WINNIPEG, MB, Dec. 16, 2020 /CNW/ - Lakeview Hotel Investment
Corp ("LHIC") is pleased to report its financial results for the
Quarter ended September 30,
2020. The following comments in regard to the financial
results should be read in conjunction with the September 30, 2020 financial statements and
Management Discussion and Analysis which are available on the SEDAR
website www.sedar.com.
The impact of COVID continues to have an adverse effect on hotel
occupancies continuing into the third quarter of the year.
The effect on the hotels revenue have not been as great in the
third quarter as we saw in the second quarter. Even though
there is hope on the horizon with the start of the distribution of
the COVID vaccine it is difficult to predict when business will
return to normal.
At the start of COVID in March, LHIC took immediate action to
safeguard employees and customer safety, ensure financial liquidity
and reduce and defer expenses. These actions will continue
into 2021.
The following is a comparison of the operating results for the
three and nine months ended September 30,
2020 compared to the results of operations for the
comparable period in 2019:
|
Three months
ended
September
30
|
Nine months
ended
September
30
|
|
2020
|
2019
|
2020
|
2019
|
|
Hospitality
Revenue
|
|
|
|
|
|
Room
|
2,236,052
|
3,192,186
|
5,183,660
|
8,893,813
|
|
Food &
Beverage
|
457,331
|
578,349
|
998,742
|
1,672,624
|
|
Other
|
404,922
|
206,634
|
995,994
|
609,220
|
|
Total
Revenue
|
3,098,305
|
3,977,169
|
7,178,396
|
11,175,657
|
|
Expenses
|
(4,046,891)
|
14,193,946
|
(12,314,978)
|
1,821,836
|
|
(Loss) Gain on sale
of income properties
|
-
|
3,419
|
-
|
1,370,156
|
|
Net income
(loss)
|
(948,586)
|
18,174,534
|
(5,136,582)
|
14,367,649
|
|
Basic and diluted
income (loss) before income tax per share
|
(0.049)
|
0.929
|
(0.263)
|
0.735
|
|
Reconciliation to
funds from operations
|
|
|
|
|
|
Add
(deduct)
|
|
|
|
|
|
Gain on derecognition
of financial liabilities
|
-
|
(19,896,176)
|
-
|
(19,896,176)
|
|
Amortization of
income properties
|
70,297
|
214,187
|
241,210
|
951,124
|
|
Amortization of
franchise fees
|
4,117
|
375
|
12,350
|
1,123
|
|
Loss (Gain) on sale
of income properties
|
-
|
(3,419)
|
-
|
(1,370,156)
|
|
Provision for
impairment of income properties
|
-
|
2,623
|
328,513
|
1,162,871
|
|
Amortization of right
of use assets
|
-
|
-
|
-
|
7,149
|
|
Income from Lakeview
Flag Licensing General Partnership
|
(37,920)
|
(103,303)
|
(123,277)
|
(286,257)
|
|
Loss (income) from
Lakeview Flag Management General
Partnership
|
13
|
(44,124)
|
(26,898)
|
(125,553)
|
|
Unrealized loss
(gain) on change in fair value of interest rate swap
|
-
|
(13,844)
|
-
|
43,648
|
|
Funds from
operations
|
(912,079)
|
(1,669,147)
|
(4,704,684)
|
(5,144,578)
|
|
Basic and diluted
funds from operations per share
|
(0.047)
|
(0.085)
|
(0.241)
|
(0.263)
|
|
Contributions to
reserve account
|
(61,505)
|
(69,944)
|
(131,040)
|
(180,900)
|
|
Adjusted funds from
operations
|
(973,584)
|
(1,739,091)
|
(4,835,724)
|
(5,325,478)
|
|
Basic and diluted
adjusted funds from operations per share
|
(0.05)
|
(0.089)
|
(0.247)
|
(0.272)
|
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