Lakeview Hotel Investment Corp Announces First Quarter Results
WINNIPEG, May 30, 2017 /CNW/ - Lakeview Hotel Investment Corp ("LHIC") is pleased to report its financial results for the Quarter ended March 31, 2017. The following comments in regard to the financial results should be read in conjunction with the March 31, 2017 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 first quarter of 2017 when compared to the first quarter results of the previous year. While sentiment is improving, there is still an overall lack of visibility on the level of improvement going forward. It does not appear that first quarter momentum will carry through into the second quarter. This is in large part due to the impact of seasonal road restrictions, but also relates to some property specific demand generators in the second quarter of 2016 that are no longer present. Visibility is expected to improve in the third quarter of 2017 which is typically the strongest quarter of the year for Lakeview Hotel Investment Corp.
Following is a comparison of the operating results for the three months ended March 31, 2017 and the comparable period in 2016:
| Three months ended March 31 |
|||
| 2017 |
2016 |
||
| $ |
$ |
||
| Hospitality Revenue |
|||
| Room |
4,529,007 |
4,431,423 |
|
| Food & Beverage |
626,858 |
724,678 |
|
| Other |
269,902 |
294,107 |
|
| Total Revenue |
5,425,767 |
5,450,208 |
|
| Expenses |
(6,497,037) |
(7,462,894) |
|
| Net Loss |
(1,071,270) |
(2,012,686) |
|
| Basic and diluted net loss per share |
(0.055) |
(0.103) |
|
| Reconciliation to funds from operations |
|||
| Add (deduct) |
|||
| Amortization of income properties |
522,226 |
729,869 |
|
| Amortization of franchise fees |
374 |
1,192 |
|
| Distributions from Lakeview Flag Management General Partnership |
18,000 |
- |
|
| Income from Lakeview Flag Licensing General Partnership |
(127,219) |
(101,659) |
|
| Income from Lakeview Flag Management General Partnership |
(61,771) |
(62,627) |
|
| Unrealized loss (gain) on change in fair value of interest rate swap |
(118,088) |
134,180 |
|
| Amortization of discount on bankers' acceptance |
- |
168,066 |
|
| Funds from operations |
(837,748) |
(1,143,665) |
|
| Basic and diluted funds from operations per share |
(0.043) |
(0.058) |
|
| Contributions to reserve account |
(105,680) |
(99,653) |
|
| Adjusted funds from operations |
(943,428) |
(1,243,318) |
|
| Basic and diluted adjusted funds from operations per share |
(0.048) |
(0.064) |
|
| Reconciliation to distributable income |
|||
| Accretion of other long-term debt |
82,120 |
51,627 |
|
| Accretion of debentures |
42,241 |
19,882 |
|
| Accretion of mortgages payable |
1,211 |
24,455 |
|
| Loss on derecognition of income properties |
12,713 |
- |
|
| Distributable income |
(805,143) |
(1,147,354) |
|
| Basic and diluted distributable income per share |
(0.041) |
(0.059) |
|
| 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: (204) 947-1161, Fax: (204) 957-1697, Email [email protected]
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