NexGen Financial Corporation Announces Solid Asset Growth and 2011 Year-End Results
25 March 2012 - 2:29PM
PR Newswire (Canada)
TORONTO, March 28, 2012 /CNW/ - NexGen Financial Corporation
("NexGen" or "the Company"), today announced its financial results
for the three and twelve month periods ended December 31, 2011.
These results are consistent with the preliminary and unaudited
financial results announced on February 2, 2012. 2011 Highlights --
Assets under management1 ("AUM") increased 12% to $920 million as
of December 31, 2011, from $823 million as at December 31, 2010
compared to an industry decline of 0.3% over the same period --
$135 million in net sales of mutual funds for 2011 -- Management
and administration fee revenues increased 44% to $12.9 million for
2011, from $9.0 million in the prior year -- Operating EBITDA2
improved by $2.1 million to $1.1 million ($0.25 per share) for
2011, from negative $1.0 million (negative $0.22 per share) in the
prior year -- In February 2012, subsequent to year end, NexGen
listed its common shares on the TSX-V under the symbol NFX NexGen
reported a net loss for 2011 of $1.9 million (loss of $0.40 per
share), unchanged from a net loss of $1.9 million (loss of $0.41
per share) in the prior year. Included in the 2011 results was a
one-time non-cash income tax expense of $1.1 million recognized in
the first quarter of 2011 resulting from a corporate
reorganization. On an adjusted basis (excluding this one-time item)
net loss for 2011 would have been $0.8 million. "In 2011, despite
the challenging financial markets, we made strong progress across a
number of key areas, generating $135 million in net sales and
increasing our Assets Under Management for the fifth consecutive
year", said Laurie Munro, CEO of NexGen. "We continue to invest in
our business, expanding our sales and marketing teams as we
intensify our efforts to introduce NexGen's unique tax-efficient
investment solutions to a broader range of advisors and investors."
"In February of this year, we completed our listing on the
TSX-Venture Exchange," continued Mr. Munro. "This is an important
milestone for our company and we look forward to continuing to
build and grow our business to create long-term value for our
shareholders" Q4 2011 Results Management and administration fee
revenues increased 19% to $3.7 million in the fourth quarter of
2011, from $3.1 million in the fourth quarter of 2010. Operating
EBITDA increased $0.3 million to $0.7 million in the fourth quarter
of 2011, from $0.4 million in the fourth quarter of 2010. The
improvement in operating performance resulted primarily from higher
levels of AUM. Net income for the fourth quarter of 2011 was $0.3
million ($0.05 per share), relatively unchanged from the same
period in the prior year. Results for the fourth quarter of each
year are positively impacted by tax management fees which are
realized at the end of year if certain return and tax objectives
have been satisfied. Notes: 1. Assets under management or "AUM"
refers to the market value of net assets of the investment funds on
which management fees are calculated. Industry data as reported by
the Investment Funds Institute of Canada. 2. Operating EBITDA
defined by NexGen as earnings before interest, taxes, depreciation
and amortization, investment income and other non-cash expenses
Non-GAAP financial measures such as "Assets Under Management" or
"AUM", and "Operating EBITDA" do not have any standardized meaning
prescribed by International Financial Reporting Standards ("IFRS")
and may not be comparable to similar measures presented by other
companies. Readers are cautioned that these non-GAAP measures are
not alternatives to measures determined in accordance with IFRS and
should not, on their own, be construed as indicators of
performance, cash flows, or profitability. However, management of
NexGen believes that most shareholders, creditors and other
stakeholders prefer to include the use of these financial measures
in analyzing the Company's results. About NexGen Financial NexGen
Financial Corporation is a mutual fund company and was founded to
develop value added investment solutions for financial advisors and
their clients. The firm is focused on the creation of innovative
investment products and services that meet the needs of Canadians
seeking more tax efficient investment opportunities and greater
control over the tax treatment of their investments. Managed by
strong investment professionals, NexGen's unique Registered and
Tax-Managed Fund offerings are well positioned as attractive
investment opportunities for Canadians looking to alleviate the tax
costs associated with traditional investment solutions. Forward
Looking Statements This release may contain "forward-looking
statements" which reflect the current expectations of the Company.
These statements reflect management's current beliefs with respect
to future events and are based on information currently available
to management. Forward-looking statements involve significant known
and unknown risks, uncertainties and assumptions. Many factors
could cause actual results, performance or achievements to be
materially different from any future results, performance or
achievements that may be expressed or implied by such
forward-looking statements including, without limitation, those
listed under the heading "Risk Factors" in the Company's Management
Discussion and Analysis, which is available on the Company's
website and on SEDAR at www.sedar.com. Should one or more of these
risks or uncertainties materialize, or should assumptions
underlying the forward-looking statements prove incorrect, actual
results, performance or achievements could vary materially from
those expressed or implied by the forward-looking statements
contained in this release. Although the forward-looking statements
contained in this release are based upon what the Company believes
to be reasonable assumptions, the Company cannot assure investors
that actual results, performance or achievements will be consistent
with these forward-looking statements. These forward-looking
statements are made as of the date of this release and the Company
does not assume any obligation to update or revise them to reflect
new events or circumstances. Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy of this release. NexGen Financial Corporation CONTACT:
Laurie Munro, President & CEONexGen Financial
Corporation416.775.3705lmunro@nexgenfinancial.caAbe Goenka, CFO
& COONexGen Financial
Corporation416.775.3723agoenka@nexgenfinancial.ca
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