Lakeview Hotel Investment Corp Announces Second Quarter Results

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

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

Related Links

http://www.lakeviewhotels.com