VANCOUVER, BC, Aug. 29,
2022 /CNW/ - 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
Parksville location 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.
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SOURCE Pathfinder Ventures Inc.