NEWCAP Reports Q3 Results

Newfoundland Capital Corporation Limited  today announces its financial results for the third quarter ending September 30, 2024.

Highlights

*Revenue for the third quarter of $41.0 million was $1.7 million or 4% higher than the same quarter last year and year-to-date revenue of $119.1 million was $9.0 million or 8% higher than 2024. The year-to-date increase was partly attributable to organic growth and partly attributable to the revenue generated by the stations in Toronto, Ontario and Vancouver, British Columbia, which were acquired March 31, 2024, and as such the comparative year-to-date results include only six months of operations for these stations.

• Earnings before interest, taxes, depreciation and amortization (“EBITDA^“(1)) of $12.0 million in the third quarter were $2.0 million or 20% higher than the third quarter last year and year-to-date EBITDA of $31.5 million was $4.8 million or 18% higher than 2024. A majority of the increase was a result of improved EBITDA margins as a result of efforts to increase revenues and reduce discretionary spending in organic markets. Also contributing to the increased EBITDA year-to-date was the incremental impact from including results of the Toronto and Vancouver stations. Organic EBITDA growth was 20% in the quarter and 10% year-to-date.
• Profit for the period of $6.7 million was $2.4 million or 57% higher than the same quarter last year because of higher revenue as well as lower unrealized losses on marketable securities. Year-to-date profit of $15.2 million was $6.6 million or 77% higher than last year due primarily to the fact that last year’s profit was impacted by acquisition-related costs of $8.9 million related to the Toronto and Vancouver business acquisition.

Significant events

• During the third quarter, the Company’s Board of Directors approved a dividend of $0.06 on each of its Class A Subordinate Voting and Class B Common shares. The dividend was paid on September 15, 2024 to shareholders of record at the close of business on August 31, 2024.
• During the third quarter, the Company repurchased 1,164,800 Class A Subordinate Voting shares for cash consideration of $10.3 million.

“This was a great quarter for the Company, with strong organic growth, as we strive to maximize the return from our stations” commented Rob Steele, President and Chief Executive Officer.  “The Company’s success is supported by encouraging listener ratings along with continued efforts to increase revenues and operate the Company more efficiently.”

 The Company’s Third 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 

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 Third Quarter Report.

SOURCE Newfoundland Capital Corporation Limited