Lakeview Hotel Investment Corp Reports 3rd Quarter Results

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

WINNIPEG, Nov. 28, 2013 /CNW/ - Lakeview Hotel Investment Corp ("LHIC") is pleased to report its financial results for the Quarter ended September 30, 2013.  The following comments in regard to the financial results should be read in conjunction with the September 30, 2013 financial statements and Management Discussion and Analysis which are available on the SEDAR website www.sedar.com.

Lakeview Hotel Investment Corp. enjoyed much improved operating results in the third quarter of 2013.  For the three months ended September 30, 2013, Lakeview generated Funds From Operations of $2,028,716 and Adjusted Funds From Operations of $1,805,604.  This represents an approximate 30% increase from the third quarter of 2012.  Over $1.9 million of Distributable Income was generated during the quarter.  Third quarter RevPar increased to $81.73 from $77.27 in the same period in the previous year.  Significant revenue growth is being achieved in the fourth quarter of 2013.  This trend is expected to continue into the first quarter of 2014.

The debt restructuring that Lakeview Hotel Investment Corp. has been focusing on throughout 2013 has continued into the fourth quarter of the year.  It is management's belief that significant progress has been made although there is nothing definitive to announce at this time.  Both much improved operating results and debt reduction through the sale of assets have contributed to the progress.  In addition to the sale of the Holiday Inn Express, Sherwood Park, earlier this year, Lakeview has entered into a definitive Purchase and Sale Agreement for the sale of the Lakeview Inn & Suites, Fredericton, New Brunswick.  This sale is scheduled to close in December of this year.  An additional asset sale is anticipated to take place early in 2014.

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 Nine months ended
 

September 30

September 30

  2013   2012   2013   2012
Hospitality Revenue              
  Room 9,424,621   9,551,733   26,211,025   26,568,515
  Food & Beverage 1,152,520   958,794   3,389,968   3,017,031
  Other 464,749   560,734   1,332,948   1,453,577
Total Revenue 11,041,890   11,071,261   30,933,941   31,039,123
Expenses 9,735,629   10,290,473   30,320,768   32,347,510
Gain on sale of income properties (87,882)   -   6,070,238   -
Net income (Loss) 1,218,379   780,788   6,683,411   (1,308,387)
Basic and diluted income (loss) before income tax per share/unit 0.062   0.040   0.342   (0.067)
Reconciliation to funds from Operations              
Add (deduct)              
Amortization of income properties 633,779   1,038,538   2,638,810   3,428,347
Amortization of franchise fees and licenses 1,192   1,193   3,576   11,347
Loss on restructuring of convertible debentures -   4,233   -   932,823
Gain on sale of income properties 87,882   -   (6,070,238)   -
Distributions from Lakeview Flag Licensing General Partnership 198,450   159,250   417,480   437,080
Distributions from Lakeview Flag Management General Partnership 146,250   192,500   342,500   754,000
Income from Lakeview Flag Licensing General Partnership (151,977)   (169,642)   (440,388)   (465,217)
Income from Lakeview Flag Management General Partnership (127,319)   (127,407)   (356,403)   (357,422)
Compensation costs of stock/unit options 22,080   -   22,080   16,800
Recovery of impaired amounts previously written off -   (328,495)   -   (328,495)
Funds from Operations 2,028,716   1,550,958   3,240,828   3,120,876
Basic and diluted funds from Operations per share/unit 0.104   0.079   0.166   0.160
Contributions to reserve account 223,112   188,571   593,229   607,187
Adjusted funds from Operations 1,805,604   1,362,387   2,647,599   2,513,689
Basic and diluted adjusted funds from Operations per share/unit 0.092   0.070   0.135   0.129
Reconciliation to distributable income              
Accretion of debt component of convertible debentures -   98,003   -   468,484
Accretion of debentures 77,564   53,212   229,126   115,334
Accretion of mortgages payable 21,178   66,789   65,354   256,602
Loss on derecognition of income properties 2,473   13,071   28,253   15,241
Distributable income 1,906,819   1,593,462   2,970,332   3,369,350
Basic and diluted distributable income per share/unit 0.097   0.081   0.152   0.172
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:

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


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