/NOT FOR DISSEMINATION IN THE UNITED
STATES OR FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES/
WINNIPEG, Aug. 28, 2014 /CNW/ - Lakeview Hotel Investment
Corp ("LHIC") is pleased to report its financial results for the
Quarter ended June 30, 2014.
The following comments in regard to the financial results should be
read in conjunction with the June 30,
2014 financial statements and Management Discussion and
Analysis which are available on the SEDAR website
www.sedar.com.
Lakeview Hotel Investment Corp. continued to produce very solid
operating results in the second quarter of 2014. Comparing
operating results from the second quarter of 2013, Funds from
Operations (FFO) more than doubled from $518,663 to $1,138,525 as did Adjusted Funds from
Operations (AFFO) which increased from $337,014 to $949,961. Distributable income (DI) for the
quarter increased from $456,076 to
$1,008,491. The outlook for the
third quarter of 2014 remains positive with revenues anticipated to
be ahead of the revenues achieved on a comparable hotel bases in
the third quarter of 2013. Overall expectations are that the
second half of 2014 will be flat to better than the second half of
2013.
Based on the very important metrics of FFO, AFFO and DI;
Lakeview Hotel Investment Corp. has almost fully recovered from the
bottom of the market in 2009 when the economy was in recession and
when drilling activity in Alberta
and British Columbia
collapsed. Results are now comparable to those experienced in
the peak of the market in 2006 and 2007.
From the time of the collapse of the market, the company has
been struggling with financing issues. Since 2009 the
financial statements of Lakeview Hotel Investment Corp. have
classified almost all debt as current liabilities and have included
Going Concern notes questioning Lakeview's ability to meet its
obligations as they came due.
On August 25th, 2014,
Lakeview Hotel Investment Corp. completed a financing on 13 of its
hotels in Alberta and British
Columbia. The $48 million
facility was provided by a syndicate of lenders led by Alberta
Treasury Branches and included Business Development Bank of
Canada (BDC) and Roynat
Capital. The financing was for a 5 year term and at an
interest rate of 6.08%. Management is of the opinion that the
financing will allow these loans to be reclassified as long term
debt and removes the requirement for the Going Concern
classification. With financial stability in place, management
will once again be able to focus its efforts on growing the
business of Lakeview Hotel Investment Corp. instead of dealing with
financing matters.
Following is a comparison of the operating results for the three
and six months ended June 30, 2014
and the comparable period in 2013:
|
Three months
ended
June
30,
|
Six months
ended
June
30,
|
|
2014
|
2013
|
2014
|
2013
|
|
Hospitality
Revenue
|
|
|
|
|
|
Room
|
7,479,519
|
8,400,742
|
15,525,937
|
16,786,404
|
|
Food &
Beverage
|
1,121,776
|
1,116,057
|
2,283,859
|
2,237,448
|
|
Other
|
456,640
|
428,547
|
936,802
|
868,199
|
|
Total
Revenue
|
9,057,935
|
9,945,346
|
18,746,598
|
19,892,051
|
|
Expenses
|
(8,844,295)
|
(10,323,119)
|
(18,003,662)
|
(20,585,139)
|
|
Gain on sale of
income properties
|
336,223
|
6,158,120
|
1,007,514
|
6,158,120
|
|
Net income
(Loss)
|
549,863
|
5,780,347
|
1,750,450
|
5,465,032
|
|
Basic and diluted
income (loss) before income tax per share
|
0.028
|
0.296
|
0.090
|
0.279
|
|
Reconciliation to
funds from Operations
|
|
|
|
|
|
Add
(deduct)
|
|
|
|
|
|
Amortization of
income properties
|
763,664
|
975,674
|
1,520,106
|
2,005,031
|
|
Amortization of
franchise fees and licenses
|
1,192
|
1,192
|
2,384
|
2,384
|
|
Gain on sale of
income properties
|
(336,223)
|
(6,158,120)
|
(1,007,514)
|
(6,158,120)
|
|
Distributions from
Lakeview Flag Licensing General Partnership
|
259,700
|
90,650
|
401,800
|
219,030
|
|
Distributions from
Lakeview Flag Management General Partnership
|
161,250
|
89,250
|
338,750
|
196,250
|
|
Income from Lakeview
Flag Licensing General Partnership
|
(157,971)
|
(144,976)
|
(328,486)
|
(288,411)
|
|
Income from Lakeview
Flag Management General Partnership
|
(102,950)
|
(115,354)
|
(212,602)
|
(229,084)
|
|
Funds from
Operations
|
1,138,525
|
518,663
|
2,464,888
|
1,212,112
|
|
Basic and diluted
funds from Operations per share
|
0.058
|
0.027
|
0.126
|
0.062
|
|
Contributions to
reserve account
|
(188,564)
|
(181,649)
|
(351,577)
|
(370,117)
|
|
Adjusted funds from
Operations
|
949,961
|
337,014
|
2,113,311
|
841,995
|
|
Basic and diluted
adjusted funds from Operations per share
|
0.049
|
0.017
|
0.108
|
0.043
|
|
Reconciliation to
distributable income
|
|
|
|
|
|
Accretion of
debentures
|
36,116
|
75,572
|
72,559
|
151,562
|
|
Accretion of
mortgages payable
|
21,846
|
20,962
|
45,829
|
44,176
|
|
Loss on derecognition
of income properties
|
568
|
22,528
|
1,887
|
25,780
|
|
Distributable
income
|
1,008,491
|
456,076
|
2,233,586
|
1,063,513
|
|
Basic and diluted
distributable income per share
|
0.052
|
0.023
|
0.114
|
0.054
|
|
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