Mr. Joe Bleackley reports

PATHFINDER ANNOUNCES 2023 SECOND QUARTER FINANCIAL RESULTS

Pathfinder Ventures Inc. has released its financial and operating results for the three-month period ended June 30, 2023.

The company reports a year-to-date (YTD) increase in revenue of $1,982 to $1,377,998 driven by the successful buildout of winter stay programs in both Agassiz and Parksville earlier in the year. Advanced site nights booked for the fiscal year (FY) 2024 spring and summer season are up 23 per cent year-over-year (YoY) following a successful marketing campaign promoting advanced bookings for the next season.

While Q2 2023 occupancy is down slightly at 48 per cent compared with 50 per cent in Q2 2022, occupancy increased 15 per cent YoY this July compared with last, and the company is seeing continued strong demand. The company expects to meet or exceed 2022 revenues this year ending 2023.

The consolidated financial statements and management discussion and analysis (MD&A) can be viewed on SEDAR+. 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.

2023/2024 advanced reservations

Advanced site nights booked for the FY 2024 spring and summer season are up 23 per cent YoY following a successful marketing campaign promoting advanced bookings for the next season. While campers are tending to book closer to their travel dates, the company is pleased with the advanced booking interest and will continue to promote advance bookings.

Q2 2023 summary for the second quarter ended June 30, 2023:

• Revenue in Q2 2023 decreased by 6 per cent or $51,324 from same period last year to $865,614. The management of the company views this decrease as a return to normal RV (recreational vehicle) industry conditions. Factors that affect RV travel and campgrounds include weather, a return to office work force, gas prices and general cost of travel. RV sales have softened but there is constant new supply and campers of all ages that are looking to be mobile and use their RVs and other campground accommodation options. All factors considered, Pathfinder continues to believe that the demand for RV travel will remain strong and its locations are proving resilient as reflected in its advance FY 2024 reservations.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) decreased by $124,682 to a $70,455 loss in the current period as a result of both decreased revenue and increased costs. Management continues to find efficiencies and address costs of operations at each site and corporately.
• Net loss and comprehensive loss increased by 38 per cent or $153,517 to $555,138 due to decreased revenues and operational costs increase as explained above, as well as increased interest and accretion expense as a result of the Parksville refinancing and extension and amendment of the company's corporate debt instruments.
• Cash on June 30, 2023, was $446,321 compared with $982,482 in Dec. 31, 2022. YTD cash used in operating activities was $144,877 largely due to the increased receivables by $224,423 from Dec. 31, 2022, to $340,840. Receivables comprised mainly of holdbacks from credit card processors for the purpose of mitigating the liquidity risk of the financial intermediary. YTD net loss further contributed to the reduction in cash.
• Working capital deficiency decreased by $2,898,413 to $5,203,912 from $8,102,325 reported at Dec. 31, 2022, mainly due to a reduction of current liabilities of $3,127,144 in the current period, partially offset by decreased cash and increased loan value of the consolidated Parksville mortgage postrefinancing.

YTD summary for the six-month period ended June 30, 2023:

• YTD revenue increased by $1,982 from same period last year to $1,377,998 due to increased revenues in Q1 driven by the successful buildout of winter stay programs in the newly opened properties in Agassiz and Parksville, offset by the decreased Q2 revenues explained above.
• YTD adjusted loss before interest, taxes, depreciation and amortization increased by 20 per cent or $51,573 to $305,009 in the current period as a result of lower Q2 revenues as well as increased labour costs and corporate overheads, partially offset by decreased property costs.
• YTD net loss and comprehensive loss increased by 12 per cent or $132,611 to $1,282,490 due to the operational cost increases as explained above, additional interest and accretion expense resulting from Parksville refinancing and corporate debt amendments in Q2, and an additional mortgage loan secured in connection with the acquisition of land at the Agassiz property in April, 2022.

About Pathfinder Ventures Inc.

Pathfinder Ventures is developing a network of premier branded, upscale and family-friendly RV parks and campgrounds under the Pathfinder Camp Resorts name. Pathfinder currently has three camp resorts located in British Columbia and is focused on growing its network through both acquisitions and new construction. The corporation is taking advantage of the rapidly growing market of Canadians who want to experience the great outdoors in an RV.

We seek Safe Harbor.