Newfoundland Capital Corporation Limited - Third Quarter 2016 - Period Ended September 30 (unaudited)

DARTMOUTH, N.S., Nov. 3, 2016 /CNW/ - Newfoundland Capital Corporation Limited (the "Company") today announces its financial results for the third quarter ending September 30, 2016.

Highlights

• Revenue for the third quarter of $41.5 million was $0.4 million or 1% higher than the same quarter last year and year-to-date revenue of $122.6 million was $3.5 million or 3% higher than 2015. The increase during the quarter was primarily due to growth in Toronto and year-to-date was primarily due to growth in Toronto and Ottawa as a result of strong listener ratings in those markets.     
• Earnings before interest, taxes, depreciation and amortization ("EBITDA"⁽¹⁾) of $13.1 million in the third quarter was $1.2 million or 10% higher than the third quarter last year and year-to-date EBITDA of $35.1 million was $3.6 million or 11% higher than 2015.  The improvements in EBITDA relate primarily to a non-recurring recovery of previously expensed copyright tariffs, partially offset by restructuring costs incurred in the third quarter.  Excluding the net impact of these items of $0.8 million, EBITDA was 3% higher than the third quarter last year and year-to-date EBITDA was 9% higher than the same period last year. The improvements are a result of revenue growth and the Company's continued commitment to managing costs.
• Profit for the period of $7.7 million was $1.1 million or 16% higher than the same quarter last year and year-to-date profit of $20.7 million was $5.5 million or 36% higher than last year.  The increase in the quarter and year to date were due to higher revenue, net expense recoveries and lower interest expense. 

Significant events

• During the third quarter, the Board of Directors approved an increase in dividends to $0.20 per share per annum, up from $0.15 per share per annum. As a result, the Board of Directors declared a dividend of $0.10 on each of its Class A Subordinate Voting and Class B Common shares. The dividends were paid on September 15, 2016 to shareholders of record at the close of business on August 31, 2016.

"This year has been very rewarding for our shareholders.  Both revenue and EBITDA have improved over last year and that contributed to our decision to increase annual dividends" commented Rob Steele, President and Chief Executive Officer.  "Our national footprint combined with a focus on improving operational efficiencies should enable the Company to experience continued success in the future."

The Company's complete Third 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

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) owns and operates Newcap Radio which 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