Lakeview Hotel Investment Corp Announces Third Quarter Results

WINNIPEG, Nov. 29, 2017 /CNW/ - Lakeview Hotel Investment Corp ("LHIC") is pleased to report its financial results for the Quarter ended September 30, 2017.  The following comments in regard to the financial results should be read in conjunction with the September 30, 2017 financial statements and Management Discussion and Analysis which are available on the SEDAR website www.sedar.com.

A flattening out of oil prices in the third quarter of 2017 resulted in third quarter operating results being similar to the third quarter of 2016.  Small improvements of under $300,000 were achieved in each of Funds from Operations, Adjusted Funds from Operations, and Distributable Income; but all metrics remained slightly negative.  Fourth quarter results are expected to be similar to the fourth quarter of 2016.

Oil prices have started to increase in recent weeks. The price of a barrel of West Texas Intermediate in Canadian dollars is at a three year high. It is anticipated that an agreement amongst oil producing countries to cut output will be extended through to the end of 2018.  Extended production cuts may remove any remaining glut in oil supply.  Management of Lakeview Hotel Investment Corp is cautiously optimistic that a stable, prolonged period of oil prices at or above current levels will result in increased resource based activity in Alberta and northern British Columbia which will in turn lead to increased hotel occupancy and improved operating results for the company in 2018.

Following is a comparison of the operating results for the three and nine months ended September 30, 2017 and the comparable period in 2016:

		Three months ended		Nine months ended
		September 30		September 30
		2017	2016	2017	2016
Hospitality Revenue
	Room	5,483,429	5,467,713	13,698,645	14,768,496
	Food & Beverage	601,087	575,396	1,824,025	2,002,789
	Other	316,192	330,274	838,389	930,081
Total Revenue		6,400,708	6,373,383	16,361,059	17,701,366
Expenses		6,478,009	7,234,372	18,971,796	21,943,772
(Loss) Gain on sale of income properties		(39,443)	1,613,480	(24,342)	4,347,629
Net income (loss)		(116,744)	752,491	(2,635,079)	105,223
Basic and diluted income (loss) before income tax per share		(0.006)	0.038	(0.135)	0.005
Reconciliation to funds from operations
Add (deduct)
Amortization of income properties		508,996	636,534	1,551,244	2,021,107
Amortization of franchise fees		374	374	1,122	2,485
Loss (Gain) on sale of income properties		39,443	(1,613,480)	24,342	(4,347,629)
Distributions from Lakeview Flag Management General Partnership		-	12,000	18,000	12,000
Income from Lakeview Flag Licensing General Partnership		(149,964)	(149,192)	(379,005)	(361,574)
Income from Lakeview Flag Management General Partnership		(73,136)	(73,372)	(186,596)	(203,742)
Unrealized loss (gain) on change in fair value of interest rate swap		(324,718)	(155,837)	(797,388)	(144,128)
Forgiveness of debt		-	200,000	-	200,000
Amortization of discount on bankers' acceptance		-	-	-	168,066
Funds from operations		(115,749)	(390,482)	(2,403,360)	(2,548,192)
Basic and diluted funds from operations per share		(0.006)	(0.02)	(0.123)	(0.13)
Contributions to reserve account		(126,279)	(116,145)	(318,332)	(317,903)
Adjusted funds from operations		(242,028)	(506,627)	(2,721,692)	(2,866,095)
Basic and diluted adjusted funds from operations per share		(0.012)	(0.026)	(0.139)	(0.147)
Reconciliation to distributable income
Loss on derecognition of income properties		2,075	49,442	15,105	51,578
Loss on derecognition of Franchise Fees		-	-	-	2,726
Loss of derecognition of Financial Liability		-	-	-	19,804
Accretion of debentures		43,274	20,338	128,217	60,595
Accretion of mortgages payable		1,122	15,708	3,438	63,681
Accretion of other long-term debt		84,524	45,105	254,730	149,219
Distributable income		(111,033)	(376,034)	(2,320,202)	(2,518,492)
Basic and diluted distributable income per share		(0.006)	(0.019)	(0.119)	(0.129)
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