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
DXWorldEXPO LLC, the producer of the world's most influential technology conferences and trade shows has announced the 22nd International CloudEXPO | DXWorldEXPO "Early Bird Registration" is now open. Register for Full Conference "Gold Pass" ▸ Here (Expo Hall ▸ Here)
The now mainstream platform changes stemming from the first Internet boom brought many changes but didn’t really change the basic relationship between servers and the applications running on them. In fact, that was sort of the point. In his session at 18th Cloud Expo, Gordon Haff, senior cloud strategy marketing and evangelism manager at Red Hat, will discuss how today’s workloads require a new model and a new platform for development and execution. The platform must handle a wide range of rec...
Bill Schmarzo, Tech Chair of "Big Data | Analytics" of upcoming CloudEXPO | DXWorldEXPO New York (November 12-13, 2018, New York City) today announced the outline and schedule of the track. "The track has been designed in experience/degree order," said Schmarzo. "So, that folks who attend the entire track can leave the conference with some of the skills necessary to get their work done when they get back to their offices. It actually ties back to some work that I'm doing at the University of ...
Rodrigo Coutinho is part of OutSystems' founders' team and currently the Head of Product Design. He provides a cross-functional role where he supports Product Management in defining the positioning and direction of the Agile Platform, while at the same time promoting model-based development and new techniques to deliver applications in the cloud.
CloudEXPO New York 2018, colocated with DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
"We began as LinuxAcademy.com about five years ago as a very small outfit. Since then we've transitioned into more of a DevOps training company - the technologies and the tooling around DevOps," explained Doug Vanderweide, an instructor at Linux Academy, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term.
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...
They say multi-cloud is coming, but organizations are leveraging multiple clouds already. According to a study by 451 Research, only 21% of organizations were using a single cloud. If you've found yourself unprepared for the barrage of cloud services introduced in your organization, you will need to change your approach to engaging with the business and engaging with vendors. Look at technologies that are on the way and work with the internal players involved to have a plan in place when the ine...
The revocation of Safe Harbor has radically affected data sovereignty strategy in the cloud. In his session at 17th Cloud Expo, Jeff Miller, Product Management at Cavirin Systems, discussed how to assess these changes across your own cloud strategy, and how you can mitigate risks previously covered under the agreement.
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to impr...
"DevOps is set to be one of the most profound disruptions to hit IT in decades," said Andi Mann. "It is a natural extension of cloud computing, and I have seen both firsthand and in independent research the fantastic results DevOps delivers. So I am excited to help the great team at @DevOpsSUMMIT and CloudEXPO tell the world how they can leverage this emerging disruptive trend."
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and sh...