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-ofâuse 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
View original content: http://www.newswire.ca/en/releases/archive/August2019/29/c6847.html