Lakeview Hotel Investment Corp Announces Second Quarter 2020 Results

WINNIPEG, MB, Sept. 30, 2020 /CNW/ - Lakeview Hotel Investment Corp ("LHIC") is pleased to report its financial results for the Quarter ended June 30, 2020. The following comments in regard to the financial results should be read in conjunction with the June 30, 2020 financial statements and Management Discussion and Analysis which are available on the SEDAR website www.sedar.com.

The effects of COVID on hotel occupancies for the second quarter were severe. As this pandemic continues, it is not clear how long it will remain and the extent that it will continue to affect the tourism and hospitality sector. LHIC continues to safeguard employees and customer safety, reduce and/or defer expenses and minimize non-essential expenditures. At this time it is very difficult to determine how long it will take for business levels to normalize.

Following is a comparison of the operating results for the three and six months ended June 30, 2020 compared to the results of operations for the comparable period in 2019:

	Three months ended June 30,		Six months ended June 30,
	2020	2019	2020	2019
Hospitality Revenue
Room	1,072,350	3,158,156	2,947,608	5,701,627
Food & Beverage	103,519	577,473	541,411	1,094,275
Other	465,674	216,904	591,072	402,586
Total Revenue	1,641,543	3,952,533	4,080,091	7,198,488
Expenses	(3,265,942)	(7,006,061)	(8,268,087)	(12,372,110)
Gain on sale of income properties	-	-	-	1,366,737
Net income (Loss)	(1,624,399)	(3,053,528)	(4,187,996)	(3,806,885)
Basic and diluted income (loss) before income tax per share	(0.083)	(0.156)	(0.214)	(0.195)
Reconciliation to funds from Operations
Add (deduct)
Amortization of income properties	83,409	355,964	170,913	736,937
Amortization of franchise fees	4,116	374	8,233	748
Gain on sale of income properties	7	-	-	(1,366,737)
Amortization of right-of–use assets	-	3,322	-	7,149
Income from Lakeview Flag Licensing General Partnership	(18,226)	(92,016)	(85,357)	(182,954)
Loss (income) from Lakeview Flag Management General
Partnership	-	(44,751)	(26,911)	(81,429)
Unrealized loss (gain) on change in fair value of interest rate swap	-	(2,096)	-	57,492
Provision for impairment of income properties	-	1,160,248	328,513	1,160,248
Funds from Operations	(1,555,093)	(1,672,483)	(3,792,605)	(3,475,431)
Basic and diluted funds from Operations per share	(0.080)	(0.086)	(0.194)	(0.178)
Contributions to reserve account	(29,963)	(66,102)	(69,535)	(110,956)
Adjusted funds from Operations	(1,585,056)	(1,738,585)	(3,862,140)	(3,586,387)
Basic and diluted adjusted funds from Operations per share	(0.081)	(0.089)	(0.197)	(0.183)

Lakeview Hotel Investment Corp is listed on the TSX Venture Exchange under the symbol "LHR".  Lakeview Hotel Investment Corp received 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

Rudy Beyer, Chief Financial Officer, Tel: [phone], Fax: [phone], Email [email protected]

Related Links

http://www.lakeviewhotels.com