The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from CNW Group

Newfoundland Capital Corporation Limited - Second Quarter 2012 - Period Ended June 30 (unaudited)

Thursday, August 09, 2012

Newfoundland Capital Corporation Limited - Second Quarter 2012 - Period Ended June 30 (unaudited)16:02 EDT Thursday, August 09, 2012DARTMOUTH, NS, Aug. 9, 2012 /CNW/ - Newfoundland Capital Corporation Limited ("Company") today announces its financial results for the second quarter ending June 30, 2012.Highlights Revenue for the second quarter of $34.3 million was $0.9 million or 3% higher than last year. Year-to-date revenue of $61.8 million was $1.8 million or 3% higher than 2011.  The growth was due to a combination of organic increases as well as incremental revenue from the acquired stations in British Columbia.Earnings before interest, taxes, depreciation and amortization ("EBITDA"(1)) of $9.2 million in the quarter were $1.9 million or 17% lower than last year and year-to-date EBITDA was $13.9 million; $2.2 million or 13% lower than 2011 due to higher operating expenses. Normalizing EBITDA to exclude stock-based compensation expense and the accounting for the Company's equity total return swap which reduced operating expenses in the prior year, EBITDA in the quarter would have been approximately 4% lower than 2011 while year-to-date EBITDA would have been on par with 2011.Profit for the period of $3.8 million was $2.1 million or 36% lower than the same quarter last year. Year-to-date profit of $4.5 million was $4.3 million or 48% lower than the same period in 2011.  Impacting year-over-year comparisons were unrealized mark-to-market losses of $0.6 million in the quarter and $2.9 million year-to-date as well as the above-noted items impacting EBITDA.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 9, 2012, payable on September 14, 2012 to all shareholders of record as at August 31, 2012.Significant eventsIn May, the Canadian Radio-television and Telecommunications Commission ("CRTC") awarded the Company new FM licences in Fredericton and Miramichi, New Brunswick. These new services are expected to be launched within the next twelve months.The Company has repurchased a total of 270,634 shares for $2.2 million pursuant to its Normal Course Issuer Bid."While revenue growth isn't as robust as it has been in recent years, we continue to trend positively against last year.  In the coming months we will be paying close attention to revenue and monitoring discretionary costs to achieve our EBITDA goals", commented Rob Steele, President and Chief Executive Officer.  "Important additions to our asset base are the recently awarded FM licences in Fredericton and Miramichi, New Brunswick."Financial Highlights - Second Quarter (thousands of dollars except share information)  20122011Revenue $34,325 33,448EBITDA(1)    9,17711,090Profit for the period   3,7595,895Earnings per share - basic   0.120.19Earnings per share - diluted    0.120.19Share price, NCC.A (closing)   7.75 8.79Weighted average number of shares outstanding (in thousands)   30,07230,322Total assets  236,674236,545Long-term debt   48,807 60,271Shareholders' equity   123,739107,629(1) Refer to page 10 for the reconciliation of EBITDA to profit. The Company's complete Second Quarter Report, which includes the interim unaudited 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 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 LimitedNewfoundland Capital Corporation Limited (TSX: NCC.A, NCC.B) is one of Canada's leading radio broadcasters with 85 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 LIMITEDFor 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: investorrelations@ncc.ca, Web: www.ncc.ca