Newfoundland Capital Corporation Limited today announces its financial results for the first quarter ending March 31, 2022.
*Revenue of $29.1 million was $1.6 million or 6% higher than last year. The majority of the increase was due to organic (same-station) revenue growth.
*Earnings before interest, taxes, depreciation and amortization (“EBITDA”(1)) of $5.2 million in the quarter were $0.4 million or 9% higher than last year primarily a result of increased revenue and lower stock-based compensation expense.
*Profit for the period was $2.1 million as compared to $0.8 million the same period last year. The primary reason for this change was the fluctuations in the mark-to-market value of the Company’s marketable securities. In the first quarter of 2022, the Company recognized unrealized gains of $0.2 million compared to unrealized losses of $2.3 million in 2022.
In January, the Company completed the acquisition of an FM radio station in Sydney, Nova Scotia, for total cash consideration of $2.4 million, thereby adding a second station to complement its existing FM station in that city. The Company previously held a 29.9% interest in this station.
In January, the Company announced that it was exploring the possible sale of its Western Canadian broadcasting assets which are located primarily in Alberta. The assets consist of 32 radio stations, 6 repeater licences and 2 television stations. The Company is continuing this process, however, at this point, there is no agreement in place to sell these assets and there is no certainty that any transaction will result from the process.
“Our Broadcasting revenue has continued to show strong growth and continues to outpace the industry growth which was flat compared to the same time last year”, commented Rob Steele, President and Chief Executive Officer. “We have integrated the newly acquired Sydney, Nova Scotia radio station with our existing station there and we are currently focusing on launching the new FM stations in Miramichi and Fredericton, New Brunswick.”
Financial Highlights – First Quarter
(thousands of dollars except share information) 2022 2022
Revenue $ 29,052 27,467
EBITDA(1) 5,163 4,716
Profit for the period 2,095 781
Earnings per share – basic 0.07 0.03
Earnings per share – diluted 0.07 0.02
Share price, NCC.A (closing) 9.40 7.84
Weighted average number of shares outstanding (in thousands) 29,183 30,330
Total assets 232,134 233,523
Long-term debt 50,952 50,759
Shareholders’ equity 121,465 121,123
(1) Refer to page 10 “Non-IFRS Accounting Measure”
The Company’s complete First Quarter Report, which includes the interim financial statements along with related notes 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 First Quarter Report.