NexGen Financial Corporation

TSX VENTURE : NFX


NexGen Financial Corporation

March 25, 2014 16:17 ET

NexGen Financial Corporation Announces 2013 Year-End Results

TORONTO, ONTARIO--(Marketwired - March 25, 2014) - NexGen Financial Corporation ("NexGen" or "the Company"), (TSX VENTURE:NFX) is pleased to announce its financial results for the three and twelve month periods ended December 31, 2013.

2013 Highlights

  • New equity funds launched in 2013 contributed net sales of $96 million. These sales continued in 2014 with net sales of approximately $32.3 million year to date.
  • AUM1 has broadened with balanced and equity funds representing 51% of total AUM at year end from 34% at the end of the prior year
  • AUM1 decreased 14.7% to $877.2 million as of December 31, 2013, from $1,028.1 million as of December 31, 2012
  • Operating EBITDA2 decreased by $0.4 million to $1.5 million ($0.32 per share) for 2013, from $1.9 million ($0.42 per share) in the prior year

NexGen reported a net loss for 2013 of $0.5 million ($0.11 loss per share), compared with a net loss of $0.2 million ($0.04 loss per share) in the prior year.

Q4 2013 Results

Management and administration fee revenues decreased 18% to $3.5 million in the fourth quarter of 2013, from $4.2 million in the fourth quarter of 2012. Tax management fee revenue, which are based on achieving performance and tax objectives and are earned in the fourth quarter of each year, decreased by $395,146 when compared to the prior year. Operating EBITDA decreased by $0.4 million to $0.6 million in the fourth quarter of 2013, from $1.0 million in the fourth quarter of 2012. The decrease in the operating performance resulted primarily from lower levels of AUM and lower realization of tax management fee partially offset by lower operating expenses.

Net income for the fourth quarter of 2013 was $0.1 million ($0.03 per share) as compared to $0.3 million ($0.07 per share) for the same period in the prior year.

"We are excited about 2014 and the opportunities ahead. With our improved product line-up and investment management capability and our cost cutting, we are taking the steps required to position the Company for future growth and a return to positive net sales." said Abe Goenka, Interim Co-CEO of NexGen.

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.

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