NexGen Financial Corporation
TSX VENTURE : NFX

NexGen Financial Corporation

November 25, 2014 16:01 ET

NexGen Financial Announces Third Quarter 2014 Results

TORONTO, ONTARIO--(Marketwired - Nov. 25, 2014) - NexGen Financial Corporation ("NexGen" or "the Company"), (TSX VENTURE:NFX) today announced its unaudited financial results for the quarter ended September 30, 2014.

"We are pleased by the continued positive trend in net sales experienced throughout the third quarter as our equity fund offerings continue to prove popular with financial advisors and their clients," said Jeff Young, Co-CEO of NexGen. "We are also very excited at the prospect of joining the Natixis Global Asset Management family and gaining access to their global investment capabilities."

Q3 2014 Highlights

  • Net sales were positive $18.5 million for the three months ended September 30, 2014, a significant improvement from net redemptions of $79.5 million for the three months ended September 30, 2013

  • AUM1 increased 2.3% during the quarter, driven primarily by net sales

  • Equity and Balanced fund AUM increased by 42% to $571 million as of September 30, 2014, from $402 million as of September 30, 2013

  • Operating EBITDA2 improved to $0.28 million ($0.06 per share)

NexGen reported a net loss of $0.16 million ($0.03 loss per share) for the three months ended September 30, 2014, an improvement from a net loss of $0.18 million ($0.05 loss per share) for the same period in the prior year. Operating EBITDA increased to $0.28 million ($0.06 per share) for the third quarter of 2014, from $0.25 million ($0.05 per share) for the third quarter of 2013.

Proposed Acquisition of NexGen by Natixis Global Asset Management ("Natixis")

On October 24, 2014, NexGen announced that it has entered into an agreement (the "Agreement") with a wholly-owned subsidiary of Natixis Global Asset Management ("Natixis") in which Natixis will acquire all of the outstanding common shares of NexGen for consideration consisting of $7.25 cash per common share.

The Agreement is subject to customary closing conditions, among others, approval by the Company's shareholders, approval by the Ontario Superior Court of Justice and applicable regulatory approvals. An interim order of the Ontario Superior Court of Justice was issued on November 10, 2014. The approval of NexGen shareholders will be sought at a special meeting of shareholders scheduled to be held on December 17, 2014 at the offices of Goodmans LLP, 34th Floor, Bay Adelaide Centre, 333 Bay Street, Toronto, Ontario M5H 2S7. The closing of the transaction is anticipated to occur in late December 2014 or January 2015.

The Company's complete financial results and the press release dated October 24, 2014 announcing the proposed transaction are available at ir.nexgenfinancial.ca and www.sedar.com.

Notes:

  1. Assets under management or "AUM" refer to the market value of net assets of the investment funds on which management fees are calculated.
  2. Operating EBITDA is defined by NexGen as earnings before interest, taxes, depreciation and amortization, investment income and other non-cash expenses

A reconciliation of Operating EBITDA to Net Loss is included in the Management Discussion & Analysis for Q3 2014 available on SEDAR at www.sedar.com. 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 news release contains forward-looking statements within the meaning of securities legislation and that are based on the expectations, estimates and projections of management of the parties as of the date of this news release unless otherwise stated. Forward-looking statements are generally identifiable by use of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" or the negative of these words or other variations on these words or comparable terminology. More particularly, and without limitation, this news release contains forward-looking statements and information concerning expectations regarding the consideration to be issued pursuant to the Agreement, the ability of NexGen and Natixis to consummate the Agreement on the terms and in the manner contemplated thereby, the anticipated benefits of the Agreement, and the anticipated timing of the Agreement. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the time required to prepare and mail meeting materials to NexGen shareholders, the ability of the parties to receive, in a timely manner and on satisfactory terms, the necessary court, shareholder, stock exchange and regulatory approvals and the ability of the parties to satisfy, in a timely manner, the conditions to the closing of the Agreement, as well as other uncertainties and risk factors set out in filings made from time to time by NexGen with the Canadian securities regulators, which are available on SEDAR at www.sedar.com. Actual results, developments and timetables could vary significantly from the estimates presented. Readers are cautioned not to put undue reliance on forward-looking statements.

Regulatory Disclaimer

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.

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