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TORONTO, May 01, 2023 (GLOBE NEWSWIRE) -- Hampton Financial Corporation (“Hampton” or the “Company”, TSXV:HFC & HFC.PR.A) today announced its financial results for the 2nd quarter ended February 28th, 2023.
“The second quarter results reflect continued pressures on Revenues and Earnings across the industry that began in fall of 2022 and continue well into the first half of calendar 2023. Capital Markets activity continues to be weak amidst rising rates and economic and political uncertainty. With that being the case, we continue to remain optimistic for the balance of the fiscal year,” said Hampton Executive Chairman & CEO Peter Deeb.
Second Quarter fiscal highlights:
Second Quarter ended February 28th, 2023:
- Q2 Revenues of $2,780,000 vs $3,638,000; a decrease of 22% year-over-year
- Q2 Net Losses of $(904,000) or $(0.03) per share vs Net Income of $187,000 or $0.01 per share;
- Q2 EBITDA of $(437,000) vs $483,000 in the comparative quarter last year
Six months ended February 28th, 2023 (Year to Date):
- YTD Revenues of $5,189,000 vs $9,649,000; a decrease of 46% year-over-year
- YTD Net Losses of $(1,492,000) or $(0.05) per share vs Net Income of $1,221,000 or $0.04 per share;
- YTD EBITDA of $(680,000) vs $1,827,000 in the comparative period last year
Summary of Corporate Developments:
Our 2nd Quarter results saw Revenues improve over the 1st Quarter by 15.4%; a promising improvement but not what we had hoped for. During the 2nd Quarter and on into Q3, Wealth Management continued to perform with improving fundamentals over our 1st Quarter. As our Capital Markets business is seeing a renewed build up of potential deal-flow we remain optimistic about our full year results.
We would like to highlight that the following non-cash expenses contributed to the Net Loss for the six months ended February 28, 2023: $477,000 loss on re-valuation of broker warrants held by the Company, and $167,000 employee benefit, according to the amended employment agreement.
The Company, through its wholly owned subsidiary, Hampton Securities Limited (“HSL”) continues to develop its Wealth Management, Advisory Team and Principal-Agent programs which offers the industry’s most experienced wealth managers a unique and flexible operating platform that provides additional freedom, financial support, and tax effectiveness as they build and manage their professional practice. Our Corporate Finance Group provides early stage, growing companies the capital, they need to create value for investors. Our Treasury Group works to maximize returns from our balance sheet and strengthen our competitive position as one of Canada’s leading independent financial institutions.
Copies of Hampton’s unaudited interim financial statements and its Management’s Discussion & Analysis for the three and six months ended February 28, 2023, can be accessed on SEDAR at www.sedar.com.
About Hampton Financial Corporation
Hampton is a unique private equity firm that seeks to build shareholder value through long-term strategic investments. Through HSL, Hampton is actively engaged in family office, wealth management, institutional services and capital markets activities. HSL is a full-service investment dealer, regulated by IIROC and registered in Alberta, British Columbia, Manitoba, Saskatchewan, Nova Scotia, Northwest Territories, Ontario, and Quebec. In addition, the Company provides investment banking services, which include assisting companies with raising capital, advising on mergers and acquisitions, and aiding issuers in obtaining a listing on recognized securities exchanges in Canada and abroad. The company is also exploring opportunities to diversify its sources of revenue by way of strategic investments in both complimentary business and non-core sectors that can leverage the expertise of its Board and the diverse experience of its management team.
For more information, please contact:
Olga Juravlev
Chief Financial Officer
Hampton Financial Corporation
(416) 862-8701
Or
Peter M. Deeb
Executive Chairman & CEO
Hampton Financial Corporation
(416) 862-8651
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No securities regulatory authority has either approved or disapproved of the contents of this press release. This press release does not constitute or form a part of any offer or solicitation to buy or sell any securities in the United States or any other jurisdiction outside of Canada. The securities being offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or the securities laws of any state of the United States and may not be offered or sold within the United States or to a U.S. person absent registration or pursuant to an available exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. There will be no public offering of securities in the United States.
