Newfoundland Capital Corporation Limited - First Quarter 2017 - Period Ended March 31 (unaudited)

DARTMOUTH, NS, May 10, 2017 /CNW/ - Newfoundland Capital Corporation Limited (the "Company") today announces its financial results for the first quarter ending March 31, 2017.

Highlights

• Revenue of $35.7 million was $1.1 million or 3% lower than last year. The decrease was primarily due to revenue declines in the Alberta markets due to continued economic uncertainty in that region and declines in Ottawa due to downward pressure on advertising rates.
• Earnings before interest, taxes, depreciation and amortization ("EBITDA"⁽¹⁾) of $7.0 million was $1.1 million or 14% lower than last year as a result of lower revenue.
• Profit for the period was $3.0 million, a decrease of $1.6 million or 35% compared to last year due to lower revenue and a higher provision for income taxes.

Significant events

• In April 2017, the Company announced it has entered into an agreement with Rogers Media to sell CISL-AM in Vancouver. The sale is subject to approval by the Canadian Radio-television and Telecommunications Commission ("CRTC").
• Today the Company announced it has entered into an agreement to purchase three radio stations in Kamloops, British Columbia. The acquisition is subject to approval by the CRTC.

"The first quarter was challenging as our Company experienced revenue declines consistent with the overall radio industry" commented Rob Steele, President and Chief Executive Officer.  "We believe that our quality product and keen focus on cost control will allow us to overcome some of this shortfall during the remainder of the year."

The Company's complete First 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 First 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 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