Lakeview Hotel Investment Corp Announces Second Quarter 2021 Results
Canada NewsWire
WINNIPEG, MB, Nov. 26, 2021
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 endedJune 30, Six months endedJune 30,
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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
View original content: http://www.newswire.ca/en/releases/archive/November2021/26/c1868.html
/CONTACT:
For further information please contact Rudy Beyer, Chief Financial Officer at (204) 975-0623, Fax (204) 957-1697, or email: rbeyer@lakeviewhotels.com
/Web site: http://www.lakeviewhotels.com
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