TORONTO,
March 25, 2013 /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,
2012.
2012 Highlights
- Achieved $1 billion Assets Under
Management1 ("AUM") milestone
- AUM increased 12% to $1.03
billion as of December 31,
2012, from $920 million as of
December 31, 2011
- Management fee revenues increased 11% to $14.3 million for 2012, from $12.9 million in the prior year
- Operating EBITDA2 improved by $0.8 million to $1.9 million ($0.42 per share) for 2012, from $1.1 million ($0.25
per share) in the prior year
NexGen reported a net loss for 2012 of
$0.2 million ($0.04 loss per share), an improvement of
$1.7 million from a net loss of
$1.9 million ($0.40 loss per share) in the prior year. Included
in the 2011 results was a one-time non-cash income tax expense of
$1.1 million resulting from a
corporate reorganization. On an adjusted basis (excluding this
one-time item), net loss for 2012 improved by $0.6 million as compared to the prior year.
"In 2012, we made strong progress exceeding
$1 billion in AUM driven by net sales
of $83 million despite the
challenging financial markets", said Laurie
Munro, CEO of NexGen. "Importantly, for the seventh
consecutive tax year we delivered tax results consistent with our
clients objectives. In addition, in June of this year we launched a
new corporate bond fund which raised $35
million as at year end" he added.
Q4 2012 Results
Management and administration fee revenues
increased 15% to $4.2 million in the
fourth quarter of 2012, from $3.7
million in the fourth quarter of 2011. Operating EBITDA
increased $0.3 million to
$1.0 million in the fourth quarter of
2012, from $0.7 million in the fourth
quarter of 2011. The improvement in operating performance resulted
primarily from higher levels of AUM.
Net income for the fourth quarter of 2012 was
$0.3 million ($0.07 per share) as compared to $0.3 million ($0.05
per share) for 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.
Notes:
- 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.
SOURCE NexGen Financial Corporation