Welcome!

Microsoft Cloud Authors: Pat Romanski, Srinivasan Sundara Rajan, Glenn Rossman, Janakiram MSV, Steven Mandel

News Feed Item

Northampton Q2 Sales Steady While Costs Rise

TORONTO, ONTARIO -- (Marketwire) -- 11/20/12 -- Northampton Group Inc. (TSX VENTURE:NHG), an integrated Canadian hotelier, today reported its financial results for fiscal 2013's second quarter and six months ended September 30, 2012. The company posted a 0.8% increase in sales for the six-month period, and an equal decrease in the quarter, reflecting the positive impact of the new aloft(TM) Vaughan Mills (from May, 2012) and the negative impact of the sale of the Park Inn Montreal Airport (in July, 2012) as well as a drop in revenue in several areas as a result of local market conditions.

Industry analysts, Pannell Kerr Forster Consulting (PKF), have confirmed that Canada's overall occupancy rates should rise very modestly in 2012 in Toronto and Montreal and drop slightly in Ottawa. Thus far in 2012, Northampton's major markets saw improvements in revenue per available room (RevPAR) of 0.5% in the Greater Toronto Area, 0.8% in Montreal, and 7.6% in Ottawa. Average daily rates in Northampton's markets are likely to remain on par with last year.

"Overall, we are cautiously pleased with our results this quarter," said Vinod Patel, president and CEO of Northampton Group. "Getting a new hotel up to speed always takes an injection of time and energy. Despite this, and despite the sale of one of our older hotels, we still posted a slight improvement in sales in the six months, and we will continue to control our expenses as the aloft Vaughan Mills ramps up. We also experienced non-cash charges with reference to a onetime expense for officers' and directors' stock-based compensation and a loss on sale of the Park Inn & Suites Montreal Airport as well as amortization related to the new hotel, which added to our expenses."

Highlights of the Quarter:


--  On July 23, 2012, paid down a corporate debenture of $2,000,000, bearing
    interest at 10%; 
--  Consolidated revenues for the six months ended September 30, 2012 were
    up 0.8% to $16,387,967 from $16,251,484. For the three months ended
    September 30, 2012, consolidated revenues were off 0.8% to $8,930,460
    from $9,001,539 a year ago; 
--  For the six months ended September 30, 2012, the cost of sales was
    $8,201,156, up by 5.2% from $7,797,020 in the prior year. For the three
    months ended September 30, 2012, the cost of sales was $4,296,487, up
    2.6% from $4,185,603 in the corresponding period in the prior year; 
--  Gross profit for the six months ended September 30, 2012 was $8,186,811,
    off 3.2% from $8,454,464 in the prior period. Gross profit was off 3.8%
    in the quarter to $4,633,973 from $4,815,936 in the prior year; 
--  For the six months ended September 30, 2012, earnings before income tax
    and amortization (EBITA) decreased 13.2% to $4,182,086 from $4,820,691
    in the prior year. For the quarter ended September 30, 2012, EBITA was
    $2,401,128, down 15.3% from $2,835,988 in the corresponding period in
    the previous year; 
--  Net income was $415,772 in the first six months of fiscal 2013, down
    from $1,162,438 for the same period in the previous year. Net income in
    the second quarter decreased to $348,033 from $822,667 for the same
    quarter in fiscal 2012. These drops reflect increased expenses, non-cash
    charges referred to above, and amortization costs related to the new
    aloft hotel; 
--  Earnings per share in the six months were $0.016 per share compared to
    $0.045 in the same period in the previous year. In the quarter, earnings
    per share were $0.013 compared to $0.032 for the second quarter of the
    previous fiscal year; 
--  Cash flow, or net profit plus amortization, in the six months was
    $1,978,676 or $0.076 per share, down from $2,449,272 or $0.094 per share
    in the previous year. In the quarter, cash flow was $1,093,863 or $0.042
    per share, down from $1,494,488 or $0.057 per share in the same period
    in fiscal 2012.

Northampton today announced the payment of a dividend of $0.02 per common share payable to shareholders of record on December 4, 2012, to be disbursed on December 18, 2012.

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


----------------------------------------------------------------------------
             Three months ended September 30  Six months ended September 30 
----------------------------------------------------------------------------
                    2012       2011 % change       2012        2011 % change
----------------------------------------------------------------------------
Revenues       8,930,460  9,001,539     -0.8 16,387,967  16,251,484      0.8
----------------------------------------------------------------------------
Gross profit   4,633,973  4,815,936     -3.8  8,186,811   8,454,464     -3.2
----------------------------------------------------------------------------
Net income       348,033    822,667    -57.7    415,772   1,162,438    -64.2
----------------------------------------------------------------------------
Earnings per                                                                
 share             0.013      0.032    -57.7      0.016       0.045    -64.2
----------------------------------------------------------------------------
Cash flow      1,093,863  1,494,488    -26.8  1,978,676   2,449,272    -19.2
----------------------------------------------------------------------------
Cash flow                                                                   
 per share         0.042      0.057    -26.8      0.076       0.094    -19.2
----------------------------------------------------------------------------
EBITDA         2,401,128  2,835,988    -15.3  4,182,086   4,820,691    -13.2
----------------------------------------------------------------------------

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.

About Northampton

Northampton Group Inc. is an integrated Canadian hotelier with ownership and management interests in 1,943 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.

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.

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.

Contacts:
Northampton Group Inc.
Vinod Patel
President and CEO
905-629-9992
www.nhgi.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
The Jevons Paradox suggests that when technological advances increase efficiency of a resource, it results in an overall increase in consumption. Writing on the increased use of coal as a result of technological improvements, 19th-century economist William Stanley Jevons found that these improvements led to the development of new ways to utilize coal. In his session at 19th Cloud Expo, Mark Thiele, Chief Strategy Officer for Apcera, will compare the Jevons Paradox to modern-day enterprise IT, e...
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lea...
What are the new priorities for the connected business? First: businesses need to think differently about the types of connections they will need to make – these span well beyond the traditional app to app into more modern forms of integration including SaaS integrations, mobile integrations, APIs, device integration and Big Data integration. It’s important these are unified together vs. doing them all piecemeal. Second, these types of connections need to be simple to design, adapt and configure...
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
SYS-CON Events announced today that CDS Global Cloud, an Infrastructure as a Service provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. CDS Global Cloud is an IaaS (Infrastructure as a Service) provider specializing in solutions for e-commerce, internet gaming, online education and other internet applications. With a growing number of data centers and network points around the world, ...
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Bradley Holt, Developer Advocate a...
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
Internet of @ThingsExpo has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2016 Silicon Valley. The 6thInternet of @ThingsExpo will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
Big Data has been changing the world. IoT fuels the further transformation recently. How are Big Data and IoT related? In his session at @BigDataExpo, Tony Shan, a renowned visionary and thought leader, will explore the interplay of Big Data and IoT. He will anatomize Big Data and IoT separately in terms of what, which, why, where, when, who, how and how much. He will then analyze the relationship between IoT and Big Data, specifically the drilldown of how the 4Vs of Big Data (Volume, Variety,...
Technology vendors and analysts are eager to paint a rosy picture of how wonderful IoT is and why your deployment will be great with the use of their products and services. While it is easy to showcase successful IoT solutions, identifying IoT systems that missed the mark or failed can often provide more in the way of key lessons learned. In his session at @ThingsExpo, Peter Vanderminden, Principal Industry Analyst for IoT & Digital Supply Chain to Flatiron Strategies, will focus on how IoT de...
Ask someone to architect an Internet of Things (IoT) solution and you are guaranteed to see a reference to the cloud. This would lead you to believe that IoT requires the cloud to exist. However, there are many IoT use cases where the cloud is not feasible or desirable. In his session at @ThingsExpo, Dave McCarthy, Director of Products at Bsquare Corporation, will discuss the strategies that exist to extend intelligence directly to IoT devices and sensors, freeing them from the constraints of ...
Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...