Lakeview Hotel Investment Corp Announces Year End Results

/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES/

WINNIPEG, April 30, 2014 /CNW/ - Lakeview Hotel Investment Corp ("LHIC") is pleased to report its financial results for the Year ended December 31, 2013.  The following comments in regard to the financial results should be read in conjunction with the December 31, 2013 financial statements and Management Discussion and Analysis which are available on the SEDAR website www.sedar.com.

The strong upward trend in operating results that Lakeview Hotel Investment Corp. has been experiencing continued in the fourth quarter of 2013.  For the three months ended December 31, 2013, Lakeview generated Funds From Operations of $995,387 and Adjusted Funds from Operations of $797,911. This is in comparison to losses in the fourth quarter of 2012 of $712,404 and $905,210 respectively.  Distributable income increased to $900,391 from a loss of $460,808 in the fourth quarter of 2012. Fourth quarter Occupancy increased to 63.8% from 56.8% in the same period in the previous year.  Revenue per Available Room (Rev Par) increased to $73.67 from $66.24.  Significant revenue growth has been achieved in the first quarter of 2014 compared to the same period in 2013 and this trend is continuing into the second quarter of the year. 

The debt restructuring that Lakeview Hotel Investment Corp. has been focusing on throughout 2013 is continuing and management is continuing to assess various strategies to improve cash flows and adjust its capital structure.  Operating results are significantly better resulting in much stronger cash flow and debt service coverage.  The sale of hotel properties in Sherwood Park, Alberta and Fredericton, New Brunswick in 2013 and in Vaughan, Ontario in January, 2014 have resulted in meaningful reductions in the overall debt level for Lakeview Hotel Investment Corp. as well as debt as a percentage of equity.

The disposition of assets in New Brunswick and Ontario has resulted in all but one of Lakeview's hotels to be located in Western Canada.  Going forward, once the debt restructuring situation is resolved, management intends to focus on Western Canadian opportunities to continue to grow a strong and efficient regional hotel brand. 

Following is a comparison of the operating results for the three months and year ended December 31, 2013 and the comparable period in 2012:


Three months ended

December 31

Year ended

December 31


2013

2012

2013

2012


$

$

$

$

Hospitality Revenue





     Room

8,304,129

8,188,728

34,515,154

34,757,243

     Food & Beverage

1,243,674

1,139,876

4,633,642

4,156,907

     Other

576,858

438,848

1,909,806

1,892,425

Total Revenue

10,124,661

9,767,452

41,058,602

40,806,575

Expenses

12,714,485

11,370,297

43,035,253

43,717,807

Gain on sale of income properties

499,164

-

6,569,402

-

Net Income (Loss)

(2,090,660)

(1,602,845)

4,592,751

(2,911,232)

Basic and diluted income (loss) before income tax per share

(0.107)

(0.082)

0.235

(0.149)

Reconciliation to funds from Operations





Add (deduct)





Amortization of income properties

886,805

1,037,640

3,525,615

4,465,987

Amortization of franchise fees and licenses

1,192

1,192

4,768

12,539

Write Down of Income Property

2,800,000

-

2,800,000

-

Loss on restructuring of convertible debentures

-

-

-

932,823

Compensation Costs of Stock/Unit Options

-

-

22,080

16,800

Distributions from Lakeview Flag Licensing General Partnership

152,880

56,350

570,360

493,430

Distributions from Lakeview Flag Management General Partnership

122,000

47,500

464,500

801,500

Income from Lakeview Flag Licensing General Partnership

(263,877)

(140,176)

(704,265)

(605,393)

Income from Lakeview Flag Management General Partnership

(113,789)

(112,065)

(470,192)

(469,487)

Recovery of impaired amounts previously written off

-

-

-

(328,495)

Gain on sale of income properties

(499,164)

0

(6,569,402)

0

Funds from Operations

995,387

(712,404)

4,236,215

2,408,472

Basic and diluted funds from Operations per share

0.051

(0.036)

0.217

0.123

Contributions to reserve account

(197,476)

(192,806)

(790,705)

(799,993)

Adjusted funds from Operations

797,911

(905,210)

3,445,510

1,608,479

Basic and diluted adjusted funds from Operations per share

0.041

(0.046)

0.176

0.082

Reconciliation to distributable income





Accretion on debt component of convertible debentures

-

-

-

468,484

Accretion of debentures

77,934

78,591

307,060

193,925

Accretion of mortgages payable

22,596

328,085

87,950

584,687

Loss on derecognition of income properties

1,950

37,726

30,203

52,967

Distributable income

900,391

(460,808)

3,870,723

2,908,542

Basic and diluted distributable income per share

0.046

(0.024)

0.198

0.149

Dividends/Distributions

0

0

0

0






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 Corp

For further information: Keith Levit, President, or Avrum Senensky, Executive Vice President, Tel: (204) 947-1161, Fax: (204) 957-1697, Email asenensky@lakeviewhotels.com