Lakeview Hotel Investment Corp Announces First Quarter Results

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WINNIPEG, May 30, 2016 /CNW/ - Lakeview Hotel Investment Corp ("LHIC") is pleased to report its financial results for the Quarter ended March 31, 2016.  The following comments in regard to the financial results should be read in conjunction with the March 31, 2016 financial statements and Management Discussion and Analysis which are available on the SEDAR website www.sedar.com.

While the precipitous decline in oil prices began in the fourth quarter of 2014, it wasn't until the second quarter of 2015 that the decline had its full impact on drilling activity in western Canada and thus on the operating results at Lakeview's hotels. The relatively strong operating results at Lakeview's hotels that lasted through the first quarter of 2015 made for a difficult year-over-year comparison with the results from the first quarter of 2016.

Going forward, the year-over-year, quarterly comparisons should be much less challenging.  As oil prices strengthen and drilling activity resumes in western Canada, results will once again trend upwards.  Timing of this increased activity is still difficult to determine.

The sale of the Days Inn Ottawa Hotel, which will close in the second quarter of 2016, will provide Lakeview Hotel Investment Corp. sufficient working capital to meet all of its obligations into 2017 and hopefully until market conditions improve sufficiently to make Lakeview cash flow positive.  Lakeview's next financing activity is scheduled for the 4th quarter of 2016 when the loan on the Four Points in Prince George matures.

Following is a comparison of the operating results for the three months ended March 31, 2016 and the comparable period in 2015:

		Three months ended March 31
		2016	2015
		$	$
Hospitality Revenue
	Room	4,431,423	6,898,981
	Food & Beverage	724,678	1,038,102
	Other	294,107	416,695
Total Revenue		5,450,208	8,353,778
Expenses		(7,462,894)	(9,759,844)
Net Income (Loss)		(2,012,686)	(1,406,066)
Basic and diluted income (loss) per share		(0.103)	(0.072)
Reconciliation to funds from operations
Add (deduct)
Amortization of income properties		729,869	759,306
Amortization of franchise fees		1,192	1,192
Distributions from Lakeview Flag Licensing General Partnership		-	121,030
Distributions from Lakeview Flag Management General Partnership		-	100,250
Income from Lakeview Flag Licensing General Partnership		(101,659)	(142,724)
Income from Lakeview Flag Management General Partnership		(62,627)	(95,085)
Unrealized loss on change in fair value of interest rate swap		134,180	1,076,666
Amortization of discount on bankers' acceptance		168,066	198,712
Funds from operations		(1,143,665)	613,281
Basic and diluted funds from operations per share		(0.058)	0.031
Contributions to reserve account		(99,653)	(158,297)
Adjusted funds from operations		(1,243,318)	454,984
Basic and diluted adjusted funds from operations per share		(0.064)	0.023
Reconciliation to distributable income
Accretion of other long-term debt		51,627	54,311
Accretion of debentures		19,882	39,648
Accretion of mortgages payable		24,455	24,755
Loss on derecognition of income properties		-	6,781
Distributable income		(1,147,354)	580,479
Basic and diluted distributable income per share		(0.059)	0.030
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

Avrum Senensky, Executive Vice President, Tel: [phone], Fax: [phone], Email [email protected]