Newfoundland Capital Corporation Limited - First Quarter 2011 - Period Ended March 31 (unaudited)

DARTMOUTH, NS, June 13, 2011 /CNW/ - Newfoundland Capital Corporation Limited ("Company") today announces its financial results for the first quarter ending March 31, 2011, in accordance with International Financial Reporting Standards.

Highlights

  • Revenue of $26.9 million was $1.2 million or 5% higher than last year. This increase was attributable to organic (same-station) revenue growth.
  • Earnings before interest, taxes, depreciation and amortization ("EBITDA"(1)) of $4.9 million in the quarter were $0.4 million or 8% higher than last year, primarily attributable to improved revenue and lower corporate expenses.
  • Profit for the period of $2.9 million was $1.5 million or 103% better than the same quarter last year due to improved EBITDA as well as the increase in market value of marketable securities.

Significant events

  • The Company launched its FM conversion in Brooks, Alberta in February 2011.
  • Canadian Radio-television Telecommunications Commission ("CRTC") approval was received for a new repeating signal in North West River, Newfoundland and Labrador.
  • In February, the Company repurchased 1,388,072 Class A Subordinate Voting Shares for $8.7 million pursuant to a Normal Course Issuer Bid.
  • Subsequent to quarter end, 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 CRTC approval.
  • 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.

"Positive revenue growth has continued to drive our success. This quarter's growth came from both local and national advertising revenue", commented Rob Steele, President and Chief Executive Officer. "Our strategy to focus on maximizing existing operations has solidified our financial position and we are well positioned for future growth."

Financial Highlights - First Quarter 
(thousands of dollars except share information)  2011  2010
Revenue  $ 26,880  25,706
EBITDA(1)    4,933  4,578
Profit for the period    2,908  1,429
Earnings per share - basic    0.10  0.04
Earnings per share - diluted    0.09  0.04
Share price, NCC.A (closing)   7.20  6.90
Weighted average number of shares outstanding (in thousands)      30,611  32,972
Total assets  229,503  227,545
Long-term debt   62,714  56,000
Shareholders' equity   101,754  110,503

The Company's complete First Quarter Report, which includes the interim unaudited consolidated financial statements along with related notes in accordance with the newly adopted 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 First 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.

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: investorrelations@ncc.ca, Web: www.ncc.ca

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NEWFOUNDLAND CAPITAL CORPORATION LIMITED

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