Lakeview Hotel Investment Corp Announces First Quarter Results

/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES/

WINNIPEG, May 30, 2016 /CNW/ - Lakeview Hotel Investment Corp ("LHIC") is pleased to report its financial results for the Quarter ended March 31, 2016.  The following comments in regard to the financial results should be read in conjunction with the March 31, 2016 financial statements and Management Discussion and Analysis which are available on the SEDAR website www.sedar.com.

While the precipitous decline in oil prices began in the fourth quarter of 2014, it wasn't until the second quarter of 2015 that the decline had its full impact on drilling activity in western Canada and thus on the operating results at Lakeview's hotels. The relatively strong operating results at Lakeview's hotels that lasted through the first quarter of 2015 made for a difficult year-over-year comparison with the results from the first quarter of 2016.

Going forward, the year-over-year, quarterly comparisons should be much less challenging.  As oil prices strengthen and drilling activity resumes in western Canada, results will once again trend upwards.  Timing of this increased activity is still difficult to determine.

The sale of the Days Inn Ottawa Hotel, which will close in the second quarter of 2016, will provide Lakeview Hotel Investment Corp. sufficient working capital to meet all of its obligations into 2017 and hopefully until market conditions improve sufficiently to make Lakeview cash flow positive.  Lakeview's next financing activity is scheduled for the 4th quarter of 2016 when the loan on the Four Points in Prince George matures.

Following is a comparison of the operating results for the three months ended March 31, 2016 and the comparable period in 2015:


Three months ended

March 31


2016

2015


$

$

Hospitality Revenue




Room

4,431,423

6,898,981


Food & Beverage

724,678

1,038,102


Other

294,107

416,695

Total Revenue

5,450,208

8,353,778

Expenses

(7,462,894)

(9,759,844)

Net Income (Loss)

(2,012,686)

(1,406,066)

Basic and diluted income (loss) per share

(0.103)

(0.072)

Reconciliation to funds from operations



Add (deduct)



Amortization of income properties

729,869

759,306

Amortization of franchise fees

1,192

1,192

Distributions from Lakeview Flag Licensing General Partnership

-

121,030

Distributions from Lakeview Flag Management General Partnership

-

100,250

Income from Lakeview Flag Licensing General Partnership

(101,659)

(142,724)

Income from Lakeview Flag Management General Partnership

(62,627)

(95,085)

Unrealized loss on change in fair value of interest rate swap

134,180

1,076,666

Amortization of discount on bankers' acceptance

168,066

198,712

Funds from operations

(1,143,665)

613,281

Basic and diluted funds from operations per share

(0.058)

0.031

Contributions to reserve account

(99,653)

(158,297)

Adjusted funds from operations

(1,243,318)

454,984

Basic and diluted adjusted funds from operations per share

(0.064)

0.023

Reconciliation to distributable income



Accretion of other long-term debt

51,627

54,311

Accretion of debentures

19,882

39,648

Accretion of mortgages payable

24,455

24,755

Loss on derecognition of income properties

-

6,781

Distributable income

(1,147,354)

580,479

Basic and diluted distributable income per share

(0.059)

0.030

Distributions

0

0










 

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

For further information: Avrum Senensky, Executive Vice President, Tel: (204) 947-1161, Fax: (204) 957-1697, Email asenensky@lakeviewhotels.com

RELATED LINKS
http://www.lakeviewhotels.com

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