Stocks & Investing
Stocks and Investing
Stocks and Investing
Fri, February 25, 2011 
TORONTO, ONTARIO--(Marketwire - Feb. 25, 2011) - Northampton Group Inc. (TSX VENTURE:NHG)(TSX VENTURE:NHG.DB), an integrated Canadian hotelier, today reported its results for fiscal 2011's third quarter and nine months ended December 31, 2010. In the third quarter, Northampton posted a quarter-over-quarter sales increase of 13.7%; in the nine-month period sales increased by 12.4% year-over-year.
Once again, Northampton has out-performed in its markets. For the year ended December 31, 2010, occupancy rates and revenue per available room (RevPAR) across Northampton's locales were consistently improved over the previous year, with Quebec reporting RevPAR improvements of 9.0% to $81.30 from $74.56 and Ontario reporting improvements of 7.2% to $73.27 from $68.37. Continued but modest increases are predicted for calendar 2011 by Pannell Kerr Forster Consulting (PKF Canada).
"Management is cautiously optimistic that we will see further quarterly increases in the current environment as a result of our careful cost management and the improving economy," said Vinod Patel, President and CEO of the Northampton Group. "Despite an ongoing reduction in the number of US travelers, we are seeing both domestic and foreign travel increases, especially on the leisure and tour side. With few exceptions, our hotels are maintaining or building market share, and management continues to look for ways to strengthen hotel valuations and improve performance."
Highlights of the Quarter:
- In the nine months, consolidated revenues rose 12.4 % to $22,734,237 from $20,225,244 for the same period in the previous fiscal year; for the third quarter, revenues increased 13.7 % to $6,667,077 from $5,865,919 in the same quarter in fiscal 2010;
- Operating expenses increased 2.6% in the nine months and 3.5% in the quarter, reflecting the impact of ongoing cost containment measures;
- Income from operations for the nine months was $2,068,192 compared to a (loss) for the same period in the previous fiscal year of ($79,735). In the quarter, income from operations was $25,474 compared to a (loss) of ($573,954) in fiscal 2009;
- Operating margin for the nine months improved to 26.6% compared to 19.6% for the same period in the prior year and in the quarter improved to 20.4% compared to 12.6% last year;
- Operating profit or EBITDA (earnings before income taxes, interest, depreciation, and amortization) in the nine months ended December 31, 2010 increased by 52.5% to $6,040,700 from the prior period's $3,961,048, and increased 83.5% to $1,361,098 in the current quarter, up from $741,714 in the corresponding period in the previous year;
- Net income for the nine months reached $1,304,209, off 22.1% from the same period in the prior year. Net income for the quarter rose to $163,237, up substantially from a loss of ($268,168) in the previous year.
- Earnings per share in the nine months rose to $0.05 per share compared to $0.06 in the same period in the previous year. In the quarter, earnings per share was $0.006 compared to a loss of ($0.010) for the third quarter of the previous fiscal year;
- Cash flow, or net income plus amortization, decreased 11.2% in the nine months to $3,293,255 or $0.126 per share. In the quarter, cash flow increased 100% to $835,330 or $0.032 per share;
- Same-hotel sales rose in the most of Northampton's markets.
The following is a tabulated summary of Northampton's results from continuing operations:
| Three months ended December 31 | Nine months ended December 31 | |||||||||||||
| 2010 | 2009 | % change | 2010 | 2009 | % change | |||||||||
| Revenues | 6,667,077 | 5,865,919 | 13.7 | 22,734,237 | 20,225,244 | 12.4 | ||||||||
| Income (loss) from operations | 25,474 | (573,954 | ) | - | 2,068,192 | (79,735 | ) | - | ||||||
| Net income (loss) from continuing operations | 163,237 | (241,151 | ) | - | 1,304,209 | (332,525 | ) | - | ||||||
| EBITDA | 1,361,098 | 741,714 | 83.5 | 6,040,700 | 3,961,048 | 52.5 | ||||||||
| Earnings(loss) per share from continuing operations | 0.006 | (0.010 | ) | - | 0.050 | 0.064 | -21.9 | |||||||
| Cash flow from continuing operations | 835,330 | 446,058 | 87.3 | 3,293,255 | 1,699,565 | 93.8 | ||||||||
| Cash flow per share from continuing operations | 0.032 | 0.017 | 87.3 | 0.126 | 0.065 | 93.8 | ||||||||
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 2,002 rooms in 16 hotels, with a selective strategic development program in place. Focused on creating the best 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 while still posting industry-leading margins.
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.
