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
For financial firms, the cloud is going to increasingly become a crucial part of dealing with customers over the next five years and beyond, particularly with the growing use and acceptance of virtual currencies. There are new data storage paradigms on the horizon that will deliver secure solutions for storing and moving sensitive financial data around the world without touching terrestrial networks. In his session at 20th Cloud Expo, Cliff Beek, President of Cloud Constellation Corporation, w...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
Existing Big Data solutions are mainly focused on the discovery and analysis of data. The solutions are scalable and highly available but tedious when swapping in and swapping out occurs in disarray and thrashing takes place. The resolution for thrashing through machine learning algorithms and support nomenclature is through simple techniques. Organizations that have been collecting large customer data are increasingly seeing the need to use the data for swapping in and out and thrashing occurs ...
SYS-CON Events announced today that Progress, a global leader in application development, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Enterprises today are rapidly adopting the cloud, while continuing to retain business-critical/sensitive data inside the firewall. This is creating two separate data silos – one inside the firewall and the other outside the firewall. Cloud ISVs ofte...
SYS-CON Events announced today that Outscale, a global pure play Infrastructure as a Service provider and strategic partner of Dassault Systèmes, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2010, Outscale simplifies infrastructure complexities and boosts the business agility of its customers. Outscale delivers a secure, reliable and industrial strength solution for its customers, which in...
Cloud applications are seeing a deluge of requests to support the exploding advanced analytics market. “Open analytics” is the emerging strategy to deliver that data through an open data access layer, in the cloud, to be directly consumed by external analytics tools and popular programming languages. An increasing number of data engineers and data scientists use a variety of platforms and advanced analytics languages such as SAS, R, Python and Java, as well as frameworks such as Hadoop and Spark...
SYS-CON Events announced today that DivvyCloud will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. DivvyCloud software enables organizations to achieve their cloud computing goals by simplifying and automating security, compliance and cost optimization of public and private cloud infrastructure. Using DivvyCloud, customers can leverage programmatic Bots to identify and remediate common cloud problems in rea...
Amazon started as an online bookseller 20 years ago. Since then, it has evolved into a technology juggernaut that has disrupted multiple markets and industries and touches many aspects of our lives. It is a relentless technology and business model innovator driving disruption throughout numerous ecosystems. Amazon’s AWS revenues alone are approaching $16B a year making it one of the largest IT companies in the world. With dominant offerings in Cloud, IoT, eCommerce, Big Data, AI, Digital Assis...
While some vendors scramble to create and sell you a fancy solution for monitoring your spanking new Amazon Lambdas, hear how you can do it on the cheap using just built-in Java APIs yourself. By exploiting a little-known fact that Lambdas aren’t exactly single threaded, you can effectively identify hot spots in your serverless code. In his session at 20th Cloud Expo, David Martin, Principal Product Owner at CA Technologies, will give a live demonstration and code walkthrough, showing how to ov...
Interested in leveling up on your Cloud Foundry skills? Join IBM for Cloud Foundry Days on June 7 at Cloud Expo New York at the Javits Center in New York City. Cloud Foundry Days is a free half day educational conference and networking event. Come find out why Cloud Foundry is the industry's fastest-growing and most adopted cloud application platform.
In order to meet the rapidly changing demands of today’s customers, companies are continually forced to redefine their business strategies in order to meet these needs, stay relevant and continue to see profitable growth. IoT deployment and development is integral in this transformation, and today businesses are increasingly seeing the value of investing their resources into IoT deployments. These technologies are able increase ROI through projects such as connecting supply chains or enabling sm...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
Most DevOps journeys involve several phases of maturity. Research shows that the inflection point where organizations begin to see maximum value is when they implement tight integration deploying their code to their infrastructure. Success at this level is the last barrier to at-will deployment. Storage, for instance, is more capable than where we read and write data. In his session at @DevOpsSummit at 20th Cloud Expo, Josh Atwell, a Developer Advocate for NetApp, will discuss the role and value...
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists will examine how DevOps helps to meet th...