Northampton 2013 Net Income Up 27% on Flat Revenues
In the fourth quarter, net income improves while sales rise marginally
(firmenpresse) - TORONTO, ONTARIO -- (Marketwired) -- 07/17/13 -- Northampton Group Inc. (TSX VENTURE: NHG), an integrated Canadian hotelier, today reported its financial results for the fourth quarter and fiscal year ended March 31, 2013. In the fourth quarter, Northampton posted a quarter-over-quarter sales increase of 1.4% with much improved net income; in the 12 months, sales decreased by 0.2% while net income rose by 27.0%.
"Our fourth quarter is typically soft," said Vinod Patel, President and CEO of the Northampton Group. "However, our revenue this quarter was slightly better than last year's, reflecting a stronger economy, and careful management meant a strong upswing in EBITDA, cash flow, and earnings. But throughout fiscal 2013, we have experienced some specific challenges in different regions and sectors of our business. New hotels and price discounting continue to squeeze our margins in the corridor west of Toronto and in Montreal, where road construction offered an additional barrier to the aloft Montreal. And while there were improvements in the automotive sector and corporate travel generally, leisure and group/tour travel lagged. Overall, despite the sale of one hotel and slight declines in most of our hotels' revenues, we kept our top line steady, and we continue to manage costs carefully, with the result that the year showed improvements in cash flow, net income, and profits."
In Northampton's major markets, calendar 2012 saw occupancy rates increase by one-to-two points, with average daily room rates (ADRs) up by $2.00-to-$3.00, according to Pannell Kerr Forster Consulting (PKF). With PKF's predictions for 2013 showing flat occupancy rates and ADR increases of around 3%, although both economic and industry factors could make that improvement difficult to achieve.
Northampton also sadly reports the passing of long-time Northampton legal counsel and board member, Robert Preston. Born in 1944, Mr. Preston was called to the bar after graduating from law at the University of Western Ontario. A man of much energy and many interests, he so enjoyed his work as Managing Director of the law firm, Ricketts Harris LLP, that retirement was never on the cards.
"Bob was a key player in Northampton's evolution as a public company, and contributed generously of his time, energy, and ideas," said Vinod Patel. "We will all miss him, and his family has our deepest condolences."
Highlights of the Quarter:
The following is a tabulated summary of Northampton's results from continuing operations:
For a more complete discussion of the Company's results, please see Northampton's quarterly filings on , or the quarterly 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 1,943 rooms in 16 hotels (including the new aloft Vaughan Mills hotel in Vaughan, Ontario) with a selective strategic development program in place. Focused on creating a solid 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.
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
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Datum: 17.07.2013 - 19:08 Uhr
Sprache: Deutsch
News-ID 279396
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