Pathfinder Announces Fourth Quarter and 2021 Financial Results
VANCOUVER, B.C., May 2, 2022 – Pathfinder Ventures Inc. (TSXV: RV) (OTCQB: RVRVF) (the “Company,” or “Pathfinder.”) is pleased to announce its audited consolidated financial statements and Management Discussion and Analysis (“MD&A”) for the three months and years ended December 31, 2021 and 2020.
Fiscal 2021 Highlights
- Consolidated revenue of $2,462,427, in 2021 compared to $108,936 during fiscal 2020 (noting that Pathfinder’s three camp resort parks were only acquired by the Company during Q4 2020);
- Adjusted EBITDA loss of $323,212, compared to $557,615 during fiscal 2020;
- Cash and cash equivalents at December 31, 2021 were $2,092,893, compared to $1,110,950 at December 31, 2020;
- Cash used in operating activities was $767,729, compared to $687,574 during fiscal 2020;
- 51,481 camp resort site nights (as defined below) occupied in 2021, compared to 31,994 camp resort site nights occupied in 2020;
- Net loss of $3,369,887 in 2021, compared to $667,633 during fiscal 2020, primarily driven by expenses incurred as part of the Company’s public listing, and the prior year having significantly reduced activity as project acquisitions occurred during Q4 2020;
- Completion of qualifying transaction and listing on the TSX Venture Exchange.
Highlights Subsequent to Year End
- 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 $600,000 mortgage. The mortgage is secured by a first charge over the property, an existing commercial security agreement and an assignment of rents.
Mr. Joe Bleackley, CEO, Founder and Director of Pathfinder, commented, “In 2021, the Pathfinder team did an incredible job laying the foundation and groundwork for a successful future in Canada’s growing RV Resort industry. Pathfinder is focused on delivering the best possible experience for our RV guests and we are thrilled to see the increase in interest and reservations at our Pathfinder Camp Resorts. Not only was 2021 our first year in operation but it was also the year we listed on the TSXV. We’re looking forward to announcing more RV resort locations and fine-tuning operations on our 3 fully operational parks in 2022.”
The consolidated financial statements and MD&A can be viewed at www.sedar.com. The financial information provided herein should be read in conjunction with and is qualified by additional information and disclosures contained in the consolidated financial statements, including the notes thereto, and the MD&A.
|$, except where noted (1)||Q4 2021||Q4 2020||Fiscal 2021||Fiscal 2020|
|Occupied Site Nights (2)||11,823||10,654||51,481||31,994|
|Net loss per share||(0.04)||(0.03)||(0.07)||(0.10)|
|Adjusted EBITDA (loss)||(209,548)||(445,911)||(323,212)||(557,615)|
(1) Note that the fiscal 2020 numbers presented only reflect the Company’s ownership of the camp resort parks from their date of acquisition, which occurred as follow: Pathfinder Agassiz on October 29, 2020; Pathfinder Fort Langley on December 1, 2020; and Pathfinder Parksville on December 15, 2020.
(2) 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).
Revenues for Q4 and fiscal 2021 were $465,575 and $2,462,427, respectively, compared to 2020 revenues of $108,936 and $108,936, respectively. This increase over the prior year is attributable to the acquisitions of the three camp resorts in the latter part of Q4 2020. Revenues for fiscal 2021 were adversely impacted by (i) extensive renovations to the Agassiz and Parksville campgrounds that limited the number of campsites available during Q1 and Q2; (ii) extreme heat conditions during the summer and (iii) extreme flooding and freezing during the winter. Based on management’s experience, these conditions are not indicative of regular ongoing camp operations.
Operating expenses for Q4 and fiscal 2021 were $1,132,313 and $4,154,618, respectively, compared to 2020 operating expenses of $663,812 and $775,516, respectively. This increase over the prior year is attributable to the acquisitions of the three camp resort parks, which resulted in the operating results of those parks being consolidated into the Company’s financials. Significantly impacting this increase in operating expenses are:
- Depreciation of $496,959, compared to $11,773 during fiscal 2020, which relates to the amortization of significant development expenditures to revamp the camp resorts from their acquired condition.
- Interest expense of $445,593, compared to $27,019 during fiscal 2020, which relates to the additional bank debt and convertible debentures that have been originated since the prior year period to fund the acquisitions of the camp resort parks.
- Management compensation of $254,841, compared to $36,395 during fiscal 2020, which is the result of additional resources needed as a publicly traded company.
- Property costs of $493,763, compared to $44,282 during fiscal 2020, which is the result of additional repairs, maintenance and operation costs of the properties for the full year since acquisition.
- Salaries and benefits of $1,010,861, compared to $49,603 during fiscal 2020, which primarily relates to hiring several full-time and part-time employees required for the development and operation of the three camp resort properties during 2021.
Net loss for Q4 and fiscal 2021 were $2,218,603 and $3,369,887, respectively, compared to Q4 and fiscal 2020 of $555,929 and $667,633, respectively. This increase over prior year is primarily attributable to the recognition of the Company’s non-recurring, non-cash listing expense of $1,663,510 on October 14, 2021, which is the result of the Company issuing its common shares to the shareholders of Discovery One Investment Corp. (“DOIT”) in consideration for the reverse takeover transaction.
Adjusted EBITDA is a non-GAAP financial measure that is calculated as income (loss) from operations before depreciation and amortization, interest, accretion, listing expense, share-based compensation and deferred income tax recovery. Adjusted EBITDA loss for Q4 and fiscal 2021 was $209,548 and $323,212, respectively, compared to 2020 of $445,911 and $557,615, respectively. Adjusted EBITDA is a metric used by management to monitor the Company’s revenues compared to its cash operating costs in an effort to trend toward improved profitability. Management will continue to drive towards positive adjusted EBITDA through additional cost cutting initiatives and maximizing the operating capacity of the camp resort parks.
During the year ended December 31, 2021, the Company used $767,729 in cash from operations after changes in non-cash working capital, compared to $687,574 during fiscal 2020. During fiscal 2021, the Company invested $6,107,347 towards its property and equipment, which was partially offset by receiving $3,119 in proceeds on the sale of certain assets, and also receiving $643,385 in cash from DOIT upon completion of the reverse takeover transaction. During fiscal 2020, the Company invested $841,335 towards its property and equipment, while also spending $5,522,245 in acquisition costs for the three camp resort parks. During fiscal 2021, the Company generated a net $7,210,515 in proceeds from various equity and debt financings, net of payments made on certain debt instruments, compared to $8,161,259 in 2020.
Please refer to the Company’s audited consolidated financial statements, related notes and accompanying Management Discussion and Analysis for a full review of the operations.
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 and year ended December 31, 2021 and 2020 for a reconciliation of these measures to reported IFRS results.
Termination of Letter of Intent with Black Sheep Income Corp. (“BSIC”)
Pathfinder and BSIC have mutually agreed to terminate the Letter of Intent originally announced February 15, 2022. Given current market conditions, the parties were unable to reach a definitive agreement. None of the executives of BSIC will be joining the management or Board of Directors of Pathfinder at this time. Pathfinder has identified a number of attractive acquisitions and will be proceeding to advance these acquisitions whilst organically growing its management team. Details of these acquisitions will be announced in due course.
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:
Chief Executive Officer, Founder and Director
Pathfinder Ventures Inc.
Investor Relations Contact:
Simone Capital Corp.
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.