Northampton Group Inc.

Northampton Group Inc.

July 19, 2012 23:56 ET

Northampton Revenues Rise 3.0% in Fiscal 2012

Second Consecutive Year-Over-Year Increase

TORONTO, ONTARIO--(Marketwire - July 19, 2012) - Northampton Group Inc. (TSX VENTURE:NHG)(TSX VENTURE:NHG.DB), an integrated Canadian hotelier, today reported its results for fiscal 2012's fourth quarter and year ended March 31, 2012. In the fourth quarter, Northampton's sales rose quarter-over-quarter by 2.5%; in the 12 months, sales increased by 3.0% over the previous year.

"Overall, we are pleased with our results for fiscal 2012, given the challenging environment," said Vinod Patel, President and CEO of the Northampton Group. "We still face some competitive pressure on rates, with a corresponding impact on our margins, but we see significant upside potential within our current portfolio as the market continues to rebound."

In calendar 2011, the national average revenue per available room (RevPAR) improved by 1.1%, according to industry analysts Pannell Kerr Forster (PKF). Of Northampton's major markets, Ontario saw RevPAR increase by 1.6%, while Quebec's RevPAR was up by 4.1% in the same period. For the fiscal year ended March 31, 2012, Northampton's average occupancy rate increased by 2.2%, average rates rose by 1.0%, and RevPAR grew by 3.2%. Business markets improved more than leisure, with a strong lift in the automotive sector. Forecasts for 2012 include increased hotel supply of about 1.3%, which may put some pressure on rates in some of Northampton's locations, but the economic environment is expected to continue to improve slowly but steadily.

Highlights of the Year:

  • In the 12 months of fiscal 2012, consolidated revenues rose 3.0 % to $29,574,351 from $28,700,521 in fiscal 2011; for the fourth quarter, revenues increased 2.5% to $6,117,947 from $5,966,284 in the same quarter in fiscal 2011;
  • Cost of sales increased 4.8% in the 12 months and 5.7% in the quarter;
  • Gross profit for the current year was $14,435,659, up 1.3% from $14,256,726 in fiscal 2011. Gross profit margins decreased by 1.7% as the increase in sales was slightly less that the increase in cost of sales as some costs continue to rise disproportionally. In the quarter, gross profit reached $2,518,267 compared to $2,561,240 in the same quarter of fiscal 2011;
  • Operating profit, or EBITDA (earnings before interest, income taxes, depreciation and amortization), improved 9.6% to $7,201,683 from $6,572,372 in the prior year. Operating profit margin increased by 1.5 points to 24.4% of sales. In the quarter, EBITDA rose 68.9% to $898,229 from $531,672 for the same period in the prior year;
  • Net profit reached $1,201,901 in fiscal 2012 compared to a net profit of $1,663,730 in fiscal 2011. Net income, or profit attributable to equity holders of the company was $609,691or $0.02 per share for the current year compared with $1,222,895 or $0.05 per share in the prior year, as a result of a non-cash of $770,027 charge relating to the current market valuation of the hotel portfolio. Loss in the quarter was ($843,388) compared to ($316,584) in fiscal 2011. Loss attributed to equity holders for the quarter was ($719,826) or ($0.03) per share compared to ($81,314) or ($0.003) per share in the previous year;
  • Cash flow, or net income plus depreciation, decreased 15.7% in the 12 months to $3,191,957 or $0.12 per share from $3,788,488 or $0.145 per share. In the quarter, cash flow decreased 127.4% to ($135,940) or ($0.005) per share from $495,233 or $0.019 per share in the same period of the previous year;
  • Three of Northampton's hotels were honoured for their exemplary service and dedication: The Best Western Cambridge, the Country Inn & Suites Kanata, and the Quality Inn & Suites Oakville;
  • Following the end of the fourth quarter, Northampton launched the aloft™ Vaughan Mills by Starwood, the first of the contemporary and sophisticated aloft brand in Ontario.

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

Three months ended March 31 Twelve months ended March 31
2012 2011 % change 2012 2011 % change
Revenues 6,117,947 5,966,284 2.5 29,574,351 28,700,521 3.0
EBITDA 898,229 531,672 68.9 7,201,683 6,572,372 9.6
Profit (loss) before tax



Net income(Loss)



Earnings (loss) per share



Cash flow (135,940 ) 495,233 -127.4 3,191,957 3,788,488 -15.7
Cash flow per share





For a more complete discussion of the Company's results, please see Northampton's filings on, or the MD&A, financials, and notes to the financial statements on the Company's website at

About Northampton

Northampton Group Inc. is an integrated Canadian hotelier with ownership and management interests in 2,129 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 accommodation that provides superior service in the mid-price market. Northampton has consistently excelled in this sector, offering facilities 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Northampton Group Inc.
    Vinod Patel
    President and CEO