Northampton 2014 Sales Up 7.2% While EPS More Than Doubles in the Fourth Quarter, Sales Rise 5.1% But Costs Up 12.5%

TORONTO, ONTARIO--(Marketwired - July 26, 2014) - Northampton Group Inc. (TSX VENTURE:NHG), an integrated Canadian hotelier, today posted its results for the fourth quarter and fiscal year ended March 31, 2014. In the fourth quarter, Northampton reported a quarter-over-quarter sales increase of 5.1% with net income showing the impact of increased costs; in the 12 months, sales increased by 7.2% while earnings rose by 115.8%.

"We were pleased with the top line in both the 12 months and the typically soft fourth quarter," said Vinod Patel, President and CEO of the Northampton Group. "Rising utility prices had a stronger-than-expected impact on our costs in the quarter, but in the 12 months, continued strength in corporate bookings resulted in significant increases in EBITDA, cash flow, and earnings. We are still experiencing some specific challenges in different locations, but overall performance has improved. We anticipate steady performance through the coming year based on our experience to date and the positive predictions of industry experts."

Calendar 2013 in Northampton's locations saw occupancy rates increase by around a percentage point, with average daily room rates (ADRs) up more than $3.00 in the GTA, while Montreal saw a slight decrease and Ottawa was essentially flat. Revenue per available room (RevPAR) rose by 5.2% in Toronto, 1.7% in Montreal, and less than 1% in Ottawa in 2013. According to Pannell Kerr Forster Consulting (PKF), the coming year will see a 1% lift in occupancy rates and a 2-to-3% increase in ADRs; if this is borne out, Northampton may see an improvement to sales and margins.

Highlights of the Year:

• In the 12 months, consolidated revenues rose 7.2% to $30,614,114 from 28,568,630 for the previous fiscal year; for the fourth quarter, revenues increased 5.1% to $6,380,660 from 6,068,445 in the same quarter in fiscal 2013;
  
  
• Cost of sales rose 9.5% in the year and 12.5% in the quarter. Adjusted for the costs of launching the aloft Vaughan Mills in fiscal 2013, the year-over-year increase was 6.4%. Administrative expenses decreased 5.3% in the 12 months and rose 6.1% in the quarter. The decrease reflected a one-time non-cash charge made in fiscal 2013 for stock-based compensation as well as successful realty tax appeals; the increase primarily arose from increased payroll and utility costs;