Lakeview Hotel Investment Corp Announces Third Quarter Results

WINNIPEG, Nov. 29, 2016 /CNW/ - Lakeview Hotel Investment Corp ("LHIC") is pleased to report its financial results for the Quarter ended September 30, 2016.  The following comments in regard to the financial results should be read in conjunction with the September 30, 2016 financial statements and Management Discussion and Analysis which are available on the SEDAR website www.sedar.com.

Challenging times for Lakeview Hotel Investment Corp. continue as the prolonged slowdown in drilling activity in Alberta and Northern British Columbia persists.  Lakeview continues to focus on reducing costs and increased operating efficiencies.  At the same time Lakeview is investing a minimum of 5% of revenues into repairs, maintenance and capital improvements at its properties to avoid deferred maintenance issues and to allow the properties to remain competitive.

While times are challenging, management of Lakeview Hotel Investment Corp. has been successful in its debt restructuring efforts.  In recent weeks Lakeview has (1) refinanced the first mortgage on its Prince George property, extending the maturity until October, 2021, and reducing the monthly debt service payments; has (2) extended the maturity of the debentures secured by the Prince George property for a two year period, eliminating the quarterly principal payments; and (3) this week has extended the Series C and Series D debentures until August, 2019 at a reduced interest rate, with all interest accruing and payable on maturity.  The debt restructuring means that Lakeview does not face any debt maturities until October, 2018 when the Prince George debenture matures.  Most debt matures in 2019. 

Following is a comparison of the operating results for the three and nine months ended September 30, 2016 and the comparable period in 2015:

		Three months ended		Nine months ended
		September 30		September 30
		2016	2015	2016	2015
Hospitality Revenue
	Room	5,467,713	6,889,447	14,768,496	19,936,075
	Food & Beverage	575,396	836,696	2,002,789	2,811,295
	Other	330,274	403,891	930,081	1,215,183
Total Revenue		6,373,383	8,130,034	17,701,366	23,962,553
Expenses		7,234,372	8,899,793	21,943,772	26,741,560
Gain on sale of income properties		1,613,480	-	4,347,629	-
Net income (loss)		752,491	(769,759)	105,223	(2,779,007)
Basic and diluted income (loss) before income tax per share		0.038	(0.039)	0.005	(0.142)
Reconciliation to funds from operations
Add (deduct)
Amortization of income properties		636,534	762,829	2,021,107	2,284,556
Amortization of franchise fees		374	1,192	2,485	3,576
Gain on sale of income properties		(1,613,480)	-	(4,347,629)	-
Distributions from Lakeview Flag Licensing General Partnership		-	32,830	-	180,810
Distributions from Lakeview Flag Management General Partnership		12,000	27,500	12,000	154,750
Income from Lakeview Flag Licensing General Partnership		(149,192)	(164,432)	(361,574)	(442,005)
Income from Lakeview Flag Management General Partnership		(73,372)	(93,046)	(203,742)	(273,410)
Unrealized loss (gain) on change in fair value of interest rate swap		(155,837)	205,468	(144,128)	1,017,516
Forgiveness of debt		200,000	-	200,000	-
Amortization of discount on bankers' acceptance		-	-	168,066	198,712
Funds from operations		(390,482)	2,582	(2,548,192)	345,498
Basic and diluted funds from operations per share		(0.02)	0.000	(0.13)	0.018
Contributions to reserve account		(116,145)	(250,025)	(317,903)	(638,142)
Adjusted funds from operations		(506,627)	(247,443)	(2,866,095)	(292,644)
Basic and diluted adjusted funds from operations per share		(0.026)	(0.013)	(0.147)	(0.015)
Reconciliation to distributable income
Loss on derecognition of income properties		49,442	90,578	51,578	107,483
Loss on derecognition of Franchise Fees		-	-	2,726	-
Loss of derecognition of Financial Liability		-	-	19,804	-
Accretion of debentures		20,338	40,118	60,595	119,199
Accretion of mortgages payable		15,708	22,963	63,681	70,459
Accretion of other long-term debt		45,105	38,534	149,219	139,222
Distributable income		(376,034)	(55,250)	(2,518,492)	143,719
Basic and diluted distributable income per share		(0.019)	(0.003)	(0.129)	0.007
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

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