/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTIBUTION TO U.S. NEWS WIRE SERVICES/
WINNIPEG, April 30, 2013 /CNW/ - Lakeview Hotel Investment Corp ("LHIC") is pleased to report its financial results for the year ended December 31, 2012. The following comments in regard to the financial results should be read in conjunction with the December 31, 2012 financial statements and Management Discussion and Analysis which are available on the SEDAR website www.sedar.com.
Lakeview Hotel Investment Corp (LHIC) experienced similar operating results in 2012 to the previous year. A small decline in room revenues was offset by a similar increase in food & beverage revenues as the benefits from the rebranding of LHIC's restaurant facilities to Roustabouts continued in 2012. Operating efficiencies that had been put in place at LHIC properties in 2010 and 2011 continued to benefit LHIC in 2012, allowing LHIC to once again generate positive numbers with respect to Funds From Operations, Adjusted Funds From Operations, and Distributable Income.
LHIC has been and remains cash flow positive. It is anticipated that any surplus cash flow will be used to reduce liabilities of the company and for capital improvements to its properties.
With a number of large infrastructure projects announced for our operating markets we are optimistic that results will improve in 2013. Our continuing positive cash flow resulted in the reduction of $ 2.7 million in mortgage debt with an expectation that figure will be increased as a result of a refinancing strategy which is currently being executed.
Following is a comparison of the operating results for the three months and year ended December 31, 2012 and the comparable periods in 2011:
| Three months ended
| Year ended
|Food & Beverage||1,139,876||1,066,840||4,156,907||3,551,892|
|Net Income (Loss)||(1,602,845)||(824,317)||(2,911,232)||(2,737,685)|
|Basic and diluted income (loss) before income tax per share||(0.082)||(0.042)||(0.149)||(0.140)|
|Reconciliation to funds from Operations|
|Amortization of income properties||1,037,640||1,281,333||4,465,987||5,498,366|
|Amortization of franchise fees and licenses||1,192||5,077||12,539||25,361|
|Loss on restructuring of convertible debentures||-||-||932,823||-|
|Compensation Costs of Stock/Unit Options||-||-||16,800||-|
|Distributions from Lakeview Flag Licensing General Partnership||56,350||384,650||493,430||791,105|
|Distributions from Lakeview Flag Management General Partnership||47,500||107,500||801,500||370,750|
|Income from Lakeview Flag Licensing General Partnership||(140,176)||(110,757)||(605,393)||(576,876)|
|Income from Lakeview Flag Management General Partnership||(112,065)||(123,702)||(469,487)||(475,800)|
|Recovery of impaired amounts previously written off||-||-||(328,495)||(283,795)|
|(Gain) loss on disposal of income properties||37,726||4,390||52,967||(2,593)|
|Funds from Operations||(674,678)||724,174||2,461,439||2,608,833|
|Basic and diluted funds from Operations per share||(0.034)||0.037||0.126||0.133|
|Contributions to reserve account||(192,806)||(141,755)||(799,993)||(1,048,345)|
|Adjusted funds from Operations||(867,484)||582,419||1,661,446||1,560,488|
|Basic and diluted adjusted funds from Operations per share||(0.044)||0.030||0.085||0.080|
|Reconciliation to distributable income|
|Accretion on debt component of convertible debentures||-||342,417||468,484||1,324,396|
|Accretion of debentures||78,591||175,922||193,925||343,876|
|Accretion of mortgages payable||328,085||71,561||584,687||249,973|
|Basic and diluted distributable income per share||(0.024)||0.060||0.149||0.178|
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]