Newfoundland Capital Corporation Limited - First Quarter 2014 - Period Ended March 31 (unaudited)

DARTMOUTH, NS, May 8, 2014 /CNW/ - Newfoundland Capital Corporation Limited ("Company") today announces its financial results for the first quarter ending March 31, 2014.

Highlights

• Revenue of $28.5 million was $0.3 million or 1% lower than last year. The decrease was primarily due to lower national advertising revenue in the Broadcasting segment.
• Earnings before interest, taxes, depreciation and amortization ("EBITDA"⁽¹⁾) of $4.5 million in the quarter were $0.6 million or 12% lower than last year.  The decrease was primarily due to the lower revenue in the Broadcasting segment.
• The loss for the period was $3.2 million compared to last year's profit of $2.1 million due to acquisition-related costs of $8.4 million related to the Toronto and Vancouver business acquisition. Excluding these costs, profit for the quarter would have been $0.8 million higher than last year primarily due to mark-to-market unrealized gains in the quarter.

Significant events

• In March, the Company completed the most significant business acquisition in its history.  Two radio stations in Toronto and three radio stations in Vancouver were acquired from Bell Media for $111.9 million.
• In March, the Canadian Radio-television and Telecommunications Commission ("CRTC") approved the acquisition of CHNI-FM in Saint John, New Brunswick.  This transaction is expected to close later this year.

"We are very pleased to have completed the Toronto and Vancouver business acquisition.  These are the two largest radio advertising markets in the country and our primary focus is to effectively integrate these new operations. The addition of these licences is transformational, making us a true coast-to-coast broadcaster", commented Rob Steele, President and Chief Executive Officer.  "At the same time we will continue to drive revenue, both locally and nationally, as aggressively as possible, to ensure the continued success of our organic operations."

Financial Highlights - First Quarter
(thousands of dollars except share information)		2014	2013
Revenue	$	28,463	28,766
EBITDA^(1)		4,537	5,175
Profit (loss) for the period		(3,204)	2,095
Earnings (loss) per share - basic		(0.11)	0.07
Earnings (loss) per share - diluted		(0.11)	0.07
Share price, NCC.A (closing)		9.01	9.40
Weighted average number of shares outstanding (in thousands)		28,144	29,183
Total assets		355,080	232,134
Long-term debt		146,968	50,952
Shareholders' equity		130,543	121,465

The Company's complete First Quarter Report, which includes the unaudited condensed interim consolidated financial statements along with related notes in accordance with International Financial Reporting Standards ("IFRS") and the Management's Discussion and Analysis, are available on the Company's website at www.ncc.ca and www.sedar.com.

(1) Non-IFRS Accounting Measure 

EBITDA is a measure that is not defined by International Financial Reporting Standards and is not standardized for public issuers.  This measure may not be comparable to similar measures presented by other public enterprises.  The Company believes this is an important measure because the Company's key decision makers use this measure internally to evaluate the performance of management. The Company's key decision makers also believe certain investors use it as a measure of the Company's financial performance and for valuation purposes.  A calculation of this measure is included in the Company's First Quarter Report.

About Newfoundland Capital Corporation Limited

Newfoundland Capital Corporation Limited (TSX: NCC.A, NCC.B) is one of Canada's leading radio broadcasters with 95 licences across Canada.  The Company reaches millions of listeners each week through a variety of formats and is a recognized industry leader in radio programming, sales and networking. This press release contains forward looking statements.  These forward-looking statements are based on current expectations.  The use of terminology such as "expect", "intend", "anticipate", "believe", "may", "will", "should", "would", "plan" and other similar terminology relate to, but are not limited to, our objectives, goals, plans, strategies, intentions, outlook and estimates.   By their very nature, these statements involve inherent risks and uncertainties, many of which are beyond the Company's control, which could cause actual results to differ materially from those expressed in such forward-looking statements. As a result, there is no guarantee that any forward-looking statements will materialize and readers are cautioned not to place undue reliance on these statements. Unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 

 

SOURCE: Newfoundland Capital Corporation Limited

REF: Robert G. Steele, President and Chief Executive Officer, Scott G.M. Weatherby, Chief Financial Officer and Corporate Secretary, Newfoundland Capital Corporation Limited, 745 Windmill Road, Dartmouth, Nova Scotia B3B 1C2, Tel: [phone], Fax: [phone], e-mail: [email protected], Web: www.ncc.ca