Northampton Group Inc.

Northampton Group Inc.

July 24, 2009 09:48 ET

Northampton Posts Fiscal 2009 Results

Reduced Revenues in Both the Year and the Quarter

TORONTO, ONTARIO--(Marketwire - July 24, 2009) - Northampton Group Inc. (TSX VENTURE:NHG)(TSX VENTURE:NHG.DB), an integrated Canadian hotelier, today reported its results for fiscal 2009. Consolidated revenues for the year dropped 3.3% to $29.90 million from $30.92 million in fiscal 2008. Decreases in occupancy and average daily rates (ADRs) resulted in lower revenue per available room (RevPAR) throughout most of the portfolio, with the strongest performance in the Ottawa region and the weakest Cambridge, west of Toronto.

In the fourth quarter, Northampton's revenues decreased 10.7% year-over-year to $5.64 million from $6.31 million for the same quarter in the previous year. Usually one of Northampton's softer quarters, it was negatively affected by a number of factors: the strong Canadian currency, reduced leisure and business travel, rebounding energy prices, and increased hotel supply in several of Northampton's markets.

Overall, the environment has been challenging for everyone in the hospitality sector. Despite adding the aloft™ Montreal Airport Hotel to the portfolio, Northampton has been able to reduce costs both in the year and the quarter, and will continue to manage expenses carefully to support the bottom line.

Highlights of Fiscal 2009:

- Consolidated revenues fell 3.3% to $29.90 million from $30.92 million in the same period in the previous fiscal year;

- Operating expenses decreased 1.2% to $22.82 million from $23.09 million;

- Income from operations decreased by 39.0% to $1.56 million from $2.56 million for the previous fiscal year;

- Operating profit or EBITDA (earnings before income taxes, interest, depreciation, and amortization) decreased 9.6% to $7.08 million from $7.83 million;

- Net income fell 55.4% to $0.55 million in fiscal 2009 from $1.22 million;

- Earnings per share decreased to $0.021 per share in fiscal 2009 compared to $0.047 in fiscal 2008;

- Cash flow or net income plus amortization decreased 14.1% in fiscal 2009 to $3.42 million or $0.131 per share from $3.98 million or $0.153 per share in the previous year;

- Same-hotel sales declined an average of 6.3% year-over-year;

- Among the hotel management teams that won awards: the Strathcona Hotel in Toronto won TravelCLICK and the Hospitality Sales & Marketing Association International's eMarketer of the Year award;

- Mr. W. Keith Gray joined Northampton's board of directors;

- Northampton implemented a normal-course issue bid;

- Dividend payments totaled $0.03 in the year;

- The Company launched the aloft™ Montreal Airport Hotel, a hip new addition to the portfolio that has now gained a strong clientele.

Subsequent to year end, Northampton announced the closing and sale of the Four Points by Sheraton Montreal Centre-Ville.

"In this tough environment, we will continue to focus on managing costs and supporting sales through innovative marketing," said Vinod Patel, President and CEO of the Northampton Group. "The pace of our growth may have moderated as a result of current conditions, but we will seek value opportunities in under-served markets, and leverage our strong hospitality and banking partnerships to foster the health and growth of our Company."

The following is a tabulated summary of Northampton's results. Certain comparative amounts have been reclassified to conform to the current year's presentation:

Three months ended March 31 Twelve months ended March 31
2009 2008 % change 2009 2008 % change
Revenues 5,635,480 6,308,247 -10.7 29,898,703 30,919,644 -3.3
Income from
operations (872,890) (708,916) -23.1 1,558,295 2,556,231 -39.0
Net income (475,471) (479,119) -0.8 546,157 1,223,323 -55.4
EBITDA 521,976 647,085 -19.3 7,080,524 7,829,483 -9.6
Earnings per
share -
operations (0.015) (0.011) -36.4 0.016 0.047 -66.0
Earnings per
share (0.018) (0.018) 0.00 0.021 0.047 -55.3
Cash flow 151,644 257,903 -41.2 3,416,140 3,978,606 -14.1
Cash flow
per share 0.006 0.010 -40.0 0.131 0.153 -14.4

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 demonstrated that it excels 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