NexGen Financial Corporation
TSX VENTURE : NFX

NexGen Financial Corporation

November 26, 2013 16:24 ET

NexGen Financial Announces Third Quarter 2013 Results

TORONTO, ONTARIO--(Marketwired - Nov. 26, 2013) - NexGen Financial Corporation (TSX VENTURE:NFX) ("NexGen" or "the Company") today announced its unaudited financial results for the quarter ended September 30, 2013.

During Q3 NexGen continued to experience redemptions of fixed income funds consistent with industry trends. In response, we have launched two new funds in August, the NexGen Canadian Preferred Share Fund and the NexGen Global Equity Fund. As of today, these new funds combined have generated over $30 million of AUM. In addition, the US Dividend Plus Fund launched in January of this year has crossed $55 million in AUM.

"Management remains focused on growing the Company while managing costs. We recently completed an operational review which is expected to yield approximately $400,000 in annual cost savings primarily through headcount reductions," said Laurie Munro, President and CEO of NexGen.

Q3 2013 Highlights

  • Assets under management1 ("AUM") decreased 11% to $896.9 million at September 30, 2013, from $1007.7 million at September 30, 2012.
  • Net redemptions were $79.5 million and AUM declined 7% for the third quarter of 2013.
  • Management and administration fee revenues were $3.3 million for the third quarter of 2013, a 4.0% decrease from $3.4 million for the third quarter of 2012.
  • Operating EBITDA2 decreased to $0.25 million ($0.05 per share) for the third quarter of 2013, from $0.44 million ($0.09 per share) for the third quarter of 2012.

NexGen reported a net loss of $0.18 million ($0.04 per share) for the three months ended September 30, 2013, compared with a net loss of $0.06 million ($0.01 per share) for the same period in the prior year.

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.
  1. 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.

Contact Information