Mr. Peter Deeb reports

HAMPTON FINANCIAL CORPORATION ANNOUNCES 1ST QUARTER RESULTS

Hampton Financial Corp. has released its financial results for the second quarter ended Feb. 28, 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 and chief executive officer Peter Deeb.

Second quarter fiscal highlights

Second quarter ended Feb. 28, 2023:

• Q2 revenues of $2.78-million versus $3,638,000, a decrease of 22 per cent year over year;
• Q2 net losses of ($904,000) or (three cents) per share versus net income of $187,000 or one cent per share;
• Q2 EBITDA (earnings before interest, taxes, depreciation and amortization) of ($437,000) versus $483,000 in the comparative quarter last year.

Six months ended Feb. 28, 2023 (year to date):

• YTD revenues of $5,189,000 versus $9,649,000, a decrease of 46 per cent year over year;
• YTD net losses of ($1,492,000) or (five cents) per share versus net income of $1,221,000 or four cents per share;
• YTD EBITDA of ($680,000) versus $1,827,000 in the comparative period last year.

Summary of corporate developments

The second quarter results saw revenues improve over the first quarter by 15.4 per cent, a promising improvement, but not what the company had hoped for. During the second quarter and on into third quarter, wealth management continued to perform with improving fundamentals over first quarter. As the capital markets business is seeing a renewed buildup of potential deal flow, the company remains optimistic about its full-year results.

The company would like to highlight that the following non-cash expenses contributed to the net loss for the six months ended Feb. 28, 2023: $477,000 loss on revaluation 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 Ltd. (HSL), continues to develop its wealth management, advisory team and principal agent programs, which offer 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. Its corporate finance group provides early-stage growing companies the capital they need to create value for investors. Its treasury group works to maximize returns from its balance sheet and strengthen its competitive position as one of Canada's leading independent financial institutions.

Copies of Hampton's unaudited interim financial statements and its management's discussion and analysis for the three and six months ended Feb. 28, 2023, can be viewed on SEDAR.

About Hampton Financial Corp.

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 service and capital market activities. HSL is a full-service investment dealer, regulated by IIROC (Investment Industry Regulatory Organization of Canada), 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 complementary business and non-core sectors that can leverage the expertise of its board and the diverse experience of its management team.