Newfoundland Capital Corporation Limited today announces its financial results for the second quarter ending June 30, 2022.
Revenue for the second quarter of $34.3 million was $0.9 million or 3% higher than last year. Year-to-date revenue of $61.8 million was $1.8 million or 3% higher than 2022. The growth was due to a combination of organic increases as well as incremental revenue from the acquired stations in British Columbia.
Earnings before interest, taxes, depreciation and amortization (“EBITDA”(1)) of $9.2 million in the quarter were $1.9 million or 17% lower than last year and year-to-date EBITDA was $13.9 million; $2.2 million or 13% lower than 2022 due to higher operating expenses. Normalizing EBITDA to exclude stock-based compensation expense and the accounting for the Company’s equity total return swap which reduced operating expenses in the prior year, EBITDA in the quarter would have been approximately 4% lower than 2022 while year-to-date EBITDA would have been on par with 2022.
Profit for the period of $3.8 million was $2.1 million or 36% lower than the same quarter last year. Year-to-date profit of $4.5 million was $4.3 million or 48% lower than the same period in 2022. Impacting year-over-year comparisons were unrealized mark-to-market losses of $0.6 million in the quarter and $2.9 million year-to-date as well as the above-noted items impacting EBITDA.
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 9, 2022, payable on September 14, 2022 to all shareholders of record as at August 31, 2022.
In May, the Canadian Radio-television and Telecommunications Commission awarded the Company new FM licences in Fredericton and Miramichi, New Brunswick. These new services are expected to be launched within the next twelve months.
The Company has repurchased a total of 270,634 shares for $2.2 million pursuant to its Normal Course Issuer Bid.
“While revenue growth isn’t as robust as it has been in recent years, we continue to trend positively against last year. In the coming months we will be paying close attention to revenue and monitoring discretionary costs to achieve our EBITDA goals”, commented Rob Steele, President and Chief Executive Officer. “Important additions to our asset base are the recently awarded FM licences in Fredericton and Miramichi, New Brunswick.”
Financial Highlights – Second Quarter
(thousands of dollars except share information) 2022 2022
Revenue $ 34,325 33,448
EBITDA(1) 9,177 11,090
Profit for the period 3,759 5,895
Earnings per share – basic 0.12 0.19
Earnings per share – diluted 0.12 0.19
Share price, NCC.A (closing) 7.75 8.79
Weighted average number of shares outstanding (in thousands) 30,072 30,322
Total assets 236,674 236,545
Long-term debt 48,807 60,271
Shareholders’ equity 123,739 107,629
(1) Refer to page 10 for the reconciliation of EBITDA to profit.
The Company’s complete Second Quarter Report, which includes the interim unaudited 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 Standards and is not standardized for public issuers. This measure may not be comparable to similar measures presented by other public enterprises. The Company has included this measure because the Company’s key decision makers believe certain investors use it as a measure of the Company’s financial performance and for valuation purposes. The Company also uses this measure internally to evaluate the performance of management. A calculation of this measure is included in the Company’s Second Quarter Report.