/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|
|Food & Beverage||1,152,520||958,794||3,389,968||3,017,031|
|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|
|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|
|Basic and diluted distributable income per share/unit||0.097||0.081||0.152||0.172|
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 [email protected]