Newfoundland Capital Corporation Limited - Third Quarter 2014 - Period Ended September 30 (unaudited)

DARTMOUTH, NS, Oct. 30, 2014 /CNW/ - Newfoundland Capital Corporation Limited ("Company") today announces its financial results for the third quarter ending September 30, 2014.

Highlights

• Revenue for the third quarter of $39.3 million was $6.6 million or 20% higher than last year. Year-to-date revenue of $110.1 million was $13.1 million or 14% higher than 2013. The growth was due to the expansion into Toronto and Vancouver which offset declines in the Company's other markets. 
• Earnings before interest, taxes, depreciation and amortization ("EBITDA"⁽¹⁾) of $10.0 million in the quarter were $2.5 million or 33% higher than last year. Year-to-date EBITDA of $26.7 million was $3.8 million or 17% higher than 2013. EBITDA is higher this year due to the expansion into the Toronto and Vancouver markets. 
• Profit for the period of $4.3 million was $4.4 million lower than last year's profit of $8.7 million primarily due to the fact that last year's profit included a one-time positive adjustment to the provision for income tax of $4.7 million.  Year-to-date profit of $8.6 million was $8.1 million lower than the same period in 2013 primarily due to the one-time $8.9 million transaction costs associated with the Toronto and Vancouver business acquisition in 2014 and the lower provision for income taxes in 2013.

Significant events

• In July, the Company completed the acquisition of CHNI-FM in Saint John, New Brunswick. 
• On August 13, 2014, the Board of Directors declared dividends of $0.06 per share to all shareholders of record on September 19, 2014. Dividends of $1.7 million were paid subsequent to quarter end on October 3, 2014.

"Revenue growth has continued to be a challenge this year in our organic markets which have been impacted by lower national revenue. The combined results from Toronto and Vancouver have met our expectations and have been accretive since acquisition," commented Rob Steele, President and Chief Executive Officer. "Our concerted efforts in marketing, promotion and research this year will set the stage for 2015."

Financial Highlights – Third quarter
(thousands of Canadian dollars except share information)		2014	2013
Revenue	$	39,301	32,749
EBITDA^(1)		9,980	7,482
Profit for the period		4,265	8,656
Earnings per share – basic		0.15	0.30
Earnings per share – diluted		0.15	0.29
Share price, NCC.A (closing)		8.30	9.40
Weighted average number of shares outstanding (in thousands)		28,155	28,528
Total assets		361,849	234,777
Long-term debt, including current portion		145,056	49,825
Shareholders' equity		140,673	128,374

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.

(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.

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

Related Links

http://www.ncc.ca