Lakeview Hotel Investment Corp Announces Third Quarter Results

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

Challenging times for Lakeview Hotel Investment Corp. continue as the prolonged slowdown in drilling activity in Alberta and Northern British Columbia persists.  Lakeview continues to focus on reducing costs and increased operating efficiencies.  At the same time Lakeview is investing a minimum of 5% of revenues into repairs, maintenance and capital improvements at its properties to avoid deferred maintenance issues and to allow the properties to remain competitive.

While times are challenging, management of Lakeview Hotel Investment Corp. has been successful in its debt restructuring efforts.  In recent weeks Lakeview has (1) refinanced the first mortgage on its Prince George property, extending the maturity until October, 2021, and reducing the monthly debt service payments; has (2) extended the maturity of the debentures secured by the Prince George property for a two year period, eliminating the quarterly principal payments; and (3) this week has extended the Series C and Series D debentures until August, 2019 at a reduced interest rate, with all interest accruing and payable on maturity.  The debt restructuring means that Lakeview does not face any debt maturities until October, 2018 when the Prince George debenture matures.  Most debt matures in 2019. 

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


Three months ended

 

Nine months ended

 


September 30


September 30



2016

2015

2016

2015

Hospitality Revenue






Room

5,467,713

6,889,447

14,768,496

19,936,075


Food & Beverage

575,396

836,696

2,002,789

2,811,295


Other

330,274

403,891

930,081

1,215,183

Total Revenue

6,373,383

8,130,034

17,701,366

23,962,553

Expenses

7,234,372

8,899,793

21,943,772

26,741,560

Gain on sale of income properties

1,613,480

-

4,347,629

-

Net income (loss)

752,491

(769,759)

105,223

(2,779,007)

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

0.038

(0.039)

0.005

(0.142)

Reconciliation to funds from operations





Add (deduct)





Amortization of income properties

636,534

762,829

2,021,107

2,284,556

Amortization of franchise fees

374

1,192

2,485

3,576

Gain on sale of income properties

(1,613,480)

-

(4,347,629)

-

Distributions from Lakeview Flag Licensing General Partnership

-

32,830

-

180,810

Distributions from Lakeview Flag Management General Partnership

12,000

27,500

12,000

154,750

Income from Lakeview Flag Licensing General Partnership

(149,192)

(164,432)

(361,574)

(442,005)

Income from Lakeview Flag Management General Partnership

(73,372)

(93,046)

(203,742)

(273,410)

Unrealized loss (gain) on change in fair value of interest rate swap

(155,837)

205,468

(144,128)

1,017,516

Forgiveness of debt

200,000

-

200,000

-

Amortization of discount on bankers' acceptance

-

-

168,066

198,712

Funds from operations

(390,482)

2,582

(2,548,192)

345,498

Basic and diluted funds from operations per share

(0.02)

0.000

(0.13)

0.018

Contributions to reserve account

(116,145)

(250,025)

(317,903)

(638,142)

Adjusted funds from operations

(506,627)

(247,443)

(2,866,095)

(292,644)

Basic and diluted adjusted funds from operations per share

(0.026)

(0.013)

(0.147)

(0.015)

Reconciliation to distributable income





Loss on derecognition of income properties

49,442

90,578

51,578

107,483

Loss on derecognition of Franchise Fees

-

-

2,726

-

Loss of derecognition of Financial Liability

-

-

19,804

-

Accretion of debentures

20,338

40,118

60,595

119,199

Accretion of mortgages payable

15,708

22,963

63,681

70,459

Accretion of other long-term debt

45,105

38,534

149,219

139,222

Distributable income

(376,034)

(55,250)

(2,518,492)

143,719

Basic and diluted distributable income per share

(0.019)

(0.003)

(0.129)

0.007

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: PLEASE CONTACT: 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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