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
Predictive analytics tools monitor, report, and troubleshoot in order to make proactive decisions about the health, performance, and utilization of storage. Most enterprises combine cloud and on-premise storage, resulting in blended environments of physical, virtual, cloud, and other platforms, which justifies more sophisticated storage analytics. In his session at 18th Cloud Expo, Peter McCallum, Vice President of Datacenter Solutions at FalconStor, discussed using predictive analytics to mon...
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...
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Onalytica. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.
Get deep visibility into the performance of your databases and expert advice for performance optimization and tuning. You can't get application performance without database performance. Give everyone on the team a comprehensive view of how every aspect of the system affects performance across SQL database operations, host server and OS, virtualization resources and storage I/O. Quickly find bottlenecks and troubleshoot complex problems.
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effici...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
In his session at 19th Cloud Expo, Claude Remillard, Principal Program Manager in Developer Division at Microsoft, contrasted how his team used config as code and immutable patterns for continuous delivery of microservices and apps to the cloud. He showed how the immutable patterns helps developers do away with most of the complexity of config as code-enabling scenarios such as rollback, zero downtime upgrades with far greater simplicity. He also demoed building immutable pipelines in the cloud ...
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of Soli...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Regulatory requirements exist to promote the controlled sharing of information, while protecting the privacy and/or security of the information. Regulations for each type of information have their own set of rules, policies, and guidelines. Cloud Service Providers (CSP) are faced with increasing demand for services at decreasing prices. Demonstrating and maintaining compliance with regulations is a nontrivial task and doing so against numerous sets of regulatory requirements can be daunting task...
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, drew together recent research and lessons learned from emerging and established compa...