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

Northampton Group Inc.

August 28, 2009 07:00 ET

Northampton Reports Q1 2010 Results

TORONTO, ONTARIO--(Marketwire - Aug. 28, 2009) - Northampton Group Inc. (TSX VENTURE:NHG)(TSX VENTURE:NHG.DB), an integrated Canadian hotelier, today reported its financial results for the first quarter of fiscal 2010, ended June 30, 2009. Consolidated revenues dropped 18.1% to $6.63 million from $8.09 million in the prior year. Earnings per share rose to $0.06 from $0.02 in the same period in the prior year, as a result of the Company's 40% share of the gain from the previously announced Four Points Hotel Montreal sale. Without this extraordinary item, the Company posted a loss per share of ($0.01).

Northampton's performance reflected trends across the country, as (according to Pannell Kerr Forster Consulting (PKF)) industry occupancy rates declined by 5.8%, average daily rates declined by 4.0%, and revenue per available room (RevPAR) fell by 13.1%. The major factor contributing to this decline was reduced commercial and retail travel from the USA, which has seen a negative impact from the higher Canadian dollar, the ongoing credit crunch, and the recent implementation of passport requirements to cross the US/Canada border. Given this environment, Northampton's performance paralleled its locations, as in what is traditionally one of Northampton's stronger quarters, reduced US travel combined with higher energy prices and increased hotel supply in most of Northampton's major markets resulted in an overall decline.

"Northampton's managerial strength has historically enabled it to out-perform its markets," said Vinod Patel, president and CEO of Northampton Group. "In the current economic circumstances, we continue to tighten our belts and apply disciplined cost-containment strategies while using our marketing expertise to keep our hotels well-positioned in their various locations, and as a result, Northampton's properties have performed slightly better than the industry averages in their various locations. We continue also to seek opportunities to expand by acquisition or green-field construction into under-served areas, and our recent asset sale has contributed to our reserves, providing additional flexibility."

Highlights of the First Quarter:

- Consolidated revenues for the three months ended June 30, 2009 were down 18.1% to $6,629,961, from $8,093,782 a year ago;

- Operating expenses decreased by 5.6% to $5,351,807 in the first quarter of the current year compared to $5,667,272 in the corresponding period in the prior year;

- Loss from operations was ($54,074) compared to a profit of $1,165,358 in the same quarter last year;

- Operating profit or EBITDA (earnings before interest, income taxes, and amortization), decreased 47.3% to $1,278,154 in the current quarter, down from $2,426,510 in the corresponding period in the previous year;

- The net loss for the quarter from continuing operations was ($377,870) or ($0.01) per share, down from a net profit of $510,373 or $0.02 per share in the first quarter of last year;

- Cash flow, or net income from continuing plus amortization, in the quarter ended June 30, 2009 was $293,504 or $0.01 per share and $2,336,428 or $0.09 per share including the cash flow arising from the sale of discontinued operations. For the corresponding period last year, cash flow from continuing operations was $1,185,496 or $0.05 per share;

- Same-hotel sales declined quarter-over-quarter at all properties, with the exception of the aloft Montreal Airport, where sales improved as the hotel improved operationally.

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
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2009 2008 % change
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Revenues 6,629,961 8,093,782 -18.1
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Income from operations (54,074) 1,165,358 -104.6
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Net income from continuing operations (377,870) 535,373 -170.6
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EBITDA 1,278,154 2,426,510 -47.3
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Earnings (loss) per share (0.014) 0.021 -166.7
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Cash flow from continuing operations 293,504 1,185,496 -75.2
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Cash flow per share 0.011 0.045 -75.2
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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 results.

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 & CEO
    (905) 629-9992
    www.nhgi.com