WINNIPEG, MB, Nov. 26, 2021 /CNW/ - Lakeview Hotel Investment
Corp ("LHIC") is pleased to report its financial results for the
Quarter ended June 30, 2021. The
following comments in regard to the financial results should be
read in conjunction with the June 30,
2021 financial statements and Management Discussion and
Analysis which are available on the SEDAR website
www.sedar.com.
The Covid-19 pandemic continues to have an adverse effect on the
Company's operating business due to a decline in both leisure and
business travel and economic activity. The second quarter
hotel revenues and operating results improved compared to the same
period in 2020. However, we expect that the lower than normal
results will continue for several more quarters until the
population is vaccinated and leisure and business travel become
more normalized.
As disclosed in a previous press release, Lakeview Hotel
Investment Corp. ["LHIC"] entered into an arrangement agreement
dated November 9, 2021 whereby a
Purchaser has agreed to acquire all of the outstanding common
shares of Lakeview, has agreed to acquire all of the outstanding
Series C Debentures and all of the Series D Debentures of Lakeview
with all accrued and unpaid interest owing to the Debenture holders
forgiven, settled and extinguished for no consideration; and has
agreed to pay to LHIC or to the benefit of LHIC approximately
$15,000,000 for LHIC to pay and
satisfy all amounts owing by LHIC to its lending syndicate led by
ATB Financial, and to pay certain costs associated with the
transaction.
The closure of the deal is dependent on the shareholders and
debenture holders approval and approval by the
courts.
The following is a comparison of the operating results for the
three and six months ended June 30,
2021 compared to the results of operations for the
comparable periods in 2020:
|
Three months
ended
June
30,
|
Six months
ended
June
30,
|
|
2021
|
2020
|
2021
|
2020
|
|
Hospitality
Revenue
|
|
|
|
|
|
Room
|
1,338,131
|
1,072,350
|
2,670,628
|
2,947,608
|
|
Food &
Beverage
|
150,110
|
103,519
|
392,841
|
541,411
|
|
Other
|
335,942
|
465,674
|
713,514
|
591,072
|
|
Total
Revenue
|
1,824,183
|
1,641,543
|
3,776,983
|
4,080,091
|
|
Expenses
|
(3,783,628)
|
(3,265,942)
|
(7,436,077)
|
(8,268,087)
|
|
Net income
(Loss)
|
(1,959,445)
|
(1,624,399)
|
(3,659,094)
|
(4,187,996)
|
|
Basic and diluted
income (loss) before income tax per share
|
(0.100)
|
(0.083)
|
(0.187)
|
(0.214)
|
|
Reconciliation to
funds from Operations
|
|
|
|
|
|
Add
(deduct)
|
|
|
|
|
|
Amortization of
income properties
|
72,074
|
83,409
|
143,243
|
170,913
|
|
Amortization of
franchise fees
|
-
|
4,116
|
-
|
8,233
|
|
Income from Lakeview
Flag Licensing General Partnership
|
(18,680)
|
(18,226)
|
(33,442)
|
(85,357)
|
|
Loss (income) from
Lakeview Flag Management General
|
-
|
7
|
-
|
(26,911)
|
|
Partnership
|
|
Provision for
impairment of income properties
|
-
|
-
|
-
|
328,513
|
|
Funds from
Operations
|
(1,906,051)
|
(1,555,093)
|
(3,549,293)
|
(3,792,605)
|
|
Basic and diluted
funds from Operations per share
|
(0.097)
|
(0.080)
|
(0.181)
|
(0.194)
|
|
Contributions to
reserve account
|
(34,956)
|
(29,963)
|
(65,417)
|
(69,535)
|
|
Adjusted funds from
Operations
|
(1,941,007)
|
(1,585,056)
|
(3,614,710)
|
(3,862,140)
|
|
Basic and diluted
adjusted funds from Operations per share
|
(0.099)
|
(0.081)
|
(0.185)
|
(0.197)
|
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