Welcome!

News Feed Item

Northampton Nine-Month Sales Rise 6.7%

Profits More Than Double Period-Over-Period

TORONTO, ONTARIO -- (Marketwired) -- 02/20/14 -- Northampton Group Inc. (TSX VENTURE:NHG), an integrated Canadian hotelier, today reported financial results for the third quarter and nine months ended December 31, 2013. Third-quarter sales increased by 8.2%, with profits up by 23.3%; in the nine-month period sales increased by 6.7% period-over-period and profits rose by 116.9%.

"We are cautiously pleased with our performance thus far in fiscal 2014," said Vinod Patel, President and CEO of the Northampton Group. "The rise in sales has been driven by improvements at most of our properties, as well as the addition of the aloft Vaughan Mills and the sale of the Park Inn Montreal Airport, both of which happened in 2012. Despite ongoing challenges in the industry, with new builds and increasing costs across the board, Northampton has been able to support its properties in growing sales and keeping cost increases to a moderate level. Overall, the company outperformed industry analysts' expectations for its locations. In addition, increases in the market value of securities and replacement fund reserves, impact of an impairment loss write-down in the prior year, and a non-cash compensation charge in the prior year all contributed to the exceptional improvement in the current nine months' results."

Highlights of the Quarter:

--  In the nine months, consolidated revenues rose 6.7% to $24,233,454 from
    $22,709,843 for the same period in the previous fiscal year; for the
    third quarter, revenues rose 8.2% to $7,276,945 from $6,723,005 in the
    same quarter in fiscal 2013; 
--  Cost of sales rose 6.4% in the nine-month period and 10.5% in the
    quarter. Administrative expenses decreased 9.9% in the nine months and
    12.6% in the quarter. The reduction was primarily a result of a non-cash
    charge relating to stock-based compensation posted in the prior periods;
--  Gross profit margin for the nine months rose slightly to 48.8% from
    48.6% for the same period in the prior year, and in the quarter fell to
    44.5% from 45.6% last year; 
--  EBITDA (earnings before income taxes, interest, depreciation, and
    amortization) in the nine months ended December 31, 2013 increased 30.6%
    to $7,469,942 from $5,718,186 in the prior period, and increased 21.4%
    to $1,957,371 from $1,612,735 in the same quarter in the previous year; 
--  Net income for the nine months rose to $1,950,673, up 139.5% from
    $814,408 in the same period in fiscal 2013. Net income for the quarter
    fell to $248,722 from 398,636 in the previous year, off 37.6%; 
--  Earnings per share in the nine months rose 139.5% to $0.075 per share
    compared to $0.031 in the same period in the previous year. In the
    quarter, earnings per share decreased 37.6% to $0.010 from $0.015 in the
    previous fiscal year; 
--  Cash flow, or net income plus amortization, increased 34.4% in the nine
    months to $4,035,016 or $0.155 per share. In the quarter, cash flow
    decreased 8.1% to $972,444 or $0.037 per share;  
--  Same-hotel sales rose in most of Northampton's markets, despite a
    slowdown in the Ottawa area. 

Industry analysts, Pannell Kerr Forster Consulting (PKF), reported a slight average increase of 1.0 percentage points in occupancy nationally for calendar 2013 compared to 2012, while average daily rates (ADRs) increased by 2.2%, for the same period last year. Canada-wide revenue per available room (RevPAR) showed an improvement of 3.8% over 2012, with Ontario's RevPAR increasing by 2.7% and Quebec's by 2.6% for the same period. For calendar 2014, PKF is forecasting a RevPAR improvement of 4.0% and should bode well for all of Northampton's locations.

The following is a tabulated summary of Northampton's results from continuing operations:

----------------------------------------------------------------------------
            Three months ended December 31   Nine months ended December 31  
----------------------------------------------------------------------------
                 2013       2012   % change       2013       2012   % change
----------------------------------------------------------------------------
Revenues    7,276,945  6,723,005        8.2 24,233,454 22,709,843        6.7
----------------------------------------------------------------------------
Gross                                                                       
 profit     3,238,166  3,068,699        5.5 11,821,236 11,047,598        7.0
----------------------------------------------------------------------------
Pre-tax                                                                     
 profit       689,545    461,973       49.3  3,963,103 2 ,038,505       94.4
----------------------------------------------------------------------------
Profit        501,645    407,273       23.2  2,967,803  1,368,005      116.9
----------------------------------------------------------------------------
Net income    248,722    398,636      -37.6  1,950,673    814,408      139.5
----------------------------------------------------------------------------
Earnings                                                                    
 per share      0.010      0.015      -37.5      0.075      0.031      139.5
----------------------------------------------------------------------------
Cash flow     972,444  1,058,698       -8.1  4,035,016  3,002,603       34.4
----------------------------------------------------------------------------
Cash flow                                                                   
 per share      0.037      0.041       -8.1      0.155      0.115       34.4
----------------------------------------------------------------------------
EBITDA      1,957,371  1,612,735       21.4  7,469,942  5,718,186       30.6
----------------------------------------------------------------------------

For a more complete discussion of the Company's results, please see Northampton's quarterly filings on www.sedar.com, or the quarterly MD&A, financials, and notes to the financial statements on the Company's website at www.nhgi.com.

About Northampton

Northampton Group Inc. is an integrated Canadian hotelier with ownership and management interests in 1,943 rooms in 16 hotels (including the new aloft Vaughan Mills hotel in Vaughan, Ontario) with a selective strategic development program in place. Focused on creating a solid return for all stakeholders, Northampton's proven, market-sensitive strategy is to acquire or build hotels that provide superior overnight accommodation in the mid-price market. Northampton has consistently excelled in this sector, offering services that exceed expectations.

Disclaimer:

This news release contains forward-looking statements within the meaning of the "safe harbour" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties and other factors that may cause Northampton's results to differ materially from expectations. Such risks may relate to hotel performance, market fluctuations, investee performance, and other risks more fully described in the Company's annual report, posted on the Company's website and on SEDAR. These forward-looking statements speak only as of the date hereof. Northampton Group disclaims any intent or obligation to update these forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts:
Northampton Group Inc.
Vinod Patel
President and CEO
905-629-9992

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
When applications are hosted on servers, they produce immense quantities of logging data. Quality engineers should verify that apps are producing log data that is existent, correct, consumable, and complete. Otherwise, apps in production are not easily monitored, have issues that are difficult to detect, and cannot be corrected quickly. Tom Chavez presents the four steps that quality engineers should include in every test plan for apps that produce log output or other machine data. Learn the ste...
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...
A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great deals to great conferences, helping you discover new conferences and increase your return on investment.
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Containers and Kubernetes allow for code portability across on-premise VMs, bare metal, or multiple cloud provider environments. Yet, despite this portability promise, developers may include configuration and application definitions that constrain or even eliminate application portability. In this session we'll describe best practices for "configuration as code" in a Kubernetes environment. We will demonstrate how a properly constructed containerized app can be deployed to both Amazon and Azure ...
Everyone wants the rainbow - reduced IT costs, scalability, continuity, flexibility, manageability, and innovation. But in order to get to that collaboration rainbow, you need the cloud! In this presentation, we'll cover three areas: First - the rainbow of benefits from cloud collaboration. There are many different reasons why more and more companies and institutions are moving to the cloud. Benefits include: cost savings (reducing on-prem infrastructure, reducing data center foot print, redu...
SYS-CON Events announced today that Silicon India has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Published in Silicon Valley, Silicon India magazine is the premiere platform for CIOs to discuss their innovative enterprise solutions and allows IT vendors to learn about new solutions that can help grow their business.
You want to start your DevOps journey but where do you begin? Do you say DevOps loudly 5 times while looking in the mirror and it suddenly appears? Do you hire someone? Do you upskill your existing team? Here are some tips to help support your DevOps transformation. Conor Delanbanque has been involved with building & scaling teams in the DevOps space globally. He is the Head of DevOps Practice at MThree Consulting, a global technology consultancy. Conor founded the Future of DevOps Thought Leade...
We are seeing a major migration of enterprises applications to the cloud. As cloud and business use of real time applications accelerate, legacy networks are no longer able to architecturally support cloud adoption and deliver the performance and security required by highly distributed enterprises. These outdated solutions have become more costly and complicated to implement, install, manage, and maintain.SD-WAN offers unlimited capabilities for accessing the benefits of the cloud and Internet. ...
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
Founded in 2000, Chetu Inc. is a global provider of customized software development solutions and IT staff augmentation services for software technology providers. By providing clients with unparalleled niche technology expertise and industry experience, Chetu has become the premiere long-term, back-end software development partner for start-ups, SMBs, and Fortune 500 companies. Chetu is headquartered in Plantation, Florida, with thirteen offices throughout the U.S. and abroad.
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
DXWorldEXPO LLC announced today that "IoT Now" was named media sponsor of CloudEXPO | DXWorldEXPO 2018 New York, which will take place on November 11-13, 2018 in New York City, NY. IoT Now explores the evolving opportunities and challenges facing CSPs, and it passes on some lessons learned from those who have taken the first steps in next-gen IoT services.
The technologies behind big data and cloud computing are converging quickly, offering businesses new capabilities for fast, easy, wide-ranging access to data. However, to capitalize on the cost-efficiencies and time-to-value opportunities of analytics in the cloud, big data and cloud technologies must be integrated and managed properly. Pythian's Director of Big Data and Data Science, Danil Zburivsky will explore: The main technology components and best practices being deployed to take advantage...
Andi Mann, Chief Technology Advocate at Splunk, is an accomplished digital business executive with extensive global expertise as a strategist, technologist, innovator, marketer, and communicator. For over 30 years across five continents, he has built success with Fortune 500 corporations, vendors, governments, and as a leading research analyst and consultant.