The effects of COVID on hotel occupancies for the second quarter were severe. As this pandemic continues, it is not clear how long it will remain and the extent that it will continue to affect the tourism and hospitality sector. LHIC continues to safeguard employees and customer safety, reduce and/or defer expenses and minimize non-essential expenditures. At this time it is very difficult to determine how long it will take for business levels to normalize.
Following is a comparison of the operating results for the three and six months ended
Three months ended | Six months ended | |||
2020 | 2019 | 2020 | 2019 | |
Hospitality Revenue | ||||
Room | 1,072,350 | 3,158,156 | 2,947,608 | 5,701,627 |
Food & Beverage | 103,519 | 577,473 | 541,411 | 1,094,275 |
Other | 465,674 | 216,904 | 591,072 | 402,586 |
Total Revenue | 1,641,543 | 3,952,533 | 4,080,091 | 7,198,488 |
Expenses | (3,265,942) | (7,006,061) | (8,268,087) | (12,372,110) |
Gain on sale of income properties | - | - | - | 1,366,737 |
Net income (Loss) | (1,624,399) | (3,053,528) | (4,187,996) | (3,806,885) |
Basic and diluted income (loss) before income tax per share | (0.083) | (0.156) | (0.214) | (0.195) |
Reconciliation to funds from Operations | ||||
Add (deduct) | ||||
Amortization of income properties | 83,409 | 355,964 | 170,913 | 736,937 |
Amortization of franchise fees | 4,116 | 374 | 8,233 | 748 |
Gain on sale of income properties | 7 | - | - | (1,366,737) |
Amortization of right-of–use assets | - | 3,322 | - | 7,149 |
Income from | (18,226) | (92,016) | (85,357) | (182,954) |
Loss (income) from Lakeview Flag Management General | ||||
Partnership | - | (44,751) | (26,911) | (81,429) |
Unrealized loss (gain) on change in fair value of interest rate swap | - | (2,096) | - | 57,492 |
Provision for impairment of income properties | - | 1,160,248 | 328,513 | 1,160,248 |
Funds from Operations | (1,555,093) | (1,672,483) | (3,792,605) | (3,475,431) |
Basic and diluted funds from Operations per share | (0.080) | (0.086) | (0.194) | (0.178) |
Contributions to reserve account | (29,963) | (66,102) | (69,535) | (110,956) |
Adjusted funds from Operations | (1,585,056) | (1,738,585) | (3,862,140) | (3,586,387) |
Basic and diluted adjusted funds from Operations per share | (0.081) | (0.089) | (0.197) | (0.183) |
The
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