DARTMOUTH – Despite an increase in revenues, second quarter profits at Newfoundland Capital Corp. fell 36%.
Profits for the period ended June 30 were $3.8 million, a steep drop from $5.9 million reported in the same quarter last year. The radio broadcaster said that impacting year-over-year comparisons were unrealized mark-to-market losses of $0.6 million in the quarter.
Revenue of $34.3 million was 3% higher than last year due to a combination of “organic increases” as well as incremental revenue from its two recently acquired stations in British Columbia.
Earnings before interest, taxes, depreciation and amortization (EBITDA) fell 17% to $9.2 million 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 2011.
“While revenue growth isn't as robust as it has been in recent years, we continue to trend positively against last year”, said president and CEO Rob Steele, in a statement. “In the coming months we will be paying close attention to revenue and monitoring discretionary costs to achieve our EBITDA goals.”
