DARTMOUTH – Newfoundland Capital Corp. saw its first quarter profits cut almost in half despite a 3% increase in revenues.
The radio broadcaster recorded $781,000 in profits for the quarter ended March 31, 2012, down from $2.9 million in the same period last year. Newcap said that the primary reason for the decline was due to $2.3 million mark-to-market unrealized losses on marketable securities, compared to unrealized gains of $1.3 million in 2011.
Revenue of $27.5 million was 3% higher than $26.6 million last year as a result of organic (same-station) revenue growth, while earnings before interest, taxes, depreciation and amortization (EBITDA) of $4.7 million was 5% lower than last year due to higher stock-based compensation expense. Excluding this expense, EBITDA would have been 9% higher than 2011.
"Coming off a record year in 2011, the company has continued to grow revenue and outpace the industry rate of 2%", said president and CEO Rob Steele, in a statement. "We recently completed the acquisition of the two FM operations in British Columbia and we continue to look for other expansionary opportunities."
