Newfoundland Capital Corporation Limited - Fourth Quarter 2009 - Period Ended<br>December 31, 2009 (unaudited)
DARTMOUTH, NS, March 4 /CNW/ - Newfoundland Capital Corporation Limited (the "Company"), one of Canada's leading radio broadcasters, today announces its financial results for the fourth quarter ended December 31, 2009.
Highlights
- Revenue rebounded from a soft third quarter to grow 4% during the
fourth quarter to reach $30.5 million. For the year the Company
maintained a positive growth rate of 2% ending the year at $105.3
million.
- Earnings before interest, taxes, depreciation and amortization
("EBITDA"(1)) were $9.9 million in the quarter, as compared to
$0.5 million in 2008, and $23.9 million year-to-date, as compared to
$9.1 million last year. These results were significantly better than
the respective prior periods as 2008 included significant realized and
unrealized losses from the Company's marketable securities aggregating
$7.1 million in the quarter and $9.4 million for the year.
- Net income was $5.5 million in the fourth quarter, as compared to a
loss of $3.8 million in 2008, and $15.4 million for
the year, as compared to a loss of $4.6 million last year. The 2009
results were significantly higher than 2008 because of the investment
losses recorded in the prior periods and also because 2009 results
included a $5.6 million gain from disposal of a broadcasting licence.
- A dividend of $0.10 per share was declared in December 2009 and paid
January 2010.
Significant events
- In November, the Company split its Class A Common Shares and Class B
Common Shares on a three-for-one basis.
- In December, the Company completed the disposal of its broadcasting
assets in Thunder Bay, Ontario for proceeds of $4.5 million plus
working capital.
- The December 2009 listener ratings results were among the best the
Company has ever achieved.
"We began this year with a lot of uncertainty but we ended it with the best fourth quarter ever from our Radio properties. We achieved our goals and posted positive revenue growth despite the fact the radio industry experienced negative growth for the year", commented Rob Steele, President and Chief Executive Officer. "This year we aggressively paid down our debt, lowering our outstanding balance by $18.6 million. Our listener ratings results in December further strengthened our competitive position in many of our key operating markets laying the foundation for 2010."
Financial Highlights - Fourth Quarter (restated)
(2)
(thousands of dollars except share information) 2009 2008
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Revenue $ 30,458 29,306
EBITDA(1) 9,861 495
Net income (loss) 5,461 (3,796)
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Earnings per share - basic 0.17 (0.12)
- diluted 0.16 (0.12)
Share price, NCC.A (closing) 7.00 5.67
Weighted average number of shares outstanding
(in thousands) 32,973 32,973
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Total assets 232,853 235,776
Long-term debt, including current portion 57,100 73,845
Shareholders' equity 103,789 88,643
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(1) Refer to page 8 for the reconciliation of EBITDA to net income
(loss).
(2) Restatement due to new accounting policy issued by Canadian Institute
of Chartered Accountants.
Corporate Developments
The following is a review of the key corporate developments which should be considered when reviewing the "Consolidated Financial Review" section.
2009 Developments:
- January 2009 - Launched the new FM station in Pincher Creek, Alberta
playing country music.
- January 2009 - Received CRTC approval for four new FM repeater
licences. These will allow the Company to broadcast the two FM stations
in Charlottetown, Prince Edward Island to two new communities in the
same province. These are expected to be on-air in the first quarter of
2010.
- April 2009 - CRTC approved two AM to FM conversions for stations in
St. Paul and High Prairie, Alberta. These are expected to be launched
sometime in summer 2010.
- June 2009 - CRTC approved the Company's applications to convert AM
stations to FM in Wabush and Goose Bay, Newfoundland and Labrador.
Anticipated on-air dates are late spring 2010.
- June 2009 - Re-launched CFUL in Calgary, Alberta as a Contemporary Hits
Radio format, branded as AMP Radio. This format is similar to the very
popular Ottawa station, Hot 89.9, which was named the 2008 Contemporary
Hits Radio station of the year.
- July 2009 - Completed the previously announced exchange of assets with
Rogers Broadcasting Limited. The Company's Halifax AM licence was
exchanged for Rogers' AM licence in Sudbury, Ontario plus $5.0 million.
- August 2009 - Launched Hot 93.5, the newly acquired Sudbury, Ontario
radio station which was converted to FM. Its format is Top 40 and has
been met with a very positive response from both listeners and clients.
- August 2009 - Launched the converted FM radio station in Athabasca,
Alberta. 94.1 FM The River plays Classic Hits.
- November 2009 - The Company's stock was split on a three-for-one basis.
- December 2009 - Completed the previously announced sale of the
broadcasting assets related to the two FM stations in Thunder Bay,
Ontario for $4.5 million plus working capital.
2008 Developments:
- January 2008 - Launched the FM station in Carbonear, Newfoundland and
Labrador playing country music.
- March 2008 - Re-launched two stations in Alberta; CIQX-FM in Calgary as
XL103-FM, and CKRA-FM in Edmonton as Capital-FM. Both stations featured
prominently in the December 2009 ratings results.
- June 2008 - Launched new FM stations in Fort McMurray, Alberta, and in
Kentville and Sydney, Nova Scotia. All three stations have exceeded
management's expectations.
- July 2008 - Completed the purchase of the remaining 50% interest in
Metro Radio Group Inc. for $8.5 million. Metro Radio Group Inc.
operates CKUL-FM in Halifax, Nova Scotia.
Consolidated Financial Review
Revenue
Consolidated revenue of $30.5 million in the fourth quarter improved by 4% or $1.2 million and for the year ended December 31, 2009, consolidated revenue of $105.3 million was 2% or $1.9 million higher than 2008. This improvement came exclusively from the broadcasting segment.
Other income (expense)
Other expense was $0.3 million in the quarter, $6.5 million better than the same period last year while year-to-date other income of $2.8 million was $11.3 million higher than the prior year. In 2008, stock prices in the general Canadian trading market experienced declines. This resulted in the recognition of significant unrealized losses last year - $4.6 million in the fourth quarter and $7.9 million year-to-date. Realized losses on the divestiture of marketable securities in 2008 were $2.5 million in the quarter and $1.5 million for the year.
Operating expenses
Consolidated operating expenses for the fourth quarter were $20.3 million, 8% or $1.7 million lower than 2008 while for the twelve months ended December 31, 2009, they were $84.2 million, 2% or $1.5 million lower than 2008. CRTC Part II Licence fees that had been accrued since September 2006 were reversed in the fourth quarter as a result of a court decision more fully explained under the "Financial Results by Segment" section.
Earnings before interest, taxes, depreciation and amortization
("EBITDA" (1))
Fourth quarter consolidated EBITDA was $9.9 million and $23.9 million year-to-date. These consolidated EBITDA results were significantly higher than their respective comparative periods largely due to the aforementioned unrealized investment losses recognized in 2008. The CRTC Part II fees' reversal and higher revenue resulted in improved EBITDA in 2009.
More detailed disclosure on revenue, other income (expense), operating expenses and EBITDA are described in the section entitled "Financial Results by Segment".
Depreciation and amortization
Depreciation and amortization expense was $1.0 million in the quarter, slightly lower than 2008, while year-to-date depreciation and amortization of $3.8 million was 7% higher than last year. These variations were not significant overall but varied depending on the asset base and timing of capital expenditures.
Interest expense
Interest expense in the quarter was $1.5 million and year-to-date interest was $4.4 million; both $0.4 million higher than the same periods last year. In the fourth quarter, the Company de-designated a portion of one of its interest rate swaps which resulted in the recognition of interest expense of almost $0.6 million. Excluding the de-designation adjustment, interest expense would have been lower than 2008 due to lower average debt levels throughout 2009.
Accretion of other liabilities
Accretion of other liabilities arises from discounting Canadian Content Development ("CCD") commitments to reflect the fair value of the obligations. The expense in the quarter of $0.2 million and $0.9 million year-to-date was $0.1 million and $0.2 million lower than the respective periods last year as a result of the expense being higher in the initial years of payment.
Goodwill impairment loss
As a result of conducting the 2008 annual goodwill impairment analysis, the value for goodwill that arose on the 2005 and 2006 business acquisitions in Winnipeg, Manitoba could not be supported and therefore, a goodwill impairment loss of $1.3 million was recorded in 2008. No impairment loss was recorded in 2009.
Gain on disposal of broadcasting licence
In July 2009, upon the completion of the radio asset exchange with Rogers, the Company disposed of its AM licence in Halifax, Nova Scotia and recorded a gain of $5.6 million.
Provision for Income Taxes
The provision for income taxes is higher than 2008 due to improved pre-tax earnings. The effective income tax rate was 27% which is lower than the statutory rate of 35% primarily due to the non-taxable portion of realized and unrealized capital gains and losses as well as a lower statutory rate for the Company's wholly-owned subsidiaries.
Discontinued operations
The Company disposed of its net assets associated with the two FM radio stations located in Thunder Bay, Ontario and therefore, the financial results of operations from this component were treated as discontinued operations in the consolidated statements of income. Comparative figures were restated to exclude the results of these discontinued operations from the Broadcasting segment.
Net income (loss)
Fourth quarter net income of $5.5 million, as compared to a loss of $3.8 million in 2008, and net income of $15.4 million for the year, as compared to a loss of $4.6 million last year, were significantly higher than the same periods last year. The primary reasons for these positive variances were the unrealized investment losses and the goodwill impairment loss recorded in 2008 while in 2009 the gain on disposal of a broadcasting licence was recognized.
Other comprehensive income ("OCI")
OCI consists of the net change in the fair value of the Company's cash flow hedges. These include interest rate swaps and an equity total return swap. The after-tax unrealized income recorded in OCI for the interest rate swaps was $0.8 million in the fourth quarter and $2.8 million year-to-date (2008 - $3.6 million after-tax expense in the quarter and $4.6 million after-tax expense year-to-date). The after-tax unrealized loss related to the equity total return swap was $0.3 million for the quarter (2008 - $0.1 million). Year-to-date, the unrealized after-tax gain was $0.1 million (2008 - $0.3 million after-tax loss).
Financial Results by Segment
(thousands of dollars, except percentages)
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Three months ended Dec. 31 Year ended Dec. 31
2009 2008 Growth 2009 2008 Growth
(restated) (restated)
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Revenue
Broad-
casting $ 29,670 28,396 4% 101,763 99,811 2%
Corporate
and Other 788 910 (13%) 3,535 3,571 (1%)
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Consolidated
revenue 30,458 29,306 4% 105,298 103,382 2%
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Other income
(expense)
Corporate
and Other (273) (6,749) 96% 2,809 (8,516) 133%
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Consolidated
revenue and
other income
(expense) 30,185 22,557 34% 108,107 94,866 14%
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Operating
expenses
Broad-
casting 17,756 19,501 (9%) 73,951 74,909 (1%)
Corporate
and Other 2,568 2,561 - 10,296 10,856 (5%)
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Consolidated
operating
expenses 20,324 22,062 (8%) 84,247 85,765 (2%)
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EBITDA
Broad-
casting 11,914 8,895 34% 27,812 24,902 12%
Corporate
and Other (2,053) (8,400) 76% (3,952) (15,801) 75%
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Consolidated
EBITDA $ 9,861 495 - 23,860 9,101 162%
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EBITDA Margins 2009 2008 Growth 2009 2008 Growth
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Broadcasting 40% 31% 9% 27% 25% 2%
Consolidated 33% 2% 31% 22% 10% 12%
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Broadcasting segment
Broadcasting revenue in the quarter of $29.7 million was $1.3 million or 4% better than last year while for the year broadcasting revenue of $101.8 million was $2.0 million or 2% ahead of last year. Organic (same-station) operations accounted for primarily all of the revenue growth in the quarter and for the year.
The Atlantic Canada radio properties led the way in revenue growth for the Company. A softening in revenue impacted the stations in Central Canada and in Alberta throughout 2009; however, the Central Canadian properties rebounded with 4% organic growth in the fourth quarter which is encouraging going into 2010. Although the Central and Alberta properties experienced a decline in year-over-year revenue, they outperformed the industry in their respective markets.
Overall, the industry's average growth rate in 2009 was negative 9%; the Company posted positive growth of 2% year-over-year. Revenue bookings in 2010 have been very strong to-date. Management anticipates that it will be able to continue generating positive growth in 2010.
Broadcasting operating expenses for the quarter were $17.8 million, 9% or $1.7 million lower than 2008 while year-to-date operating expenses of $74.0 million were also lower than last year by 1% or $1.0 million.
The Company restated certain comparative figures as a result of adopting a new accounting policy on how to account for pre-operating costs. In the past, these types of costs were capitalized and amortized over a period of five to seven years. Now, these costs are expensed as incurred. The impact of the restatement was to increase the 2008 operating expenses by $1.0 million year-to-date; the fourth quarter impact was nominal. Similar costs were not as significant in 2009 as the Company launched fewer new stations.
Over the past number years the Canadian Association of Broadcasters (on behalf of all radio broadcasters) has been disputing the amount of Part II fees charged by the Canadian Radio-television Telecommunications Commission ("CRTC"). This has led to court filings, appeals and a final settlement in 2009. During 2007, 2008 and 2009 the Company was required to record a provision based on the court decisions at each stage of the dispute. As a result the amount expensed for CRTC Part II fees has changed significantly over the past three years and is summarized as follows:
- 2007 operating expenses were reduced by $0.6 million;
- 2008 operating expenses were increased by $1.3 million; and
- 2009 operating expenses were reduced by $2.0 million.
Excluding the impact of CRTC Part II fees, prior period restatements and other one-time expenditures, operating expenses in the quarter and year-to-date would have been less than 1% higher than last year. The small increases in the 2009 operating expenses were primarily because of higher variable costs due to higher revenue.
Fourth quarter broadcasting EBITDA of $11.9 million was 34% or $3.0 million higher than 2008. Year-to-date EBITDA of $27.8 million was 12% or $2.9 million better than last year.
Excluding the impact of CRTC Part II fees and the prior year restatements explained above, EBITDA in the quarter would have been $10.1 million and $28.0 million year-to-date. This represents a $1.2 million or 14% increase over the fourth quarter last year and a $0.8 million or 3% increase on a year-to-date basis. The improved EBITDA is attributable to revenue growth in the quarter and in the year.
Corporate and Other segment
Corporate and other revenue decreased by $0.1 million or 13% in the fourth quarter and by less than $0.1 million or 1% year-to-date; this was due to decreased hotel revenue.
Other income (expense) relates to investment income and consists of realized and unrealized gains and losses related to the Company's investment portfolio of marketable securities, interest, dividends and distributions from investments. In 2008, stock prices in the Canadian trading market experienced significant declines. As a result, the value of the Company's marketable securities decreased significantly and unrealized losses of $4.6 million were recognized in the fourth quarter and $7.9 million year-to-date in 2008. Realized losses due to the divestiture of marketable securities totaled $2.5 million in the quarter and $1.5 million for the year in 2008.
During 2009, the Company's marketable securities partially recovered in value. This resulted in unrealized gains of $2.8 million for the year. The Company also disposed of certain of the investments it held in its portfolio of marketable securities. As a result of the disposals, the Company triggered losses of $5.1 million in the quarter and $5.3 million year-to-date which were previously recognized in the Company's results in 2008.
Operating expenses of $2.6 million were just slightly higher than the fourth quarter last year; however, year-to-date operating expenses of $10.3 million were 5% or $0.6 million lower than 2008. This decrease was a result of a targeted plan to reduce discretionary costs throughout the year.
Fourth quarter and year-to-date EBITDA were much higher than the same periods last year primarily due to the declines in value of the Company's portfolio of marketable securities in 2008.
Liquidity and capital resources
Selected cash flow information - three months ended December 31, 2009
Cash from operating activities of $7.1 million along with proceeds from the disposal of broadcasting assets of $4.8 million were used to repay $9.8 million of bank debt and to pay $1.8 million in CCD payments.
Selected cash flow information - year ended December 31, 2009
Cash flows from operating activities of $18.3 million along with the proceeds of $9.8 million on the disposal of broadcasting assets were used to repay debt by $18.6 million, to pay CCD commitments of $5.0 million and to purchase property and equipment totaling $4.0 million.
The most significant expenditures in capital assets for the year were due to the FM station launched in Sudbury, Ontario and for the relocation to new premises in Halifax, Nova Scotia.
Credit facility and future financing
The Company's syndicated credit facility of $76.5 million is a revolving credit facility. The Company chooses this type of credit facility because it provides flexibility with no scheduled repayment terms.
The Company is subject to covenants on its credit facility. The Company's bank covenants include certain maximum or minimum ratios such as total debt to EBITDA ratio, interest coverage and fixed charge coverage ratio. Other covenants include dividend payment restrictions, seeking prior approval for capital expenditures over a certain dollar limit, acquisitions in excess of a quantitative threshold and limits on the number of shares that can be repurchased in any given year. The Company was in compliance with the covenants throughout the year and at year end and continues to have access to the available funds under the existing credit facilities.
The Company's revolving credit facility expires in June 2010, and as a result, this debt has been classified as a current liability as at December 31, 2009. Management has held preliminary discussions with its lenders and has developed a timeline for the renegotiation of its credit facilities to ensure the new facilities are in place prior to the expiry of its current credit facilities. As a result, repayment of the debt is not expected and the Company does not deem its liquidity risk to be higher than in previous years. Management did not renew the credit facility early to delay the increased interest costs which will begin once the facility is renewed. The Company has saved significant funds by not renewing before year end.
Outlook
The Company's operations continued to post positive revenue growth throughout 2009 despite the negative growth experienced by the industry. Early indications in 2010 show the Company continuing with positive revenue growth in the first quarter of 2010.
The Company's reduction of bank debt in 2009 was one of management's critical goals and this improvement in the balance sheet positions the Company positively for future growth.
During 2010, the Company will continue to focus on organic growth while also concentrating on its expansionary activities which include:
- Launching the repeater signals in Prince Edward Island which will
expand the audience base;
- Converting from AM to FM the stations in St. Paul and High Prairie,
Alberta; and
- Completing the AM to FM conversions in Wabush and Goose Bay,
Newfoundland and Labrador.
The Company actively reviews new business and licence opportunities that would allow it to expand its asset base. The Company continuously applies to the CRTC for new licences and for AM to FM conversions.
Non-GAAP Measure
(1) EBITDA is defined as net income (loss) from continuing operations
excluding depreciation and amortization expense, interest expense,
accretion of other liabilities, goodwill impairment loss, gain on
disposal of broadcasting licence and provision for income taxes. A
calculation of this measure is as follows:
Three months ended Year ended
December 31 December 31
2009 2008 2009 2008
(thousands of dollars) (restated) (restated)
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Net income (loss) from
continuing operations $ 5,124 (3,877) 14,934 (4,753)
Provision for income taxes 1,996 1,930 5,506 3,930
Gain on disposal of broadcasting
licence - - (5,616) -
Goodwill impairment loss - - - 1,334
Accretion of other liabilities 202 274 867 1,022
Interest expense 1,520 1,098 4,374 4,019
Depreciation and amortization
expense 1,019 1,070 3,795 3,549
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EBITDA $ 9,861 495 23,860 9,101
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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)
(restated)
(thousands of dollars) 2009 2008
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ASSETS
Current assets
Marketable securities $ 4,923 4,196
Receivables 23,831 24,054
Prepaid expenses 778 974
Other assets 1,810 -
Future income tax assets 1,173 4,156
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Total current assets 32,515 33,380
Property and equipment 37,248 37,342
Other assets 4,216 4,167
Broadcast licences 149,641 151,773
Goodwill 7,045 7,045
Future income tax assets 2,188 2,069
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$ 232,853 235,776
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Bank indebtedness $ 99 2,003
Accounts payable and accrued liabilities 17,118 17,446
Dividends payable 3,297 -
Income taxes payable 6,836 8,719
Current portion of long-term debt* 57,100 5
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Total current liabilities 84,450 28,173
Long-term debt* - 73,840
Other liabilities 18,946 23,953
Future income tax liabilities 25,668 21,167
Shareholders' equity 103,789 88,643
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$ 232,853 235,776
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* Please refer to the previous discussion under the heading "Credit
facility and future financing"
Consolidated Statements of Income (Loss)
(unaudited)
Three months ended Year ended
December 31 December 31
(restated) (restated)
(thousands of dollars except
per share data) 2009 2008 2009 2008
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Revenue $ 30,458 29,306 105,298 103,382
Other income (expense) (273) (6,749) 2,809 (8,516)
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30,185 22,557 108,107 94,866
Operating expenses 20,324 22,062 84,247 85,765
Depreciation 1,007 1,058 3,746 3,501
Amortization of deferred charges 12 12 49 48
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Operating income (loss) 8,842 (575) 20,065 5,552
Interest expense 1,520 1,098 4,374 4,019
Accretion of other liabilities 202 274 867 1,022
Goodwill impairment loss - - - 1,334
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7,120 (1,947) 14,824 (823)
Gain on disposal of
broadcasting licence - - 5,616 -
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Earnings (loss) from continuing
operations before income taxes 7,120 (1,947) 20,440 (823)
Provision for income taxes 1,996 1,930 5,506 3,930
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Net income (loss) from
continuing operations 5,124 (3,877) 14,934 (4,753)
Net income from discontinued
operations 337 81 432 108
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Net income (loss) $ 5,461 (3,796) 15,366 (4,645)
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Earnings per share from
continuing operations
- basic $ 0.16 (0.12) 0.45 (0.14)
- diluted 0.15 (0.12) 0.44 (0.14)
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Earnings per share
- basic $ 0.17 (0.12) 0.47 (0.14)
- diluted 0.16 (0.12) 0.45 (0.14)
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Consolidated Statements of Shareholders' Equity
(unaudited)
Year ended
December 31
2009 2008
(thousands of dollars) (restated)
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Retained earnings, beginning of year, as restated $ 48,547 59,621
Retrospective application of change in accounting
policy - (1,758)
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Retained earnings, beginning of year, as restated 48,547 57,863
Net income (loss) 15,366 (4,645)
Dividends declared (3,297) (3,298)
Repurchase of capital stock - (1,373)
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Retained earnings, end of year 60,616 48,547
Capital stock 42,913 42,913
Contributed surplus 2,157 1,945
Accumulated other comprehensive loss (1,897) (4,762)
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Total shareholders' equity $ 103,789 88,643
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Consolidated Statements of Comprehensive Income (Loss)
(unaudited)
Three months ended Year ended
December 31 December 31
2009 2008 2009 2008
(thousands of dollars) (restated) (restated)
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Net income (loss) $ 5,461 (3,796) 15,366 (4,645)
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Other comprehensive
income (loss):
Change in fair values of cash
flow hedges
Interest rate swaps:
Increase (decrease) in
fair value 384 (5,158) 2,947 (6,715)
Reclassification to net
income of realized
interest expense 590 156 757 253
Credit risk adjustment 95 - 95 -
Income tax (expense)
recovery (290) 1,414 (1,014) 1,815
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779 (3,588) 2,785 (4,647)
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Total equity return swap:
Increase (decrease) in
fair value (372) (829) 1,700 (1,275)
Reclassification to net
income of realized
(gains) losses (89) 740 (1,613) 817
Income tax recovery (expense) 152 9 (7) 135
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(309) (80) 80 (323)
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Other comprehensive income (loss) 470 (3,668) 2,865 (4,970)
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Comprehensive income (loss) $ 5,931 (7,464) 18,231 (9,615)
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Consolidated Statements of Accumulated Other Comprehensive Loss
(unaudited)
Year ended
December 31
(thousands of dollars) 2009 2008
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Accumulated other comprehensive (loss) income,
beginning of year $ (4,762) 208
Other comprehensive income (loss) for the year 2,865 (4,970)
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Accumulated other comprehensive loss, end of year $ (1,897) (4,762)
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Consolidated Statements of Cash Flows
(unaudited)
Three months ended Year ended
December 31 December 31
2009 2008 2009 2008
(thousands of dollars) (restated) (restated)
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Operating Activities
Net income (loss) from
continuing operations $ 5,124 (3,877) 14,934 (4,753)
Items not involving cash
Depreciation and amortization 1,019 1,070 3,795 3,549
Future income taxes 2,605 6 6,188 2,498
Gain on disposal of
broadcasting licence - - (5,616) -
Executive stock-based
compensation plans 200 (613) 1,688 (523)
Accretion of other liabilities 202 274 867 1,022
Unrealized losses (gains) on
marketable securities 1,530 4,649 (1,754) 7,906
Goodwill impairment loss - - - 1,334
Other (134) 817 (1,497) 676
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10,546 2,326 18,605 11,709
Change in non-cash working
capital relating to operating
activities from continuing
operations (3,607) 3,983 (646) 1,869
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Cash flow from continuing
operating activities 6,939 6,309 17,959 13,578
Cash flow from discontinued
operations 209 93 383 207
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7,148 6,402 18,342 13,785
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Financing Activities
Change in bank indebtedness (1,107) (2,039) (1,904) 886
Long-term debt borrowings - 1,500 - 12,840
Long-term debt repayments (8,740) (6) (16,745) (23)
Repurchase of capital stock - - - (1,805)
Dividends paid - (3,298) - (4,962)
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(9,847) (3,843) (18,649) 6,936
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Investing Activities
Property and equipment additions (228) (620) (3,961) (5,591)
Proceeds from disposal of
broadcasting assets 4,753 - 9,753 -
Acquisition of businesses
and licences - - - (8,500)
Canadian Content Development
commitment payments (1,837) (2,158) (4,973) (3,944)
Other 11 219 (512) (2,686)
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2,699 (2,559) 307 (20,721)
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Cash, beginning and end of
period $ - - - -
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The Company's Annual Report, which includes the annual audited 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, 2010.
About Newfoundland Capital Corporation Limited
Newfoundland Capital Corporation Limited (TSX: NCC.A, NCC.B) is one of Canada's leading radio broadcasters with 79 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. 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.
%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, e-mail: [email protected], Web: www.ncc.ca
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