TORONTO, Nov. 18, 2011 /CNW/ - NexGen Financial Corporation ("NexGen" or
"the Company"), today announced its financial results for the three and
nine month periods ended September 30, 2011.
Assets under management ("AUM") increased to $874.6 million as of
September 30, 2011, an improvement of 19.8% versus the prior year
Management and administration fee revenues for the third quarter were
approximately $3.2 million, 47% higher than the year ago period
Net loss for the third quarter was $0.4 million or a loss of $0.08 per
share and includes a $0.2 million loss from changes in the fair value
"As investors have grown more aware of the benefits offered through our
unique line of tax-efficient investment products, our AUM has increased
by 19.8% over the past year," said Laurie Munro, CEO of NexGen.
"Despite the ongoing volatility in the financial markets, we have
generated positive net sales each quarter this year. We are continuing
to expand our sales force and broaden our advisor network, as we
increase our efforts to reach new investors and support the future
growth of the business."
AUM and Sales
AUM increased 19.8% to $874.6 million as of September 30, 2011 from
$729.9 million at the end of the third quarter of 2010.
Net sales were $22.5 million for the quarter ended September 30, 2011,
compared to $82.2 million for the same period in 2010. The third
quarter of 2010 was an especially strong period for fixed-income
products. In the first half of 2011, investor sentiment shifted away
from fixed-income products toward our balanced and equity funds.
However, the current economic climate has led to a reversal in this
trend as investors have returned to less volatile asset classes.
For the quarter ended September 30, 2011, management and administration
fee revenues increased by 46.6% over the third quarter of 2010 to $3.2
Selling, general and administration expenses increased by 17.6% during
the quarter to $1.8 million from $1.6 million for the same period last
year. The increase was largely due to increased sub-advisory fees, as
well as higher compensation and general and administrative expenses
resulting from the growth of NexGen's sales force.
Operating EBITDA for the quarter ended September 30, 2011 was $0.2
million, an increase of $0.5 million from the third quarter of 2010.
The improvement resulted from higher management and administrative fees
generated by the Company's increased AUM, partially offset by higher
Net loss for the third quarter of 2011 was $0.4 million or $0.08 per
share, virtually unchanged from the same period last year. Third
quarter results were negatively impacted by a $0.2 million unrealized
loss from changes in the fair market value of investments.
For the nine months ended September 30, 2011, revenue increased to $9.0
million, a 48% improvement from the first nine months of 2010. Selling,
general and administration expenses increased $5.5 million, up 14.7%
over the prior year period. Operating EBITDA was positive $0.4 million
for the nine months ended September 30, 2011, compared to negative $1.4
million for the nine months ended September 30, 2010. Net loss for the
period was $2.1 million or $0.46 per share, compared with a net loss of
$2.1 million or $0.47 per share during the first three quarters of
2010. Included in the current year to date results is a non-cash income
tax expense of $1.0 million recognized in the first quarter of 2011
resulting from a corporate reorganization.
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 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 or accuracy of this release.
SOURCE Nexgen Financial Corporation
For further information:
Laurie Munro, President & CEO
NexGen Financial Corporation