Press release from CNW Group
Newfoundland Capital Corporation Limited - Second Quarter 2011 - Period Ended June 30 (unaudited)
Thursday, August 04, 2011
DARTMOUTH, NS, Aug. 4, 2011 /CNW/ - Newfoundland Capital Corporation Limited ("Company") today announces its financial results for the second quarter ending June 30, 2011.
- Revenue of $33.4 million was $3.0 million or 10% higher than last year. Year-to-date revenue of $60.0 million was $4.2 million or 7% higher than 2010. These increases were attributable to organic (same-station) revenue growth.
- Earnings before interest, taxes, depreciation and amortization ("EBITDA"(1)) of $11.1 million in the quarter were $4.9 million or 78% higher than last year and year-to-date EBITDA was $16.1 million; $5.1 million or 47% better than 2010. In comparing the current period EBITDA to the prior year, two non-recurring items should be considered. First, to date in 2011 the Company has lower net corporate expenses due to its executive compensation hedge which reduced compensation expense by $1.1 million. Second, the 2010 results include copyright fee expenses of $1.8 million which related to prior periods. Excluding these items, EBITDA was still significantly better than the prior year - 25% higher for the three months ended June 30, 2011 and 17% higher year-to-date, primarily attributable to improved revenue.
- Profit for the period of $5.9 million was $2.5 million or 76% higher than the same quarter last year. Year-to-date profit of $8.8 million was $4.0 million or 84% better than the same period in 2010. These increases were due to improved EBITDA as well as the increase in market value of marketable securities.
- The Board of Directors declared a dividend of $0.06 per share on each of the Company's Class A Subordinate Voting Shares and Class B Common Shares on August 4, 2011, payable on September 15, 2011 to all shareholders of record as at August 31, 2011.
- During the quarter, the Company announced that it has entered into an agreement to sell CKJS AM and CHNK FM in Winnipeg, Manitoba for $5.5 million, subject to the approval of the Canadian Radio-television and Telecommunications Commission ("CRTC").
- In May 2011 the Company's Slave Lake, Alberta operation was destroyed by fire. The Company is currently broadcasting from temporary facilities until a new permanent location is built.
- Subsequent to quarter end, the Company entered into agreements to acquire two FM stations in the Okanagan Valley region of British Columbia for $7.0 million, subject to the approval of the CRTC.
"2011 is shaping up to be another great year for the Company. Double-digit revenue growth this quarter has contributed to significant EBITDA growth", commented Rob Steele, President and Chief Executive Officer. "Our focus on maximizing audience share combined with a great sales effort is expected to continue to drive results."
|Financial Highlights - Second Quarter|
|(thousands of Canadian dollars except share information)||2011||2010|
|Profit for the period||5,895||3,353|
|Earnings per share - basic||0.19||0.10|
|Share price, NCC.A (closing)||8.79||7.20|
|Weighted average number of shares outstanding (in thousands)||30,322||32,972|
|Long-term debt, including current portion||60,271||51,044|
The Company's complete Second Quarter Report, which includes the unaudited condensed consolidated interim financial statements along with related notes 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 has included this measure because the Company's key decision makers believe certain investors use it as a measure of the Company's financial performance and for valuation purposes. The Company also uses this measure internally to evaluate the performance of management. A calculation of this measure is included in the Company's Second 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 81 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.
For further information:
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: (902) 468-7557, Fax: (902) 468-7558, e-mail: firstname.lastname@example.org, Web: www.ncc.ca