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Amica Mature Lifestyles Announces Third Quarter Results for Fiscal 2011 and Announces Fourth Quarter Dividend

Wednesday, April 13, 2011

Amica Mature Lifestyles Announces Third Quarter Results for Fiscal 2011 and Announces Fourth Quarter Dividend08:30 EDT Wednesday, April 13, 2011VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 13, 2011) - Amica Mature Lifestyles Inc. (TSX:ACC) ("Amica" or the "Company"), a leader in the management, marketing, design, development and ownership of luxury housing and services for mature lifestyles, is pleased to announce the Company's operating and financial results for the three and nine month periods ended February 28, 2011. FINANCIAL HIGHLIGHTS Three Months Ended February 28, 2011A review of the financial results for the three month period ended February 28, 2011 ("Q3/11") compared to the three month period ended February 28, 2010 ("Q3/10"), reflects the following:consolidated revenues increased $4.7 million to $14.8 million; mature same community(1) MARPAS(1) increased by 3.6%; net income attributable to Amica shareholders increased by $4.4 million to $0.6 million (note: Q3/10 included a $3.7 million non-recurring write-down on land deposits, net of tax savings of approximately $0.7 million); EBITDA(1) increased by $1.4 million to $3.4 million; basic and diluted net earnings per share attributable to Amica shareholders increased from a loss of $0.22 in Q3/10 to earnings of $0.03 in Q3/11 (see comment above regarding Q3/10 write-down); CFFO(1) increased $0.26 million to $1.95 million and basic and fully diluted CFFO per share were unchanged at $0.10; FFO(1) increased by 44% to $2.7 million from $1.9 million resulting in a $0.03 increase in basic and fully diluted per share FFO to $0.14; and AFFO(1) increased by 37% to $2.5 million from $1.8 million resulting in a $0.02 increase in basic and fully diluted per share AFFO to $0.13. Not included in net earnings or CFFO for Q3/11 are $0.14 million (Q3/10 - $0.08 million) in management, design and marketing fees and $0.37 million (Q3/10 - $0.37 million) in interest and guarantee fees. Under equity accounting, these amounts are netted against the Company's co-tenancy investments and reported in cash flow from investing activities until the properties are considered to be income-producing.(1) This is a Non-GAAP Financial Measure which is defined at the end of this news release. Nine Months Ended February 28, 2011 A review of the financial results for the nine month period ended February 28, 2011 ("YTD Fiscal 2011") compared to the nine month period ended February 28, 2010 ("YTD Fiscal 2010") reflects the following:consolidated revenues increased $8.9 million to $39.6 million; mature same community MARPAS increased by 2.8%; net income attributable to Amica shareholders increased by $6.5 million to $2.3 million (note: YTD Fiscal 2010 included a $3.7 million non-recurring write-down on land deposits, net of tax savings of approximately $0.7 million); EBITDA increased by $2.1 million to $8.8 million; basic and diluted net earnings per share attributable to Amica shareholders increased from a loss of $0.25 in YTD Fiscal 2010 to earnings of $0.12 (see comment above regarding YTD Fiscal 2010 write-down); CFFO increased $0.6 million to $5.1 million. The basic and diluted per share amount remained unchanged at $0.27; FFO increased by 20% to $5.9 million from $4.9 million; AFFO increased by 20% to $5.4 million from $4.6 million; and Basic and fully diluted FFO per share increased $0.01 per share to $0.31 and basic and fully diluted AFFO per share remained unchanged at $0.28. Not included in net earnings or CFFO for YTD Fiscal 2011 are $0.48 million (YTD Fiscal 2010 - $0.72 million) in management, design and marketing fees and $1.32 million (YTD Fiscal 2010 - $1.05 million) in interest and guarantee fees credited to co-tenancy investments. Mr. Colin Halliwell, Amica's Chief Operating Officer commented, "We are pleased with the steady progress we are seeing on all fronts. We finished the quarter at 91.9% occupancy in our mature same communities and experienced a 2.8% increase in MARPAS for the month of February 2011, compared to February 2010. This represents the fourteenth consecutive monthly year-over-year increase in MARPAS for our mature same communities. Our BC communities are doing particularly well, finishing the quarter at 94.3%, occupancy including a number of communities at or close to 100%." Mr. Samir Manji, Amica's Chairman, President & CEO, commented, "The momentum we achieved during the first half of the fiscal year continued during our third quarter. With operating results continuing to improve, particularly in our west coast communities where occupancy levels have strengthened, combined with the recent transactions we announced and the accretive refinancings completed, we expect this momentum to continue in our fourth quarter and beyond. Our brand also continues to get stronger and this is ultimately manifested in increased traffic in our communities followed by growth in reservations and occupancy levels. We had a tough winter with high turnover in certain eastern communities but we are optimistic that we will have a strong spring and summer during which time we hope to have many of our eastern communities follow the lead of those in the west where we have achieved a full recovery from the downturn in late 2008 and 2009 when occupancy levels were impacted quite significantly. We are benefitting today in those communities where occupancy has recovered from not only stronger occupancy levels but also the fact that we did not reduce our rents during the downturn which is translating into improved bottom line performance in these communities. This represents an opportunity going forward in those communities where occupancy has not fully recovered. We also look forward to the impact that our newer communities in lease-up will have on our financial performance when they approach stabilized occupancy in the quarters ahead. It has been a very good fiscal year to-date and we remain committed to ensuring we stay focused on all our key objectives for fiscal 2011, a year we have themed internally as 'Building a Stronger Amica'." DISCUSSION OF FINANCIAL RESULTS Three Months Ended February 28, 2011Earnings from Management Operations in Q3/11 increased by $0.1 million to $0.2 million (Q3/10 – $0.13 million). Compared to Q3/10, Management Operations revenues increased 16% to $1.5 million and general and administrative expenses increased by 12% to $1.3 million. Management Operations revenues for Q3/11 and Q3/10 are summarized as follows:(expressed in thousands of Canadian dollars)Q3/11Q3/10Management fees from 100% owned communities (1)564533Management fees from less than 100% owned properties (1)974788Design and marketing fees--Total Management Operations Revenues1,5381,321(1) Management fees in respect of Amica at Villa Da Vinci have been reclassified to 100% owned communities for all periods presented as it became a 100% owned property as of December 31, 2010. The 16% increase in management fees from less than 100% owned properties is attributable to increases in occupancy and MARPAS for mature communities, the opening of new communities (Amica at Bayview Gardens in June 2010 and Amica at Windsor in July 2010) and the increase in occupancy of communities in lease-up.Earnings from Ownership and Corporate Operations in Q3/11 increased by approximately $1.3 million to $3.2 million (Q3/10 – $1.9 million).Retirement communities operating revenues increased 51% to $14.1 million (Q3/10 - $9.4 million). The increase is primarily attributable to the consolidation of the operating results of Amica at West Vancouver for the period August 1, 2010 to February 28, 2011, Amica at City Centre for the period August 17, 2010 to February 28, 2011, and Amica at Newmarket for the period January 1, 2011 to February 28, 2011 – these revenues were $4.3 million in Q3/11 (Q3/10 - $nil). Mature same community MARPAS for Q3/11 increased 3.6% compared to Q3/10 due to higher occupancy levels and community focus on ancillary revenue opportunities. Overall occupancy in Amica's mature same communities at the end of Q3/11 was 91.9%, compared to 90.7% at the end of Q3/10. Retirement communities operating expenses increased by 46% to $9.2 million (Q3/10 - $6.3 million). The increase is primarily attributable to the consolidation of the operating results of Amica at West Vancouver for the period August 1, 2010 to February 28, 2011, Amica at City Centre for the period August 17, 2010 to February 28, 2011 and Amica at Newmarket for the period January 1, 2011 to February 28, 2011 – these expenses were $2.4 million in Q3/11 (Q3/10 - $nil). Corporate and ownership expenses increased by 16% to $0.67 million (Q3/10 – $0.57 million) principally due to: professional fees, including one-time IFRS conversion costs ($49k increase Q3/11 vs Q3/10); increased salaries, bonuses and benefits ($60k increase Q3/11 vs Q3/10); and directors' fees and expenses ($12k increase Q3/11 vs Q3/10). The loss from equity accounted investments increased to $0.17 million (Q3/10 - $0.09 million) and is attributable to the inclusion of the Company's 22% share of the Q3/11 results from Amica at Thornhill which is now classified as an Income Producing Property under the Company's accounting policies, whereas the losses during lease-up were previously being capitalized.Interest expense increased by 32% to $2.4 million (Q3/10 - $1.8 million), principally due to the inclusion of interest expense for Amica at City Centre, Amica at West Vancouver and Amica at Newmarket upon consolidation. In Q3/11 an unrealized gain of $0.10 million was incurred in respect of an interest rate swap on two floating rate mortgages on a 100% owned property compared to an unrealized gain of $0.07 million in Q3/10. Assuming the Company holds these mortgages and the interest rate swaps for their full terms any unrealized losses/gains will reverse themselves and the Company will not incur any gain or loss in respect of the interest rate swaps.The Amica at Newmarket business combination was achieved in stages, as such, the acquisition-date fair value of the Company's pre-acquisition equity interest in this entity was determined to be $0.68 million compared to the carrying value of $0.80 million under the cost method of accounting, resulting in the recognition of a loss of $0.12 million (Q3/10 – $nil). This loss was recognized in Q3/11. FFO for Q3/11 increased by 44% to $2.7 million compared to $1.9 million for Q3/10, principally due to increase in earnings from Ownership and Corporate Operations. AFFO for Q3/11 increased by 37% to $2.5 million compared to $1.8 million for Q3/10, principally due to the increase in Q3/11 FFO.Nine Months Ended February 28, 2011Earnings from Management Operations in YTD Fiscal 2011 decreased by $0.2 million to $0.6 million (YTD Fiscal 2010 – $0.9 million). Management Operations revenues increased by 4% to $4.6 million for YTD Fiscal 2011 (YTD Fiscal 2010 - $4.4 million) and general and administrative expenses increased by 11% to $3.9 million (YTD Fiscal 2010 – $3.5 million). Management Operations revenues for YTD Fiscal 2011 and YTD Fiscal 2010 are summarized as follows:(expressed in thousands of Canadian dollars)YTD Fiscal 2011YTD Fiscal 2010Management fees from 100% owned communities (1)1,6601,588Management fees from less than 100% owned properties (1)2,7882,238Design and marketing fees114577Total Management Operations Revenues4,5624,403(1) Management fees from Villa Da Vinci have been presented in management fees from 100% owned communities for YTD Fiscal 2011 and YTD Fiscal 2010.The increase in Management Operations revenues is primarily due to an increase in management fees from less than 100% owned properties – this increase is attributable to increases in occupancy and MARPAS for mature communities, the opening of new communities (Amica at Whitby in November 2009, Amica at Bayview Gardens in June 2010 and Amica at Windsor in July 2010) and the increase in occupancy of communities in lease-up. This increase was partially offset by lower design and marketing fees from new developments under construction in YTD Fiscal 2011. Going forward, the Company will earn marketing bonuses on two projects that are currently in lease-up: Amica at Bayview Gardens and Amica at Windsor. Additionally, the Company can earn design and marketing fees on four projects currently in pre-development: Amica at Oakville, Amica at Richmond Hill, Amica at Aspen Woods and the Amica at Swan Lake expansion. The 11% increase in general and administrative expenses for YTD Fiscal 2011 compared to YTD Fiscal 2010 was principally due to increased compensation including: salaries, wages, bonuses and benefits ($418k increase), and stock based compensation ($71k increase), which was partially offset by increased corporate recoveries from co-tenancies.Earnings from Ownership and Corporate Operations in YTD Fiscal 2011 increased by approximately $2.3 million to $8.2 million (YTD Fiscal 2010 – $5.9 million).Retirement communities operating revenues increased 34% to $37.2 million for YTD Fiscal 2011 (YTD Fiscal 2010 - $27.9 million). The increase is primarily attributable to the consolidation of the operating results of Amica at West Vancouver for the period August 1, 2010 to February 28, 2011, Amica at City Centre for the period August 17, 2010 to February 28, 2011 and Amica at Newmarket for the period January 1, 2011 to February 28, 2011 – these revenues were $8.2 million in YTD Fiscal 2011 (YTD Fiscal 2010 - $nil). Also contributing to the increase was increases in occupancy and MARPAS for mature communities.Mature same community MARPAS for YTD Fiscal 2011 increased 2.8% compared to YTD Fiscal 2010 due to higher occupancy levels. Overall occupancy in Amica's mature same communities at the end of Q3/11 was 91.9% (Q3/10 – 90.7%), compared to 91.3% at the end of Q4/10 (Q4/09 – 90.8%).Retirement communities operating expenses increased by 33% to $24.5 million (YTD Fiscal 2010 - $18.5 million). The increase is primarily attributable to the consolidation of the operating results of Amica at West Vancouver for the period August 1, 2010 to February 28, 2011, Amica at City Centre for the period August 17, 2010 to February 28, 2011 and Amica at Newmarket for the period January 1, 2011 to February 28, 2011 – these expenses were $5.0 million in YTD Fiscal 2011 (YTD Fiscal 2010 - $nil). Also contributing to the increase were increases in same community expenses consisting primarily of compensation (wages, salaries and annual bonuses), increased corporate recoveries, advertising and marketing, and food costs. The loss from equity accounted investments increased to $0.26 million (YTD Fiscal 2010 - $0.17 million) and is attributable to the inclusion of the Company's 22% share of the Q3/11 results from Amica at Thornhill which is now classified as an Income Producing Property under the Company's accounting policies, whereas the losses during lease-up were previously being capitalized.Corporate and ownership expenses increased by 19% to $2.1 million (YTD Fiscal 2010 – $1.7 million) principally due to: professional fees, including one-time IFRS conversion costs ($176k increase), compensation including: salaries, wages, bonuses and benefits ($103k increase), and stock based compensation ($60k increase). These increases were partially offset by decreases in other areas including lower capital taxes (ceased July 2010). Interest expense increased by 18% to $6.4 million (YTD Fiscal 2010 - $5.4 million), principally due to the inclusion of interest expense for Amica at City Centre, Amica at West Vancouver and Amica at Newmarket upon consolidation. In YTD Fiscal 2011 the unrealized loss in respect of an interest rate swap on two floating rate mortgage on a 100% owned property increased by $0.2 million compared to YTD Fiscal 2010. Interest and other income decreased by $0.4 million to $1.1 million (YTD Fiscal 2010 - $1.5 million). The Amica at City Centre, Amica West Vancouver and Amica at Newmarket business combinations were achieved in stages (i.e. the Company owned 34%, 45.19% and 16% equity interests respectively in these investments prior to the transactions), as such, the acquisition-date fair value of the Company's pre-acquisition equity interests in these entities was determined to be $4.88 million compared to their combined carrying value of $2.70 million under the equity and cost methods of accounting, resulting in a gain of $2.18 million. YTD Fiscal 2011 FFO increased by 20% to $5.9 million compared to $4.9 million for YTD Fiscal 2010, principally due to Q3/11 increase in earnings from Ownership and Corporate Operations.YTD Fiscal 2011 AFFO increased by 20% to $5.4 million from $4.6 million. Basic and fully diluted FFO per share increased by $0.01 per share to $0.31 and basic and fully diluted AFFO per share remained unchanged at $0.28 principally due to the shares issued in the Q3/10 equity financing. COMMUNITY UPDATE Overall occupancy in the Company's mature communities at February 28, 2011 was 91.9%, an increase of 0.6% from 91.3% at May 31, 2010 and an increase of 1.2% from 90.7% at February 28, 2010. Overall occupancy in the Company's communities in British Columbia at February 28, 2011 was 94.3%. Mature same community MARPAS increased by 2.8% for the nine month period ended February 28, 2011 compared to the same period the prior year and is up 2.5% compared to May 31, 2010. The Company has experienced monthly year-over-year MARPAS increases in its mature same communities for 14 consecutive months and quarterly occupancy levels stabilizing above 90%. The following is an update on the lease-up in Amica's new communities: Amica at Westboro Park (opened September 2008) has 71.9% occupancy (May 31, 2010: 50.7%), which is anticipated to increase to 72.6% following 1 additional net pending move-in. Net pending move-ins reflects suites that have been reserved with a deposit made for the reservation, less suites for which notice of termination has been received. Amica at Thornhill (opened November 2008) has 59.3% occupancy (May 31, 2010: 44.8%), which is anticipated to increase to 62.8% following an additional 5 net pending move-ins. Amica at London (opened March 2009) has 43.8% occupancy (May 31, 2010: 30.4%), which is anticipated to increase to 51.9% following an additional 13 net pending move-ins. Amica at Whitby (opened November 2009) has 43.8% occupancy (May 31, 2010: 20.4%), which is anticipated to increase to 48.9% following an additional 7 net pending move-ins. Amica at Bayview Gardens (opened June 2010) has 31.5% occupancy, which is anticipated to increase to 35.6% following an additional 6 net pending move-ins. Amica at Windsor (opened July 2010) has 21.2% occupancy, which is anticipated to increase to 25.1% following an additional 7 net pending move-ins. The Company is evaluating the opportunity to commence construction in calendar 2011 for one or more of the developments currently in pre-development. The Company's current policy is to have committed construction financing in place before commencing construction of new luxury seniors residences.FINANCIAL POSITION The Company's consolidated cash and cash equivalents balance at February 28, 2011 was $1.5 million compared to $8.2 million at May 31, 2010. The $6.8 million decrease is primarily attributable to:$2.8 million cash provided by operations after changes in non-cash working capital items; $6.5 million cash used in investing activities, principally due to: $5.8 million used in the acquisition of additional ownership interests in Amica at West Vancouver, Amica at City Centre, Amica at Newmarket and Amica at Villa Da Vinci; $1.4 million used for additions to income-producing properties and properties under development; $0.9 million used for loans and mortgages receivable; offset by $1.6 million in recoveries on co-tenancy investments; $3.0 million cash used in financing activities, principally due to: $17.5 million in mortgage principal payments including $6.8 million for the Amica at The Balmoral Club maturity and $8.3 million for the early repayment of the Amica at Swan Lake mortgage; $3.9 million in dividends; offset by $4.3 million in net drawings on the demand operating loan; and $14.2 million of proceeds on mortgage refinancing on Amica at The Balmoral Club and Amica at Swan Lake. Subsequent to the end of the quarter, on March 3, 2011, the Company completed a bought deal equity financing of 3,000,000 common shares at $7.85 per common share. On March 25, 2011, a further 260,000 shares were issued at $7.85 per common share on the partial exercise of an over-allotment option granted to the underwriters. Total gross proceeds from the financing including the exercise of the over-allotment option are $25.6 million. In March 2011, the Company used approximately $12.0 million to repay its demand operating loan ($4.3 million) and complete the acquisition of an additional 51.5% ownership interest in Amica at Bayview ($7.7 million). INTERNATIONAL FINANCIAL REPORTING STANDARDS ("IFRS")The Company has made substantial progress in the detailed assessment phase to determine the impact of the transition to IFRS in the areas noted in the initial assessment phase and is now working towards completing an opening balance sheet as at June 1, 2010. The Company has completed its review of the classification of its Income Producing Properties (IPP) and Properties Under Development (PUD) under IFRS. The Company has determined that its IPP and PUD fall under the category of IAS 16 Property, Plant and Equipment. The Company has chosen the cost model with an IFRS 1 election to fair value its IPP as at June 1, 2010 as deemed cost and to use the cost model with or without IFRS 1 election for its PUD. Based on appraisals prepared by an independent valuations firm, the Company estimates that the impact of fair valuing the Company's consolidated IPP at June 1, 2010 (excludes Amica at City Centre, Amica at Newmarket and Amica at West Vancouver properties which became consolidated properties subsequent to May, 2010) to its June 1, 2010 opening IFRS balance sheet will be an approximate $50 million increase in IPP. This increase in the carrying value of the Company's IPP and the allocation of the fair values to components are expected to increase depreciation expense significantly; however management has not quantified the increase as it is continuing to work on the allocation of the fair values to components and determine the applicable depreciation period/rates for the components. The external valuation process used was a combination of the direct capitalization income approach, the direct comparison approach and the discounted cash flow approach. To determine fair values of the properties, a capitalization rate, ranging from 7.88% to 8.5% with an average of approximately 8.14%, was applied to the estimated stabilized net operating income of each property. Additional information on the Company's transition to IFRS can be found in the Company's Management Discussion and Analysis for the three and nine months ended February 28, 2011.FOURTH QUARTER DIVIDENDThe Company's Board of Directors has approved a quarterly dividend of $0.085 per share on all issued and outstanding common shares which will be payable on June 15, 2011, to shareholders of record on May 31, 2011. RESIGNATION OF BOARD MEMBERMr. Samir Manji, Chairman of the Board, announces the resignation of Mr. Al Mawani as director and chair of the Audit Committee and member of the Investment Committee effective April 12, 2011. Mr. Mawani has been a director of the Company since April 2005. Mr. Manji commented, "Over the past 6 years, Al has provided many contributions to Amica's progress and development and has been an important part of the Board and Company. His leadership, guidance and wise counsel have been a valuable asset to the Company. On behalf of the entire Board and Company, I would like to thank Al for his dedication and commitment to Amica and wish him the very best in his upcoming position as President and CEO of Calloway REIT."Mr. Mawani commented, "It has been a privilege to be a part of Amica's Board and serve its shareholders. The Board has played a significant role in helping Amica grow its asset base and management platform." RESULTS CONFERENCE CALL Amica has scheduled a conference call to discuss the results on Wednesday, April 13th, 2011 at 10:00 am Pacific Time (1:00 pm Eastern Time). To access the call, dial (647) 438-4398 (Local/International access) or 1-866-971-7629 (North American toll-free access). To access a replay of the call, which will be available until April 16th, 2011, dial (416) 915-1035 or toll-free 1-866-245-6755 (Passcode: 940905). A slide presentation to accompany management's comments during the conference call will be available. To view the slides, access Amica's website at www.amica.ca and click on "Investor Relations" – "Webcasts". Please log on at least 15 minutes before the call commences. The unaudited interim consolidated financial statements of the Company for the three and nine month period ended February 28, 2011 and the management's discussion and analysis are available on SEDAR at www.sedar.com and available on the Company's website at www.amica.ca. FINANCIAL HIGHLIGHTSCONSOLIDATED BALANCE SHEET HIGHLIGHTSFebruary 28, 2011May 31, 2010(Expressed in thousands of Canadian dollars)$$ASSETSProperties and co-tenancy investments237,101144,510Cash and cash equivalents1,4548,212Mortgages, loans, other receivables, and other assets31,03632,620Total assets269,591185,342LIABILITIESMortgages and other debt payable183,127103,714Payables and accrued liabilities9,7866,745Future income taxes5,9935,491Total liabilities198,906115,950EQUITYShare capital and contributed surplus79,02978,225Deficit(12,590)(9,994)Shareholders' equity66,43968,231Non-controlling interest4,2461,161Total equity70,68569,392OPERATING HIGHLIGHTS3 Months Ended February 28,9 Months Ended February 28,(Expressed in thousands of Canadian dollars, except per share amounts)2011201020112010$$$$CONSOLIDATED REVENUES14,80310,14439,57330,683MANAGEMENT OPERATIONS:RevenuesManagement fees-100% owned communities (1)5645331,6601,588Management fees - less than 100% owned properties (1)9747882,7882,238Design and marketing fees - new developments--1145771,5381,3214,5624,403General and administrative expenses(1,341)(1,194)(3,924)(3,545)197127638858OWNERSHIP AND CORPORATE OPERATIONS:Retirement communities operating revenues14,1179,36037,22227,859Loss from equity-accounted investments(165)(91)(255)(169)Distributions from cost-accounted investments397114621213,9919,34037,11327,902Expenses:Retirement communities operating(9,202)(6,296)(24,543)(18,514)Corporate and ownership(665)(574)(2,058)(1,736)Fees paid to and reported in management operations(891)(608)(2,357)(1,791)3,2331,8628,1555,861EARNINGS (LOSS):EBITDA3,4301,9898,7936,719Net earnings (loss) and comprehensive income (loss) attributable to:Non-controlling interests(47)(9)(158)(72)Amica shareholders627(3,737)2,348(4,103)Basic and diluted earnings (loss) per share attributable to Amica shareholders0.03(0.22)0.12(0.25)Weighted average basic number of shares19,26316,74019,23016,504Weighted average diluted number of shares19,54216,74019,41216,504CASH FLOW:CFFO1,9501,6925,0624,444Basic and diluted CFFO per share0.100.100.260.27Weighted average basic number of shares19,26316,74019,23016,504Weighted average diluted number of shares19,54216,86419,41216,559FFO and AFFO:FFO2,6831,8645,9264,949Basic and diluted FFO per share0.140.110.310.30AFFO2,4811,8075,4424,572Basic and diluted AFFO per share0.130.110.280.28Weighted average basic number of shares19,26316,74019,23016,504Weighted average diluted number of shares19,54216,86419,41216,559(1) Management fees in respect of Amica at Villa Da Vinci have been reclassified to 100% owned communities for all periods presented as it became a 100% owned property as of December 31, 2010. ABOUT AMICA MATURE LIFESTYLES INC.Amica Mature Lifestyles Inc., a Vancouver based public company, is a leader in the management, marketing, design, development and ownership of luxury housing and services for mature lifestyles. There are 25 Amica Wellness & Vitality™ Residences, including three in pre-development. The common shares of Amica are traded on the Toronto Stock Exchange under the symbol "ACC". For more information, visit www.amica.ca. Forward-Looking InformationThis news release contains "forward-looking information" within the meaning of applicable securities laws ("forward-looking statements").These forward-looking statements are made as of the date of this news release and the Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as otherwise required by law. Users of forward-looking statements are cautioned that actual results may vary from forward-looking statements contained herein. Forward-looking statements include, but are not limited to, statements regarding the Company's growth prospects; the number of new developments it will undertake; commencing construction on one or more new developments in calendar 2011; future occupancy rates; the Company's business model and strategy going forward; anticipated future revenues and financial results; future growth and value for shareholders; MARPAS and operating income; the potential to earn future marketing bonuses and design and marketing fees; management of cash resources; dividends; the potential impact that International Financial Reporting Standards (IFRS) will have on the Company including an approximate $50 million increase in Income producing properties and the Company's plans for implementing IFRS and other similar statements concerning anticipated future events, conditions or results that are not historical facts. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". While the Company has based these forward-looking statements on its expectations about future events as at the date that such statements were prepared, the statements are not a guarantee of the Company's future performance and are subject to risks, uncertainties, assumptions and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Such factors and assumptions include, amongst others, the effects of general economic and market conditions; actions by government authorities, including the granting of zoning and other approvals and permits; uncertainties associated with potential legal proceedings and negotiations, including negotiations with respect to construction financing and debt refinancing; and misjudgements in the course of preparing forward-looking statements. In addition, there are known and unknown risk factors which could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Known risk factors include, among others, risks related to dependence on the ability of Amica's co-tenancy participants to meet their obligations; interest rate volatility in the marketplace; job actions including strikes and labour stoppages; possible liability under environmental laws and regulations, relating to removal or remediation of hazardous or toxic substances on properties owned or operated by Amica; risks associated with new developments, including cost overruns and start-up losses; the ability of seniors to pay for Amica's services; regulatory changes; risks inherent in the ownership of real property; operational risks inherent in owning and operating residences; the risks associated with global events such as infectious diseases, extreme weather conditions and natural disasters; the availability of capital to finance growth or refinance debt as it comes due; Amica's ability to attract seniors with its services and keep pace with changing consumer preferences, as well as those factors discussed in the "Risks and Uncertainties" section of this MD&A and in Amica's Annual Information Form dated August 11, 2010, filed with the Canadian Securities Administrators and available at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements, or the material factors or assumptions used to develop such forward looking statements, will prove to be accurate. Accordingly, readers should not place undue reliance on forward-looking statements.NON-GAAP FINANCIAL MEASURES This news release makes reference to the following terms: "Cash Flow From Operations" ("CFFO"), "EBTIDA", "Funds From Operations" ("FFO"), "Adjusted Funds From Operations" ("AFFO") and "MARPAS" (collectively the "Non-GAAP Measures"). These Non-GAAP Measures are not recognized under Canadian GAAP and do not have standardized meanings prescribed by Canadian GAAP. The Company considers these Non-GAAP Measures relevant in evaluating the operating and financial performance of the Company, along with Canadian GAAP measures such as net earnings (loss) and comprehensive income (loss), basic and diluted income (loss) per share and cash provided by (used in) operations. The Company's Non-GAAP Measures are defined as follows: Mature same communities: Effective June 1, 2009, mature same communities was defined by the Company to be mature communities that are classified as income-producing properties for thirteen months after the earlier of reaching 95% occupancy or 24 months of operation. MARPAS is defined by the Company as Monthly Average Revenue Per Available Suite and includes consolidated and non-consolidated communities and is equal to gross monthly revenues generated at the seniors residences divided by the number of suites available for rental. MARPAS is used by the Company to measure period-over-period performance of its properties. There is no comparable Canadian GAAP measure and the Company's MARPAS may not be comparable to similar measures used by other companies.Earnings before interest, taxes, depreciation and amortization ("EBITDA") is equal to net earnings/loss and comprehensive income/loss before the following items: (i) interest expense; (ii) income tax expense/recovery; (iii) depreciation and amortization; (iv) interest and other income; (v) fees credited to investments; (vi) unrealized interest rate swap and foreign exchange gains/losses; (vii) write-down of deposits/investments; (viii) gain on early repayment of mortgage payable; and (ix) gains/losses on fair value adjustment of investments in business combinations. EBITDA is the same as earnings/loss before other operating items as disclosed in the consolidated financial statements. EBITDA should not be considered as an alternative to net earnings/loss and comprehensive income/loss or any other measure of performance prescribed by Canadian GAAP. The Company's EBITDA may not be comparable to EBITDA used by other companies, which may be calculated differently. EBITDA is included because the Company's management believes it can be used to measure the Company's ability to service debt, fund capital expenditures and expand its business. For a reconciliation of net earnings/loss and comprehensive income/loss to EBITDA see Note 3 to the Company's Management's Discussion and Analysis for the three and nine months ended February 28, 2011. Cash Flow From Operations ("CFFO") is a supplemental Non-GAAP Measure of operating performance and is equal to net earnings/loss and comprehensive income/loss adjusted for (i) stock-based compensation; (ii) depreciation and amortization; (iii) amortization of deferred financing charges and other; (iv) future income taxes; (v) cash distributions in excess of income/loss from equity-accounted investments; (vi) accretion of discount on mortgages receivable, loans receivable and notes payable; (vii) unrealized interest rate swap and foreign exchange gains/losses; (viii) write-down of deposits/investments; (ix) gain on early repayment of mortgage payable; and (x) gains/losses on fair value adjustment of investments in business combinations. CFFO may not be comparable to similar measures presented by other entities in the same industry. Management considers CFFO to be a useful measure for reviewing the Company's operating and financial performance because, by excluding non-cash expenses and depreciation and amortization which can vary based on estimates of useful lives of real estate assets, CFFO can help to compare the operating performance of the Company between financial reporting periods and with other entities in the same industry. CFFO is equal to cash provided by/used in operations before other changes in non-cash working capital as set out in the Company's Consolidated Statements of Cash Flows. For a reconciliation of net earnings/loss and comprehensive income/loss to CFFO, see Note 1 to the Company's Management's Discussion and Analysis for the three and nine months ended February 28, 2011. Funds From Operations ("FFO") and Adjusted Funds From Operations ("AFFO") are supplementary financial measures widely used in the real estate industry and should not be considered as an alternative to net earnings/loss and comprehensive income/loss or any other measure prescribed under Canadian GAAP. While FFO and AFFO do not have any standardized meaning prescribed by Canadian GAAP, the Real Property Association of Canada ("REALpac") established a definition of FFO in its White Paper on funds from operations dated November 1, 2004 (as revised February 10, 2009), as follows: Funds From Operationsmeans net income (computed in accordance with generally accepted accounting principles), excluding gains (or losses) from sales of depreciable real estate and extraordinary items, plus depreciation and amortization, plus future income taxes and after adjustments for equity accounted for entities and non-controlling interests. Adjustments for equity accounted for entities and joint ventures and non-controlling interests are calculated to reflect funds from operations on the same basis as the consolidated properties.FFO is not intended by REALpac to be used as a measure of the cash generated by a company nor of its dividend paying capacity.As applied by the Company, FFO is defined as the Company's net earnings/loss and comprehensive income/loss adjusted for (i) deprecation and amortization on real estate assets; (ii) future income taxes; (iii) adjustments for equity accounted for entities and non-controlling interests to reflect funds from operations on the same basis as consolidated properties; (iv) the write-down of deposits/investments; (v) gains/losses on fair value adjustment of investments in business combinations; and (vi) fees and interest earned by the Company and credited to equity-accounted investments in respect of properties under development. REALpac has not established a definition of AFFO. As applied by the Company AFFO is defined as FFO less maintenance capital expenditures. Maintenance capital expenditures are funded from operating cash flow and include expenditures that are not considered to add to productive capacity, and relate more to maintaining the existing earnings capacity of our property portfolio. In contrast, stabilizing and value enhancing capital expenditures are more discretionary in nature and more focused on increasing the productivity of the property, with the goal of increasing the FFO generated by our property portfolio.FFO and AFFO may not be comparable to similar measures presented by other entities in the same industry. Management considers FFO and AFFO to be useful measures for reviewing the Company's operating and financial performance because they can help compare the operating performance of the Company between financial reporting periods and with other entities in the same industry. For a reconciliation of net earnings/loss and comprehensive income/loss to FFO and AFFO see Note 2 to the Company's Management's Discussion and Analysis for the three and nine months ended February 28, 2011.FOR FURTHER INFORMATION PLEASE CONTACT: Mr. Art AyresAmica Mature Lifestyles Inc.Chief Financial Officer(604) 630-3473a.ayres@amica.caORMs. Alyssa WilliamsAmica Mature Lifestyles Inc.Manager, Investor Communications(604) 639-2171a.williams@amica.cawww.amica.ca