WINNIPEG, MB, Dec. 16, 2021 /CNW/ - Lakeview Hotel
Investment Corp ("LHIC") is pleased to report its financial results
for the Quarter ended September 30,
2021. The following comments in regard to the financial
results should be read in conjunction with the September 30, 2021 financial statements and
Management Discussion and Analysis which are available on the SEDAR
website www.sedar.com.
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 sale transaction has received approval from the shareholders
and debenture holders with approval from the court expected this
week and closure of the deal is expected to be effective
December 20, 2021.
The following is a comparison of the operating results for the
three and nine months ended September 30,
2021 compared to the results of operations for the
comparable periods in 2020:
|
Three months
ended
September
30
|
Nine months
ended
September
30
|
|
2021
|
2020
|
2021
|
2020
|
|
Hospitality
Revenue
|
|
|
|
|
|
Room
|
2,264,445
|
2,236,052
|
4,935,073
|
5,183,660
|
|
Food &
Beverage
|
158,877
|
457,331
|
551,718
|
998,742
|
|
Other
|
3,202,235
|
404,922
|
3,915,749
|
995,994
|
|
Total
Revenue
|
5,625,557
|
3,098,305
|
9,402,540
|
7,178,396
|
|
Expenses
|
(4,249,592)
|
(4,046,891)
|
(11,685,669)
|
(12,314,978)
|
|
(Loss) Gain on sale
of income properties
|
33,643
|
-
|
33,643
|
-
|
|
Net income
(loss)
|
1,409,608
|
(948,586)
|
(2,249,486)
|
(5,136,582)
|
|
Basic and diluted
income (loss) before income tax per share
|
0.072
|
(0.049)
|
(0.115)
|
(0.263)
|
|
Reconciliation to
funds from operations
|
|
|
|
|
|
Add
(deduct)
|
|
|
|
|
|
Amortization of
income properties
|
72,052
|
70,297
|
215,295
|
241,210
|
|
Amortization of
franchise fees
|
-
|
4,117
|
-
|
12,350
|
|
Loss (Gain) on sale
of income properties
|
(33,643)
|
-
|
33,643
|
-
|
|
Provision for
impairment of income properties
|
-
|
-
|
-
|
328,513
|
|
Income from Lakeview
Flag Licensing General Partnership
|
(47,632)
|
(37,920)
|
(81,074)
|
(123,277)
|
|
Loss (income) from
Lakeview Flag Management General
|
-
|
13
|
-
|
(26,898)
|
|
Partnership
|
|
Gain on settlement of
debt
|
(2,671,159)
|
-
|
(2,671,159)
|
-
|
|
Funds from
operations
|
(1,220,724)
|
(912,079)
|
(4,752,781)
|
(4,704,684)
|
|
Basic and diluted
funds from operations per share
|
(0.065)
|
(0.047)
|
(0.243)
|
(0.241)
|
|
Contributions to
reserve account
|
(55,450)
|
(61,505)
|
(120,867)
|
(131,040)
|
|
Adjusted funds from
operations
|
(1,326,224)
|
(973,584)
|
(4,872,648)
|
(4,835,724)
|
|
Basic and diluted
adjusted funds from operations per share
|
(0.068)
|
(0.05)
|
(0.249)
|
(0.247)
|
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
