Lakeview Hotel Investment Corp Reports Second Quarter Results
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WINNIPEG, Aug. 28, 2013 /CNW/ - Lakeview Hotel Investment Corp ("LHIC") is pleased to report its financial results for the Quarter ended June 30, 2013. The following comments in regard to the financial results should be read in conjunction with the June 30, 2013 financial statements and Management Discussion and Analysis which are available on the SEDAR website www.sedar.com.
Lakeview Hotel Investment Corp once again generated positive Funds from Operations, Adjusted Funds from Operations, and Distributable Income in the second quarter of 2013. Over $450,000 of distributable income was generated during the quarter. Net income for the quarter was skewed by a $6.16 million gain on the sale of the Holiday Inn Express in Sherwood Park. Operating results continue to improve and net of Sherwood Park, third quarter RevPar is expected to exceed third quarter RevPar generated in 2012.
Lakeview Hotel Investment Corp continues to focus on the execution of its plan to restructure existing debt that will replace a significant portion of its existing first mortgage loans. The effective interest rate and actual debt service payments, once the refinancing is finalized, will be substantially lower than present. This is expected to have a significant and positive impact on operating results. As part of the restructuring, additional assets will be sold to further reduce debt and leverage.
Following is a comparison of the operating results for the three and six months ended June 30, 2013 and the comparable period in 2012:
Three months ended
Six months ended
|Food & Beverage||1,116,057||1,032,563||2,237,448||2,058,237|
|Gain on sale of income properties||6,158,120||-||6,158,120||-|
|Net income (Loss)||5,780,347||(1,012,336)||5,465,032||(2,089,175)|
|Basic and diluted income (loss) before income tax per share/unit||0.296||(0.052)||0.279||(0.107)|
|Reconciliation to funds from Operations|
|Amortization of income properties||975,674||1,178,515||2,005,031||2,389,809|
|Amortization of franchise fees and licenses||1,192||5,077||2,384||10,154|
|Loss on restructuring of convertible debentures||-||-||-||928,590|
|Gain on sale of income properties||(6,158,120)||-||(6,158,120)||-|
|Distributions from Lakeview Flag Licensing General Partnership||90,650||78,400||219,030||277,830|
|Distributions from Lakeview Flag Management General Partnership||89,250||346,250||196,250||561,500|
|Income from Lakeview Flag Licensing General Partnership||(144,976)||(135,588)||(288,411)||(295,575)|
|Income from Lakeview Flag Management General Partnership||(115,354)||(108,029)||(229,084)||(230,015)|
|Compensation costs of stock/unit options||-||16,800||-||16,800|
|Funds from Operations||518,663||369,089||1,212,112||1,569,918|
|Basic and diluted funds from Operations per share/unit||0.027||0.019||0.062||0.080|
|Contributions to reserve account||(181,649)||(221,212)||(370,117)||(418,616)|
|Adjusted funds from Operations||337,014||147,877||841,995||1,151,302|
|Basic and diluted adjusted funds from Operations per share/unit||0.017||0.008||0.043||0.059|
|Reconciliation to distributable income|
|Accretion of debt component of convertible debentures||-||97,169||-||370,481|
|Accretion of debentures||75,572||31,134||151,562||62,122|
|Accretion of mortgages payable||20,962||78,927||44,176||189,813|
|Loss on derecognition of income properties||22,528||2,170||25,780||2,170|
|Basic and diluted distributable income per share/unit||0.023||0.018||0.054||0.091|
Lakeview Hotel Investment Corp is listed on the TSX Venture Exchange under the symbol "LHR". Lakeview Hotel Investment Corp receives income from ownership, management and licensing of hotel properties.
The TSX Venture Exchange nor its Regulation Service Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Lakeview Hotel Investment CorpFor further information:
Keith Levit, President, or Avrum Senensky, Executive Vice President
Tel: (204) 947-1161, Fax: (204) 957-1697, Email firstname.lastname@example.org