Welcome!

News Feed Item

Northampton 2014 Sales Up 7.2% While EPS More Than Doubles in the Fourth Quarter, Sales Rise 5.1% But Costs Up 12.5%

TORONTO, ONTARIO -- (Marketwired) -- 07/26/14 -- Northampton Group Inc. (TSX VENTURE:NHG), an integrated Canadian hotelier, today posted its results for the fourth quarter and fiscal year ended March 31, 2014. In the fourth quarter, Northampton reported a quarter-over-quarter sales increase of 5.1% with net income showing the impact of increased costs; in the 12 months, sales increased by 7.2% while earnings rose by 115.8%.

"We were pleased with the top line in both the 12 months and the typically soft fourth quarter," said Vinod Patel, President and CEO of the Northampton Group. "Rising utility prices had a stronger-than-expected impact on our costs in the quarter, but in the 12 months, continued strength in corporate bookings resulted in significant increases in EBITDA, cash flow, and earnings. We are still experiencing some specific challenges in different locations, but overall performance has improved. We anticipate steady performance through the coming year based on our experience to date and the positive predictions of industry experts."

Calendar 2013 in Northampton's locations saw occupancy rates increase by around a percentage point, with average daily room rates (ADRs) up more than $3.00 in the GTA, while Montreal saw a slight decrease and Ottawa was essentially flat. Revenue per available room (RevPAR) rose by 5.2% in Toronto, 1.7% in Montreal, and less than 1% in Ottawa in 2013. According to Pannell Kerr Forster Consulting (PKF), the coming year will see a 1% lift in occupancy rates and a 2-to-3% increase in ADRs; if this is borne out, Northampton may see an improvement to sales and margins.

Highlights of the Year:


--  In the 12 months, consolidated revenues rose 7.2% to $30,614,114 from
    28,568,630 for the previous fiscal year; for the fourth quarter,
    revenues increased 5.1% to $6,380,660 from 6,068,445 in the same quarter
    in fiscal 2013; 
    
--  Cost of sales rose 9.5% in the year and 12.5% in the quarter. Adjusted
    for the costs of launching the aloft Vaughan Mills in fiscal 2013, the
    year-over-year increase was 6.4%. Administrative expenses decreased 5.3%
    in the 12 months and rose 6.1% in the quarter. The decrease reflected a
    one-time non-cash charge made in fiscal 2013 for stock-based
    compensation as well as successful realty tax appeals; the increase
    primarily arose from increased payroll and utility costs; 
    
--  Gross profit for fiscal 2014 rose 4.6% to $14,084,752 from $13,470,777
    in the prior year for gross profit margin of 46% versus 47.2% in the
    prior year, reflecting higher costs; 
    
--  EBITDA (earnings before income taxes, interest, depreciation, and
    amortization) in the year ended March 31, 2014 increased 25.4% to
    $8,135,412 from $6,487,987 in the prior year, and decreased 18.0% to
    $664,470 from $809,951 in the fourth quarter in the previous year; 
    
--  Net income for the fiscal year rose 115.8% to $1,670,869 from $774,195
    in fiscal 2013. Net income for the quarter fell to ($280,804) from
    ($40,213) in the previous year; 
    
--  Earnings per share in fiscal 2014 rose 115.8% to $0.064 per share
    compared to $0.030 in the previous year. In the quarter, earnings per
    share decreased to ($0.011) from ($0.002) in the prior period; 
    
--  Cash flow, or net income plus amortization, increased 28.8% in fiscal
    2014 to $4,514,351 or $0.173 per share. In the quarter, cash flow
    decreased to $478,335 or $0.018 per share from $521,137 or ($0.020) per
    share in the prior period;  
    
--  Same-hotel sales rose in most of Northampton's portfolio; 
    
--  Northampton's Board of Directors approved the payment of a dividend of
    $0.02 per common share, payable to shareholders of record on December 9,
    2013 and disbursed December 18, 2013; 
    
--  As announced by Northampton in a news release on July 9, 2014,
    Northampton received a proposal from an existing shareholder to purchase
    all outstanding shares of the company. The Board has appointed a Special
    Committee of independent directors to evaluate this proposal; 
    
--  On July 24, 2014, the Special Committee retained The Commercial Capital
    Corporation as financial advisor to advise the Special Committee in
    respect of, among other things, this proposal. 

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


----------------------------------------------------------------------------
                Three months ended March 31     Twelve months ended March 31
----------------------------------------------------------------------------
                   2014    2013(i) % change        2014     2013(i) % change
----------------------------------------------------------------------------
Revenues      6,380,660  6,068,445      5.1  30,614,114  28,568,630      7.2
----------------------------------------------------------------------------
Gross profit  2,263,516  2,410,128     -6.1  14,084,752  13,470,777      4.6
----------------------------------------------------------------------------
Pre-tax                                                                     
 profit       (534,591)  (203,825)       --   3,429,512   1,834,680     86.9
----------------------------------------------------------------------------
Profit        (332,291)  (128,325)       --   2,636,512   1,239,680    112.7
----------------------------------------------------------------------------
Net income    (280,804)   (40,213)       --   1,670,869     774,195    115.8
----------------------------------------------------------------------------
Earnings per                                                                
 share          (0.011)    (0.002)       --       0.064       0.030    115.8
----------------------------------------------------------------------------
Cash flow       478,335    521,137     -8.2   4,514,351   3,505,726     28.8
----------------------------------------------------------------------------
Cash flow                                                                   
 per share        0.018      0.020     -8.2       0.173       0.134     28.1
----------------------------------------------------------------------------
EBITDA          664,470    809,951    -18.0   8,135,412   6,487,987     25.4
----------------------------------------------------------------------------

(i) Please note: any changes in posted prior-year financial results arise from the Company's adoption of International Financial Reporting Standards (IFRS) 11.

For a more complete discussion of the Company's results, please see Northampton's annual filings on www.sedar.com, or the annual 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 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
www.nhgi.com

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
Things are changing so quickly in IoT that it would take a wizard to predict which ecosystem will gain the most traction. In order for IoT to reach its potential, smart devices must be able to work together. Today, there are a slew of interoperability standards being promoted by big names to make this happen: HomeKit, Brillo and Alljoyn. In his session at @ThingsExpo, Adam Justice, vice president and general manager of Grid Connect, will review what happens when smart devices don’t work togethe...
SYS-CON Events announced today that Ocean9will 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. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), will provide an overview of various initiatives to certifiy the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldw...
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle.
Providing the needed data for application development and testing is a huge headache for most organizations. The problems are often the same across companies - speed, quality, cost, and control. Provisioning data can take days or weeks, every time a refresh is required. Using dummy data leads to quality problems. Creating physical copies of large data sets and sending them to distributed teams of developers eats up expensive storage and bandwidth resources. And, all of these copies proliferating...
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. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
SYS-CON Events announced today that Technologic Systems Inc., an embedded systems solutions company, will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Technologic Systems is an embedded systems company with headquarters in Fountain Hills, Arizona. They have been in business for 32 years, helping more than 8,000 OEM customers and building over a hundred COTS products that have never been discontinued. Technologic Systems’ pr...
SYS-CON Events announced today that CA Technologies has been named “Platinum 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, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
The taxi industry never saw Uber coming. Startups are a threat to incumbents like never before, and a major enabler for startups is that they are instantly “cloud ready.” If innovation moves at the pace of IT, then your company is in trouble. Why? Because your data center will not keep up with frenetic pace AWS, Microsoft and Google are rolling out new capabilities In his session at 20th Cloud Expo, Don Browning, VP of Cloud Architecture at Turner, will posit that disruption is inevitable for c...
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 ...
Deep learning has been very successful in social sciences and specially areas where there is a lot of data. Trading is another field that can be viewed as social science with a lot of data. With the advent of Deep Learning and Big Data technologies for efficient computation, we are finally able to use the same methods in investment management as we would in face recognition or in making chat-bots. In his session at 20th Cloud Expo, Gaurav Chakravorty, co-founder and Head of Strategy Development ...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
What if you could build a web application that could support true web-scale traffic without having to ever provision or manage a single server? Sounds magical, and it is! In his session at 20th Cloud Expo, Chris Munns, Senior Developer Advocate for Serverless Applications at Amazon Web Services, will show how to build a serverless website that scales automatically using services like AWS Lambda, Amazon API Gateway, and Amazon S3. We will review several frameworks that can help you build serverle...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
SYS-CON Events announced today that Loom Systems 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 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...