DARTMOUTH, NS, March 9, 2017 /CNW/ - Newfoundland Capital
Corporation Limited (the "Company") today announces its financial results for the fourth quarter ending December 31, 2016.
Highlights
- Revenue was $47.0 million in the fourth quarter, a $1.5
million or 3% increase over the fourth quarter of 2015. Annual revenue of $169.5 million
was $4.9 million or 3% higher than last year. Growth was primarily related to higher revenue in
the broadcasting segment, particularly the Toronto and Ottawa
operations as a result of strong listener ratings in those markets.
- Earnings before interest, taxes, depreciation and amortization ("EBITDA" (1) ) in the fourth
quarter of $16.7 million was $2.2 million or 15% higher than the
same period last year as a result of higher revenue and reduced operating costs in the broadcasting segment. During
the fourth quarter, the Company recognized a recovery of $0.5 million in operating expenses as a
result of reduced copyright fees, $0.3 million of which related to a refund of fees paid in
previous periods. Year to date EBITDA of $51.8 million was $5.8
million or 13% higher than 2015 due to the revenue growth achieved in the broadcasting segment as well as the recovery
of $2.2 million as a result of reduced copyright fees, $1.5 million
of which related to a refund of tariffs paid in prior years.
- Profit for the fourth quarter of $10.4 million was $2.5
million higher than the same quarter last year and year to date profit of $31.0 million
was $8.1 million higher than the prior year, primarily as a result of revenue growth, a recovery
of previously paid copyright tariffs, lower interest expense, and a lower effective tax rate.
Significant events
- In December the Board of Directors declared dividends totaling $0.10 per share, bringing the
total dividends declared for 2016 to $0.20 per share which was an increase of $0.05 or 33% compared to 2015.
"We achieved record success in 2016 as a result of our ability to grow revenue in spite of modest declines within the industry
and certain challenged economic regions" commented Rob Steele, President and Chief Executive
Officer. "The Company has also had a keen focus on cost control which will continue in anticipation of persistent economic
challenges."
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Financial Highlights – Fourth quarter
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Three months ended December 31
|
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(thousands of Canadian dollars, except share information)
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2016
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2015
|
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Revenue
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$
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46,972
|
45,493
|
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EBITDA (1)
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16,696
|
14,456
|
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Profit (2)
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10,375
|
7,916
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Earnings per share – basic (2)
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0.41
|
0.30
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Earnings per share – diluted (2)
|
0.39
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0.28
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Weighted average number of shares outstanding (in
thousands)
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25,598
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26,619
|
|
|
|
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December 31
|
December 31
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|
2016
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2015
|
|
|
|
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Share price, NCC.A (closing)
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9.76
|
11.00
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Total assets (2)
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372,663
|
369,281
|
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Long-term debt, including current portion
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129,455
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145,908
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Shareholders' equity (2)
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151,155
|
136,174
|
|
|
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The Company's annual audited consolidated financial statements along with related notes and the annual Management's Discussion
and Analysis are available on the Company's website at www.ncc.ca
and www.sedar.com. The Company's Annual Report will be
available on the Company's website at www.ncc.ca and www.sedar.com by March 31, 2017.
(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 found
in the Company's annual Management's Discussion and Analysis.
(2) Restated for change in accounting policy
Profit and earnings per share for the fourth quarter ended December 31, 2015, and total
assets and shareholders' equity as at December 31, 2015, have been restated as a result of the
retrospective application of a change in accounting policy related to the measurement of deferred income taxes on indefinite life
intangible assets. For further details, refer to note 3 of the annual audited consolidated financial statements for the
year ended December 31, 2016.
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
To view the original version on PR Newswire, visit: http://www.newswire.ca/en/releases/archive/March2017/09/c1303.html