WINNIPEG, Nov. 29, 2017 /CNW/ – Lakeview Hotel Investment Corp (“LHIC”) is pleased to report its financial results for the Quarter ended September 30, 2017. The following comments in regard to the financial results should be read in conjunction with the September 30, 2017 financial statements and Management Discussion and Analysis which are available on the SEDAR website www.sedar.com.
A flattening out of oil prices in the third quarter of 2017 resulted in third quarter operating results being similar to the third quarter of 2016. Small improvements of under $300,000 were achieved in each of Funds from Operations, Adjusted Funds from Operations, and Distributable Income; but all metrics remained slightly negative. Fourth quarter results are expected to be similar to the fourth quarter of 2016.
Oil prices have started to increase in recent weeks. The price of a barrel of West Texas Intermediate in Canadian dollars is at a three year high. It is anticipated that an agreement amongst oil producing countries to cut output will be extended through to the end of 2018. Extended production cuts may remove any remaining glut in oil supply. Management of Lakeview Hotel Investment Corp is cautiously optimistic that a stable, prolonged period of oil prices at or above current levels will result in increased resource based activity in Alberta and northern British Columbia which will in turn lead to increased hotel occupancy and improved operating results for the company in 2018.
Following is a comparison of the operating results for the three and nine months ended September 30, 2017 and the comparable period in 2016:
|
Three months ended |
Nine months ended |
||||
|
September 30 |
September 30 |
||||
|
2017 |
2016 |
2017 |
2016 |
||
|
Hospitality Revenue |
|||||
|
Room |
5,483,429 |
5,467,713 |
13,698,645 |
14,768,496 |
|
|
Food & Beverage |
601,087 |
575,396 |
1,824,025 |
2,002,789 |
|
|
Other |
316,192 |
330,274 |
838,389 |
930,081 |
|
|
Total Revenue |
6,400,708 |
6,373,383 |
16,361,059 |
17,701,366 |
|
|
Expenses |
6,478,009 |
7,234,372 |
18,971,796 |
21,943,772 |
|
|
(Loss) Gain on sale of income properties |
(39,443) |
1,613,480 |
(24,342) |
4,347,629 |
|
|
Net income (loss) |
(116,744) |
752,491 |
(2,635,079) |
105,223 |
|
|
Basic and diluted income (loss) before income tax per share |
(0.006) |
0.038 |
(0.135) |
0.005 |
|
|
Reconciliation to funds from operations |
|||||
|
Add (deduct) |
|||||
|
Amortization of income properties |
508,996 |
636,534 |
1,551,244 |
2,021,107 |
|
|
Amortization of franchise fees |
374 |
374 |
1,122 |
2,485 |
|
|
Loss (Gain) on sale of income properties |
39,443 |
(1,613,480) |
24,342 |
(4,347,629) |
|
|
Distributions from Lakeview Flag Management General Partnership |
– |
12,000 |
18,000 |
12,000 |
|
|
Income from Lakeview Flag Licensing General Partnership |
(149,964) |
(149,192) |
(379,005) |
(361,574) |
|
|
Income from Lakeview Flag Management General Partnership |
(73,136) |
(73,372) |
(186,596) |
(203,742) |
|
|
Unrealized loss (gain) on change in fair value of interest rate swap |
(324,718) |
(155,837) |
(797,388) |
(144,128) |
|
|
Forgiveness of debt |
– |
200,000 |
– |
200,000 |
|
|
Amortization of discount on bankers’ acceptance |
– |
– |
– |
168,066 |
|
|
Funds from operations |
(115,749) |
(390,482) |
(2,403,360) |
(2,548,192) |
|
|
Basic and diluted funds from operations per share |
(0.006) |
(0.02) |
(0.123) |
(0.13) |
|
|
Contributions to reserve account |
(126,279) |
(116,145) |
(318,332) |
(317,903) |
|
|
Adjusted funds from operations |
(242,028) |
(506,627) |
(2,721,692) |
(2,866,095) |
|
|
Basic and diluted adjusted funds from operations per share |
(0.012) |
(0.026) |
(0.139) |
(0.147) |
|
|
Reconciliation to distributable income |
|||||
|
Loss on derecognition of income properties |
2,075 |
49,442 |
15,105 |
51,578 |
|
|
Loss on derecognition of Franchise Fees |
– |
– |
– |
2,726 |
|
|
Loss of derecognition of Financial Liability |
– |
– |
– |
19,804 |
|
|
Accretion of debentures |
43,274 |
20,338 |
128,217 |
60,595 |
|
|
Accretion of mortgages payable |
1,122 |
15,708 |
3,438 |
63,681 |
|
|
Accretion of other long-term debt |
84,524 |
45,105 |
254,730 |
149,219 |
|
|
Distributable income |
(111,033) |
(376,034) |
(2,320,202) |
(2,518,492) |
|
|
Basic and diluted distributable income per share |
(0.006) |
(0.019) |
(0.119) |
(0.129) |
|
|
Distributions |
– |
– |
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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
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