Newfoundland Capital : Nov 3 , 2016 - Newfoundland Capital Corporation Limited today announces its financial results for the third quarter ending September 30, 2016.

• Revenue for the third quarter of $41.5 million was $0.4 million or 1% higher than the same quarter last year and year-to-date revenue of $122.6 million was $3.5 million or 3% higher than 2015. The increase during the quarter was primarily due to growth in Toronto and year-to-date was primarily due to growth in Toronto and Ottawa as a result of strong listener ratings in those markets.
• Earnings before interest, taxes, depreciation and amortization ("EBITDA"(1)) of $13.1 million in the third quarter was $1.2 million or 10% higher than the third quarter last year and year-to-date EBITDA of $35.1 million was $3.6 million or 11% higher than 2015. The improvements in EBITDA relate primarily to a non-recurring recovery of previously expensed copyright tariffs, partially offset by restructuring costs incurred in the third quarter. Excluding the net impact of these items of $0.8 million, EBITDA was 3% higher than the third quarter last year and year-to-date EBITDA was 9% higher than the same period last year. The improvements are a result of revenue growth and the Company's continued commitment to managing costs.
• Profit for the period of $7.7 million was $1.1 million or 16% higher than the same quarter last year and year-to-date profit of $20.7 million was $5.5 million or 36% higher than last year. The increase in the quarter and year to date were due to higher revenue, net expense recoveries and lower interest expense.‌‌ Significant events

• During the third quarter, the Board of Directors approved an increase in dividends to $0.20 per share per annum, up from $0.15 per share per annum. As a result, the Board of Directors declared a dividend of $0.10 on each of its Class A Subordinate Voting and Class B Common shares. The dividends were paid on September 15, 2016 to shareholders of record at the close of business on August 31, 2016.‌‌‌

  "This year has been very rewarding for our shareholders. Both revenue and EBITDA have improved over last year and that contributed to our decision to increase annual dividends" commented Rob Steele, President and Chief Executive Officer. "Our national footprint combined with a focus on improving operational efficiencies should enable the Company to experience continued success in the future."‌

  Financial Highlights - Third quarter‌

  Three months ended September 30

  (thousands of Canadian dollars, except share information)	2016	2015
  Revenue	$ 41,455	41,006
  EBITDA(1)	13,122	11,951
  Profit	7,738	6,683
  Earnings per share - basic	0.30	0.25
  Earnings per share - diluted	0.29	0.24
  Weighted average number of shares outstanding (in thousands)	25,655	26,694
  September 30	December 31
  2016	2015
  Share price, NCC.A (closing)	9.30	11.00
  Total assets	365,207	364,246
  Long-term debt, including current portion	138,943	145,908
  Shareholders' equity	153,684	145,991

  (1) Refer to page 13 "Non-IFRS Accounting Measure"

  MANAGEMENT'S DISCUSSION AND ANALYSIS

  The purpose of the Management's Discussion and Analysis ("MD&A") is to provide readers with additional complementary information regarding the financial condition and results of operations for Newfoundland Capital Corporation Limited (the "Company") and should be read in conjunction with the unaudited condensed interim consolidated financial statements ("interim financial statements") and related notes for the periods ended September 30, 2016 and 2015, as well as the annual audited consolidated financial statements and related notes prepared in accordance with International Financial Reporting Standards ("IFRS") and the MD&A contained in the Company's 2015 Annual Report. The Company's third quarter 2016 interim financial statements and the accompanying notes have been prepared in accordance with International Accounting Standard ("IAS") 34, "Interim Financial Reporting" ("IAS 34") as issued by the International Accounting Standards Board ("IASB") and using the accounting policies described therein. These interim financial statements include the accounts of the Company and other entities in which the Company controls in accordance with IFRS 10 "Consolidated Financial Statements" and are reported in Canadian dollars. These documents along with the Company's Annual Information Form, its Management Proxy Circular dated March 3, 2016 and other public information are filed electronically with various securities commissions in Canada through the System for Electronic Document Analysis and Retrieval and can be accessed at www.sedar.com. This information is also available on the Company's website at www.ncc.ca.

  The Board of Directors, upon recommendation of the Audit and Governance Committee, approved the content of this MD&A on November 3, 2016. Disclosure contained in this document is current to this date, unless otherwise stated.

  Management's Discussion and Analysis of financial condition and results of operations contains forward-looking statements and forward-looking information within the meaning of Canadian provincial securities laws. 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, 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. Assumptions, expectations and estimates made in the preparation of forward-looking statements and risks that could cause our actual results to differ materially from our current expectations are discussed in detail in the Risks and Opportunities section of this MD&A. 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.

  CORPORATE PROFILE

  Newfoundland Capital Corporation Limited 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. It is Canada's largest pure-play radio company, employing approximately 1,000 of the best radio professionals across the country. The Company's portfolio of radio assets includes 80 FM and 15 AM licences which can be heard throughout Canada. Most of the Company's stations are globally accessible via the internet and various mobile device applications, allowing listeners the flexibility to tune in at anytime from anywhere. The shares of the Company trade on the Toronto Stock Exchange under the symbols NCC.A and NCC.B.

  STRATEGY AND OBJECTIVES

  The Company's long-term strategy is to maximize returns on existing operations and add new licences through business and licence acquisitions and through the Canadian Radio-television and Telecommunications Commission ("CRTC") licence application process.

  The Company's day-to-day operating objective is to grow its existing operations by increasing advertising revenue and remaining focused on controlling costs to maximize earnings before interest, taxes, depreciation and amortization ("EBITDA") margins. Management will continue to explore acquisition and expansion opportunities that fit the Company's objectives and it will make applications to the CRTC for new licences. The Company's commitment to its talented employees, its customers, its listeners and to the communities it serves remains critical to its success.

  CORPORATE DEVELOPMENTS

  The following is a review of the key corporate developments which should be considered when reviewing the "Consolidated Financial Performance Review" section. The results of the launched stations have been included in the interim financial statements since their launch dates.

  Recent Developments:

• October 2016 - the Company received a refund from CMRRA-SODRAC Inc. and Connect/SOPROQ (the "Collectives") for previously paid tariffs as a result of a Copyright Board of Canada decision made during the year. The Company's third quarter interim financial statements include a reduction of $1.6 million in operating expenses as a result of the retroactive impact of this decision. The decision remains under judicial review as discussed in the "Risks and Opportunities" section of this MD&A.

• May to September 2016 - the Company repurchased a total of 1,092,600 Class A subordinate voting shares for cash consideration of $10.4 million.

• August 2016 - the Company's Board of Directors approved an increase in annual dividends to $0.20 per share from $0.15 per share previously and declared dividends of $0.10 on each of its Class A Subordinate Voting and Class B Common shares.

• May 2016 - launched a new FM licence in Clarenville, Newfoundland and Labrador.

• March 2016 - rebranded CKDQ in Drumheller to 910 CFCW, an extension of the Company's legendary CFCW brand, the voice of rural Alberta, which is now available in nearly all of Alberta.

• February 2016 - rebranded CFXJ-FM in Toronto to 93.5 The Move, a rhythmic hot adult contemporary station targeting adults 25 to 44.

• February 2016 - rebranded CKUL-FM in Halifax to Mix 96.5, a hot adult contemporary station playing a variety of pop/rock hits from the 90s to now.

• December 2015 - launched a new FM licence in Fox Creek, Alberta (a repeater of CFXW-FM Whitecourt, Alberta).

• August and December 2015 - the Company's Board of Directors approved dividends totalling $0.15 on each of its Class A Subordinate Voting and Class B Common shares.

• May and July 2015 - The Company repurchased a total of 1,569,800 Class A Subordinate Voting shares for cash consideration of $13.9 million.

• May 2015 - The Company amended its credit facilities to reduce interest rates by approximately 0.5% and to extend the maturity date to May 31, 2018.

CONSOLIDATED FINANCIAL PERFORMANCE REVIEW

Consolidated Financial Results of Operations

(1) Refer to page 13 "Non-IFRS Accounting Measure"

ANALYSIS OF CONSOLIDATED FINANCIAL RESULTS

A detailed analysis of the variations in revenue, operating expenses and EBITDA are included in the section entitled "Financial Review by Segment".

In the third quarter, consolidated revenue of $41.5 million was $0.4 million or 1% higher than the same quarter last year and year-to-date revenue of $122.6 million was $3.5 million or 3% higher than 2015. The quarter and year-to-date increases were primarily attributable to the higher revenue in the Broadcasting segment, particularly the Toronto operations in the third quarter and Toronto and Ottawa operations year-to-date, as a result of strong listener ratings in those markets.

In the third quarter, consolidated operating expenses of $28.3 million were 2% below the same period last year while year-to-date operating expenses of $87.5 million were $0.1 million below 2015. The decrease in operating expenses was primarily a result of a recovery recognized in the quarter related to a retroactive decrease in certain copyright tariffs that applied to previous years. This benefit was partially offset by restructuring costs incurred in the Broadcasting segment during the third quarter of 2016. Also offsetting this benefit on a year-to-date basis was higher advertising costs incurred in the Broadcasting segment, including marketing costs incurred to promote stations that were rebranded during the year.

In the third quarter, consolidated EBITDA of $13.1 million was $1.2 million or 10% higher than the same period last year and year-to-date EBITDA of $35.1 million was $3.6 million or 11% higher than 2015. The increase was primarily due to higher revenue and lower operating expenses. Excluding the net recovery of $0.8 million included in operating costs as a result of non-recurring items discussed immediately above, EBITDA was 3% higher than the third quarter last year and year-to-date EBITDA was 9% higher than the same period last year.

In the quarter, depreciation and amortization expense of $1.4 million was 16% higher than 2015 and year-to- date depreciation and amortization of $3.7 million was 5% higher than 2015 as a result of accelerated depreciation recorded during the period as a result of the retirement of certain assets.

Accretion of other liabilities arises from discounting Canadian Content Development ("CCD") commitments to reflect the fair value of the obligations. Accretion expense was lower in the third quarter and year-to-date than the same periods in 2015 because of the payments of CCD commitments during 2015 which reduced the balance on which accretion was recorded.

Interest expense in the third quarter of $1.2 million was $0.2 million or 17% lower than the same quarter last year because of lower effective interest rates. Year-to-date interest of $3.6 million was $1.4 million or 28% lower than last year primarily because of fluctuations in the value of the Company's interest rate swap payable which contributed $0.8 million of the variance, combined with lower interest rates as a result of the renegotiation of the Company's credit facilities in May 2015.

Other income (expense) generally consists of gains and losses, realized and unrealized, on the Company's marketable securities and items that are not indicative of the Company's core operating results, and not used in the evaluation of the Company's performance, such as acquisition-related costs and impairment charges. Other income in the third quarter was $0.4 million, primarily related to mark to market gains of $0.4 million on the Company's marketable securities portfolio which was divested of during the quarter, compared to an expense of

$0.2 million in 2015 which primarily related to unrealized losses on the marketable securities portfolio. Year- to-date other income was $0.9 million, primarily related to mark to market gains on the Company's marketable securities of $0.8 million, compared to an expense of $0.3 million the same time last year as a result of realized losses of $0.1 million and unrealized losses of $0.2 million on marketable securities.