Lakeview Hotel Investment Corp Announces First Quarter Results

WINNIPEG, May 28, 2015 /CNW/ - Lakeview Hotel Investment Corp ("LHIC") is pleased to report its financial results for the Quarter ended March 31, 2015.  The following comments in regard to the financial results should be read in conjunction with the March 31, 2015 financial statements and Management Discussion and Analysis which are available on the SEDAR website www.sedar.com.

The sharp decline in oil prices that began late in the fourth quarter of 2014 negatively impacted Lakeview Hotel Investment Corps' operating results in the first quarter of 2015.  Less crew business at many of the properties resulted in occupancy declining to 58.14% compared to the first quarter of 2014 when occupancy was a very strong 69.23%.

While relative to the first quarter of 2014 the results were weak, the first quarter of 2014 was a very strong quarter and makes for difficult comparisons.  On an historic basis, the first quarter of 2015 represented the 9^th consecutive quarter where Lakeview Hotel Investment Corp. achieved positive results in all of its important operating metrics.  The company generated $613,281 in Funds from Operations; $454,984 in Adjusted Funds from Operations; and $580,479 in Distributable Income.  The average daily room rate of $123.61 achieved in the first quarter of 2015 was the highest average daily rate of any quarter since the company began operations in 2004.

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

Following is a comparison of the operating results for the three months ended March 31, 2015 and the comparable period in 2014:

		Three months ended March 31
		2015	2014
		$	$
Hospitality Revenue
	Room	6,898,981	8,046,418
	Food & Beverage	1,038,102	1,162,083
	Other	416,695	480,162
Total Revenue		8,353,778	9,688,663
Expenses		(9,759,844)	(9,159,367)
Gain on sale of income properties		-	671,291
Net Income (Loss)		(1,406,066)	1,200,587
Basic and diluted income (loss) per share		(0.072)	0.061
Reconciliation to funds from operations
Add (deduct)
Amortization of income properties		759,306	756,442
Amortization of franchise fees		1,192	1,192
Distributions from Lakeview Flag Licensing General Partnership		121,030	142,100
Distributions from Lakeview Flag Management General Partnership		100,250	177,500
Income from Lakeview Flag Licensing General Partnership		(142,724)	(170,515)
Income from Lakeview Flag Management General Partnership		(95,085)	(109,652)
Gain on sale of income properties		-	(671,291)
Unrealized loss on change in fair value of interest rate swap		1,076,666	-
Amortization of discount on bankers' acceptance		198,712	-
Funds from operations		613,281	1,326,363
Basic and diluted funds from operations per share		0.031	0.068
Contributions to reserve account		(158,297)	(163,013)
Adjusted funds from operations		454,984	1,163,350
Basic and diluted adjusted funds from operations per share		0.023	0.059
Reconciliation to distributable income
Accretion of other long-term debt		54,311	-
Accretion of debentures		39,648	36,443
Accretion of mortgages payable		24,755	23,983
Loss on derecognition of income properties		6,781	1,319
Distributable income		580,479	1,225,095
Basic and diluted distributable income per share		0.030	0.063
Distributions		0	0

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

Avrum Senensky, Executive Vice President, Tel: [phone], Fax: [phone], Email [email protected]