WINNIPEG, Aug. 29, 2019 /CNW/ - Lakeview Hotel
Investment Corp ("LHIC") is pleased to report its financial results
for the Quarter ended June 30,
2019. The following comments in regard to the financial
results should be read in conjunction with the June 30, 2019 financial statements and Management
Discussion and Analysis which are available on the SEDAR website
www.sedar.com.
The outlook for Lakeview Hotel Investment Corp (LHIC) is
directly tied to the outlook for the energy sector in Alberta and northern British
Columbia. While the sector remains challenged, there are early
indications that activity levels may be improving in at least 2 of
the markets that LHIC operates in. Demand for accommodations
in Fort Saint John is expected to
accelerate related to BC Hydro's Site C Dam project beyond.
The demand is expected to greatly exceed the capacity of camps set
up to house workers. In Fort Saskatchewan development of the
Heartland Petrochemical Complex continues with the promise of
robust demand for hotel rooms in the region.
Near term challenges remain. However, LHIC has taken
positive steps to address these challenges. Maturity of the
first mortgage loan with its primary lending syndicate was extended
from August 22, 2019 until
December 31, 2019, giving LHIC time
to repay that loan. Through the sale of assets, including the
Lakeview Signature Inn in Calgary
and the Lakeview Inn and Suites in Fort
Nelson, and through refinancing efforts that are currently
underway, LHIC fully expects to repay the lending syndicate by the
end of the year. LHIC's Series C and Series D debentures also
were to come due on August 22,
2019. The maturity of the debentures was successfully
extended until August 31, 2022.
Given these extensions and the continued cooperation of related
parties, LHIC remains confident that it will be able to address and
overcome the challenges it faces.
Following is a comparison of the operating results for the three
and six months ended June 30, 2019
and the comparable period in 2018:
|
Three months
ended
|
Six months
ended
|
|
|
|
June
30,
|
June
30,
|
|
2019
|
2018
|
2019
|
2018
|
|
Hospitality
Revenue
|
|
|
|
|
|
Room
|
3,158,156
|
3,423,285
|
5,701,627
|
6,647,173
|
|
Food &
Beverage
|
577,473
|
615,589
|
1,094,275
|
1,166,490
|
|
Other
|
216,904
|
233,274
|
402,586
|
454,390
|
|
Total
Revenue
|
3,952,533
|
4,272,148
|
7,198,488
|
8,268,053
|
|
Expenses
|
(7,006,061)
|
(6,038,547)
|
(12,372,110)
|
(11,900,865)
|
|
Gain on sale of
income properties
|
-
|
6,728
|
1,366,737
|
6,728
|
|
Net income
(Loss)
|
(3,053,528)
|
(1,759,671)
|
(3,806,885)
|
(3,626,084)
|
|
Basic and diluted
income (loss) before income tax per share
|
(0.156)
|
(0.090)
|
(0.195)
|
(0.185)
|
|
Reconciliation to
funds from Operations
|
|
|
|
|
|
Add
(deduct)
|
|
|
|
|
|
Amortization of
income properties
|
355,964
|
472,286
|
736,937
|
943,652
|
|
Amortization of
franchise fees
|
374
|
374
|
748
|
748
|
|
Gain on sale of
income properties
|
-
|
(6,728)
|
(1,366,737)
|
(6,728)
|
|
Amortization of
right-of–use assets
|
3,322
|
-
|
7,149
|
-
|
|
Income from Lakeview
Flag Licensing General Partnership
|
(92,016)
|
(94,268)
|
(182,954)
|
(188,150)
|
|
Income from Lakeview
Flag Management General Partnership
|
(44,751)
|
(48,921)
|
(81,429)
|
(94,705)
|
|
Unrealized loss
(gain) on change in fair value of interest rate swap
|
(2,096)
|
(24,919)
|
57,492
|
(68,448)
|
|
Provision for
impairment of income properties
|
1,160,248
|
-
|
1,160,248
|
-
|
|
Funds from
Operations
|
(1,672,483)
|
(1,461,847)
|
(3,475,431)
|
(3,039,715)
|
|
Basic and diluted
funds from Operations per share
|
(0.086)
|
(0.075)
|
(0.178)
|
(0.155)
|
|
Contributions to
reserve account
|
(66,102)
|
(80,250)
|
(110,956)
|
(148,692)
|
|
Adjusted funds from
Operations
|
(1,738,585)
|
(1,542,097)
|
(3,586,387)
|
(3,188,407)
|
|
Basic and diluted
adjusted funds from Operations per share
|
(0.089)
|
(0.079)
|
(0.183)
|
(0.163)
|
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