Press release from CNW Group
Newfoundland Capital Corporation Limited - Second Quarter 2013 - Period Ended June 30 (unaudited)
Thursday, August 08, 2013
Newfoundland Capital Corporation Limited - Second Quarter 2013 - Period Ended June 30 (unaudited)17:01 EDT Thursday, August 08, 2013
DARTMOUTH, NS, Aug. 8, 2013 /CNW/ - Newfoundland Capital Corporation Limited ("Company") today announces its financial results for the second quarter ending June 30, 2013.
- Revenue for the second quarter of $35.8 million was $1.5 million or 4% higher than last year. Year-to-date revenue of $64.9 million was $3.1 million or 5% higher than 2012. The growth was primarily due to organic increases.
- Earnings before interest, taxes, depreciation and amortization ("EBITDA" (1) ) of $10.3 million in the quarter were $1.1 million or 12% higher than last year and year-to-date EBITDA of $15.5 million was $1.6 million or 11% higher than 2012. The increase in EBITDA was due to higher revenue and because last year's operating expenses included non-cash amounts of $0.8 million in the quarter and $1.1 million year-to-date related to the extension of executive stock option expiry dates. Normalizing EBITDA to exclude these amounts from 2012, EBITDA was 4% higher than the second quarter last year and the year-to-date EBITDA was 3% higher than 2012.
- Profit for the period of $6.0 million was $2.2 million or 59% higher than the same quarter last year. Year-to-date profit of $8.1 million was $3.5 million or 78% higher than the same period in 2012. The combination of lower interest expense and lower unrealized mark-to-market losses contributed to increased profit compared to last year.
- 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 8, 2013, payable on September 13, 2013 to all shareholders of record as at August 30, 2013.
- During the second quarter, the Company launched its new FM stations in Miramichi and Fredericton, New Brunswick. Both 95.9 Sun FM in Miramichi and Up! 93.1 in Fredericton have been well received by the communities.
- In the second quarter, the Company repurchased a total of 464,390 shares for $4.3 million pursuant to its Normal Course Issuer Bid. Subsequent to quarter end, 219,500 shares were repurchased for $1.9 million.
- The Canadian Radio-television and Telecommunications Commission ("CRTC") recently awarded the Company a new FM licence in Clarenville, Newfoundland and Labrador as well as a new repeater licence in Wabasca, Alberta.
- Subsequent to quarter end, the Company announced it had entered into an agreement to acquire CHNI-FM in Saint John, New Brunswick. In July, the Company also announced it had entered into an agreement to sell CHFT-FM in Fort McMurray, Alberta. Both transactions are subject to CRTC approval.
"Revenue and EBITDA continue to show positive growth despite flat industry growth", commented Rob Steele, President and Chief Executive Officer. "We're very pleased with our organic results and also very pleased that we are expanding our operations. We have successfully launched our radio stations in Miramichi and Fredericton, New Brunswick and look forward to seeking out other opportunities to grow."
|Financial Highlights - Second Quarter|
|(thousands of dollars except share information)||2013||2012|
|Profit for the period||5,972||3,759|
|Earnings per share - basic||0.21||0.13|
|Earnings per share - diluted||0.20||0.12|
|Share price, NCC.A (closing)||8.75||7.75|
|Weighted average number of shares outstanding (in thousands)||28,902||30,072|
|Refer to page 10 "Non-IFRS Accounting Measure".|
The Company's complete Second Quarter Report, which includes the unaudited condensed interim 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 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 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 88 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
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