Newfoundland Capital Corporation Limited - Fourth Quarter 2014 - Period Ended December 31 (unaudited)

DARTMOUTH, NS, Feb. 26, 2015 /CNW/ - Newfoundland Capital Corporation Limited ("Company") today announces its financial results for the fourth quarter ending December 31, 2014.

Highlights  

  • Revenue was $44.4 million in the fourth quarter, an $8.8 million or 25% increase over the fourth quarter of 2013.  Year-to-date revenue of $154.5 million was $21.9 million or 17% higher than last year.  The growth was mainly attributable to the radio stations acquired in Toronto, Ontario and Vancouver, British Columbia on March 31, 2014.  
  • Earnings before interest, taxes, depreciation and amortization ("EBITDA"(1)) in the fourth quarter of $14.9 million were $4.6 million or 45% higher than the same time last year and year-to-date EBITDA of $41.6 million was $8.4 million or 25% higher than 2013. These improvements were a result of the incremental EBITDA derived from the acquired stations.
  • Profit for the fourth quarter of $2.6 million was $7.7 million lower than the same quarter last year while year to date profit of $11.2 million, was $15.8 million lower than 2013.  The quarterly profit was lower due primarily to a non-cash impairment charge of $5.7 million and a mark-to-market write-down of marketable securities of $0.8 million. Year to date profit was lower than 2013 due to the impairment charge as well as acquisition-related costs of $8.9 million. In contrast, last year the Company benefited from a $3.8 million gain on disposal of Fort McMurray operations and an income tax provision reduction of $5.3 million.

Significant events

  • In December the Board of Directors declared dividends totaling $0.09 per share, bringing the total dividends declared for 2014 to $0.15 per share which was on par with 2013.

"The acquisition of stations in Toronto and Vancouver helped the Company to realize double-digit growth in revenue and EBITDA this year", commented Rob Steele, President and Chief Executive Officer.  "Throughout 2014, national advertising revenue has been below our expectations and this has caused a modest decline in organic revenue.  In 2014 we also faced increased competition and we re-branded certain stations which are taking time to gain audience share.  Ratings results in late 2014 had many of our radio stations ranked within the top three in their respective markets which should contribute to solid revenue in 2015."

 

Financial Highlights Fourth quarter 





(thousands of dollars except share information)


2014


2013

Revenue

$

44,438


35,649

EBITDA(1)


14,942


10,331

Profit for the period 


2,593


10,295

Earnings per share – basic 


0.09


0.37

Earnings per share – diluted 


0.08


0.35

Share price, NCC.A (closing) 


8.76


8.75

Weighted average number of shares outstanding (in thousands) 


28,155


28,128

Total assets


356,677


235,605

Long-term debt, including current portion


138,525


42,642

Shareholders' equity


140,529


133,785

 

The Company's annual audited consolidated financial statements along with related notes and the annual Management's Discussion and Analysis are available on the Company's website at www.ncc.ca and www.sedar.com.  The Company's Annual Report will be available on the Company's website at www.ncc.ca and www.sedar.com by March 20, 2015.

(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 found in the Company's annual Management's Discussion and Analysis.

About Newfoundland Capital Corporation Limited
Newfoundland Capital Corporation Limited (TSX: NCC.A, NCC.B) is one of Canada's leading radio broadcasters with 95 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

RELATED LINKS
http://www.ncc.ca

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