in incremental stock-based compensation, $0.02 per share associated with restructuring costs and lower overall occupancy in U.S. nursing facilities.