NexGen Financial Announces Second Quarter 2012 Results
August 22 2012 - 4:50PM
PR Newswire (Canada)
TORONTO, Aug. 22, 2012 /CNW/ - NexGen Financial Corporation
("NexGen" or "the Company"), today announced its unaudited
financial results for the quarter ended June 30, 2012. Q2 2012
Highlights -- Assets under management1 ("AUM") increased 7% to
$947.5 million at June 30, 2012, from $886.9 million at June 30,
2011, compared to an industry decline of 0.9% over the same period
-- Net sales of $14.2 million for the quarter ended June 30, 2012
-- Launched NexGen Corporate Bond Funds in June 2012 generating
over $6 million sales during the first month -- Operating EBITDA2
improved to $0.20 million ($0.04 per share) for Q2, 2012, from
negative $0.18 million (negative $0.04 per share) for Q2, 2011 --
NexGen ended Q2, 2012 with $5.9 million of working capital
available to fund future operations NexGen reported a net loss of
$0.27 million ($0.06 per share) for the three months ended June 30,
2012, compared with a net loss of $0.31 million ($0.07 per share)
for the same period in the prior year. Revenues increased 3.8% to
$3.24 million for the three months ended June 30, 2012, from $3.13
million for the three months ended June 30, 2011. "The NexGen
Corporate Bond Funds have been well received contributing to our
net sales during the second quarter and expanding our tax efficient
product line" said Laurie Munro, President & CEO of NexGen. The
Company's complete financial results are available at
ir.nexgenfinancial.ca and www.sedar.com. Notes: 1. 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. 2.
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. NexGen Financial
Corporation CONTACT: Laurie Munro, President & CEONexGen
Financial Corporation416.775.3705lmunro@nexgenfinancial.ca Abe
Goenka, CFO & COONexGen Financial
Corporation416.775.3723agoenka@nexgenfinancial.ca
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