Northampton Group Inc.
TSX VENTURE : NHG
TSX VENTURE : NHG.DB

Northampton Group Inc.

November 21, 2008 09:21 ET

Northampton Six-Month Sales Essentially Flat

Second Quarter Posts Marginal Decline

TORONTO, ONTARIO--(Marketwire - Nov. 21, 2008) - Northampton Group Inc. (TSX VENTURE:NHG)(TSX VENTURE:NHG.DB), an integrated Canadian hotelier, today reported its results for fiscal 2009's second quarter and six months ended September 30, 2008. The second quarter showed a quarter-over-quarter sales decline of 0.8%; the six-month period also saw a 0.8% sales decrease, as slight improvements in average daily rates (ADRs) and revenue per available room (RevPAR) were offset by occupancy decreases.

Summary of the Quarter:

- In the six months, consolidated revenues were off 0.8% to $19.0 million from $19.1 million in the same period in the previous fiscal year; for the second quarter, revenues decreased 0.8% to 10.0 million from $10.1 million in the same quarter in fiscal 2008;

- Operating expenses increased 1.8% in the six months and 3.4% in the quarter;

- Income from operations decreased by 14.2% in the 6-month period to $2.8 million from $3.3 million for the same period in the previous fiscal year. In the quarter, income from operations decreased 21.5% to $1.5 million from $1.9 million in the same quarter of fiscal 2008;

- Operating profit or EBITA (earnings before income taxes, interest, and amortization) decreased 6.4% in the six months and 9.2% in the quarter;

- Net income fell 24.3% to $1.3 million in the first six months of fiscal 2009 from $1.7 million for the same period in the previous year, and in the second quarter decreased 31.5% to $634 thousand from $925 thousand for the same quarter in fiscal 2008;

- Earnings per share in the six months fell to $0.05 per share compared to $0.06 in the same period in the previous year. In the quarter, earnings per share were $0.02 compared to $0.04 for the second quarter of the previous fiscal year;

- Cash flow decreased 8.7% in the six months to $2.7 million or $0.10 per share. In the quarter, cash flow decreased 12.1% to $1.4 million or $0.05 per share;

- Same-hotel sales improved or held steady at most properties, with challenges in the Cambridge, Brampton and Montreal market place offset by strong performances in several hotels, especially in the Ottawa region;

- The Company opened Canada's first aloft by Starwood branded hotel in Dorval, Quebec, in June 2008, with revenues of $290,000 and expenses of $411,000 in the current quarter. The resulting loss was as expected;

- The value of marketable securities decreased by $222,000 in the quarter primarily due to recent volatility in the capital markets.

"The results of the current quarter reflect the broad impact of the expanding debt crisis in North America as well as the decline of traditional industry in Southern Ontario," said Vinod Patel, President and CEO of the Northampton Group. "We continue to operate carefully, and are confident in our hotels' ability to out-perform in their markets. The Company's new aloft brand hotel at the Montreal Airport has been well received in the market place, indicating that our strategy of improving and updating our portfolio is sound. We have ongoing challenges in both Ontario and Quebec, with the general business slowdown in those areas, and are constantly looking for opportunities to upgrade our existing properties or build new hotels in under-served areas."



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

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Three months ended September 30 Six months ended September 30
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2008 2007 % change 2008 2007 % change
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Revenues 10,010,935 10,088,242 -0.8 18,951,942 19,107,096 -0.8
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Income from
operations 1,500,557 1,911,709 -21.5 2,849,518 3,322,242 -14.2
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Net income 633,813 925,081 -31.5 1,263,846 1,669,196 -24.3
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EBITA 3,029,441 3,337,067 -9.2 5,759,005 6,153,438 -6.4
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Earnings
per share 0.02 0.04 -50.0 0.05 0.06 -17.0
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Cash flow 1,390,206 1,580,737 -12.1 2,721,854 2,982,568 -8.7
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Cash flow
per share 0.05 0.06 0.10 0.12
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About Northampton

Northampton Group Inc. is an integrated Canadian hotelier with ownership and management interests in 2,200 rooms in 17 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 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.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

Contact Information

  • Northampton Group Inc.
    Vinod Patel
    President and CEO
    (905) 629-9992
    (905) 629-9636 (FAX)