Lakeview Hotel Investment Corp Announces Second Quarter Results

WINNIPEG, Aug. 28, 2015 /CNW/ - Lakeview Hotel Investment Corp ("LHIC") is pleased to report its financial results for the Quarter ended June 30, 2015. The following comments in regard to the financial results should be read in conjunction with the June 30, 2015 financial statements and Management Discussion and Analysis which are available on the SEDAR website www.sedar.com.

The decline in drilling activity in Western Canada which began late in 2014 continued through the second quarter of 2015 and negatively impacted Lakeview Hotel Investment Corps' operating results. Less crew business at many of the properties resulted in occupancy declining to 51.69% compared to the second quarter of 2014 when occupancy was 63.51%. The second quarter is historically the weakest quarter for Lakeview Hotel Investment Corp. because of road restrictions which have an adverse effect on drilling activity. The results this year were unusually weak.

The decline in drilling activity in Western Canada will continue to have a negative impact on Lakeview Hotel Investment Corp. and there remains a lack of visibility on when this activity may resume. The actions taken over the past two years to refinance debt and reduce leverage will help Lakeview Hotel Investment Corp. withstand the current downturn and be positioned for growth when market conditions improve.

Following is a comparison of the operating results for the three and six months ended June 30, 2015 and the comparable periods in 2014:


Three months ended

June 30,

Six months ended

June 30,


2015

2014

2015

2014

Hospitality Revenue





Room

6,147,647

7,479,519

13,046,628

15,525,937

Food & Beverage

936,497

1,121,776

1,974,599

2,283,859

Other

394,597

456,640

811,292

936,802

Total Revenue

7,478,741

9,057,935

15,832,519

18,746,598

Expenses

(8,081,923)

(8,844,295)

(17,841,767)

(18,003,662)

Gain on sale of income properties

-

336,223

-

1,007,514

Net income (Loss)

(603,182)

549,863

(2,009,248)

1,750,450

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

(0.031)

0.028

(0.103)

0.090

Reconciliation to funds from Operations





Add (deduct)





Amortization of income properties

762,421

763,664

1,521,727

1,520,106

Amortization of franchise fees

1,192

1,192

2,384

2,384

Gain on sale of income properties

-

(336,223)

-

(1,007,514)

Distributions from Lakeview Flag Licensing General Partnership

26,950

259,700

147,980

401,800

Distributions from Lakeview Flag Management General Partnership

27,000

161,250

127,250

338,750

Income from Lakeview Flag Licensing General Partnership

(134,849)

(157,971)

(277,573)

(328,486)

Income from Lakeview Flag Management General Partnership

(85,279)

(102,950)

(180,364)

(212,602)

Unrealized loss on change in fair value of interest rate swap

(264,618)

-

812,048

-

Amortization of discount on bankers' acceptance

-

-

198,712

-

Funds from Operations

(270,365)

1,138,525

342,916

2,464,888

Basic and diluted funds from Operations per share

(0.014)

0.058

0.018

0.126

Contributions to reserve account

(229,820)

(188,564)

(388,117)

(351,577)

Adjusted funds from Operations

(500,185)

949,961

(45,201)

2,113,311

Basic and diluted adjusted funds from Operations per share

(0.026)

0.049

(0.002)

0.108

Reconciliation to distributable income





Accretion of debentures

39,433

36,116

79,081

72,559

Accretion of mortgages payable

22,741

21,846

47,496

45,829

Loss on derecognition of income properties

10,124

568

16,905

1,887

Accretion of other long-term debt

46,377

-

100,688

-

Distributable income

(381,510)

1,008,491

198,969

2,233,586

Basic and diluted distributable income per share

(0.020)

0.052

0.01

0.114

Distributions

-

-

-

-






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: Avrum Senensky, Executive Vice President, Tel: (204) 947-1161, Fax: (204) 957-1697, Email asenensky@lakeviewhotels.com

RELATED LINKS
http://www.lakeviewhotels.com

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