16  Management Discussion & Analysis Annual Report  2013  agreement dated June 9, 2011, the LifeMark distribution will not be subject to potential decreases and instead is fixed at a 4% increase  each period ending June 30 and the distributions are now supported by Centric, who report to Alaris quarterly. LifeMark provides integrated health, medical and rehabilitation services through over 120 facilities across Canada. While  physiotherapy and rehabilitation services have historically seen few significant year over year swings, changes in reimbursement rates  from government agencies can produce some volatility. As the distribution reset is fixed at an increase of 4%, Alaris will not be affected  by annual swings in LifeMark’s revenue.  Based on unaudited financial statements for the nine months ended September 30, 2013, Centric’s revenues are approximately 6%  ahead and EBITDA is flat compared to the prior year period results. Centric currently has the option to repurchase the remaining  partnership units owned by the Corporation at a fixed price of $35.5 million. If the units are not repurchased by June 13, 2014, the  $35.5 million will increase by 4%. Distributions for Lifemark are currently scheduled at $4.04 million for 2014. The fair value of the LifeMark units remains unchanged at $35.5 million as Centric has the option to repurchase the remaining units  for that amount and has expressed its intention to do so in the next year. The earnings coverage ratio for LifeMark is in the 1.0x – 1.5x  range and has improved (increased) in 2013.  LMS  End of theRoll  KMH  Since 2010, the Corporation has acquired $54.8 million of preferred partnership units in KMH Limited Partnership in five separate  contributions. Same clinic sales is the top-line performance metric on which the annual distributions to the Corporation are reset and  The End of the Roll transaction is recorded as an intangible asset and is reviewed regularly for impairment. No impairment exists at  this time. The earnings coverage ratio for End of the Roll continues to be greater than 2.0x consistent with the prior year.  Based on unaudited financial statements for the eight months ended November 30, 2013, revenues and EBITDA are over 10% ahead  of prior year results. Annualized distributions are currently scheduled at $1.14 million for 2014 but will reset on May 1, 2014 based on  the April 30, 2014 same store sales results.  End of the Roll is a Canada-wide retail flooring franchise system and completed its eighth fiscal year as an Alaris partner on April 30,  2013. The renovation industry was relatively stable year over year and End of the Roll’s results reflect that.  The Corporation’s original contribution in End of the Roll was in 2005. Same store sales results are the top-line performance metric on  which the annual payments to the Corporation are reset.  Because of the continued strong performance of LMS (four straight years of revenue, gross profit and EBITDA growth), the fair value  of the LMS units was increased at September 30, 2013 to $29.3 million. With the conversion of the $3 million promissory note into  additional preferred units in LMS on December 31, 2013, the fair value is now $32.5 million. The earnings coverage ratio for LMS is in  the 1.0x – 1.5x range and has improved significantly in 2013 since being slightly below 1.0x in 2012.  Based on unaudited financial statements, for the year ended December 31, 2013, total gross profit dollars were more than 15% ahead  of the prior year. Including the estimated reset for 2014 and the conversion of the promissory note, distributions are currently expected  to be $3.5 million for 2014. The reset for 2014 will be confirmed upon completion of the audited financial statements.  LMS is a western Canadian based concrete reinforcing steel fabricator and installer. Over the course of 2013 LMS continued to see  improvement in volumes and work on hand across each of its residential, commercial and infrastructure business segments. Margins  remain under pressure from a competitive landscape but have stabilized in recent years and show continued improvement. The  Company benefited from increased volume and consistent margins over the past few years, and based on work on hand, LMS  management expects continued improvement into its 2014 fiscal year.  The Corporation’s original contribution into LMS was in 2007. On December 31, 2013, the Corporation converted, at its option, $3  million of the $6 million in promissory notes outstanding into additional preferred partnership units. The yield on those units will be 16%  plus the percentage change in gross profit for the year ended December 31, 2013. Total gross profit is the top-line performance metric  on which the annual distributions to the Corporation are reset. A portion of the annual distributions from LMS will reset on January 1,  2014 and the remainder on April 1, 2014 based on the December 2013 results. 