Lakeview Hotel Investment Corp Reports 3rd Quarter Results

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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
		September 30			September 30
		2013		2012		2013		2012
Hospitality Revenue
	Room	9,424,621		9,551,733		26,211,025		26,568,515
	Food & Beverage	1,152,520		958,794		3,389,968		3,017,031
	Other	464,749		560,734		1,332,948		1,453,577
Total Revenue		11,041,890		11,071,261		30,933,941		31,039,123
Expenses		9,735,629		10,290,473		30,320,768		32,347,510
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
Add (deduct)
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
Distributable income		1,906,819		1,593,462		2,970,332		3,369,350
Basic and diluted distributable income per share/unit		0.097		0.081		0.152		0.172
Distributions		-		-		-		-

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]