TORONTO, ONTARIO–(Marketwire – Aug. 25, 2010) – Northampton Group Inc. (TSX VENTURE:NHG)(TSX VENTURE:NHG.DB), an integrated Canadian hotelier, today reported its financial results for the first quarter, ended June 30, 2010. Consolidated revenues rose 11.9% to $7.42 million from $6.63 million in the prior year. Net income from operations rose to $217 thousand from a loss of ($378) thousand, indicating the strength of the Company’s operational turnaround. Earnings per share from operations rose to $0.008 from a loss of ($0.014) in the same period in the prior year. The majority of Northampton’s properties saw quarter-over-quarter improvements in both occupancies and revenues, primarily as a result of a gradual increase in non-corporate travel.
According to industry analyst, Pannell Kerr Forster Consulting (PKF), industry occupancy rates across the country rose by 1.3% in the first half of 2010, while average daily rates improved by 3.3%, and revenue per available room (RevPAR) rose 5.8%. Central Canada saw a proportionally larger share of this improvement, and PKF is predicting that overall the Toronto area will see a 3% improvement in occupancy for 2010, with Ottawa and Montreal holding at current rates.
“Northampton continues to manage costs and expand its hotels’ marketing reach,” said Vinod Patel, president and CEO of Northampton Group. “Despite a slight improvement in outlook, we see the economic recovery as somewhat uncertain, and will maintain our cautious approach to expenditure, while supporting our managers’ innovative approaches to building their sales. At the same time, we are alert to any opportunities to expand our portfolio by acquisition or green-field construction as circumstances and prudence dictate.”
Highlights of the First Quarter:
- Consolidated revenues for the three months ended June 30, 2010 rose 11.9% to $7,422,232 from $6,629,961 a year ago, primarily a result of improved group and tour business as well as the G8 and G20 meetings in June, 2010;
- Operating expenses decreased by 1.4% to $5,274,593 in the first quarter of the current year compared to $5,351,807 in the corresponding period in the prior year;
- Income from operations was $872,556 compared to a loss of ($54,074) in the same quarter last year;
- Operating profit or EBITDA (earnings before interest, income taxes, and amortization), increased 68.0% to $2,147,639 in the current quarter, up from $1,278,154 for the corresponding period of the previous year;
- The net income from continuing operations for the quarter was $217,449 or $0.01 per share, up from a net loss of ($377,870) or ($0.02) per share in the first quarter of last year;
- Cash flow, or net income plus amortization, in the quarter ended June 30, 2010, was $837,774 or $0.03 per share, and $2,336,428 or $0.09 per share including the cash flow of $0.08 arising from the sale of the discontinued operations for the same period last year;
- Same-hotel sales rose quarter-over-quarter at almost all properties.
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.
The following is a tabulated summary of Northampton’s results from continuing operations:
|Three months ended June 30|
|Income from operations||872,556||(54,074||)||–|
|Net income from continuing operations||217,449||(377,870||)||–|
|Earnings (loss) per share||0.008||(0.014||)||–|
|Cash flow from continuing operations||837,774||293,504||185.4|
|Cash flow per share||0.032||0.011||190.0|
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 demonstrated that it excels in this sector, offering services that exceed expectations while still posting industry-leading results.
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.