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
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now ...
WebRTC is about the data channel as much as about video and audio conferencing. However, basically all commercial WebRTC applications have been built with a focus on audio and video. The handling of “data” has been limited to text chat and file download – all other data sharing seems to end with screensharing. What is holding back a more intensive use of peer-to-peer data? In her session at @ThingsExpo, Dr Silvia Pfeiffer, WebRTC Applications Team Lead at National ICT Australia, looked at differ...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
"Splunk basically takes machine data and we make it usable, valuable and accessible for everyone. The way that plays in DevOps is - we need to make data-driven decisions to delivering applications," explained Andi Mann, Chief Technology Advocate at Splunk and @DevOpsSummit Conference Chair, in this SYS-CON.tv interview at @DevOpsSummit at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"Logz.io is a log analytics platform. We offer the ELK stack, which is the most common log analytics platform in the world. We offer it as a cloud service," explained Tomer Levy, co-founder and CEO of Logz.io, in this SYS-CON.tv interview at DevOps Summit, held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
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. In his session at 18th Cloud Expo, ...
In his session at @DevOpsSummit at 19th Cloud Expo, Robert Doyle, lead architect at eCube Systems, will examine the issues and need for an agile infrastructure and show the advantages of capturing developer knowledge in an exportable file for migration into production. He will introduce the use of NXTmonitor, a next-generation DevOps tool that captures application environments, dependencies and start/stop procedures in a portable configuration file with an easy-to-use GUI. In addition to captur...
"ReadyTalk is an audio and web video conferencing provider. We've really come to embrace WebRTC as the platform for our future of technology," explained Dan Cunningham, CTO of ReadyTalk, in this SYS-CON.tv interview at WebRTC Summit at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Due of the rise of Hadoop, many enterprises are now deploying their first small clusters of 10 to 20 servers. At this small scale, the complexity of operating the cluster looks and feels like general data center servers. It is not until the clusters scale, as they inevitably do, when the pain caused by the exponential complexity becomes apparent. We've seen this problem occur time and time again. In his session at Big Data Expo, Greg Bruno, Vice President of Engineering and co-founder of StackIQ...
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and Containers together help companies to achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of D...
In 2014, Amazon announced a new form of compute called Lambda. We didn't know it at the time, but this represented a fundamental shift in what we expect from cloud computing. Now, all of the major cloud computing vendors want to take part in this disruptive technology. In his session at 20th Cloud Expo, John Jelinek IV, a web developer at Linux Academy, will discuss why major players like AWS, Microsoft Azure, IBM Bluemix, and Google Cloud Platform are all trying to sidestep VMs and containers...
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Dave McCarthy, Director of Products at Bsquare Corporation; Alan Williamson, Principal ...
DevOps and microservices are permeating software engineering teams broadly, whether these teams are in pure software shops but happen to run a business, such Uber and Airbnb, or in companies that rely heavily on software to run more traditional business, such as financial firms or high-end manufacturers. Microservices and DevOps have created software development and therefore business speed and agility benefits, but they have also created problems; specifically, they have created software securi...