Newfoundland Capital Corporation Limited - First Quarter 2012 - Period Ended March 31 (unaudited)

DARTMOUTH, NS, May 2, 2012 /CNW/ - Newfoundland Capital Corporation Limited ("Company") today announces its financial results for the first quarter ending March 31, 2012.

Highlights

• Revenue of $27.5 million was $0.9 million or 3% higher than last year. This increase was primarily attributable to organic (same-station) revenue growth.
• Earnings before interest, taxes, depreciation and amortization ("EBITDA"⁽¹⁾) of $4.7 million in the quarter were $0.3 million or 5% lower than last year due to higher stock-based compensation expense.  Excluding this expense, EBITDA would have been 9% higher than 2011.
• Profit for the period was $0.8 million as compared to $2.9 million the same period last year. The primary reason for this decline was due to $2.3 million mark-to-market unrealized losses on marketable securities, compared to unrealized gains of $1.3 million in 2011.

Significant events

• In January the Company attended hearings related to its applications for new FM licences in Miramichi and Fredericton, New Brunswick.  Decisions by the Canadian Radio-television and Telecommunications Commission ("CRTC") are expected later this year.
• In February the Company completed the purchase of broadcasting assets related to FM stations in Penticton and Kelowna, British Columbia for cash consideration of approximately $7.0 million.
• The CRTC approved the Company's application to convert its AM station in Stettler, Alberta to FM.
• Subsequent to quarter end, the Company repurchased 250,300 shares for $2.0 million pursuant to its Normal Course Issuer Bid.

"Coming off a record year in 2011, the Company has continued to grow revenue and outpace the industry rate of 2%", commented Rob Steele, President and Chief Executive Officer.  "We recently completed the acquisition of the two FM operations in British Columbia and we continue to look for other expansionary opportunities."

Financial Highlights - First Quarter
(thousands of dollars except share information)		2012		2011
Revenue	$	27,467		26,553
EBITDA^(1)		4,716		4,967
Profit for the period		781		2,908
Earnings per share - basic		0.03		0.10
Earnings per share - diluted		0.02		0.09
Share price, NCC.A (closing)		7.84		7.20
Weighted average number of shares outstanding (in thousands)		30,330		30,608
Total assets		233,523		229,503
Long-term debt		50,759		62,714
Shareholders' equity		121,123		101,754

The Company's complete First Quarter Report, which includes the unaudited condensed consolidated interim financial statements along with related notes and the Management's Discussion and Analysis, is 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 83 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.

 

 

 

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: [phone], Fax: [phone], e-mail: [email protected], Web: www.ncc.ca