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Pathfinder Announces 2022 Second Quarter Financial and Operating Results

August 29, 2022

VANCOUVER, BC, Aug. 29, 2022 – Pathfinder Ventures Inc. (TSXV: RV) (OTCQB: RVRVF) (the “Company” or “Pathfinder.”) is pleased to announce it has filed on SEDAR the consolidated financial statements and management discussion and analysis (“MD&A”) for the three and six months ended June 30, 2022.

Pathfinder Ventures Inc. is developing a network of branded, upscale, and family-friendly RV parks and campgrounds under the “Pathfinder Camp Resorts” name.  Pathfinder currently has three camp resorts located in B.C. and is focused on growing its network through both acquisitions and development.  One resort is currently undergoing an expansion.  Pathfinder is also seeking to acquire RV & Self Storage facilities to take advantage of the rapidly growing market of people who want to experience the great outdoors in an RV.

The consolidated financial statements and MD&A can be viewed at www.sedar.com. The financial information provided herein should be read in conjunction with and is qualified by additional information and disclosures contained in the consolidated financial statements, including the notes thereto, and the MD&A.

Ms. Jennifer Lee, CFO of Pathfinder, commented, “In the second quarter of 2022, Pathfinder achieved an 81% increase in revenues despite lower-than-expected April occupancies caused by severe winter conditions. While the Parksvillelocation was not operational until July of last year, the Agassiz location more than tripled the June occupancy from the prior year. Fort Langley also saw a slight growth in occupancy despite being a stable operating asset for many years. Pathfinder Camp Resorts continue to be very busy, and we have been getting inquiries and bookings for the next year already. We are pleased to see a community building in our Pathfinder Camp Resorts.”  ­­­

Q2 2022 Highlights

  • Revenues increased to $916,938 from $507,891 in the comparative period;
  • EBITDA increased to $54,395, from a loss of $398,367 in the comparative period;
  • Net loss from operations decreased to $401,086 from $565,496 driven by increased revenues;
  • Financing costs of $6,085 related entirely to the new loan issued for the purchase of property for the Agassiz site expansion (further details in the Business Highlights below);
  • Cash and cash equivalents at June 30, 2022, were $1,576,120 compared to $2,092,893 at December 31, 2021. The cash balance was utilized for land acquisition, increased debt servicing requirement and payment of continuing site improvement costs during the period;
  • YTD cash provided by operating activities was $231,879, compared to cash used from operating activities of $804,647 in the comparative period, which was a result of an improved non-cash working capital position;
  • 15,754 camp resort site nights (as defined below) occupied in Q2 2022, compared to 10,562 camp resort site nights occupied in the comparative period.

Business Highlight

On April 7, 2022, the Company completed the purchase of property adjacent to its existing Pathfinder Camp Resorts location in Agassiz B.C. for the cash purchase price of $750,000. Pathfinder plans, subject to land-use and rezoning approvals, to use this 1.892-acre property to expand the Agassiz campground. The purchase was funded by cash on hand and a $600,000 mortgage. The property is currently under a rezoning process with a municipal council decision expected in September 2022.

Financial Summary

Q2 2022 Q2 2021
Occupied Site Nights (1) 15,754 10,562
Revenue 916,938 507,891
Operating expenses 1,251,658 1,003,826
Net loss (401,086) (565,469)
Net loss per share (0.01) (0.01)
Adjusted EBITDA (loss) (2) 54,395 (398,120)
(1) Occupied Site Nights is the sum of all actual nights the sites were occupied by visitors to the camp resorts when summing all occupied sites across the Company’s three camp resorts (for example: 1 camp site is available 7 Site Nights per week). 
(2) Adjusted EBITDA is a non-GAAP financial measure that is calculated as income (loss) from operations before depreciation and amortization, interest, accretion, financing costs, and share-based compensation. Management will continue to drive towards positive Adjusted EBITDA through additional cost cutting initiatives and maximizing the operating capacity of the camp resort parks.

 

Financial Performance

Revenues for Q2 2022 were $916,938 compared to Q2 2021 revenues of $507,891 This increase over the prior year is attributable to all three sites being fully operational during the period. Only one out of the three site was fully operational in Q2 2021. The YTD revenues were impacted by a severe winter flooding in November 2021, the damage and repair work of which impacted site occupancies from January to April.

Operating expenses for Q2 2022 were $1,251,658, compared to Q2 2021 operating expenses of $1,003,826. This increase over the prior year is attributable to full-period operation with increased staffing and other operating costs. The YTD operating costs were impacted by the continuing site improvement activities. The Company expects the operating costs of existing properties to stabilize in 2023.

Significantly impacting this increase in operating expenses are:

  • Depreciation of $193,165, compared to $50,157 during the comparative period due to the capital expenditures incurred in Q3 and Q4 of 2021 and YTD 2022
  • Interest expense of $162,769 compared to $92,103 during the comparative period due to the full period servicing of bank loans issued in April and July of 2021 in connection with the property acquisitions, as well as a partial period servicing of a new bank loan raised on April 7, 2022, in connection with the additional land acquisition
  • Salaries and benefits of $417,373 from $206,040 in the comparative period due to the full period operation of all three sites and, accordingly, the increased labour requirement
  • Share-based compensation of $64,173, compared to $nil during the comparative period, which relates to the Company’s issuance of stock options during fiscal 2021

However, the increases in the operating expenses were largely offset by:

  • Decreased general and administrative expense to $31,724 from $84,549 due to reduced corporate activities relating to the public listing
  • Decreased legal and professional fees to $68,966 from $98,533 in the comparative period due to reduced corporate activities relating to the public listing
  • Decreased property costs to $161,885 from $212,155 in the comparative period due to the winding down of site improvement activities
  • Decreased management compensation to $nil from $123,291 due to management fee arrangements being changed to employment agreements and thereby being allocated to salaries and benefits in the current period

Net loss from operations for Q2 2022 was $401,086, compared to Q2 2021 of $565,496. This decrease over the comparative period is primarily attributable to the items noted above.

Non-IFRS Financial Measures

The discussion of consolidated financial results in this press release includes references to “Adjusted EBITDA” (earnings before interest, taxes, depreciation, and amortization), which is a non-IFRS performance measure. The Company presents these measures to provide additional information regarding the Company’s financial results and performance. Please refer to the Company’s MD&A for the three months ended June 30, 2022 and 2021 for a reconciliation of these measures to reported IFRS results.

About Pathfinder Ventures

Pathfinder Ventures Inc. is developing a network of branded, upscale and family-friendly RV parks and campgrounds under the “Pathfinder Camp Resorts” name.  Pathfinder currently has three camp resorts located in B.C. and is focused on growing its network through both acquisitions and development.  Pathfinder is also seeking to acquire RV & Self Storage facilities to take advantage of the rapidly growing market of people who want to experience the great outdoors in an RV.

On behalf of the board of directors of the Corporation:

Joe Bleackley
Chief Executive Officer, Founder and Director
Pathfinder Ventures Inc.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Forward-Looking Information Cautionary Statement

This news release contains forward-looking statements relating to the future operations of the Corporation and other statements that are not historical facts. Forward-looking statements are often identified by terms such as “will”, “may”, “should”, “anticipate”, “expects” and similar expressions. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding the future plans and objectives of the Corporation, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Corporation’s expectations include risks detailed from time to time in the filings made by the Corporation with securities regulations. 

The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Corporation. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Corporation does not undertake any obligation to update publicly or to revise any forward-looking statements that are contained or incorporated in this press release.

In the case of RV, this news release includes certain “forward-looking statements” which are particular to RV and are not comprised of historical facts. Forward-looking statements include estimates and statements that describe RV’s future plans, objectives or goals, including words to the effect that RV or its management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to RV, RV provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, RV’s objectives, goals or future plans, statements, its projected revenues and earnings, and anticipated future growth in new markets. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, the ability of the RV to successfully implement its development strategy and whether this will yield the expected benefits; competitive factors in RV’s industry sector; the success or failure of product development programs; currently existing applicable laws and regulations or future applicable laws and regulations that may affect RV’ s business; decisions of regulatory authorities and the timing thereof; Covid-19 related risks, availability of properties; the economic circumstances surrounding RV’s business, including general economic conditions in Canada, the US and worldwide; changes in exchange rates; changes in the equity market; inflation; uncertainties relating to the availability and costs of financing needed in the future; and those other risks disclosed in the filing statement or other disclosure document prepared and supplied on sedar.  Although RV believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. RV disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

SOURCE Pathfinder Ventures Inc.