Newfoundland Capital Corporation Limited - First Quarter 2018 - Period Ended March 31 (unaudited)

DARTMOUTH, NS, May 15, 2018 /CNW/ - Newfoundland Capital Corporation Limited (the "Company") today announces its financial results for the first quarter ended March 31, 2018.

Highlights

• Revenue of $35.7 million was $0.1 million or less than 1% lower than last year. The decrease was primarily due to revenue declines in Newfoundland and Labrador and Alberta due to economic challenges in those markets, partially offset by the recent business acquisition in Kamloops, British Columbia.
• Adjusted Earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"⁽¹⁾) of $7.0 million was $0.1 million or 1% lower than last year as a result of slightly lower revenue and slightly higher operating expenses.
• Profit for the period was $3.3 million, an increase of $0.4 million or 12% compared to last year due to a lower provision for income taxes.

Significant events

• Subsequent to quarter end, the Company announced that it has signed a definitive agreement with Stingray Digital Group Inc. ("Stingray") under which Stingray will acquire all the issued and outstanding shares of the Company for $14.75 per share, payable by a combination of cash and Stingray shares.

"The first quarter saw slight declines in revenue and Adjusted EBITDA compared to the prior year", commented Rob Steele, Chairman, President and Chief Executive Officer. "We will continue to focus on operations to overcome this small shortfall during the remainder of the year."

Financial Highlights - First Quarter
		Three months ended March 31
(thousands of Canadian dollars, except share information)		2018	2017
Revenue	$	35,677	35,734
Adjusted EBITDA ^(1)		6,955	7,041
Profit		3,313	2,956
Earnings per share - basic		0.13	0.12
Earnings per share - diluted		0.12	0.11
Weighted average number of shares outstanding (in thousands)		25,444	25,574
		March 31	December 31
		2018	2017
Share price, NCC.A (closing)	$	12.90	12.95
Total assets		360,190	369,103
Long-term debt, including current portion		111,541	109,795
Shareholders' equity		164,971	163,758

The Company's complete First Quarter Report, which includes the unaudited condensed interim consolidated financial statements along with related notes in accordance with International Accounting Standard ("IAS") 34, "Interim Financial Reporting" as issued by the International Accounting Standards Board ("IASB") 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

Adjusted 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) owns and operates Newcap Radio which is one of Canada's leading radio broadcasters with 101 broadcast licences (72 radio stations and 29 repeating signals) 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, Chairman, President and Chief Executive Officer, Scott G.M. Weatherby, Chief Financial Officer and Corporate Secretary, Newfoundland Capital Corporation Limited, 8 Basinview Drive, Dartmouth, Nova Scotia B3B 1G4, Tel: [phone], Fax: [phone], e-mail: [email protected], Web: www.ncc.ca

Related Links

http://www.ncc.ca