Lakeview Hotel Investment Corp Reports Second Quarter Results

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WINNIPEG, Aug. 28, 2013 /CNW/ - Lakeview Hotel Investment Corp ("LHIC") is pleased to report its financial results for the Quarter ended June 30, 2013.  The following comments in regard to the financial results should be read in conjunction with the June 30, 2013 financial statements and Management Discussion and Analysis which are available on the SEDAR website www.sedar.com.

Lakeview Hotel Investment Corp once again generated positive Funds from Operations, Adjusted Funds from Operations, and Distributable Income in the second quarter of 2013.  Over $450,000 of distributable income was generated during the quarter.  Net income for the quarter was skewed by a $6.16 million gain on the sale of the Holiday Inn Express in Sherwood Park.  Operating results continue to improve and net of Sherwood Park, third quarter RevPar is expected to exceed third quarter RevPar generated in 2012.

Lakeview Hotel Investment Corp continues to focus on the execution of its plan to restructure existing debt that will replace a significant portion of its existing first mortgage loans.  The effective interest rate and actual debt service payments, once the refinancing is finalized, will be substantially lower than present.  This is expected to have a significant and positive impact on operating results.  As part of the restructuring, additional assets will be sold to further reduce debt and leverage.

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 June 30		Six months ended June 30
		2013	2012	2013	2012
Hospitality Revenue
	Room	8,400,742	7,943,492	16,786,404	17,016,782
	Food & Beverage	1,116,057	1,032,563	2,237,448	2,058,237
	Other	428,547	415,126	868,199	892,843
Total Revenue		9,945,346	9,391,181	19,892,051	19,967,862
Expenses		10,323,119	10,403,517	20,585,139	22,057,037
Gain on sale of income properties		6,158,120	-	6,158,120	-
Net income (Loss)		5,780,347	(1,012,336)	5,465,032	(2,089,175)
Basic and diluted income (loss) before income tax per share/unit		0.296	(0.052)	0.279	(0.107)
Reconciliation to funds from Operations
Add (deduct)
Amortization of income properties		975,674	1,178,515	2,005,031	2,389,809
Amortization of franchise fees and licenses		1,192	5,077	2,384	10,154
Loss on restructuring of convertible debentures		-	-	-	928,590
Gain on sale of income properties		(6,158,120)	-	(6,158,120)	-
Distributions from Lakeview Flag Licensing General Partnership		90,650	78,400	219,030	277,830
Distributions from Lakeview Flag Management General Partnership		89,250	346,250	196,250	561,500
Income from Lakeview Flag Licensing General Partnership		(144,976)	(135,588)	(288,411)	(295,575)
Income from Lakeview Flag Management General Partnership		(115,354)	(108,029)	(229,084)	(230,015)
Compensation costs of stock/unit options		-	16,800	-	16,800
Funds from Operations		518,663	369,089	1,212,112	1,569,918
Basic and diluted funds from Operations per share/unit		0.027	0.019	0.062	0.080
Contributions to reserve account		(181,649)	(221,212)	(370,117)	(418,616)
Adjusted funds from Operations		337,014	147,877	841,995	1,151,302
Basic and diluted adjusted funds from Operations per share/unit		0.017	0.008	0.043	0.059
Reconciliation to distributable income
Accretion of debt component of convertible debentures		-	97,169	-	370,481
Accretion of debentures		75,572	31,134	151,562	62,122
Accretion of mortgages payable		20,962	78,927	44,176	189,813
Loss on derecognition of income properties		22,528	2,170	25,780	2,170
Distributable income		456,076	357,277	1,063,513	1,775,888
Basic and diluted distributable income per share/unit		0.023	0.018	0.054	0.091
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]