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Lakeview Hotel Investment Corp Announces Second Quarter 2021 Results

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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 ended

June 30,

Six months ended

June 30,


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

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View original content: http://www.newswire.ca/en/releases/archive/November2021/26/c1868.html

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