Northampton Posts Fiscal 2010 Results
TORONTO, ONTARIO–(Marketwire – July 15, 2010) – Northampton Group Inc., (TSX VENTURE:NHG)(TSX VENTURE:NHG.DB) an integrated Canadian hotelier, today reported its results for fiscal 2010. Affected by increased supply and reduced demand, consolidated revenues for the year dropped 14.2% to $25.66 million from $29.90 million in fiscal 2009. Year-over-year decreases in both occupancy and average daily rates (ADRs) resulted in a decline in revenue per available room (RevPAR) of between 7% and 31%. All properties have been affected by the contraction, with the airport locations experiencing more severe declines. In the fourth quarter, Northampton’s revenues decreased 3.5% year-over-year to $5.44 million from $5.64 million for the same quarter in the previous year. Although the fourth quarter tends to be comparatively soft, the decline was not as severe as was the case in previous quarters this fiscal year. The quarter was affected primarily by reduced leisure and business travel, but also felt the impact of a strong Canadian dollar, higher energy prices, and the combination of decreased demand and increased hotel supply in most of Northampton’s markets. Despite the difficult situation, Northampton posted a 200.6% increase in net income to $1.67 million from $0.55 million in the previous year, primarily as a result of the sale of the Four Points Montreal Centre-Ville in April of 2009. Overall, the environment continues extremely challenging for everyone in the hospitality sector. Northampton’s lean executive team, strict cost containment, and hands-on management have enabled the company to reduce costs both in the year and the quarter, and the company will continue to manage expenses aggressively
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