Newfoundland Capital Corporation Limited - Fourth Quarter 2007 - Period Ended December 31 (unaudited)


    DARTMOUTH, NS, March 10 /CNW/ - March 10, 2008, Newfoundland Capital
Corporation Limited ("the Company") today announces its financial results for
the fourth quarter and fiscal year ending December 31, 2007.

    Highlights

    The Company had a strong quarter and year with double digit EBITDA growth
in the broadcasting segment.- Revenue of $27.7 million is $0.3 million, or 1%, lower than 2006, while
      revenue for the year grew by 5% to $98.8 million from a combination of
      organic and new station growth.
    - Earnings before interest, taxes, depreciation and amortization
      ("EBITDA"(1)) of $6.6 million increased in the quarter by $1.0 million,
      or 19%; all driven by growth in the broadcasting segment. For the year,
      EBITDA of $17.6 million was down $5.4 million compared to last year.
      Excluding the net impact of investment income, EBITDA for the year
      would have been $3.7 million, or 26% higher than 2006.
    - Net income of $5.8 million was $2.5 million higher than the same
      quarter last year due to a future tax recovery related to corporate
      income tax rate reductions. For the year, net income of $20.3 million
      exceeded last year's $12.0 million due to gains on disposal of its
      Kitchener-Waterloo station and the Halterm Income Fund Trust Units.
    - A dividend of $0.15 per share was declared by the Board of Directors in
      December 2007, bringing the total dividends declared for 2007 to
      $0.30 per share.

    Significant events

    - The Company acquired the minority shareholders' 38% interest in two
      licences in Moncton, New Brunswick. This follows the acquisition of the
      minority interest in certain Alberta licences in the second quarter of
      2007.
    - The Canadian Radio-television and Telecommunications Commission
      ("CRTC") granted the Company's request to eliminate the format
      condition of licence on CIQX-FM in Calgary, Alberta and to increase the
      power coverage of the FM licence in Winnipeg, Manitoba.
    - In addition, the CRTC awarded the Company two new FM licences and three
      AM to FM conversions in 2007.
    - Subsequent to December 31, 2007, the Company entered into an agreement
      with CTV Limited to acquire the remaining 50% of Metro Radio
      Group Inc. for $8.5 million, subject to CRTC approval. Metro Radio
      Group Inc. operates CKUL-FM in Halifax, Nova Scotia.

    Rob Steele, President and Chief Executive Officer commented: "Our priority
in 2007 was to improve organic operations after recent years of growth and
expansion. We are very pleased to report that the broadcasting segment posted
a 15% improvement in EBITDA this year."

    Financial Highlights - Fourth Quarter
    (thousands of dollars except share information)        2007        2006
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Revenue                                         $    27,736      28,064
    EBITDA(1)                                             6,592       5,559
    Net income                                            5,766       3,285
    -------------------------------------------------------------------------
    Earnings per share - basic                             0.52        0.29
                       - diluted                           0.50        0.28
    Share price, NCC.A (closing)                          20.05       17.40
    Weighted average number of shares
     outstanding (in thousands)                          11,091      11,199
    -------------------------------------------------------------------------
    Total assets                                        231,296     217,762
    Long-term debt                                       61,005      53,771
    Shareholders' equity                                104,952      90,922
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Refer to page 6 for the reconciliation of EBITDA to net income.

    Corporate Developments

    This is a discussion of the key corporate developments; they should be
considered when reviewing the "Overview of consolidated operating results"
section.

    2007 developments

    - February 1, 2007 - the CRTC approved the Company's application to
      convert its AM signal to FM in Edson, Alberta. The FM station has been
      on-air since July featuring classic hits.
    - March 19, 2007 - the Company successfully launched the new Calgary,
      Alberta FM station, FUEL 90.3, featuring an adult album alternative
      format.
    - May 16, 2007 - the Company acquired the minority shareholder's 23.7%
      interest in 3937844 Canada Inc. for cash consideration of
      $10.7 million. 3937844 Canada Inc. owns and operates 21 of the
      Company's 33 licences throughout the province of Alberta. The Company
      now owns 100% of this subsidiary.
    - July 6, 2007 - the CRTC approved the Company's application for two new
      FM licences in Nova Scotia, one in Sydney and one in Kentville. The
      work required to launch these stations is in progress with official
      launch dates expected to be within the next six months.
    - October 1, 2007 - the Company acquired the 37.8% non-controlling
      interest in Atlantic Stereo Limited which operates the two FM licences
      in Moncton, New Brunswick for cash consideration of $6.9 million. The
      Company now owns 100% of this subsidiary.
    - December 6, 2007 - the CRTC approved a power increase from 1,300 watts
      to an average effective radiated power of 60,200 watts related to the
      Company's CHNK-FM licence in Winnipeg, Manitoba. This will allow the
      licence to be accessible to a larger listening audience, improving its
      marketability to prospective clients.
    - December 14, 2007 - the CRTC approved the removal of certain format
      restrictions on the Company's CIQX-FM licence in Calgary, Alberta. The
      Company is no longer required to adhere to a strict music format with
      limited audience appeal. On March 3, 2008, the station was re-launched
      as XL 103-FM, "Calgary's Greatest Hits Radio", featuring classic music
      from the 60's, 70's, and 80's.

    2006 developments

    - March 23, 2006 - the CRTC approved the purchase of CKJS Limited which
      held the CKJS-AM broadcast licence in Winnipeg, Manitoba. The
      transaction was completed April 30, 2006 for aggregate consideration of
      $2.3 million.
    - March 24, 2006 - awarded an FM radio licence in Charlottetown, Prince
      Edward Island and a conversion of the Company's existing station,
      CHTN-AM, from an AM to FM signal. The stations were launched in the
      Summer of 2006.
    - November 15, 2006 - awarded a new FM radio licence to broadcast in Fort
      McMurray, Alberta. The station is expected to launch during the first
      half of 2008.

    The results of the above acquired or launched stations have been included
in the consolidated financial statements since the respective acquisition and
launch dates.

    The fourth quarter of the year is generally a period of higher retail
spending and results in increased advertising revenue.

    Consolidated Operating Results

               Three months ended December 31        Year ended December 31
               ------------------------------        ------------------------
    (thousands                         Growth                        Growth
     of dollars,                    ---------                    ------------
     except                          To-  Org-                    To-   Org-
     percentages)  2007      2006   tal  anic      2007    2006  tal   anic
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Revenue
      Broad-
       cast-
       ing     $ 26,962    27,269    (1%)  (2%)  95,392  90,643    5%     2%
      Corpo-
       rate
       and
       other        774       795    (3%)  (3%)   3,426   3,294    4%     4%
               ------------------               ---------------
               $ 27,736    28,064    (1%)  (2%)  98,818  93,937    5%     2%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Fourth quarter consolidated revenue of $27.7 million represented a 1%
decrease from 2006 while year-to-date revenue of $98.8 million was 5% higher
than the prior year. In the quarter, there was a slight decrease in
broadcasting revenue. The 5% increase year over year was attributed to a mix
of organic and incremental growth. Newfoundland and Labrador, Ottawa, Ontario
and properties across Alberta posted organic revenue increases. The
incremental growth was a result of the new stations launched in March in
Calgary, Alberta, combined with the Charlottetown, Prince Edward Island
stations launched in July 2006.
    Corporate and other revenue was slightly lower than the same quarter last
year, but finished ahead of 2006 on a year-to-date basis due to higher revenue
from hotel operations.

    Other income

    Other income in the fourth quarter of $1.6 million was on par with last
year. For the year, other income of $0.4 million was significantly lower than
last year's $9.7 million because 2006 included net gains of $8.7 million on
the disposal of marketable securities. Due to the long-term nature of the
investment in Halterm Income Fund Trust Units, the $10.8 million gain on
disposal was disclosed separately from other income.

    Operating expenses

    Operating expenses of $22.7 million in the fourth quarter were 
$1.5 million lower than 2006. This decrease was due to lower variable costs
associated with lower revenue, combined with a $0.2 million cost savings this
quarter related to CRTC fees (described below), and because of reductions in
fixed costs amounting to approximately $0.7 million. On a year-to-date basis,
operating expenses of $81.6 million were higher than last year by
$1.1 million. Increased revenue caused an increase in variable costs for the
year but this increase was partially offset by lower CRTC fees. In 2007,
management discontinued accruing CRTC Part II fees which resulted in savings
of $0.6 million compared to the twelve months last year. The Federal Court
rendered a decision in late 2006 stating that these fees were an illegal tax.
There has been no appeal of this decision; therefore, management determined it
appropriate to discontinue the accrual of these fees in 2007.
    Fourth quarter Corporate and other expenses were slightly higher than the
same period last year and were $0.3 million lower than the twelve months ended
December 31, 2006. The primary reason for the decrease was lower costs
associated with the executive stock option plan this year.

    Earnings before interest, taxes, depreciation and amortization
    (EBITDA(1))

               Three months ended December 31        Year ended December 31
               ------------------------------        ------------------------
    (thousands                         Growth                        Growth
     of dollars,                    ---------                    ------------
     except                          To-  Org-                    To-   Org-
     percentages)  2007      2006   tal  anic      2007    2006  tal   anic
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    EBITDA
      Broad-
        cas-
       ting    $  9,107     7,896    15%   18%   26,792  23,372   15%    16%
      Corpo-
       rate
       and
       other     (2,515)   (2,337)    -     -    (9,164)   (327)   -      -
               ------------------               ---------------
               $  6,592     5,559    19%   22%   17,628  23,045  (24%)  (22%)
    -------------------------------------------------------------------------
    % of
     Revenue
      Broad-
       casting       34%       29%    5%    4%       28%     26%   2%     2%
      Total          23%       19%    4%    4%       18%     22%  (4%)   (4%)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Fourth quarter consolidated EBITDA of $6.6 million was $1.0 million, or
19%, better than 2006. This improvement was due to the broadcasting segment
where EBITDA grew by $1.2 million, or 15% over last year. Of this increase,
18% was due to organic EBITDA growth. The primary contributors to organic
EBITDA growth included the Alberta properties, Ottawa, Ontario, Halifax, Nova
Scotia and Newfoundland and Labrador. Corporate and other EBITDA was down
$0.2 million.
    Year-to-date consolidated EBITDA of $17.6 million was $5.4 million, or
24%, lower than last year. This decrease was solely a result of lower
investment income. Excluding the impact of investment income, consolidated
EBITDA would have been $3.7 million, or 26%, higher than last year.
Broadcasting EBITDA of $26.8 million finished strong for the year with a
$3.4 million, or 15% increase over 2006. Of this increase, 16% came from
organic operations, primarily driven by increases in Alberta properties,
Ottawa, Ontario and Newfoundland and Labrador. Corporate and other EBITDA was
lower than last year because of lower investment income.

    Depreciation and amortization

    Depreciation and amortization expense was higher than the quarter and the
twelve months ended December 31, 2006 because of an increase in the
depreciable asset base in 2007.

    Interest expense

    Interest expense of $1.0 million in the quarter was $0.1 million higher
than last year because of the higher average debt level in the quarter and
higher interest rates. On a year-to-date basis, interest expense of
$3.2 million was $0.1 million lower than last year. The Company's lower
long-term debt averaged throughout the year helped to offset higher interest
rates.

    Accretion expense

    Accretion of other liabilities arises from discounting Canadian Content
Development ("CCD") commitments to reflect the fair value of the obligations.
The expense recognized in the quarter and year-to-date was higher than last
year because of additional CCD obligations related to the new Calgary, Alberta
licence.

    Loss (income) on equity accounted investment

    The Company's 29.9% interest in Larche Communications (Kitchener) Inc. was
sold on April 12, 2007 and as a result, there was no amount for income on
equity accounted investment since then. Year-to-date results include the
Company's proportionate share of the losses realized up to the date the
interest was sold.

    Gain on disposal of equity accounted investment

    The Company disposed of its interest in Larche Communications (Kitchener)
Inc. for proceeds of $4.0 million which resulted in a $3.8 million gain in the
second quarter.

    Gain on disposal of long-term investment

    On January 19, 2007, the Halterm Income Fund Trust Units were disposed of
for proceeds of $14.5 million (2006 - $0.4 million) which resulted in a
year-to-date gain of $10.8 million (2006 - $0.2 million).

    Income taxes

    The effective income tax rate in the quarter and for the year was much
lower than the statutory rate of 38% because of two factors. Firstly, lower
general tax rates were enacted in Canada twice in 2007 and once last year. As
a result, the Company re-measured its future income tax assets and liabilities
and recorded a future income tax recovery of $2.4 million  (2006 -
$1.3 million). The second factor is that the net capital gains were taxed at
one-half the normal tax rate.

    Non-Controlling Interest in Subsidiaries' Earnings

    Non-controlling interest in subsidiaries' earnings represented the 23.7%
that Standard Radio Inc. held in 3937844 Canada Inc. which operates twenty-one
of the Company's thirty-three licences in Alberta, and the 37.8% that minority
shareholders had in Atlantic Stereo Limited which operates the Moncton, New
Brunswick licences. The Company acquired the 23.7% minority shareholders'
interest on May 16, 2007 for cash consideration of $10.7 million and on
October 1, 2007, the 37.8% minority interest was purchased for $6.9 million.
Non-controlling interest accounting was no longer required as of the
acquisition dates which explains why the expense is lower than last year and
nil in the quarter and why there is no non-controlling interest amount on the
balance sheet at year end.

    Net income
                                       Basic                          Basic
    (thousands     Three months     Earnings       Year ended      Earnings
     of           ended Dec. 31    Per Share          Dec. 31     Per Share
     dollars,     -------------    ---------       ----------     ---------
     except
     share data)   2007    2006   2007  2006     2007    2006   2007   2006
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net income  $ 5,766   3,285   0.52  0.29   20,313  11,967   1.83   1.07
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Net income in the quarter was $2.5 million higher than 2006. Improved
operating results contributed to higher net income as did the previously
disclosed effect of the reduction of future income tax rates.
    Year-to-date net income was $8.3 million better than last year mostly due
to the gains realized on the disposal of the long-term investment and the sale
of the equity accounted investment.

    Other Comprehensive Income ("OCI")

    OCI consists of the net change in the fair value of the Company's cash
flow hedges and assets available-for-sale. Cash flow hedges include interest
rate swaps and an equity total return swap. The net change in the fair value
of the interest rate swaps in the quarter was an after-tax loss of
$0.1 million and the year-to-date change was an after-tax gain of under
$0.1 million. The net change in the fair value of the equity total return swap
was an after-tax gain of $0.4 million in the quarter and an after-tax gain of
$0.3 million year-to-date. The asset available-for-sale was made up of the
Halterm Income Fund Trust Units which were disposed of in January 2007. The
disposition resulted in an after-tax gain of $8.9 million which was
transferred from OCI to net income in the first quarter. For the fourth
quarter, OCI was $0.3 million and year-to-date OCI was a loss of $8.6 million.

    Liquidity and Capital Resources

    The Company's net cash flow from operating activities in the quarter of
$3.0 million, combined with long-term debt borrowings of $7.3 million, were
primarily used to finance the $6.9 million acquisition of the minority
shareholders' interest in Atlantic Stereo Limited and to purchase property and
equipment aggregating $2.2 million.
    For the fourth quarter last year, cash flow from operating activities in
the quarter of $4.6 million was used to pay CCD commitments of $1.9 million
and to purchase property and equipment of $0.8 million.
    For the year, cash flows from operating activities of $4.2 million along
with long-term debt borrowings of $21.0 million were used to finance the
acquisitions of non-controlling interests of $17.6 million, to repurchase
capital stock of $3.7 million, to pay $3.3 million of dividends and to make
CCD payments aggregating $3.5 million. The proceeds from the disposal of
Halterm Income Fund Trust Units and from the sale of an equity accounted
investment of $18.5 million were used to repay $13.8 million of long-term debt
and to finance capital asset additions in the amount of $6.0 million.
    In 2006, cash flows from operating activities of $15.3 million were used
to purchase property and equipment of $4.4 million, to pay dividends of
$3.4 million, to make CCD payments of $3.1 million, to finance the Winnipeg,
Manitoba $2.3 million business acquisition and to repurchase capital stock for
$2.0 million.

    Subsequent event

    In March 2008, the Company entered into an agreement with CTV Limited to
acquire the remaining 50% of Metro Radio Group Inc. for $8.5 million, subject
to CRTC approval. Metro Radio Group Inc. operates CKUL-FM in Halifax, Nova
Scotia.

    Non-GAAP Measure

    (1) EBITDA is defined as net income excluding depreciation and
        amortization expense, interest expense, accretion of other
        liabilities, loss on equity accounted investment, gain on disposal of
        equity accounted investment, gain on disposal of long-term
        investment, provision for income taxes (recovery) and non-controlling
        interest in subsidiaries' earnings. A calculation of this measure is
        as follows:

                                Three months ended             Year ended
                                    December 31               December 31
    (thousands of dollars)         2007      2006          2007        2006
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net income                  $ 5,766     3,285        20,313      11,967
    Non-controlling interest
     in subsidiaries' earnings        -       357           417         833
    Provision for income taxes
     (recovery)                  (1,535)     (164)        3,089       2,326
    Gain on disposal of
     long-term investment             -         -       (10,843)       (168)
    Gain on disposal of
     equity accounted investment      -         -        (3,826)          -
    Loss on equity accounted
     investment                       -        44            14          11
    Accretion of other
     liabilities                    182       288         1,187       1,022
    Interest expense              1,013       693         3,203       3,309
    Depreciation and
     amortization expense         1,166     1,056         4,074       3,745
                                ---------------------------------------------
    EBITDA                      $ 6,592     5,559        17,628      23,045
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    This measure is not defined by Generally Accepted Accounting Principles
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.


    Consolidated Balance Sheets
    (unaudited)

    (thousands of dollars)                                 2007        2006
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Assets
    Current assets
      Marketable securities                        $     16,167      12,404
      Receivables                                        21,351      20,783
      Note receivable                                         -         927
      Prepaid expenses                                      966         610
      Other assets                                          614       3,704
      Future income tax assets                            2,703       1,925
                                                   --------------------------
        Total current assets                             41,801      40,353
    Property and equipment                               35,234      32,392
    Other assets                                          4,642       8,069
    Broadcast licences                                  143,245     131,267
    Goodwill                                              4,859       4,337
    Future income tax assets                              1,515       1,344
                                                   --------------------------
                                                   $    231,296     217,762
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Liabilities and Shareholders' Equity
    Current liabilities
      Bank indebtedness                            $      1,117         802
      Accounts payable and accrued liabilities           18,053      19,459
      Dividends payable                                   1,664       1,680
      Income taxes payable                                7,313       7,236
      Current portion of long-term debt                      23          23
                                                   --------------------------
        Total current liabilities                        28,170      29,200
    Long-term debt                                       61,005      53,771
    Other liabilities                                    19,665      17,083
    Future income tax liabilities                        17,504      15,106
    Non-controlling interest in subsidiaries                  -      11,680
    Shareholders' equity                                104,952      90,922
                                                   --------------------------
                                                   $    231,296     217,762
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Consolidated Statements of Income
    (unaudited)

                                 Three months ended           Year ended
    (thousands of dollars             December 31             December 31
     except per share data)        2007        2006        2007        2006
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Revenue                    $ 27,736      28,064      98,818      93,937
    Other income                  1,554       1,729         446       9,667
                               ----------------------------------------------
                                 29,290      29,793      99,264     103,604
    Operating expenses           22,698      24,234      81,636      80,559
    Depreciation                  1,010         948       3,463       3,300
    Amortization of deferred
     charges                        156         108         611         445
                               ----------------------------------------------
    Operating income              5,426       4,503      13,554      19,300
    Interest expense              1,013         882       3,203       3,309
    Accretion of other
     liabilities                    182          99       1,187       1,022
    Loss on equity accounted
     investment                       -          44          14          11
    Gain on disposal of equity
     accounted investment             -           -      (3,826)          -
    Gain on disposal of
     long-term investment             -           -     (10,843)       (168)
                               ----------------------------------------------
                                  4,231       3,478      23,819      15,126
    Provision for income
     taxes (recovery)            (1,535)       (164)      3,089       2,326
                               ----------------------------------------------
                                  5,766       3,642      20,730      12,800
    Non-controlling interest
     in subsidiaries' earnings        -         357         417         833
                               ----------------------------------------------
    Net income                 $  5,766       3,285      20,313      11,967
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Earnings per share
      - basic                  $   0.52        0.29        1.83        1.07
      - diluted                    0.50        0.28        1.77        1.04
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Consolidated Statements of Shareholders' Equity
    (unaudited)

                                                               Year ended
                                                              December 31
    (thousands of dollars)                                 2007        2006
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Retained earnings, beginning of year           $     45,525      38,441
    Net income                                           20,313      11,967
    Dividends declared                                   (3,327)     (3,358)
    Repurchase of capital stock                          (2,890)     (1,525)
                                                   --------------------------
    Retained earnings, end of year                       59,621      45,525
    Capital stock                                        43,345      43,304
    Contributed surplus                                   1,778       2,093
    Accumulated other comprehensive income                  208           -
                                                   --------------------------
    Total shareholders' equity                     $    104,952      90,922
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Consolidated Statements of Comprehensive Income
    (unaudited)

                                                   Three months        Year
                                                          ended       ended
                                                       December    December
                                                             31          31
    (thousands of dollars)                                 2007        2007
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net income                                     $      5,766      20,313
                                                   --------------------------
    Other comprehensive income (loss):
    Net change in fair values of
     cash flow hedges
      Net change in fair value of interest
       rate swaps                                          (127)         64
      Net change in fair value of equity
       total return swap                                    648         467
      Income tax expense on the net change
       in fair value of interest rate swaps and
       equity total return swap                            (227)       (200)
                                                   --------------------------
                                                            294         331
    Net change in fair value of asset
     available-for-sale
      Realized gain on disposal of
       Halterm Income Fund
        Trust Units transferred to net income,
         net of income taxes of $1,952                        -      (8,891)
                                                   --------------------------
    Other comprehensive income (loss)                       294      (8,560)
                                                   --------------------------
    Comprehensive income                           $      6,060      11,753
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Consolidated Statement of
     Accumulated Other Comprehensive Income
    (unaudited)
                                                                 Year ended
                                                                December 31
    (thousands of dollars)                                             2007
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Accumulated other comprehensive income,
     beginning of year                                        $           -
    Transition adjustment for cash flow hedges,
     net of income tax recovery of $77                                 (123)
    Transition adjustment for unrealized
     gains associated with available-
     for-sale investment, net of
     income taxes of $1,952                                           8,891
                                                          -------------------
    Accumulated other comprehensive income,
     beginning of year                                                8,768
    Other comprehensive income (loss) for the year                   (8,560)
                                                          -------------------
    Accumulated other comprehensive income,
     end of year                                              $         208
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Consolidated Statements of Cash Flows
    (unaudited)
                                 Three months ended           Year ended
                                      December 31             December 31
    (thousands of dollars)         2007        2006        2007        2006
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Operating Activities
    Net income                  $ 5,766       3,285      20,313      11,967
    Items not involving cash
      Depreciation and
       amortization               1,166       1,056       4,074       3,745
      Future income taxes
       (recovery)                (2,294)       (175)       (800)       (165)
      Gain on disposal of
       long-term investment           -           -     (10,843)       (168)
      Gain on disposal of
       equity accounted
       investment                     -           -      (3,826)          -
      Executive stock-based
       compensation plans           763         142       1,042       1,362
      Accretion of other
       liabilities                  182          99       1,187       1,022
      Non-controlling
       interest in
       subsidiaries' earnings         -         357         417         833
      Other                        (683)        (30)       (921)       (287)
                                ---------------------------------------------
                                  4,900       4,734      10,643      18,309

    Change in non-cash working
     capital relating to
     operating activities        (1,866)       (168)     (6,489)     (3,057)
                                ---------------------------------------------
                                  3,034       4,566       4,154      15,252
    -------------------------------------------------------------------------
    Financing Activities
    Change in bank indebtedness    (939)     (1,953)        315      (1,141)
    Long-term debt borrowings     7,300         515      21,000       5,030
    Long-term debt repayments        (3)         (5)    (13,766)     (4,544)
    Issuance of capital stock         -           -         185         163
    Repurchase of capital stock       -           -      (3,737)     (2,034)
    Dividends paid                    -           -      (3,343)     (3,373)
    Other                             -           -        (605)       (302)
                                ---------------------------------------------
                                  6,358      (1,443)         49      (6,201)
    -------------------------------------------------------------------------
    Investing Activities
    Note receivable                   -           -       1,000       1,000
    Property and equipment
     additions                   (2,171)       (771)     (5,981)     (4,434)
    Acquisition of businesses,
     licences and
     non-controlling interests   (6,900)          -     (17,645)     (2,296)
    Canadian Content
     Development commitment
     payments                      (202)     (1,948)     (3,491)     (3,117)
    Proceeds from disposal
     of Halterm Income Fund
      Trust Units and equity
       accounted investment           -           -      18,547         399
    Deferred charges               (748)       (429)     (1,330)       (976)
    Employee share purchase
     loan repayment                   -           -       2,826           -
    Other                           629          25       1,871         373
                                ---------------------------------------------
                                 (9,392)     (3,123)     (4,203)     (9,051)
    -------------------------------------------------------------------------
    Cash, beginning and end
     of period                  $     -           -           -           -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------The Company's Annual Report, which includes the annual consolidated
financial statements along with related notes and the annual Management's
Discussion and Analysis, will be available on www.sedar.com and the Company's
website by March 31, 2008.

    About Newfoundland Capital Corporation Limited

    Newfoundland Capital Corporation Limited (TSX: NCC.A, NCC.B) is one of
Canada's leading radio broadcasters with 76 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. 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.
Readers are cautioned not to place undue reliance on these statements. 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.
    %SEDAR: 00002995E



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,
investorrelations@ncc.ca, www.ncc.ca