TORONTO, Nov. 19, 2012 /CNW/ - NexGen Financial
Corporation ("NexGen" or "the Company"), (TSX-V: NFX) today
announced its unaudited financial results for the quarter ended
Spetember 30, 2012.
Q3 2012 Highlights
- Achieved $1 billion assets under
management1 ("AUM") milestone
- AUM increased 15.2% to $1.01
billion at September 30, 2012
from $874.6 million at September 30, 2011, compared to an industry
growth rate of 10.5% over the same period
- During Q3, 2012, AUM increased 6.4% with net sales of
$37.7 million
- Operating EBITDA2 improved to $0.44 million ($0.09 per share) for Q3, 2012, from $0.26 million ($0.06 per share) for Q3, 2011
- NexGen ended Q3, 2012 with $6.0
million of working capital available to fund future
operations
"We are very pleased to have achieved the
$1 billion AUM milestone. We continue
to attract assets to our Fixed Income and conservative Balanced
Funds reflecting a continuing risk averse investor mindset" said
Laurie Munro, President & CEO of
NexGen.
NexGen reported a net loss of $0.06 million ($0.01 loss per share) for the three months ended
September 30, 2012, compared with a
net loss of $0.36 million
($0.08 loss per share) for the same
period in the prior year. Total revenues increased 17.5% to
$3.54 million for the three months
ended September 30, 2012, from
$3.01 million for the three months
ended September 30, 2011.
The Company has also granted incentive stock
options to purchase a total of 93,000 common shares to certain of
its officers and employees in accordance with the provisions of its
stock option plan. Pursuant to this plan, the Corporation is
authorized to grant an aggregate of up to 10% of its issued and
outstanding common shares on a rolling basis.
The Company's complete financial results are
available at ir.nexgenfinancial.ca and www.sedar.com.
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