WINNIPEG, MB, Sept. 30, 2020 /CNW/ - Lakeview Hotel Investment Corp ("LHIC") is pleased to report its financial results for the Quarter ended June 30, 2020. The following comments in regard to the financial results should be read in conjunction with the June 30, 2020 financial statements and Management Discussion and Analysis which are available on the SEDAR website www.sedar.com.

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 June 30, 2020 compared to the results of operations for the comparable period in 2019:


Three months ended

June 30,

Six months ended

June 30,


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 Lakeview Flag Licensing General Partnership

(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)

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

© Canada Newswire, source Canada Newswire English