Mr. Rob Steele reports

NEWFOUNDLAND CAPITAL CORPORATION LIMITED - SECOND QUARTER 2018 - PERIOD ENDED JUNE 30 (UNAUDITED)

Newfoundland Capital Corp. Ltd. has released its financial results for the second quarter ended June 30, 2018.

Highlights:

• Revenue for the second quarter of $43.5-million was $100,000 or less than 1 per cent lower than the same quarter last year, and year-to-date revenue of $79.2-million was $200,000 or less than 1 per cent lower than 2017. The company's expansion into Kamloops, B.C., provided revenue growth, while Newfoundland and Labrador faced challenging economic conditions. Soft audience ratings from last fall and winter temporarily impacted the Ontario operations. In the most recent ratings, released in June, 2018, the company has regained its first-place ranking in the key Toronto market.
• Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) (1) of $14.6-million in the second quarter was $700,000 or 5 per cent higher than second quarter last year, and year-to-date adjusted EBITDA of $21.5-million was $600,000 or 3 per cent higher than the prior year, as a result of the company's continued focus on controlling costs. In addition, the prior periods included an expense related to the extension of certain executive stock options of $400,000 in the quarter and $600,000 year to date.
• Profit for the period of $7.7-million was $600,000 or 7 per cent lower than the same quarter last year, and year-to-date profit of $11.0-million was $300,000 or 2 per cent lower than last year, primarily because of higher integration costs in the current year. In addition, the second quarter last year included a gain on the disposal of CISL-AM of $900,000.

Significant events:

• On June 27, 2018, the company's shareholders approved the plan of arrangement involving the company, Stingray Digital Group Inc. and 10643432 Canada Inc., as announced on May 2, 2018, and further described in the company's management information circular dated May 23, 2018. Subsequent to the end of the second quarter, the company received final court approval for the plan of arrangement. The transaction remains subject to Canadian Radio-television and Telecommunications Commission (CRTC) approval and is expected to close in the next two to five months.
• Subsequent to the end of the second quarter, the company received CRTC approval to acquire CKEC-FM and CKEZ-FM, located in New Glasgow, N.S. As agreed to by both parties, this transaction is expected to close after the completion of the plan of arrangement with Stingray.
• Subsequent to the end of the second quarter, the board of directors declared a dividend of 25 cents per share on each of the company's Class A subordinate voting shares and Class B common shares, payable on Sept. 7, 2018, to all shareholders of record as at Aug. 23, 2018.

"The company achieved growth in adjusted EBITDA in the second quarter and year to date," commented Rob Steele, chairman, president and chief executive officer. "We are pleased with the company's results and ability to control costs to maintain strong margins, demonstrating radio's ability to be resilient in a competitive media landscape."

                        FINANCIAL HIGHLIGHTS -- SECOND QUARTER       
           (in thousands of Canadian dollars, except per-share amounts)

                                                                    Three months ended
                                                                 June 30,      June 30,
                                                                    2018          2017

Revenue                                                        $  43,475     $  43,604
Adjusted EBITDA (1)                                               14,551        13,850
Profit                                                             7,735         8,359
Earnings per share -- basic                                    $    0.31     $    0.33
Earnings per share -- diluted                                  $    0.29     $    0.31

                                                                                 As at
                                                                 June 30,      Dec. 31,
                                                                    2018          2017

Share price, NCC.A (closing)                                   $   13.92     $   12.95
Total assets                                                   $ 361,798     $ 369,103
Long-term debt, including current portion                        102,787       109,795
Shareholders' equity                                             172,547       163,758

The company's complete second quarter report, which includes the unaudited condensed interim consolidated financial statements, along with related notes, in accordance with International Accounting Standard (IAS) 34, Interim Financial Reporting, as issued by the International Accounting Standards Board (IASB), and the management's discussion and analysis, is available on the company's website and on SEDAR.

(1) Non-IFRS (international financial reporting standards) accounting measure

Adjusted 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 with 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 included in the company's second quarter report.

About Newfoundland Capital Corp. Ltd.

Newfoundland Capital owns and operates Newcap Radio, which is one of Canada's leading radio broadcasters, with 101 broadcast licences (72 radio stations and 29 repeating signals) 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.

We seek Safe Harbor.