QUEENCREEK, AZ--(Marketwired - Apr 15, 2014) - NexGen Holdings Corp. (PINKSHEETS: XGEN) today released information about its results over the past year and its future plans.
On April 19, 2013 the Company acquired RIG Construction, Inc. d/b/a Cameo Pools a struggling swimming pool construction company located in Mesa, Arizona. During the 12 months prior to this acquisition the Company had recorded a total of $125,000 in revenue from its alternative energy subsidiary WindPower Solutions, Inc. In the U.S. the alternative energy industry is directly affected by credits and incentives allocated by the Federal government and in 2012 those incentives changed and favored Solar at the expense of Windpower. Management looked for other industries that could provide value to its shareholders.
Upon acquiring RIG Construction, Inc. management worked to quickly increase gross margins from 11.2% to nearly 30%. Operations were streamlined, marketing became more focused, debt was retired and new capital employed with the result that RIG financially broke even in the first quarter after acquisition and has been profitable ever since. During the 3 quarters reported this subsidiary recorded an increase in sales bookings of 16% with revenues of $1.9 Million and net income of $84,000. The Company spent money on new software from Evosis which over time will allow this subsidiary to further streamline costs and will allow the Company to acquire and assimilate other swimming pool companies over the next few years while the housing and renovation markets continue to boom.
Meanwhile, WindPower Solutions, Inc. has hired Nick Palumbo to head its business development. Mr. Palumbo has brought new products and new markets for the Company through strategic partnerships to offset the decline in wind power opportunities with the reduction in incentives for alternative energy in the U.S. The result is that in December 2013 alone this subsidiary recorded revenues of $115,000 and gross margins of $8800 nearly matching the previous 12 months revenues. This new revenue stream is related to the provision of solar tax credits and will be sporadic at best. The Company then looked to Europe for opportunities to sell its products where the governments are much more incentivized for alternative energy. This resulted in a joint venture agreement with Energy Arventus which while encouraging is dependent on Energy Arventus completing the financing of its project. It does however open the door to other relationships in Europe for the Company's products. Management will continue to look for opportunities to sell its products anywhere in the world.
We changed our name from WindPower Innovations, Inc. to NexGen Holdings, Corp to more closely reflect our changing dimensions. Management looked to spend additional funds to audit our books and records so that we could become a fully reporting company with the United States Securities and Exchange Commission and move to the OTCQB listing. In order to do that we entered into an agreement with Excelerate to provide the needed funds and then quickly discarded that agreement as we decided that this form of financing was toxic to shareholders. We worked closely with certain financial institutions to acquire some expensive debt to fund out activities. We determined that with the continued increase in our stock from $.0022 prior to the acquisition to $.042 as of March 27, 2014, an increase of 1809% that we shouldn't spend the extra money to become fully reporting last year. We could best benefit shareholders by concentrating our funds on improving our businesses so that we could qualify for cheaper funds to finance our expansion. We now believe that we will qualify for bank financing.
We are now positioned with a stronger balance sheet to grow organically and to make acquisitions in our core businesses such as the swimming pool construction business and alternative energy as well as other opportunities that our board believes would enhance shareholder value, and we intend to do so over the next 12 months.
For more information about our company please review the fact sheet attached to this press release and posted on our website www.nexgenholdingscorp.com
About NexGen Holdings Corp.
NexGen Holdings, Corp. is a public holding company that is an acquirer and operator of fundamentally sound subsidiaries that are market accepted, scalable and demonstrate a quantifiable value proposition. To enhance shareholder value our focus is on establishing a foot print in a specific industry through the acquisition of a subsidiary that has strong market presence, brand awareness, talented and dedicated management teams with the potential to achieve exceptional performance over time. Once acquired these companies can expand through additional acquisitions, aggressive marketing and access to our operational support, management approach, and ability to access financial markets for operational and growth capital to build a market leader. NexGen Holdings Corp. currently has two subsidiaries: WindPower Solutions, Inc. which manufactures, repairs and remanufactures wind power turbines and solar power plants for operators worldwide, and R.I.G. Construction, Inc. which under the Cameo brand builds and renovates swimming pools and markets outdoor products to consumers in the Phoenix, Arizona Metropolitan Area. -- For more information go to our websites at: www.nexgenholdingscorp.com, www.wpienergy.com, www.cameopools.com
Forward-Looking Statements Disclaimer:
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including those regarding NexGen Holdings, Corp. expectations, intentions, strategies and beliefs pertaining to future events or future financial performance. All statements contained herein are based upon current information available to NexGen Holdings, Corp.'s management as of this date. The business and operations of the Company are subject to substantial risks which increase the uncertainty that forward-looking results will be achieved and actual events or results may vary materially as a result of various important factors including those which management has little or no control. We undertake no duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements.