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
 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.


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.

Northampton Group Inc.
Vinod Patel
President and CEO

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
As you move to the cloud, your network should be efficient, secure, and easy to manage. An enterprise adopting a hybrid or public cloud needs systems and tools that provide: Agility: ability to deliver applications and services faster, even in complex hybrid environments Easier manageability: enable reliable connectivity with complete oversight as the data center network evolves Greater efficiency: eliminate wasted effort while reducing errors and optimize asset utilization Security: implemen...
DXWordEXPO New York 2018, colocated with CloudEXPO 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.
DXWorldEXPO LLC announced today that ICOHOLDER named "Media Sponsor" of Miami Blockchain Event by FinTechEXPO. ICOHOLDER give you detailed information and help the community to invest in the trusty projects. Miami Blockchain Event by FinTechEXPO has opened its Call for Papers. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Miami Blockchain Event by FinTechEXPO also offers s...
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
@DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises - and delivering real results.
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
DXWorldEXPO LLC announced today that Dez Blanchfield joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Dez is a strategic leader in business and digital transformation with 25 years of experience in the IT and telecommunications industries developing strategies and implementing business initiatives. He has a breadth of expertise spanning technologies such as cloud computing, big data and analytics, cognitive computing, m...
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
DXWorldEXPO LLC announced today that Kevin Jackson joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Kevin L. Jackson is a globally recognized cloud computing expert and Founder/Author of the award winning "Cloud Musings" blog. Mr. Jackson has also been recognized as a "Top 100 Cybersecurity Influencer and Brand" by Onalytica (2015), a Huffington Post "Top 100 Cloud Computing Experts on Twitter" (2013) and a "Top 50 C...
There is a huge demand for responsive, real-time mobile and web experiences, but current architectural patterns do not easily accommodate applications that respond to events in real time. Common solutions using message queues or HTTP long-polling quickly lead to resiliency, scalability and development velocity challenges. In his session at 21st Cloud Expo, Ryland Degnan, a Senior Software Engineer on the Netflix Edge Platform team, will discuss how by leveraging a reactive stream-based protocol,...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.
Daniel Jones is CTO of EngineerBetter, helping enterprises deliver value faster. Previously he was an IT consultant, indie video games developer, head of web development in the finance sector, and an award-winning martial artist. Continuous Delivery makes it possible to exploit findings of cognitive psychology and neuroscience to increase the productivity and happiness of our teams.
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
The standardization of container runtimes and images has sparked the creation of an almost overwhelming number of new open source projects that build on and otherwise work with these specifications. Of course, there's Kubernetes, which orchestrates and manages collections of containers. It was one of the first and best-known examples of projects that make containers truly useful for production use. However, more recently, the container ecosystem has truly exploded. A service mesh like Istio addr...