DARTMOUTH – Newfoundland Capital Corporation recorded a loss of $1.1 million in the third quarter compared to a profit of $4.3 million in 2011. The company attributed the decrease in profit primarily to a $7.5 million non-cash impairment charge resulting from the CRTC’s decision to end the Local Programming Improvement Fund.
Year-to-date profit of $3.5 million was down 74% from $9.6 million in the same period in 2011. It blamed the decline on the impairment charge combined with unrealized mark-to-market investment portfolio losses this year of $2.3 million.
"We are very pleased that positive revenue growth has continued into the third quarter. We see some softening in that trend heading into the fourth quarter" commented Rob Steele, President and Chief Executive Officer. "We are focusing our attention on managing costs to deliver solid EBITDA results for 2012."
Revenue for the third quarter was $33.7 million, up $1.8 million and 6% higher than last year. Year-to-date revenue of $95.5 million was $3.6 million or 4% higher than 2011. The growth was due to a “combination of organic growth as well as incremental revenue from the acquired stations in British Columbia,” reported Newcap.
It recorded EBITDA earnings of $8.9 million in the quarter, up $300,000 and 3% higher than last year due to higher revenue. Year-to-date EBITDA of $22.7 million was $1.9 million, 8% lower than 2011 due to higher operating expenses. It maintained that if the current $1.1 million expense related to the extension of stock options is excluded year-to-date EBITDA would have been 2% higher than 2011.
As noted, in Q3 it recorded an impairment charge of $7.5 million related to its television operations in Lloydminster, Alberta. This it said was triggered by the CRTC decision to discontinue the Local Programming Improvement Fund effective August 31, 2014.
The company also repurchased 891,134 shares for $7.1 million in the quarter bringing the year-to-date total of shares repurchased to 1,161,768 for total cash consideration of $9.3 million. Dividends of $1.8 million were paid on September 14, 2012.
