DARTMOUTH, NS, May 10, 2017 /CNW/ - Newfoundland Capital
Corporation Limited (the "Company") today announces its financial results for the first quarter ending March 31, 2017.
Highlights
- Revenue of $35.7 million was $1.1 million or 3% lower
than last year. The decrease was primarily due to revenue declines in the Alberta markets due
to continued economic uncertainty in that region and declines in Ottawa due to downward
pressure on advertising rates.
- Earnings before interest, taxes, depreciation and amortization ("EBITDA" (1) ) of $7.0 million was $1.1 million or 14% lower than last year as a result of lower
revenue.
- Profit for the period was $3.0 million, a decrease of $1.6
million or 35% compared to last year due to lower revenue and a higher provision for income taxes.
Significant events
- In April 2017, the Company announced it has entered into an agreement with Rogers Media to
sell CISL-AM in Vancouver. The sale is subject to approval by the Canadian Radio-television
and Telecommunications Commission ("CRTC").
- Today the Company announced it has entered into an agreement to purchase three radio stations in Kamloops, British Columbia. The acquisition is subject to approval by the CRTC.
"The first quarter was challenging as our Company experienced revenue declines consistent with the overall radio industry"
commented Rob Steele, President and Chief Executive Officer. "We believe that our quality
product and keen focus on cost control will allow us to overcome some of this shortfall during the remainder of the year."
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Financial Highlights - First Quarter
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Three months ended March 31
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(thousands of Canadian dollars, except share information)
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2017
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2016
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Revenue
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$ 35,734
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36,879
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EBITDA (1)
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7,041
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8,162
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Profit
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2,956
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4,571
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Earnings per share - basic
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0.12
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0.17
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Earnings per share - diluted
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0.11
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0.16
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Weighted average number of shares outstanding (in
thousands)
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25,574
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26,630
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March 31
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December 31
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2017
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2016
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Share price, NCC.A (closing)
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$
9.84
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9.76
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Total assets
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365,948
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372,663
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Long-term debt, including current portion
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126,216
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129,455
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Shareholders' equity
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154,259
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151,155
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The Company's complete First 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 First
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
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