TORONTO, March 28, 2012 /CNW/ - 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.
- 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.
- 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