Click here to close now.




















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
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, analyzed a range of cloud offerings (IaaS, PaaS, SaaS) and discussed the benefits/challenges of migrating to each offe...
SYS-CON Events announced today that the "Second Containers & Microservices Expo" will take place November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his session at 17th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Partnerships at Com...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
Scrum Alliance has announced the release of its 2015 State of Scrum Report. Almost 5,000 individuals and companies worldwide participated in this year's survey. Most organizations in the market today are still leading and managing under an Industrial Age model. Not only is the speed of change growing exponentially, Agile and Scrum frameworks are showing companies how to draw on the full talents and capabilities of those doing the work in order to continue innovating for success.
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
Between the compelling mockups and specs produced by your analysts and designers, and the resulting application built by your developers, there is a gulf where projects fail, costs spiral out of control, and applications fall short of requirements. In his session at @DevOpsSummit, Charles Kendrick, CTO and Chief Architect at Isomorphic Software, presented a new approach where business and development users collaborate – each using tools appropriate to their goals and expertise – to build mocku...
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
SYS-CON Events announced today that VividCortex, the monitoring solution for the modern data system, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. The database is the heart of most applications, but it’s also the part that’s hardest to scale, monitor, and optimize even as it’s growing 50% year over year. VividCortex is the first unified suite of database monitoring tools specifically desi...
Graylog, Inc., has added the capability to collect, centralize and analyze application container logs from within Docker. The Graylog logging driver for Docker addresses the challenges of extracting intelligence from within Docker containers, where most workloads are dynamic and log data is not persisted or stored. Using Graylog, DevOps and IT Ops teams can pinpoint the root cause of problems to deliver new applications faster and minimize downtime.
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, provided some practical insights on what, how and why when implementing "software-defined" in the datacent...
Learn how you can use the CoSN SEND II Decision Tree for Education Technology to make sure that your K–12 technology initiatives create a more engaging learning experience that empowers students, teachers, and administrators alike.
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.