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NexGen Financial Corporation Announces 2012 Year-End Results

TORONTO, March 25, 2013 /CNW/ - NexGen Financial Corporation ("NexGen" or "the Company"), (TSXV: NFX) today announced its financial results for the three and twelve month periods ended December 31, 2012.

2012 Highlights
  • Achieved $1 billion Assets Under Management 1 ("AUM") milestone
  • AUM increased 12% to $1.03 billion as of December 31, 2012, from $920 million as of December 31, 2011
  • Management fee revenues increased 11% to $14.3 million for 2012, from $12.9 million in the prior year
  • Operating EBITDA 2 improved by $0.8 million to $1.9 million ( $0.42 per share) for 2012, from $1.1 million ( $0.25 per share) in the prior year

NexGen reported a net loss for 2012 of $0.2 million ( $0.04 loss per share), an improvement of $1.7 million from a net loss of $1.9 million ( $0.40 loss per share) in the prior year. Included in the 2011 results was a one-time non-cash income tax expense of $1.1 million resulting from a corporate reorganization. On an adjusted basis (excluding this one-time item), net loss for 2012 improved by $0.6 million as compared to the prior year.

"In 2012, we made strong progress exceeding $1 billion in AUM driven by net sales of $83 million despite the challenging financial markets", said Laurie Munro, CEO of NexGen. "Importantly, for the seventh consecutive tax year we delivered tax results consistent with our clients objectives. In addition, in June of this year we launched a new corporate bond fund which raised $35 million as at year end" he added.

Q4 2012 Results

Management and administration fee revenues increased 15% to $4.2 million in the fourth quarter of 2012, from $3.7 million in the fourth quarter of 2011. Operating EBITDA increased $0.3 million to $1.0 million in the fourth quarter of 2012, from $0.7 million in the fourth quarter of 2011. The improvement in operating performance resulted primarily from higher levels of AUM.

Net income for the fourth quarter of 2012 was $0.3 million ( $0.07 per share) as compared to $0.3 million ( $0.05 per share) for the same period in the prior year. Results for the fourth quarter of each year are positively impacted by tax management fees which are realized at the end of year if certain return and tax objectives have been satisfied.

  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.

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