DARTMOUTH, NS, Aug. 2, 2018 /CNW/ - Newfoundland Capital Corporation Limited (the "Company") today announces its financial results for the second quarter ended June 30, 2018.

Highlights

• Revenue for the second quarter of $43.5 million was $0.1 million or less than 1% lower than the same quarter last year and year-to-date revenue of $79.2 million was $0.2 million or less than 1% lower than 2017. The Company's expansion into Kamloops, British Columbia 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 $0.7 million or 5% higher than second quarter last year and year-to-date Adjusted EBITDA of $21.5 million was $0.6 million or 3% 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 $0.4 million in the quarter and $0.6 million year-to-date.
• Profit for the period of $7.7 million was $0.6 million or 7% lower than the same quarter last year and year-to-date profit of $11.0 million was $0.3 million or 2% 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 $0.9 million.

Significant events

• On June 27, 2018, the Company's shareholders approved the plan of arrangement involving the Company, Stingray Digital Group Inc. ("Stingray") 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 second quarter-end, 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 second quarter-end, the Company received CRTC approval to acquire CKEC-FM and CKEZ-FM located in New Glasgow, Nova Scotia. 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 second quarter-end, the Board of Directors declared a dividend of $0.25 per share on each of the Company's Class A Subordinate Voting Shares and Class B Common Shares, payable on September 7, 2018 to all shareholders of record as at August 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."

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, are available on the Company's website at www.ncc.ca and www.sedar.com.

⁽¹⁾ Non-IFRS 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 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 included in the Company's Second Quarter Report.

About Newfoundland Capital Corporation Limited
Newfoundland Capital Corporation Limited (TSX: NCC.A, NCC.B) 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.

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