Welcome!

News Feed Item

Northampton First Quarter Revenues Improve by 5.8%

TORONTO, ONTARIO -- (Marketwired) -- 08/27/14 -- Northampton Group Inc. (TSX VENTURE:NHG), an integrated Canadian hotelier, today reported its financial results for the first quarter of fiscal 2014, ended June 30, 2014. Northampton posted a quarter-over-quarter sales increase of 5.8% with improvements at nearly all properties. In addition, gross profit rose by 4.9%, while profit for the period increased by 21.7% and earnings per share by 20.6%.

"The North American economy continues to support growth in the hospitality industry," said Vinod Patel, President and CEO of the Northampton Group. "Overall, Northampton's properties are more than keeping pace with its competition, and while maintenance and repair costs rose, all other indicators reflect the care with which Northampton manages its expenditures."

Industry analyst Pannell Kerr Forster Consulting (PKF) reports that two of Northampton's major markets, Toronto and Montreal, have posted improvements in revenue per available room (RevPAR) of up to 6.0% so far in calendar 2014, with average daily rates (ADRs) forecast to improve about 3.0% and occupancy improvements of between 1.0% and 4.0% in the Toronto, Montreal, and Ottawa areas. These predictions are substantially more positive than in recent quarters, so Northampton's properties may benefit from regional strength.

Highlights of the Quarter:

--  In the first quarter, consolidated revenues rose 5.8% to $8,253,753 from
    $7,802,777for the same period in the previous year; 
--  Cost of sales rose 6.6% in the quarter. Administrative expenses fell
    0.7% quarter-over-quarter. Depreciation and finance costs in Q1 were
    $693,526 and $422,308 compared to $671,574 and $444,941 respectively in
    the same quarter in fiscal 2013; 
--  Gross profit for the first quarter of fiscal 2015 rose 4.9% to
    $4,061,860 from $3,871,227 in the prior year; 
--  EBITDA (earnings before income taxes, interest, depreciation, and
    amortization) in the quarter ended June 30, 2014 increased 11.6% to
    $2,698,820 from $2,418,159 in the prior year; 
--  Net income for the quarter rose 21.0% to $775,349, up from $641,004 for
    the same quarter in fiscal 2014; 
--  Earnings per share in the quarter rose 20.6% to $0.030 per share
    compared to $0.024 per share in the same quarter of the previous year; 
--  Cash flow, or net income plus amortization, increased 11.9% in the first
    quarter of fiscal 2015 to $1,468,875 or $0.056 per share from $1,312,578
    or $0.05 per share in the prior period; 
--  Same-hotel sales rose for most of Northampton's portfolio, with the
    exception of the Hamilton location; 
--  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 this proposal among other things. 

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

----------------------------------------------------------------------------
                                         Three months ended June 30         
----------------------------------------------------------------------------
                                          2014           2013       % change
----------------------------------------------------------------------------
Revenues                             8,253,753      7,802,777            5.8
----------------------------------------------------------------------------
Gross profit                         4,061,860      3,871,227            4.9
----------------------------------------------------------------------------
Pre-tax profit                       1,582,986      1,301,644           21.6
----------------------------------------------------------------------------
Profit                               1,179,086        968,544           21.7
----------------------------------------------------------------------------
Net income                             775,349        641,004           21.0
----------------------------------------------------------------------------
Earnings per share                       0.030          0.024           20.6
----------------------------------------------------------------------------
Cash flow                            1,468,875      1,312,578           11.9
----------------------------------------------------------------------------
Cash flow per share                      0.056          0.050           11.6
----------------------------------------------------------------------------
EBITDA                               2,698,820      2,418,159           11.6
----------------------------------------------------------------------------

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 1,761 rooms in 15 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:
Vinod Patel, President and CEO
Northampton Group Inc.
905-629-9992

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
SYS-CON Events announced today that Nihon Micron will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Nihon Micron Co., Ltd. strives for technological innovation to establish high-density, high-precision processing technology for providing printed circuit board and metal mount RFID tags used for communication devices. For more inf...
SYS-CON Events announced today that SourceForge has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SourceForge is the largest, most trusted destination for Open Source Software development, collaboration, discovery and download on the web serving over 32 million viewers, 150 million downloads and over 460,000 active development projects each and every month.
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. As a result, many firms employ new business models that place enormous impor...
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
SYS-CON Events announced today that Dasher Technologies will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dasher Technologies, Inc. ® is a premier IT solution provider that delivers expert technical resources along with trusted account executives to architect and deliver complete IT solutions and services to help our clients execute their goals, plans and objectives. Since 1999, we'v...
SYS-CON Events announced today that TidalScale, a leading provider of systems and services, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale has been involved in shaping the computing landscape. They've designed, developed and deployed some of the most important and successful systems and services in the history of the computing industry - internet, Ethernet, operating s...
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
Infoblox delivers Actionable Network Intelligence to enterprise, government, and service provider customers around the world. They are the industry leader in DNS, DHCP, and IP address management, the category known as DDI. We empower thousands of organizations to control and secure their networks from the core-enabling them to increase efficiency and visibility, improve customer service, and meet compliance requirements.
In his session at 21st Cloud Expo, Michael Burley, a Senior Business Development Executive in IT Services at NetApp, will describe how NetApp designed a three-year program of work to migrate 25PB of a major telco's enterprise data to a new STaaS platform, and then secured a long-term contract to manage and operate the platform. This significant program blended the best of NetApp’s solutions and services capabilities to enable this telco’s successful adoption of private cloud storage and launchi...
SYS-CON Events announced today that TidalScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale is the leading provider of Software-Defined Servers that bring flexibility to modern data centers by right-sizing servers on the fly to fit any data set or workload. TidalScale’s award-winning inverse hypervisor technology combines multiple commodity servers (including their ass...
As hybrid cloud becomes the de-facto standard mode of operation for most enterprises, new challenges arise on how to efficiently and economically share data across environments. In his session at 21st Cloud Expo, Dr. Allon Cohen, VP of Product at Elastifile, will explore new techniques and best practices that help enterprise IT benefit from the advantages of hybrid cloud environments by enabling data availability for both legacy enterprise and cloud-native mission critical applications. By rev...
As popularity of the smart home is growing and continues to go mainstream, technological factors play a greater role. The IoT protocol houses the interoperability battery consumption, security, and configuration of a smart home device, and it can be difficult for companies to choose the right kind for their product. For both DIY and professionally installed smart homes, developers need to consider each of these elements for their product to be successful in the market and current smart homes.
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant tha...