The outlook for
The spread of COVID-19 during the first quarter, hotel guests and travellers perception of the danger of COVID-19 and government responses to this pandemic have had a significant effect on the operating results of LHIC. It is expected that occupancy results will continue to decline in the near future as the COVID-19 outbreak continues to impact the Canadian economy.
At some point the effects of COVID-19 on the economy and consumer confidence will diminish and business will improve again. However, at this stage of the pandemic crisis there is no clear visibility as to when this will occur.
Following is a comparison of the operating results for the three months ended
Three months ended | ||
2020 | 2019 | |
$ | $ | |
Hospitality Revenue | ||
Room | 1,875,258 | 2,543,471 |
Food & Beverage | 437,892 | 516,802 |
Other | 125,398 | 185,682 |
Total Revenue | 2,438,548 | 3,245,955 |
Expenses | (5,002,145) | (5,366,049) |
Gain (loss) on sale of income properties | - | 1,366,737 |
Net Loss | (2,563,597) | (753,357) |
Basic and diluted net loss per share | (0.131) | (0.039) |
Reconciliation to funds from operations | ||
Add (deduct) | ||
Amortization of income properties | 87,504 | 380,973 |
Amortization of franchise fees | 4,117 | 374 |
Provision for impairment of income properties | 328,513 | - |
Income from | (67,131) | (90,938) |
Income from | (26,918) | (36,678) |
Unrealized loss on change in fair value of interest rate swap | - | 59,588 |
Gain on sale of income properties | - | (1,366,737) |
Funds from operations | (2,237,512) | (1,806,775) |
Basic and diluted funds from operations per share | (0.114) | (0.092) |
Contributions to reserve account | (39,572) | (44,854) |
Adjusted funds from operations | (2,277,084) | (1,851,629) |
Basic and diluted adjusted funds from operations per share | (0.116) | (0.095) |
The
SOURCE
© Canada Newswire, source