WINNIPEG, May 28, 2015 /CNW/ – Lakeview Hotel Investment Corp (“LHIC”) is pleased to report its financial results for the Quarter ended March 31, 2015. The following comments in regard to the financial results should be read in conjunction with the March 31, 2015 financial statements and Management Discussion and Analysis which are available on the SEDAR website www.sedar.com.
The sharp decline in oil prices that began late in the fourth quarter of 2014 negatively impacted Lakeview Hotel Investment Corps’ operating results in the first quarter of 2015. Less crew business at many of the properties resulted in occupancy declining to 58.14% compared to the first quarter of 2014 when occupancy was a very strong 69.23%.
While relative to the first quarter of 2014 the results were weak, the first quarter of 2014 was a very strong quarter and makes for difficult comparisons. On an historic basis, the first quarter of 2015 represented the 9th consecutive quarter where Lakeview Hotel Investment Corp. achieved positive results in all of its important operating metrics. The company generated $613,281 in Funds from Operations; $454,984 in Adjusted Funds from Operations; and $580,479 in Distributable Income. The average daily room rate of $123.61 achieved in the first quarter of 2015 was the highest average daily rate of any quarter since the company began operations in 2004.
The decline in drilling activity in Western Canada will continue to have a negative impact on Lakeview Hotel Investment Corp. and at this point there is a lack of visibility on when this activity may resume. The actions taken over the past two years to refinance debt and reduce leverage leave Lakeview Hotel Investment Corp. well positioned to withstand the current downturn and poised for growth when market conditions improve.
Following is a comparison of the operating results for the three months ended March 31, 2015 and the comparable period in 2014:
|
Three months ended March 31 |
|||
|
2015 |
2014 |
||
|
$ |
$ |
||
|
Hospitality Revenue |
|||
|
Room |
6,898,981 |
8,046,418 |
|
|
Food & Beverage |
1,038,102 |
1,162,083 |
|
|
Other |
416,695 |
480,162 |
|
|
Total Revenue |
8,353,778 |
9,688,663 |
|
|
Expenses |
(9,759,844) |
(9,159,367) |
|
|
Gain on sale of income properties |
– |
671,291 |
|
|
Net Income (Loss) |
(1,406,066) |
1,200,587 |
|
|
Basic and diluted income (loss) per share |
(0.072) |
0.061 |
|
|
Reconciliation to funds from operations |
|||
|
Add (deduct) |
|||
|
Amortization of income properties |
759,306 |
756,442 |
|
|
Amortization of franchise fees |
1,192 |
1,192 |
|
|
Distributions from Lakeview Flag Licensing General Partnership |
121,030 |
142,100 |
|
|
Distributions from Lakeview Flag Management General Partnership |
100,250 |
177,500 |
|
|
Income from Lakeview Flag Licensing General Partnership |
(142,724) |
(170,515) |
|
|
Income from Lakeview Flag Management General Partnership |
(95,085) |
(109,652) |
|
|
Gain on sale of income properties |
– |
(671,291) |
|
|
Unrealized loss on change in fair value of interest rate swap |
1,076,666 |
– |
|
|
Amortization of discount on bankers’ acceptance |
198,712 |
– |
|
|
Funds from operations |
613,281 |
1,326,363 |
|
|
Basic and diluted funds from operations per share |
0.031 |
0.068 |
|
|
Contributions to reserve account |
(158,297) |
(163,013) |
|
|
Adjusted funds from operations |
454,984 |
1,163,350 |
|
|
Basic and diluted adjusted funds from operations per share |
0.023 |
0.059 |
|
|
Reconciliation to distributable income |
|||
|
Accretion of other long-term debt |
54,311 |
– |
|
|
Accretion of debentures |
39,648 |
36,443 |
|
|
Accretion of mortgages payable |
24,755 |
23,983 |
|
|
Loss on derecognition of income properties |
6,781 |
1,319 |
|
|
Distributable income |
580,479 |
1,225,095 |
|
|
Basic and diluted distributable income per share |
0.030 |
0.063 |
|
|
Distributions |
0 |
0 |
|
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
