Lakeview Hotel Investment Corp Announces Second Quarter Results

WINNIPEG, Aug. 29, 2016 /CNW/ - Lakeview Hotel Investment Corp ("LHIC") is pleased to report its financial results for the Quarter ended June 30, 2016.  The following comments in regard to the financial results should be read in conjunction with the June 30, 2016 financial statements and Management Discussion and Analysis which are available on the SEDAR website www.sedar.com.

Lakeview Hotel Investment Corp. continues to face a challenging operating environment with a struggling Alberta economy and low commodity prices.  There is, however, growing optimism that the worst is now behind us.  Oil prices have begun to rebound and are now well above the January low of $27.82 per barrel.  Forecasters seem much more confident that prices will be over $50 per barrel for some if not most of 2017.  At these price levels, drilling activity in Alberta is expected to be more robust.  Even in our hardest hit market of Drayton Valley, Alberta we are starting to see the resumption of some preliminary site work and geological investigation.

Lakeview Hotel Investment Corp's cash flow remains negative, but has sufficient capital to meet all of its obligations into 2017.   Lakeview is taking all reasonable measures that it can to improve its cash flows until market conditions improve.  These measures include, among other things, operational efficiencies, debt restructuring and, as and when necessary, strategic disposition of assets. 

Following is a comparison of the operating results for the three and six months ended June 30, 2016 and the comparable period in 2015:


Three months ended

Six months ended


June 30,

June 30,


2016

2015

2016

2015

Hospitality Revenue






Room

4,869,360

6,147,647

9,300,783

13,046,628


Food & Beverage

702,715

936,497

1,427,393

1,974,599


Other

305,700

394,597

599,807

811,292

Total Revenue

5,877,775

7,478,741

11,327,983

15,832,519

Expenses

(7,246,506)

(8,081,923)

(14,709,400)

(17,841,767)

Gain on sale of income properties

2,734,149

-

2,734,149

-

Net income (Loss)

1,365,418

(603,182)

(647,268)

(2,009,248)

Basic and diluted income (loss) before income tax per share

0.07

(0.031)

(0.033)

(0.103)

Reconciliation to funds from Operations





Add (deduct)





Amortization of income properties

654,704

762,421

1,384,573

1,521,727

Amortization of franchise fees

919

1,192

2,111

2,384

Gain on sale of income properties

(2,734,149)

-

(2,734,149)

-

Distributions from Lakeview Flag Licensing General Partnership

-

26,950

-

147,980

Distributions from Lakeview Flag Management General Partnership

-

27,000

-

127,250

Income from Lakeview Flag Licensing General Partnership

(110,723)

(134,849)

(212,382)

(277,573)

Income from Lakeview Flag Management General Partnership

(67,743)

(85,279)

(130,370)

(180,364)

Unrealized loss on change in fair value of interest rate swap

(122,471)

(264,618)

11,709

812,048

Amortization of discount on bankers' acceptance

-

-

168,066

198,712

Funds from Operations

(1,014,045)

(270,365)

(2,157,710)

342,916

Basic and diluted funds from Operations per share

(0.052)

(0.014)

(0.11)

0.018

Contributions to reserve account

(102,105)

(229,820)

(201,758)

(388,117)

Adjusted funds from Operations

(1,116,150)

(500,185)

(2,359,468)

(45,201)

Basic and diluted adjusted funds from Operations per share

(0.057)

(0.026)

(0.121)

(0.002)

Reconciliation to distributable income





Accretion of debentures

20,375

39,433

40,257

79,081

Accretion of mortgages payable

23,518

22,741

47,973

47,496

Loss on derecognition of income properties

2,136

10,124

2,136

16,905

Loss on derecognition of Franchise Fees

2,726

-

2,726

-

Loss on derecognition of Financial Liability

19,804

-

19,804

-

Accretion of other long-term debt

52,487

46,377

104,114

100,688

Distributable income

(995,104)

(381,510)

(2,142,458)

198,969

Basic and diluted distributable income per share

(0.051)

(0.020)

(0.11)

0.01

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

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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