Northampton Group Inc.

Northampton Group Inc.

February 24, 2010 08:00 ET

Northampton's Nine-Month Results Reflect Slow Sector

Sales Decline By 16% in the Quarter and the Nine Months

TORONTO, ONTARIO--(Marketwire - Feb. 24, 2010) - Northampton Group Inc. (TSX VENTURE:NHG)(TSX VENTURE:NHG.DB), an integrated Canadian hotelier, today reported its results for fiscal 2010's third quarter and nine months ended December 31, 2009. In the third quarter, Northampton posted a quarter-over-quarter sales decline of 16.4%; in the nine-month period sales decreased by 16.6%. Throughout Canada, occupancy rates and revenue per available room (RevPAR) were off by rates in the mid-teens. Northampton's response to an environment in which business and leisure travel in some of its key markets has dropped by almost 50% in the past two years continues to be careful cost controls and strong strategic marketing of individual properties.

Highlights of the Quarter:

  • In the nine months, characterized by increased supply and contracting demand, consolidated revenues were off 16.6% to $20.23 million from $24.26 million for the same period in the previous fiscal year; for the third quarter, revenues decreased 16.2% to $5.87 million from $7.02 million in the same quarter in fiscal 2009;
  • Operating expenses decreased 8.8% in the nine months and decreased 10.0% in the quarter;
  • Income/(loss) from continuing operations decreased by 103.4% in the nine months to ($79.74) thousand from $2.31 million for the same period in the previous fiscal year. In the quarter, income/(loss) from operations decreased 340% to a loss of $(0.57) million from ($0.13) million in fiscal 2009;
  • Operating profit or EBITDA (earnings before income taxes, interest, depreciation, and amortization) decreased 38.5% in the nine months and 44.0% in the quarter;
  • Net income/(loss) from continuing operations fell 140.2% to ($0.33) million in the first nine months of fiscal 2010 from $0.83 million for the same period in the previous year, and in the third quarter net loss fell 9.6% to ($0.24) thousand from ($0.22) thousand for the same quarter in fiscal 2009;
  • Earnings per share in the nine months rose to $0.064 per share compared to $0.039 in the same period in the previous year, primarily reflecting the sale of the Four Points in Montreal. In the quarter, loss per share was ($0.010) compared to ($0.009) for the third quarter of the previous fiscal year;
  • Cash flow increased 19.2% in the nine months to $3.71 million or $0.142 per share. In the quarter, cash flow decreased 14.6% to $0.42 million or $0.016 per share; 
  • Same-hotel sales continued to experience challenges in the most of Northampton's markets.

Subsequent to the Quarter's End:

  • For the first time in its history, the Holiday Inn Princeton was recognized by IHG as a Commendable Hotel, with an 85.26% guest satisfaction performance;
  • The Quality Inn and Suites Oakville won the Choice Hotels' Gold Hospitality award for 2009.

"The recovery evidenced in recent stock market activity has not yet extended to the hospitality industry," said Vinod Patel, President and CEO of the Northampton Group. "Although our mid-range hotels continue to appeal to their target markets, there are simply fewer people travelling, either for leisure or business, and this has an obvious impact. We remain careful with our resources, and look forward to the upturn that industry analyst Pannell Kerr Forester expects in 2010. Meanwhile, our hotels are maintaining market share, our aloft Montreal Airport is performing reasonably well, as are the Strathcona and all Ottawa region hotels, and management continues to seek value-enhancing mechanisms to improve both our portfolio and performance."

The following is a tabulated summary of Northampton's results. More information can be found on the Company's website ( or on SEDAR (

  Three months ended December 31 Nine months ended December 31
  2009 2008 % change 2009 2008 % change
7,020,250 -16.4 20,225,244 24,263,223 -16.6
Income(loss)  from continuing operations





Net income (loss)
(242,218) -10.7 1,674,761 1,021,628 63.9
1,324,232 -44.0 3,961,048 6,439,141 -38.5
Earnings(loss)  per share





Cash flow
490,885 -14.6 3,706,851 3,109,445 19.2
Cash flow per share






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. 

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 & CEO
    (905) 629-9992