TORONTO,
March 28, 2012 /PRNewswire/ -
NexGen Financial Corporation ("NexGen" or "the Company"),
(TSXV: NFX) 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:
- 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.
- 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.
SOURCE NexGen Financial Corporation