TORONTO, ONTARIO — (Marketwire) — 08/29/12 — Northampton Group Inc. (TSX VENTURE: NHG)(TSX VENTURE: NHG.DB), an integrated Canadian hotelier, today reported its financial results for the first quarter ended June 30, 2012. Consolidated revenues rose 2.9% to $7.46 million from $7.25 million in the prior year, with a strong contribution from the new aloft Vaughan Mills, launched in May of this year. Net income for the period declined 80.1% to $68 thousand or $0.003 per share from $340 thousand or $0.01 per share in the same quarter of the prior year, as cost of sales rose 8.1%. Excluding costs relating to the start-up of the new hotel, the increase in expenses would have been 4.4%.
“On average, our same hotel sales were up marginally by 0.6% in the quarter, so revenues from the new aloft Vaughan Mills have obviously had a positive impact, and it is important to note that we have not yet seen a full quarter-s contribution from the hotel,” said Vinod Patel, president and CEO of Northampton Group. “Our obvious challenge in the next quarters is to rein in expenses. To that end we continue both to spend carefully, and to market our hotels aggressively. Despite ongoing pressure on room rates, we see significant room for increased profitability from our existing portfolio.”
Nationally, industry analysts Pannell Kerr Forster Consulting (PKF) have lowered their forecast for average daily rates (ADRs) from $130 to 129, as a result of industry performance so far this year. Occupancy rates across the country rose 1.2% in the first half of 2012, while average daily rates rose 1.6%, for an increase in average revenue per available room (RevPAR) of 3.7%. The GTA posted a RevPAR increase of 0.5%, while Ottawa-s RevPAR increased 7.6% and Montreal improved slightly. Northampton-s management anticipates that revenues for the remainder of the year will show an improvement year-over-year as a result of the new aloft Vaughan Mills.
Highlights of the Quarter:
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 .
The following is a tabulated summary of Northampton-s results from continuing operations:
About Northampton
Northampton Group Inc. is an integrated Canadian hotelier with ownership and management interests in 2,129 rooms in 17 hotels, including the new aloft Vaughan Mills. 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.
Contacts:
Northampton Group Inc.
Vinod Patel
Northampton Group Inc.
905-629-9992