Lakeview Hotel Investment Corp Announces Third Quarter 2020 Results
Lakeview Hotel Investment Corp Announces Third Quarter 2020 Results
Canada NewsWire
WINNIPEG, MB, Dec. 16, 2020
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
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