The impact of COVID continues to have an adverse effect on hotel occupancies continuing into the third quarter of the year. The effect on the hotels revenue have not been as great in the third quarter as we saw in the second quarter. Even though there is hope on the horizon with the start of the distribution of the COVID vaccine it is difficult to predict when business will return to normal.
At the start of COVID in March, LHIC took immediate action to safeguard employees and customer safety, ensure financial liquidity and reduce and defer expenses. These actions will continue into 2021.
The following is a comparison of the operating results for the three and nine months ended
Three months ended | Nine months ended | |||
2020 | 2019 | 2020 | 2019 | |
Hospitality Revenue | ||||
Room | 2,236,052 | 3,192,186 | 5,183,660 | 8,893,813 |
Food & Beverage | 457,331 | 578,349 | 998,742 | 1,672,624 |
Other | 404,922 | 206,634 | 995,994 | 609,220 |
Total Revenue | 3,098,305 | 3,977,169 | 7,178,396 | 11,175,657 |
Expenses | (4,046,891) | 14,193,946 | (12,314,978) | 1,821,836 |
(Loss) Gain on sale of income properties | - | 3,419 | - | 1,370,156 |
Net income (loss) | (948,586) | 18,174,534 | (5,136,582) | 14,367,649 |
Basic and diluted income (loss) before income tax per share | (0.049) | 0.929 | (0.263) | 0.735 |
Reconciliation to funds from operations | ||||
Add (deduct) | ||||
Gain on derecognition of financial liabilities | - | (19,896,176) | - | (19,896,176) |
Amortization of income properties | 70,297 | 214,187 | 241,210 | 951,124 |
Amortization of franchise fees | 4,117 | 375 | 12,350 | 1,123 |
Loss (Gain) on sale of income properties | - | (3,419) | - | (1,370,156) |
Provision for impairment of income properties | - | 2,623 | 328,513 | 1,162,871 |
Amortization of right of use assets | - | - | - | 7,149 |
Income from | (37,920) | (103,303) | (123,277) | (286,257) |
Loss (income) from Lakeview Flag Management General Partnership |
13 |
(44,124) |
(26,898) |
(125,553) |
Unrealized loss (gain) on change in fair value of interest rate swap | - | (13,844) | - | 43,648 |
Funds from operations | (912,079) | (1,669,147) | (4,704,684) | (5,144,578) |
Basic and diluted funds from operations per share | (0.047) | (0.085) | (0.241) | (0.263) |
Contributions to reserve account | (61,505) | (69,944) | (131,040) | (180,900) |
Adjusted funds from operations | (973,584) | (1,739,091) | (4,835,724) | (5,325,478) |
Basic and diluted adjusted funds from operations per share | (0.05) | (0.089) | (0.247) | (0.272) |
The
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