Lakeview Hotel Investment Corp Announces Year End Results

WINNIPEG, May 1, 2019 /CNW/ - Lakeview Hotel Investment Corp ("LHIC") is pleased to report its financial results for the Year ended December 31, 2018.  The following comments in regard to the financial results should be read in conjunction with the December 31, 2018 financial statements and Management Discussion and Analysis which are available on the SEDAR website www.sedar.com.

The outlook for Lakeview Hotel Investment Corp (LHIC) is directly tied to the outlook for the energy sector in Alberta and northern British Columbia.  The sector remains challenged and there is no visibility in terms of near term improvements.

Near term LHIC remains cash flow challenged, will be challenged to meet working capital requirements, and will be challenged to renew and/or extend existing debt when it comes due in 2019.  Although management of LHIC is working towards the resolution of these challenges, the continued financial support from its related parties is expected to be required.

Following is a comparison of the operating results for the three months and year ended December 31, 2018 and the comparable period in 2017:

	Three months ended December 31		Year ended December 31
	2018	2017	2018	2017
	$	$	$	$
Hospitality Revenue
Room	3,015,589	3,644,853	14,300,465	17,343,498
Food & Beverage	618,180	619,874	2,339,408	2,443,899
Other	258,687	287,032	1,016,874	1,125,421
Total Revenue	3,892,456	4,551,759	17,656,747	20,912,818
Expenses	(13,765,772)	(5,234,766)	(31,995,262)	(24,206,562)
Gain (loss) on sale of income properties	-	-	6,728	(24,342)
Net Loss	(9,873,316)	(683,007)	(14,331,787)	(3,318,086)
Basic and diluted net loss per share	(0.505)	(0.035)	(0.733)	(0.170)
Reconciliation to Funds from Operations
Add (deduct)
Provision for (recovery of) impairment of income properties	7,498,408	(866,994)	7,498,408	(866,994)
Forgiveness of debt	-	75,000	-	75,000
Amortization of income properties	467,796	508,279	1,886,922	2,059,523
Amortization of franchise fees	374	375	1,497	1,497
Unrealized loss (gain) on change in fair value of interest rate swap	61,303	(105,145)	(81,852)	(902,533)
Distributions from Lakeview Flag Management General Partnership	-	-	-	18,000
Income from Lakeview Flag Licensing General Partnership	(93,435)	(99,247)	(417,143)	(478,252)
Income from Lakeview Flag Management General Partnership	(44,308)	(51,285)	(202,384)	(237,881)
Loss (gain) on sale of income properties	-	-	(6,728)	24,342
Funds from Operations	(1,983,178)	(1,222,024)	(5,653,067)	(3,625,384)
Basic and diluted funds from operations per share	(0.101)	(0.062)	(0.289)	(0.185)
Contributions to reserve account	(215,043)	(89,810)	(471,787)	(408,142)
Adjusted Funds from Operations	(2,198,221)	(1,311,834)	(6,124,854)	(4,033,526)
Basic and diluted adjusted funds from operations per share	(0.112)	(0.067)	(0.313)	(0.206)

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