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Lakeview Hotel Investment Corp Announces Second Quarter Results

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Lakeview Hotel Investment Corp Announces Second Quarter Results

Canada NewsWire

WINNIPEG, Aug. 30, 2018 /CNW/ - Lakeview Hotel Investment Corp ("LHIC") is pleased to report its financial results for the Quarter ended June 30, 2018.  The following comments in regard to the financial results should be read in conjunction with the September 30, 2018 financial statements and Management Discussion and Analysis which are available on the SEDAR website www.sedar.com.

Operating results for Lakeview Hotel Investment Corp were much improved in the 2nd quarter of 2018.  While operations remained challenged in many of the smaller, resource based markets, a significant turnaround was achieved at our Calgary property.  The first quarter of 2018 saw a $542,000 decrease in room revenues at Calgary when compared to the first quarter of 2017, primarily as the result of the loss of a large corporate client.  Focused sales efforts and aggressive marketing of the Calgary property replaced the lost business and resulted in the second quarter of 2018 seeing room revenues exceeding the room revenues from the second quarter of 2017 by over $77,000.

The focused sales efforts that began in the Calgary property have been extended to other hotels in the Lakeview Hotel Investment Corp portfolio and are anticipated to impact results going later in 2018.

While higher oil prices have yet to translate into increased activity in many markets, largely due to refining and transportation constraints in Alberta, more robust results are expected in the second half of the year.  Major projects such as the $40 billion LNG Canada project in Kitimat, the $10.7 billion site C dam in Fort Saint John and the $3.5 billion Heartland Petrochemical Complex in Strathcona are all expected to contribute to improved operating results going forward.

Following is a comparison of the operating results for the three and six months ended June 30, 2018 and the comparable period in 2017:



Three months ended

Six months ended







June 30,

June 30,



2018

2017

2018

2017

Hospitality Revenue







Room


3,423,285

3,686,209

6,647,173

8,215,216


Food & Beverage


615,589

596,080

1,166,490

1,222,938


Other


233,274

252,295

454,390

522,197

Total Revenue


4,272,148

4,534,584

8,268,053

9,960,351

Expenses


(6,038,547)

(5,996,750)

(11,900,865)

(12,493,787)

Gain on sale of income properties


6,728

15,101

6,728

15,101

Net income (Loss)


(1,759,671)

(1,447,065)

(3,626,084)

(2,518,335)

Basic and diluted income (loss) before income tax per share


(0.090)

(0.074)

(0.185)

(0.129)

Reconciliation to funds from Operations






Add (deduct)






Amortization of income properties


472,286

520,022

943,652

1,042,248

Amortization of franchise fees


374

374

748

748

Gain on sale of income properties


(6,728)

(15,101)

(6,728)

(15,101)

Distributions from Lakeview Flag Management General Partnership


-

-

-

18,000

Income from Lakeview Flag Licensing General Partnership


(94,268)

(101,822)

(188,150)

(229,041)

Income from Lakeview Flag Management General Partnership


(48,921)

(51,689)

(94,705)

(113,460)

Unrealized loss (gain) on change in fair value of interest rate swap


(24,919)

(354,582)

(68,448)

(472,670)

Amortization of discount on bankers' acceptance


-

-

-

-

Funds from Operations


(1,461,847)

(1,449,863)

(3,039,715)

(2,287,611)

Basic and diluted funds from Operations per share


(0.075)

(0.074)

(0.155)

(0.117)

Contributions to reserve account


(80,250)

(86,373)

(148,692)

(192,053)

Adjusted funds from Operations


(1,542,097)

(1,536,236)

(3,188,407)

(2,479,664)

Basic and diluted adjusted funds from Operations per share


(0.079)

(0.079)

(0.163)

(0.127)

Reconciliation to distributable income






Accretion of debentures


206,184

42,702

346,975

84,943

Accretion of mortgages payable


1,127

1,105

2,236

2,316

Loss on derecognition of income properties


1,303

317

1,303

13,030

Accretion of other long-term debt


98,787

88,086

196,409

170,206

Loss on modification of financial liability


35,441

-

35,441

-

Distributable income


(1,199,255)

(1,404,026)

(2,606,043)

(2,209,169)

Basic and diluted distributable income per share


(0.061)

(0.072)

(0.133)

(0.113)

Distributions












 

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/August2018/30/c6325.html

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