Lakeview Hotel Investment Corp Announces Third Quarter 2021 Results

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

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