/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES/
WINNIPEG, Aug. 29, 2017 /CNW/ – Lakeview Hotel Investment Corp (“LHIC”) is pleased to report its financial results for the Quarter ended June 30, 2017. The following comments in regard to the financial results should be read in conjunction with the June 30, 2017 financial statements and Management Discussion and Analysis which are available on the SEDAR website www.sedar.com.
Challenges faced by Lakeview Hotel Investment Corp. in the second quarter of 2017 resulted in a slight weakening in operating results when compared to the second quarter of 2016. These challenges included the impact of prolonged seasonal road restrictions and the non-recurrence of some property specific demand generators. While commodity prices have improved from 2016, a flattening out of oil prices is expected to contribute to third quarter results being comparable to the third quarter of 2016. The third quarter of the year is typically the strongest quarter of the year for Lakeview Hotel Investment Corp. and it was the strongest quarter in 2016.
Following is a comparison of the operating results for the three and six months ended June 30, 2017 and the comparable period in 2016:
|
Three months ended |
Six months ended |
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|
June 30, |
June 30, |
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|
2017 |
2016 |
2017 |
2016 |
||
|
Hospitality Revenue |
|||||
|
Room |
3,686,209 |
4,869,360 |
8,215,216 |
9,300,783 |
|
|
Food & Beverage |
596,080 |
702,715 |
1,222,938 |
1,427,393 |
|
|
Other |
252,295 |
305,700 |
522,197 |
599,807 |
|
|
Total Revenue |
4,534,584 |
5,877,775 |
9,960,351 |
11,327,983 |
|
|
Expenses |
(5,996,750) |
(7,246,506) |
(12,493,787) |
(14,709,400) |
|
|
Gain on sale of income properties |
15,101 |
2,734,149 |
15,101 |
2,734,149 |
|
|
Net income (Loss) |
(1,447,065) |
1,365,418 |
(2,518,335) |
(647,268) |
|
|
Basic and diluted income (loss) before income tax per share |
(0.074) |
0.07 |
(0.129) |
(0.033) |
|
|
Reconciliation to funds from Operations |
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|
Add (deduct) |
|||||
|
Amortization of income properties |
520,022 |
654,704 |
1,042,248 |
1,384,573 |
|
|
Amortization of franchise fees |
374 |
919 |
748 |
2,111 |
|
|
Gain on sale of income properties |
(15,101) |
(2,734,149) |
(15,101) |
(2,734,149) |
|
|
Distributions from Lakeview Flag Management General Partnership |
– |
– |
18,000 |
– |
|
|
Income from Lakeview Flag Licensing General Partnership |
(101,822) |
(110,723) |
(229,041) |
(212,382) |
|
|
Income from Lakeview Flag Management General Partnership |
(51,689) |
(67,743) |
(113,460) |
(130,370) |
|
|
Unrealized loss (gain) on change in fair value of interest rate swap |
(354,582) |
(122,471) |
(472,670) |
11,709 |
|
|
Amortization of discount on bankers’ acceptance |
– |
– |
– |
168,066 |
|
|
Funds from Operations |
(1,449,863) |
(1,014,045) |
(2,287,611) |
(2,157,710) |
|
|
Basic and diluted funds from Operations per share |
(0.074) |
(0.052) |
(0.117) |
(0.11) |
|
|
Contributions to reserve account |
(86,373) |
(102,105) |
(192,053) |
(201,758) |
|
|
Adjusted funds from Operations |
(1,536,236) |
(1,116,150) |
(2,479,664) |
(2,359,468) |
|
|
Basic and diluted adjusted funds from Operations per share |
(0.079) |
(0.057) |
(0.127) |
(0.121) |
|
|
Reconciliation to distributable income |
|||||
|
Accretion of debentures |
42,702 |
20,375 |
84,943 |
40,257 |
|
|
Accretion of mortgages payable |
1,105 |
23,518 |
2,316 |
47,973 |
|
|
Loss on derecognition of income properties |
317 |
2,136 |
13,030 |
2,136 |
|
|
Loss on derecognition of Franchise Fees |
– |
2,726 |
– |
2,726 |
|
|
Loss on derecognition of Financial Liability |
– |
19,804 |
– |
19,804 |
|
|
Accretion of other long-term debt |
88,086 |
52,487 |
170,206 |
104,114 |
|
|
Distributable income |
(1,404,026) |
(995,104) |
(2,209,169) |
(2,142,458) |
|
|
Basic and diluted distributable income per share |
(0.072) |
(0.051) |
(0.113) |
(0.11) |
|
|
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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