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WINNIPEG, May 30, 2013 /CNW/ - Lakeview Hotel Investment Corp ("LHIC") is pleased to report its financial results for the Quarter ended March 31, 2013. The following comments in regard to the financial results should be read in conjunction with the March 31, 2013 financial statements and Management Discussion and Analysis which are available on the SEDAR website www.sedar.com.
Lakeview Hotel Investment Corp. generated positive Funds from Operations and Adjusted Funds from Operations in the first quarter of 2013. This was the 6th time in the last 7 quarters that positive results were achieved. Over $600,000 of distributable income was generated during the quarter.
Lakeview Hotel Investment Corp. continues to focus on the execution of its plan to restructure existing debt and to reduce overall leverage. The first significant accomplishment in the execution of this plan was the sale of the Holiday Inn Express hotel in Sherwood Park, Alberta for $15,150,000. The sale is set to close on June 20th. The hotel was originally acquired in June, 2006 for $11,800,000. Additional asset sales are expected to take place in 2013.
Management of Lakeview Hotel Investment Corp. expect to announce in the coming weeks details of a refinancing plan that will replace a significant portion of its existing first mortgage loans. Expectations are that the effective interest rate and actual debt service payments will be substantially lower than present. With positive cash flow, lower debt service payments and reduced leverage, management believes it will soon be able to turn its attention from restructuring debt to creating shareholder value.
Following is a comparison of the operating results for the three months ended March 31, 2013 and the comparable period in 2012:
| Three months ended
|Food & Beverage||1,121,391||1,025,674|
|Net Income (Loss)||(315,315)||(1,076,839)|
|Basic and diluted income (loss) before income tax per share/unit||(0.016)||(0.055)|
|Reconciliation to funds from Operations|
|Amortization of income properties||1,029,357||1,211,294|
|Amortization of franchise fees and licenses||1,192||5,077|
|Distributions from Lakeview Flag Licensing General Partnership||128,380||199,430|
|Distributions from Lakeview Flag Management General Partnership||107,000||215,250|
|Income from Lakeview Flag Licensing General Partnership||(143,435)||(159,987)|
|Income from Lakeview Flag Management General Partnership||(113,730)||(121,986)|
|Loss on restructuring of convertible debentures||-||928,590|
|Loss on disposal of income properties||3,252||-|
|Funds from Operations||696,701||1,200,829|
|Basic and diluted funds from Operations per share/unit||0.036||0.061|
|Contributions to reserve account||(188,468)||(197,404)|
|Adjusted funds from Operations||508,233||1,003,425|
|Basic and diluted adjusted funds from Operations per share/unit||0.026||0.051|
|Reconciliation to distributable income|
|Accretion on debt component of convertible debentures||-||273,312|
|Accretion of debentures||75,990||30,988|
|Accretion of mortgages payable||23,214||110,886|
|Basic and diluted distributable income per share/unit||0.031||0.073|
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@example.com