TORONTO, Nov. 19, 2012 /CNW/ - NexGen Financial Corporation ("NexGen" or "the Company"), (TSX-V: NFX) today announced its unaudited
financial results for the quarter ended Spetember 30, 2012.
Q3 2012 Highlights
Achieved $1 billion assets under management1 ("AUM") milestone
AUM increased 15.2% to $1.01 billion at September 30, 2012 from $874.6
million at September 30, 2011, compared to an industry growth rate of
10.5% over the same period
During Q3, 2012, AUM increased 6.4% with net sales of $37.7 million
Operating EBITDA2 improved to $0.44 million ($0.09 per share) for Q3, 2012, from $0.26
million ($0.06 per share) for Q3, 2011
NexGen ended Q3, 2012 with $6.0 million of working capital available to
fund future operations
"We are very pleased to have achieved the $1 billion AUM milestone. We
continue to attract assets to our Fixed Income and conservative
Balanced Funds reflecting a continuing risk averse investor mindset"
said Laurie Munro, President & CEO of NexGen.
NexGen reported a net loss of $0.06 million ($0.01 loss per share) for
the three months ended September 30, 2012, compared with a net loss of
$0.36 million ($0.08 loss per share) for the same period in the prior
year. Total revenues increased 17.5% to $3.54 million for the three
months ended September 30, 2012, from $3.01 million for the three
months ended September 30, 2011.
The Company has also granted incentive stock options to purchase a total
of 93,000 common shares to certain of its officers and employees in
accordance with the provisions of its stock option plan. Pursuant to
this plan, the Corporation is authorized to grant an aggregate of up to
10% of its issued and outstanding common shares on a rolling basis.
The Company's complete financial results are available at ir.nexgenfinancial.ca and www.sedar.com.
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
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