Ann: FLLYR: MET: Metlifecare Year End Results

• Release Date: 23/08/12 11:34
• Summary: FLLYR: MET: Metlifecare Year End Results
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MET
23/08/2012 09:34
FLLYR

REL: 0934 HRS Metlifecare Limited

FLLYR: MET: Metlifecare Year End Results

METLIFECARE YEAR END RESULTS
FOR THE YEAR ENDED 30 JUNE 2012

Metlifecare has today released its audited financial results for the year
ended 30 June 2012, reporting an uplift in sales, resales and good
improvements in operating cashflows.  The results were in line with market
guidance and exclude the benefits of the merger which was finalised after the
end of the financial year.

Sales and resales settlements were up 12% over the previous year, with a
total of 330 settlements over the twelve month period providing $113.9m in
gross cashflows.  Occupancy levels, excluding The Poynton, were at 93%, with
a significant increase in serviced apartment occupancy year on year.

Operating cashflows also showed good improvement, up 35% to $31.0m (FY11:
$23.0m). This reflects strong settlements leading up to year end, with
improvements in serviced apartment sales, sales settlements at The Poynton
and revenue from Village services.  Operating expenses were on a similar
level to previous years, with a rise in property expenses offset by a
reduction in finance costs.  Merger costs of $1.0m were included in operating
expenses.

The reported profit result was impacted by two non-cash expenses - a
reduction in the fair value of investment properties of $99.8m, and a
deferred tax charge of $38.0m.

As previously announced, CBRE was appointed by Metlifecare to perform a
valuation of the company's investment properties.  This led to changes to
various key assumptions including discount rates and property price growth,
and resulted in a decline in the total fair value of investment properties to
$1.2b (FY11: 1.3b).

The deferred tax adjustments relate to the impact of the groups on-going
ability to utilise tax losses carried forward and the impact of the recent
changes to the depreciation rules on the depreciable tax base in the future.

As a result, Metlifecare reported a Net Loss After Tax of $(132.0)m.
Excluding non-cash expenses, trading performance  was $6.2m compared to $8.1m
in FY11 (refer investor presentation).

There was also a $9.6m uplift in the revaluation of care facilities net of
tax which were the result of a change in accounting policy adopted by the
company in the current year.

Bank debt was $69.2 million as at 30 June 2012 excluding cash balances (FY11:
$125.2 m).

Chairman of Metlifecare, Mr Peter Brown, commented: "2012 was a milestone
year for Metlifecare, as we effected a number of major strategic initiatives
that will be of long term value to the company and to shareholders.

"Following a strategic review of the capital and ownership structure in
October 2011, a capital raising was undertaken and generated approximately
$45.5 million in equity, which was used to reduce bank debt.  Following this,
in May 2012, we announced a proposed merger with Vision Senior Living and
Private Life Care Holdings, which was finalised in July 2012.

"As part of the merger transaction and post-year end, Retirement Villages
Group sold down their majority shareholding from 50.1% to 43.2%. The Board
believes this will lead to greater liquidity and trading volumes and will be
of long term benefit to all shareholders.

"These initiatives have created a company with a strong portfolio of
villages, a significant development pipeline and the expertise to support
this, an improved balance sheet and a more diverse shareholder base.
Metlifecare is now well positioned to take advantage of the significant
potential available in the retirement living sector."

CEO and Managing Director of Metlifecare, Alan Edwards, said: "In a
transformative year for the company, our staff continued to focus and deliver
on operating performance.  We have seen a pleasing increase in sales, resales
and operating cashflows over the past three years.  The benefits of our
larger organisation will start to be realised in the 2013 financial year, and
our focus is on integrating the businesses, realising synergies, debt
reduction, initiating developments and delivering improved results.

"We will also be looking to maximise the potential of established and mature
Villages, and will continue to drive revenue from Village services and from
resales.

"We now have an exciting development pipeline in place, offering a mixture of
brownfield and greenfield opportunities. We have sufficient bank funding
capacity to continue with these opportunities, as well as seek out additional
development prospects."

The Board will consider a dividend for the 2012 year around the time of the
AGM in October once the post-merger capital management and development
strategies have been finalised.

ENDS

Released on behalf of Metlifecare by Jackie Ellis, spice communications group
tel 09 360 8500 or email [email protected]

For more information, please contact:

Alan Edwards
CEO and Managing Director
Tel: 09-539-8000   Mobile: 021-809-030
 Tristram van der Meijden
Chief Financial Officer
Tel: 09-539-8000 Mobile: 021-996-616

About Metlifecare:

Metlifecare is a publicly listed aged care and retirement lifestyle company.
Established in 1986, the company has a proven track record of successfully
owning and managing retirement villages in New Zealand. Metlifecare currently
owns villages in prime locations throughout New Zealand, with most providing
provide a full continuum of care from independent villas and apartments
through to serviced apartments, rest homes and hospitals.
www.metlifecare.co.nz

www.metlifecare.co.nz
End CA:00226335 For:MET    Type:FLLYR      Time:2012-08-23 09:34:05