Newfoundland Capital Corporation Limited - Third Quarter 2012 - Period Ended September 30 (unaudited)

DARTMOUTH, NS, Nov. 8, 2012 /CNW/ - Newfoundland Capital Corporation Limited ("Company") today announces its financial results for the third quarter ending September 30, 2012.

Highlights

• Revenue for the third quarter of $33.7 million was $1.8 million or 6% higher than last year. Year-to-date revenue of $95.5 million was $3.6 million or 4% higher than 2011.  The growth was due to a combination of organic growth as well as incremental revenue from the acquired stations in British Columbia.
• Earnings before interest, taxes, depreciation and amortization ("EBITDA"⁽¹⁾) of $8.9 million in the quarter were $0.3 million or 3% higher than last year due to higher revenue. Year-to-date EBITDA of $22.7 million was $1.9 million or 8% lower than 2011 due to higher operating expenses. Excluding this year's $1.1 million expense related to the extension of stock options and the accounting for the Company's equity total return swap which reduced operating expenses in the prior year by $1.2 million, year-to-date EBITDA would have been 2% higher than 2011.
• Profit (loss) for the period - the Company posted a loss of $1.1 million in the quarter compared to profit of $4.3 million in 2011. The decrease in profit was primarily due to a $7.5 million non-cash impairment charge recognized in the quarter, further described below. Year-to-date profit of $3.5 million was $9.6 million or 74% lower than the same period in 2011. The impairment charge combined with unrealized mark-to-market investment portfolio losses of $2.3 million this year caused the decline in year-to-date profit.

Significant events

• In the third quarter the Company recognized an impairment charge of $7.5 million related to its television operations in Lloydminster, Alberta.  This was triggered by the decision by the Canadian Radio-television and Telecommunications Commission ("CRTC") to discontinue the Local Programming Improvement Fund effective August 31, 2014.  The details of this are more fully described in the Management's Discussions and Analysis and in the unaudited condensed interim consolidated financial statements.
• Pursuant to its Normal Course Issuer Bid, the Company repurchased 891,134 shares for $7.1 million in the quarter bringing the year-to-date total of shares repurchased to 1,161,768 for total cash consideration of $9.3 million.
• On August 9, 2012, the Board of Directors declared dividends of $0.06 per share to all shareholders of record as at August 31, 2012.  Dividends of $1.8 million were paid on September 14, 2012.

"We are very pleased that positive revenue growth has continued into the third quarter.  We see some softening in that trend heading into the fourth quarter" commented Rob Steele, President and Chief Executive Officer. "We are focusing our attention on managing costs to deliver solid EBITDA results for 2012."

Financial Highlights - Third quarter
(thousands of dollars except share information)		2012		2011
Revenue	$	33,699		31,905
EBITDA^(1)		8,850		8,552
Profit (loss) for the period		(1,061)		4,334
Earnings (loss) per share - basic		(0.04)		0.14
Earnings (loss) per share - diluted		(0.04)		0.14
Share price, NCC.A (closing)		7.50		7.75
Weighted average number of shares outstanding (in thousands)		29,465		30,328
Total assets		229,510		230,195
Long-term debt		52,855		51,662
Shareholders' equity		114,074		109,908

(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 Third Quarter Report.

The Company's complete Third 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.

About Newfoundland Capital Corporation Limited
Newfoundland Capital Corporation Limited (TSX: NCC.A, NCC.B) is one of Canada's leading radio broadcasters with 85 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