Lakeview Hotel Investment Corp Announces Year End Results

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WINNIPEG, April 30, 2014 /CNW/ - Lakeview Hotel Investment Corp ("LHIC") is pleased to report its financial results for the Year ended December 31, 2013.  The following comments in regard to the financial results should be read in conjunction with the December 31, 2013 financial statements and Management Discussion and Analysis which are available on the SEDAR website www.sedar.com.

The strong upward trend in operating results that Lakeview Hotel Investment Corp. has been experiencing continued in the fourth quarter of 2013.  For the three months ended December 31, 2013, Lakeview generated Funds From Operations of $995,387 and Adjusted Funds from Operations of $797,911. This is in comparison to losses in the fourth quarter of 2012 of $712,404 and $905,210 respectively.  Distributable income increased to $900,391 from a loss of $460,808 in the fourth quarter of 2012. Fourth quarter Occupancy increased to 63.8% from 56.8% in the same period in the previous year.  Revenue per Available Room (Rev Par) increased to $73.67 from $66.24.  Significant revenue growth has been achieved in the first quarter of 2014 compared to the same period in 2013 and this trend is continuing into the second quarter of the year. 

The debt restructuring that Lakeview Hotel Investment Corp. has been focusing on throughout 2013 is continuing and management is continuing to assess various strategies to improve cash flows and adjust its capital structure.  Operating results are significantly better resulting in much stronger cash flow and debt service coverage.  The sale of hotel properties in Sherwood Park, Alberta and Fredericton, New Brunswick in 2013 and in Vaughan, Ontario in January, 2014 have resulted in meaningful reductions in the overall debt level for Lakeview Hotel Investment Corp. as well as debt as a percentage of equity.

The disposition of assets in New Brunswick and Ontario has resulted in all but one of Lakeview's hotels to be located in Western Canada.  Going forward, once the debt restructuring situation is resolved, management intends to focus on Western Canadian opportunities to continue to grow a strong and efficient regional hotel brand. 

Following is a comparison of the operating results for the three months and year ended December 31, 2013 and the comparable period in 2012:

	Three months ended December 31		Year ended December 31
	2013	2012	2013	2012
	$	$	$	$
Hospitality Revenue
Room	8,304,129	8,188,728	34,515,154	34,757,243
Food & Beverage	1,243,674	1,139,876	4,633,642	4,156,907
Other	576,858	438,848	1,909,806	1,892,425
Total Revenue	10,124,661	9,767,452	41,058,602	40,806,575
Expenses	12,714,485	11,370,297	43,035,253	43,717,807
Gain on sale of income properties	499,164	-	6,569,402	-
Net Income (Loss)	(2,090,660)	(1,602,845)	4,592,751	(2,911,232)
Basic and diluted income (loss) before income tax per share	(0.107)	(0.082)	0.235	(0.149)
Reconciliation to funds from Operations
Add (deduct)
Amortization of income properties	886,805	1,037,640	3,525,615	4,465,987
Amortization of franchise fees and licenses	1,192	1,192	4,768	12,539
Write Down of Income Property	2,800,000	-	2,800,000	-
Loss on restructuring of convertible debentures	-	-	-	932,823
Compensation Costs of Stock/Unit Options	-	-	22,080	16,800
Distributions from Lakeview Flag Licensing General Partnership	152,880	56,350	570,360	493,430
Distributions from Lakeview Flag Management General Partnership	122,000	47,500	464,500	801,500
Income from Lakeview Flag Licensing General Partnership	(263,877)	(140,176)	(704,265)	(605,393)
Income from Lakeview Flag Management General Partnership	(113,789)	(112,065)	(470,192)	(469,487)
Recovery of impaired amounts previously written off	-	-	-	(328,495)
Gain on sale of income properties	(499,164)	0	(6,569,402)	0
Funds from Operations	995,387	(712,404)	4,236,215	2,408,472
Basic and diluted funds from Operations per share	0.051	(0.036)	0.217	0.123
Contributions to reserve account	(197,476)	(192,806)	(790,705)	(799,993)
Adjusted funds from Operations	797,911	(905,210)	3,445,510	1,608,479
Basic and diluted adjusted funds from Operations per share	0.041	(0.046)	0.176	0.082
Reconciliation to distributable income
Accretion on debt component of convertible debentures	-	-	-	468,484
Accretion of debentures	77,934	78,591	307,060	193,925
Accretion of mortgages payable	22,596	328,085	87,950	584,687
Loss on derecognition of income properties	1,950	37,726	30,203	52,967
Distributable income	900,391	(460,808)	3,870,723	2,908,542
Basic and diluted distributable income per share	0.046	(0.024)	0.198	0.149
Dividends/Distributions	0	0	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

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