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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

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