WINNIPEG, MB, July 28, 2020 /CNW/ – Lakeview Hotel Investment Corp (“LHIC”) is pleased to report its financial results for the Quarter ended March 31, 2020. The following comments in regard to the financial results should be read in conjunction with the March 31, 2020 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 and the COVID-19 pandemic.
The spread of COVID-19 during the first quarter, hotel guests and travellers perception of the danger of COVID-19 and government responses to this pandemic have had a significant effect on the operating results of LHIC. It is expected that occupancy results will continue to decline in the near future as the COVID-19 outbreak continues to impact the Canadian economy.
At some point the effects of COVID-19 on the economy and consumer confidence will diminish and business will improve again. However, at this stage of the pandemic crisis there is no clear visibility as to when this will occur.
Following is a comparison of the operating results for the three months ended March 31, 2020 and the comparable period in 2019:
|
Three months ended March 31 |
||
|
2020 |
2019 |
|
|
$ |
$ |
|
|
Hospitality Revenue |
||
|
Room |
1,875,258 |
2,543,471 |
|
Food & Beverage |
437,892 |
516,802 |
|
Other |
125,398 |
185,682 |
|
Total Revenue |
2,438,548 |
3,245,955 |
|
Expenses |
(5,002,145) |
(5,366,049) |
|
Gain (loss) on sale of income properties |
– |
1,366,737 |
|
Net Loss |
(2,563,597) |
(753,357) |
|
Basic and diluted net loss per share |
(0.131) |
(0.039) |
|
Reconciliation to funds from operations |
||
|
Add (deduct) |
||
|
Amortization of income properties |
87,504 |
380,973 |
|
Amortization of franchise fees |
4,117 |
374 |
|
Provision for impairment of income properties |
328,513 |
– |
|
Income from Lakeview Flag Licensing General Partnership |
(67,131) |
(90,938) |
|
Income from Lakeview Flag Management General Partnership |
(26,918) |
(36,678) |
|
Unrealized loss on change in fair value of interest rate swap |
– |
59,588 |
|
Gain on sale of income properties |
– |
(1,366,737) |
|
Funds from operations |
(2,237,512) |
(1,806,775) |
|
Basic and diluted funds from operations per share |
(0.114) |
(0.092) |
|
Contributions to reserve account |
(39,572) |
(44,854) |
|
Adjusted funds from operations |
(2,277,084) |
(1,851,629) |
|
Basic and diluted adjusted funds from operations per share |
(0.116) |
(0.095) |
Lakeview Hotel Investment Corp is listed on the TSX Venture Exchange under the symbol “LHR”. Lakeview Hotel Investment Corp received 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
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