Newfoundland Capital Corporation Limited - Second Quarter 2014 - Period Ended June 30 (unaudited)

Newfoundland Capital Corporation Limited - Second Quarter 2014 - Period Ended June 30 (unaudited)

DARTMOUTH, NS, Aug. 13, 2014 /CNW/ - Newfoundland Capital Corporation Limited ("Company") today announces its financial results for the second quarter ending June 30, 2014.

Highlights


-- Revenue for the second quarter of $42.3 million was $6.9 million or 19%
higher than last year. Year-to-date revenue of $70.8 million was $6.6
million or 10% higher than 2013. The growth was due to incremental
revenue generated by the recently acquired stations in Toronto, Ontario
and Vancouver, British Columbia.
-- Earnings before interest, taxes, depreciation and amortization
("EBITDA(")((1))) of $12.2 million in the second quarter were $2.0
million or 19% higher than last year and year-to-date EBITDA of $16.7
million was $1.3 million or 9% higher than 2013. The increase in EBITDA
was due to the recently acquired stations.
-- Profit for the period of $7.5 million was $1.6 million or 26% higher
than the same quarter last year due to the acquisition and $0.8 million
of realized gains from the sale of marketable securities. Year-to-date
profit of $4.3 million was $3.7 million or 46% lower than the same
period in 2013. The Company incurred acquisition-related costs of $8.8
million related to the Toronto and Vancouver business acquisition.
Offsetting these one-time costs, the Company benefited from $2.3 million
of unrealized and realized gains this year.
-- The Board of Directors declared a dividend of $0.06 per share on each of
the Company's Class A Subordinate Voting Shares and Class B Common
Shares on August 13, 2014, payable on October 3, 2014 to all
shareholders of record as at September 19, 2014.
Significant events


-- During the second quarter, the Company successfully integrated the
operations of the two radio stations acquired in Toronto, Ontario and
the three radio stations acquired in Vancouver, British Columbia.
-- Subsequent to quarter end, the Company completed the acquisition of
CHNI-FM in Saint John, New Brunswick for $0.8 million cash
consideration.
"The integration of the Toronto and Vancouver stations went as expected and has generated accretive results from day one. In our other markets, revenue growth has been more of a challenge this year, particularly with national advertising revenue declining compared to the same periods in 2013", commented Rob Steele, President and Chief Executive Officer. "Our primary focus in the coming months is to grow revenue and to reduce discretionary spending so that EBITDA results continue to be strong."





Financial Highlights - Second Quarter

(thousands of dollars except share information) 2014 2013
============================================== ==== ====

Revenue $42,298 35,434

EBITDA(1) 12,162 10,210

Profit for the period 7,541 5,972
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Earnings per share -basic 0.27 0.21

Earnings per share - diluted 0.26 0.20

Share price, NCC.A (closing) 8.50 8.75

Weighted average number of shares outstanding (in thousands) 28,155 28,902
----------------------------------------------------------- ------ ------

Total assets 362,526 235,900

Long-term debt, including current portion 150,962 49,000

Shareholders' equity 138,091 123,294
==================== ======= =======


The Company's complete Second Quarter Report, which includes the unaudited condensed interim consolidated financial statements along with related notes in accordance with International Financial Reporting Standards ("IFRS") 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

EBITDA is a measure that is not defined by International Financial Reporting Standardsand 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) 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

Newfoundland Capital Corporation Limited

CONTACT: 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

Web Site: http://www.ncc.ca


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