Newfoundland Capital Corporation Limited - Second Quarter 2017 - Period Ended June 30 (unaudited)

DARTMOUTH, NS, Aug. 10, 2017 /CNW/ - Newfoundland Capital Corporation Limited (the "Company") today announces its financial results for the second quarter ending June 30, 2017.

Highlights

• Revenue for the second quarter of $43.6 million was $0.6 million or 1% lower than the same quarter last year and year-to-date revenue of $79.3 million was $1.8 million or 2% lower than 2016. The decrease during the quarter and year-to-date was primarily due to revenue declines in the Company's Alberta and Newfoundland and Labrador operations as a result of continued economic challenges in those regions of the country and declines in Ottawa as a result of downward pressure on advertising rates in that market. These declines were partially offset by growth in the Company's Toronto and Sudbury operations, which have achieved strong listener ratings.
• Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"⁽¹⁾) of $13.9 million in the second quarter was on par with the second quarter last year and year-to-date Adjusted EBITDA of $20.9 million was $1.1 million or 5% lower than 2016. Excluding the impact of a $0.4 million non-cash expense related to the extension of certain executive stock options, Adjusted EBITDA would have been 3% higher in the quarter due to the Company's focus on controlling costs and operating efficiently. The decline in Adjusted EBITDA year-to-date was a result of the revenue declines combined with the non-cash expense related to the extension of certain executive stock options.
• Profit for the period of $8.4 million was $0.1 million or 1% higher than the same quarter last year. Year-to-date profit of $11.3 million was $1.6 million or 12% lower than last year due primarily to lower revenue.

Significant events

• In June 2017, the Company received Canadian Radio-television and Telecommunications Commission ("CRTC") approval and finalized the purchase of three radio stations in Kamloops, British Columbia.
• In June 2017, the Company received CRTC approval and finalized the sale of CISL-AM in Vancouver, British Columbia.
• Subsequent to quarter-end, the Board of Directors approved an increase in dividends to $0.50 per share per annum, up from $0.20 per share per annum. As a result, the Board of Directors declared a dividend of $0.25 per share on each of the Company's Class A Subordinate Voting Shares and Class B Common Shares, payable on September 15, 2017 to all shareholders of record as at August 31, 2017.

"The Company had a successful second quarter as a focus on controlling costs resulted in savings that more than offset a slight decline in broadcasting revenue," commented Rob Steele, President and Chief Executive Officer. "We are pleased with the Company's overall results as our efforts to operate efficiently have allowed us to grow margins in the Broadcasting segment compared to the same quarter last year." 

Financial Highlights - Second Quarter
		Three months ended June 30
(thousands of Canadian dollars, except share information)		2017	2016^(2)
Revenue	$	43,604	44,225
Adjusted EBITDA^(1)		13,850	13,811
Profit		8,359	8,300
Earnings per share - basic		0.33	0.31
Earnings per share - diluted		0.31	0.30
Weighted average number of shares outstanding (in thousands)		25,572	26,448
		June 30	December 31
		2017	2016
Share price, NCC.A (closing)	$	10.64	9.76
Total assets		373,331	372,663
Long-term debt, including current portion		122,326	129,455
Shareholders' equity		163,042	151,155

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

⁽²⁾ Restated for change in accounting policy

Profit and earnings per share for the second quarter ended June 30, 2016 have been restated as a result of the retrospective application for a change in accounting policy related to the measurement of deferred income taxes on indefinite life intangible assets.  For further details, refer to note 2(c) of the interim financial statements.

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, 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