NexGen Financial Announces Third Quarter 2013 Results
TORONTO, ONTARIO -- (Marketwired) -- 11/26/13 -- 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
"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
Q3 2013 Highlights
-- Assets under management(1) ("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 EBITDA(2) 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
The Company's complete financial results are available at
ir.nexgenfinancial.ca and www.sedar.com.
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
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
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.
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.
NexGen Financial Corporation
President & CEO
NexGen Financial Corporation
CFO & COO
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