TORONTO, May 22, 2012 /CNW/ - NexGen Financial Corporation ("NexGen" or "the Company"), (TSXV: NFX) today announced its unaudited financial results for the quarter ended March 31, 2012.
Q1 2012 Highlights
- Assets under management1 ("AUM") increased 7% to $948.6 million at March 31, 2012, from $886.5 million at March 31, 2011, compared to an industry increase of 0.1% over the same period
- AUM increased $28.6 million during the first quarter of 2012, driven by net sales of $14.1 million and market appreciation of $14.5 million
- Management and administration fee revenues were $3.4 million for the first quarter of 2012, a 17% increase from $2.9 million for the first quarter of 2011
- Operating EBITDA2 improved to $0.26 million ($0.06 per share) for the first quarter of 2012, from negative $0.04 million (negative $0.01 per share) for the first quarter of 2011
NexGen reported a net loss of $0.18 million ($0.04 per share) for the three months ended March 31, 2012, compared with a net loss of $1.46 million ($0.32 per share) for the same period in the prior year. There was a one-time, non-cash income tax expense of $1.13 million recognized in the first quarter of 2011 resulting from a corporate reorganization. Net loss before taxes for the three months ended March 31, 2012 was $0.18 million when compared to a loss of $0.43 million for the same period in the prior year.
"Despite a challenging market backdrop we continued to grow our asset base in the first quarter of 2012, driven by $14.1 million in net sales and $14.5 million in market value appreciation in our funds", said Laurie Munro, President & CEO of NexGen. "We are focused on broadening our product offering to provide investors with a wider range of options. We will be shortly introducing a new Corporate Bond Fund which is anticipated to be available in early June. The fund will be sub-advised by Baker Gilmore, a well respected Montreal-based Canadian fixed income manager."
- 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.
For further information:
Laurie Munro, President & CEO
NexGen Financial Corporation
Abe Goenka, CFO & COO
NexGen Financial Corporation